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1 Captûre Wines Business Overview February 1, 2013 Proprietary and Confidential

Captûre Business Overview 2013

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Page 1: Captûre Business Overview 2013

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Captûre WinesBusiness Overview

February 1, 2013Proprietary and Confidential

Page 2: Captûre Business Overview 2013

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Table of Contents

Vision

Market & Brand

Vineyard

Winemaker

Wines

Performance

Looking Forward

Investment Summary

Organization Chart

Executive Bios

Production Plan

Case Sales

Sales by Brand

CONTENTS APPENDIX

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Bordeaux Tradition, Frontier SpiritVISION |

Captûre Wines was launched in 2008 to create world class Bordeaux-style artisan wines, originating in the steep, rugged terroir of our mountaintop vineyards

In our first four years, we’ve created one of the most acclaimed and highly rated portfolios in California, and a nationally known and respected luxury brand

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Our market strategy is to sell luxury wines directly to the affluent consumer

Artisan wines costs 2 to 3 times more to produce, but command a 5 to 10 times premium price.

With operating and sales margins significantly higher, it is the most profitable segment of the wine industry

The global market for luxury wine remains strong, as cellars have appreciated at 40% over the past decade

Investment cellars regularly include Napa and Sonoma artisan brands, and the Asian market is now turning to California wines

At exit, luxury brands are valued at a premium

Artisan Wines, Affluent ConsumersMARKET |

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The Captûre brand is off to a good start:

Covered in the Wall Street Journal, Forbes, CNN, Bloomberg, The Robb Report, Wine Spectator, Food and Wine, and other top publications

Awarded consistent 90+ and classic scores from Robert Parker, Steven Tanzer, Wine Spectator, Wine Enthusiast, and other respected critics

Named a “Top 100 Luxury Brand” by The Robb Report in 2010, and one of only five domestic white wines named to The Robb Report’s “Best of the Best” for 2011

Developed high-profile partnerships with prominent restaurateurs, top sommeliers, celebrity chefs and complementary luxury brands

Invited to participate at Pebble Beach Food and Wine, Aspen Food and Wine, and other prestigious, invitation-only luxury events

Served in top tier restaurants and hotels, in top U.S. markets

Press, Partnerships and PlacementsBRAND |

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Tin Cross VineyardsVINEYARD |

Rising to 2,450 feet above the Alexander Valley, and first planted to vine in the 1850s, Tin Cross Vineyards is one of the oldest and most beautiful vineyards in California

The 240 acre grounds are studded with ancient oaks, artesian spring-fed lakes, wild turkey, bobcat, deer and boar, and the large mountaintop home is used for tastings and vacationing guests

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Precision Farming For Luxury WinesVINEYARD |

Acquired in 2008, Tin Cross is now an ultra-premium wine-growing estate, with 40 acres of plantings in mineral-rich volcanic soils, steeply pitched to a variety of exposures and micro-climates

Planting and organic farming practices are directed by Denis Malbec, a vigneron with decades of experience at Chateau Latour and other Bordeaux Grand Cru estates

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Tin Cross is one of a handful of high elevation artisan vineyards that comprise the new Pine Mountain-Cloverdale Peak AVA

The recently approved appellation contains less than 230 planted acres, and is the highest mountain AVA in the Napa and Sonoma wine regions

With projects by Denis Malbec, Thomas Rivers Brown, Ulisses Valdez and other high profile winemakers already under way, Pine Mountain is quickly gaining recognition as a new, unique source of luxury quality fruit

An Exciting New AppellationVINEYARD |

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Captûre ’s founding winemakers are among the most celebrated and successful in the world

Denis Malbec was born at Chateau Latour, was apprenticed at Château Lagrange and Haut Brion, and returned as third generation winemaker (following his father and grandfather), for vintages 1994 through 1998

May Britt Malbec founded "Le Bateau,” on a luxury yacht built for King Frederic of Denmark. In 1992, she won the Prince Henri-Melchior de Polignac Award, and was named the Best Sommelier in the Nordic countries. In 1995, she joined Denis at Chateau Latour

Malbec and MalbecWINEMAKER |

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Révélation A pure, single vineyard mountain cabernet $135

HarmonieOur best yearly blend of our best barrels $120

AllianceA Bordeaux expression of pure mountain fruit $90

Ma Vie CarolOur very small lot Chardonnay from Tin Cross $48

Les PionniersDeep, nuanced SB, placed at French Laundry $40

Tradition

Rich, round sauvignon blanc,

a blend of four hillside sites $30

Dark Rose

A Bordeaux blend of Cabernetand Merlot grapes $20

The Captûre PortfolioWINES |

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The Fleuron PortfolioWINES |

Fleuron is our value line, priced for “by the glass” placements and national distribution

We will be introducing new Sauvignon Blanc and Pinot Noir wines in 2013

Celebrity chef Tom Colicchio has commissioned a Fleuron “Cuvee wichcraft” for his national restaurant group

Fleuron Cabernet A blend of Tin Cross estate and hillside fruit $40

Fleuron Chardonnay A bright, lightly oaked wine from 30-year old Tin Cross vines $24

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2010 Ma Vie Carol ChardonnayWine Spectator

2010 Les Pionniers Sauv BlancWine Spectator

2010 Les Pionniers Sauv BlancStephen Tanzer

2009 Revelation Cabernet SauvWine Enthusiast

2011 Harmonie Cabernet SauvWine Enthusiast

2009 Harmonie Cabernet Sauv Wine & Spirits

2009 Ma Vie Carol Chardonnay Stephen Tanzer

2009 Ma Vie Carol Chardonnay

Anthony Dias Blue

2009 Les Pionniers Sauv BlancWine Spectator

2009 Les Pionniers Sauv BlancWine Advocate

2009 Tradition Sauv Blanc Wine Spectator

2009 Tradition Sauv Blanc Anthony Dias Blue

2008 Tradition Sauv BlancWine Spectator

2008 Tradition Sauv Blanc Steve Tanzer

Representative ScoresWINES |

92

90

90

92

92

91

92

91

95

95

94

90 92

92

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Growth Path

2008

2009

2010

2011

2012

Acquired Tin Cross Vineyards and formed Captûre Wines

Created the story, defined the brand, developed the plan

Positioned Captûre as a unique artisan brand with press, trade and influencers 

Released our first portfolio of White Wines

Began placements with elite restaurants and hotels

Released additional White Wine cuvees

Established marquee distribution partners across major markets

Released our first portfolio of Red Wines

Introduced our Fleuron value brand, to follow through the channel

Established direct-to-consumer sales team

PERFORMANCE |

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Actuals To Date

2009 2010 2011 2012

Revenue 0.024 0.215 0.816125 1.215

EBITDA -1 -0.594 -0.2096 0.177

($1.3)

($0.8)

($0.3)

$0.3

$0.8

$1.3

Revenue and EBITDA 2009-2012Fiscal Year ending June 30

MIL

LIO

NS

PERFORMANCE |

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Five Year PlanLOOKINGFORWARD

2013 2014 2015 2016 2017 2018

Revenue 1.332 2.345 3.18 4.09 5.58 6.42

EBITDA -0.19 0.09 0.44 0.89 1.85 2.13

$0.5

$2.5

$4.5

$6.5

$8.5

Revenue and EBITDA 2013-2018Fiscal Year ending June 30

MIL

LIO

NS

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Debt:

$1,000,000 authorized

$475,000 funded

12% coupon

Conversion option, YE 2015

Secured by 2nd TD on Tin

Cross

Minimum $100,000

investment

Equity:

$1,000,000 authorized

$450,000 funded

Accredited investors only

Convertible Debt or EquityINVESTMENTSUMMARY

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Owners-only wine, events and Tin Cross lodging

One case of each Capture and Fleuron cuvee per year

Owner access to allocation-only wines and preferred pricing on all wines

Annual 5 days lodging at Tin Cross Vineyards

Participate in Captûre harvest, crush, winemaking and release events

Additional BenefitsINVESTMENTSUMMARY

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Owner entree to unique wine country experiences

“Behind the scenes” access to invitation-only tastings and luxury events (In 2012: Super Bowl VIP Arrival, L.A. Confidential Magazine at the W, Rolls Royce garden party in the Hamptons, Pebble Beach and Aspen Food and Wine , many more)

Introductions to celebrity restaurateurs, chefs, sommeliers and winemakers

Proprietor’s discounts at most wineries in Napa and Sonoma

Additional BenefitsINVESTMENTSUMMARY

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Appendix

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Organization ChartAPPENDIX |

CEOBen Sharp

VineyardBacchus VM

WinemakerMalbec & Malbec

FinanceTim Cowart

OperationsTBD

Marketing and Sales

Andre Boada

ProprietorMichael Foster

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Executive BiosAPPENDIX |

Michael Foster, Proprietor The Foster Family purchased Tin Cross Vineyards and founded Captûre Wines in 2008. Mike is a successful entrepreneur, having grown and harvested multiple companies in the technology-leveraged information sector, and founded several non-profit organizations. Benjamin Sharp, CEO Ben has 20 years of professional experience, focused on the strategy, launch, and development of luxury consumer products. He began his career in the wine industry in 2004 working for industry icon Jess Jackson, of Kendall-Jackson Wines. Ben has an MBA from UCLA’s Anderson School and a Bachelor’s degree from Duke University.

Bacchus VM

Bacchus Vineyard Management, led by CEO Glenn Alexander, is one of the most successful  precision farming organizations in wine country. Bacchus brings their extensive experience in sustainable, organic agriculture to the design, planting and care of Tin Cross' steep mountain vineyards.

Timothy Cowart, CFO

Denis and May Britt Malbec, Winemakers

Denis was literally born into wine, and served as winemaker, after his father and grandfather, at the famed Château Latour in Bordeaux. In 2009, Denis and May Britt, a former award-winning sommelier, achieved back to back 100-point Robert Parker-rated wines in the United States.

Andre Boada, VP Sales/Marketing

Andre has been building brands and creating strategic relationships in the wine industry for over 20 years. He has been responsible for brands as diverse as Cuvaison, Markham and Greystone, and led the Artisan Estate portfolio of La Crema, Stonestreet, Freemark Abbey, La Jota, Cardinale and Lokoya for  Jackson Family Wines.

Tim Cowart is a principal at Burkland Associates, and serves Captûre as interim CFO. Tim has over 20 years experience providing financial and strategic advice to organizations in the alternative energy, medical device, wireless, manufacturing, aerospace, online services, venture capital, and other industries. Tim has an MBA from University of Southern California and graduated with honors with a BS in Finance & Accounting from Menlo College.

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Production PlanAPPENDIX

2013 2014 2015 2016 2017 2018

Captûre 6.4 8 10 11.1 12.1 13

Fleuron 4.1 4.7 5.4 6.3 8 10.5

2.5

7.5

12.5

17.5

22.5

Projected Case Production 2013-2018

TH

OU

SA

ND

S

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Case Sales

2013 2014 2015 2016 2017 2018

Captûre 2.565 4.28 5.05 5.73 7.7 8.8

Fleuron 2.19 3.19 3.69 4.33 5.9 6.9

2.5

7.5

12.5

17.5

Projected Case Sales 2013-2018

TH

OU

SA

ND

S

APPENDIX

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Sales by Channel

2013 2014 2015 2016 2017 2018

3 Tier 0.876 1.332 1.4 1.5 1.8 2.1

Private Client

0.456 1.0125 1.8 2.6 3.8 4.3

$1.0

$3.0

$5.0

$7.0

$9.0

Projected Sales Revenue 2013-2018M

ILL

ION

S

APPENDIX

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THANK YOU