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EXECUTIVE SUMMARY DESCRIPTION OF THE BUSINESS: Humboldt Springs Brewing LLC is a privately held corporation owned and managed by David Pimsner and Dawn Daley Pimsner. The business of the company is the production of high quality, fresh beer for the local and regional markets. The Humboldt Springs Brewing Company will be located at 333 1st St. Eureka, CA. This location has an incredible view of the Humboldt Bay and Woodley Island Marina and is less than a five minute walk to the Gazebo Square in the center of Victorian old town Eureka. The Eureka old town waterfront tourism is about to get an upgrade from the city planning department. The city is planning on developing and expanding their view of the old town waterfront, to include a fisherman’s Warf style tourism upgrade. They are planning on extending E St. to the bay walk, building a new hotel, and landscaping the old town waterfront for a tourism upgrade. Ideas included in this zoning are a food truck court, an indoors farmers market, and plans to include several new tourism based retail shops and cafes. This July is the start of year round stops in Eureka for cruise ships heading to Alaska. The location of Humboldt Springs Brewing Co. is right at the foot of the boarding dock for the shuttle boats as well as the Mattaket(the local tour boat for Humboldt Bay) to conveniently convey those passengers to drop in at H.S.B.C as one of their first stop options. Humboldt State University and The College of the Redwoods are no more than a fifteen minuet drive to this site. We believe that this newly rejuvenated and renovated waterfront site will provide us with a large consistent customer base. A lease agreement for this site is currently under negotiations. H.S.B.C. will initially produce three different styles of beer: a dark, a red, and a golden lager. While other breweries in the county are making Ales, sometimes mistakenly calling them Lagers, we will be the ones making true Lagers (88% of the beer consumed in the U.S.A are lagers).These products will be distributed in kegs to licensed retail outlets. The products of H.S.B.C will be wholesaled to premium pubs, taverns, and restaurants throughout Humboldt County, and then to the broader regional market. A sales agreement is being negotiated with Humbrews (One of Arcata’s premium taprooms) within the next few weeks. In addition, H.S.B.C will have its own Drafthaus, where retail customers may come to view the operation and are offered tours of the brewery, while purchasing beer by the glass, beer to go, wine, gourmet bread cheese and sausage plates, snacks and retail items such as company logo sweat-shirts, hats, glassware, etc. One barrel (BBL (31 gallons)) of beer will cost H.S.B.C about $100 to produce. One BBL of beer has round 224 pints. H.S.B.C will be charging $6 per 0.5 liter, giving us an average return of $1344 per BBL. Be assured this is a profitable well thought out business. Humboldt Springs Brewing Co. will produce beer with a 7-barrel, stainless steel brewing plant. Production capacity of our 7-barrel brewing plant with four 10-barrel fermenters is approximately 720 barrels the first year (a barrel equals 31 gallons, which equals two standard 15.5 gallon kegs or six 5.2 gallon kegs). The addition of more fermentation tanks at regular intervals will increase our capacity to approximately 2,080 barrels annually, which is the estimated limit proposed by the size of space being leased. The management team intends to produce and sell approximately 720 barrels in the first year and then increase production and sales in the second year. Thereafter, the management team will increase production and sales by approximately 200 to 300 barrels annually, until the approximated 2,080-barrel limit imposed by the space we are initially leasing. Management Responsibility: As president, David Pimsner is responsible for the overall implementation of the Plan of Action and daily operations of the business. The president will oversee the tenant improvements and installation of the brewery. He will carry out the licensing process, secure financing of operational expenses, acquire and service retail accounts, and direct daily start-up operations. David will also be master brewer, and will be responsible for all tasks related to beer production. As vice president and general manager, Dawn Daley Pimsner will assist the president in all areas related to the business start-up and daily operation of the brewpub. The vice president/general manager will specifically be responsible for advertising, promotions, purchasing, inventory control, and the management of the Drafthaus and its retail sales. Marketing and Distribution: The Humboldt Springs Brewing Co. produces beer in kegs for wholesale to the licensed liquor retail market. Kegs will be self-distributed by the H.S.B.C to its local clients. In the first year, the president will market the products and be personally responsible for acquiring local retail accounts and distributing kegs to those accounts. The president is the individual most familiar with the company’s products and with the local market for these products. David is therefore the best-qualified person to represent the company to its customers. The marketing strategy will consist of direct person to person sales calls by the president to local premium retail outlets. H.S.B.C. products will also be advertised in the local print media and through social media. The Humboldt Springs Brewing Co. will also have a pub on site where customers may come to purchase our products at retail prices. This retail outlet will allow us to receive pint price on the sale of beer, which will make an important contribution to our profit margin. Snacks and promotional merchandise such as glassware and T-shirts will also be sold to increase our public exposure and profit margin. Professional Support: The following personnel will be used as needed. Brewing/Business consultant: Randall Dilibero master brewer for Left Coast Brewing Co. Steve Parkers master brewer and owner of the American Brewers Guild. Jon Hill a master brewer for Six Rivers Brewing Co.

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