PREPARED FORSEIBEL & JOHNSON INVESTMENTS

225 OAK LAWN AVEDALLAS, TX 75219

P R E P A R E D B YT H E F I L L I N G S T A T I O N E X E C U T I V E S T A F F

P R A B I N G A U T A MJ U L I A G U T I E R R E Z

C A S S A N D R A O L I V E R R E G I N A L D S P E N C E R

J A M I L W A LT O NE R I C Y A C U L A

THE FILLING STATION EXPANSIONFINANCING PROPOSAL

About the Filling Station

Opened in 1975 Recognized beyond the city of Dallas Converted into a restaurant from a 1925 station First bar in Dallas history to have big screen TVKnown for vintage memorabiliaStand-out in a crowd of restaurants and bars in

Dallas.Entertainment offerings:

Live Music, Karaoke, Sports Events on TV, Trivia and Drink Specials

The Filling Station

When tourists come to visit our city, they also make a point to visit The Filling Station. Our Dallas location has become a local favorite and a

popular spot for out-of-town guests, we believe a location in San Antonio

would be highly successful.

Three Questions for Justification

Will there be enough interest in a new Filling Station outside of Dallas?

Will we successfully find the personnel and management to run the new location?

Will The Filling Station atmosphere fit within our proposed location?

Sales History

The Filling Station Restaurant & Bar expansion

is determined to be a viable effort based on the location’s sales and continued growth. Our sales have increased over the last few years and appear to be growing steadily.

Between 2008 and 2009 sales grew 7.8%.Between 209 and 2010 we had 8.8% growth.In 2011 total sales were over $1.8 million; a

9.8% increase.

Background

Brand Recognition Historic value

Successfully maintained for 37 years. We foresee further expansion in Houston,

TX and Austin, TX.

San Antonio, TX

The city of San Antonio has begun its

expansion project of the area.

The project was given the green light eight

months ago.The River Walk is where

commerce and culture come together in a

wonderful atmosphere.

Sales Forecast

Year 1 Year 2 Year 3$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Valet ParkingEntertainmentDrinksFood

Years in Business

Sale

s (i

n t

housa

nds)

Projected Sales, Gross Margin, and Profit

Year 1 Year 2 Year 3-$150,000

$0

$150,000

$300,000

$450,000

$600,000

$750,000

$900,000

$1,050,000

$1,200,000

$1,350,000

$1,500,000

$1,650,000

SalesGross MarginProfit

Years in Business

Marketing Strategy

Quality food and mixed-beverages at an affordable price

Young and upbeat atmosphereDrink menu ranges from the “Realignment”

to our most popular “Tune Up” Advertisements on Facebook and Twitter 

Happy hour every weekday   Reduced-price lunch specials

Target Market

74% of San Antonio residents fall within $10,000 to $60,000 annual salary range

San Antonio adult population outnumbering adolescents 3 to 1

1,000,000 residents over the age of 18

San Antonio’s average annual income - $40,000, which falls squarely into our target

market.

Target Market

21%

20%

17%

6%2%1%

22%

11%

San Antonio Annual Household Income Distribution

$25K-$40K

$40K-$60K

$60K-$100K

$100K-$150K

$150K-$200K

$200K plus

$10K-$25K

$10K or less

Target Market

35-4929%

50-6424%

25-3421%

65 and older15%

20-2412%

San Antonio Population by Age (over 18)

Market Research

Our survey results indicate a strong market suitable for our restaurant to be profitable

in San Antonio. Over 50% of respondents visit similar

establishments between 2 and 5 times per month

55% enjoy 1 to 3 mixed beverages while dining

10% enjoy 4 or more 2/3 of participants are the type of patrons

for which we are looking to target

Market Research

The annual economic impact is over $11 billion. Each year, millions of visitors come to

San Antonio for the shopping and leisurely dining experiences as well as the city’s rich

historical culture. 10 million visitors per year stay at least one night to enjoy the various nighttime activities

available on the River Walk. San Antonio has 5 of the top 10 tourist

attractions in Texas, one of which is the River Walk.

Schedule

Cumulative time - approximately 6 months Securing the rent space - 1 week Zoning, ordinance and licensing processes - 2 months Equipment and furnishing orders - 2 to 3 weeks Build-out and finishing - 3 weeks Liquor license and food certification - 3 months Employment application and interview process - 2 months

Additional 3 weeks of training: 1 week in Dallas, rest of the time in San Antonio

Staffing

One of our existing managers and two of our assistant managers have volunteered to

transfer to San Antonio and launch the new restaurant.

Job advertisements have been placed in local San Antonio newspapers and have received an

impressive response.

We want to ensure that an identical culture and approach is maintained in San Antonio.

Staffing

Frederick Lewis – General Manager of new location 20 years experience managing restaurant staffs Managing our Dallas location for 9 years

Leslie Bowden and Tim Anderson –Assistant Managers of new location Combined experience of 15 years in the food service

industry Lorenzo Martinez - Head Chef

Creating menus in both locationsDavid Ferguson - Head Bartender

Invent a new drink to be offered on a monthly basis

Budget

Year 1 Year 2 Year 3

Sales $ 1,026,000.00 $ 1,231,200.00 $ 1,539,000.00

Direct Cost of Sales $ 320,000.00 $ 330,000.00 $ 320,000.00

Other Production Expenses $ 75,000.00 $ 68,000.00 $ 50,000.00

Total Cost of Sales $ 395,000.00 $ 398,000.00 $ 370,000.00

Gross Margin $ 631,000.00 $ 833,200.00 $ 1,169,000.00

Expenses

Payroll $ 287,000.00 $ 304,000.00 $ 322,000.00

Sales and Marketing $ 120,000.00 $ 90,000.00 $ 90,000.00

Depreciation $ 30,000.00 $ 25,000.00 $ 25,000.00

Leased Equipment $ 80,000.00 $ 80,000.00 $ 80,000.00

Utilities $ 13,000.00 $ 13,000.00 $ 13,000.00

Insurance $ 40,000.00 $ 40,000.00 $ 40,000.00

Rent $ 49,000.00 $ 49,000.00 $ 49,000.00

Payroll Taxes $ 43,050.00 $ 45,600.00 $ 48,300.00

Total Operating Expenses $ 662,050.00 $ 646,600.00 $ 667,300.00

Profit Before Interest and Taxes $ (31,050.00) $ 186,600.00 $ 501,700.00

EBITDA $ (34,776.00) $ 208,992.00 $ 561,904.00

Tax Incurred $ 3,726.00 $ (22,392.00) $ (60,204.00)

Net Profit $ (34,776.00) $ 208,992.00 $ 561,904.00

Profit/Sales -3% 17% 37%

Proposal

$2 million loan from Seibel & Johnson Investments 18% interest 48 months Interest-only for the first 12 months Remaining 36 months will be paid as principle plus interest

Purchase equipment and provide working capital The Filling Station will pledge personal assets in the

amount of the loan to collateralize the transaction. Entitled to 5% percent of annual profits Maintain rights to finance any subsequent locationsInvest a total of $100,000 of our own accrued funds

THANK YOU