Mark Cuban Is A Bonehead

MARK CUBAN IS A BONEHEAD BONEHEADS: pronunciation: \\bōn'hěds'\\ function: noun, plural People who ignore experts and conventional wisdom, follow their hearts and achieve great success against steep odds. Meet Mark Cuban - Mark Cuban started in the computer software industry as an employee for a company called Your Business Software. After only 1 year at his new job he was fired and told he was “not cut out for the business” by the experts at Your Business Software. With passion and determination Mark launched a company called MicroSolutions to compete head-on with his old bosses. He built that company into a powerful force and later sold it for more than $6 million. With his first big success under his belt, there was no stopping Mark. Today, Mark has established himself as one of the most recognized entrepreneurs in the United States and is the owner of the NBA Franchise Dallas Mavericks, Co-Owner of 2929 Entertainment and Chairman of HDNET. We salute Mark for bucking the establishment, creating his own way and for being a Bonehead. BONEHEAD: Mark Cuban ACHIEVEMENTS: PROFESSION: Entrepreneur • Co-founded Broadcast.com and sold it for $5.9 billion in stock to Yahoo HOMETOWN: Dallas, Texas • Founder of Fallen Patriot Fund which helps families of U.S. military persons killed or injured during the Iraq War • Married for seven years with two children

The Top 5 Reasons Why Mark Cuban Should Invest • Continue Being a Maverick and Revolutionize the Restaurant Industry: Boneheads offers fast, affordable, flavorful food that allows people to eat healthy and be happy. • Sustainable Business: Cash flow positive and profitable within 30 days of opening. • Align with National Trends: Consumers are seeking out restaurants that offer healthy, flavorful food with incredible value. • Kick-Ass Management: 2 smart guys that love what they do, work their asses off, and make shit happen. • The Power of ‘Be One’: We have developed a marketing campaign that connects our guests to inspirational uplifting stories of successful people like Mark. Boneheads satisfies your hunger while Be One feeds your spirit.

BONEHEADS: pronunciation: \\ bōn'hěds’\\ function: noun, plural People who ignore experts and conventional wisdom, follow their hearts and achieve great success against steep odds. 2 Hungry Ventures LLC Confidential

Industry experts said only a bonehead would create a restaurant that serves healthy grilled ﬁsh and chicken entrees with gourmet sides for under $10. If we had listened to the experts Boneheads would not exist today and people would not be lining up out the door craving mouthwatering meals with exotic ﬂavors. So we say, Boneheads follow their hearts and always ignore the ‘experts’. 3 Hungry Ventures LLC Confidential

There is a niche in the restaurant industry that has yet to be filled nationally • Health consciousness: 72% of adults say they are trying to eat healthier now at restaurants than two years ago • Flavor profile: 66% of adults said their favorite restaurant foods provide flavor & taste sensations which can’t be easily duplicated in their home kitchens • Value: Consumers are looking for restaurants that deliver value and convenience (quicker dining experience) - focus on value to remain for the foreseeable future • Trading down: In a recent survey 45% of consumers want more fast-casual restaurants compared to 20% more quick-service, 15% more dining at home, 12% casual and 8% fine-dining • Seafood consumption: 77% of Americans say they eat seafood at least once a month, while approximately 45% eat seafood once a week or more Source: National Restaurant Association & Fast Casual 2009 Industry Report 4 Hungry Ventures LLC Confidential

The niche is Boneheads: a fast-casual restaurant that offers fine-dining quality food and excellent customer service in an upscale setting • Boneheads restaurant stands out in a crowd by being the only fast- casual restaurant to offer grilled fish & chicken with exotic flavors and toppings with gourmet sides and beer & wine for a moderate price • Prototypical restaurant is 2,300 sf with 40+ outdoor seats • Interior is warm and colorful, sophisticated yet casual • Food is prepared in an open exhibition kitchen and served on china plates • Guests place order at service counter and food is delivered to their table • Staff pre-bus and bus tables and offer beverage refills • Requires a staff of 20+ people including management 5 Hungry Ventures LLC Confidential

Boneheads proves the point in Lake Forest, California where we are succeeding in all facets of the business and is well positioned for long-term success • Cash flow positive: Opened in May 2007 and was cash flow positive in June 2007 and continues to be cash flow positive on an annual basis despite a recession and a trade area that has a low household income and a mediocre shopping center with no retail • Awards: “Best New Restaurant in 2008” by Orange County Register and three-time recipient of the Scovie Awards for our signature Piri Piri sauces • Recognition: Featured on ABC News Los Angeles as a healthy food option and recognized as a Small Business Administration (SBA) success story 6 Hungry Ventures LLC Confidential

And more importantly, Boneheads’ customers tell us that we provide exceptional value, quality and customer service 100% 98.9% 99.7% 99% 98.9% 94% 98.9% Overall Cleanliness Service Food Boneheads Value Quality 75% 80% 82% Full-Service 79% 78% Rest Average 76% 73% Outback Chili’s Olive Red Starbucks Garden Lobster 50% 25% 0% 2008 Boneheads Customer Satisfaction Top 2 Box Score 2008 Overall Customer Satisfaction Top 2 Box Score We have collected 2,200 customer comment cards since May, 2007 of which 98.9% of those voting rated the overall experience as excellent or good Source: American Customer Satisfaction Index 7 Hungry Ventures LLC Confidential

Hungry Ventures LLC currently owns and operates Boneheads restaurant in Lake Forest • Hungry Ventures was founded in Jan. 2006 and is a California Limited Liability Company and is equally owned and managed by Jack Demers and Morgan Smith • Jack and Morgan have worked full-time and invested much heart and soul into Boneheads over the past three years and without taking a salary. • Jack and Morgan guaranteed the leases at Lake Forest, the Irvine Spectrum and the SBA loan, negotiated the acquisition of Boneheads, and injected $360,000 of their own cash into Hungry Ventures. • Jack and Morgan have applied the knowledge and know-how they acquired in working for a Fortune 100 company and have created a system dependent business that allows employees with varied skill sets to consistently exceed guest expectations. • Investors would be hard pressed to ﬁnd a management team that is more ethical, more honest and open about their business, more passionate about their work, their people, and their customers or one which has more determination to succeed in their business. 8 Hungry Ventures LLC Confidential

Nobody can build a great business alone, therefore, Hungry Ventures has an advisory board which provides much wisdom and insight • Tom Patty: Retired as President and Worldwide Account Director for Chiat/Day, helped grow the company from $30M to $1B in annual billings, learned marketing from clients like Steve Jobs, Apple Computer, Phil Knight at Nike and Steve Reinemund, CEO of PepsiCo Worldwide • Tony Podell: Founder of Laundry clothing company, grew company to $105M and sold it to Liz Claiborne and is an investor in Great Circle Foods, largest area developer of Krispy Kreme in southern California • Bill Lee: Co-founded Builders Marts of America, grew the company to $640M, now serves as a business consultant for the lumber industry and has conducted over 1,000 seminars and consulting assignments • Greg Nolan: Partner with Cafua Management Company, the largest Dunkin Donuts franchisee with over 180+ units 9 Hungry Ventures LLC Confidential

Boneheads investment opportunity is very appealing when compared to the typical restaurant investment Boneheads Investment Typical Restaurant Opportunity Investment •Investment in speciﬁc ✓Ownership in all locations location ✓Investment in brand & ownership of Intellectual Property •No ownership in brand •No opportunity for new ✓Opportunity for alternate business revenue - refer to slide 14 business revenue ✓Ability to adopt new growth strategies including joint venture or franchising 10 Hungry Ventures LLC Confidential

This plan is being submitted in order to secure Series MC (Mark Cuban) funds of $2.5M of convertible debt which will be used throughout 2009 and 2010 • We are offering a 5 year convertible debt note bearing an annual interest rate of 8%. • We propose to pay interest monthly from cash ﬂow. • It will allow us to open three new locations including one at the Irvine Spectrum, a second location in Orange County and one high proﬁle location in Los Angeles • It will allow us to fund marketing programs including the launch of the BE ONE campaign 11

What is the Be One campaign? It’s about the power of the human spirit to see a need in society, overcome adversity, and ﬁll that need despite the many obstacles that life inevitably throws in the way • The BE ONE campaign will celebrate stories of other Boneheads and encourage our guests to ‘Be One’. • The campaign will feature celebrities, renowned business leaders, athletes, local personalities and business success stories in the communities we serve • The BE ONE campaign feeds your spirit while Boneheads satisﬁes your hunger 12 Hungry Ventures LLC Confidential

And our objective is to deliver the following results 2009 2010 2011 Total Net Sales $1,964,167 $5,379,833 $6,246,598 $13,590,598 COGS % 33.4% 33.2% 33.0% 33.2% Marketing % 4.0% 3.5% 3.2% 3.5% Payroll % 26.6% 26.2% 26.0% 26.2% Occupancy % 9.0% 9.6% 10.1% 9.8% Operating Expenses % 10.1% 8.3% 6.9% 7.9% Cash From Operations $165,203 $670,879 $895,904 $1,731,987 Cash From Operations % 8.4% 12.5% 14.3% 12.7% Adjusted Net Income -$225,126 $49,949 $68,993 -$106,183 Free Cash After G&A -$142,726 $259,949 $455,393 $572,617 Total Cash In (equity investment and/or TI $2,580,200 $113,700 $- $2,693,900 allowance) Investment in Locations & Brand $1,679,548 $849,057 $- $2,528,605 Total Free Cash $757,926 -$475,408 $455,393 $737,912 13 Hungry Ventures LLC Confidential

Our long-term plan call for us to build and operate forty Boneheads restaurants by 2016. The illustration below highlights the expected future funding rounds 2015 -2016 Sale to Food Service Co. / Investor Group Q4-2012 Accelerated Growth Series D Inv. - $6.0 million Q4-2011 22 New Locations - 40 total AUV = $1.65 mil Build Brand Awareness Annual Sales = $66 million Series C Inv. - $4.5 million EBITDA = 14.5% Q2-2009 14 New Units - 22 total Acquire the Brand & Re-Image Series B Investment - $3.0 million 4 New High Profile Locations - 8 total Q1-2009 Celebrity Endorsement LOI with 4 Level-1 Boneheads - 20 Level-2 Raving Brands Series A Investment - $2.5 million 3 New Locations including Irvine & W. LA Launch !Be One\" Campaign First Class Web Site COGS & Payroll below 60% EBITDA = 14.2% AUV = $1.45 mil + 14 Hungry Ventures LLC Confidential

The illustration below represents likely future business development opportunities Hungry Ventures Map of Possible Stepping-Stones Possible prizes Develop Franchised Franchise Restaurant Sales Brand Corporate & JV Restaurant Brand Re-Image Build Raise Raise Corporate Hungry Raise Additional Brand OC#3 & Additional Owned Ventures Additional Money Irvine LA Money Restaurant Mid-2009 Money Spectrum locations Brand green = included in current plan T-Shirts, Branded Branded Hats, Apparel Apparel Lifestyle Sales Food Food Sauce & Products Distribution Seasoning for Mass Grocery Market Celebrity BE ONE BE ONE Endorse Celebrity Campaign Products Sales 15 Hungry Ventures LLC Confidential

The ‘experts’ say only a Bonehead would invest in the restaurant business during this time of economic challenge Are you a Bonehead? 16 Hungry Ventures LLC Confidential

Mark Cuban Is A Bonehead

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