the bordeaux wine co.

A Case for Wine Investment

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Traditionally, there have been three powerful reasons for investing in wine. First, there is the stunning return on capital from the first growths of the leading Bordeaux houses. Second, there is the portfolio diversification benefit because of the near-zero correlation with debt and equity markets. And third, for British investors there is the fiscal rule that wine is treated as a wasting asset by the Inland Revenue and therefore not subject to capital gains tax. Now another factor can be added to the mix: the momentum from the wealth creators and affluent middle classes in Russia and Asia. For this reason, there has been a surge of private banks, wealth managers, hedge funds and asset management groups recommending wine investment to the high-net-worth clients... In the past 15 months the market has gone up between 25 and 45 per cent.
Christopher Silvester, (Evening Standard) 12 March 2008

Press on the Market (An Unbiased View)

Introduction
Arguably, there has never been a better time to start dealing, prices are high, supply is low and wine has rarely been seen as such a hot investment.
Guy Woodward (The Observer) 23 July 2007

It is usually better to store the wine in a professional cellar, known as a bonded warehouse. The added advantage is that wine stored in this way is exempt from duty and local taxes.
Judith Prescott (The Sunday Times) 14 October 2001

Years ago, those born with a silver spoon in their mouth, were those whose father or godfather had bought them a case or two of vintage fine wine as a christening present, handed over with much aplomb on the childs 21st birthday. Today, more people know and drink wine, and so selecting wine, whether for laying down or drinking, is no longer considered to be a pursuit for experts. For centuries wine lovers have stored and bedded down wine in anticipation of consumption when it reaches its optimum drinking age. Another reason for this exercise is to purchase wine whilst modestly priced, before it matures and the prices increase. It is now common knowledge, the longer one holds onto wine and as the availability decreases, the prices rise and, of course, the better the wine tastes as it reaches its optimum drinking age. This is a concept we are all familiar with, one that is also used by many investors in alternative markets to achieve financial gain.

17 September 2000 Demand Alicia Wyllie (The Sunday Times) 24 November 2002 was expected Pay attention to the whims of American journalist Robto be muted due to ert Parker, who gives wines the economic recession, a score out of 100. Smita Talati (Evening Standard) the drop in the value of Sterling 14 July 1999 against the Euro and forecast of an ordinary vintage... Now, however, after Mr. Parker has issued such generous ratings, British wine traders are expecting that prices of wines such as Chteau Ptrus and Chteau Ducru Beaucaillou, will soar... Prices for a case of Chteau Lafite Rothschild were trading at 3,200 by the end of the week after Mr. Parker gave it a score in a range of 98-100 out of 100, up from 2,000 at the start of the week... Sudden economic concerns are out the window... the investment wine market is showing a hint of confidence.

The key to success is the choice of wines. Experts say that the top Bordeaux first growth wines, such as Lafite Rothschild, Latour and Haut Brion, are the safest bets.

Take advice from people in the industry. Buy the best, in the best vintages. Stick to first and super second growth Bordeaux
Christopher Burr (The Independent)

Jenny Wiggins (Financial Times) 4 May 2009

The Success of wine as an investment is mainly down to scarcity the market focuses its attention on the top 20 or so chateaux of Bordeaux and wines from this region have quantity limits in place each year. Moreover, supply is ever diminishing as they are being consumed. For consistent performers, the first growths of Bordeaux are the driving force behind the sector. Lafite-Rothschild, Mouton-Rothschild, Latour, Margaux and Haut Brion. For first-time investors, Bordeaux wines are the equivalent of the FTSE 100 blue chip companies and are a good place to start.
The Independent, Sunday 11 April 2010

Any wine lover will tell you that wine is to be drunk and enjoyed. We at Bordeaux Wine Company certainly agree for the most part, but even the most romantic wine lover will tell you that the best wines now command the same respect and admiration as works of art. Combining business with pleasure can be a fine balance but with wine we feel its a worthwhile venture, one we enjoy greatly and you can too! Arlene A King, Head Wine Buyer, Bordeaux Wine Company

Bordeaux

Buying Today for Tomorrows Market

The aim of bedding down fine wine is to secure wine of limited production and supply which will be increasingly difficult to find in tomorrows market. Over the last quarter of a century fine wines have proven to be a consistently stable, high yielding and low risk investment. Moreover, records going back many decades show that fine wine has remained generally unaffected by stock market fluctuations and interest rate changes. Traditional wisdom is to buy first growth Bordeaux, also known as Blue Chip wines. These are the likes of Lafite-Rothschild, Latour, Haut-Brion, MoutonRothschild and Margaux, also Le Pin, Ptrus and Cheval Blanc. Other wines to consider from the Bordeaux region are the second growths, better known as the super seconds, these are estates that have proven their quality over more recent years. These are the likes of La Mission-Haut-Brion, Leoville Las Cases and Montrose. Buying wine from a good vintage year from one of Bordeauxs top Chteaux usually limits risk, as they are consistent in quality and there is always a demand. While this approach has proven to be prudent over the years, there are alternatives, which can be just as rewarding but more speculative.

The Wine Bordeaux is situated in an almost-perfect viticultural region on the west coast of France and benefits from the ultimate marketing tool the Chteaubased classification system that was established almost 150 years ago. Bordeaux is home to the worlds greatest wines, thanks to the combination of unique landscape and 1000 years of winemaking experience. Bordeaux has over 118,000 hectares of vines, more than in the whole of Australia. The diverse soil types, from clay to gravel and limestone, are ideally suited to growing the regions seven different grape varieties, which include the world-renowned Cabernet family, Merlot and Sauvignon Blanc which were all originally born in Bordeaux. Through local skill, perfected over centuries and the innovation of todays growers, the blending of these varieties create a range of wines unparalleled in their quality and diversity. There is something for all palates. Whether you are getting together with friends, enjoying the sun on a summers day, or simply unwinding in the bath at the end of a hard day, Bordeaux can provide the perfect blend.

The History Bordeaux, the capital of the ancient kingdom of Acquitaine was once populated by Romans, and for 300 years was also occupied by the British, who have continued to worship its wines ever since. Bordeaux reds or Clarets, as the British call them, have remained the most popular wine despite political upheavals and Anglo-French wars. It kept the European smuggling fraternity busy during the late 18th and 19th centuries. Such Chteaux as Lafite and Margaux began producing wine in the 17th century and are considered to be amongst the best wines in the world today. Wine production in Bordeaux is governed by strict regulations known as The Appellation Laws or AOC (Appellation dOrigine Controle). Introduced to control the quality and production of its most prized export, these laws are very strict, not allowing the Chteaux to increase in size or graft from vines from other regions, keeping their wines rare and ensuring a continual diminishing supply. In 1855 Napoleon III introduced what is known today simply as The Classification, putting all the wines into a classification system on the grounds of quality. These ranks are known as Growths, with the 1st Growth (Premier Grand Cru Classe;) being the highest honour and 5th Growth the lowest. The Classification is still upheld today by The Appellation Controle laws and supported by the EC regulations.

En Primeur (Wine Futures)

Another good alternative that can be considered when selecting wine to lay down, is to buy at the En primeur stage. This is wine still in the barrel (undergoing the aging process), before bottled or released on the open market. It is also referred to as wine futures because the wine is bought in advance at a fixed price. It usually works out cheaper but no one knows how well the wine will mature.* En primeur tasting takes place every year in Bordeaux either at the end of March or the first week in April. For example, the En primeur tasting of the 2001 vintage took place in March 2002. Most wines sold this way are classified growths or wines from very well known Chteaux. En primeur sales account for approximately 3-5% of the total Bordeaux wine production. Opting for En primeur wine is speculative but some see it as the only way to acquire vintage Bordeaux at affordable prices.

*As proof of ownership, an Allocation-confirmation certificate will be issued.

The Global Marketplace

In Bordeaux, the Chteaux release their new vintages through courtiers (brokers) to negociants (merchants) who then sell it on to the wine trade. Secondary trading begins at this point and the UK is the major trading centre in the world for vintage fine wine, mainly due to the relative ease of import/export regulations between the two countries. A global marketplace exists for collectors, trade auctions and investors alike and continues to grow each year. French claret accounts for approximately 60% of auction sales worldwide. Trading wine internationally has proven to be very profitable, particularly in the US. Irrespective of the weak dollar, America continues to play a major role in wine trading, maybe because of their love for all things steeped in history. The value of wines sold at auctions in the US and by American online wine auctioneers now dwarfs even British sales. In 2007 New York based auctioneers Acker Merrall & Conduit, reported sales in the region of $60m, more than Sothebys and Christies combined sales in London, and even the two big London based auctioneers now sell more wine in the US than in the UK. In 2007, more than $230m worth of fine wine was sold at auctions in the US, as opposed to approximately $35m at UK auctions. The Far East market is a recent phenomenon in fine wine with Hong Kong being the all important gateway to the much coveted mainland China. In February 2008 the Hong Kong government abolished the 40 per cent duty on wine sparking a frenzy of European traders to the region. The super-rich from the likes of Brazil, Russia and India are also major players. As the number of millionaires and billionaires continues to rise in these parts and some of the best vineyards in Bordeaux continue to cut production in an effort to maintain quality, these two factors combined are forcing the prices of the best wines to rise at an unprecedented rate.

Investing in Wine For the New Investor

Investment in wines is by no means a new activity. Those with knowledge of the wine trade and connections to the top Chteaux of Bordeaux have been exploiting this sector for hundreds of years. Firstly, it is important to make known with no uncertainty that Fine Wine Investment should always be considered for the medium to long-term. This is primarily because of the nature of the commodity and the fact that the market is predominantly retail based. Unlike the stock market where small bid/offer spreads apply, fine wines are traded with larger margins, and incur certain fixed costs. Therefore an investment is almost always in a loss-making situation at its outset. If it were not for this factor then short-term gains would be available and the Fine Wines Market would soon become as volatile as the modern day stock markets. Traditionally, the cheapest way to buy and sell wine has been at auction although these establishments can represent a minefield for the novice investor, also the buyer does not receive an accompanying investment service. BWCs service is to make trading wine as easy as trading shares through a stockbroker whilst offering value for money over the term of the investment. In an effort to remain as transparent as possible, with every purchase we issue a detailed breakdown of our charges. It is certainly important to note that there is also no central index to dictate pricing. Because of this, prices will differ from broker to broker and auction to auction dependant on competitiveness, services and inclusive features. Note: Due to the fact that the Fine Wine Investment Market is currently unregulated, there is no Code of Practice available to companies, nor ombudsman available for complaints and issues.

Fine wine is of a limited nature, so where there is an increase in demand the prices rise fast and people of course drink wine, so stocks are continually depleting unlike art and antiques which will always be available. Nuala Araby, Senior Portfolio Manager, Bordeaux Wine Company

Any wine you buy for investment needs a good reputation and long track record of success. Carolyn Holmes, Senior Wine Specialist at Christies

Tasting & Selection

Buying the best wines from recognised vintages can eliminate speculation because the connoisseurs, experts and critics will have tasted the wine and therefore its true quality is determined and verified. Of the 4000+ Chteaux in Bordeaux, only the top 15-20 reach the standards we demand, for quality, consistency, limited availability, past and future investment growth. For a high yielding investment the wine must have a combination of first class Chteau reputation, positive write-up from Robert Parker and a strong secondary market demand profile. It is by combining our wine knowledge, a worldwide network of industry contacts and strict financial market discipline that enables us to be optimistic in achieving satisfactory returns for our clients.

The Worlds Foremost Authority on Fine Wine Robert Parker Jnr.

There are many influential wine critics in the world but none more so than the American lawyer turned wine critic Robert Parker Jnr. He is the worlds foremost authority on fine wine and is so revered that his verdict can make or break a Chteaus entire years production. He devised a point scoring system, grading wine on a scale of 50-100. His scoring system has been accepted as a yardstick by the wine industry and can radically alter the market. For example, Chteau Montrose 1990 (a second growth wine) originally sold for 200 per case. Once he rated it at 100 points the wine sold for 1,500 per case. Chteau LEglise Clinet 1985, was valued at 140180 per case in 1996 but sold for 1,155 per case because of Parkers recommendation. In 1999, President Jacques Chirac while bestowing Frances highest honours of Chevalier dans lOrdre de la Legion dHonneur upon Robert Parker Jnr., stated that Parker was the most followed and influential critic of French wine in the world.

I hate to think of wine being thought of primarily as an investment, but the worlds finest wines do appreciate significantly in value, and it would be foolish to ignore the fact that more and more shrewd investors are looking at wine as a way of making money. Robert Parker Jnr.

The Press and its View of Robert Parker Jnr.

Robert Parker is easily the single most influential person in the world of wine.
The Observer

Robert parker is the most followed and intellectual critic for French wine in the entire world.
President Jaques Chirac

Parker is the most influential wine writer in the world today.

Los Angeles Times

Anything bearing a Parker score of 90 points plus is sure to be a sound investment.

Evening Standard

The Benefits of Wine Investment are:

Capital Appreciation (of course!) Like the Fine Art market, Antique Market or the Luxury Goods Market, fine wine is well placed to benefit from growing demand for premium and prestige products worldwide. Prices of the most desirable fine wines have appreciated significantly in the last several years. However, the essential dynamic of growing international demand and finite supply makes the prospects for future growth very strong. Diversification Asset Fine wine has a long history of near-zero correlation with major debt and equity markets. As such, wine investment can provide diversification benefits to a conventional investment portfolio. Moreover, fine wine prices have an enviable track-record of minimal price volatility. Tax Efficient * If managed correctly fine wine can be a highly tax efficient asset. UK tax law considers wine a wasting asset and therefore not subject to CGT. It is also considered a chattel and is therefore preferentially treated with regards to Inheritance tax. Fine Wines are generally stored in UK Government bonded warehouses and as such benefit from being VAT and Duty free. Low Fee Base BWC charges a competitive management fee of 3% per year for 5 years in advance (total of 15%) which covers administration, handling fees and bond transfers, storage and insurance for 5 years. We also charge 5% commission on profits only. Auction houses charge 25% plus VAT (10% on sellers and 15% on buyers) and major wine traders usually price in an equivalent way. Maturing Asset A particular quality of fine wine is that it improves with keeping. So whilst wine does not produce a dividend stream it tends to appreciate in value regardless of the broader market situation. Transparent Pricing The fine wine market is experiencing a period of significant change as institutional investors begin to join the market in a concerted fashion. The growing interest in alternative investments will support this process for a significant period to come. This dynamic should serve to further improve both the transparency and stability of prices. Tangible Asset Wine is a physical asset which may appeal to certain investors. Even the most sceptical may be reassured that they can ultimately consume their investment! *Visit www.bordeauxwinecompany.com for further information.
400% 350% 300% 250%
% Increase of Release Price to 2009 Market Price

Fine Wine Versus Other Markets

Outside of the financial markets the fine wine market is one of the most established markets, proving it time and time again by outperforming Fine Art and Antiques, the FTSE and Dow Jones Industrial Average. The international trade of fine wine is long established and is note solely for the purpose of consumption. More and more people use this market as an alternative vehicle or as a way of reducing their exposure to the usual market risks, especially now with the credit crunch at our doorstep. The fine wine market is now worth in excess of 2bn a year. One of the main reasons this market has continued to grow and attract the attention of city analysts and the general investor is because it has demonstrated over the years to be a stable and consistent market with almost no volatility, unlike the traditional stock, bond and currency markets.

What the Papers Say

Overall, fine wine prices are up by 45.7 per cent since January That performance trounces almost every traditional asset class, from equity and bonds to property and hedge funds. It also beats many other collectables, such as rare postage stamps and gold. The Times, Friday 15 December, 2006 The index of the top 100 wineshas gained 39 per cent between January and December, outperforming the FTSE 100, which has risen by 3.4 per cent, and gold, which has seen its value swell by 23 per cent since the start of the year. The Independent, Friday 17 December, 2007 Then came the credit crunch The niche wine investment haven continues to look like a safe haven compared with property, fixed deposits, or equitiessince the beginning of this year the market has begun to register positive growth. In February, the Liv-ex 100 index put in its third and largest month of consecutive growth, rising by 2.6 per cent before breaking the 250 barrier for the first time in April. The Financial Times, Tuesday 20 May, 2008

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Fine Wine Investment Portfolio FTSE 100 NX Nikkei 300 Stock Average

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Compound Average Annual Growth

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000s 8.07% 30 _

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The bar chart above shows how the First Growth wines, grouped together, have increased in each vintage since release to April 2010. In the previous decade the First Growth wines, grouped together showed the following increases in each vintage between August 1991 and January 2000: 1982 323%, 1983 250%, 1985 277%, 1986 260%, 1988 173%, 1989 246%, 1990 510%.

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0.96% 0.10% -1.24%

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The value of Bordeaux wines bought at auction rose by an average of 198 per cent between 1996 and 2009. The best, premier cru, was up 447 per cent. The Times, Saturday 3 April 2010

Historically. The long-term success of fine wine as an asset class is difficult to argue with. In the past five years the Live-Ex Index has increased by 166 per cent, beating all the major share indices, including the FTSE 100 and the S&P 500. Recently the market has been dominated by the wines of Chateau Lafite-Rothschild, which have been marching upwards in price. A case of 2004 Lafite cost 2,150 but will go for 5,250 per case today. The Independent, Sunday 11 April 2010

Feb 10

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Our Company, Our Fees & Our Track Record

Established in 2002, Bordeaux Wine Company are purveyors of fine wine and one of the UKs leading fine wine investment specialists. We have no ties to any producers, therefore we offer impartial advice and recommendations. We are ideally positioned to assist private clients and financial institutions to identify and acquire the best vintages from the best Chteaux. We combine financial discipline, market insight and wine knowledge to optimise returns for our clients. Management and Commission Fees BWC operates 2 transparent and investor-friendly management fee structures. Our Fees are designed to align the interests of both the client and BWC. Our Investment plan fee structures are detailed below: PLAN A (Private Clients Only) Management Fee of 15% (at 3% per year for 5 years in advance). This includes: 1. Management for 5 years 2. Administration and bond transfers 3. Storage and Insurance for 5 years A 5% Re-sale Commission is charged on profits PLAN B (Premier and Institutional Clients Only) 1. 5% Brokers Premium/Commission 2. 2% Annual Management Fee 3. 10% Re-sale Commission (or Redemption Commission every 3 years on profits)

How Bordeaux Wine Company Can Assist You

Building a Portfolio Stock picking is as important in fine wine investment as in any other. Blanket investment in the best Chteaux or best vintages will not always yield the desired returns. It is very important to know which wines to buy and which to sell. BWC uses relative pricing, industry supplied information, release strategies and other factors to determine trade decisions. Whilst our selections are focused on First-growth Bordeaux, they can at times be complemented by second, third, fourth and even fifth growth wines. Access to Rare Stock We have established a network of negociants, merchants and traders throughout UK and Europe. These relationships give us the opportunity to secure and dispose of stock in as cost-efficient manner as possible. Quality Control The unfortunate reality is that the wine industry, like so many other luxury goods, is subject to counterfeit and the supply of inferior stock. To combat this we insist all our suppliers provide us with provenance and verification of all stock. All our stock is subject to this process. Almost all the wines we trade are OWC (Original Wooden Cases). Logistics, Storage and Insurance All our wines are transported by and stored at London City Bonds Vinotheque warehouse in Burton-On-Trent. Established since 1870 LCB is a Revenue & Customs regulated bonded warehouse and has the ideal climate and conditions for wine storage, ensuring that our clients wine are able to mature properly. Re-Sales BWC has the network of contacts throughout the UK and Europe to arrange the re-sale of your wines at a moments notice. Ordinarily, we advise our clients when to take profits or when we believe optimal yields have been achieved. Naturally, care and attention is taken in order to ensure that best prices are achieved. Structuring your Investment How your portfolio is structured depends greatly on the size of your traditional investment portfolio and your net worth. Initial investment and the length of term of the hold are very important as it will determine what we can recommend to you. BWC generally advises new clients to dip their toe in the market with anything from 4,000 to 25,000 for individual portfolio and 50,000 to 250,000 for an independent fund or a collective investment portfolio. On-going Management and Communication BWC take an active approach to maintaining the balance of your portfolio(s). We provide annual valuations of stock and monthly updates and recommendations through a dedicated Account Manager. This will provide you with not only an up-date on market value and new wines on offer but also an insight into the market and market forces. Additionally, we are best placed to help clients take advantage of opportunities as and when they arise. This value added service tends to be greatly appreciated by our clients.

Below are performance figures of some of our recommendations, made within the last eight years: 1-5 Years Growth
WINES Purchased from BWC Unit price 2010 Market price % increase Period of growth

Lafite-Rothschild 2008 Lafite-Rothschild 2000 Lafite-Rothschild 1998 Mouton-Rothschild 1996 Mouton-Rothschild 2003 Lafite-Rothschild 2005 Ausone 2003 Lafite-Rothschild 2003 Latour 2003

2009 2008 2007 2006 2006 2006 2005 2005 2005

3,980 12,300 3,184 1,584 1,568 4,700 4,140 2,600 3,500

6,200 17,800 6,500 3,100 3,200 9,500 13,500 9,700 7,800

56% 45% 104% 96% 104% 102% 226% 273% 123%

9 months 18 months 3 years 4 years 4 years 4 years 5 years 5 years 5 years

6+ Years Growth
WINES Purchased from BWC Unit price 2010 Market price % increase Period of growth

Haut-Brion 2000 Latour 2000 Carruades de Lafite 2003 Lafite-Rothschild 1996 Latour 1996 Cheval Blanc 2000 Lafite-Rothschild 2000 Margaux 2000 Lafite-Rothschild 2001 Lafite-Rothschild 2002 Latour 2002 Margaux 2002

2004 2004 2004 2003 2003 2003 2003 2003 2003 2003 2003 2003

2,800 3,352 337 2,680 2,244 3,520 3,176 3,184 990 800 920 800

5,400 8,500 2,350 10,150 6,400 7,500 17,800 7,500 5,750 5,750 3,100 2,500

93% 154% 597% 279% 185% 113% 460% 136% 481% 619% 237% 213%

6 years 6 years 6 years 7 years 7 years 7 years 7 years 7 years 7 years 7 years 7 years 7 years

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Client Testimonials
5th June 2009 I have been a client of BWC since 2004 and have been very happy with the service they have offered. The advice has always been well founded and the results achieved through my portfolio have outperformed my stock and shares during the same time period. My portfolio has grown in size and value mainly through advice in trading up wines in one vintage or chateau for better valued wines. This sound advice makes me happy to recommend BWC to anyone thinking of investing in fine wines. Mr. P. M. Taylor 11th June 2009 I have been dealing with The Bordeaux Wine Company for some five years. They have always offered authoritative and very helpful advice, and have purchased and sold wines of various vintages on my behalf in this time. My investment through The Bordeaux Wine Company has proved safer than either property or the stock market. In the current economic climate, I wish that my holding of wine in bond through them could have been larger. I am very pleased with the efficient and profitable service which they offer. Yours faithfully Mr. P. J. E. Gaffney 8th June 2009 For the last 6 years the Bordeaux Wine Company has been trading in fine wines on my behalf. With expert guidance and sound advice from Denise Williams, my contact at BWC, we have achieved very satisfactory financial results. Mr. F. J. Meikle 16th June 2009 I have been a client of BWC since late 2003. In that time I have found the staff to be courteous and knowledgeable. Paperwork is handled efficiently, and the occasional query is always responded to promptly. Any changes of procedure (storage facilities for example) are clearly explained in advance. I have now started to realise some of my early investments: like any class of investment a few purchases have languished, some have realised a solid profit, while several have made substantial gains. Overall my portfolios performance to date has exceeded the returns I would have obtained from a broad stock market investment, or a cash deposit. Mr. I. R. Tovey 4th June 2009 I have dealt with BWC for very many years and find that they are a company that I can trust, and from whom I can always expect the best. When it comes to selling, never a problem with transaction being dealt with promptly, and they have always aimed at getting the highest profit for me. Talking to the ladies, Nuala and Denise on the telephone is always a pleasure. After all of these years I feel as if I know them personally. Their telephone manner is second to none, being always friendly, polite and extremely helpful. This is a company that I would sincerely recommend. Mr. L. L. Jones 11th March 2009 I have used the Bordeaux Wine Co. to purchase good wine for several years. I have found them gracious, efficient and always helpful. My money has been safe and increased in value. Dr. C. Donovan 6th March 2009 I would like to take this opportunity to thank you for your assistance in establishing my exceptional Bordeaux Wine investment portfolio since joining you in 2004. I have been particularly impressed by the professional services, knowledge, advice and assistance provided by my account manager Denise Williams. I have to say that, in the midst of a collapsing equities market, the circumstances for my investments have been generally very satisfyingly profitable and tax-free. Likewise, when it has been appropriate for me to sell stock held in bond, I have been grateful for the sound and extensive assistance provided by Arlene King who has ensured a safe, expeditious and trouble-free conclusion to the sales. Altogether a most enjoyable experience. Thank you once again With best regards Mr. M. Bonsier 9th March 2009 Dear Denise, Just a note to say thank you for all your help you have given me these past few years. Yours sincerely Mr. J. Hall

Terms & Conditions

Investment Plan A

Purchase Written confirmation of orders will be issued together with an invoice prior to payment. Upon receipt of full payment into our bank account, we will purchase the wine from our suppliers as soon as is reasonably possible, if not already purchased and subject to the other provisions of these conditions, within 60 days of receipt. Quantity Quantity is agreed prior to sale and confirmed by invoice after sale agreement. All bottles are standard 75cl (750 ml) bottles, unless otherwise stated. Payment All payments are due within seven days of invoice date, unless otherwise agreed prior to sale. We reserve the right to cancel unpaid orders at any time after their due date. Certificate of Ownership Certificate of Ownership for bottled wines to be held under bond will be issued, complete with rotation numbers generated by the Government-Regulated bonded warehouse. En primeur Allocation-confirmation certificates will be issued within 28 days of receipt of full payment into our bank account. Once bottled and received by the warehouse, a certificate of ownership will be issued as above. Storage & Insurance Five years storage and insurance will be provided with each In Bond purchase. Storage and insurance charges will become the responsibility of the client after this period and will be charged at the prevailing rate of the warehouse at which the wine is being held. Delivery Bottled wines to be held by clients will be delivered free of charge to an agreed address in the United Kingdom, within thirty days of sale completion. Deliveries outside of the United Kingdom will be subject to charge. Price All prices are quoted in Pounds Sterling unless stated otherwise. All invoices shall be made and settled in Pounds Sterling unless agreed prior to sale. In Bond price includes a three percent management fee as a fixed rate annual charge for the first five years in advance. The total management fee is therefore fifteen percent to cover administration, bond transfers, storage and insurance for five years. At no time do we claim to sell the wine at the market-price, our prices are determined in-house and therefore the same wine may be found cheaper or more expensive elsewhere. Re-Sale & Commission We levi a five percent commission charge on profits achieved beyond the unit cost of your wine (excluding initial management fees) as detailed in the purchase invoice, for assisting in the re-sale of your wine. Additional expenses however, maybe incurred if the wine is sold via a third party such as an auction house. Prior to any sale, we will agree with you a minimum or reserve price you will accept. Clients are under no obligation to sell their wine through us. If you choose to re-sell your wine through another merchant or trader, we will invoice for five percent of profits achieved as detailed above. On-going Management Fees Should you choose to hold on to the wines for longer than the five years an on-going management fee of three percent of the current market value at the time minus the initial advance management fee of fifteen percent will be due annually until re-sale. Re-sale commission as detailed above will still be due once the wine is sold. Consumer Protection In accordance with The Consumer Protection (Distance Selling) Regulation 2000, cancellation of orders must be made in writing and may be made at any time up until the close of business on the seventh working day after your funds have been received into our bank account. Force Majeure We shall not be held liable for any failure to meet our obligations occasioned by circumstances beyond our control. Governing Law The agreement between The Bordeaux Wine Co partnership and the client are made under English Law and are subject to the exclusive jurisdiction of the English Courts.

Final Thoughts
If you have never considered this market before, no doubt there will be a few questions you wish to ask, such as: 1 Which wine should I buy and why? 2 How do I buy the wine? 3 How or where do I store and insure the wine? 4 How and where do I sell? 5 What costs do I incur? Bordeaux Wine Company will handle each of these areas for you, making it as easy and as trouble-free as possible. Also, you can further research the market at the following web sites and publications: www.erobertparker.com, www.wine-searcher.com, www.liv-ex.com, Decanter and The Wine Spectator magazines.

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the bordeaux wine co.

7-11 Cavendish Place, London W1G 0QD Switchboard +44 (0) 20 7291 3600 Facsmile +44 (0) 20 7291 3601 info@bordeauxwinecompany.com www.bordeauxwinecompany.com All Rights Reserved 2009