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Las Vegas Headliner Show Executive Summary

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LasVegasHeadlinerShow

ExecutiveSummary

ConfidentialMemorandumandDisclaimerThisexecutivesummarycontainsprivilegedandconfidentialinformationandunauthorizeduseof this information inanymanner is strictlyprohibited. Ifyouarenot the intendedrecipient,please notify the sender immediately. This executive summary is for informational purposesandnotintendedtobeageneralsolicitationorasecuritiesofferingofanykind.Priortomakingany decision to contribute capital, all investorsmust review and execute all private offeringdocuments.Potentialinvestorsandotherreadersarecautionedthattheseforwardlookingstatementsarepredictions only based on current information, assumptions and expectations that areinherentlysubjecttorisksanduncertaintiesthatcouldcausefutureeventsorresultstodiffermateriallyfromthosesetforthorimpliedbysuchforwardlookingstatements.Theseforward-lookingstatementscanbeidentifiedbytheuseofforward-lookingterminology,suchas“may,”“will,” “seek,” “should,” “expect,” “anticipate,” “project, “estimate,” “intend,” “continue,” or“believe” or the negatives thereof or other variations thereon or comparable terminology.Theseforward-lookingstatementsareonlymadeasofthedateofthisexecutivesummaryandSponsorsundertakenoobligationtopubliclyupdatesuchforward-lookingstatementstoreflectsubsequenteventsorcircumstances.The information contained herein is from sources believed to be reliable, however norepresentation by Jarrett Parker, Raja Rahman, Stratosphere Casino or Red MercuryEntertainmenteitherexpressedor implied, ismadeas to theaccuracyofany informationonthispropertyandallinvestorsshouldconducttheirownresearchtodeterminetheaccuracyofany statements made. An investment in this project will be a speculative investment andsubject to significant risks and therefore investors are encouraged to consult with theirpersonal legal and tax advisors. Neither the Sponsors, nor their representatives, officers,employees,affiliates,subcontractororvendorsprovidetax,legalorinvestmentadvice.Nothinginthisdocumentisintendedtobeorshouldbeconstruedassuchadvice.ThisdocumentdescribestheopportunitytopartnerwithJarrettandRajaonthere-launchoftheir latest Vegas Show at Stratosphere Hotel and Casino on the Las Vegas strip. The paircurrently are performing atHooters CasinoHotel in LasVegas and are excited to havebeenapproachedtoperformonalargerstagewithabetteroverallbusinessproposition.Formoreinformation,[email protected],(347)708-8383.

EXECUTIVESUMMARYMagicduoJarrett&RajaarecurrentlyheadliningintheirownshowinLasVegas. Knownfortheirground-breakingmagicandcontinuousAmericanTVpresence,theguysareuniquestarsontheLasVegasStrip.This ground-breaking duo just appeared on ABC’s hit TV show “Shark Tank” where theyperformedandstoodbeforeMarkCuban,KevinO’Leary,BarbaraCorcoran,LoriGreiner,andRobertHerjavec.Jarrett&Rajawereoneofonly140entrepreneursselectedfromover43,000applicantstotheABCshow,producedbyMarkBurnettProductions.ThecharismaticmagicduohasalsobeenseenonNBC’s#1hitshow,“America’sGotTalent”assemi-finalistsandwereHowieMandel’sfavoriteWildCardpick(season7)wheretheyproduceda full orchestra on stage. They also appeared in SyFy’s “WizardWars” with Penn & Teller(2014),BBC’s “TheSlammer” (2013), andall three seasonsof TheCW’s “Mastersof Illusion”hosted by Dean Cain (2014 – 2016). They have just finished shooting season four, andwillappearonAmericanTVallsummerandforaChristmasSpecial2017.Projectedfor2018isanappearanceonFox’snewprimetimeshow,“ShowtimeattheApollo”.ThetwotalentscametogetherinanimpromptuperformanceatTheFriar’sClubinNYC.Theyfirst performed as a cabaret act in Greenwich Village, Lincoln Center, and at Hollywood’sprestigiousMagicCastle(threetimes). AftermovingtoLasVegas,theyimmediatelylandedaresidencyatTheRegentHotel inSummerlin.Theycouldalsobeseen in thepopular“GoldenRainbow”showsinLasVegas.Sincethen,Jarrett&Rajahaveperformedtheirliveshowtoover2millionpeopleworldwide,andanadditional75millionsTVviewers.Theguysco-starredin“America’sGotTalentLIVE”atThePalazzoHotel in2013,where5oftheTVshow’smostpopularactscomprisedthe lineupproduced by AEG/Fremantle Media. They headlined in a $35M Mark Fisher production atResorts World (Singapore) called “Voyage de la Vie” (2010-2012) that was directed by PhilMcKinley(“ShowStoppers”,“SpidermanTurnOffTheDark”,“LeReve”).TheguysthenworkedwithCirqueduSoleildirector,GuyCaron(KA,Dralion)duringtheirsecondyearinSingapore.In2009, they wowed audiences at the legendary Vegas show, “JUBILEE!” at Bally’s Hotel, andperformedwiththerockband,OneRepublic.Theywereinvited,in2008,toBudapesttomagicconsultonafeaturefilm.In2005,DirectorKennyOrtega(“HighSchoolMusical”andMichaelJackson’s “This is It!”) brought their show to London for special appearances with DavidLaChapelle, Pamela Anderson and The Pussycat Dolls. Jarrett & Raja starred in China’s“Elements”(2007),theprestigiousEdinburghFestival(2004),asoldoutBritishtour(2005),andChina’sShenzhenMagicFestival(2003).LasVegasshowsenjoyayearroundstreamoftourists.90%ofshowticketsaresoldsameday.ThereforethedynamicsofaVegasshow,arelikenootherplaceonearth.Withover40millionvisitorsayearandover62,000hotelrooms,Vegasisoneofthetopentertainmentdestinations

intheworld.TheStratosphereisoneofseveralmarquispropertiesontheLasVegasStripwitha new renovation, family oriented rides and attractions, and two other highly successfulheadline shows in the same511 seat venue. Stratospherehas2,500newly renovated roomsandisseeingstrongoccupanciessincetherenovation.TheNorthStripbordersontheoriginaldowntownLasVegas.Thisareahasdeclinedinrecentdecades and is undergoing a resurgence as properties are redeveloped. Stratosphere isborderedbyTheHiltonGrandVacationClub.Thistimesharepropertyisfamilyorientedandwebelievethatwecanpullaudiencefromthatproperty.ThenewResortsWorldpropertyisunderconstructionacrossthestreetwhichwillfeature4,000roomswhencompleted.Vegas has several successful headline magic shows at MGM, Tropicana, Bally’s, and PlanetHollywood,Rio,Flamingo,andHarrah’s.Thenumberofshowsrepresentscompetitionofsorts,butalsospeakstothesuccessofthegenre.The Stratosphere venue has a total of 511 seats andwill initially be configured to seat 450guests with the addition of tables, expanding to the full 511 seats as the show’s popularitygrows. Most Vegas shows take 6-9 months to build an audience and achieve sustainedprofitability. Multiple marketing channels, ticket brokers, and hotel coupons are key toachievingthenumbers.Ticketspriceswillaverage$40(afterdiscounts)fora60minuteshowinthe4PMtimeslot.Thisisanidealtimeslotforfamilies.Forasampleoftheirrecentperformancesandpress,pleasevisit:COMMERCIAL(StratosphereBoxOffice,TimeShare,InRoom)https://vimeo.com/237503637/5aa61c862fSHARKTANK2016https://vimeo.com/165111531QUICKPROMO2016https://vimeo.com/171229856THECW“MASTERSOFILLUSION”TheStretcherhttps://vimeo.com/183542567THECW“MASTERSOFILLUSION”SawinginHalfhttps://vimeo.com/159898676THECW“MASTERSOFILLUSION”OrchestraAppearance!https://vimeo.com/159898131AMERICA’SGOTTALENThttps://vimeo.com/48999796

AMERICA’SGOTTALENThttps://www.youtube.com/watch?v=A9P8HV_mNCkTHECW“MASTERSOFILLUSION”FloatingPianohttps://www.youtube.com/watch?v=-3G9VYZxlf4

RECENTPRESSLINKS

JOHNKATSILOMETES(JAN.25,2017):http://www.reviewjournal.com/entertainment/columns/kats/dinner-show-magic-coming-jarrett-raja-hootersROBINLEACH(JAN.10,2017)http://www.reviewjournal.com/robin-leach/wicked-whispers-racy-rumors-jarrett-raja-sir-elton-john-blues-traveler-legends-concertROBINLEACH(JAN.5,2017)http://robinleach.reviewjournal.com/article/wicked-whispers-racy-rumors-jarrett-raja-criss-angel-belinda-katt-williams-at-park-theater/ROBINLEACH(AUG.26,2016)http://www.reviewjournal.com/robin-leach/despite-failure-shark-tank-duo-jarrett-raja-still-win-lv-showFORBES(APR.21,2016)http://www.forbes.com/sites/trangho/2016/04/21/shark-tank-preview-will-they-fall-for-this-magic-and-music-show/#7568b9ba3197

ABOUTTHEPERFORMERSMagicianJarrettParkerworkedunderthelegendaryHarryBlackstone,Jr.andwasmentoredbythe creative mind behind Doug Henning and numerous Broadway hits, Charles Reynolds.CurrentlyheandRajaworkwiththebrilliantmindofthe legendarymagicconsultant, JohnnyThompson(Penn&Teller,Siegfried&Roy,DavidCopperfield,CrissAngel,etc.)PianistRajaRahmanisagraduateofTheJuilliardSchool,havingstudiedwithSeymourLipkin,Jerome Lowenthal, Byron Janis, and Lev Vlassenko. Raja has toured Europe with legendaryconductorsMstislavRostropovich,SirGeorgSolti,andIonaBrown.Inaddition,hehastaughtatThe Juilliard School and currently teachesprivately in LasVegas. WhennotperformingwithJarrett & Raja, Raja is a concert pianist with frequent appearances at theMet in NYC. Heperformedon“TheLateShowwithStephenColbert”(CBS)inOctoberof2015.ABOUTREDMERCURYENTERTAINMENTRed Mercury Entertainment is a Las Vegas-based full service entertainment company thatprovides resorts and casinos with a comprehensive solution for entertainment, technicaldirection, box office operations, showroommanagement, andmarketing from partnerswithover 20 years of experience in the entertainment industry.CarlosReynosoisaformerAEGLiveentertainmentexecutiveandmostrecentlyservedasVicePresidentofCitywideEntertainmentforCaesarsEntertainment.He ispartner inRedMercuryEntertainment and oversees day-to-day operations. Reynoso has produced and managed avariety of high-profile acts and production shows including CeeLo Green as Loberace, JerrySeinfeld, Elton John,CelineDionANewDay, Prince3121,BarryManilow, JerseyBoys, BetteMidler The Show Must Go On, Shania Twain and many others.Venture capitalist and entrepreneur Darin Feinstein funded Red Mercury after successfullyproducingmultipleshows inLasVegas includingMJLIVEandEddieGriffinLiveat theRioAll-Suite Hotel & Casino and operating theaters and box offices for Caesars Entertainment invariousshowroomsinLasVegas.Heisa49percentownerintheworldfamousViperRoominLos Angeles, creator of Fat Bar on the Las Vegas Strip, owns three FatBurgers locally, is apartnerwithCoreyHarrison inBeautyBar inDowntownLasVegas, co-ownerof thecriticallyacclaimedElDoradoCantina authenticMexican restaurant andbar featuringdeliciousGMO-free and organic cuisine, Cash Factory USA and other investments. For more information,visitwww.BlackStarLV.com

THEOPPORTUNITY

TheSponsorsseek$325,000($100,000minimum)infundingtoparticipateinthelaunchoftheshowatStratosphere.Theshowhasthepotentialtogenerate$2.9Mperyearinnetincomeatfullcapacityandbreakevenat22.3%ofseatssold.JarrettandRajahavereachedanagreementwithRedMercuryEntertainmenttomanagethemarketingandticketsalesfortheshow.RedMercuryhasastellartrackrecordhavingproducedandmarketedseveralVegasshows.The investment will be structured as a loan whereby the investor receives a repayment ofcapitalandprofitthatterminateswhentheinvestorreceives2xtheirinitialinvestment.Theminimuminvestmentis$250.Theinvestorswillreceivecollectivelya20%pro-ratedshareoftheshowprofits(NetRevenue).Iftheaudiencegrowthfollowstheprojectionsofourmarketingteam(supportedbythesimilarperformance of other shows), this will translate into profitability of the show within a fewmonthsofopening.

PRE-PRODUCTIONUSEOFFUNDS:

Pre-ProductionStaging,Materials,Fees $35,000Staffingforrehearsalsinnewvenue $10,000MerchandiseInventory $4,000Legal $10,000Pre-productionFunding $59,000

Intheearlydaysoftheshow,whenoccupancyislessthan22.2%ofthehouse,cashflowwillbenegative.Theshortfallinoperatingexpenseswillbefundedbytheinvestmentintheshow.ShowBudget(pershow)IncomeTickettype Price 25%

discount40%

discountVIPTickets 69.99 52.49 41.99Level2 49.99 37.49 29.99Level3 39.99 29.99 23.99Revenuepotential 26,435 $19,826 $15,860Expense

Venuerent $250Principalperformers $400Dancers,Singers,MusicDirector $600StageHandsandTechnicians $720Ushers $240Marketing $950TicketBrokers $1,322Boxofficefees $2,363Localtaxes $1,000TotalShowExpense $9,032 Projectprofitat50%occupancy(pershow)

$4,386

Theshowwillachievebreak-evenat22.2%occupancy.Thishurdlecanbeachievedwithpropermarketingandhasbeenexceededrepeatedlywithother shows in theRedMercuryportfolioandattheStratospherevenues.

FINANCIALPROJECTIONRecentpastperformanceinthevenueisagoodindicatorofwhatispossible,andwhatislikely.“MJ Live” is selling out nightly. TheMichael Jackson tribute show is clearly appealing to thelegions of fans that Michael Jackson amassed over his career. MJ Live is leveraging a hugebrand.Wedonotexpecttomirrorthoseresultsimmediately.Thesecondshowcalled“World’sGreatestRockShow”isachievingasolid50%occupancyafterasixmonthrun.Thisun-brandedshowispullinginstrongnumbersinanareawherethereareanumberofsimilarmusicalacts.On this basis, it’s reasonable to assume thatwe canmirror the financial performanceof the“World’s Greatest Rock Show” assuming we are properly marketed. With a top quality act(which we have), the other keys to financial success in Las Vegas entertainment are acombinationof:

• Prominentadvertising• Ticketbrokerrelationships(withhealthycommissions)• ProminentvisibilityonthepowerhouseVegas.comwebsite• HotelCouponsandconciergedesk(broker)relationships

On this basis we have constructed what we believe to be a likely projection of revenues,expense,andprofit.Assuming a reasonable increase in ticket sales each month, we anticipate reaching theprojected256averageticketssoldbymonth7.Thecashflowprojectionfortheshowassumesaconservativeplateauat50%ofhouseoccupancy.

MonthlyCashFlowProjection TicketsSold CashFlowPaymenttoInvestors

Startup $(43,000) Month1 5% $(53,643) Month2 10% $(35,772) Month3 15% $(17,901) Month4 20% $(31) $-Month5 25% $17,840 $3,568Month6 30% $35,711 $7,142Month7 35% $53,581 $10,716Month8 40% $71,452 $14,290Month9 45% $89,323 $17,865Month10 50% $107,193 $21,439Month11 50% $107,193 $21,439Month12 50% $107,193 $21,439

CURRENTSHOWSINTHESTRATOSPHEREHOTELANDCASINO:MJLIVE(7pm)HavingmovedfromtheRivieraHoteltotheStratosphereinJanuaryof2015,MJLivenowsellsout the 511 seat theatre nightly. With Red Mercury Entertainment behind it, this showcontinuestobeahugesuccessfortheStratosphereHotel&Casino.TheKingofPopandalloftheHits.Showcasingthepurejoyofthislegendarysuperstarandhismusicincluding"Bad,""BillieJean,""BeatIt,""Dangerous,""SmoothCriminal,""Black&White,""Thriller,""Don'tStopTillYouGetEnough,"andmanymore.Featureslivebandanddancers.WORLD’SGREATESTROCKSHOW(9pm)Having “just” opened in January of 2017,World’sGreatest Rock Show is already selling at aregular50%capacity.WiththemarketingpowerofRedMercuryEntertainment,thisnewshowhasquicklygrowntoasuccessfulattraction.TheWorld’sGreatestRockShow,ARockLegendsTributeConcert,isthrillingVegasaudienceswith thedreamrockconcert they thoughtwasneverpossible.Celebrating someof themostbeloved classic rock bands of all time, this outstanding line-up of Las Vegas’ most talentedtributeartistsdeliverspot-on,breathtakingperformances–justliketheoriginalartists!Thisliverockmusicextravaganza transports theaudience toa timeandplacewhereyoucanwitnessincredible renditions of the signature songs so closely identified with these immortalentertainers – from the late 70s to the early 80s. Relive classic anthems from KISS, BruceSpringsteen,Journey,Heart,Meatloaf,VanHalenandmore!The show features an all-new LED wall, a stunning light show, video screens, and a stellarassemblyofmusicians,actorsanddancers. It isproducedanddirectedby“LasVegasWalkofStars” recipient, veteran producer Dick Feeney andDarin Feinstein, founder of RedMercuryEntertainment.SingalongtoyourfavoriterockhitsofalltimeREDNECKCOMEDYANDMAGICSHOWStratospherehasaonemanmagicshowinthe6pmtimeslotinasmallcomedyclub(differentvenue)intheStratospheremallareacalled“TheRedneckComedyandMagicShow”.ThatshowisratedRforages21andabove.Itisindependentlyproducedandisstillrunning.

HISTORYOFSHOWSATSTRATOSPHERE

PINUP:This9:30pshowstarredClaireSinclairandransuccessfullyfor4years(2013–2017).Itwas an adult themed burlesque show and closed to make room for the current World’sGreatestRockShow.FRANKIEMARENO: This7pmshowstarred thenamesakeasa singerathispianowitha fullbackupband.Theshowransuccessfullyfor3.5yearsandclosedtomakeroomforthecurrentsensation,MJLive.BITE:This10:30p“ToplessRockVampireReview”ranfor6years(2004–2010)attheStrat.ItwasverysuccessfulbothcriticallyandcommerciallyintheVegasmarket.