604-216-0188

Terms of Business

As of July 15th, 2012

The following terms and conditions reflect the policies and practices with which we conduct business. Primer
reserves the right to change any of the provisions herein from time to time.

These terms and conditions apply to any business interested in maintaining an account or opening a new
account with Primero. All potential customers are required to acknowledge, in writing, their acceptance of these terms prior to becoming customers of Primero.

Primero Cigar Imports is the Western Canada distributor of Cuban Cigars (Habanos). Such rights have been
granted by Havana House Cigar & Tobacco Merchants Ltd, the sole legal importer of Cuban cigars in Canada Primero Cigar Imports is also the distributor of many other cigars, tobaccos and accessories, from around the
world.

CUBAN CIGAR BRANDS

Havana House is the Exclusive Importer and Distributor of Cuban Cigars Brands (Habanos) for Canada. Havana House is also the registered owner or Exclusive Licensee of all the trademarks and copyrights
associated with the Brands Listed below, The list is not exhaustive as Havana House is in the process of
registering other trademarks or becoming the licensee for other trademarks.

  • Belinda
  • Bolivar
  • Cohiba
  • Cuaba
  • Diplomatico
  • El Rey del Mundo
  • Fonseca
  • Gispert
  • Guantanamera
  • H. Upmann
  • Hoyo de Monterrey
  • Jose L. Piedra
  • Juan Lopez
  • La Flor de Cano
  • La Gloria Cubana
  • Montecristo
  • Partagas
  • Por Larranga
  • Quai D’Orsay
  • Quintero
  • Rafael Gonzales
  • Ramon Allones
  • Romeo y Julieta
  • Saint Luis Rey
  • Sancho Panza
  • San Cristobal de Habana
  • Statos de Luxe
  • TrinidadTroya
  • Vegas Robaina
  • Vegueros

The customer will undertake not to buy or sell any Cuban cigar that has not been imported into Canada by Havana House. Primero Cigar Imports reserves the right to close the account of any and all customers who engage in the selling of or the offering for sale of contraband, black market or counterfeit Cuban cigars. Primero Cigar Imports will notify the proper authorities of any such illegal activity and will avail itself of all legal remedies against violators.

PRODUCT AND SUPPLY

Premium Cigars: Primero Cigar Imports undertakes to provide its customers with cigars of the highest
quality as represented by our suppliers and their brands, and maintained with proper humidity prior to
delivery. It is the customer’s responsibility to keep the goods at temperatures between 15 and 20 degrees
Celsius and 65% to 75% percent humidity level in order to avoid infestation or of any degrading of quality.
Primero reserves the right to not open an account should the customer not have the proper storage
conditions for premium cigars, the proper display for cigars, or if the location is not appropriate for the Brand
of cigars.

Mass Market Cigars & Specialty Cigarettes: Primero undertakes to provide its customers with top selling
products and high margin sales. We also recognize that geography and demographics play an important
role in the sale of specialty tobacco products, and reserve the right to not supply product if the location is
not appropriate. Guaranteed Sales on select mass market items are conditional on the following basis;
product must be returned within 3 months of purchase, a copy of the original purchase invoice must be
supplied, product must have all original packaging and seals (on individual packs) in tact, and no price tags
or other markings, product will be excepted for exchange only and no product will be accepted if it is not in a
resalable condition.

PRIMERO CIGAR IMPORTS LTD TERMS OF BUSINESS
1133 East Hastings Street, Vancouver, BC V6A 1S3
T. 604 216-0188 F. 604 255-2651

Due to fluctuations in the production and supply of cigars, and the potential for worldwide shortages of cigars and specialty tobacco, orders will be accepted and delivered only if the customer’s account is current, and on a first ordered, first served basis with no guarantee that all orders will be accepted.

Our top priority is to ensure all orders are shipped in a timely fashion; preferred service will be given to customers whose accounts are in good standing.

MINIMUM ORDERS

Please consult current “Shipping Policy” for minimum order amounts for free shipping.

Purchase volumes will be regularly reviewed, accounts with insufficient purchases will be closed at the
discretion of Primero Cigar Imports Ltd.

All prices are subject to change without notice and all prices are final.

PAYMENT TERMS & CREDIT LIMITS

  1. All new accounts will be on C.O.D. basis for the first six months before credit may be considered. Primero
    reserves the right to grant or deny credit; agreement to supply does not constitute credit.
  2. All payments will be due within the specified days of the payment terms stated on the invoice. After this
    period unpaid accounts will be suspended and no orders will be accepted until payment is received in full.
    Primero Cigar Imports reserves the right to close permanently the account of any customer with poor
    performance, including, but not limited to, customers who are continuously late in their payments as well as those customers who try to avoid paying outstanding amounts by changing their company names and/or
    addresses but are operated by the same managers or owned by the same principals.
  3. There will be a surcharge for all cheques returned NSF or dishonored; $25.00 for the first NSF, and $50.00
    for any additional NSF. Dishonored or NSF payments will result in automatic suspension of account until
    payment is full is received, and payment for all future orders will be required before the product is shipped.
  4. Customers with poor credit worthiness or whose cheques have previously been returned NSF will be
    required, at the option of Primero Cigar Imports, to pay for goods prior to delivery by certified cheque,
    money order, cash or PAD.
  5. Goods will remain the property of Primero Cigar Imports until the invoice is paid in full.
  6. Customers are responsible for the timely delivery of payments despite strikes or other situations. Interest
    charges will apply to invoices that are not paid within 5 days of the due date. Interest will be calculated on
    all outstanding balances at 1.5% a month from the date of invoice until paid in full.
  7. Payment Methods Accepted: cheque, money order, cash or pre-authorized debit.

OPENING OF NEW ACCOUNTS

In addition to signing the Terms of Business document and returning it to Primero Cigar Imports, companies wishing to open new accounts with Primero Cigar Imports must supply a copy of their business license and complete in full the ACCOUNT APPLICATION FORM attached to the Terms of Business document and return all to Primero Cigar Imports before Primero Cigar Imports will supply its price list and any other pertinent information. Primero Cigar Imports reserves its right to deny any application for supply and credit, which it finds unsatisfactory. All applicants will authorize Primero Cigar Imports to make any inquiries deemed necessary with respect to the credit worthiness of the Applicant and they shall also instruct their bank managers and/or managers of other financial institutions with which they deal to make their credit records and other financial information available to Primero Cigar Imports.