1.

EXPANSION STRATEGY

1.1. Peruvian Franchises in Latin America

Figure N Market of Peruvian franchises in Latin America 2012

Source: Census franchise PROMPERU

The graph shows the location of the Peruvian franchises in Latin America,
being Chile, the country where there is more presence.

1.2. Peruvian franchises in Chile

In Chile there are 22 Peruvian franchises, of which 82% belong to the

gastronomic sector, 9% to the fashion sector and services each.

Figure N Peruvian Franchises in Chile by Sector

Source: Census franchise - PROMPERU

 The list of Peruvian franchises in Chile is:

Astrid & Gastn La Mar

Segundo Muelle El Escondite del Gordo
El Embarcadero Osaka
Tanta Lulipa
China Wok Pardos Chicken
Disfruta Nitos
Hanzo Rockys
Do It Rosa Nutica
Heladeria 4D Applauzi
Brujas de Cachiche Rosatel
Madam Tusan

1.3. Franchise locations in Chile by Sector

With respect to the number of premises per sector, of the 5,232 franchise-
based franchises in Chile, the commercial and gastronomy sectors are the
largest share with 70% of the existing franchise stores with 45.1% and 24.6%
respectively.

N Franchise locations in Chile by Sector

Source: Census franchise - PROMPERU

1.4. Parts of Franchise Negotiation

a. Operations manual

It will be provided by RUSTICA in which it contains all the directives that will
regulate the administration and management of the system to maintain the
standards in the presentation and quality of the products or services offered, as
well as commercial secrets and other confidential information, which may Be
revised and modified by the same from time to time.

b. Payment:

Single payments:

- A fee or franchise fee for entering the system, which involves the license of the
trademarks and the operating method and confidential information, which will be
US $ 2,500 (US Dollars).

- A fee for initial technical assistance, which will be U $ 5,000 (US Dollars).

Royalties: Ad Valorem System

- % of net income, during the first and second year of the contract.

- % from the third year onwards.

- % of net business revenue, which is a marketing and advertising fee. This amount
will go to the public fund managed by RUSTICA.

This amount must be paid through payments to monthly accounts

c. Technical assistance

RUSTICA shall assist THE FRANCHISEE in the financial and commercial

management of resources, selecting methods and techniques of production and
marketing.
RUSTICA undertakes to send its cooks during the first two months of operation to
teach the preparation of the dishes
RUSTICA is committed to also provide permanent training to THE FRANCHISEE
and its personnel in the application of the operational method contained in the
Operations Manual.

d. Products and Services:

THE FRANCHISEE will offer the products that are part of the menu of dishes
currently offered by the company and with the option to add 3 dishes that will be
tasted by our cooks.
As for the service, it will be operated under the same system detailed in the
operations manual.
 As part of the show, representative humorists and musicians should be hired on
Fridays, twice a month, and in the same way for special festivities.

e. Product supplier

Most the ingredients must be purchased from suppliers that choose RUSTICA, only
for the case of spices and other combinations will be imported from Peru.

f. Inspection and Control:

RUSTICA will control the quality of products and services through regular
supervision that will be carried out twice a year. In the same way to the accounting
information, in order to maintain transparency.

g. Location and design of the establishment:

RUSTICA will select or approve the location and size of the franchise
establishment, as well as check their conditions and skills for the purposes of the
system. Also, it will provide the plans and the design on the space and external and
internal conditioning of this.
The total amount of the adaptation of the stablishment, will be totally invested by
the FRANCHISEE.

h. Advertising

RUSTICA should allocate the amount of the advertising fund for advertising and
promotion of the system, for the benefit of all the members of the chain, as well as
to finance the advertising campaigns.

i. Franchisee's obligations

THE FRANCHISEE must comply with all instructions contained in the operations
manual and, in turn, maintain confidentiality and avoid disclosure of the method of
operation and the regulations contained therein.

j. Penalty

In the event that THE FRANCHISEE fails to pay the royalties, it must pay as a
moratorium penalty an amount of up to US $ 150 (US Dollars) for each day of
delay.
If THE FRANCHISEE breach your obligations to disclose confidential company
information, violate the brand image, do not comply with the operations manual,
you must pay the amount of US $ 100,000.00 (US Dollars)