KRISPY KREME BOLIVIA BUSINESS PLAN / PROPOSAL CONTENT 1. EXECUTIVE SUMMARY:

a. Company Information: At DAHER CORPORACIÓN, we understand the strength and dynamics of Bolivia’s market and recognize the unique opportunity it represents for the development and growth of Krispy Kreme Doughnuts Franchise. DAHER ´S solid business experience, financial strength, logistic and human capabilities; strongly settle it down as the ideal partner for Krispy Kreme Franchise.

We have duly examined Bolivian’s coffee and bakery-related products’ market and have concluded that it represents an untapped potential market for Krispy Kreme. We are confident that our proposal will help KKD understand Bolivia’s market and the unique opportunities it offers the Franchise. By ensuring KKD Franchise for Bolivia, our goal is to open the first store at VENTURA MALL, the most important commercial infrastructure that DAHER owns in Santa Cruz, Bolivia. The opening of other stores will soon follow in other projects and cities of Bolivia. We are confident that a partnership between KKD and DAHER in Bolivia will help KKD:

Ensure the unique opportunity of becoming the first international Donut chain to enter Bolivia.

Increase its market share in Latin America. Join other international Franchises that are starting operations in Santa Cruz de la Sierra and

other cities in Bolivia. Partner with one of Bolivia’s leading business groups.

We believe that our ability to run successful businesses, together with our visionary, entrepreneurial spirit, make us an invaluable partner in Bolivia.

b. Portfolio: DAHER comprises the following companies:

DAHER REPRESENTACIONES – electronics retail and wholesale business. BEICRUZ – automotive services, tires and lubricant. DATEC – information technology solutions and services. LUXOR – car dealership for premium brands. DIGITAL TV CABLE – cable TV and internet broadband services. SUPERMERCADOS TIA – supermarket. HARD ROCK CAFÉ – restaurant. VENTURA MALL – shopping mall with 861,112 sq ft.

DAHER REPRESENTACIONES

Daher Representaciones has been Bolivia´s leading consumer electronics business since 1979, founded by visionary entrepreneur Abdala Daher. It started in the city of Santa Cruz and; by 1985 it expanded to the cities of La Paz and Cochabamba. Daher Representaciones expanded its retail-based business to wholesale with the opening of operations at the regional free-trade zone “Zona Franca Iquique”, which helped it achieve high volume distribution of electronics to Bolivia at a national tier. Daher’s wholesale division helped expand operations internationally.

BEICRUZ

Beicruz is the official Importer of Pirelli tires and Castrol lubricants since 2001. It began supplying to trucking enterprises and big fleet bus transportation companies. Within very short time it grew to a sizable operation, and also started tending to a chain of independent auto shops that have consolidated distribution of our product in the market. BEICRUZ currently provides its services and products throughout all cities in Bolivia.

DATEC

DATEC provides corporate IT services for banking, communications, retail, petroleum and government since 1999. Industry specific solutions for corporations include consulting services, system integration and hardware infrastructure management. Datec’s exclusive partners include: IBM, Lenovo, Cisco, Motorola, Hewlett-Packard, Lexmark, 3COM, Tripp-Lite, Kyocera. The company has 400 partner distribution channels to suit all customers’ needs.

LUXOR

LUXOR is an exclusive importer of Porsche, Land Rover, Range Rover and Jaguar in Bolivia. We have just built our buildings for the new showrooms set to the international standards required to service our premium car buyers. Our group believes there is a growing potential in the high end SUV segment, therefore we have created the appropriate ambience for luxury.

DIGITAL TV CABLE

Digital T.V. Cable and Internet broadband subscription service provider in the city of Santa Cruz. Since 2008 we have been building our network in the high densely populated areas of the city giving quality service plans at value prices to a growing number of customers.

SUPERMERCADO TIA

Tia Supermarkets is part of our diversification strategy. We are working right now to open our second store and taking advantage of some of the locations in our real estate portfolio. This is one more option for people of Santa Cruz de la Sierra – Bolivia, where they can find the best brands and fresh products.

Con formato: Color de fuente: Colorpersonalizado(RGB(31,73,125))

HARD ROCK CAFÉ

Hard Rock Café has just landed in our capital, Santa Cruz de la Sierra, located at Ventura Mall. With an investment of $us 3.5 Million, it took us about 12 months to build, implement and open to the public. It is an iconic brand that has created a wave of excitement and fun in town.

VENTURA MALL

Ventura Mall is ready to become the main entertainment and buying experience for Bolivians. It is the biggest shopping center in the country and it is also located at a very accessible and high end area of the city. The investment for the project is a total of $us. 50 Million in its first phase and the actual construction is 861,112 sq ft, half of which is a gross leasable area.

The project contemplates 180 retail stores, supermarket, food court, anchor store, movie theaters, entertainment center and outside dinning boulevard. Cinemas are operated by Cinemark USA, Inc.

c. Financial Information: Currently, we have the following estimated sales:

COMPANY ANNUAL SALES (US $ / MILL)

Daher 20 Beicruz 18 Datec 18 Luxor 6 Digital 7 Tía 5 Hard Rock Café 3 Ventura Mall 6 TOTAL 83

d. Summarize Future Plans: We are planning a diversity of exciting projects in the next five years, like:

� Theme Park (Fun Park).

� Hotel.

� The second Mall.

� Hospital.

� Among others.

0

5

10

15

20

25

Daher Beicruz Datec Luxor Digital Tía Hard RockCafé

VenturaMall

Total Annual Sales Dollars / 2014

2. SWOT ANALYSIS:

a. SWOT analysis for the KKD Business in Bolivia:

SWOT ANALYSIS

i. Entry: I. We can orient the market with a strong brand as KKD, where the following

key aspects are combined: a. International Franchise. b. Variety of flavors and experiences. c. Affordable price. d. Privileged location. e. Excellent management support professionals. f. Financial support of strong and successful companies locally.

II. An appropriate balance between these aspects will ensure the success of the franchise. It is important to note that we cannot underestimate any of the factors that contribute to the success of this project.

3. THE COUNTRY / BOLIVIA:

I. Bolivia is an attractive destination for foreign and national investors due to its diversified wealth of natural resources, sound macroeconomics and democratic and political stability. Foreign investment policy aims at ensuring an adequate climate of security and protection to foreign investors in accordance with the country's policies of industrial and technological development.

II. Bolivia provides stable public policies and effective institutions in the financial sector, which enables the country to compete for foreign direct investment at an international level. The Bolivian Government is committed to providing full support to investment portfolio projects that have a clear advantage to the infrastructure and economic development of the country.

III. According to data recently presented by Morales to the Legislative Assembly, income inequality in Bolivia has significantly decreased. In 2011, the richest 10% of the population had 36 times more income than the poorest 10%, down from 96 times more in 1997. “Bolivia is one of the few countries that has reduced inequality,” notes.

IV. Alicia Bárcena is the head of the UN Economic Commission for Latin America and the Caribbean (ECLAC). “The gap between rich and poor has been hugely narrowed”. Bolivia's domestic demand is fueled by rising incomes and narrowing inequality, two of the driving forces behind the country’s economic prosperity. Local evidence of increased domestic consumption and consumer purchasing power can be seen in cities such as Santa Cruz, which has become the most attractive place to invest in Bolivia. Santa Cruz is the preferred destination for banks, fast food outlets, supermarkets, shopping centers, and cinemas. Currently Santa Cruz is modern, prosperous and Bolivia’s new financial center. It is quickly becoming the most developed region of Bolivia and currently accounts for nearly 40% of the country's Gross National Product and up to 50% of all taxes paid into the national treasury. Demographically, Santa Cruz is one of the fastest growing regions in South America and Bolivia’s most important economic region due to the expansion of its agricultural and tourism industries. According to data from the 2012 census, the population of Santa Cruz is 2.7 million in a country of 10.4 million.

V. While ECLAC reduced the rate of growth for the region and stood at an average of 1.1% this year, the lowest since 2009, the expansion of Bolivian’s economy again rebound in the third quarter and reached 5.36%.

VI. According to official data from the National Statistics Institute (INE) published on its website, Bolivian’s economy grew until September this year 5.36%, showing a rebound after the second quarter GDP be placed at 5, 10%. This information draws on the Global Index of Economic Activity (IGAE), which measures national economic activity and is the result of the estimation of production-related variables.

VII. "The countries that lead the regional expansion next year will be Panama, with a rise in gross domestic product (GDP) of 7.0%, Bolivia (5.5%), Peru, Dominican Republic and Nicaragua (5.0%)" says ECLAC. Unlike 2014, the international organization estimates that growth in Latin America and the Caribbean will rebound in 2015 and will reach 2.2% on average.

Monthly Global Index of Economic Activity (IGAE) 2012 – 2014 (p)

a. Geographic Location: I. Santa Cruz is located in the eastern part of Bolivia, in the heart of South America.

II. It is the largest department in the country with 370,000 km2 and is politically divided into 15 provinces; whose capital is Santa Cruz de la Sierra.

III. It has geography of plains and mountain jungle of the Amazon type, subtropical climate with average temperatures of 28 ºC, which allows and promotes the agricultural activity in most of the region.

b. Architecture and Infrastructure:

I. The city has important buildings and excellent international food restaurants. II. Santa Cruz is growing with beautiful designs and modern architectural buildings.

c. People: I. Santa Cruz is a multicultural city. It receives people from many countries like Peru, Brazil,

Argentina, Chile, Colombia, Mexico, etc. II. Santa Cruz has a lot of young people who wants to meet new brands.

III. “Cruceños”, which is the gentile for the people from Santa Cruz, are generally easy going, hospitable, warm and inviting, but are also intensely protective and proud of their social and cultural heritage.

d. Market: I. Santa Cruz has grown quickly and dramatically over the past 25 years (doubling its

population just during the last 10 years). It is a vibrant, exciting region in which to live work, and volunteer. There are always many things to do.

II. Santa Cruz is modern and prosperous and Bolivia’s financial center. It is quickly becoming the most developed region of Bolivia and currently supplies nearly 40% of the country's Gross National Product and up to 50% of all taxes paid into the national treasury.

III. The main industries in the Department are agriculture, forestry, cattle, and mining. The department grows sugar cane, soybeans, rice, coffee, sunflowers, cacao, peanuts, yucca (“mandioca” called in Brazil), nuts, and many citrus and tropical fruits and vegetables. Oak, mahogany, and a variety of unusual and beautiful tropical woods such as tajibo and tarara can be found in Bolivia's Eastern forests.

I. The people are changing their consumption habits. Before the Opening of Ventura Mall, the people bought their things, garments, etc. in the local markets. After Ventura Mall, their behavior are orientated to demand security, have several options to decide what they want, to spend their time in different kind of options: to drink coffee, eat something, buy garments, all of these in the same place.

II. Ventura Mall has an explosive growing especially in the food industry. For example, one restaurant like Cinnabon has incomes around the US $ 80,000 per month, Hard Rock Café about US $ 250,000 per month, among others, and it is just to give an example.

III. The people have special preferences for the sweet desserts, and different options with a variety of flavors.

IV. Currently in our market we do not have a serious option with a diversity of flavor and a strong brand to conquer this market. We have an expert team that knows the special characteristics of our market. Our company has enough resources to finance this project and besides our trajectory is a guarantee of success for any project that we promote.

V. Ventura Mall receives every day more than 20,000 people. It means that we have more than a half million people per month. Approximately 20% of our visitors just want to walk and look around. The average ticket of this kind of visitors is around 10-15 dollars.

VI. The time for international brands to enter Bolivia is now. During the first half of 2014 the following franchises opened operations in Ventura Mal: Starbucks, Juan Valdez, Cinnabon, KFC, TGI Friday, Hard Rock Café, Sbarro, and Burger King, among others. Cinemark operates 13 screens, including Premier and XD theaters.

4. CUSTOMERS / COMPETITION: Regarding the preferences of the consumers, we can say that they love sweets. This is a very demanding product in the local taste. The consumer has a small array of choices, being ice-cream one of the most targeted in sales. In this segment arises the opportunity to introduce a new concept into the market, one

that will definitely appeal to the consumer, and that already has brand awareness amongst upper-class product consumers. KKD offers a product that would be easily adopted by the public, not only because of the familiarity with the products, but also because of the merchandising strategies (in store production, providing differentiated beverages, the possibility of to-go products, etc.); and finally a price range that would be accessibly to most segments of society.

a. Competition: i. First, we will compare similar businesses (franchises).

ii. Second, we will compare similar products.

1. Currently we have identified the following companies as potential competitors (similar business):

I. Cinnabon. (International Franchise)

II. Starbucks. (International Franchise)

III. Juan Valdez Café. (International Franchise)

IV. Alexander Coffee. (Local Brand)

V. Fridolin. (Local Brand)

VI. Mr. Café. (Local Brand)

All of these have a good atmosphere, a variety of sweet snacks, salty snacks options, hot and cold drinks. Its facilities are located in affluent areas (residential, commercial, business, etc.). Its dimensions are between 100 and 250 m2. In all cases, products are marketed as fresh. a. Cinnabon: It is an American chain of pastries; its main specialty is

cinnamon roll. It is also known for selling coffees in different flavors with cream and smoothies. It is currently at Ventura Mall with 120 m2. It has 4 locations in total: 1 Airport, 1 Ventura Mall, 1 Cine Center, 1 Multicines (La Paz).

b. Starbucks: It currently has 2 locations: 1 Ventura Mall and 1 Flagship stand alone.

c. Juan Valdez Café: It identifies the Premium Colombian Coffee, recognizing their origins. It offers various options for hot and cold drinks, sandwiches, muffins, cakes, etc. Currently 1 location at Ventura Mall.

d. Alexander Coffee: It offers a casual dining experience and it pioneers in the coffee shop business since 1996. It is positioned brand with very good locations. It offers cold/hot drinks (juices, frappes, smoothies, etc.) hot plates, pastries, salty snacks, sandwiches, alcohol drinks, among others. It currently has 13 locations: 8 La Paz, 2 Santa Cruz and 3 at the Airports.

e. Fridolin: It is a casual dining store which is strongly positioned for specialty pastries, cakes, traditional baked goods and coffee. They offer cold/hot drinks (juices, frappes, smoothies, etc.) hot plates, pastries, salty snacks, sandwiches, alcohol drinks, among others. It currently has 17 locations: (2) La Paz and (15) Santa Cruz.

f. Mr. Café: It offers the same concept as other coffee shops. Its offers include donuts and churros. It currently has 2 locations in Santa Cruz and has an alliance with Hipermaxi supermarket.

Strategic Matrix (KKD vs others) It has identified several companies that we currently have on the market in a matrix that allows providing a spectral location with reference to two variables: Coverage and Recognition. As coverage, we understand the level of growth that currently has the company in our market. It gives four internal variables: Facilities, National Presence, Location, Cleanliness and Service. As recognition, we understand the level of satisfaction and appreciation that grants the customer to that company. It also gives four internal variables: Local Brand, International Brand, Taste and Price. The detail of each variable, its rating and weighting, is in the following table:

Year 1:

5 4 3 2 1 Facilities: They have facilities proper equal to or greater than 200 m2. Very Good Good Average Bad Worse 0.2 National Presence:

:

They have facilities in more than one store (Santa Cruz) and have National Presence (La Paz and/or Cochabamba).

National +9 5-8 2-4 1 0.3

Location: They have

facilities

in good residential, commercial and/or business areas. Very Good

Good Average

Bad

Worse

0.3

Cleanliness and Services: Its facilities show a cleaning service according to a food establishment and / or an international franchise.

Very Good Good Average

Bad

Worse

0.2

Local Brand: They enjoy an adequate prestige and its brands are recognized locally. Very Good Good Average

Bad

Worse

0.3 International Brand: They enjoy an adequate prestige and its brands are recognized internationally.

Very Good Good Average

Bad

Worse

0.2

Flavor: They enjoy an adequate prestige recognized locally due to its flavor. Very Good Good Average

Bad

Worse

0.2

Price: Their prices are according to the market and among similar companies, there are no major variations. "A comparison with a product equal or equivalent was conducted".

Very Cheap Cheap Average Expen Very Expen 0.3

% Variables

COVERAGE

Qualification

RECOGNITION

Detail

Comments: 1. For companies that have similar characteristics in terms of international or national franchise companies’ significant presence, there is a marked fragmentation in Quadrant II. 2. Cinnabon (International), Fridolin (National) and Alexander (National) share a very strong spray. We must take into consideration that Cinnabon, has little time to market, however, it has managed to settle into a spectrum of very even competition. 3. Starkucks and Juan Valdez, are starting operations in Bolivia and that initial location would be their starting point. We believe that in the coming years, their location must grow. 4. California and Daylight, are very small, spent years in the market, but have growth potential due to poor management and poor resources to boost growth. 5. Monky's and Circus, are very small, are new ventures, yet have to see their development in the market, however, we believe that although their product is not bad and have relatively good locations, have the financial backing to drive more aggressive growth in a immediate term. 6. KKD one. Would be the minimum expected position for the First Year Management. It has been considered the opening in Ventura Mall in the City Centre and in the Airport. Year 5:

Remarks: 1. Daylight California and probably finish out of the market, or reducing its current due to the presence of KKD since to date are the only options Donuts. 2. Mr. Coffee has failed to generate growth over the years, is expected to lower its position. 2. Monky's and Circus, no significant growth is expected. 3. Cinnabon (International), Fridolin (National) and Alexander (National) should follow atomized. Of these aggressive to further consolidate its position in the market growth is expected. 4. Starbucks and Juan Valdez, have an important support and the market has shown generous with their options, therefore, are expected to continue growing. 5. KKD 2, 3, 4 and 5 are the expected positions for the following years. 6. At the end of the 5th. year, the expected positions should achieve a marked fragmentation of the following companies: Cinnabon (International), Fridolin (National), Alexander (National), Starbucks (International), Juan Valdez (International) and KKD (International). 7. While there will be a major enterprise level fragmentation, since all offer opportunities for sharing with such alternatives in terms of quality, price, location, brand, etc., indicate a significant leadership KKD as the only option Donuts in the Bolivian market. 8. We have to take into account the future years can be generated the stage for the entry of potential competitors like Dunkin 'Donuts. It is therefore extremely important to prioritize the startup of KKD to establish itself as the only serious option Donuts in the country.

2. Currently we have identified the following companies as potential competitors (similar products):

I. Monky’s Churros. (Local Brand)

II. California Donuts. (Local Brand) III. Daylight Donuts. (Local Brand) IV. Circus. (Local Brand)

Besides their facilities and business concept, these brands are related, because they have the following characteristics: Feature: Self Product. (donuts). Product Substitute (churros or sweet pastry). Alternate Product (salty snacks of local flavor).

a. Monky’s Churros: Feature: Product Substitute. Flavor: Pleasant / Regular. Few options (Sweetened

condensed milk and Chocolate). Location: Low (Residential and Downtown). Facilities: Regular / Scatter. Price: 5 Bs.

b. California Donuts: Feature: Self Product. Flavor: Pleasant / Regular. Few options (Topping and Filled

with sweetened condensed milk). Location: Downtown and 2nd. Ring (Center and low Shopping

Area). Facilities: Bad / Very bad. Price: Glaze 5 Bs and Filled Bs 8.

c. Daylight Donuts: Feature: Self Product.

Flavor: Pleasant / Regular. Several options (several options Icing and Filling).

Location: Centro. Facilities: Regulars. Price: Glaze 5 Bs and Filled Bs 8.

d. Circus: Feature: Product Substitute. Flavor: Pleasant/Regular. Several options (Pastry and

Churros). Location: Cine Center. Facilities: Regulars. Price: Churro Bs. 7.

It is very important to note identified the following details: There are many options substitutes and alternatives. Companies that sell donuts are more like a shop local

neighborhood. All Donuts with stuffing are cut in half and spread with “Dulce de

Leche” (sweetened condensed milk). All Donuts stores have serious health problems.

5. KKD POSITIONING & PRICING:

a. Pricing: The detail price equal, substitutes and alternatives are provided to identify the gap of difference as follows:

Company Product Price Bs. Price per Unit US $

Units / Units (Glaze = 1.21)

Dozen / Units (Glaze = 0.83)

Unidad / Units (Variety = 1.37)

Dozen / Units (Variety = 0.94)

Cinnabon Cinnabon Mix Bites (5 units) 23 0.66 83% 26% 107% 42%

Cinnabon Caramel Pecanbon 25 3.59 -66% -77% -62% -74% Alexander Coffee National Dishes 8 1.15 5% -28% 19% -18% Fridolin National Dishes

8 1.15 5% -28% 19% -18% Mr. Café Donuts / Churros 6 0.86 40% -4% 59% 9% Monky's Churros Churros 5 0.72 68% 16% 91% 31% California Donuts Donuts 5 0.72 68% 16% 91% 31% Daylight Donuts Donuts 5 0.72 68% 16% 91% 31% Circus Churros 7 1.01 20% -17% 36% -7% KKD* Donuts

(Units) 8 1.21 KKD* Donuts Glaseado

(Dozen) 6 0.83 KKD* Donuts Variado

(Units) 10 1.37 KKD* Donuts Variado

(Dozen) 7 0.94 *KKD: Reference Prices from Colombia.

6. ROLL OUT PLAN:

a. Number of Stores, Types of Stores:

i. We plan to open with the following schedule:

I. Year 1: 1 Commissary | 1 KKD in Ventura Mall.

1 KKD Airport. (Santa Cruz)

1 KKD Downtown Gallery. (Santa Cruz)

II. Year 2: -

III. Year 3: 1 KKD Southern Area. (Santa Cruz)

IV. Year 4: -

V. Year 5: 1 KKD Multicine. (La Paz)

1 KKD Airport. (La Paz)

VI. In the future, we will consider opening 1 KKD in each of our projects:

a. Shopping Malls.

b. Supermarkets.

c. Strip Centers.

d. Kiosks in shop.

Company Product Price Bs. Price per Unit US $ Comparison

Cinnabon Cafe Express 10 1.44 -22% Starbucks Cafe Express 15 2.16 -48% Juan Valdez Café Cafe Express 15 2.16 -48% KKD Cafe Express 8 1.12

b. Maps Detailing Development Plans:

7. ORGANIZATION & MANAGEMENT: a. KKD Structure:

i. Ownership Structure & Percentages by Person / Company / Group: I. The XXXcompany belongs to the following partners:

a. Edmund Daher 100.00% ii. Extent of Involvement with the Company:

I. They are involved in company results. II. They have the commitment to insure the successful of this project.

III. They have a corporate team to manage these projects and special franchises b. Organizational Structure: This project will be overseen by Mr. Edmund Daher, who will

manage the work of following corporate team: i. International Franchising - General Manager: Responsible for Managing Franchise

I. Construction Facilities – Manager. II. Operations - Manager: Responsible for ensuring adequate supply of product

to retail outlets. Responsible for the quality of product is according to the required minimum standards. Responsible for Compliance Audit Reports BPM and Service Level Audits store.

III. Finance and Administration – Manager. IV. Human Resources – Manager. V. Marketing – Manager.

VI. KKD Restaurant - Manager: Responsible for the direct operation of the store. Manage staff in charge and manage their schedules. Keep the store at optimum levels based on the minimum parameters required in relation to cleanliness, service level and compliance staff sales targets.

c. Work Together: i. At DAHER, we strongly believe that we are positioned as the ideal partner for the

KKD Franchise in Bolivia and that we can contribute to a swift market development and the maximization of the market opportunities.

ii. We have financial strength, excellent knowledge of this market, successfully businesses in different industries, we have an excellent place for KKD and we have the best professional team to manage this project.

iii. We hope that KKD will evaluate our proposal as a genuine and serious offer and consider us to become its long-term partner in Bolivia.

iv. We are available to answer any questions you may have and look forward to discussing this opportunity further.

8. OVERALL BUSINESS PLAN:

a. Project Business Plan and Financials by Store Type: i. Sensitivity Analysis on Sales Volumes: Based on the number of estimated and

considering a linear projection stores, it would be assuming the following sales per year per revenue and per type of store:

Gerencia General

Gerencia Operativa

Supervisión de Producción

Operarios

Auditoría de Tienda

Control de Calidad

Jefatura de Tienda KKD

Atención al Cliente

Gerencia de Marketing

Gerencia Proyectos de Construcción

Gerencia de Administración

y Finanzas

Recursos Humanos

It is considering a rental expense, based on experience and the current cost of real estate, which, could be subject to change at the time:

In the case of investments by type of store, consider the following estimate:

INVESTMENT STORE US $ LOCATION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1 Factory 1 KKD by the Boulevard of Ventura Mall. SANTA CRUZ 150,000 1 KKD by downtown (ABC Color). SANTA CRUZ 70,000 1 KKD in the Southern Area (Velarde). SANTA CRUZ 70,000 1 KKD at the Airport. SANTA CRUZ 70,000 1 KKD at Multicine. LA PAZ 150,000 1 KKD at the Airport. LA PAZ 70,000

YEARLY INVESTMENT STORE 290,000 0 70,000 0 220,000

INCOME STORE US $ LOCATION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1 Factory 1 KKD by the Boulevard of Ventura Mall. SANTA CRUZ 2,000 2,000 2,000 2,000 2,000 1 KKD by downtown (ABC Color). SANTA CRUZ 2,000 2,000 2,000 2,000 2,000 1 KKD in the Southern Area (Velarde). SANTA CRUZ 2,000 2,000 2,000 1 KKD at the Airport. SANTA CRUZ 2,000 2,000 2,000 2,000 2,000 1 KKD at Multicine. LA PAZ 2,000 1 KKD at the Airport. LA PAZ 2,000

MONTHLY INCOME STORE 6,000 6,000 8,000 8,000 12,000 YEARLY INCOME STORE 72,000 72,000 96,000 96,000 144,000

SALES REVENUE US $ LOCATION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1 Factory 1 KKD by the Boulevard of Ventura Mall. SANTA CRUZ 70,000 70,000 70,000 70,000 70,000 1 KKD by downtown (ABC Color). SANTA CRUZ 45,000 45,000 45,000 45,000 45,000 1 KKD in the Southern Area (Velarde). SANTA CRUZ 45,000 45,000 45,000 1 KKD at the Airport. SANTA CRUZ 40,000 40,000 40,000 40,000 40,000 1 KKD at Multicine. LA PAZ 70,000 1 KKD at the Airport. LA PAZ 40,000

MONTHLY SALES REVENUE 155,000 155,000 200,000 200,000 310,000 YEARLY SALES REVENUE 1,860,000 1,860,000 2,400,000 2,400,000 3,720,000

ii. Return Expectations (Payback, Cash / Cash IRR):

Sincerely, Edmund Daher DAHER CORPORACIÓN

KKDP&L YEAR YEAR YEAR YEAR YEAR

1 % 2 % 3 % 4 % 5 %SALES 1,860,000 100% 1,860,000 100% 2,400,000 100% 2,400,000 100% 3,720,000 100%COGS (Cost of Goods) 651,000 35% 651,000 35% 840,000 35% 840,000 35% 1,302,000 35%GROSS PFT 1,209,000 65% 1,209,000 65% 1,560,000 65% 1,560,000 65% 2,418,000 65%LABOR 279,000 15% 279,000 15% 360,000 15% 360,000 15% 558,000 15%CTRLB (Controllable Expenses) 223,200 12% 223,200 12% 288,000 12% 288,000 12% 446,400 12%MKTG 37,200 2% 37,200 2% 48,000 2% 48,000 2% 74,400 2%OP. PROFIT 669,600 36% 669,600 36% 864,000 36% 864,000 36% 1,339,200 36%FIXED: BASE RENT 72,000 4% 72,000 4% 96,000 4% 96,000 4% 144,000 4% INS/TAX/LIC 18,600 1% 18,600 1% 24,000 1% 24,000 1% 37,200 1% OTHER DEPR. FFE (includes inventory) 28,571 2% 28,571 2% 28,571 1% 28,571 1% 28,571 1% " PREOPENING 290,000 16% 0 0% 70,000 3% 0 0% 220,000 6% ROYALTIES 93,000 5% 93,000 5% 120,000 5% 120,000 5% 186,000 5% TOTAL FIXED 502,171 27% 212,171 11% 338,571 14% 268,571 11% 615,771 17%PRETAX PROFIT 167,429 9% 457,429 25% 525,429 22% 595,429 25% 723,429 19%TAXES 41,857 25% 114,357 25% 131,357 25% 148,857 25% 180,857 25%NET INCOME 125,571 7% 343,071 18% 394,071 16% 446,571 19% 542,571 15%

YEAR YR. 0 YR. 1 YR. 2 YR. 3 YR. 4 YR. 5

INITIAL CASH EXPENDITURES:Preopening Expense -580,000Soft Costs -32,000Inventory -5,000Equipment -175,000

Total Capital Expenditures -792,000

PRE-TAX CASH FLOW 125,571 343,071 394,071 446,571 542,571

TOTAL CASH FLOW -792,000 125,571 343,071 394,071 446,571 542,571

NPV @ 10% 543,666 PAYBACK 2.8 IRR 29.4%

ANNEXES

i. Staff Training: We consider the training of our staff, should be the key to ensuring the success of our operation. It is very important to fully understand the procedures concerning proper production of products, vendor selection, adequate levels of customer service, compliance with its standards of operation, among other key factors that help ensure business success.

ii. Importing the Pre-mix and other inputs: It is critical that we get all the necessary for production locally elements in the first instance, this point will eliminate any risk involved in importing. Failing that, we must make the necessary arrangements for imports from the closest square of our country.

iii. Location: It is very important to identify strategic locations with a large crowd or frequency of visit and SES (socioeconomic status) of visitors so that they are within the segments M, MH and H (Medium, Medium-High and High).