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START-UP CHILE
TECHNICAL AND ADMINISTRATIVE REQUIREMENTS
INNOVACHILE



SECTION 1: TECHNICAL REQUIREMENTS


1. BACKGROUND

The strategy of the Chilean Ministry of Economy, Development and Tourism Chiles
economic development aims to position Chile as the hub of innovation and
entrepreneurship in Latin America.

In this context, InnovaChile of CORFO, through its program "Start-Up Chile",
hereinafter and indistinctly "the Program", aims to improve the local entrepreneurship
ecosystem by forming connections with other innovation hubs, supporting the creation
of success stories that can lead by example, and accelerating the transfer of the
knowledge and skills of global entrepreneurs to local entrepreneurs and investors.

During 2010 and as a pilot initiative, over 20 projects from 14 countries were selected
and inserted into the Chilean ecosystem, with wide coverage by international media
and local actors of its development in Chile, with the program providing co-financing for
participants projects, temporary visas and access to various social and capital
networks.

Subsequently, in 2011 and 2012, the Program was developed in the form of multiple
competitions, carrying out six calls for applications, receiving over 3000 applications
and selecting about 600 projects.

The Program is promoted by the Chilean Ministry of Economy, Development and
Tourism, executed by InnovaChile of CORFO, and has the support of the Consular
Policy Directorate of the Chilean Ministry of Foreign Affairs, the Immigration and
Migration Department of the Interior Ministry and the Civil Registration and
Identification Service of the Ministry of Justice.


2. OBJECTIVE

2.1 General Objective

To attract and retain human capital that initiates projects with high growth potential,
strengthening the entrepreneurship ecosystem, supporting a culture of innovation in
Chile and connecting with the world through local and international networks of
entrepreneurs.

2.2 Specific Objectives

a) To attract and retain projects with high growth potential in Chile
b) Promote interaction, networking, and the transfer of knowledge and skills from
the selected entrepreneurs to local entrepreneurs and their ecosystem.
c) Connect national entrepreneurs with global innovation hubs.


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3. EXPECTED RESULTS AND IMPACTS

It is expected that projects
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and their participants will achieve at least one of the
following results.

a) Incorporation of the participants in the national entrepreneurship ecosystem
b) Implementation of projects in Chile for at least 24 (twenty four) weeks.
c) Carrying out activities necessary for fulfillment of the goals proposed in the
projects
d) Installation in Chile as formal businesses, with the intention to leave operations in
our country
e) Employment of local talent.
f) Attend at least 70% (seventy percent) of Program events.
g) Lead at least 6 (six) group workshops.
h) To attend meetings with potential investors with the intention of raising capital.
i) Development and dissemination of at least 3 (three) press appearances in
English in international media, based on experience obtained
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4. PARTICIPANTS

Chilean or foreign natural persons over eighteen years of age and who are the
founders or owners of a global project to be implemented using Chile as a platform.

The following categories will be considered:

4.1 Beneficiary (only one)

The beneficiary is the natural person, duly specified during the application process,
who must act in name and representation of him or herself and of the executors, as the
person responsible before InnovaChile. The person designated as the beneficiary must
participate in the Program in Chile, during the entire period of project execution, and be
exclusively dedicated to the development of this project; likewise, the beneficiary will be
the active and passive subject of all rights and obligations established in the grant
agreement, including detailed reports on expenses and activities materialized by the
beneficiary or third parties,

4.2 Executor (s) (optional)

Optionally, the participation of up to two natural persons who form part of the founding
team and who are duly specified during the application process may be considered.

In no circumstance may more than three natural persons be participants in the project


5. ACTIVITIES ELIGIBLE FOR FINANCING

Those activities that enable the initiation of projects with high growth potential that use
Chile as a platform.


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A business idea will be defined as the business idea which the applicant arrives to develop and with which the applicant applies
to the Program.
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Press appearances are defined as: contents of blog posts, interviews, multimedia, etc.
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Projects may not consist of exportation and importation of products, consulting services
and franchises, as these are not considered to be highly scalable projects with high
growth potential. Likewise, projects must be in early stages of development,
understanding these to be projects with less than two years of development.


6. PROGRAM ACTIVITIES

The Program will include a variety of activities and/ or events, which will be made
available to participants, and among which a distinction will be made between
mandatory and optional activities.

6.1 Mandatory Activities

During participation in the Program and during the term of execution of the project, the
beneficiary must participate in the following mandatory activities:

a) Intro Day: Presentation of the project, following the requirements opportunely
informed by InnovaChile, with the purpose of identifying the projects current
development phase, specifically. This presentation must be made at the
beginning of the project execution term, on the date duly informed by InnovaChile
to the beneficiary.

b) Internal Demo Day: Presentation of the project, following the requirements
opportunely informed by InnovaChile, with the purpose of determining its
progress and development. This presentation will be conducted among the
Program participants and representatives of InnovaChile, during approximately
the middle of the execution term for the project, on the date duly informed by
InnovaChile to the beneficiary.

c) Other activities within the Start-Up Chile Program that are determined by
InnovaChile to be mandatory, a circumstance that will be communicated with
due advance notice to the beneficiary.

In justified cases, and exceptionally, InnovaChile may authorize the beneficiary not to
participate in one of these activities and determine the measures necessary to ensure
fulfillment of the Program goals. In making this decision, InnovaChile may take into
consideration, among other things, the level of participation by the beneficiary and
executors in the Program activities.

It the beneficiary does not participate in the activities and/ or events specified herein
above, without having been authorized not to participate, InnovaChile may evaluate
putting an early end to the Project, applying the rules established in subsection 12.3.1
of the Administrative Requirements (Section 2) to the return of the grant.

Participation of the project executors, if these exist, in the activities detailed above is
optional, but desirable.

6.2 Optional activities

Optionally, the beneficiary and/ or the executor(s) may participate in and/ or carry out
the following activities, unless these have been categorized as mandatory by
InnovaChile, as set out in the previous subsection:

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a) Demo Day: Presentation of the project to local and/ or foreign investors,
following the requirements opportunely informed by InnovaChile. This
presentation will be made, approximately, in the last two months of the project
execution term and, therefore, of participation in the Program, on the date duly
informed by InnovaChile to the beneficiary.

b) Presentations, workshops, classes or other events organized by other
Program participants.

c) Other activities.


7. CONTENTS OF THE PROJECT

Applications must include, among other components:

7.1. With respect to the participants:
a) Background documentation for each of the participants named in the
project application, stating each persons nationality, education, technical
experience and work history. The achievements of each one of the
participants must be demonstrable.
b) Dedication to the project.
c) Team composition.
d) Motivation to develop the project from Chile.
e) The number of times that participants have founded a start-up
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.
f) Participation in organizations related to entrepreneurship and innovation
g) Relationship with national networks to enhance those existing in Chile.
h) Relationship with international networks to position Chile as an innovation
hub.
i) E-mail address of at least one reference. This person will be contacted by
InnovaChile prior to the closing of the application period, and the name of
the organization or community to which he or she belongs will be asked for,
as well as his or her reasons for supporting the project. Both the
information regarding the reference that must be facilitated by the
beneficiary and the information that the reference must provide to
InnovaChile must be sent before applications have been closed.
j) Activities to promote interaction, networking and the transfer of knowledge
skills and best practices to local entrepreneurs and their environment.

7.2. Concerning the Project
a) The product and/or service.
b) Description of the competition and the projects differentiation.
c) Marketing strategy.
d) Entry and exit barriers.
e) Progress to date and plan during participants stay in Chile.
f) Investors.
g) Mentor.
h) Competitive advantage.
i) Market challenge or opportunity addressed by the Project
j) Target market and its size
k) Market position
l) Stage of development of the Project
m) Competitors

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This does not refer to participation in the Program, but rather, in general, to companies in early stages or formation.
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Incomplete applications will be understood to be not submitted, defining these as
applications that present 2 or more empty fields in the application, or 3 or more empty
dropdown items.


8. DEADLINES

The project duration must be 24 weeks, which may be extended only once and for up
to 4 additional weeks, upon founded request by the beneficiary. This request must be
submitted before the original deadline.

The project will be understood to have begun from the date of complete processing of
the InnovaChile Resolution approving the grant agreement.
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.

During the project execution period, no participant may participate in any capacity in
other co-financing from InnovaChile
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. Likewise, participants may not apply to these
programs during the first 12 weeks of project execution; after that period, participants
may apply, with the obligation that they communicate in their application that they are
beneficiaries of the "Start-Up Chile " Program.


9. CO-FINANCING

InnovaChile provides a grant, in other words, a non-refundable transfer of money for up
to 90% of the total project cost with a ceiling of Ch$20,000,000.- (twenty million
Chilean pesos).

Participants must contribute at least the remaining 10% in cash during the project
execution.


10. EVALUATION CRITERIA

The applicable evaluation modality will depend on the number of projects that, after an
analysis of pertinence, enter the evaluation phase.

10.1. Modality A

This modality shall be applicable if the number of projects entering the evaluation
phase is equal to or less than 700.

Projects will be evaluated with grades from 1 to 5 (with 1 being the minimum score and
5 the maximum score) and the evaluation criteria are as follows:

Criterion Description Weighting
Participants:
- Demonstrable achievements
- Number of times founding a
start-up
50%

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The Resolution approving the grant agreement will be understood to be totally processed once this circumstance is
communicated to the beneficiary.
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The grant agreement is the legal document between the beneficiary and InnovaChile that regulates the conditions of the delivery
of the grant as well as the obligations and rights of the beneficiary.
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Among others, co-financing instruments of InnovaChile include: Applied R&D Program, Go to Market, Seed Capital, International
Acceleration of Technology Start-Ups Global Connection and Flexible-Use Seed Grant.
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- Background and make-up of
the team
- Communities
- Contact networks
Value of Project:

- Market (25%)
o Target segment
o Market size
o Product testing
o Competitors
- Project (25%)
o Investors
o Mentor
o Global Impact
o Competitive Advantage
50%

10.2. Modality B

This modality will be applicable if the number of projects entering the evaluation phase
is greater than 700.

The decision of the Entrepreneurship Subcommittee
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, or the entity that replaces it
(hereinafter and without distinction Subcommittee) will be reached in two stages, in
which, prior to each of these, an evaluation must be conducted according to the criteria
detailed below:

a) First Evaluation

This will serve as an input for the first decision stage. It will consist of an analysis of the
following criteria, which will be evaluated with scores from 1 to 5 (with 1 being the
minimum score and 5 the maximum):

Criterion Description Weighting
Quality of the team
Skills and background of each of the
participants, with respect to the project
being submitted.
25%
Scalability of the
idea
Understood as the projects global
scalability.
25%
Attractiveness to
investors
Profitable business model.
25%
Resolves a relevant
problem
Shows that there are users for whom
the project resolves an existing
problem.
25%





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The Entrepreneurship Subcommittee is the organism empowered to approve or reject the awarding of funds to the projects.
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b) Second Evaluation

Only those projects that are pre-approved by the Subcommittee in the first decision
phase will pass to the second decision phase; all other projects will be rejected. Prior to
their presentation in the Subcommittee during the second decision stage, the pre-
approved projects will be submitted for a second evaluation. The projects will be
evaluated with scores from 1 to 5 (with one being the minimum score and 5 the
maximum) and the evaluation criteria will be as follows:

CRITERION Description WEIGHTING
Participants
- Demonstrable achievements
- Number of times founding a
start-up
- Background and make-up of
the team
- Communities
- Contact networks
50%
Value of Project
- Market (25%)
o Target segment
o Market size
o Product testing
o Competitors
- Project (25%)
o Investors
o Mentor
o Global Impact
o Competitive Advantage
50%







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SECTION 2: ADMINISTRATIVE REQUIREMENTS


1. GENERAL ASPECTS

The Administrative Requirements, hereinafter and without distinction the requirements,
are intended to regulate the processes and procedures to be observed from the project
application until the end of the grant agreement concluded between InnovaChile and
the beneficiary.

All deadlines specified in these requirements will be understood to be the maximum
limit. If days are referred to, these shall be construed as business days unless
otherwise noted. Non-working days are Saturdays, Sundays and holidays.

The mention by name of certain organisms or operative units of the Committee will be
understood to refer also to any entity that substitutes or replaces that entity in fulfillment
of the respective function.

The Executive Leadership of InnovaChile reserves the right to settle any dispute or
doubt as to the proper meaning and scope, form and timing of application, and any
other interpretive conflict that might arise from the application of these requirements.
The foregoing is without prejudice to the remedies provided in the Law.

Requirements will be available in electronic and downloadable format, on the
websiteswww.corfo.cl and www.startupchile.org/apply.


2. APPLICATION

2.1 Procedure

This line of financing will be made available to interested parties at least once a year in
the form of application to a competition
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.

Communication about the opening of a call for applications will be conducted by means
of a notice published in a nationally circulated newspaper with the following
information: identification of the instrument, its form, date and place where the
requirements will be available, starting day of the call for applications, e-mail for
questions, the means of application and the date and time of the closing of
applications. This information will also be posted on the websites www.corfo.cl and
www.startupchile.org.

InnovaChile may, additionally, communicate the opening of the respective call for
applications in any other communication media that ensures adequate publicity.

2.2 Means of Application

Projects, along with the requested technical and economic documentation, may be
entered solely through the electronic project entry system available on the website
www.startupchile.org/apply.


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InnovaChile shall make the instrument available to interested parties, setting an application initiation date and deadline for the
respective application periods.
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All documents and information requested in the electronic system must be completed
in English. In addition, the accompanying documents must be text documents,
spreadsheets or other files compatible with the system (such as doc, xls, jpg, pdf).

2.3 Limit on applications

Each applicant may only apply with one project per application period. Likewise,
applicants may not apply more than two times with the same project in different
application periods.

For the purposes of application of the latter limitation during the first application period
of the year 2013, with regard to those projects that have been submitted during one or
more application periods for the Program that have been carried out prior to said year,
all prior applications will be understood to be only one application. In this manner, if a
project has already been presented for one or more application periods of the Program,
the first application period of the year 2013 shall be the last opportunity to submit the
project again.

Concerning subsequent application periods to be opened during 2013, the limitation
shall apply with no restriction whatsoever.


3. ANALYSIS OF PERTINENCE OR RELEVANCE

The Entrepreneurship Division will examine the extent of convergence of the project
objective with the guidelines and objectives of the Program, verifying the consideration
of Chile as a platform in order to access global markets, and the scalability of the
project, among other factors. Likewise, compliance with the following requirements will
be verified:
a) The beneficiarys degree of residency in Chile during the entire execution period
of the Project and exclusive dedication to said project.
b) That the projects do not consist of exportation and importation of products,
consulting firms or franchises.
c) Development of the project of less than two years.

As a result of this analysis, InnovaChile will classify, on a justified basis, the relevance
or irrelevance of the projects. If a declaration of "Not Relevant is declared, the project
will not continue in the evaluation process, with this decision communicated to the
applicant within a period not exceeding 10 days, counted from the closing of the
application period.


4. EVALUATION PROCESS

The projects will be evaluated by InnovaChile using the applicable modality,
corresponding to the criteria established in section 10 of the Technical Requirements,
which will be weighted in accordance with the indicators and percentages established
in the same section.

InnovaChile personnel will conduct the evaluation of projects, which will be evaluated
using a methodology that enables the assessment of relevant issues and ensures fair
and equitable treatment during the process, with due safeguarding of confidentiality.
During this process, InnovaChile may engage external consultants in order to conduct
a better analysis of the applications to be evaluated.

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Additionally, during the evaluation process, InnovaChile may request information from
other organisms that form part of the Chilean Government Administration, if pertinent in
terms of the project objectives.

Those projects submitted through the institutions with which InnovaChile maintains a
formal and current agreement under the framework of this Program will be evaluated
by those institutions and pass directly to the decision stage.

As part of the technical evaluation, a duplication analysis will be conducted to
determine competition with other similar initiatives.

During the evaluation process, InnovaChile may request from the applicant additional
information deemed necessary for a proper understanding of the proposals, with
neither the offering nor the principle of equality among applicants being altered. This
information may be required through electronic media, such as e-mail, video
conference or similar applications. InnovaChile should send the documentation to the
e-mail address of the applicant, within a period of 10 days counted from the date of the
corresponding application.


5. DECISION

Depending on the number of projects that, after the analysis of relevance, enter the
evaluation stage, the decision may be made using one of the following modalities:

5.1. Modality A

Once the evaluation is concluded, the project will be presented to the Entrepreneurship
Subcommittee or any entity that replaces it, which will decide, upon recommendation
from the Entrepreneurship Division, upon the projects approval or rejection, with the
ability to set conditions for the award and/or formalization of approved projects. The
deadline for presentation to the Subcommittee may not extend beyond 70 days,
counted from the date of integral receipt of documentation for the application in
conformity with all application requirements.

The Subcommittee may approve the projects with the modifications that it deems
pertinent, as long as the nature and general objective of these is not altered, and with
the power to require technical modifications.

InnovaChile shall inform its sole decision to approve, reject or leave pending the
Project, within the 24 hours following the Subcommittee session sanctioning the
decision.

Within a term of 7 days counted from the date on which the Project is approved or
rejected, InnovaChile shall communicate, in a complete and justified manner, the
decision to the applicant, in conformity with the legal system, with this constituting for
all effects the formal communication. In the case of approval, along with informing
this circumstance, the name and e-mail address of the executive in charge of the
Project shall be indicated or ratified, and it will be requested that the beneficiary
present the documentation specified in the below section 6.

5.2. Modality B

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The decision shall be taken in two stages, with an evaluation in accordance with the
criteria specified in section 10 of the Technical Requirements being conducted prior to
each stage.

5.2.1. First decision stage

Once the first evaluation has been concluded, in accordance with the criteria set forth
in section 10 of the Technical Requirements, the projects shall be presented to the
Entrepreneurship Subcommittee, which shall decide, upon the proposal of the
Entrepreneurship Division, regarding pre-approval or definitive rejection of the
project.

If the decision of the Subcommittee is a definitive rejection, InnovaChile shall
communicate said decision within 7 days counted from the decision date, in a justified
and complete manner, in conformity with the legal system, with this constituting formal
communication for all effects.

5.2.2. Second decision stage

Only those projects that are pre-approved by the Subcommittee in the first decision
stage shall pass on to the second decision stage, for which purpose they shall
previously be submitted to a second evaluation, in accordance with the criteria set forth
in section 10 of the Technical Requirements.

Once the evaluation has been concluded, the Project shall be presented to the
Subcommittee, which shall decide, upon the proposal of the Entrepreneurship Division,
regarding its approval or rejection, with the ability to establish conditions on the
awarding and/ or formalization of the approved projects.

The Subcommittee may approve projects with the modifications that it deems
appropriate, provided that these do not alter the overall objective of these, and with the
ability to demand technical modifications

InnovaChile shall inform the sole decision of having approved, rejected or left pending
the project, within 24 hours following completion of the session of the Subcommittee
that makes the decision.

Within 7 days, from the date of approval or rejection of the project, InnovaChile shall
communicate, in substance and in full, the decision to the applicant, in accordance with
legal jurisdiction, with this constituting the formal communication for all purposes. If
approved, along with reporting that fact, the name and e-mail address of the executive
in charge of the project shall be indicated or confirmed, and it will be requested that the
beneficiary present the documentation specified in the following section 6.

The timeline for presenting projects to the Subcommittee, in the two decision stages,
shall not extend for longer than 70 days, counted from satisfactory receipt of the
application documentation.


6. FORMALIZATION OF THE GRANT AGREEMENT

Upon approval of the project, the grant formalization process begins, which requires
the execution of tasks by both the beneficiary and InnovaChile.

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The formalization process requires that the following legal documentation be attached
by each of the participants designated in the project application:

a) Chilean participants: Simple photocopy of national identification card, on both
sides, and/or a simple photocopy of the page indicating the name, identification
number and dates of granting and expiration of the passport.

b) Foreign participants: Simple photocopies of the page indicating the name,
identification number and dates of granting and expiration of the passport or a
simple photocopy of both sides of the participants Chilean national identification
card for foreigners.

The documents must be sent to the e-mail address from which they are requested,
prior to formalization of the grant agreement.

These documents must be placed at the disposal of the Legal Division of the
Committee, which will proceed to analyze them, with the ability to request, via e-mail,
clarifications and/or additional or complementary documentation.

If the documentation is already in InnovaChile, the beneficiary only must update those
documents that have been modified.

Once in possession of all legal documentation in conformity with requirements, the
grant agreement to be entered into between the beneficiary and InnovaChile shall be
written in Spanish, in which all rights and obligations of the parties will be recorded.

The grant agreement shall be available to the beneficiary for signature, within 7 days
of receipt of legal documentation in conformity with all requirements, along with a
standard grant agreement template in English.

At the moment of formalization, the Entrepreneurship Division shall verify that neither
the beneficiary nor the executors is participating, in any capacity, in another type of co-
financing emanating from InnovaChile, in concordance with what is set forth in section
8 of the Technical Requirements.

Rejection of a Temporary Residence Visa
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will be grounds for not formalizing the grant
agreement.


7. DELIVERY OF GRANT

7.1 Mode of Delivery

Grant funds may be transferred in one or more installments, by means of advance
payment or against the rendering of progress and/or final reports. For this purpose, the
beneficiary must communicate, prior to entering into the grant agreement, the chosen
mode of delivery.

7.1.1. Delivery of grant by way of advance payment

Funds are delivered in advance for the purpose of carrying out project activities,
subject to the submission, if applicable, of the corresponding guarantee documents, in

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The Temporary Residence Visa is the visa that the Participants must obtain before arriving in Chile and for which it is necessary to
present a letter of acceptance to the Program.
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accordance with what is stipulated in the following paragraph. The use of these
resources is subsequently reported by the beneficiary through reports, which may be
approved or rejected.

Prior to expenditure of the grant, or of each installment thereof, as applicable, the
beneficiary must submit, to the satisfaction and in favor of the InnovaChile Committee,
Taxpayer ID#: 60.706.069-K, consistent guarantees, be these in the form of bank
letters of guarantee for immediate execution, time deposits, insurance policies for
immediate execution or Deposit Certificates granted by Mutual Guarantee Institutions
that are re-consolidated by Funds with a risk classification greater than or equal to
BBB+, with the goal of guaranteeing the total amount of pre-paid funds provided by the
grant. The descriptive note on said guarantee instrument, in the case that the nature of
the instrument includes a note, must express that its purpose consists of guaranteeing
the correct use of the grant pre-payment granted by InnovaChile, for the execution of
the project (indicating the name of the project and its code) and be current for at least
25 days after the submission date of the respective progress report and/or final report,
in accordance with the calendar established in the grant agreement. This guarantee will
be returned once InnovaChile approves the respective report and corresponding
reporting of expenses. For the return of the guarantee corresponding to the last or sole
disbursement, as well as approval of the Final Report and corresponding records, total
restitution of the observed sums that are not spent and not charged to the subsidy will
be required.

The guarantee documents listed above may also be granted, in exceptional cases, by
third parties, upon acceptance by InnovaChile, stating in the descriptive note of these,
if appropriate, that they guarantee the beneficiary (who must be specified by name) for
the "proper use of the delivered grant advance payment".

The financial cost of the guarantees mentioned above may be charged to the
Operating Expenses account described in sub-section 9.2 of the Administrative
Requirements.

7.1.2. Delivery of the grant as reimbursement against rendering of progress and/
or final reports.

The Beneficiary uses his or her own resources to perform the activities committed to,
reports those expenses, and InnovaChile reimburses the funds corresponding to
approved expenses. InnovaChile will deliver the respective reimbursements whenever
the beneficiary, subject to approval of the progress and/or final report, requires it, to the
extent that such requirements are technically relevant in implementing the project, a
circumstance that will be classified by InnovaChile. Likewise, reimbursements may not
be made for more than Ch$ 15,000,000.- (Fifteen million Chilean pesos) during the
first 16 weeks of project implementation.

7.2. Conditions for delivery of the grant

The conditions for InnovaChile to deliver the grant shall be as follows:

a) Complete processing of the InnovaChile Resolution that approves the grant
agreement.
b) Delivery by the beneficiary of the guarantee detailed above, in the event that the
grant is delivered as an advance payment (see subsection 7.1.1).
c) Sworn statement by the beneficiary, indicating that the beneficiary is current with
payment of social security and unemployment insurance fees, and has no arrears
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in the state in taxes payable, authorizing InnovaChile to verify this information
(see Appendix).

Once the specified conditions are verified, InnovaChile will deliver the first installment if
the advance payment mode was selected. Delivery of the subsequent installments, if
applicable, will be subject, at least, to fulfillment of the conditions listed in
subparagraphs b), if applicable, and c) above, and to approval of the progress reports
that provide a record of activities undertaken, results obtained and not obtained, and
submission of a rendering of accounts related to the previous installment.

In the case of payment subject to the rendering of reports, in addition to compliance
with conditions b), if applicable, and c), technical approval of the corresponding
progress and/or final report will be necessary.

InnovaChile reserves the right to verify that the technical and legal information declared
is valid and, in the event that any serious inconformity is found, in addition to
suspending the delivery of the grant or early termination of the project, it will, if
applicable, file a criminal complaint against the possible configuration of a crime.

7.3. Suspension of payments and of expenses

Continuity in the delivery of funds shall be subject to the evaluation made by
InnovaChile of the projects progress, to budgetary availability of funds and to
submission of the respective guarantee document, if applicable.

InnovaChile may suspend payments temporarily or permanently if it finds that the
project is not being carried out in a satisfactory manner or that the beneficiary has
failed to fulfill his or her obligations in whole or in part. In these cases, InnovaChile shall
impose the measures it deems appropriate to correct the deficiencies detected, or to
terminate the project early.

Likewise, the beneficiary shall inform InnovaChile and propose the early termination of
the project, if the beneficiary comes to the conclusion that the expected results will not
be achieved; that the project cannot be executed within reasonable parameters, or that
the beneficiary cannot pay the portion of the investment that is his or her responsibility.

Prior to the total processing of the resolution putting an early end to the project,
InnovaChile may order the beneficiary to refrain from making further expenditures from
the delivered grant. In this case, it may accept expenses associated with activities
undertaken up to the date of communication of said order.


8. INCORPORATION OF THE PROJECT IN THE PROJECT MANAGEMENT
SYSTEM

InnovaChile will incorporate the final technical and budgetary planning for the project,
as well as the conditions for granting and/or formalization established by the
Subcommittee, into the Project Management System (PMS) or the system that
replaces it, thus creating the final version of the project for monitoring.


9. PROJECT MONITORING

9.1 Availability and delivery of information

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InnovaChile or its designee may conduct reviews, site visits and require all the
technical and financial information it deems necessary to verify whether the project is
being developed in accordance with the regulations, if the activities described in the
reports correspond to reality, to verify the proper use of grant funds and to determine
participation of the beneficiary and/or executors in the Program activities.

To enable verification of compliance with the objectives, critical results, planned proper
execution, and proper use of grant funds, the beneficiary agrees to deliver to
InnovaChile, or to any other public or private body that InnovaChile indicates, all
documentation required to control the investment of grant funds, pledging to provide
any facilities necessary to ensure the most timely and full implementation of that task,
with the obligation to provide all data, records and reports required, to prove investment
of the grant awarded. The beneficiary must also abide by what is indicated in these
Requirements and in the provisions of the "Guideline for Project Reporting for the Call
for Applications of the" Start-Up Chile " Program.

InnovaChile will have no involvement of any kind in the implementation of activities
associated with the project objective. However, it will deliver assistance to beneficiaries
in the preparation of progress and/or final reports.

The beneficiary is not a dependent of InnovaChile, without prejudice to the power of
monitoring and control of expenditures incurred and charged to the grant.

The beneficiary must respond for damages that occur as a result of carrying out the
activities envisaged in the project, and InnovaChile shall bear no liability of any kind for
any loss that may occur to third parties.

9.2. Accounts Eligible for Financing

Costs associated with development of the project may be included in the following
accounts:

a) Human Resources: Includes the salaries or fees of technical and/or professional
personnel directly associated with project activities, including the entrepreneurial
salary that participants may receive in accordance with what is specified in the
legislation in force, with a ceiling of Ch$450,000.- (four hundred fifty thousand
Chilean pesos) net per month per participant, for their work conducted in Chile.

b) Operating Expenses: This refers to direct spending associated with project
execution, such as: administrative support staff, office leasing costs, national and
international airfare for purposes of activities related to the Program, national and
international airfare to the place of origin of the participants, insurance, issuance
of guarantees, product development, visits to potential clients and / or providers,
activities relating to the promotion and marketing of the product / service,
processing of visas for participants, and internet services.

This account may also include accommodations, and building common expenses
and basic services, which can be financed up to the maximum amount and under
the terms indicated in the "Guidelines of Project Reporting for the Call for
Applications of the "Start-Up Chile" Program
10
.


10
The English version of the document "Guideline of Project Reporting of the Call for Applications of the "Start-Up Chile"
Program
10
.will be available on the website www.startupchile.org.
16

The following expenses are not eligible: personal expenses, for example food,
tips, medicines, airfares for persons not involved in the project, urban transport,
leisure activity expenses or anything else that is not directly related to the Project.

c) Investment Expenses: Refers to the purchase of durable goods (active assets)
necessary for the implementation and achievement of the expected results of the
project.

9.3. Project Expenses

With the funds provided by InnovaChile for the project, the following items are not
eligible for financing:

a) Investments in Capital Markets, such as buying shares, time deposits in domestic
or foreign currency, mutual funds, debts (principal plus interest) or dividends.
b) Taxes recoverable by the beneficiary, taking into account its legal status and
applicable tax rules.
c) Investment in capital goods that, according to the judgment of InnovaChile, are
not crucial to the project.
d) Acquisition of property.
e) Personal expenses, leisure expenses, urban transportation, alcohol, expenses
related to pets or any other item that is not directly related to the project.

If the actual project cost exceeds the total amount budgeted in the awarding of the
grant, it will be the responsibility of the beneficiary to make up the difference generated,
assuming the higher cost that the project may have with respect to what is calculated,
in order to fulfill the goals established in the project.

If the actual project cost, determined in accordance with the account reports approved
by InnovaChile, is less than the awarded budget, the beneficiary must repay the grant
amount exceeding the percentage of co-financing approved by the Subcommittee,
calculated on the basis of actual cost, so that the relationship of the Beneficiary
Contribution remains constant as compared to the Contribution of InnovaChile.

9.4. Account Reporting

For purposes of account reporting, a pecuniary or cash Contribution will be defined as
the expenditure of funds due to project execution. In other words, the use of preexisting
facilities, infrastructure, human resources, etc. of the contributor do not correspond to
this concept.

Expenditures charged to InnovaChile must be reported based on actual costs, at the
price actually paid, duly supported with reliable documents that verify the amount, and
according to the directive of the "Guideline for Project Reporting for the Call for
Applications of the "Start-Up Chile Program.

Expenses incurred in the name of the beneficiary and executors (other participants)
that are designated in the application will be accepted. Costs of a Limited Liability
Individual Company whose owner is the beneficiary, or of a company in which the
beneficiary has a shareholding of at least 30% (thirty percent), will also be accepted,
as long as said company also:
a) Is legally incorporated in Chile, and
b) Does not present initiation of activities related to the project for a period
exceeding 24 months prior to the date of application to the Program.

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These circumstances will be verified by InnovaChile, for which purpose the beneficiary
must submit, within 10 days prior to the first expenditure expected to be paid by the
company or partnership, the following documents:
a) Simple photocopy of the articles of incorporation and amendments thereto.
b) Certificate of good standing issued by the competent authority, which must be no
more than 90 days old on the date of filing.

Notwithstanding the latter, InnovaChile will verify that the amount claimed as a
contribution to the project is consistent with the objectives and activities reported.

9.5. Prepaid Expenses

Expenses incurred in the execution of the project from the date of communication of
the approval decision may be accepted under the terms established in the final
paragraph of subsection 5.2.1 or the fifth paragraph of subsection 5.2.2, as applicable,
of these Administrative Requirements, at the risk of the beneficiary. Therefore, the lack
of formalization of the grant agreement will not result in either compensation or
reimbursement.

9.6. Procedure for Procurement and Contracting

During the execution of the Project, the Beneficiary must follow the following procedure
for acquisitions made in the context of the project:

All procurement for amounts in excess of Ch$3,500,000.- (three million five hundred
thousand Chilean pesos) net must be authorized by InnovaChile. To this end, the
beneficiary shall submit to InnovaChile 3 (three) price estimates from the respective
suppliers.

Regarding the Human Resources account, the procedure applies only to the hiring of
legal persons and individual entrepreneurs.

Such authorization must be requested prior to the procurement or hiring, via e-mail to
the Technical Executive for approval. InnovaChile shall have a term of 4 days to
respond to the request.

If 3 timely price estimates have been made without having sought prior authorization,
InnovaChile will only recognize the price estimate of the lowest value.

InnovaChile will reject the expenditure if the beneficiary has not requested permission
and has not received 3 prior price estimates.

9.7. Monitoring and Reporting

InnovaChile holds the authority to track the activities of the beneficiary, of the other
participants and of third parties hired, without any prior notice. To this end, in the case
of hiring activities with third parties, the power of monitoring and control shall be
recorded in the contracts entered into by the beneficiary with such entities, with the
beneficiary being responsible for breach of its obligations in the event of omission, and
if difficulties arise from it for conducting the monitoring duties detailed above.
Nevertheless, InnovaChile does not assume co-management or co-execution of the
project, with project execution remaining the sole responsibility of the beneficiary.

The beneficiary must comply with the calendar of monitoring meetings provided by his
or her technical executive, and with the delivery of reports (progress and/or final
18

reports) in accordance with the schedule established in the respective grant
agreement. These reports must at least identify the activities executed and results
obtained and not obtained, and account reporting for the period to report shall also be
adjusted to the levels set in the "Guideline for Project Reporting for the Call for
Applications of the" Start-Up Chile Program.

The grant agreement will consider at least the delivery of a final report of activities and
expense reports made within 2 weeks after the expiration date of the term for project
execution.

Notwithstanding the latter and in accordance with the nature of the project, the grant
agreement may provide for the delivery of progress reports, the number and timing of
which will be determined by InnovaChile taking into account the characteristics of the
project, the activities of the latter, the results and InnovaChiles own budget availability.

The number and timing of progress and/or final reports may be modified by
InnovaChile, upon a founded request by the beneficiary, or of its own accord, before
the deadline has passed for said delivery.

InnovaChile may request extraordinary progress reports for the periods determined in
light of monitoring of project activities, with no amendment of the grant agreement
being necessary in this case.

InnovaChile shall approve or provide comments to the progress reports, extraordinary
reports and final reports within a term of 10 days after material reception of these, or
from the date of the on-site review, as applicable.

In response to a request by InnovaChile for documentation, modification or
supplementation of reports, the Beneficiary must comply with such a request within the
3 days following.

InnovaChile will require changes in the expiration date of the guarantee, if applicable, if
the beneficiary submits the report outside the deadline.

Reports that do not contain all the information requested or do not attach all supporting
records that are required for both technical and financial analysis, or that do not attach
a legible copy of these, shall be construed as not filed. InnovaChile shall notify the
beneficiary within a period of 5 days from receipt of the report, establishing a term not
exceeding 5 days from receipt of the notification to submit the report in order.

9.8. Amendments to the Grant Agreement

Modifications to projects that involve a change in the terms of the grant agreement
must be recorded in an amendment instrument to the agreement, which must be
approved by Resolution of InnovaChile.


10. PUBLIC AVAILABILITY OF REPORTS, RELEASE AND TRANSFER OF THE
RESULTS

The information received by InnovaChile through progress and final reports is public,
subject to the exceptions established in the legislation in force.

Notwithstanding the latter, once 1 year have passed since the end of the InnovaChile
Project, the totality of information contained in the progress reports, extraordinary
19

reports and final reports may be made available to the public through the CORFO
Institutional Repository (CIR).


Dissemination and transfer of the results of the project will be conducted in accordance
with what is established in the project.

The beneficiary authorizes CORFO and its Committees, from the moment of project
application, to use and distribute written or audiovisual material relating to the project
and to the other participants in it for dissemination activities.

During project execution, the Beneficiary shall be obliged to the following:

a) To provide information to InnovaChile regarding activities and provide the
necessary facilities for that purpose.
b) To support and actively participate in the events organized by InnovaChile and/or
the program in order to promote the partial and final results of the project.
c) To conduct dissemination and publicity activities and transfer of results in
accordance with what is indicated in the project and with what is required by
InnovaChile.
d) To transfer the results in the manner stipulated in the project.
e) To promote the Program, and InnovaChile, in a manner that makes both
organisms contribution to execution of the project evident.
f) To complete surveys, reports or other information about the interim or final results
of the project when requested by InnovaChile.

Subsequent to the term of participation in the Program, and for a period of 5
(five) years, the Beneficiary undertakes to:

a) Respond to surveys, submit reports and provide any other information about the
intermediate or final results or impacts of the project, when so requested by
InnovaChile.

It is understood that the beneficiary assumes this obligation, with respect to the project
in question, through the mere fact of having applied and obtained funding for its
execution from InnovaChile. This information is relevant to the development of metrics
by InnovaChile, and for the impact assessment of its instruments.


11. INTELLECTUAL AND INDUSTRIAL PROPERTY OF RESULTS

Notwithstanding the provisions of section 10, the results derived from the project and
all information, inventions, technological innovations, procedures, plans and other
documents, shall belong to the beneficiary or the other participants in conformity with
what they have stipulated. Consequently, it will be the responsibility of the beneficiaries
and other participants to protect any eventual creations, patent-eligible inventions or
other proprietary rights over the results of the project in the corresponding registries.


12. SUSPENSION AND TERMINATION OF THE PROJECTS PARTICIPATION IN
THE PROGRAM

12.1 Suspension of a projects participation

20

InnovaChile may suspend the execution of a project ex officio or at the request of the
beneficiary, thereby suspending the term of the agreement, in the event of serious
circumstances of a transitory nature that may prevent its normal execution.

The suspension ex officio shall be adopted on a well-founded basis, upon a hearing
with the beneficiary, and the decision will be properly communicated to the beneficiary.

If the suspension is at the beneficiary's request, the suspension must be based on
circumstances not attributable to him or her, and the beneficiary must attach the
background documentation that warrants it, by means of an e-mail to the technical
executive. InnovaChile will decide the relevance of the request and shall decide,
communicating its decision to the beneficiary within 15 days of the request.
Suspension may be requested only once during the term of the project, and may not
exceed half the time originally approved. Thus, a project with a duration of 24 weeks
may be suspended for up to 12 weeks.

Once suspension has been authorized, InnovaChile will reject any expenditure charged
to the project during this period.

In both cases, the period of suspension shall begin from the moment that InnovaChile
communicates its decision.

12.2. Normal Termination

The project shall be deemed completed once InnovaChile gives its approval to the
Final Report, and the grant agreement shall be deemed completed once the
beneficiary meets all outstanding obligations with respect thereto, including the return
of balances not reported, not implemented or not observed, resulting from the review of
reports.

12.3. Early Termination

Without prejudice to the other grounds for early termination set forth in these
requirements, InnovaChile may adopt such a decision in the following cases, applying
the sanctions detailed below:

12.3.1 Early termination of the project for reasons not attributable to the
beneficiary

InnovaChile may impose an early end to the project on its own initiative or at the
request of the beneficiary in the following situations:
Failure to achieve critical results or continuity milestones established in the
project, for reasons not attributable to the lack of diligence of the beneficiary, duly
qualified by InnovaChile.
Having become convinced that the project will not achieve the expected results,
that it cannot be executed within reasonable parameters, or that the beneficiary
will not be able to pay the amount for which he or she is responsible, for reasons
not attributable to lack of diligence by the beneficiary, duly qualified by
InnovaChile.
Other causes not attributable to the beneficiary's lack of diligence in carrying out
their activities related to the project and/or to the beneficiarys participation in the
Program, duly qualified by InnovaChile.

If requested by the beneficiary and accepted by InnovaChile, it shall be understood that
the project has been finished early, from the date of the request.
21


If effected at the initiative of InnovaChile, the project shall be understood to have
finished early, from the total processing of the resolution that declares it, without
prejudice to what is stipulated in the last paragraph of subsection 7.3 above.

In both cases, the beneficiary must deliver a Final Report of closure, within a
reasonable period to be set out in the Resolution of early termination, which shall not
exceed 30 days from the complete processing of the same. The beneficiary shall
return any balance from the grant that has not been paid, reported or observed in their
possession at the termination date indicated in the respective Resolution, within a
prudential term set by InnovaChile, which shall not exceed the third business day prior
to expiration of the guarantee for advance payments to be in the possession of the
Committee and shall be counted from the date of the requirement to repay the balance.
To calculate the balance to be repaid, the criteria established in the last paragraph of
subsection 9.3 above shall be applied. The Committee shall make use of the
guarantees if the beneficiary fails to make the restitution of funds before the deadline.

In the case that the grant is paid against approval of report (s), InnovaChile will only
transfer resources to pay the cost incurred by InnovaChile the investment of which is
technically and financially accredited, and which have been incurred up to the date of
communication of the early termination.

12.3.2 Early termination of the project by deed or act attributable to the
beneficiary

InnovaChile may put an early end to the project if the beneficiary fails to comply
through negligence or lacks due diligence of his or her obligations. The following
situations may constitute breach of the contract:

Denial or hindrance of project monitoring.
Negligence in performing financial and technical control activities
Failure to notify InnovaChile in a timely manner about the impossibility of paying
the contributions for which they and/or the other participants are responsible.
Serious discrepancy between the declared technical and/or legal information and
real information.
Non-compliance with critical results or continuity milestones established in the
project, for reasons attributable to the lack of diligence by the beneficiary, duly
qualified by InnovaChile.
Having become convinced that the project will not achieve the expected results,
that it cannot be executed within reasonable parameters, or that the beneficiary
will not be able to pay the contribution that is his or her responsibility, for reasons
attributable to a lack of diligence by the beneficiary, duly qualified by InnovaChile.
In the reports of accounts:
o Duplication in the reporting of proof of expenditures.
o Simulation of acts or contracts.
o Valuation of costs above the market value
o False or altered accounting documents (such as invoices, bills, credit or
debit notes)
Other reasons attributable to the beneficiary's lack of diligence in carrying out
their activities related to the project and/or to the beneficiarys participation in the
Program, duly qualified by InnovaChile.

In this case, the recipient must repay the entire grant received, expressed in UF
(Unidades de Fomento a Chilean peso-denominated unit indexed by inflation) on the
22

date for which InnovaChile informed the early termination of the project through a
written notice, and will be converted into national currency on the date of payment. If
the product of this operation is a sum less than the nominal value of the grant given,
the latter must be returned (nominal value). The refund will be made within 15 days of
the notice of early termination to the beneficiary. InnovaChile shall make effective the
guarantee deposit constituted only if the beneficiary does not make restitution within
the agreed-upon deadline.

In the case that the grant is paid against approval of report (s), InnovaChile will reject
all expenditures charged to the grant made by the beneficiary in the context of
execution the project.


13. QUESTIONS OR CONSULTATIONS

Questions may be addressed in English or Spanish to the following e-mail address:
stgo@startupchile.org

Each query shall be answered by the same means, within a maximum of 5 working
days from its receipt.

23

APPENDIX.

SWORN STATEMENT (Natural Person)

(Name of the person signing), identification card No. (number of the identification card
of the person signing), domiciled for these effects in ..................................... comes to
declare under oath the following:

REGARDING THE PAYMENT OF UNEMPLOYMENT INSURANCE FEES

That, in conformity with the stipulations of Law No. 19,728 establishing Unemployment
Insurance, the undersigned is aware of the prohibition for employers who have not paid
the fees for this insurance to receive funds from Public or Private Institutions financed
with Public Funds.

That the undersigned expressly declares that the undersigned will NOT have
workers for whom he or she must pay unemployment insurance fees.
As a consequence of the regulations cited above, the undersigned declares
under oath that he or she is current in payment of fees deriving from
unemployment insurance

REGARDING THE PAYMENT OF SOCIAL SECURITY AND HEALTH INSURANCE
PAYMENTS

The undersigned declares under oath that he or she is current in payment of social
security and health insurance payments.

REGARDING THE NON-DELINQUENCY OF FISCAL DEBT

The undersigned declares under oath that he or she does not possess delinquent fiscal
debt.
Likewise, InnovaChile is authorized to verify the veracity of this information.

Granted in (place) on (date).








_______________________________________

SIGNATURE