K Y Ä N I D R I V E Y O U R D R E A M C A R

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1 K Y Ä N I D R I V E Y O U R D R E A M C A R O F F I C I A L P R O G R A M R U L E S A N D G U I D E L I N E S U S A Kyäni Distributors who meet certain criteria are eligible to participate in the Kyäni Global Car Program and receive reward payments as a Sapphire, Diamond, Green Diamond, Red Diamond, and Black Diamond participant under the following terms and conditions. DOWNPAYMENT 1. Sapphire Level: Upon qualification, a one-time down payment of One Thousand Dollars ($1,000) will be paid to the Distributor upon purchase or lease of an approved vehicle, the preferred model being an Audi A4 or equivalent or higher. The down payment will only be made once after the Distributor meets the qualifications. Should the Distributor elect to lease or purchase a new car and receive a down payment of One Thousand Dollars ($1,000) the Distributor will receive no additional payment that month. The Distributor must be at the minimum qualifying rank in the month that he or she enrolls in the car program. If the Distributor falls out of the Drive Your Dream Car program and requalifies at a later date no additional down payment will be given. i. To be enrolled in the Kyӓni Drive Your Dream Car Program the following criteria must be met. 1. All paperwork is completed and submitted to Kyani (Paperwork includes - Declaration Form, Agreement Form, and Vehicle Lease / Purchase agreement). 2. The Distributor is at the minimum qualifying rank at the time the paperwork is submitted. If the Distributor has dropped below the minimum qualifying rank when all the paperwork is submitted, payments will begin once the Distributor attains the minimum qualifying rank again. If 6 months passes without attaining a qualifying rank again, the Distributor will be removed from the car program per the removal guidelines. 2. Diamond Level: After qualifying for the Diamond level of the Drive Your Dream Car program and purchasing or leasing a new car of an approved vehicle, a one-time down payment of Four Thousand Dollars ($4,000) will be paid to the Distributor. The down payment will only be made 1

2 ACCRUAL once after the Distributor meets the qualifications. Should the Distributor elect to lease or purchase a new car and receive a down payment of $4,000 the Distributor will receive no additional payment that month. The Distributor must be at the minimum qualifying rank in the month that he or she enrolls in the car program. If the Distributor falls out of the Drive Your Dream Car program and requalifies at a later date no additional down payment will be given. If the distributor elects to keep their Sapphire level vehicle no additional down payment will be given; the monthly payment will be increased to $1,200. i. To be enrolled in the Kyӓni Drive Your Dream Car Program the following criteria must be met. 1. All paperwork is completed and submitted to Kyani (Paperwork includes - Declaration Form, Agreement Form, and Vehicle Lease / Purchase agreement). 2. The Distributor is at the minimum qualifying rank at the time the paperwork is submitted. If the Distributor has dropped below the minimum qualifying rank when all the paperwork is submitted, payments will begin once the Distributor attains the minimum qualifying rank again. If 6 months passes without attaining a qualifying rank again, the Distributor will be removed from the car program per the removal guidelines. 1. Sapphire Level Accrual: If the Distributor needs additional funds in excess of the $1,000 to qualify for financing, the Distributor may elect to accrue a monthly amount of $500 per month for a maximum of twenty-four calendar months from the date the Distributor qualified for the Sapphire level program so that the Distributor has a maximum of $13,000 available for a down payment ($500 per month, multiplied by twenty-four months is $12,000, plus the $1,000 down payment). The Distributor must be the minimum qualifying rank in the month that he or she enrolls in the car program. If the Distributor enrolls in the cash option the accrual will be paid out. If the Distributor remains qualified, the Distributor may elect to terminate the accrual at any time in order to lease or purchase a qualifying vehicle during the twenty-four months. If at the end of the twenty-four month period the Distributor is still not able to qualify for the lease or purchase of the car, the Distributor shall receive a cash payment of $7,200 and shall be thereafter enrolled under the cash recipient option of the Sapphire program. Distributor will accrue $500 each month he or she achieves Paid-As-Rank Sapphire or above until opting for a car, the accrual deadline is met, or qualifying for the Diamond level. The accrual amount per month will not change unless the Distributor qualifies for the Diamond level. If Distributor does not reach Paid-As-Rank Sapphire while enrolled in accrual the Distributor will not accrue a payment for each month he or she remains below Paid-As-Rank Sapphire. 2. Diamond Level Accrual: If a Distributor needs more than the $4,000 down payment, they can elect to defer all payments for up to two years and during that time accrue additional funds so long as they remain qualified and eligible to participate in the Program. This will allow the Distributor at the end of the second year to have a maximum of $32,800 for a down payment ($1,200 per month, multiplied by twenty-four months is $28,800, plus the $4,000 down payment). 2

3 No additional accruals beyond two year are allowed. The Distributor may, however, request payment of the accrued amount at any time during the two year period if the Distributor proceeds with a lease or purchase approved by Kyäni. The Distributor must purchase or lease a qualifying car within twenty-five months from the date the Distributor achieves the rank of Diamond in order to be eligible to receive the Diamond level payments. If Distributor fails to do so, then no payments shall be made and Distributor shall be removed from participation in the program. Only one down payment will be given per account even if the Distributor drops out of the Program and requalifies at a later date. Distributor will accrue $1,200 each month he or she achieves Paid-As-Rank Diamond or above until opting for a car or the accrual deadline is met. The accrual amount per month will not change unless the Distributor qualifies for the Green Diamond level at which time the Distributor will be required to opt for a car. If Distributor reaches Paid-As-Rank Sapphire, Ruby, or Emerald while enrolled in the Diamond level accrual the Distributor will accrue at the Sapphire level ($500 per month) for each month he or she remains below Paid-As-Rank Diamond. If the Distributor falls below Paid-As-Rank Sapphire the Distributor will not accrue any payment that month. PROGRAM LEVELS SAPPHIRE In order to be eligible for the payment a Distributor must achieve the Paid-As-Rank of Sapphire and hold the rank for one additional month. Upon meeting this qualification, the Distributor shall be eligible to lease or purchase an approved vehicle, the preferred model being a white Audi A4 or equivalent or higher. Upon qualification for the Sapphire program, the Distributor must submit the approved Distributor Declaration Form to Kyӓni specifying if the Distributor elects to purchase or lease a car, or take the cash or accrual option. After submitting the Distributor Declaration Form if the Distributor elects to purchase or lease a car, the Distributor shall also submit to Kyäni the documentation for the proposed purchase or lease for approval by the company. The Distributor will then receive a Distributor Car Program Agreement from Kyäni that must be executed. The Distributor will automatically be placed on accrual until the paperwork is received either choosing cash or the car option. Upon the qualification and approval of the car, and the receipt by Kyäni of the signed Distributor Car Program Agreement, Kyäni will pay $1,000 toward the down payment, as well as monthly payments in the amount of $500 for the first three months thereafter. If after the first three months the Distributor drops below the rank of Sapphire, then no payment is due the following month. Only one down payment will be given per account even if the Distributor drops out of the Program and requalifies. If the Distributor is qualified to receive the Sapphire car payment, and instead elects to take a cash payment in place of the car payment, the Distributor shall receive the reduced sum of $300 per month for each month in which the Distributor is eligible to receive such payment as set forth above. DIAMOND In order to achieve the Diamond payment a Distributor must achieve the Paid-As-Rank of Diamond for three out of five consecutive months. Upon meeting this qualification, the Distributor shall submit to Kyäni the proposed make, model and year of the car to be purchased or leased for approval by the company, if the distributor elects to purchase or lease a new vehicle. Upon approval, and upon 3

4 execution and receipt by Kyäni of the Distributor Car Program Agreement, Kyäni will pay the Distributor $4,000 to be used toward a down payment on the car. Distributor will receive monthly payments in the amount of $1,200 for the first three months thereafter unless the down payment is elected during one of those months. Beginning in month four, the payment shall be based on the Distributor Paid-As-Rank for the prior month, and shall be paid as follows: Diamond $1,200 Emerald $900 Ruby $700 Sapphire $500 GREEN DIAMOND In order to achieve the Green Diamond payment, a Distributor must achieve the Paid-As-Rank of Green Diamond for three out of five consecutive months. Upon meeting this qualification and having an executed Car Program Agreement, Kyäni shall pay the following based on the Distributor Paid-As-Rank for the prior month, as follows: Green Diamond $2,500 Blue Diamond $1,800 Diamond $1,200 Emerald $900 Ruby $700 Sapphire $500 RED DIAMOND In order to achieve the Red Diamond payment, a Distributor must achieve the Paid-As-Rank of Red Diamond for three out of five consecutive months. Upon meeting this qualification and having an executed Car Program Agreement, Kyäni shall pay the following based on the Distributor Paid-As-Rank for the prior month, as follows: Red Diamond $5,000 Purple Diamond $3,500 Green Diamond $2,500 Blue Diamond $1,800 Diamond $1,200 Emerald $900 Ruby $700 4

5 Sapphire $500 BLACK DIAMOND In order to achieve the Black Diamond payment, a Distributor must achieve the Paid-As-Rank of Black Diamond for three out of five consecutive months. Upon meeting this qualification and having an executed Car Program Agreement, Kyäni shall pay the following based on the Distributor Paid-As-Rank for the prior month, as follows: Black Diamond $10,000 Double Red Diamond $7,500 Red Diamond $5000 Purple Diamond $3,500 Green Diamond $2,500 Blue Diamond $1,800 Diamond $1,200 Emerald $900 Ruby $700 Sapphire $500 Additional Program Terms and Conditions: 1. General Guidelines and Eligibility: In order to participate in the Program, a Distributor must be an active Distributor in good standing with Kyäni, and must have a minimum personal volume each month of 100QV. A Distributor may only receive payments under one level at a time, as rewards under the Program are not cumulative. Therefore advancement to a higher level by a Distributor terminates all future payments due under the Distributor s prior level. 2. Market Limitation: The Distributor must reside in the Kyani USA/Canada Market in order to qualify for participation in the Drive Your Dream Car Program. The Distributor needs to have a physical address in the USA/Canada Market and conduct the majority of their Kyani business inside the USA/Canada Market. 3. Meeting Attendance: In order to maintain eligibility to participate in the Kyäni Drive Your Dream Car Program, a Distributor must purchase an admission ticket and attend either one officially sponsored Kyӓni convention or leadership conference within each calendar year. Failure to do so is a breach of the terms and conditions of the Drive Your Dream Car Program, will result in termination of the Distributor s Car Program Agreement. 4. Social Media Requirements: Distributor shall be required to have a Facebook account, to like the official Kyäni page, and to post on the Distributor s Facebook page an announcement of the award of the car with an accompanying photo of the Distributor and the car. 5

6 5. Video, Photo, and Testimonial: Within thirty (30) days of Kyäni s sending the Media Kit, the Distributor shall submit to Kyäni a video and photo including the Distributor and the Distributor s car displaying the Kyäni decals. The Distributor shall also submit a written testimonial about any positive aspect of his or her Kyäni experience. The Distributor shall submit no video or photos without Kyäni Decals on the car. Kyäni may utilize this video in its marketing strategies as it determines in its sole and absolute discretion. In addition, Distributor shall post the video to the Distributor s Facebook account and to Distributor s dedicated You Tube channel, or to such other media platform utilized by Distributor that is capable of uploading, posting and sharing video content. Should the Distributor fail to provide these items within the thirty (30) days Distributor will be deemed to be out of compliance and payments forfeit during such period of non-compliance. Upon submission of the video, photo, and testimonial, Distributor will be deemed to have cured the non-compliance and payments will resume. No payment during any period of non-compliance will be paid after Distributor has cured the non-compliance. 6. Qualifying Vehicles: All cars eligible for payments under the Drive Your Dream Car Program must be less than five years of age which shall be measured by the model year. For example, a car purchased that is a 2013 model must be replaced no later than the end of the 2017 model year. Any car that exceeds five model years in age will cause the Distributor to be disqualified from receiving any payments under this program during the period of time such Distributor does not have a car that meets the conditions of this paragraph. All qualifying cars must be white unless otherwise approved in writing by Kyäni. 7. No Payment of Mid Tier Ranks Unless Rank Decreases: Payments set forth above for the ranks of Emerald, Ruby, Blue Diamond, Purple Diamond, and Double Red Diamond shall only be paid in the unfortunate event that the Distributor has lost a higher rank once achieved. There shall be no payment at these ranks when the Distributor achieves such rank for the first time. For example, a Distributor who achieves Blue Diamond is still only eligible for the payment at the Diamond level of the Program, and will only be paid at the Blue Diamond amount after qualifying for the Green Diamond level of the Program and then falling from Green Diamond to Blue Diamond. If the Distributor falls below the minimum required rank of his or her current level for six consecutive months then the Distributor will be removed from the current level and placed in the level their current rank dictates. For example, if a Distributor is qualified for the Green Diamond level and falls to the rank of Emerald for six consecutive months he or she would be removed from the Green Diamond level and placed in the Sapphire level. 8. Approval of Car and Right of Inspection: Beginning with the Diamond level, Distributor shall submit the make, model and year of the car that Distributor desires to lease or purchase to Kyäni for review and approval as well as a copy of all lease or purchase documents for the car. Kyäni must approve the car prior to any payments being made to Distributor, and Kyäni reserves the right to approve or disapprove any requested car in its sole and absolute discretion. If Distributor sells the car, surrenders it to a leasing company, or otherwise gives up possession of the car in any way, any car that the Distributor obtains to replace it shall also be approved by Kyäni. Kyäni shall also have the right at any time to inspect the car to ensure compliance with the terms and conditions of this Program. 6

7 9. Car Identification and Decals: Distributor agrees to place such decals, signage, or other markings on the car as Kyäni may require from time to time. Distributor shall, upon request, provide verification and proof to Kyäni that the decals, signage or other markings have been correctly installed on the car. Kyäni shall provide the initial decals, signage or other markings within the Media Kit. Any subsequent replacement of the decals, signage, or other markings on the car shall be at the sole expense of the Distributor. 10. Use of Car: Distributor shall utilize the car for the primary purpose of building and conducting Distributor s business as an authorized Kyäni distributor. Distributor shall not utilize the car for any other business purpose, or to conduct any business for any company which offers products that directly compete with Kyäni products. 11. Car Insurance, License, Registration, Tax and Maintenance: Distributor shall be solely responsible for all car insurance, licensing, registration, mileage penalties and maintenance costs for the car as may be required by any applicable lease agreement or purchase contract in the jurisdiction where Distributor resides or conducts business. Distributor shall keep the car in good repair and condition, and shall ensure that the car maintains a positive image for the Distributor and for Kyäni. 12. Tax Liability: Distributor shall be solely responsible for all income tax, property tax, sales tax, use tax, and all other taxes or assessments related to the Distributor s participations in the Program and the payments made by Kyäni to Distributor for the car. 13. Personal Release for Marketing Purposes: Distributor grants to Kyäni the unrestricted right to use Distributor s name, likeness, photograph or other information regarding Distributor for the purposes of marketing Kyäni products and the Kyäni business opportunity. 14. Conduct of Distributor: During the term of this Agreement and while utilizing the car, Distributor shall comply with all Kyäni Policies and Procedures, shall support the programs, activities and philosophies of Kyäni, shall operate the car in a prudent and safe manner, and shall not use the car in any illegal activity. 15. Indemnification by Distributor: Distributor agrees to indemnify and hold Kyäni harmless for any claim or cause of action related to Distributor s leasehold or ownership interest in the car, or Distributor s operation of the car, that arises during the term of this Agreement. 16. Paid as Rank: All Rank requirements for this Program are based upon paid as rank measured at the end of each calendar month. 17. Kyäni s Right to Terminate Payments: Kyäni may terminate payments to the Distributor at its option upon the occurrence of any of the following: a. If Distributor fails to comply with any terms and conditions of the Drive Your Dream Car Car Program; b. If Distributor falls below the rank of Diamond for six consecutive months the Distributor will be removed from the Diamond Level and enrolled in the Sapphire Level. If the Distributor falls below the rank of Sapphire for six consecutive months Kyӓni may terminate the Agreement in its entirety. 7

8 c. Distributor actively engages as an independent agent, marketer, consultant or employee for another network marketing or direct selling company; d. If the Distributor fails to purchase an admission ticket to and attend one officially Kyӓni sponsored leadership training or meeting within each calendar year; e. Distributor violates the Distributor Agreement, Car Program Agreement, or any of the Kyäni Policies and Procedures as they currently exist or may hereafter be amended by the company. 18. Currency: All payments made under this Program shall be made in United States currency or the local equivalent. Kyäni assumes no responsibility or liability for any increased cost incurred by Distributor which is a result of a change in the exchange rate between the United States Dollar and the currency to be paid by the Distributor under any car lease or purchase agreement. 19. Amendment and Modification: Kyäni reserves the right to make such changes and modifications to this program as it deems appropriate in its sole and absolute discretion. 20. Additional Documents: Distributor shall execute any and all documents required by Kyäni from time to time to comply with the Drive Your Dream Car Program. 8