K Y Ä N I C A R E L O Y A L T Y B O N U S

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1 K Y Ä N I C A R E L O Y A L T Y B O N U S INTRODUCTION We are proud to announce Kyäni Care, an industry-first loyalty bonus program designed to reward Kyäni Distributors for their loyalty to the company. Upon enrollment as a Kyäni Independent Distributor, a Kyäni Care account is created and opened for you automatically. You may view this account at any time in your BackOffice. Kyäni products will be assigned a volume amount depending on the product and the market, called Kyäni Volume or KV. Your KV will accrue in your account based on your purchases, and your rank in the sponsor tree. When you meet all of the terms and conditions of the Kyäni Care program, you may elect to convert the accrued KV volume and begin receiving payouts. Kyäni will do all the administration and tracking for the program while you focus on building your Kyäni Business. The longer you participate, and the more you build your business, the more your loyalty will be rewarded. OVERVIEW Distributors will accumulate KV based on the orders they make and the orders made in their organization. Each time a Distributor or a Personal Customer makes an order the Distributor will receive 15% of the KV on the order. In addition Distributors may receive a percentage of the KV from their downline based on their rank, and the rank of other Distributors in between as shown in the chart below. 1

2 Red Diamond and Above Purple Diamond Green Diamond Blue Diamond Diamond Emerald Ruby Sapphire Pearl Jade Garnet Purchaser Kyani_Care EN-ALL 15% 10% 8% 8% 8% 10% 10% 10% 5% 3% 2% 1% Example: KV is distributed starting at the bottom of this chart towards the top. Upline Blue Diamond Diamond Garnet The remaining 6% would be paid to the Distributors in the upline. A Blue Diamond is Eligible for 69% of the KV. However, 10% was given to the Garnet, 16% was given to the Pearl, and 38% was given to the Diamond which leaves 5% for the Blue Diamond (69%-38%-16%- 10%=5%) A Diamond is eligible for 64% of the KV. However, 10% was given to the Garnet below and 16% was given to the Pearl below and so receive 30% of the KV. (64%-16%-10%=38%) A Garnet is eligible for 10% of the KV. However, we have already used the 10% for Garnet and so this Distributor does not receive KV. Pearl A Pearl is eligible for the 26% of the KV However, the Garnet received 10% of the KV leaving 16% of the KV for the Pearl (26%-10%=16%). Garnet A Garnet is eligible for 10% of the KV on the order. Purchaser The Distributor that purchases the product receives 15% of the KV. If the order is a Customer Order the 15% KV goes to the Sponsor. As an added bonus, every January, Kyäni will give all Distributors in good standing an additional ten percent bonus increase on their accrued Kyäni Care KV balance. 2

3 With the launch of Kyäni Care Distributors began to accumulate KV in their Kyäni Care accounts. New distributors will be given an account when they sign their Distributor Agreement and the agreement is accepted by Kyäni. A distributor in good standing will have the option exercise their Kyäni Care account after five years accrual subject to the conditions outlined below. A distributor also has the option to accumulate more KV before electing to receive their KV balance. Payouts will be calculated based upon the amount of KV the Distributor has accumulated. Once a Distributor elects to begin receiving payments from their Kyäni Care account each 100KV will be converted to USD$1.00. The total dollars calculated at the election date will be will be paid to the Distributor in sixty equal monthly installments. Payments made in the Kyäni Care program will be made once a month on a day set by Kyäni. If the date of payment has passed when Kyäni receives the Election Form, the Distributor will need to wait until the following month to receive their first payment in the following month. PROGRAM TERMS AND CONDITIONS 1. Definitions: For purposes of the Kyäni Care program, the following terms and definitions shall apply: a. General Eligibility Requirements: For purposes of this program, an eligible Distributor must have been an active Distributor for at least five consecutive years. In addition, a Distributor who is an individual must be at least 60 years of age. A Business Entity who is a Distributor, must designate a Key Contact who is at least sixty years of age. b. Consecutive Years shall mean years running one after another without interruption. c. Program Year shall mean the calendar year, with the first Program Year beginning January 1, d. Commencement Date shall mean the date on which the Distributor enrolls as a Kyäni Independent Distributor. e. Distributor in Good Standing shall mean a Distributor who has had account activity of at least 100QV for a minimum of nine months each year from their Commencement Date. Any Distributor that was a Distributor before the program began shall have the Commencement Date of January 1, 2014 for purposes of this Program. In addition, a Distributor must have no violations of the Kyäni Distributor Agreement and the Kyäni Policies and Procedures to be deemed in good standing. f. Program shall mean the Kyäni Care Loyalty Bonus Program. g. Business Entity shall mean a Kyäni Distributor that is an organization officially formed, or is otherwise recognized as a business in the jurisdiction of its origin. These could include but are not limited to a Limited Liability Company (LLC) 3

4 Limited Company (LC), Limited Liability Partnership (LLP), Limited Partnership (LP), Corporation, Company Limited by Shares, or Business Trust. h. Key Contact shall be defined as an officer, director, or owner of a Business Entity and who is designated by the Business Entity in order for the Business Entity Distributor to participate in the program. The Key Contact shall meet the age requirement of the General Eligibility Requirements set forth above. The minimum five-year requirement and the good standing requirement shall be determined based upon the Business Entity. i. KV shall mean Kyäni Volume that accrues on certain products as defined by Kyäni from time to time in its sole and absolute discretion. Distributors shall receive 15% KV for personal purchases as well as their customers purchases. In addition, Distributors shall receive KV on a percentage of their downline sales and paid as rank as illustrated above. j. Conversion Rate shall mean the rate at which KV is converted to a payable currency upon the date the Distributor elects to begin withdrawing the Distributor s KV balance. When a Distributor elects for a payout of the Kyäni Care program, each 100KV in their account shall convert to USD $ Annual Bonus Addition: As a thank you for continued loyalty, Kyäni will increase the accrued KV amount in all Qualified Distributors in good standing accounts by ten percent during the month of January each year. 3. Non-transferability: The Kyäni Care account is unique to each Distributor, and may not be sold, assigned or otherwise transferred. In the event that a Distributorship is sold or otherwise transferred to a new owner the KV balance is forfeit and is removed from the account. The Distributor will begin with a new, separate Kyäni Care account as of the date of the sale or transfer with zero KV balance. 4. Business Entity Key Contact: If a Distributor operates as an organized business entity, then the Entity shall designate one individual who is an officer, director, shareholder or owner of such entity that is the designated Kyäni Care Key Contact. The Key Contact shall be the person who must meet the age eligibility requirement of the General Eligibility Requirements in order for the Distributor to receive the KV payments. There can be only one Key Person designated, and such designation can only occur one time for the Distributor operating as a Business Entity. If the Key Contact during his or her life ceases to be involved with the Business Entity in any way, the Business Entity will forfeit the opportunity to participate in the Program and its KV balance will be reduced to zero. Upon the death of the Key Contact, if the Business Entity is eligible to begin receiving payments under the terms and conditions of the Program, the KV balance will be converted and paid out to the Business Entity over sixty equal monthly installments. The Key Contact may not be changed without the prior written consent of Kyäni, which may be granted or withheld in Kyäni s sole and absolute discretion. 4

5 5. Disciplinary Action: If a Distributor is subject to disciplinary action by Kyäni for a violation of the Distributor Agreement or the Kyäni Policies and Procedures, Kyäni shall determine if the accumulated KV shall remain. If a suspension is issued against a Distributor that is subsequently removed, the Distributor shall continue as though no violation took place for purposes of this program. 6. No Right to Accrued Value until Election: The Kyäni Care Program has no cash value until the Distributor expressly elects for a payout of their KV account and meets all eligibility requirements. Should the Distributor become disqualified, for any reason, before electing to receive payments from the program, the Distributor must re-qualify to enroll. For example, if a Distributor is eligible for the Program, but then does not maintain the volume requirements for one year, any KV that is accumulated prior to that year of inactivity is lost. An additional continuous five years of distributing in good standing is required before the distributor will be eligible for the bonus program. If a Distributor has no personal activity for twelve (12) consecutive months, their entire accumulated KV is eliminated. 7. Death of Distributor Who is an Individual: If the Distributor is an individual and is eligible to receive Kyäni Care payments at the date of the Distributor s death, the Distributor s duly appointed personal representative of his or her estate may exercise the Distributor s right to receive the payments under the program as though the Distributor were still alive at the date of election, meaning payment in sixty monthly payments of the applicable balance. If the Distributor had already elected to receive payments and was receiving the same at the date of death, the remaining monthly payments shall continue to be paid to the Distributor s estate, or his or her designated heirs, until the balance is paid in full. Kyäni reserves the right to review each of these cases and make a determination of eligibility, of the appropriate designation of the heirs or estate, and the option of an alternate payout method. No heir may take the place of the deceased Distributor in accumulating KV in the Kyäni care account. 8. Notification of Election to Receive Payout: In order to elect into the Kyäni Care Program, an eligible distributor must send to Kyäni the appropriate Election Form. This may be sent via , Fax, or regular mail. 9. Payment Commencement and Date: Payments to the Distributor shall start the month following Kyäni s receipt of Distributor s application of election. Election Forms must be received by Kyäni on or before the 20th of the month to receive payment the following month. 10. Payout Duration: The full amount owed to the eligible Distributor (as set forth above in sections 1.f. and 1.g] shall be divided into 60 equal payments to be sent over period of sixty consecutive months. 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 to the Distributor. The minimum amount for which Kyäni will issue a bank check or draft in US currency is ten U.S. 5

6 dollars ($10). If a Distributor s monthly payment does not equal or exceed ten U.S. dollars ($10), the Company will accrue the payments until they total ten U.S. dollars ($10). A payment will be issued once ten U.S. dollars ($10) has accrued. Payment policies for other currencies will follow the policies established in the Policies & Procedures applicable for that specific country specifically in the Bonuses and Commission Qualification Section. 11. Re-enrollment: After a Distributor elects to receive a payout of their Kyäni Care account, their account will be paid out to zero KV. The account will accumulate new KV from the election date forward, but the Distributor shall not be able to elect for another payout until they have received all 60 payments of the previous election. 12. Limit to One Distributor Position: A Distributor may only participate in Kyäni Care in one position, even if such Distributor owns or controls, directly or indirectly, more than one position. If a Distributor owns or controls more than a single position, the Distributor must select which position the Distributor will participate through and notify Kyäni of the Distributor s choice. 13. Right to Amend Terms and Conditions Reserved: Kyäni reserves the right to modify the Kyäni Care Loyalty Bonus Program at any time and for any reason in its sole and absolute discretion. 14. Korea Distributors Not Eligible: Distributors enrolled in the Republic of Korea are not eligible to participate in Kyäni Care. 15. Right to Terminate Payments: Kyäni may terminate payments to a Distributor at its option upon the occurrence of the following: a. Distributor violates the Distributor Agreement or any of the Kyäni Policies and Procedures or Terms and Conditions as they currently exist or may hereafter be amended by the company; b. Distributor participates as a distributor, contractor, employee, agent, officer, director, shareholder, partner, member, affiliate or representative of any direct sales or network marketing company that offers products that compete with Kyäni. 6