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www.lyoness.usLYONESS INCOME DISCLOSURE STATEMENT - USThe Lyoness Income Disclosure Statement (IDS) is designed to convey timely and comprehensive information regarding the income LyonessMembers earn.The chart below reflects the percentages of all Members of Lyoness America from January 1, 2012 through December 31, 2012 byillustrating the effective Career Level, the average hours worked per week, the High, Low, and Average annual incomes, as well as the months toachieve the career level.Beginning January 1, 2012 and ending December 31, 2012, forty-six percent (46%) of all U.S. Members received no income at all. During this period,the average income of all Members was $285.72 and the median income was $0.38.During the same period, fifty-four percent (54%) of all Members did receive income. The average annual income for this group was $524.65 and themedian annual income was $6.00.A Member is defined as someone who executed a Member Agreement, and made at least one purchase through the Lyoness LoyaltyMerchant Network.An IBR is a Member who signs up four (4) direct Members that have each made a purchase at any store within the Lyoness Loyalty Merchant Networkwith NO minimum purchase requirement.During 2012, approximately 25% of all Members did not continue with Lyoness after their first year. Out of 29,816 Members who enrolled in the U.S.since the beginning of the year 2012, there were 22,374 Members that were still active at the end of the year.Although the earnings in this chart represent actual Member earnings, the earnings do not necessarily represent the income you will earn(if any). The figures used in these charts are for illustration purposes only and must not be considered or construed as a guarantee, nor do theyimply a guarantee or projection of your actual earnings or profit potential. Your success with Lyoness results from successful sales efforts, hard work,diligence, leadership, and dedication.Note that these figures do not represent an IBR‘s profit, as they do not consider expenses incurred by an IBR in operation or promotion of his/her business.The figures above refer to gross income (total income before any expenses are deducted). The expenses an IBR incurs in the operation of his or herLyoness business vary widely. Expenses for IBRs can be several hundreds or thousands of dollars annually. You should factor in estimated expenseswhen projecting potential profits. Such operating expenses could include advertising and promotional expenses, training, travel, telephone andInternet costs, business equipment, and miscellaneous expenses. Based on a survey conducted by Lyoness in 2012, the average annual expenses anIBR incurs are $1,294.44.* An active Member is a Member who received income in the year 2012.** Shopper(s)/Non-IBR(s) represent(s) Members that are not Independent Business Representative(s) [IBR(s)]Career LevelShopper(s)/Non-IBR(s)** - 86.16% $3,675.00 $12.95 - - -$10.001 12.75 13.03% $22,438.37 $769.66 22 1 2$10.002 16.75 0.46% $28,319.99 $8,611.51 25 2 4$206.853 39.50 0.23% $43,315.00 $20,190.60 22 2 5$1,789.874 48.25 0.08% $58,612.88 $36,580.91 11 2 6$22,953.855 51.25 0.02% $123,036.27 $75,981.40 9 3 7$53,475.666 35.00 0.01% $166,324.82 $135,981.40 12 6 9$80,847.327 43.33 0.01% $368,941.57 $279,976.29 13 10 11$167,505.318 - - - - - - --Average hoursworked perweekPercentage of allMembers2012 Annual Income for active Members *(U.S. Dollars)High Low Average AverageHigh LowMonths to achievethe Career Level
www.lyoness.usLYONESS INCOME DISCLOSURE POLICY - USAt Lyoness, we not only believe in conducting ourselves by best business practices, we are committed to it. As legally required, we arepleased to share the Lyoness Income Disclosure Statement (“IDS”) with you.The IDS is designed to convey truthful, timely, and comprehensive information regarding the “income” Lyoness Members and/orIndependent Business Representatives earn. In order to accomplish this objective, the IDS must be presented to all prospective Membersand/or Independent Business Representatives and posted during every “opportunity” meeting.In addition, the IDS must be presented to a prospective Member (someone who is not party to a current Lyoness Member Agreement) anytime the Compensation Plan is presented or discussed. This includes conversations regarding income claims, earning opportunities, orother representations regarding compensation.The terms “income claim” and/or “earnings representation” (collectively “income claim”) include: (1) statements of average earnings; (2)statements of non-average earnings; (3) statements of earning ranges; (4) income testimonials; (5) lifestyle claims; and (6) hypotheticalclaims. Examples of “statements of non-average earnings” include “Our number one Independent Business Representative earned XXXdollars last year,” or “Our average Career Level XX makes XXX dollars per month.” An example of a “statement of earning ranges” is, “Themonthly income for a Career Level 8 is XXX on the low end and YYY on the high end.”A “lifestyle income claim” typically includes statements (or pictures) involving large homes, luxury cars, exotic vacations, or other itemssuggesting or implying wealth. They also consist of references to the achievement of “one’s dreams,” having “everything one alwaysdreamt of,” and are phrased in terms of “opportunity,” or “possibility,” or “chance.” Claims such as “After six (6) months in the business,my Lyoness income exceeded my salary,” or “Thanks to my Lyoness business, I am now able to spend time with my family,” also fallwithin the purview of “lifestyle” claims.A “hypothetical income claim” exists when you attempt to explain the operation of the Compensation Plan through the use of a hypotheticalexample. Certain assumptions are made regarding some or all of the following: (1) number of Members and/or Independent BusinessRepresentatives recommended; (2) number of lifeline Members; (3) average purchase volume per Member and/or Independent BusinessRepresentative; and/or (4) total organizational volume. Applying these assumptions through the Compensation Plan yields income figureswhich constitute “hypothetical income claims.”In any non-public meeting (e.g. a home meeting, one-on-one, regardless of venue) with a prospective Member and/or IndependentBusiness Representative in which the Compensation Plan is discussed, or any kind of income claim is made, you must provide theprospect(s) with the IDS. In any meeting that is open to the public in which the Compensation Plan is discussed, or any type of incomeclaim is made, you must provide every prospective Member and/or Independent Business Representative with a copy of the IDS. In anymeeting in which any type of video display is utilized, (e.g. monitor, television, projector, smartphone, etc.) a slide of the IDS must bedisplayed prior to any discussion of the Compensation Plan, or making of any income claim.Copies of the IDS may be printed or downloaded without charge from the corporate website at www.lyoness.us/IDS.