Description

THIS MEMBERSHIP IS FOR DRIVERS IN STATES AND PROVINCES WHERE FARE CO-OP IS NOT YET FULLY LICENSED AND OPERATIONAL

As a driver in a market where Fare Co-op is not yet fully licensed and operational, you have 2 options for becoming a member of Fare Co-op:

1. Fractional Membership: FREE, earning you 55% of applicable platform profits after hard costs.

2. Preferred Shareholder Membership: Full ownership through the purchase of a Preferred Share, earning you 85% of applicable platform profits after hard costs.

The current Preferred Share price for states and provinces where Fare Co-op is not yet fully licensed and operational is:

$200 per Preferred Share

This pricing applies to markets where Fare Co-op is working toward launch, licensing, regulatory approval, or future operations.

Once a market becomes fully licensed and operational, the Preferred Share price may increase in accordance with Fare Co-op’s Bylaws and applicable Board-approved policies.

A change in the price of newly issued shares does not change the amount originally paid for an existing share.

Monthly Maintenance

The monthly maintenance fee applies once Fare Co-op is fully licensed and operating in the applicable territory.

In a fully licensed and operating territory, a Preferred Shareholder is required to pay the applicable monthly maintenance fee on their first Preferred Share.

The current maintenance charge is $50 plus applicable processing fees, currently totaling $52.50 per month.

Simply owning additional Preferred Shares does not require an additional monthly maintenance payment for every share.

However, if an additional Preferred Share is assigned to another driver who actively operates on the Fare Co-op platform under that share as part of a fleet, that assigned share requires its own $52.50 monthly maintenance payment.

Maintenance fees help support insurance, technology, platform operations, regulatory compliance, marketing, driver support and continued regional growth.

* Preferred Shareholders are eligible to earn 85% of applicable platform profits after hard costs.

* Fractional Members are eligible to earn 55% of applicable platform profits after hard costs.

Driver Requirements

To qualify as a Fare Co-op driver, the following requirements must be met:

1. Successful completion of Fare Co-op’s required background-screening process. The current background-check fee is $25.

2. Required driver and vehicle documentation must be uploaded to the app, including:

• Valid driver’s license
• Required automobile insurance
• Vehicle registration or license-plate documentation
• Vehicle inspection, where required

3. Driver and vehicle requirements include:

• Driver must generally be at least 21 years old, subject to applicable law and insurance requirements
• Vehicle must generally be no more than 15 years old, subject to stricter state, local, insurance or regulatory requirements
• Vehicle must meet Fare Co-op’s current inspection, condition and applicable mileage requirements

Any locally mandated state, provincial, municipal or other individual driver licensing costs and/or requirements are the sole responsibility of the driver.

How Ride Costs Are Calculated

Each ride consists of hard costs and the applicable platform profits generated from the ride.

Ride Hard Costs

• Insurance, including applicable insurance costs charged based on traveled mileage
• Local and municipal taxes and regulatory charges
• Applicable payment-processing fees
• (Optional) Tolls — where applicable, 100% of which is paid to the driver
• (Optional) Tips — 100% of which is paid to the driver

Applicable Platform Profits

After applicable hard costs, platform profits are shared according to the driver’s membership level:

• Fractional Members: 55%
• Preferred Shareholders: 85%

Ride pricing may include:

• Distance
• Time, including applicable wait time
• Booking Fee
• Cancellation Fee, where applicable
• Minimum Fare or Minimum Fee, where applicable

Preferred Share Purchase & Cancellation Terms

A request to cancel a new Preferred Share purchase may be made within the first three days following purchase, subject to the applicable membership or subscription agreement and applicable law.

After the applicable cancellation period, any redemption, reimbursement, transfer, repurchase or other disposition of a Preferred Share is governed by the Fare Co-op Bylaws, applicable agreements, Board approval requirements and applicable law.

Important: Preferred Shares are not publicly traded. Fare Co-op does not guarantee any dividend, financial return, redemption amount or increase in share value.

Preferred Share ownership, compensation, maintenance requirements, voting rights, distributions, transfers and other rights are governed by the Local Driver Federation Cooperative Bylaws, applicable membership or subscription agreements, Board-approved policies and applicable law.