This was posted on another board and seems to jive with a few others I have read as to why Kai didn't sign the contract:
Step 1: Kai approaches Muscle Meds, asks for them to pay him $1 million per year instead of the $350k/year he was getting, or he would walk and start his own company.
Step 2: Muscle Meds tells Kai to walk.
Step 3: Kai starts Dynamik and steals MuscleMeds "Beef Protein Blend" that he was the name/face behind, also steals their colors making it hard to determine which is which.
Step 4: Kai decides to build his brand at Olympia weekend, requesting a free booth, no union fee's, because he thought he was special.
Step 5: AMI/IFBB tells Kai he has to pay just like everyone else, just like Heath/Gifted, Kai throws a tantrum, AMI/IFBB calls his bluff, he refuses to sign