Sales & Marketing Plan Modular Training

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Education & Training, E&A

Our history

Herbalife Nutrition was built upon the vision of its Founder and First Distributor Mark Hughes (1956 – 2000) to bring good nutrition and an unrivaled business opportunity to people around the world.

We are a global leader in nutrition with over 40 years of experience in developing best-in-class meal replacement shakes and dietary supplements. We are also one of the world’s leading direct-sales brands with network of Independent Distributors that spans across the globe.

Mark Hughes Story

Company History

To explore more about Herbalife please visit: https://www.herbalife.com/

Volume Points

A Volume Point value is assigned to each Inner and Outer Nutrition product to ensure that equal recognition is given for equal sales effort, regardless of the difference in retail price or local currency.

As a Distributor accumulates Volume Points, their discount can increase up to a maximum 50% discount on the *Earn Base of each product.

Wholesale Profit (Split Commission)

Retail Profit

Royalty Overrides

Higher discounts can potentially result in higher Retail Profits, when selling products to Customers.

Potential Income & Incentives

Production Bonus

Vacations

*Earn Base Value: The value assigned to a product, in local currency, on which discounts and earnings are calculated.

Annual Mark Hughes Bonus

Promotions

Volume Points & Discount

ITEM

VOLUME POINTS VOLUME POINTS

DISCOUNT

ITEM

INNER NUTRITION PRODUCT (Formula 1 shakes, tablets, etc.)

YES

OUTER NUTRITION PRODUCT (SKIN, Herbal Aloe, etc.)

YES

PROMOTE & HERBALIFE NUTRITION APPAREL (Shaker cups, Buttons, Shirts, etc.)

YES

LITERATURE (Product Catalog, Training Videos, etc.) *Includes non-inventory items such as Event Tickets, BizWorks subscription and Annual Distributor Services Fee

INTERNATIONAL BUSINESS PACK (IBP)/PREFERRED MEMBER PACK (PMP) (Considered Literature)

Monthly business

Month-to-Month Herbalife operates on a Month-to-Month basis.

Volume Month or Order Month Period of time where Members can place orders/business in order month qualification. End of Month (EOM) The last day of the month to place an order to count towards the current month’s volume.

Dual Month End When the last day of the month falls on a weekend or holiday, there may be an extension to the order month to the 1, 2, 3rd of the following month. Volume may be applied to the previous order month or current.

Member’s Hierarchy - overview

TAB Team Top Achievers Business Team

Production Bonus

Royalty Overrides

President’s Team

Wholesale Profit

Millionaire Team

Global Expansion Team (GET)

Discount & Retail Profit

World Team

Supervisor

Millionaire Team 7,500 †

Qualified Producer *

Success Builder*

GET 2,500 †

Senior Consultant*

Active World Team †

Member

Active Supervisor †

*It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as a Supervisor. † Active Supervisor, Active World Team, GET 2,500 and Millionaire Team 7,500 are recognition levels, not earnings levels in the Sales & Marketing Plan Active Supervisor Promotion Reference Materials

Member’s Hierarchy - overview

Founder’s Circle

Chairman’s Club

90 K President’s Team

10 Diamonds President’s Team

80 K President’s Team

70 K President’s Team

60 K President’s Team

50 K President’s Team

40 K President’s Team

30 K President’s Team

20 K President’s Team

15 K President’s Team

President’s Team

5-9 Diamonds President’s Team

1-4 Diamonds President’s Team

Steps to success

1 Million Lifetime Achievement Award 1 Million Volume Points achieved

Anniversary Awards Contributions and longevity with Herbalife

2 Million Lifetime Achievement Award 3 Million Volume Points achieved

3 Million Lifetime Achievement Award 3 Million Volume Points achieved

4 Million Lifetime Achievement Award 4 Million Volume Points achieved

5 Million Lifetime Achievement Award 5 Million Volume Points achieved

Our Sales & Marketing Plan Through the Years

The incredible Herbalife Marketing Plan, created by Mark Hughes over 40 years ago, is still the best opportunity for the average person to be a success! Along the way several very exciting enhancements have been implemented to keep our plan the best. These enhancements included: • Establishment of TAB Team (GET, Millionaire and President’s Teams, Chairman’s Club and Founder’s Circle) • Creation of the Production Bonus (2%, 4%, 6%) • Establishment of the 20K, 30K, 50K Production Bonus to 7% (61/2%, 63/4%, 7%) • Royalty roll-ups to payout full 15% R/O • 4K Supervisor Requalification • Additional method to qualify World Team: 2500 VP in 4 months • Qualified Producer • Simplified Member Discount Scale, and much more…. • November 2023 - MPH (Marketing Plan Harmonization) - improve the ability for Distributors to progress in the Marketing Plan between Preferred Customer markets and Non-Preferred Customer markets.

Members

Herbalife Member Pack (HMP)

Pre-printed Herbalife ID Number

To become a Member, you must purchase a Herbalife Member Pack (approx. ₤40) * . The pack includes F1 shake (Vanilla), Shaker, Measuring Scoop, Literature, Promotional Items and the Application Form to sign up.

New Members may apply online via MyHL ^ . Existing Herbalife Sponsor’s Name and ID number are required to apply online. Once all steps have been completed online, the New Member will be created in our internal system.

* N/A in Turkey and India .

^ Online Application is not available in all countries currently, list HERE .

Herbalife Sponsor’s ID Number

Annual Membership Services Fee (AMSF)

All Members are charged an Annual Membership Services Fee (AMSF)*

The Fee is taken for Herbalife computer processing and services like maintaining discount rates, lineage records and qualification status.

• It must be received from a specific Member and may not be paid by any other Member • Members are notified via e-mail and notifications on MyHerbalife of the deadline for payment 60 days prior to their fees becoming due • Members will have a 90-day grace period post anniversary date • If the Fee has not been paid after grace period, the Membership will become expired, and Member will be placed in Deleted Status and all lineage will be moved to the next upline Sponsor. • Members deleted for non- renewal with more than one year of AMSF due will only be required to pay one year’s AMSF to become reinstated. By paying one year’s fee, all past due fees will be waived and brought current, giving them no less than one full year before their next AMSF is due. • Members are reinstated at their current level and discount (i.e., Qualified Producers are reinstated at the QP level with a 42% discount).

Non-Supervisor

= £7.47 (€10.98) (SKU 9909) = £53.89 (€79.30) (SKU 0909)

AMSF Q&A HERE

Supervisor

*Note: The following countries do not have an Annual Distributorship Services Fee: Korea, Uzbekistan, Vietnam, Turkey, and China.

Preferred Customer

Preferred Customer Programme in E&A

Preferred Customer in a nutshell:

• Herbalife Nutrition’s Customer - uses products for a personal consumption at a discounted price • Must purchase a Herbalife Preferred Customer Pack (PC Pack) This is a Digital Welcome Pack in most countries and a physical pack for France, including some products. • Must submit a Preferred Member or Conversion Application • Purchases at a discount of 15%, 25%, 35% (25%,35%,42% in Italy) • Cannot retail or recruit In the countries with the Referral Programme in place, an existing PC may refer a friend/family to become a PC. • Free Shipping for online orders over 40 Points (over 100 Points for TU and N/A for IT) • Order in different country for product consumed in that country If that country has a PCX Programme. • End consumer

PCX around the world: E&A: Italy, Turkey, Romania, Germany, Austria, France, Belgium, Poland, Portugal, South Africa, Switzerland, UK, Czech Republic, Norway, Ireland; Ukraine, Israel

RSM: Russia, Belarus, Kazakhstan, Mongolia

Other regions: Brazil, Colombia, Chile, Peru, India, USA/PR, Mexico, Hong Kong, Ecuador, Costa Rica, Guatemala, Panama, Argentina, Honduras, El Salvador, Japan, Philippines, Thailand, Taiwan Upcoming launches in E&A: SK, NL, DK, SE, GR, IS, SP, LS, BW, NA, ZM.

• 30-day money back guarantee • 90-day full refund for Member Kit (N/A for Turkey)

E&A PC Programme, PC Referral Programme, FAQ HERE

Note: The materials shared are for internal reference only.

Reference Materials available via WW SharePoint

Preferred Customer sign-up process

A Member can send to a prospective Preferred Customer the invite and the link to the OLC sign-up page.

The Prospect needs to follow the sign up steps. Note: A Prospect must be 18 years old to apply.

New Preferred Customer receives the Membership ID and is ready to login to MyHerbalife.com and order products

My Herbalife Experience for Preferred Customers

My Herbalife.com

Track My Points

Welcome Journey, Newsletter, Emails

• Track accumulated Points and Progress towards next level • Review Current and Next level Benefits and Qualification requirements

• Simple Ordering - Shop by Goal • Black-navigation menu and content targeted for a PC • 500 PPV Alert per month (Italy: 530)

• Preferred Customer receive further communication and tips from Herbalife Nutrition regarding promotions and special rewards

Customer, Preferred Customer and Member Differences

Preferred Customer

Member

Customer

•

Herbalife’s Customer

•

Herbalife’s Customer

•

Member’s Customer (purchases from Member) No need to purchase a Herbalife Member Pack (HMP) No Membership Application & Agreement

•

Depending on a country, must or may not purchase a Herbalife Preferred Customer Pack (PC Pack) Must Submit Membership Application & Agreement Purchases at a discount (depending on a country, between 15% - 42%)

•

Depending on a country, must or may not purchase a Herbalife Member Pack (HMP) Must Submit Membership Application & Agreement Purchases at a discount (between 25% - 50%) May retail Herbalife product if they choose May recruit new Members if they choose

•

No Discount

•

End Consumer

•

May not retail Herbalife product

•

30-day Money Back Guarantee

•

May not recruit new Members - Referral Program in some countries

•

30-day Money Back Guarantee

•

30-day Satisfactory Exchange Guarantee

•

90-day Full Refund for PC Pack (N/A for Turkey)

•

90-day Full Refund for HMP (N/A for Turkey)

Retail Profit

Compensation Plan: Retail Profit

1 st Area of Income

Retail Profit:

The difference between the discounted product price paid by a Member and the retail price paid by a customer.

Example:

Joe purchases at 25% - 42% discount Joe will earn 25% - 42% retail profit when selling to customers A & B

MARY

JOE

CUSTOMER A

CUSTOMER B

Important shapes

Squares:

Fully Qualified Supervisor Discount: 50%

FQS

Triangles:

Qualifying Supervisors Discount: Temp 50%

Trapezoid:

Qualified Producer Discount: 42%

Circles:

Member, Success Builder, Senior Consultant, Preferred Customer Discount: 15% - 42%

Personally Purchased Volume (PPV)

For a Preferred Customer ( PC ), Member ( MB ), Qualified Producer ( QP ), Qualifying Supervisor ( QS ) or Fully Qualified Supervisor ( FQS ), PPV is any Volume orders that are personally purchased directly from Herbalife. Everyone, at all levels in the Marketing Plan, accumulates PPV when they order directly from Herbalife.

FQS 400 PPV 50%

FQS :

PPV = 400 VP’s

QP A:

PPV = 650 VP’s

MB B:

PPV = 500 VP’s

QS C:

PPV = 1000 VP’s

QP A 650 PPV 42%

QS C 1000 PPV Temp 50%

MB D:

PPV = 4000 VP’s

PC:

PP = 100 VP’s

MB B 500 PPV 35%

MB D 4000 PPV 42%

PC 100 PP 15%

My Preferred Customer Volume (MPCV)

For a Member ( MB ), Qualified Producer ( QP ), Qualifying Supervisor ( QS ), MPCV is a volume that is accumulated by personally enrolled Preferred Customers^ and will contribute to the Personally Purchased Volume (PPV) requirement for higher level discounts/qualifications in the marketing plan.

MB A

PC 1 100 PP

MB B

MB A:

MPCV = 100 VPs

(100 VPs from PC 1)

PC 2 300 PP

MB B:

MPCV = 350 VPs

(300VPs from PC 2 and 50 VPs from PC 3)

^ A personally enrolled PC means that the Preferred Customer is directly under the Distributor, with no other Distributor in between. This may include a PC who was referred by another PC. This would not include a PC that was enrolled by another Distributor within the downline.

PC 3 50 PP

Qualifying Personal Volume (QPV) QPV=PPV+MPCV

For a Member ( MB ), Qualified Producer ( QP ), Qualifying Supervisor ( QS ), QPV* is a volume from orders that are personally purchased directly from Herbalife by MB ( PPV Personally Purchased Volume) and MB’s personally enrolled Preferred Customers ( MPCV My Preferred Customer Volume).

MB A 300 PPV

MB B 550 PPV

PC 1 100 PP

MB A:

QPV = 400 VPs

(300 PPV + 100 MPCV from PC 1)

PC 2 300 PP

MB B:

QPV = 900 VPs

(550 PPV + 300 from PC 2 + 50 from PC 3

* QPV was created to make it easier for MBs to track qualifications that require Personally Purchased Volume.

PC 3 50 PP

Preferred Customer’s Downline Volume (PC DLV)

For a Member ( MB ), Qualified Producer ( QP ), Qualifying Supervisor ( QS ), PC DLV is Volume from orders that are purchased by all levels of Preferred Customers including those personally enrolled by Distributors in their downline.

MB A 300 PPV

MB B 550 PPV

PC 1 100 PP

MB A:

PC DLV = 450 VPs (100 VPs from PC 1 + 300VPs from PC 2 + 50 VPs from PC 3)

PC 2 300 PP

MB B:

PC DLV = 350 VPs (300 VPs from PC 2 + 50 VPs from PC 3)

PC 3 50 PP

Distributor’s Downline Volume (DS DLV)

For a Member ( MB ), Qualified Producer ( QP ), Qualifying Supervisor ( QS ), DS DLV is Volume from orders that are purchased by MB’s non -Supervisor downline Distributors directly from Herbalife.

MB A 300 PPV

MB C 550 PPV

MB B 150 PPV

MB A:

DS DLV = 1400 VPs

(150 VPs from MB B + 550 VPs from MB C + 700VPs from MB D)

PC 1 300 PP

MB C:

DS DLV = 700 VPs

(700 from MB D)

MB D 700 PPV

Qualifying Downline Volume QDV=DS DLV+(PC DLV-MPCV)

For a Member ( MB ), Qualified Producer ( QP ), Qualifying Supervisor ( QS ), QDV* is volume from orders that are purchased by your non-Supervisor downline Distributors and Preferred Customers personally enrolled by Distributors in your downline.

MB A 300 PPV

MB B 550 PPV

PC 1 100 PP

MB A:

QDV = 900 VPs

(550 TVs from MB B + 300 VPs from PC 2 + 50 VPs from PC 3)

PC 2 300 PP

MB B:

QDV = 0 VPs

* MPCV volume is excluded as it is already a part of QPV.

PC 3 50 PP

Volume Types for Members (Non-Supervisor)

Member Type

Volume Type

Name

Formula

PPV

Personally Purchased Volume

* MPCV

My Preferred Customer Volume

PC DLV

Preferred Customer Downline Volume

* QPV

Qualifying Personal Volume

PPV + MPCV

DS DLV

Distributor Downline Volume

* QDV

Qualifying Downline Volume

DS DLV + PC DLV – MPCV

DLV

Downline Volume

DS DLV + PC DLV

Personally Purchased Volume & Downline Volume

* PPV & DLV

PPV + DLV

* These volume categories are not being added to the US/PR My Volume or BizWorks pages. Qualifications in the US/UST are based on Documented Volume and do not include a PPV requirement.

Downline Volume (DLV) DLV = DS DLV + PC DLV

FQS 400 VP’s 50%

For a non-Supervisor (inc. QS ) and Supervisor ^ , Downline Volume is based on Volume from orders that are purchased from Herbalife by all MB’s non-Supervisor downline Distributors and Preferred Customers.

QP A 650 VP’s 42%

QS C 1000 VP’s Temp 50%

FQS:

DLV = 5750 VP’s (from QP A +MB B + MB D + PC 1 + PC2)

QP A:

DLV = 500 VP’s (from MB B)

MB B 500 VP’s 35%

MB D 4000 VP’s 42%

MB B:

DLV = 0 VP’s

QS C:

DLV = 4,600 VP’s (from MB D & PC 1 + PC 2)

MB D:

DLV = 600 VP’s (from PC 1 + PC 2)

DLV = 200 VP’s * (from PC2)

PC 1:

PC 1 400 PP

PC 2:

DLV = 0 VP’s

* Preferred Customers will only be able to benefit from their first line referrals in the countries with the PC Referral Programme in place. ^ DLV was not a part of Supervisor’s Volume before, it is now as it contains PC DLV.

PC 2 200 PP

Personal Volume (PV)

FQS 400 VP’s 50%

For a Fully Qualified Supervisor (FQS), Personal Volume is based on their own Volume orders plus that of their Downline Members and Preferred Customers (who order between 15% - 42% discount - less than 50% discount ).

QS C 1000 VP’s Temp 50%

QP A 650 VP’s 42%

As a Qualifying Supervisor (QS), Personal Volume is based on your own Volume orders purchased at a Temporary 50% discount.

All orders listing an ID in the QS field of an order will also show as PV for that QS ID.

MB B 500 VP’s 35%

MB D 4000 VP’s 42%

FQS: PV = 5650 VP’s (FQS PPV + QP A + MB B + MB D + PC)

QS: PV = 1000 VP (QS @ T50%)

PC 100 Points 15%

Group Volume (GV)

FQS 400 VP’s 50%

As a Supervisor (FQS), Group Volume is based on your Downline Qualifying Supervisors Volume orders.

QS C 1000 VP’s Temp 50%

QP A 650 VP’s 42%

(QS -Temporary 50% discount orders)

MB B 500 VP’s 35%

MB D 4000 VP’s 42%

FQS: GV = 1000 VP’s (from QS C)

PC 100 Points 15%

Total Volume (TV)

FQS 400 VP’s 50%

As a Fully Qualified Supervisor (FQS), Total Volume is based on your Personal & Group Volume Orders added together.

PV + GV = TV

QS C 1000 VP’s Temp 50%

QP A 650 VP’s 42%

As a Qualifying Supervisor (QS), Total Volume is based on your own Volume orders purchased at a Temporary 50% discount.

MB B 500 VP’s 35%

MB D 4000 VP’s 42%

FQS: PV = 5650 VP’s (from FQS + QP A + MB B + MB D + PC) + GV = 1000 VP’s (from QS C)

TV 6650

PC 100 Points 15%

Volume Types for Supervisor

Member Type

Volume Type

Name

Formula

PPV

Personally Purchased Volume

* PCV

Preferred Customer Volume

(equivalent of PC DLV)

* DSV

Distributor Volume

(equivalent of DS DLV)

* DLV

Downline Volume

DS DLV + PC DLV

Personal Volume

PPV + DSV +PCV

Group Volume

Total Volume

PV + GV

Organizational Volume

Royalty Points

* These volume categories are not being added to the US/PR My Volume or BizWorks pages. Qualifications in the US/UST are based on Documented Volume and do not include a PPV requirement.

Volume Types for Preferred Customer

Member Type

Volume Type

Name

Formula

Personal Points

Referral Points

Total Points

PP + RP

• Volume Types have been added for the Preferred Customers to track their Points monthly.

• US/PR will not have changes to their existing My Volume and Track My Points pages.

• Referral Points and Total Points columns will not appear for countries where PCs are not allowed to refer.

Preferred Customer’s Volume

PC 1 100 PP

PC 1:

PP = 100 VPs RP = 75 VPs (from PC 2) TP = 175 VPs PP = 75 VPs RP = 50 VPs (from PC 3) TP = 125 VPs

PC 2:

PC 2 75 PP

PC3:

PP = 50 VPs RP = 0 VPs TP = 50 VPs

PC 3 50 PP

FQS 2

FQS2 = 0

Volume travels up

FQS1 800 @ 50% + 8100 fromA,B,C,QS,QP= 8900

FQS 1

QS 1000 T50% + 7100 fromA,B,C,QP= 8100

All Volume placed by a Member will travel up to the first upline Fully Qualified Supervisor (FQS).

QP 2500 @ 42% + 4600 from A,B,C =7100

The Volume may be used by anyone in the line up to and including the FQS.

C 4000 @ 42% + 600 fromA,B = 4600

MB C

B 400 @ 35% + 200 from A = 600

MB B

A 200 @ 25%

MB A

Senior Consultant and Success Builder

Senior Consultant (SC)

Qualifications • Accumulate a minimum of 500 VP in 1-2 months ; 35% discount will apply on the qualifying order and all orders after that. • Accumulate a minimum of 2,000 VP in 1-2 months* ; 42% discount will apply on the qualifying order plus for the remainder of the month. At the beginning of the following month, the discount will be 35%.

*The offer is for non-Supervisors who did not achieve Success Builder Level.

Benefits • Eligible to buy products at a 35% or 42% discount off the Earn Base. • Once this level is achieved, the Member’s discount will never be less than 35%. • Eligible to receive up to 27% commission on Downlines’ and Preferred Customers’ orders.

Examples of SC Qualification:

21 units of F1 (500 VPs / 23.95 VP per can) @ 35% discount = approx. €670 84 units of F1 (2000 VPs / 23.95 VP per can) @ 35% discount = approx. €2,680

Note: It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as a Supervisor.

Success Builder (SB)

Qualifications • Accumulate 1,000 Personally Purchased Volume (PPV) or more in 1 month .

Benefits • Receive a 42% discount on the qualifying order. • Receive a 42% discount on additional purchases in the same Volume Month + the next month. • At the beginning of the second following month, the discount will be 35%. • Eligible to receive 7%- 27% commission on Downlines’ and Preferred Customers’.

Example of SB Qualification:

42 units of F1 (1000 VPs / 23.95 VP per can) @ 42% discount = approx. €1,216

Note: It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as a Supervisor.

Eligibility for 35% discount^

1. Accumulate 500 Volume Points in 1 or 2 Volume month Date VP’s % Discount

200 200 100

25 25 35

Nov 2nd Nov 17th Dec 5th

VP’s @ VP’s @ VP’s @

% % %

= Senior Consultant 35% **

500

Total accumulated

VP’s

100

Dec 6th

VP’s @

2. One order of 500 (or more) Volume Points Date VP’s

% Discount

500

= Senior Consultant 35% **

Nov 2nd

VP’s @

Total VP’s in one order =

VP’s

500

**Note : The Member is eligible for 35% discount on the order that brings them to or above the 500 VP threshold. The 35% discount and a Senior Consultant level stays with MB until they become eligible for a higher position in the S&M Plan.

^Note: This Member Discount Scale (as a part of Marketing Plan Harmonization project) is not applicable to US/US Territories, Venezuela & China.

1. Accumulate 2000 Volume Points in 1-2 Volume Month* Date VP’s % Discount Nov 2 nd VP’s @ % Nov 20 th VP’s @ % Dec 5 th VP’s @ % Dec 12 th VP’s @ % Total accumulated = VP’s * Note : The Member is eligible for 42% discount on the order that brings them to or above the 2,000 VP threshold. At the beginning of the following month, the discount will be 35%. Jan 1 st VP’s @ % 2. Accumulate 1000 Personally Purchased Volume Points in 1 Volume Month** Date VP’s % Discount Nov 2 nd PPV @ % Nov 10 th PPV @ % Nov 15 th PPV @ % Total accumulated = PPV ’s ** Note : The Member is eligible for 42% discount on the order that brings them to or above the 1,000 PPV threshold in that Volume Month. The 42% discount stays the rest of the month + the next month. Dec 1 st VP’s @ % Jan 1 st VP’s @ % Eligibility for 42% discount^ 500 300 400 100 300 2000 25 35 42 35 35 42 35 800 200 25 500 42 500 500 1000 = Senior Consultant 35% ^ = Senior Consultant 42% *^ = Success Builder 42% **^ = Senior Consultant 35% ^ = Senior Consultant 35% ^

^Note: This Member Discount Scale (as a part of Marketing Plan Harmonization project) is not applicable to US/US Territories, Venezuela & China.

Member Volume accumulation

Senior Consultant: Example 1

• MB A will qualify to SC with a 35% discount on May 21st

FQS

• (50 PPV + 450 DLV = 500 VP)

May 21 st – 50 PPV @ 35% discount

MB A

MB B

May 1 st – 450 PPV @ 25% discount

Member Volume accumulation

Senior Consultant: Example 2

• MB B will qualify to SB with a 42% discount on May 10th.

FQS

• MB A will qualify to SC with a 35% discount on May 10th (1,000 DS DLV from MB B).

• MB C will qualify to SB with a 42% discount on May 11th.

• MB A will qualify to SC with a 42% discount on May 11th (2,000 DS DLV from MBs B & C).

MB A

MB B

May 10th – 1,000PPV @ 42% discount

MB C

May 11th – 1,000 PPV @ 42% discount

Member Discount Scale

DISCOU NT

MEMBER LEVEL

MONTHLY VOLUME

ELIGIBILITY

MEMBER

0 – 499 Volume Points

25% Until you become eligible for a higher discount.

Accumulation of 500VP in 1-2 months, 35% discount will apply on the order that brings the MB to or above the 500VP threshold OR purchase a 500VP order@ 35%.

Achieve 500 Volume Points or more

35%

All orders will be placed at 35% discount until MB becomes eligible for a higher discount.

SENIOR CONSULTANT

Once accumulate 2000 Volume Points in 1-2 months, MBs are eligible to a 42% discount for the threshold order and the discount remains till the end of that Volume Month.

Achieve 2000 Volume Points or more

42%

The accumulation of 1000 PPV* in 1 month entitles MBs to a 42% discount on the threshold order and all orders for the remainder of the Volume Month plus the next month.

SUCCESS BUILDER 1000 Personally Purchased Volume accumulated in 1 month

42%

QUALIFIED PRODUCER

Accumulate 2500 Volume Points within 1-6 months of which 500 must be PPV*.

After reaching the required threshold, MB becomes Qualified Producer and is entitled to a 42% discount on every order until becomes eligible for a higher discount.

42%

Achieve 4,000 Volume Points in One Month, over Two Months or within 3-12 Months (refer to the Supervisor Qualification requirements) 1.One Month: Achieve 4,000 Volume Points in one month (with a minimum 1,000 of those 4,000 Volume Points unencumbered) 2. Two Months: Achieve 4,000 Volume Points over two consecutive months (with a minimum of 1,000 of those 4,000 Volume Points unencumbered over the same two-month period) 3. Accumulated: Accumulate 4000 Volume Points within 3-12 months of which 1,000 must be PPV*.

QUALIFYING SUPERVISOR

Temp 50%

Once qualifying Volume Points are achieved, additional orders will be purchased at a Temporary 50% discount.

As a Supervisor MBs are entitled to a 50% discount on every order. Must requalify annually.

SUPERVISOR

50%

* Volume accumulated by personally enrolled Preferred Customers will contribute to the Personally Purchased Volume (PPV) requirement. This volume is referred to as My Preferred Customer Volume (MPCV).

❖ The Marketing Plan Harmonization updates will not apply to US/US Territories, Venezuela or China. ❖ Countries that currently do not have a PPV requirement will not introduce the PPV requirement.

PPV Requirement

The below countries will have a minimum PPV requirement to achieve the Qualified Producer or the Accumulated 3-12 months Supervisor qualification.:

The below countries currently do not have a minimum PPV requirement to achieve the Qualified Producer or Accumulated 3-12 months Supervisor qualification; therefore, one will not be implemented: PPV Requirement

Member Discount Scale

DISCOU NT

MEMBER LEVEL

MONTHLY VOLUME

ELIGIBILITY

MEMBER

0 – 499 Volume Points

25% Until you become eligible for a higher discount.

Accumulation of 500VP in 1-2 months, 35% discount will apply on the order that brings the MB to or above the 500VP threshold OR purchase a 500VP order@ 35%.

Achieve 500 Volume Points or more

35%

All orders will be placed at 35% discount until MB becomes eligible for a higher discount.

SENIOR CONSULTANT

Once accumulate 2000 Volume Points in 1-2 months, MBs are eligible to a 42% discount for the threshold order and the discount remains till the end of that Volume Month.

Achieve 2000 Volume Points or more

42%

The accumulation of 1000 PPV* in 1 month entitles MBs to a 42% discount on the threshold order and all orders for the remainder of the Volume Month plus the next month. As of the first of second following month, MB will go back down to 35% discount.

SUCCESS BUILDER 1000 Personally Purchased Volume accumulated in 1 month

42%

QUALIFIED PRODUCER

Accumulate 2500 Volume Points within 1-6 months of which 500 must be PPV*.

After reaching the required threshold, MB becomes Qualified Producer and is entitled to a 42% discount on every order until becomes eligible for a higher discount.

42%

QUALIFYING SUPERVISOR

Temp 50%

Once qualifying Volume Points are achieved, additional orders will be purchased at a Temporary 50% discount.

As a Supervisor MBs are entitled to a 50% discount on every order. Must requalify annually.

SUPERVISOR

50%

Compensation Plan: Wholesale Profit

2 nd Area of Income:

MARY 50%

Wholesale Profit (Split Commission): The difference between the discounted product price paid by a Member and price paid by their Downline Member or Preferred Customer.

JOE 25%- 42%

This is paid on *Earn Base, on the 15th of every month for previous months orders.

*Earn Base Value: The value assigned to a product, in local currency, on which discounts and earnings are calculated.

CUSTOMER A

LEE 25%- 42%

CUSTOMER B

Example: Lee purchases at 25% - 42% discount.

• Joe can earn 7% - 17% wholesale profit (commission) when Lee purchases from Herbalife. • Joe can earn 7% - 27% wholesale profit (commission) when a PC purchases from Herbalife.

PC 15%- 35%

Note: Joe is still eligible for the Retail profit, as he purchases products at 25%-42% discount and can earn 25%-42% Retail Profit when selling to Customers A & B.

Wholesale Profit / Split Commission

• A Commission of 7%-35% will be paid on every order placed with Herbalife by Downline Members at a 25%-42% and Preferred Customers at a 15% - 35% discount.

• The Commission will be paid to the purchaser’s upline Member, Senior Consultant, Success Builder or Qualified Producer, Qualifying Supervisor or Supervisor.

• The Commission will be shared by the Upline based on the discount applied on the order as well as the Upline’s final discount percent at the end of the month.

• Qualifying Supervisors will receive a Commission based on their Temporary 50% discount only when they are identified as the QS ID on the order; otherwise, they will earn based on a 42% discount.

Wholesale Profit / Split Commission examples

Example 1

Example 2

Example 3

Supervisor 50%

Qualified Producer 42%

17%

Qualified Producer 42%

17%

Senior Consultant 35%

Member 25%

20%

10%

17%

Member 25%

PC 15%

PC 25%

Split Commission paid on DL Members

Split Commission paid on Preferred Customers

Product Price List – Commissions paid on Earn Base

The EARN BASE is a monetary value assigned to each product, in local currency, on which the discounts and earnings are calculated. Like in all retail businesses, product margins and pricing can vary, and in some cases, the Earn Base value of a product may be set further below the Suggested Retail Price in order for the product to be priced more competitively.

Member Statements

Qualified Producer

Qualifications • Accumulate 2,500 Volume Points within 1 to 6 Volume Months^ • Volume can be achieved with all Personally Purchased Volume or utilizing up to 2000 Downline Volume Points , with the remaining 500 as Personally Purchased Volume/MPCV* . • All volume achieved towards this qualification must be from orders purchased directly from Herbalife. Benefits • Eligible to buy products at a 42% discount off the Earn Base • Eligible to receive 7% - 17% split commission on downline Members’ orders • Eligible to receive 7% - 27% split commission on downline Preferred Customers’ orders • Once this level is achieved, the Member’s discount will never be less than 42% • Effective September 2019 Qualified Producers no longer have a requalification requirement (Q&A HERE)

^ This Member Discount Scale (as a part of Marketing Plan Harmonization project) is not applicable to US/US Territories, Venezuela & China.

* MPCV is a volume that is accumulated by personally enrolled Preferred Customers^ and will contribute to the Personally Purchased Volume (PPV) requirement for higher level discounts/qualifications in the marketing plan.

Note: It is not necessary to become a Senior Consultant, Success Builder or Qualified Producer before qualifying as a Supervisor.

Example of SB Qualification: 104 units of F1 (2500 VPs / 23.95 VP per can) @ 42% discount = approx. €3,012

Qualified Producer example using Downline Volume

October

September

FQS

1,000 Personally Purchased Volume*

1,000 PPV + 1,500 DLV 2,500 VP

MB A

QP A

1st of the following month Qualified Producer

Success Builder @ 42%

MB B

800 PPV + 700 DLV = 1,500 VP Senior Consultant @ 35%

Senior Consultant

MB C

700 Personally Purchased Volume = Senior Consultant @ 35%

MB C

Senior Consultant

Supervisor

How to qualify for a Supervisor

Two Month Qualification Accumulate 4,000 Volume Points over two consecutive months, with at least 1,000 unencumbered Volume.

One Month Qualification Achieve 4,000 VP in one month (with a minimum 1,000 of those 4,000 VP unencumbered).

FEBRUARY

JANUARY

FEBRUARY

FQS

A 4000 VP 25%-42% Discount

A 1200 VP 25%-42% Discount

A 2800 VP 25%-42% Discount

= FQS March 1st

1 month Supervisor Qualification = 168 units of F1 (23.95 VP per can) = 4023.60 VP (@ 42% discount = € 4, 865 )

How to qualify for a Supervisor

3-12 Month Accumulated Qualification

Accumulate 4,000 Volume Points in three to twelve months

• Minimum of three (3) months is required • Volume can be achieved with all Personally Purchased Volume or utilising up to 3,000 Downline Volume Points with the remaining 1,000 as Personally Purchased Volume*

Qualifying Supervisor

FEBRUARY

MARCH

FQS1

Accumulates 4000 VP February 20th

FQS A

FQS as of March 1st

Qualifying Supervisor Temporary 50% -----------------------------------------

Eligibility:

1. Achieve 4,000 Volume Points in one month (with a minimum of 1,000 of those 4,000 VP unencumbered) OR 2. Accumulate 4,000 Volume Points over two consecutive months (with at least 1,000 VP unencumbered) OR 3. Accumulate 4,000 Volume Points in 3-12 months. Volume can be achieved with all Personally Purchased Volume or utilising up to 3,000 Downline Volume Points with the remaining 1,000 as PPV/MPVC.

Once qualifying Volume Points are achieved, orders will be placed at a Temporary 50% discount

Supervisor qualification example

APPROX. NUMBER OF FORMULA 1 CANISTERS FOR 4000 VP

FORMULA 1 (750g) = Approximately 32.75 VP Worldwide

4,000 VP Required for Supervisor Qualification

32.75VP Per Formula 1 Canister

= 123 Formula 1 Canisters

Encumbered and Unencumbered

Encumbered & Unencumbered Volume

* Unencumbered (un-used Volume): All Volume produced by anyone in your personal organisation and all your own personal Volume that is not being used for Supervisor qualification purposes. Unencumbered Volume also includes all Volume purchased by you.

Encumbered (used Volume): All Volume produced by anyone in your personal organisation that is being used for Supervisor qualification purposes.

* Unencumbered Volume is Volume that is not being used by another Independent Member in each Member’s organisation to qualify for Supervisor using the One-Month or Two-Month qualification method.

NOTE: Volume will roll up and will be either encumbered or unencumbered depending on whether or not the Volume is being used for a Supervisor qualification

Qualifying to SP using Unencumbered Volume

December

November

FQS 1

QS A 0 PPV 4000 DLV

FQS A

MB B 2000 PPV 25%-42% Discount

MB C 2000 PPV 25%-42% Discount

MB B 0 PPV

MB C 0 PPV

• Member “A” has achieved 4000 Unencumbered Volume Points in November (all DLV from Members “B” and “C”) • Member “A” becomes FQS in the following month

Qualifying in a line using One Month Method

March

April

FQS = 0 Unencumbered Volume 5000 Encumbered Volume 5000 Total Volume

FQS

• After Member ‘B’ achieves 4000 VP, both Members ‘A’ and ‘B’ will become QS • Member ‘A’ is eligible to purchase at a Temporary 50% discount due to the unencumbered Volume from ‘B’

A 1000 VPs Temp 50% discount B 4000 VPs 25% - 42% discount

A FQS

A = 1000 Unencumbered Volume

4000 Encumbered Volume from B 5000 Total Volume

B FQS

• Both will be updated to FQS the following month

B = 4000 Unencumbered Volume

MANUAL SUPERVISOR LINE QUALIFICATIONS HERE

Qualifying in a line using Two Month Method

March

April

May

FQS

MB A 500 VPs 25%-42% Discount

A FQS

MB B 4000 VPs 25% - 42% Discount

B FQS

• After Member “B’ achieves 4000 VP, both Members “A” and “B” will become QS • Member “B” will become FQS in April using the One Month Supervisor Qualification method • Member “A” must achieve 1000 Unencumbered Volume Points before the end of April in order to utilize the 4000 VPs achieved by Member “B” in March • Member “A” will become FQS in May using the Two Month Supervisor Qualification method

Volume calculation

Volume calculation exercise #2

1220 1220 0

PCV: _____VP FQS 1

DSV: _____VP FQS 1 DLV: _____VP FQS 1

MB C 720 VP’s 35%

FQS 1 2000 VP’s 50%

MB A 500 VP’s 35%

DLV: ____VP

4225 3900 325

PCV: _____VP FQS 2 DSV: _____VP FQS 2

PCV: _____VP FQS 3 DSV: _____VP FQS 3 100 4000 DLV: _____VP FQS 3 4100

FQS 2 1600 VP’s 50%

MB B 1200 VP’s 42%

FQS 3

DLV: _____VP FQS 2

DLV: ____VP

DLV: _______VP 4100 QDV: _____VP PC DLV: _____VP QPV: _____VP DS DLV: _____VP 1000 100 4000 4100 MPCV: _____VP 0

150

DLV: ______VP 2825 QDV: _____VP MPCV: _____VP PC DLV: _____VP DS DLV: _____VP QPV: _____VP 325 350 2500 2675

MB D 200 VP’s 42%

PC 1 150 PP 25%

QS E 1000 VP’s Temp 50%

150 TP: ______VP RP: ______VP

MPCV: _____VP 100 PC DLV: _____VP QPV: _____VP DS DLV: _____VP 100 4100

DLV: _____VP 175 0 QPV: _____VP QDV: _____VP 2675 0 DS DLV: _____VP MPCV: _____VP PC DLV: _____VP 175 175

MB G 2500 VP’s 42%

MB F 4000 VP’s 42%

To calculate PPV, PV, GV, TV:

0 0

DLV: _____VP 100 QDV: _____VP

PPV (FQS)

PV (FQS+MB)

GV (QS+Temp50%)

TV (PV+GV=TV)

PC 2 50 PP 25%

PC 5 100 PP 25%

FQS1

3,220

2000

3,220

TP: ______VP RP: ______VP 0 100

RP: ______VP 100 150 TP: ______VP

FQS2

1600

5,825

FQS3

PC 3 100 PP 25%

5,100

1,000

4,100

RP: ______VP 25 TP: ______VP 125

QS E

1,000

PC 4 25 PP 15%

25 TP: ______VP RP: ______VP

Supervisor Annual Requalification

Herbalife Fiscal Year: Feb 1st – Jan 31st

3 ways to requalify:

1. Achieve 4,000 Volume Points in one month , with a minimum of 1,000 Volume Points Unencumbered OR 2. Accumulate 4,000 Volume Points over two consecutive months with a minimum 1,000 Unencumbered Volume Points within the same two months period OR 3. Accumulative Method • Accumulate 10,000 Unencumbered Total Volume Points over the 12-month Requalification period • Accumulate 2,000*/** Unencumbered Total Volume Points over the 12-month Requalification period

*Note: Supervisors requalifying using this method will retain their Supervisor status but will lose Downline Supervisors and their organisation. **This requalification method used to be a Pilot Project, but for E&A, this change will become a regular enhancement from this Requalification Period (Feb 1 st , 2021 – Jan 31 st , 2022); Modifications details for Pilot Countries FAQ HERE.

FQS with all benefits

FQS FQS

New Fiscal Year begins Feb 1 st ‘22

ends Jan 31 st ‘23

Current Fiscal Year ends Jan 31 st ‘22

April 1st ‘21

Requalification Period to remain at Supervisor level for following fiscal year (Feb 1st - Jan 31st)

Examples of Supervisor Requalification

Example 1: One Month Requalification

May

June

FQS 1 1,000 VP @ 50%

Requalified

FQS 1

MB A 4,000 VP 25%-42%

Fully Qualified Supervisor

FQS A

In the above example the FQS also requires 1000 VP’s (unencumbered) to use their Downline’s activity to requalify .

Examples of Supervisor Requalification

Example 2: Two Month Requalification

July

May

June

FQS 1 1000 VP 50% Discount

FQS 1 500 VP @ 50%

FQS 1 500 VP

Requalified

MB A 3,000 VP 25%-42%

FQS A 1000 VP 50% Discount

QS A 1,000 VP 42%

Fully Qualified Supervisor

In the above example the FQS will require 1000 VP over the same two months that the Downline Member “A” is qualifying to become Supervisor in order to utilize their Downline’s activity to requalify .

Examples of Supervisor Requalification

Example 3: Accumulative Method

2K Accumulative (Unencumbered TV)

FEB 2021

MAR 2021

APR 2021

MAY 2021

JUN 2021

JUL 2021

AUG 2021

SEP 2021

OCT 2021

NOV 2021

DEC 2021

JAN 2022

TOTAL

FQS1

2,000 TV

300

100

500

100

150

600

200

Note: Members Requalifying using this method will retain their Supervisor status but will lose Downline SP’s and their organisation

10K Accumulative (Unencumbered TV)

FEB 2021

MAR 2021

APR 2021

MAY 2021

JUN 2021

JUL 2021

AUG 2021

SEP 2021

OCT 2021

NOV 2021

DEC 2021

JAN 2022

TOTAL

FQS1

10,000 TV

1,000 500 1,250 1,000 500 2,500 150

600

2,000 500

Note: Members Requalifying using this method will retain their Supervisor status and their lineage

Supervisor non-qualification

NOVEMBER 2022

DECEMBER 2022

A has at least 1 full Fiscal Year (Feb 23 – Jan 24) from the date B became FQS to also become FQS, or A will lose FQS B to FQS Z ( Non-Qual ).

FQS Z

FEBRUARY 2024

MB A 0 PPV

QS A 500 PPV

FQS Z

FQS B

MB B 4000 PPV

FQS B

Note: The Non-Qual process runs once a year at the same time as the Annual Requalification Process in February.

Demotion

• All Supervisors who fail to requalify their Supervisor status by January 31 will be demoted to the Qualified Producer level and will lose all rights and privileges of a Supervisor. • This includes but is not limited to, the loss of any lineage that includes a Supervisor. • In this case the entire Downline Lineage will be moved to the next Upline Fully Qualified Supervisor .

More info on Supervisor’s Demotion HERE

Supervisor Demotion Example

January

February

FQS A

QP C QP * C *

FQS B

FQS C

FQS B

FQS E

MB 4

FQS E

MB 4

MB 1

MB 3

FQS D

* C Did not requalify

*C Demoted to a Qualified Producer • Loses downline SP’s and their organisation(s) • Loses all Supervisor Benefits

MB 2

Accumulated 2,000 VP Supervisor Requalification

January

February

FQS A

FQS B

FQS C

FQS B

FQS E

MB 4

FQS E

MB 4

MB 1

MB 3

FQS D

* C did not requalify in 1 or 2 months However, C accumulated 2000+ unencumbered TV Points between Feb 1 st - Jan 31 st

*C remains at Supervisor or above level • But loses downline SP’s & their organisation(s) • Keeps 50% Discount • Keeps WT or TAB Team Status (if applicable)

MB 2

Compensation Plan: Royalty Overrides

3 rd Area of Income:

MARY

Royalty Overrides: A payment ranging from 1%-5% made to Fully Qualified Supervisors on the Monthly Volume of their three levels of Active* Downline Supervisors.

JOHN (500+ TV)

JOE (500+ TV)

* Active Downline Supervisors are those who have 500+ VPs in their PV or TV. If the Downline Supervisor’s Volume is less than 500 VPs, they are considered inactive, but the Upline FQS is eligible to earn R/O on these inactive Supervisors as well.

This is paid on Earn Base, on the 15th of every month for previous months orders.

MARIA (500+ TV)

LEE

Example: As a Supervisor Joe purchases at 50% discount.

• Joe earns 1-5% Royalty Override on purchases made by John, Maria, Anna* & Pat (*Anna being inactive Downline Supervisor)

ANNA (0-499 TV)

CUSTOMER A

CUSTOMER B

Note: As a Supervisor Joe purchases at 50% discount and is eligible to earn 50% retail profit when selling to customers A & B. Also, Joe may potentially earn 8% - 25% wholesale profit (Split Commission) when Lee purchases from Herbalife.

PAT (500+ PV)

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