FORMULA 1,PREFERRED MEMBERS

Please be aware of the important business rules for the U.S. and U.S. territories.

These rules will affect you if you place an order in the United States or U.S. territories and are relying on the volume for your qualification to earn, worldwide earnings, discount advancement, Sales & Marketing Plan levels, promotions, etc.

If you plan to rely on U.S./U.S. territory volume for your qualification to earn or for any other qualification, you must ensure that the U.S./U.S. territory volume is “Documented.”

What is Documented Volume (DV)?
Documented Volume (DV) is volume that can be used towards your qualification to earn (earning %), qualification to achieve higher discounts, advancement in the marketing plan, and qualification for promotions.
Purchases in the U.S./U.S. territory for personal consumption and purchases for retail sale where a receipt was not generated will NOT count as Documented Volume.

Here is how to accumulate Documented Volume:

• • Profitable customer retail sales supported by a receipt that is submitted and accepted by Herbalife Nutrition for:
  • A sale made in any country by you or your U.S./U.S. territory downline that contributes to your personal volume
  • A sale made in the U.S./U.S. territories by your non-U.S./U.S. territory downline that contributes to your personal volume
  • ALL purchases made by your first line Preferred Members or the first line Preferred Members of downline that contribute to your personal volume
  • All purchases made by your non-U.S./U.S. territory downline that contribute to your personal volume made outside the U.S. for sale to Customers in the market in which the purchase was made

If you are relying on this volume to qualify to earn on both your U.S./U.S. territory and Worldwide earnings, these rules could potentially impact your qualification if your U.S./U.S. territory purchases are not documented. As a result, there are certain limits on the ability of International Distributors to place an order in the U.S. & U.S. territories.

There are two major reasons for this:

• To support the U.S./U.S. territory requirement to attain 80% Primary Rewardable Volume. We must achieve this 80% threshold under the FTC Order in order to pay out 100% on the Sales and Marketing Plan. This is an absolute must.
• To protect the income of International Distributors with U.S. business, whose earnings could be adversely impacted by U.S./U.S. territory product purchases without the proper receipts.

International Distributors who do not have a U.S. or U.S. territory address on Herbalife Nutrition’s records will only be able to place the following orders to support their customer sales:

• Customer Direct orders with the creation of a receipt with this order*
• Customer orders via the Distributor’s GoHerbalife website (if applicable)

*If the order is being shipped directly to your customer in the U.S. or a U.S. territory, you will be asked to provide the customer’s information and the price you charged the customer. The receipt will be generated and submitted automatically if you include the required information.

Personal consumption orders or retail inventory orders in the U.S. & U.S. territories are not available for any International Distributor; this includes orders when at events or when visiting the U.S. or Puerto Rico.

How do I submit receipts to Herbalife Nutrition?
Place a customer direct order that is shipped to your U.S./U.S. territory customer (direct ship order).The receipt will be generated and submitted automatically if you include the required information.

What if I don’t live in the U.S./U.S. territory?

It doesn’t matter if you don’t live in the U.S./U.S.territory. What matters is where you or your downline are placing the orders. If you or your downline are placing orders in the U.S. or U.S territories, these rules apply.

This may affect your qualification to earn (earning percentage) on both your U.S./U.S. territory and worldwide earnings.

Example:

• If you have 2,300 VPs outside of the U.S./U.S. territory and 200 Volume Points within the U.S./U.S. territory, the 200 Volume Points will only count toward your 2,500 qualification to earn if it is documented
• If the 200 Volume Points is not Documented Volume, the volume will NOT count toward your worldwide qualification to earn and you will only have 2,300 DV and only earn 4% Royalty Override and ZERO Production Bonus (if applicable)
• This 4% Royalty Override percentage level of earnings and ZERO Production Bonus will also apply to your WW RO and PB