HERBALIFE - APPLYING TO BECOME A MEMBER

APPLYING TO BECOME A MEMBER

An individual applying to become an Herbalife Member (“Applicant”) must:

• Be sponsored by an Herbalife Member (“Sponsor”);
• Purchase the Herbalife Member Pack (HMP);
• Fill out and submit an Herbalife Membership Application and Agreement (“Application”); and
• Have the Application accepted by Herbalife.2

1.1.1 Restrictions on Purchase Requirements

The only required purchase to become a Member is the HMP which is sold to a new Member at cost without markup or profit to the Sponsor.

The HMP may not be combined with other products, services or materials. Sponsors may not require Members to purchase:

• An inventory of products.
• Materials, products or services, whether or not produced by Herbalife.
• Admission tickets to attend seminars, meetings or other events.

In addition, under the UK Trading Schemes Regulations (1997) Members may not pay or commit to pay in excess of £ 200 within the first 7 days from the date of entering into the Membership Application and Agreement This includes the purchase of Herbalife products, literature, sales aids etc.

1.1.2 Debt Discouraged

One of the benefits of an Herbalife business is that it is inexpensive: The only required expense is the purchase of an HMP. Members are encouraged to build their business debt-free. Members who elect to retail products and/or build Member organizations don’t need to invest in large inventories or incur burdensome debt.

Herbalife strongly discourages incurring debt or obtaining loans to pursue the Herbalife opportunity. Money loaned or granted for any purpose not specifically related to Herbalife (including educational loans or grants) may not be used in the operation of an Herbalife business.

2 Herbalife reserves the right to accept or reject any Application in its sole and absolute discretion. Until the Application is accepted, the Applicant is granted a revocable license to buy and sell Herbalife® products.

1.1.3 One Membership Permitted Per Person

An individual may own, operate, and support only one Membership, except as permitted by the Married Couples and Members who Marry, Separation, Divorce, and Dissolution of Life Partner Relationship and Inheritance Rules. (See Rules 2.1.5, 2.3 and 2.4) If an individual submits more than one Membership Application, the first Application received and accepted is the valid Membership.

1.1.4 Annual Membership Services Fee

Members are charged an Annual Membership Services Fee (“Fee”) for Herbalife computer processing and other services. The Fee must be received from the Member and may not be paid by another Member. If a Member does not pay the Fee by the anniversary date of the original Application, the Membership is terminated. Herbalife tries to remind Members by mail/electronic mail of the deadline for payment. However, the Member is responsible for paying the Fee on time.

1.1.5 Acceptance/Rejection of Fee

If a Member has violated the Rules, Herbalife may refuse to accept payment of the Fee, in which case the Membership will be terminated, and Herbalife will refund payment of the Fee.

1.1.6 Communications with Herbalife

Members must provide a permanent home or business address to Herbalife and keep all contact information current in Herbalife’s records. All documents and statements submitted to Herbalife must be complete, truthful, and submitted in a timely manner. Page 7 of 51 English # 603469-UK-00A (Corp. Version 31) Rev. 21-June-2017

1.1.7 Proper Purchasing

Non-Supervisor Members may only purchase Herbalife® products directly from Herbalife, from their Sponsor, or their first upline Fully Qualified Supervisor. Note: only orders placed with the Company count towards qualification to become Qualified Producer or Supervisor. All products must be delivered within a reasonable amount of time after sale.

Fully Qualified Supervisors may only purchase products from Herbalife.

Members may not place or pay for orders on behalf of other Members.3 The sole exception is if a Supervisor is ordering for a non-Supervisor, because the purchase is considered to be the Supervisor’s own Personal Volume.

1.1.8 Payment

Submitting Payments:

Members must ensure that all payments submitted to Herbalife are authorized and sufficiently funded. Members may not use the credit cards, personal checks or any other form of payment from their Members, retail customers or other individuals to pay for orders purchased from Herbalife.

Members are financially liable for payments that are rejected for any reason.4

Herbalife may restrict a Member’s buying privileges for violations of this Rule and make volume and earning adjustments to settle disputed charges.

Accepting Payments:

When accepting payments online or via mobile, Members:

o Must Incorporate a secure payment system. For example:

• Square, Flint, Spark Pay, iZettle or PayPal Here5

o Must Implement appropriate security measures to protect customer information6 from unauthorized disclosure, access or compromise. For example:

• Never emailing or text messaging customer information, as these communication methods are not secure.
• Always storing customer information in a centralized and protected location.
• Regularly purging customer information, and only keep a minimal amount of customer data.
• Properly disposing hard copies of customer information by shredding, burning or pulverizing the data.
• Staying up to date with and complying with data protection standards provided by law.

o Must Comply with the latest Payment Card Industry Security Standard (PCI-DSS) applicable for credit and debit card payments.7 Using a payment solution that is up to date with the security standards required by PCI-DSS will ensure the transmission, processing, and storage of the customer’s debit and credit card data is handled consistently with the payment card industry’s required best practice security standards.

The Member is responsible for compliance with all data protection laws applicable to the processing of personal data including sensitive personal data collected via the Member's own website and must be authorised to lawfully process customer's personal data and will be legally responsible for maintaining confidentiality and reporting any data breaches.

2.1 MEMBERSHIP ELIGIBILITY

2.1.1 Members Must Be Individuals

Herbalife only accepts Applications for Membership in the name of individuals. However, Members may have their Herbalife earnings paid to a partnership or corporation by submitting a written request to the Herbalife Member Services Department (“Member Services”).8 The Membership will remain in the name of the individual, and the earnings of the Membership will be reported in the name and tax identification number of the individual Member.

8 Member Services may be reached by calling 03450 560606.

9 The list of prohibited countries may change from time-to-time. For the most current listing, please see uk.MyHerbalife.com.

10 Minimum age requirements vary from country to country. For age requirements in other countries, contact Member Services.

11 Life Partner: A person designated by an Herbalife Member as their Life Partner on the “Add Life Partner Request Form”. Forms are available thought Member Services.

12 As an example, recognition allows Herbalife event attendance and recognition for new business and Marketing Plan achievements.

2.1.2 Citizenship and Residency

A Member may not be a citizen or resident of Iran, Sudan, Cuba, Syria, North Korea, or the Crimea region of Ukraine9.

2.1.3 Dual Memberships

If Herbalife determines that a Member, spouse, Life Partner, or other individual participating in a Membership has submitted more than one Application, or has worked or assisted in the development of another Membership, Herbalife has the sole and absolute discretion to:

• Terminate or place conditions on one or both of the Memberships.

• Impose penalties or sanctions on the Memberships and/ or Sponsors.

• Adjust the volume and compensation of either or both sponsoring organizations for any period prior to the transfer or deletion of the Membership.

• Take other action it deems appropriate.

In cases of dual Memberships and similar violations, the Member may be allowed to continue as an Herbalife Member, but must do so in the proper line of sponsorship as determined by Herbalife. Herbalife will determine the disposition of the deleted Membership’s downline lineage.

2.1.4 Membership Minimum Age

A person must be at least 18 years old to apply for Membership or participate in another Member’s Herbalife business.10

2.1.5 Married Couples and Members Who Marry

Married couples and Life Partners11 may participate in only one Membership. If two Members marry each other, one Membership must be relinquished. If two Members enter into a Life Partner relationship with each other one Membership must relinquished. The only exception to this Rule is when each Membership is at Supervisor level or greater at the time of marriage or entering into the Life Partner relationship. In this case, each spouse or Life Partner may continue to operate his or her individual Membership.

2.1.6 Recognition of Spouse or Life Partner

A Member may request that Herbalife add the name of a spouse or Life Partner to their Membership record. Adding a name to the record is for recognition12 purposes only and it does not give the spouse or Life Partner ownership or other rights related to the Membership.

2.1.7 Activities of a Spouse or Life Partner

A Member is responsible for the acts of their spouse or Life Partner, whether or not the spouse or Life Partner participates in the Membership and whether or not the Member was aware of the spouse’s or Life Partner’s actions. The spouse and Life Partner must comply with the Rules and laws related to the Herbalife business. For example, a Member will be responsible if their spouse or Life Partner solicits or promotes another Multilevel Marketing (MLM) or direct-selling opportunity to any Herbalife Member or customer. Page 9 of 51 English # 603469-UK-00A (Corp. Version 31) Rev. 21-June-2017

Herbalife reserves the right to terminate a Membership if the spouse or Life Partner engages in activities which, in Herbalife’s opinion diminish, damage, or weaken the reputation of Herbalife or its products.

2.1.8 Former Participant in Membership

A Former Participant (meaning a former Member, spouse, Life Partner or an individual who participated in a Membership) must wait a minimum of one year and fulfill the Period of Inactivity requirements before reapplying for Membership under a different Sponsor or assisting any other Membership. (See Rule 2.1.10)

2.1.9 Disclosure of Former Membership

If a Former Participant applies for a new Membership, the Former Participant must notify Herbalife at the time of application and provide the former Membership ID number. A Membership may be terminated if the Member fails to inform Herbalife of activity in another Membership or makes misrepresentations regarding it.

Source: Rules of Conduct - UK