Copyright © Herbalife. All rights reserved.
GOLD STANDARD GUARANTEES
Herbalife Nutrition takes pride in the policies we have in place to protect all of our Distributors.Please review the Gold Standard Guarantees and check each box to acknowledge that youhave read and understand each item. 1. There are no minimal purchases required and start-up costs are low. The only required purchase to become an Herbalife Nutrition Distributor or engage in the Herbalife Nutrition business is the International Business Pack. No product purchases are required. If I choose to purchase products, I understand my purchases should not exceed my own needs or amounts I am confident I can resell in a reasonable amount of time. 2. There is a fully refundable, 12-month money-back guarantee for the cost of the International Business Pack, if Distributorship is canceled for any reason, including the shipping cost to return the Pack. To obtain a refund, Distributors may call Herbalife Nutrition at 866-***-**** or submit the refund form available at MyHerbalife.com
(Repurchase of Inventory).
If I choose to cancel my Distributorship w ithin 12 months, I have the right to a full refund of the purchase price of the International Business Pack, including the shipping cost to return the Pack. 3. There is a 100% refund guarantee on unopened products, including taxes and handling costs, that were purchased in the previous 12 months if Distributorship is canceled for any reason. The cost of shipping, both the initial delivery and return shipping, will also be refunded. To obtain a refund, Distributors may call Herbalife Nutrition at 866-***-**** or submit the refund form available at MyHerbalife.com (Repurchase of Inventory). If my Distributorship is canceled for any reason, I may return to the company unused and resalable products or sales materials that I purchased in the previous 12 months for a full refund of the purchase price, including taxes, handling and shipping, both the initial delivery and return shipping costs. 4. There is no requirement to purchase any sales and business tools to start up or succeed in your Herbalife Nutrition Distributorship.
I am not required to purchase any business tools, and can use the promotional literature and sales tools that Herbalife Nutrition makes available for free or at minimal cost. I understand that I must successfully complete the “Required Distributor Training” (available on MyHerbalife.com) w ithin 30 days of enrollment as a new Distributor, in order to purchase Herbalife Nutrition products for resale, recruit others to become Herbalife Nutrition Distributors or Preferred Members, or receive multi-level compensation from Herbalife Nutrition. Prior entering into any lease, sublease or purchase of a commercial location, Herbalife Nutrition Independent Distributors are required to be a Distributor for at least 12 consecutive months, successfully complete the Company’s Keys to Your Business training available on MyHerbalife.com, prepare a w ritten business plan, using the simple Form available on MyHerbalife.com, and complete Registration Requirements per the Location Registration Form. 5.
to make absolutely sure that the right products are taken the right way to achieve realistic results. We provide realistic expectations of the business opportunity and the effort required to succeed at all levels. make absolutely sure that the right products are taken the right way and that Distributors have the correct information to talk about the products to their customers. Similarly, w e provide accurate information about the financial results that Herbalife Nutrition Distributors have achieved so that it may be shared w ith those being introduced to the Herbalife Nutrition business opportunity. Any claims I make about Herbalife Nutrition products or about the Herbalife Nutrition business opportunity must be law ful, true, not misleading, substantiated in w riting in advance and consistent with claims made in the current materials published by Herbalife Nutrition. I may not make any written, therapeutic or curative claims about Herbalife Nutrition products (w hether or not they are about my ow n personal experience), except those stated in materials published by Herbalife Nutrition, or use the name of the Food and Drug Administration (FDA) or any other regulatory agency w hen representing Herbalife Nutrition products. 6. We provide clear, accurate, and timely disclosures to prospective Distributors regarding potential income. I understand that it takes hard w ork, dedication and skill to make an Herbalife Nutrition Distributorship successful. I understand that the Statement of Average Gross Compensation that follows is available on MyHerbalife.com, and is the only authorized information about the financial results that Herbalife Nutrition Distributors have achieved. I confirm I am not relying on any other information. To see all of your rights and obligations as an Herbalife Nutrition Distributor, please review Herbalife Nutrition’s Rules of Conduct in your Business Pack or visit MyHerbalife.com. Herbalife Distributorship Application and Agreement Please read the terms and conditions and check the box below to acknowledge that you read and understand them.
A. DISTRIBUTORSHIP
1. Becoming a Distributor: Thank you for applying to become an Herbalife Nutrition Independent Distributor
(“Distributor”). You will become a Distributor only when we (Herbalife International of America, Inc.) accept your application and your Distributorship is entered into our records. The terms and conditions of our Agreement are found in this application, the Sales and Marketing Plan, Rules of Conduct (“Rules”)
(https://hrbl.me/SMPandRules) and other documents posted on MyHerbalife.com (collectively the “Materials”). We may revise the Materials from time to time in our discretion, so we encourage you to regularly visit MyHerbalife.com. You may also call Herbalife Nutrition at 866-***-**** for assistance in obtaining these Materials. You acknowledge that you will be required to successfully complete Herbalife Nutrition Distributor training in order to purchase Herbalife Nutrition products for resale, recruit others to become Herbalife Nutrition Distributors or Preferred Members, or receive multi-level compensation from Herbalife. Training may be found on the Learning Center at MyHerbalife.com, or you may call Herbalife Nutrition at 866-***-****. 2. International Business Pack: Along with this application you purchased and received from Herbalife Nutrition a new, unopened IBP. If you resign your Distributorship for any reason within twelve (12) months of the date Herbalife Nutrition accepted this application, you are entitled to a full refund of the cost of the IBP, including shipping costs if we ask you to return the IBP. To obtain a refund you may call Herbalife Nutrition at 866-866- 4744 or submit the refund form you will find at MyHerbalife.com (Repurchase of Inventory). 3. Term: The term of the Agreement will be one year from the date this application was accepted by us, renewable annually, so long as you comply with certain requirements such as payment of an Annual Services Fee, or completion of additional business training. You may cancel your Distributorship at any time by notifying Herbalife Nutrition in writing at ***********@*********.***. You may also contact Herbalife Nutrition at 866-***-**** for more information. Herbalife Nutrition may terminate your Agreement if it determines that you or others participating in your Distributorship have violated the Agreement. 4. Inventory Refund: If you decide to resign your Distributorship for any reason at any time, you are entitled to a full refund for any unopened product you purchased during the previous twelve (12) month period. The amount you will be refunded includes the cost of the product, any taxes you paid on the purchase, and the cost of shipping, both the initial delivery and return shipping costs. To obtain a refund please call Herbalife Nutrition at 866-***-**** or submit the refund form you may find at MyHerbalife.com (Repurchase of Inventory). 5. Self-employed: As a Distributor you are a self-employed independent contractor deciding, among other things, your schedule, how much time youwish to devote to your business, your expenses and methods of operation. As an independent contractor you are not an employee, agent, franchisee, fiduciary or beneficiary of Herbalife Nutrition or any other Distributor. You acknowledge that as an independent contractor, you will have no rights or benefits that an employee of Herbalife Nutrition may have nor will you make any claim to the contrary. B. UNDERSTANDING THE HERBALIFE NUTRITION BUSINESS OPPORTUNITY 1. Diligent Inquiry: A successful Herbalife Nutrition Distributorship involves hard work, diligence and development of business skills as your business grows. You agree to carefully review the Materials so you will be informed about the potential risks, benefits and Rules applicable to your Distributorship. 2. Compensation You Might Earn: The Statement of Average Gross Compensation is the only authorized representation of Distributor earnings, and you acknowledge that you are not relying upon any other written or oral information or representations about the financial results you might achieve. You are aware that you will earn no compensation or other economic benefit solely by enrolling or recruiting other Distributors. If you choose to build and maintain a sales organization by sponsoring other Herbalife Nutrition Distributors, you may receive payments from Herbalife Nutritionbased, among other things, on those Distributors’ profitable retail sales to their customers. This multi-level compensation opportunity is detailed in Herbalife Nutrition’s Sales & Marketing Plan, which is available at MyHerbalife.comor by calling Herbalife Nutrition at 866-***-**** (Sales & Marketing Plan).
3. The Only Required Purchase: The only required purchase to become an Herbalife NutritionDistributor is the IBP. All product purchases are optional. You are never required to purchase a minimum quantity of products, maintain an inventory, or attend meetings or events. Herbalife Nutrition believes that you can advance in the Sales and Marketing Plan without incurring debt. For more information, please see the Business Tools and Other Optional Expensesavailable at MyHerbalife.com or by calling Herbalife Nutrition at 866-***-**** (Business Tools and Other Expenses). 4. Sales Aids and Business Tools: We do not recommend that you purchase sales aids. In addition, you may not buy or sell, in any manner, sales leads or leads-related advertising. For more information please see the Business Tools and Other Optional Expenses found at MyHerbalife.com or by calling Herbalife Nutrition at 866-***-**** (Business Tools and Other Optional Expenses). 5. Sale of Products: By becoming a Distributor you are representing the Herbalife Nutrition brand, and you agree that you will promote the sale of Herbalife Nutrition products only in a manner that enhances the reputation of Herbalife Nutrition, your business and the Herbalife Nutrition businesses operated by other Distributors. Your advancement will only come from sales of Herbalife Nutrition product by you, or other Distributors that you might sponsor, to retail customers for their genuine consumption. 6. Leased or Purchased Commercial Locations: While it is not necessary to conduct your Herbalife Nutrition business from a commercial location, some Distributors lease or purchase a commercial location to, for instance, operate an Herbalife Nutrition Club, fitness facility or office. Operating from a commercial location involves expense and financial risk. Therefore, we require that before you lease or purchase a commercial location you must be an Herbalife Nutrition Distributor for at least twelve (12) consecutive months. You must also complete additional Herbalife Nutrition training, and prepare and retain a written business plan. Information about training and the business plan may be found on the Learning Center at MyHerbalife.com, or you may call Herbalife Nutrition at 866-***-****. C. INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION 1. Limited Revocable License: You are hereby granted, during the term of your Distributorship, a limited, revocable license to use Herbalife Nutrition’s trade name, logo, trademarks and certain intellectual property only to the extent expressly permitted under the terms of the Agreement or otherwise by Herbalife Nutrition in writing, and only in connection with the conduct of your Distributorship and for no other purpose. 2. Confidential Information: During the term of your Distributorship, you and your spouse will hold in strict confidence and trust for the exclusivebenefit of Herbalife Nutritionany trade secrets, formulas, business plans, customer lists, Distributor information, or any other confidential or proprietary business information, and any other information of commercial value provided by Herbalife Nutrition (“Confidential Information”). You acknowledge and agree that you will not use Confidential Information, directly or indirectly, for any purpose other than the conduct of your Herbalife Nutrition Distributorship and you will take reasonable care to protect Confidential Information.
3. Use of Your Image: You hereby authorize Herbalife Nutrition to record your image at Herbalife Nutrition events and you grant to Herbalife Nutrition a limited license to use your name, photograph, video image, personal story and information that you provide to Herbalife Nutrition, in Herbalife Nutrition promotional or other materials. You hereby waive all claims for payment for such use. D. ELECTRONIC DISCLOSURES
1. CONSENT TO ELECTRONIC DISCLOSURES
I agree that all documents, including but not limited to, this Agreement, as well as all notices, disclosures and records (collectively, “Disclosures”) relating to my account with Herbalife Nutrition may be sent to me electronically at the email address indicated by me in the account registration form or by viewing the Disclosures on Herbalife Nutrition’s website. Alternatively, Herbalife Nutrition may provide me with Disclosures via fax or in the mail.
2. WITHDRAWAL OF CONSENT TO ELECTRONIC DISCLOSURES I may withdraw my consent to electronic Disclosures in the future at any time without charge. To withdraw my consent, I may fax Herbalife Nutrition at 310-***-**** or write Herbalife Nutrition at P.O. Box 80210, Los Angeles, CA 90080-0210 and indicate my wish to receive all future communications in writing. Herbalife Nutrition will send me a confirming notice once it has processed my change request. 3. TECHNICAL REQUIREMENTS FOR ELECTRONIC DISCLOSURES To access Disclosures electronically and print copies of these Disclosures for my records, I must have Internet access, as well as access to a printer. I agree that I have access to the Internet and a printer or the ability to make hard copies of my information and records (the "Hardware"). Herbalife Nutrition uses a Secure Socket Layer (SSL) system that supports 128-bit encryption. In order to submit an Online Distributorship Application, you must have the hardware and/or software to support 128-bit encryption. Please make a copy of this Agreement, including the Online Distributorship Application and Agreement for your records. I may also save an electronic copy of this document to my hard drive. I may also obtain a copy of the foregoing from MyHerbalife.comby accessing My Office / My Profile from the drop-down menu, and clicking on View / Print My Application.
4. CONTACT INFORMATION
I agree to promptly notify Herbalife Nutrition of any changes in my address information by faxing Herbalife Nutrition at 310-***-****, by writing to P.O. Box 80210, Los Angeles, CA 90080-0210, or by accessing one of Herbalife Nutrition's websites and changing my personal information. E. ARBITRATIONAGREEMENT
1. Overview: Herbalife Nutrition will try to resolve any dispute amicably and informally. However, if there is a dispute that cannot be resolved informally, you and Herbalife Nutritioneach agrees, subject to Sections 2 and 3 below, to resolve the dispute solely and exclusively by binding arbitration. Arbitration proceedingsare designed to provide parties with a fair hearing that is faster and less formal than a lawsuit in court. Arbitration uses a neutral arbitrator instead of a judge or jury, allows for limited discovery, and is subject to very limited review by courts. Arbitrators can award the same damages and relief that a court can award. The following provisions are referred to as the “Arbitration Agreement.”
2. Jury and Class Action Waiver: You and Herbalife Nutrition both waive the right to trial by jury. Also, any arbitration under the Agreement shall takeplace on an individual basis; class or representative actions shall not be permitted. If the foregoing provision is, for any reason, found to be unenforceable, then the Arbitration Agreement shall be null and void (but the Agreement shall remain in full force and effect). 3. Scope: You and Herbalife Nutritionagree, with two exceptions, to arbitrate all disputes and claims between each other, including, without limitation, disputes or claims arising out of or relating to the Agreement, the Rules of Conduct, Sales & Marketing Plan decisions, relationships with other Distributors, and the purchase, sale or use of Herbalife Nutrition products, and regardless of whether the dispute or claim arose before your contractual relationship with Herbalife Nutrition. The two exceptions are: (1) either party may sue in court to enjoin infringement or other misuse of intellectual property rights; and (2) you may bring an individual action for monetary damages (but no other relief) in small claims court where permitted by law. 4. Applicable Rules: The interpretation and enforcement of this Arbitration Agreement is governed by the Federal Arbitration Act. Any arbitration that is commenced pursuant to this Arbitration Agreement is governed by the Commercial Arbitration Rules (“AAA Rules”) of the American Arbitration Association (“AAA”), except as modified herein, and will be administered by the AAA. The AAA Rules are available online at adr.org, by calling the AAA at 1-800-***-****, or by writing to the Herbalife Nutrition Notice Address, Office of the General Counsel, Herbalife International of America, Inc., 800 WestOlympic Blvd., Suite 406, Los Angeles, CA 90015. 5. Commencing Arbitration: Forms and instructions for giving notice and commencing arbitration can be obtained at http://www.adr.org, by calling the AAA at 1-800-***-****, or by writing to the Herbalife Nutrition Notice Address. If either you or Herbalife Nutrition are sued in arbitration, they may assert any counterclaims they may have against the other party.
6. Arbitration Fees: For any arbitration initiated by you in accordance with the AAA Rules, Herbalife Nutrition will pay all administration and arbitrator fees and will promptly reimburse you for any initial filing fee unless (i) you seek more than $75,000 in damages, or (ii) the arbitrator finds that your claim or demand for relief is frivolous or was brought for an improper purpose under the standards of Federal Rule of Civil Procedure 11(b), in which case the payment of fees will instead be governed by the AAA Rules and you must reimburse Herbalife Nutrition for any payments that would have been your obligation to pay under the AAA Rules. 7. Arbitration Procedure: All arbitration procedures, including, without limitation, representation by counsel, determinations of arbitrability, selecting and communicating with the arbitrator, discovery, confidentiality, pre- hearing conferences, and evidentiary hearings, will be governed by the AAA Rules. Note: As explained in the AAA Rules, the arbitrator shall determine the scope and enforceability of this Arbitration Agreement and the arbitrability of any disputes. Hearings will take place in the county (or parish) where you reside, unless the parties agree otherwise.
8. Arbitration Award: The arbitrator shall issue a written award in accordance with the AAA Rules, but may only award declaratory or injunctive reliefin favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual claim. Regardlessof whether attorneys’ fees and costs are recoverable by law, Herbalife Nutrition will pay your reasonable attorneys’ fees and costs if the arbitrator issues an award in your favor, unless Herbalife Nutritionmade a written settlement offer worth more than your award before an arbitrator was selected. Herbalife Nutrition will be responsible for its own attorneys’ fees and costs. 9. Amendments: No amendment or modification of the Agreement will apply to claims that have accrued or are otherwise known to Herbalife Nutrition at the time of the amendment or modification. F. MISCELLANEOUS LEGAL PROVISIONS
1. Transfers: Your Distributorship, or any interest in your Distributorship, may not be transferred or assigned unless authorized in writing by Herbalife Nutrition in its sole discretion as provided in the Rules. Herbalife Nutrition may assign this Agreement in its discretion.
2. Non-Solicitation: While you are a Distributor, neither you nor your spouse may solicit or promote the products or business opportunity of another multi-level marketing or direct-selling company to any Herbalife Nutrition Distributor, Preferred Member or customer.
3. Representations and Warranties:You represent and warrant that you have not been convicted of a crime involving dishonesty, moral turpitude, or violence to others. You acknowledge and agree that you are applying to become an Herbalife NutritionDistributor solely for the business opportunity and use of Herbalife Nutrition products and not for any other purpose.
4. Damages: To the fullest extent allowed by applicable law, neither party shall be liable to the other for any incidental, consequential, special, exemplary or punitive damages under any legal or equitable theory, regardless of whether the possibility of such damages is known by either party. 5. Waiver and Delay: No failure, refusal or neglect of Herbalife Nutrition to exercise any right, power or option under this Agreement with you or any other Distributor shall constitute a waiver of the provisions or a waiver by Herbalife Nutrition of its rights at any time under the Agreement. 6. Severability: Except as otherwise provided in paragraph 2 of the Arbitration Agreement, if any provision in the Agreement is found to be invalid, illegal, or unenforceable in any respect, it shall be severed from the Agreement and have no effect on the remainder of the Agreement, which shall remain in full force and effect. Further, there shall be added automatically as part of the Agreement a provision as similar as possible to the severed provision that would be legal, valid, and enforceable.
7. Choice of Law: The Agreement, and any dispute arising from the relationship between you and Herbalife Nutrition, shall be governed by California substantive law without the application of conflict of law principles, except that the interpretation and enforcement of the Arbitration Agreement shall be governed by federal law. 8. Indemnification: You will indemnify, defend and hold Herbalife Nutritionharmless from any suit, action, demand, prosecution or claim, including all costs, liabilities and damages, relating to or arising from your breach of the Agreement or the conduct of your Herbalife Nutrition Distributorship. Herbalife may, among other things, offset amounts you are owed to satisfy any obligations arising under this indemnity. 9. Claims Between Distributors: Herbalife Nutrition shall not be liable to you for any cost, loss, damage, or expense suffered by you directly or indirectly as a result of any act, omission, representation, or statement by another Distributor.
10. Binding Terms: The Agreement shall be binding upon and inure to the benefit of the parties, their heirs and permitted successors in interest.
11. Privacy and Data Protection: Herbalife Nutrition collects, uses, and shares personally identifiable information
(“PII”) of Distributors as set forth in the Rules and our Privacy Policy, located at http://www.herbalife.com/privacy- policy. We do so to fulfill our obligations under this Agreement and for the otherpurposes described in the privacy statements referenced. As a Distributor, some of your PII may be shared with other Distributors who are entitled to receive such information about persons within their downline. 12. Cancellation: Important Notice Regarding Right of Cancellation. You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right. (Notice of Cancellation) Herbalife Nutrition is a proud Member of the Direct Selling Association and a Signatory to the DSA Code of Ethics. What should I know about being an Herbalife Nutrition Independent Distributor? How can I
participate?
As an Herbalife Nutrition Distributor, you can participate in three ways:
• You can buy Herbalife Nutrition products at a discount for your ow n or household use.
• You can sell Herbalife Nutrition products to make a retail profit.
• You can recruit others w ho w ant to consume or sell Herbalife Nutrition products. If your only purpose in joining Herbalife Nutrition is to receive a discount on the products, you have the option to join as a Preferred Member. Most people join Herbalife Nutrition as Preferred Members at a cost of $34.95 and do not participate in the business. A Preferred Member may convert to Distributor and build a business at any time by buying a Conversion Pack for $59.95 and completing the required Distributor training.
What should
I know about
the business
opportunity?
• There are no required purchases other than the initial Distributorship kit also know n as the International Business Pack ($94.10) or International Business Pack - Super Starter ($124.10).
• Distributors enjoy setting their own schedule and choosing how and when to w ork.
• Most people start their Herbalife Nutrition business by w orking part-time and selling to people they know or people they meet as a way to make a little extra money.
• There are no guarantees that you w ill earn money. Like all business people, some Distributors w ill succeed, w hile some will not.
• Building a successful Herbalife Nutrition business takes skill, hard work, and time. How can I
earn money?
You can earn money by selling Herbalife
Nutrition products that you buy at a discount.
Your initial discount is approximately 25%.
The more you sell, the higher your discount,
up to a maximum of 50%. For example, the
initial discount on Formula 1, Herbalife
Nutrition’s best-selling product is shown
on the right:
• If you buy at this initial discount and sell 10 canisters at the Suggested Retail Price, passing along shipping and taxes, you w ould make $97.80 before expenses.
• You can also earn money from the sales of people you sponsor.
• You cannot earn money by only recruiting or only sponsoring other Distributors. How much
can I earn
in a typical
month?
In a typical month between July 2017 to June 2018, about 51,500 U.S. Distributors ordered products for resale from Herbalife Nutrition and about 46,500 of them earned money from their sales and the sales of those they sponsored. Here is w hat they earned in a typical month, before expenses.
What if it
doesn’t work
for me?
• You can cancel your Distributorship at any time. If you are in your first year, you can cancel and receive a full refund of your International Business Pack.
• If you cancel your Distributorship, you can return unopened products you purchased within the last year for a full refund. We even pay for shipping.
• Please contact 866-***-**** for more information. U.S. STATEMENT OF AVERAGE GROSS COMPENSATION JULY 2017 TO JUNE 2018 Published: 11/30/18
First year Distributors (14,000) All other Distributors (32,500) 50% (7,000) earned more than $140 50% (16,000) earned more than $315 Top 10% (1,400) earned
more than $840
Top 10% (3,250) earned
more than $3,400
Top 1% (140) earned Top 1% (325) earned
more than $2,800 more than $14,100
Suggested Retail price $41.20
Distributor price - $31.42
(with initial discount and
before shipping and tax)
Potential profit $9.78