IBO Book - SF

8

GLOSSARY

Active Supervisor: A Fully Qualified Supervisor who has met all the requirements for either a 5-Stone Active Supervisor pin or 10-Stone Active Supervisor pin, within a consecutive three month period. First-time qualifiers receive an exclusive Herbalife Active Supervisor pin and a Certificate of Achievement in recognition of their efforts. BizWorks: A powerful online business toolset designed by Members for Members to help them grow and organise their business online, so they can make the most of their time offline. BizWorks is powered by MyHerbalife.com, and accessible through MyHerbalife.com 24 hours a day, seven days a week and is available on mobile. Business Methods: Daily Member activities that drive their business in retailing, recruiting and retention. Casa Herbalife Programme: HFF’s flagship Casa Herbalife program was introduced in 2005 to support existing charitable organisations that are changing children’s lives. The programme, named after the Brazilian orphanage Mark Hughes, Herbalife Founder and First Member, (1956 - 2000) and HFF built in 1998, has spread across the globe, helping to provide proper nutrition to children in more than 120 locations on six continents. For the latest information, check the Press Room on Herbalife.com or visit HerbalifeFamilyFoundation.org. Circle of Influence: People you already know such as family members, friends and work colleagues who you could contact as prospective customers. Commission: The difference between the discounted price paid by the Sponsor and the price paid by the downline Members. It is also known as Wholesale Profit. Customer: Anyone who is not an Independent Herbalife Member and purchases Herbalife ® products at retail price. Downline: All Members personally sponsored by you as well as all other persons sponsored by them. Earn Base Value: The value assigned to a product, in local currency, on which discounts and earnings are calculated. First-Level Member: All Members you personally sponsor are considered your First Level. Fully Qualified Supervisor: A Member who has met all the requirements for Supervisor qualification and is now entitled to all Supervisor privileges. Gold Standard Guarantees: Herbalife guarantees which go above and beyond industry standard consumer protections. Read them in full at Herbalife.com or on the Member Application and Agreement form. HBN – Herbalife Broadband Network (also known as the Video Library): The in-house Herbalife video production and online distribution unit. Herbalife Family Foundation (HFF): Established in 1994 by Mark Hughes, Herbalife Founder and First Member (1956-2000), HFF is a nonprofit organisation dedicated to improving the lives of children by helping charitable organisations provide healthy nutrition to children in need. Additionally, HFF often supports relief efforts in response to catastrophic natural disasters around the world. In 2005, HFF was proud to introduce the Casa Herbalife Programme. Today, HFF supports over 120 Casa Herbalife programmes in more than 50 countries and serves over 100,000 children daily. HFF is supported by Independent Herbalife Members, their friends and families and Herbalife employees.

HFF Humanitarian Award: Established in 2007, the HFF Humanitarian Award recognises Independent Herbalife Members who exemplify the Foundation’s mission and, through their outstanding involvement and dedication, have made a significant contribution to changing lives through community service. The honouree is announced at the Herbalife Honours event. HMP: Herbalife Member Pack. Independent Herbalife Member: Anyone who purchases an official Herbalife Member Pack (HMP) and submits to Herbalife a valid and complete Membership Application which has been accepted by Herbalife. L.A. Live: The location of the Herbalife principal executive offices in downtown Los Angeles. Level 10: Reaching your personal best – whatever that is for you. Lineage: All Members who are part of one organisation as a result of sponsoring or being sponsored. Nutrition Club: A supportive community setting for people who wish to focus on good nutrition through the consumption of Herbalife ® products. Production Bonus: A bonus of 2% to 7% earned on your entire downline organisation’s activity paid to eligible TAB Team. Profit, Retail: The difference between the discounted product price paid by a Member and the retail price paid by a customer. Profit, Wholesale: The difference between the discounted price paid by the Sponsor and the price paid by the downline Member. Also known as Commission. Qualifying Month: The month in which a Member meets the requirements for a specific qualification. Sales Premiums: A monthly payment ranging from 1% to 5% made to Fully Qualified Supervisors on the sales activity of their three levels of active downline Supervisors. Sales Premiums Points: Used for qualification purposes, this is the sum of a Supervisor’s Organisational Volume times their royalty earnings percentage. Sales & Marketing Plan (also known as the Marketing Plan): The compensation and advancement structure for Herbalife Members. Sponsor: A Member who brings another individual into Herbalife. Upline Organisation: Your Sponsor and their Sponsor and their Sponsor’s Sponsor, and so on. Volume, Encumbered: Volume being used by your downline for Supervisor qualification purposes. Volume, Personally Purchased: The volume from orders purchased directly from Herbalife using your Herbalife Identification Number. Volume, Unencumbered: Volume not being used by your downline for Supervisor qualification purposes. Volume Point: A point value assigned to each Herbalife product that is equal in all countries.

72