INDIA Key Initiatives QA External

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1 Q1: What is a Charter Preferred Customer? A1: A Charter Preferred Customer is any current Associate who converts to Preferred Customer between January 18 th 2017 to April 17 th They will retain the discount they had at the time of conversion but lose their downline lineage (if any). Q2: What are the benefits of converting to a Charter Preferred Customer? A2: There are several benefits for Charter Preferred Customers: Simple conversion process Ability to increase discount if the Charter Preferred Customer converts at 25%, 35% & 42%. Those who convert at 50% can remain at 50% Access to preferred customer website Communication that supports your product usage: new product previews, special promotions to support your product results, special product-focused communications, education and support. Chartered Preferred Customers does not require Registration Certificate / License issued under FSSAI. Q3: How do I become a Charter Preferred Customer or Preferred Customer? A3: Any existing Associate with an Application date before 17 th January 2017 who decides to converts to a Customer between January 18 th 2017 to April 17 th 2017 will be given Charter Preferred Customer status. New Preferred Customers will be those who join on or after 18 th January Q4: Will an Associate be able to keep their discount if they convert to Charter Preferred Customer? A4: Charter Preferred Customers will retain their former Associate level discount when converting.

2 Q5: When will the Charter Preferred Customer (CPC) conversion begin? A5: From 18 th January 2017 the company will be reaching out to Customers who may be interested in converting to a Charter Preferred Customer. We will also be working with our leaders on this outreach program, anyone who converts between January 18 th 2017 to April 17 th 2017 will have the esteemed title of Charter Preferred Customer for as long as they remain with Herbalife, which comes with some incredible benefits: Simple conversion process Ability to increase discount if the Charter Preferred Custome r converts at 25%, 35% and 42%. Those who convert at 50% can remain at 50% Access to Preferred Customer website Communication that supports your product usage: new product previews, special promotions to support your product results, special product-focused communication, education and support. Chartered Preferred Customers does not require Registration Certificate / License issued under FSSAI. Q6: If I convert to Charter Preferred Customer can I use the volume I placed prior to converting to qualify to a higher discount? A6: Yes. You will have the ability to qualify to a higher discount by counting the volume you have purchased over the past 12 month. Q7: What is the highest discount I can achieve as a Charter Preferred Customer? A7: If at the time of conversion you are at 25% - 42% you have the ability to achieve 50% discount. All discount levels will be achieved using PPV. Q8: When can Associates begin to sign up new Preferred Customers? A8: From January 18 th 2017 new Preferred Customers will be able to sign up on in.myherbalife.com/paper Application Forms.

3 Q9: Will an Associate be able to keep their same ID number if they convert to Charter Preferred Customer? A9: Yes, whether they convert to Charter Preferred Customer or Preferred Customer the ID number will remain the same. Q10: If I decide to convert to a Charter Preferred Customer and later convert back to an Associate, is there a fee to convert and what will my discount be? A10: There will be no fee for Charter Preferred Customers to convert to Associate. Once they convert to an Associate from Charter Preferred Customer, they will retain their current discount. Q11: Will a Charter Preferred Customer have to requalify for their discount percentage annually? A11: A Charter Preferred Customer will need to achieve 2000PPV annually in order to retain their 50% Charter Status, 1000PPV annually in order to retain their 42% Charter Status and 500PPV annually in order to retain their 35% and 25% Charter Status. Those who do not achieve at least 500PPV will lose their Charter status and become a Preferred Customer. Q12: Will there be new subtypes for the Charter Preferred Customer Status? A12. BCM- Bronze Charter Customer (25%) SCM- Silver Charter Customer (35%) GCM- Gold Charter Customer (42%) PCM- Platinum Charter Customer (50%)

4 Q13: Will new Associates who sign up after January 18 th 2017 be able to convert to Charter Preferred Customer? A13: No, newly signed up Associate signed up after January 18 th 2017 cannot convert to a Charter Preferred Customer, however can convert themselves to a preferred customer. Q14: If an Associate decides to remain as an Associate and not convert to a Charter Preferred Customer, are there any additional requirements needed? A14: Yes, all new or existing Associates will need to complete the KYC and FSSAI requirements along with the mandatory orientation Training(existing Associates needs to complete the mandatory orientation training by no later than May 17 th 2017 and All New Associates joining from January 18 th 2017 needs to complete the mandatory orientation training within 30 days of joining.) Q15: When an Associate converts to a Charter Preferred Customer, will they be able to retain their downline? A15: If an Associate decides to convert to a Charter Preferred Customer, their downline will be moved to the next upline Associate. A Charter Preferred Customer is only a customer for personal consumption, they will not be able to sell or have a downline. Q16: Can a Charter Preferred Customer retail product? A16: Charter Preferred Customers cannot retail product. They can only Purchase products for personal consumption. Q17: Can a Charter Preferred Customer who is eligible for a 50% discount purchase from their upline? A17: Charter Preferred Customers who are eligible for 50% discount must purchase directly from Herbalife.

5 Q18: What methods are available to the Associate to convert to a Charter Preferred Customer? A18: Associate will be able to convert online at in.myherbalife.com or by manually submitting the conversion form along any one copy of duly attested proof of identity (PAN Card, Driver s License, Voter ID, Passport, Adhaar Card, Ration card if he/she is a main applicant) Q19: Will a Charter Preferred Customer have to requalify for their discount percentage annually? A19: A Charter Preferred Customer will need to achieve 2000PPV annually in order to retain their 50% Charter Status, 1000PPV annually in order to retain their 42% Charter Status and 500PPV annually in order to retain their 35% & 25% Charter status. Those who do not achieve at least 500PPV will lose their Charter status and become a Preferred Customer. Q20: Can a Charter Preferred Customer/Preferred Customer sell to friends at their Discount? A20: A Charter Preferred Customer/Preferred Customer can NOT sell product. Q21: Are there any order limits, products or SKUs that are restricted from purchase as a Charter Preferred Customer? A21: Charter Preferred Customers and Preferred Customers do not have any order limits, however, we will review and audit unusual order behavior that would be indicative of retail purchases. They will also be able to purchase all Product type SKUs. Promote SKUs will be limited to apparel and select single unit items. Literature SKUs allowed will include single unit Product Brochure, donations.