GUIDELINES

where friends of good nutrition meet every day

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Contents

INTRODUCTION

Mark Hughes’ Vision ..................................................... 03

Nutrition for a Better Life................................................. 04

World-Renowned Scientific Support .............................. 05

Nutrition Club Beginnings .............................................. 06

The Nutrition Club Concept ........................................... 07

NUTRITION CLUB OPERATION GUIDE

Overview ...................................................................... 08

Location & Licences ...................................................... 09

Premises & Preparations ............................................... 10

Recruiting Members ...................................................... 11

Roles & Responsibilities ................................................ 12

Daily Procedures ............................................................14

Product Training & Nutrition Information ......................... 16

Product Retailing ........................................................... 17

Training & Recruiting ...................................................... 18

Training Recommendations ........................................... 20

Checklist ....................................................................... 21

Summary of Important Rules ........................................ 22

Nutrition Club Do’s & Don’ts .......................................... 24

Frequently Asked Questions .......................................... 26

NUTRITION CLUB RULEs

Section 1 ....................................................................... 30

Section 2 ....................................................................... 33

Section 3 ....................................................................... 34

Section 4 ....................................................................... 35

Section 5 ....................................................................... 36

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Mark Hughes’ Vision

In 1980, Mark Hughes had a vision to achieve a healthier world, one person at a time.

Today, Herbalife is in 75 countries around the world.

Nutrition Clubs started in Mexico with the purpose of taking Mark’s mission and vision to every community.

There are now more than 71,000 Nutrition Clubs worldwide!

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Nutrition for a better life

Commitment to Quality ProductsFor over 30 years Herbalife has been dedicated to developing innovative, healthy products that comply with the highest research, development and manufacturing standards in the industry:

• Only the finest raw materials• Rigorous product testing• Highest-quality policies and procedures• Precise formulation and labelling• Most trusted contract manufacturers

Science matters to Herbalife and we focus on uncovering it and turning it into tangible products that work for you, through new product development and keeping current products as powerful as ever. As a leader in nutritional science, Herbalife is committed to further development.

We combine the best of science and nature to offer you the

highest-quality products, endorsed by distinguished

doctors and scientists.

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Steve Henig, Ph.D.

Chief Scientific Officer, Herbalife; Former Board Member of the International Life Science Institute

David Heber, M.D., Ph.D.

Chairman of the Herbalife Nutrition Institute and Nutrition Advisory Board, Herbalife; Director, Center for Human Nutrition, UCLA*

7* Titles are for identification purposes only. The University of California does not endorse specific products or services as a matter of policy.†The Nobel Foundation has no affiliation with Herbalife and does not review, approve or endorse Herbalife® products.

Luigi Gratton, M.D., M.P.H.

Vice President, Nutrition Education, Herbalife; Clinical Physician at the Center for Human Nutrition in the Risk Factor Obesity Program, UCLA*

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Lou Ignarro, Ph.D

Nobel† Laureate in Medicine; Member of the Nutrition

Advisory Board, Herbalife

World-Renowned Scientific Support

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Nutrition Club Beginnings

A Nutrition Club is a business tool developed by Enrique Varela and Graciela Mier based on many years of experience. Thinking about those who could not afford the products, they put all their efforts into recruiting new members and building successful organisations, and committed themselves to developing a system to create loyal customers.

Members started experiencing nutritional benefits, and the results were widespread. Some members bought products to use at home and visited the Club almost every day to enjoy its culture and social activities. Many members then invited their family and friends to the Club. Some members then bought products at the discounted price by becoming Distributors.

For those club members who had benefited most from the products, they asked them if they too were interested in opening their own Club because they already had the passion and enthusiasm, as well as an understanding of the philosophy of the Club. These Distributors were well aware of how the Club operated since they had trained for some time at the Club whilst participating in the Club’s activities. The sponsors and downlines then, in turn, supported them to open and operate their own Club.

As a result, Nutrition Clubs have become a successful business tool and approximately 65,000 Nutrition Clubs are now operating worldwide.

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The Nutrition Club Concept

What is a Nutrition Club?A Nutrition Club is a place where people can share and taste the Herbalife® products in a relaxed and social atmosphere. The location of a Nutrition Club can be either at home or in commercial premises. The primary objective of a Nutrition Club is to provide a social gathering with a focus on good nutrition for members and the key to its success is its interactive social setting. Most members become retail customers at first - after trying the products, they will buy them for personal consumption.

ProductsThe following products should be served:

• Formula 1 Nutritional Shake Mix Provides the essential minerals and vitamins your body requires daily in a meal replacement shake.

• Instant Herbal Beverage A refreshing tea that provides energy whenever you need it during the day.

• Herbal Aloe Drink or Concentrate Soothes the stomach naturally and promotes a healthy digestive system.

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To be successful in opening your first club and growing the Nutrition Club business it is important to understand the philosophy that has worked for clubs around the world.

This philosophy is at the heart of the club’s success and includes the following:

• The primary goal is to provide a social gathering with a focus on good nutrition.

• The club’s social atmosphere is a key to its success.• Members usually first sample the products before

deciding to purchase them for home use or deciding to become a Distributor.

• After trying the products, most members become regular retail customers, buying the products for their personal use and/or for their family.

• Some members choose to become Distributors and/or to open their own club.

Nutrition ClubOperation Guide

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Location & Licences

A Nutrition Club can be operated from home, but the location should be large enough to accommodate all members. Remember, a Nutrition Club is not a retail store, agency, café or restaurant.

For non-residential locations, a Nutrition Club should:• be located in a commercial space on a busy street• be near schools, hospitals, bus stops, stores, churches or office buildings• be located in a convenient location within easy walking distance of local amenities.

An aspiring club operator must notify the Herbalife Australasia office of their intent to open a Nutrition Club. This can be done easily through the Nutrition Club websiteapacnc.myherbalife.com or through MyHerbalife.com.au. In order to complete the notification process you will also need to upload photos of the interior and exterior of your club. Once all information has been received, Herbalife Australasia will send you a gift.

Prospective club operators must first contact the appropriate local, state, or national government agencies in order to acquire all necessary business, tax and health permits and/or licenses. In connection with this process, the prospective operator must comply with all inspection requirements or requests and make any requested or required improvements in a timely manner.

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Premises & Preparations

A Nutrition Club must have enough space to accommodate all Club members whether it is a commercial or a home Club. If the Club was started at home and member numbers have increased, it must still have enough space to accommodate new members.

The premises of the Club must:• be hygienic and have enough space for a kitchen• have blenders (for each flavour) and a kettle/urn to make shakes and tea for all members fast and effectively• have enough quantity on hand of Instant Herbal

Beverage, Formula 1 Nutritional Shake Mix and Herbal Aloe Drink or Concentrate

• have fresh or frozen fruit available for the shakes• utilise unbranded plastic cups• have access to a clean and hygienic bathroom• have an area for registration• have an area space for sharing nutrition information

• have an area for a product display (where members can see the products during the meeting)

• display product posters, Herbalife company information, Mark Hughes and Michael O Johnson imagery and sports sponsorships (eg. FC Barcelona)

• do not use the Herbalife logo or branding on the outside of the Nutrition Club. Herbalife branding and product display should be used only on the inside and should not be visible from the outside.

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Recruiting Members

The best way to make people aware of your clubs is by word of mouth:• Invite neighbours, friends and relatives to sample the products• Ask them to invite their friends and family members• Invite parents of students who go to school nearby to experience the social atmosphere of a Nutrition Club• Ask for help from family members and friends to help build your business• Hand out your invitations• Invite people to discuss nutrition• Invite people to a weekly or monthly party.

You are not permitted to invite people by using thefollowing recruiting methods:• Posters advertising your Nutrition Club• TV or radio commercials for your Nutrition Club• Newspaper, magazine or telephone advertisements for your Nutrition Club• Outdoor signage or branding of your Nutrition Club• Public flyers for your Nutrition Club (only face-to-face invitations are permissible).

When people visit the Club and experience the benefit of good nutrition, they then deliver the message of its benefits to people around them, which in turn grows the Club. Many members recommend their family members or friends to join the Club. Reward by cash or cash equivalent by a Club Operator for introducing people to the Club is strictly prohibited.

If you’re operating a Club from home, the Club Operator and team all have responsibilities. Whether the Club is at home or at the office, the responsibilities are the same.

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The Club Operator / Herbalife Independent Distributor• Put your efforts into introducing the Club and recruiting new members• Monitor the overall operation of the Club and make the Club a comfortable and pleasing environment for members• Make sure the kitchen is always clean and that it is quick and easy to prepare shakes and tea• Train members on nutrition and product information and collate their experiences• Promote the product efficacy and provide products to members to improve their nutrition and well-being• Provide information on the earning potential and how to become a Distributor• Ultimately support members to open their own Clubs. Registration Assistant • Responsible for collecting membership fees and guiding members to a seat.

Product Preparer • Makes sure that the kitchen operates in a hygienic manner. For example, the preparer must adhere to the local State’s Food Handling Guidelines, which may entail wearing disposable gloves• Uses disposable cups• Prepares shakes and tea.

Product sales• If a member wants to buy products for personal consumption, Distributors are able to sell the products at their Nutrition Club. Ensure a record is kept for the sold amount. Remember, Nutrition Clubs are not designed to be retail outlets, you may only retail to regular members.

Roles & Responsibilities

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Success StoriesSuccess stories are the key to success in Herbalife. The primary purpose of using the product is to improve healthand well-being. If members use the products and deliver its benefits to other people, then other people will also wantto use the products and it reinforces trust in the quality of the products. Stories can be shared by simply having aconversation, or can be in poster/flyer format on the wall.A Nutrition Club is a place for sharing stories of product benefits. To prevent misunderstanding or exaggerating product information, the below information should be posted in a prominent area:

Herbalife® products are not intended to diagnose, treat, cure or prevent any disease.

Nutrition InformationYou should provide nutrition and health information within the Club and discuss issues regarding the global obesityepidemic and health problems caused by nutritional deficiency and inappropriate dietary and lifestyle patterns.

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Daily Procedures

Members who visit a Nutrition Club for the first timeMembers should pay their membership at the registration desk near the entrance. Information on the membership card is very important to manage members and for collecting the membership fee. All visitors should pay the membership fee although the first visit can be free to experience the products. Membership fees can also be paid in advance.

The Club Operator should record every visit by every member. A simple notebook can be used to keep the visiting records. Log the member’s details which should include name, address, sponsor, contact number and purchased products, as applicable. If notebook record-keeping becomes difficult when membership grows, then please use computerised records. Information like this is invaluable for providing great customer service.

Ensure that the membership fee is paidEach member should receive coupons for Instant Herbal Beverage, Formula 1 and Herbal Aloe and members should redeem their beverages with the coupons. Instant Herbal Beverage, Formula 1 Nutritional Shake Mix and Herbal Aloe should be displayed so that members can look over the ingredients of what they are drinking. Instant Herbal Beverage, Formula 1, Herbal Aloe drink and other products for adults should be provided only to members over the age of 14.

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A Nutrition Club should be a comfortable, interesting and social meeting placeMembers should feel comfortable while they are sitting, talking and relaxing with others. After drinking their tea, Formula 1 shakes should be provided to members. Members can share information by exchanging product or nutrition information or asking questions on nutrition, health and products. Make sure your members feel welcome at all times and in no rush to leave.

Do not force members to purchase products or join as DistributorsThe advantage of a Nutrition Club is that members’ experiences on product benefits can be easily shared. By sharing such stories with other people, more people will join the Club. If more people join the Club, members will naturally purchase products themselves. If a first-time visitor wants to purchase products, let them sample the products first before selling the products.

The Club Operator should guide the visitor to have interest in the products and feel the nutritional advantage. This also applies to members who became Distributors and now want to operate their own Nutrition Club. Ideally, they should first understand the operation of a Nutrition Club as members and experience the benefits of the products.

Daily closingMake sure you clean up for the day, update the members’ visiting records and prepare for the next day.

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It is important to inform members that Herbalife® products are unique and of high quality, and are only available through Herbalife Independent Distributors. The main objective of a Nutrition Club is to encounter a feeling of general well-being after consuming the products.

Learning about nutrition is a very important part of membership. The primary objective of the Club is to be a social gathering that brings people together who are interested in good nutrition and to improve the general well-being of members. Explaining the significance of nutrition is therefore vitally important. Nutrition information should be kept simple and interesting. Posters, photos, DVDs, or powerpoint presentations can be used, for example. Club Operators should explain the issues about global obesity and the health problems caused by unbalanced nutrition.

Discussing the importance of healthy skin should also be addressed. Trainings should be enjoyable and easy to understand. Remember to point out that Herbalife® products are not medicine so you should make sure that members know that Herbalife® products are not intended to diagnose, treat, cure or prevent any disease.

Product Training & Nutrition Information

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Product Retailing

The secondary objective of a Nutrition Club is to let members purchase the products for their personal or family use. Ideally, this happens when members experience their own product results. You should display the products, but only inside the Club and they should not be seen from the outside.

Only members can purchase products within the Club and the products available at a Nutrition Club must be authorised for sale by Herbalife in Australia and New Zealand. Encourage members to purchase products for themselves and for their friends and family to help improve their health and vitality.

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Training & Recruiting

Nutrition Club OperatorsIt is recommended to hold a training meeting on a regular basis when all Club Operators and Central Club leaders in the region gather. Central Clubs are the bigger Club Operators and are generally the first operators in that region and serve more as a training facility. The purpose of the meeting is to share new ideas and discuss the status of Clubs including business ethics and philosophy. This meeting helps to build a close relationship between Club Operators and encourage the sharing of ideas.

RecruitingAnother objective of a Nutrition Club is to recruit new Distributors. If members experience product results then they often inquire about the business opportunity also. Explaining the business opportunity during the promotion period and training meetings is important. The business opportunity and marketing plan should be explained in the simplest way possible.

DuplicatingIf members want to open their own Nutrition Club, they should fully understand the operation and philosophy of a Nutrition Club. It is also important to allocate enough time for training and education if they decide to open their own Club. They should feel they are part of a successful organisation and fully supported by their sponsors.

Herbalife Opportunity MeetingA second meeting should also be held, which should be a general meeting to introduce Herbalife as a business opportunity and conducted as a HOM. Club members, Distributors and guests can attend this meeting. This meeting will provide more information and give a better understanding of the company. Also, the attendees will learn about the products, purchasing methods and business opportunities. In addition, they will hear stories from other attendees.

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Monthly PartyClub members, Distributors and guests can all join in the party! The purpose of the party is for attendees to relax and enjoy themselves while listening to others’ stories and supporting new Distributors and members. The party can be convened in a Central Club or in a larger location, whichever is more convenient. You should allow for a registration desk, enough chairs, a product display, tables for participants, AV equipment, and an area where tea and shakes can be prepared.

Before organising the party, roles and responsibilities should be assigned and an event agenda should be prepared. Herbalife can be introduced to participants through DVDs of Mark Hughes and/or Michael O Johnson. The sharing of experiences and stories should also be conducted during the party. A recognition ceremony for Distributors who achieved new levels in the Marketing Plan can also be scheduled.

The party should be made fun by including music and dance. Remember, this party is for members and Distributors only to acknowledge and reward them for their efforts. The party atmosphere should be enjoyable with lots of laughter and conducive for making new friends. Ultimately, this party should deliver the special feeling of Herbalife - by being fun, simple and magical – and delivering Mark Hughes’ mission of bringing good nutrition to the world.

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Training Recommendations

If you are thinking of opening your own Nutrition Club, the following training recommendations and checklist will help you have a successful Nutrition Club. Remember, you should be an Herbalife Independent Distributor to open your Club.

Training Recommendations• InformyourSponsoryouwanttoopenyour own Club• VisitotherNutritionClubstolearnabouttheir

daily operations• FamiliariseyourselfwiththeNutritionClubRules.• NotifyHerbalifeCorporateofyourintentiontoopen

a club as they may be able to provide you with valuable advice

• ListentomonthlyNutritionClubTrainingCalls• TakeMarkHughes’goalforgoodnutritionaround

the world, one person at a time• Makesuretopreparetheproductsusingthe

recommendations to the right.

Recommended recipes Herbal Aloe Concentrate • 3capfulsHerbalAloeConcentrate• 120mlwaterTea • ½teaspoonInstantHerbalBeverage• 200-250mlhotorcoldwaterShake • 28gofFormula1NutritionalShakeMixwith300mlof

skim or soy milk (fruit is optional)• 2icecubes(optional)

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Checklist

Before your Club opening:

Tell your neighbours you are opening a Club. ___________________________________________________________________________________________

Purchase 250-300ml cups/shakers. cups (to accommodate the recommended serving sizes for the Herbalife® products listed on the previous page). Be sure you have a blender, water, napkins and a good supply of Herbal Aloe Concentrate or Drink, Instant Herbal Beverage, Formula 1 Nutritional Shake Mix and Personalised Protein Powder. ___________________________________________________________________________________________

Download Herbalife Nutrition Club® invitations, and send them out at least three days in advance. Also purchase other useful tools to attract new members and promote your Club. ___________________________________________________________________________________________

Invite your Sponsor to your Club opening to share his or her experience and to offer the support you need. ___________________________________________________________________________________________

Ask your family, friends and neighbours for referrals to support your business. ___________________________________________________________________________________________

Make sure your Club location is clean and sanitary. ___________________________________________________________________________________________

On the day of your Club opening:

Wear the button or other Herbalife accessories – remember, you are the brand. ___________________________________________________________________________________________

Do a final check of your materials. ___________________________________________________________________________________________

Do a final check of your Club location to make sure it is clean, especially the kitchen where you will be preparing the shakes and teas. ___________________________________________________________________________________________

Apply everything you learned from the Nutrition Club trainings. ___________________________________________________________________________________________

Welcome all your guests with a big smile. ___________________________________________________________________________________________

After you have read the checklist, tick the corresponding boxes and use the lines for your notes.

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Summary of Important Rules

Operating a Nutrition Club will spread the ideology of Mark Hughes, the founder of Herbalife, to provide balanced nutrition to everyone in the world and plays a pivotal role in achieving the vision of Herbalife, ‘Changing people’s lives’.

Please read and understand the Nutrition Club Rules in addition to this summary. The objective of these rules is to protect the businesses of Distributors. Violating the policy may result in restrictions to your Distributorship. Below is a summary of some important items.

Company PolicyAll Distributors must comply with Herbalife rules and procedures. If a Nutrition Club is operated against Herbalife rules then the business will have a negative influence and the reputation of all Distributors will also be damaged. The same rules will apply to all Distributors. Herbalife does not accept responsibility for any possible issues arising from operating a Nutrition Club.

QualificationsAny Herbalife Independent Distributor is permitted to operate a Nutrition Club.

Opening a Nutrition ClubAll Nutrition Club Operators should notify Herbalife Australasia of their Club and this procedure is now available through the Nutrition Club website, apacnc.myherbalife.com.

Employees should not be hired to operate the Club; all operators must be Distributors. The named Club Operator must operate the Nutrition Club.

NotificationYou should notify Herbalife of your intention to open a Nutrition Club by submitting a Nutrition Club notification form online. You should also upload photos of the interior and exterior of your Nutrition Club within 30 days of submitting your notification.

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Membership feeNutrition Club Operators may charge a single, comprehensive daily fee to cover all of their operational costs, but they may never charge a specific fee for Club offerings such as shakes and teas. Therefore, product menus and price lists are not allowed. A fee of AUD $7.95 or NZ $7.90 has been recommended by the Australia and New Zealand Nutrition Club Committee.

Names and SignageNo branding, posters, health information and banners can be posted on the window or door or on the outside of the Nutrition Club except for a sign indicating the Club name. If the inside of the Club is visible, then blinds or curtains must be installed. Please note that the use of unbranded window and door coverings is mandatory.

A Nutrition Club is not a retail store, agency or restaurant, therefore the following terms are not acceptable for a name: ‘café’, ‘restaurant’, ‘bar’, ‘mart’, ‘store’ or ‘shop’, or any word that implies food or shakes are being served inside e.g. ‘shake or smoothie’.

The name of the Club is permitted on the outside of the Club as signage, however tag lines are not permitted e.g. ‘Nutrition for a Better Life’.The terms, ‘Nutrition Club’, ’Herbalife’ or any other Herbalife intellectual property, product names or brands,or the word ‘shake’ or any other words that imply or signal that Herbalife® products are available at that location must not be used. The terms like ‘Chain,’ ‘Franchise,’ ‘XX Branch’ cannot be used for a Nutrition Club. Herbalife is a direct selling company and a Nutrition Club is a business method. The Club should not be misrepresented as being a franchise or a chain.

A Nutrition Club is not a cafe or restaurant so a ‘price list’ should not be displayed. However, a menu depicting flavours is permitted. Signs that depict ‘Open / Closed’ or opening hours may not be displayed on the exterior of the Club as this might encourage walk-in traffic.

AdvisoryThe operator must display the Nutrition Club Advisory inside the Club.

ProductsProducts served to members in a Nutrition Club should be Formula 1 Nutritional Shake Mix, Instant Herbal Beverage and Herbal Aloe Concentrate or Drink.

Product DisplayThe display of Herbalife® products inside the Club is permitted, but it is for members’ reference only. Herbalife® products cannot be displayed inside if they can be seen from the outside of the Club as then the Club could be mistaken for being a retail store.

Herbalife® products are dietary supplements, not medicine. Wording that implies medical treatments or medical results including exaggerated advertisements should not be displayed inside or outside of the Club.

RetailingAll Nutrition Clubs must comply with the retail prices set by Herbalife and cannot be discounted. In order to sell products for retail purposes, all usual rules and regulations will be applied. All Herbalife® products may only be sold unopened and in their standard Herbalife packaging, as advertised in the official Herbalife® Product Catalogue. Only Herbalife® products authorised for sale in Australia and New Zealand may be provided for consumption or sold at retail price while operating a Nutrition Club.

Herbalife® products may not be sold individually. Only sealed Herbalife® products can be sold in Nutrition Clubs, (i.e. only the full sized product may be sold – you may not sample individual tablets etc. Protein Bars, Formula 1, Instant Herbal Beverage and Liftoff™ sachets are acceptable for sampling only – individual sachets/ bars may not be sold.

Herbalife® products can only be prepared, served and consumed in accordance with the instructions on the printed labels of the product containers, which may be shown to the members upon request. The take away of shakes is permitted but is limited to one (1) serving of shake or tea in an unbranded container for the personal consumption of that Club Member.

If a Club Member attributes a partial or complete recovery from any disease or medical condition to the products, the Club Operator must always respond that the products provide a good source of nutrition, but they are not intended to diagnose, treat, prevent or cure any disease or medical condition.

RecruitingIf members want to become Distributors, they will need to fill out a Distributorship application form. The same rules and regulations apply to Herbalife Independent Distributors and Nutrition Club Operators.

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4. PRICE SIGNAGE NOT ALLOWEDSince Nutrition Clubs are not retail stores or food establishments, posting of pricing is inconsistent with the Nutrition Club model and is not allowed. Nutrition Club Operators may post a list of flavors of complimentary shakes and tea samples.

1. WINDOWS AND DOORS MUST BE COVEREDNutrition Clubs operating in non-residential locations must ensure the interior of the Club is not visible from the exterior, by using window and door coverings.

2. NUTRITION CLUB EXTERIORNutrition Clubs may not, for any reason, have tables and seating areas on the exterior of the club. Nutrition Clubs are social gatherings, bringing people together with a focus on good nutrition. They are not retail stores outlets or food establishments, nor are they restaurants or take-away establishments.

3. EXTERIOR SIGNAGE THAT IS NOT ALLOWEDNutrition Clubs may not display any type of payment options, such as Visa, Master Card or American Express. Signs that depict Open/Closed my not be visible from the exterior.

Nutrition ClubDo’s and Don’ts

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8. NO EXTERIOR ADVERTISING. USE OF HERBALIFE LOGOS OR IMAGES IS NOT ALLOWED.Nutrition Clubs must not present any kind of advertising on the exterior of the Nutrition Club, and the inside of the Nutrition Club may not be visible from the street. Herbalife logos may not be used on the exterior of the club.

5. NO SELLING OF LOOSE TABLETS OR PRODUCTSDo not sell loose tablets or products that are not packaged for individual sale. All Herbalife® products must be sold unopened and in their standard Herbalife packaging to ensure that consumers receive the nutritional and consumption information.

6. UNBRANDED SINGLE SERVING TAKE-AWAY ONLYNutrition Club products must be consumed inside the Club. Nutrition Club members may take away one single serving of shake or cold tea per day from the Nutrition Club, only in unbranded containers.

7. NO INAPPROPRIATE INGREDIENTSNutrition Club operators may not mix any Herbalife® products with alcoholic beverages, medications or other inappropriate ingredients.

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Frequently Asked Questions

What is a Nutrition Club?Nutrition Clubs are social gatherings where members focus on good nutrition and regular exercise in order to achieve optimum health.

Why should I consider operating a Nutrition Club?Nutrition Clubs are convenient ways to create a community experience where members can familiarise themselves with Herbalife® products in a social atmosphere. They are informal settings where members and guests can talk about the products, sample complimentary Herbal Aloe drinks, shakes and teas and learn about the business opportunity. Nutrition Clubs can be easily adopted with other business methods you may already be using and they can be operated from a non-residential or a residential location (subject to local laws and regulations).

Who can operate a Nutrition Club?Any Herbalife Independent Distributor can operate a Nutrition Club.

I am interested in opening a Nutrition Club. Where should I start?Your first point of contact should be to download a copy of the Nutrition Club Manual and read and understand the Nutrition Club Rules. There is also information on MyHerbalife.com.au and on the Nutrition Club website apacnc.myherbalife.com. Make sure you join in on training calls and listen to previous ones in the audio acrhive.

You should make sure you visit existing Nutrition Clubs in your area in order to learn from other Operators. To find a Nutrition Club near you, contact your Herbalife Sponsor or the corporate office. You can email Herbalife directly at dmo@herbalife.com for further information.

Once you’ve decided that this business method is right for you, you should determine the best practices that fit your personality and notify Herbalife about your intention to open a Nutrition Club.

I have decided to open a Nutrition Club. What should I do?You should notify Herbalife of your Club online at apacnc.myherbalife.com as a Club Operator and submit the Club details and photos to Herbalife within 30 days including the planned opening date. If it is not submitted, the Club will not be eligible for the welcome pack or notified of any trainings or announcements.

Do I need to notify Herbalife when opening up a Club?Yes. By providing us with your Nutrition Club information, you will allow us to provide you with the most up to date collateral, rules, and regulations and keep you posted on any new developments. You can notify us of your club on apacnc.myherbalife.com. Only one Distributor, the Primary Nutrition Club Operator, should submit a NotificationForm to Herbalife for each Nutrition Club location. You will also receive a free Welcome Pack when your notification has been completed successfuly.

How do I submit my Nutrition Club photos?The photos of Nutrition Club can be uploaded in the Club Operator’s section after logging on to the Nutrition Club website. The required photos to be submitted need to include a full view of signage, and of the outside and inside of the Club. The outside and inside photos must illustrate the entire premises. If the photos do not meet the requirements, you will be asked to submit the photos again.

What are the most important things I should do in order to operate a successful Nutrition Club?Participate actively in your local training system at STSs. Always remember that your mission should be to provide excellent service and take Mark Hughes’ message around the world one person at a time.

How much can I charge for membership to my Nutrition Club?A daily, weekly or monthly membership fee may be charged to cover operational costs, for example,rent and utilities. Membership fees must not be represented as the price or cost of products offered tomembers or guests for consumption, nor may they be in exchange for services offered (such as seminars or classes). A fee of AUD $7.95 or NZ $7.90 has been recommended by the Australia and New Zealand Nutrition Club Committee.

What can I name my Nutrition Club?Names of Nutrition Clubs must not include the words: ‘Herbalife’, ‘Mark Hughes’, ‘Nutrition Club’ or any Herbalife product names. Other unacceptable terms are: ‘café’, ‘restaurant’, ‘bar’, ‘mart’, ‘store’, ‘branch’ or ‘shop’. This is not a complete list, so it is important to check with Herbalife Corporate before opening your Nutrition Club. You can email them at dmo@herbalife.com.

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What days and hours can I open my Nutrition Club?You can operate a club any day and at any hour that works best for you and your members, but always remember that you must be respectful of your neighbours when operating your club from home.

Can I operate my Nutrition Club from my home?Yes, but remember to be a good neighbour. A few Distributors have had complaints from neighbours and even local authorities because of heavy parking congestion, heavy foot traffic and loud noise.

What is a Commercial Nutrition Club?A Commercial Nutrition Club is a club, which is somewhere other than a private home (or apartment). In order to operate a Commercial Nutrition Club you will need to contact the city in which you plan open the club and obtain a licence and or permit. You will also likely be subject to health inspections from the council, the same as all other businesses, and are likely to require Public Liability insurance.

Do the same rules apply to Commercial and Central Clubs as for a Home Clubs?Yes, the same rules apply to both Commercial and Home Clubs.

What food and health regulations do I need to know?It is the responsibility of the Nutrition Club Operator to abide by their local State’s Food Handling Guidelines. You can usually download these on the State Government’s Food Standards website. In addition, every Club Operator must post a Hygiene and Sanitary Practices Advisory in the Club which is contained in the Nutrition Club Manual.

Do I need a licence from the Council to open a Home Nutrition Club?Possibly - it is your own responsibility to investigate local legal requirements to better understand if your home-based club may require a licence.

What products should I serve at my Nutrition Club?Complementary products served at Nutrition Clubs may include Herbal Aloe Drink, Instant Herbal Beverage and Formula 1 Nutritional Shake Mix in a variety of flavours.

What shake flavours can I use?You can serve any flavour that is available for sale in Australia or New Zealand, but please keep in mind that if you only have one blender it will need to be thoroughlywashed every time before preparing a new flavour to maintain optimum hygiene levels.

What supplies do I need?Have enough blenders to prepare complimentary beverages. Ensure you have enough Herbalife® products and supplies, such as non-branded disposable cups on hand to serve members and guests. In addition, always use purified (or boiled) water in preparing complimentary beverages. Make your Nutrition Club a comfortable setting to socialise and learn about good nutrition.

Can I add fruit to the shakes?Yes. It is up to the club owner if he/she wants to add fruit to a shake, but please keep in mind that the contributionfee should not change in order to do so.

Can I sell individual tablets, bars, soy-nuts or Formula 1 sample packets?No. These products and all others are not permitted for individual resale. It is required that products be in theiroriginal or standard packaging for retail sales. You may, however, offer a sample of a protein bar.

How many members can I have at my Nutrition Club?There is no limit to how many members you can have, but we recommend that you have no more than 15-20 at one time, in a home club environment. This will help maintain noise to a minimum level. You should also respect your neighbours and invite them to participate.

Can I get help to run my Nutrition Club?Yes. You may want to team up with other Herbalife Independent Distributors in your organisation or crossline to help support your Nutrition Club. Remember, only Herbalife Independent Distributors may assist you in your Club.

Can I hire someone to work in my Nutrition Club?No. However if you have a trained Distributor in your downline you can assign them to cover for you in case of emergency. This will ensure they follow the rules for a compliant Nutrition Club.

What can I display inside my Nutrition Club?Nutrition Club Operators must display the Nutrition Club Advisory and Advisory for Nutrition Club Operator, which are available in the Nutrition Club Rules included in the Career Manual or can be downloaded from MyHerbalife.com.au or the Nutriton Club website. They are also included at the back of this Guide. Posters and product displays are allowed, but the interior of the Nutrition Club must not be visible from the outside of the Nutrition Club.

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What can I display on the outside of my Nutrition Club?Nutrition Clubs must use unbranded window and door coverings to ensure that the interior of the Nutrition Club is not visible from the exterior. Doors must remain closed. In short, the exterior of the Nutrition Club must not be used to attract passers-by, therefore tables and outdoor seating are not allowed. Open/closed, opening hours and credit card signs or notices are also, therefore, not allowed.

Do I need to display the official Nutrition ClubCertificate in the Club?Yes, this allows customers and members to know that you are abiding by the Nutrition Club Rules in Australia and New Zealand and have notified Herbalife of your Club. You will be sent a certificate when all your details and photos have been uploaded to the website.

Do I need to display the Nutrition Club Advisory in my Club?Yes. At least one Herbalife Independent Distributor must accept full responsibility for and oversee all operations of each Nutrition Club and ensure the Advisory indicates the name, ID number and contact information for the Club. This Distributor must be present during all Club sessions, except for short-term absences when attending Company sponsored meetings. If absent, the operator must assign a Distributor who they personally trained, to oversee Club operations in-person. You can download the most recent version of the Advisory in the Nutrition Club Manual which is available for download on the Nutrition Club website or from MyHerbalife.com.au.

How can I promote or advertise my Nutrition Club?Advertising is limited to promoting services that are offered within the Nutrition Club, such as a Weight Loss Challenges, Wellness Evaluations or nutrition presentations, and may only include the name of the Nutrition Club, Operator name and phone number.

How can I get more people to visit my Nutrition Club?Invitations to your club should be given on an individual, in person basis ONLY. You cannot create flyers or advertisements in local newspaper or magazines, radio or television. In fact no form of advertising other than the personal invitations is permitted (with a few exceptions). You cannot post any signs outside of your home that advertise a club. If you have a poster inside your club, it can not be visible to the public.

What activities can I offer at my Nutrition Club?It’s up to you! Some Nutrition Club Operators recommend sharing product results, nutrition education, coaching sessions, tracking weight-loss goals, watching Herbalife videos, physical activities or games. Conducting Weight Loss Challenges is a very popular activity. When sharing product experiences, remember the products are not intended to diagnose, treat, prevent or cure any disease or medical condition, and that results are not always typical. Whatever the activity, be sure to make it fun, simple and magical!

Can any of my club members open up their own Nutrition Club?Yes. Any of your members are able to open up a club aslong as they are a Herbalife Independent Distributor and as long as they adhere to all the Nutrition Club Rules. This is how Nutrition Clubs duplicate!

If I have further questions, who can I contact?You may send us an email to dmo@Herbalife.com.

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Table of Contents

Introduction .............................................................................................................................................. 30

SECTION 1

General Rules .......................................................................................................................................... 31

SECTION 2

Fees, Recruiting and Support .................................................................................................................. 34

SECTION 3

Serving and Selling Products .................................................................................................................... 35

SECTION 4

Marketing, Promotion and Advertising, Including Claims/Testimonials ....................................................... 36

SECTION 5

Nutrition Clubs operating from Non-Residential Locations ........................................................................ 37

Nutrition Club Advisory ............................................................................................................................. 40

Advisory for Nutrition Club Operator ......................................................................................................... 41

Herbalife Nutrition Club Rules

Australia and New Zealand

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Nutrition Clubs, conducted at residential or commercial locations are social gatherings, bringing together persons who become members wishing to focus on good nutrition and regular exercise in order to achieve optimum health.

These Nutrition Club Rules have the same force and effect as the full body of Herbalife’s ‘Rules of Conduct and Distributor Policies’ (including the Australia and New Zealand ‘Supplemental Rules of Conduct’). The most current version of the Australian and New Zealand Nutrition Club Rules are effective June 1st 2011, and supersede and replace all previously released documents which contain Nutrition Club Rules or informal operational guidance.

Violations of any Rule or Distributor Policy may result in disciplinary action, up to and including suspension or termination of Distributorships, and Distributors may lose their ability to operate Nutrition Clubs.

Introduction

The ‘Rules of Conduct and Distributor Policies’ (and the ‘Australia and New Zealand Supplemental Rules of Conduct’) are included in the International Business Pack (“IBP”) and may also be obtained online, at MyHerbalife.com.au, or by calling your Distributor Services Department on 08 8154 0220 (Australia) or 0800 437 225 (New Zealand).

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Section 1: General Rules

1-A Compliance with Herbalife’s RulesAny Distributor operating a Nutrition Club must be familiar and comply with the most recent versions of Herbalife’s Rules.

1-B Corporate AuditsDistributors must co-operate with Herbalife when it conducts audits of Nutrition Club practices for compliance with Herbalife’s Rules. Failure to co-operate with an audit or to promptly make changes required by an auditor or audit report will result in disciplinary action, up to and including suspension or termination of Distributorships.

1-C TrainingRule 11-C of Herbalife’s ‘Rules of Conduct and DistributorPolicies’, provides as follows:

Rule 11-C TrainingA Sponsor is responsible for properly training their personally sponsored Distributors on the products and their usage, the Sales and Marketing Plan, the Rules of Conduct and other Company rules, regulations and guidelines for Distributors. They may seek assistance from their upline Supervisor or TAB Team member but the primary responsibility is their own. No Sponsor may require payment from a personally sponsored Distributor for training or training facilities unless they fully explain that the Distributor may choose whether or not they want to participate in such training and state in advance the cost for such training. If the Distributor declines to participate in such paid training, the Sponsor is obligated to provide basic training necessary to learning the business.

A Nutrition Club operator must be trained by a knowledgeable member of their upline, or through local corporate or individual training events regarding the proper operation of the Club under the law and according to Herbalife’s Rules. The ultimate responsibility for the training of the Club operator is that of the first upline TAB Team member.

1-D Independent Distributors as Club OperatorsNutrition Clubs may only be operated by Herbalife Independent Distributors.

1-E EmployeesWhile Distributors are generally permitted to utilise employees in operating their Herbalife businesses, they may not use employees to assist with any Nutrition Club operations.

1-F Not FranchisesNutrition Clubs are not franchises, and Distributors may not compare Nutrition Clubs to franchises when promoting them as a business tool. Nutrition Clubs are only a means of doing the core Herbalife business which is retailing, recruiting and retention.

1-G Independent Business OperationsAs with all other Distributor business activities, Herbalife does not approve, endorse, authorise, guarantee or assume any obligation with regard to individual Nutrition Clubs.

1-H One Responsible DistributorAt least one Herbalife Independent Distributor must accept full responsibility for and oversee all operations of each Nutrition Club. This Distributor must post the Nutrition Club Advisory provided at the end of this document. The Nutrition Club Advisory will reflect the Distributor’s name, and contact information at the Club at all times. This Distributor must be present during all Club sessions, except for short-term absences when attending Company sponsored meetings, and if absent must assign a Distributor who they personally trained, to oversee Club operations in-person.

If multiple Distributors share a common space to operate their Nutrition Clubs, the posted information of the responsible Distributors may be alternated accordingly.

1-I Good Neighbour PolicyNutrition Club operators must be good and considerate neighbours, especially when operating out of their homes.Operators must limit Club attendance and take any other necessary steps to ensure that Club meetings do not cause unreasonable amounts of noise, traffic congestion, or other forms of nuisance to the public.

1-J Comply with the LawNutrition Club operators must comply with all laws and regulations that apply to the operation of their Club. In dealing with relevant government agencies, prospective and current Club operators must be cooperative and represent their proposed or actual activities accurately.

1-K No Assigned or Exclusive TerritoriesThere are no territorial assignments or exclusive territories for Nutrition Clubs; they may be opened and operated anywhere it is legally permissible to do so.

1-L Multiple Clubs Nutrition Club operators may operate in more than one (1) location (e.g., operate multiple Clubs), but only if they do not operate two (2) or more clubs simultaneously.

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1-M Required Advisory for Posting Every Club operator must post the following Advisory in the Club:

Nutrition Club AdvisoryThis Nutrition Club is operated by Herbalife Independent Distributor ____________________________ (“Operator”). Operator’s mailing address is _________________________________________________________________________, and operator’s business phone number is _________________. Operator, not Herbalife, is responsible for all of the activities related to this Nutrition Club.

Nutrition Clubs are social gatherings, bringing people together with a focus on good nutrition. They are not retail stores or outlets, nor are they restaurants. Registered Club members may take away one shake per day or one COLD Instant Herbal Beverage per day from the Club, but only in unbranded containers of not more than one single serving. Take away of shakes or COLD Instant Herbal Beverage may only be for the personal consumption of that Club member, or another registered Club member. Take away is limited to one shake, or one COLD Instant Herbal Beverage, and does not include Formula 1 Dessert or Herbal Aloe Drink.

Nutrition Club fees cover general operational costs and do not represent the price or cost of products. Participants may share their experiences after having used the products, but must always remember that the products are not intended to diagnose, treat, prevent or cure any disease or medical condition. Income reported in Nutrition Club materials, or in oral testimony at Club gatherings, is applicable to the individuals (or examples) depicted and not average.

This sign containing the Advisory must be at least A4 size (210mm by 297mm) and the Advisory itself must be in a font size no smaller than 17 points. The specific wording of the Advisory may change from time to time, but the most recent version can always be obtained by calling your local Distributor Services Department, or it can be downloaded from MyHerbalife.com.au. A copy of this Advisory is provided for your use at the end of section 5 of the Nutrition Club Rules.

1-N Good Hygiene Although Nutrition Clubs are not restaurants, take-aways, or any other form of food service establishment, the provision of complimentary shakes, Instant Herbal Beverage, Formula 1 Dessert, and Herbal Aloe Drink to Club Members requires that Nutrition Club operators always practice good hygiene and maintain clean and sanitary Club premises. You may refer to your Nutrition Club Manual for a full list of hygiene and sanitary best practices, but the following practices are always required:

Food Sourcing, Handling and Preparation• Always obtain fruits, vegetables, and other non-Herbalife

ingredients from reputable suppliers; inspect these ingredients for freshness and quality on delivery and

again before use. • Always use purified water in preparing the Club’s

complimentary beverages; non-purified water can be used after it is boiled.

• All kitchen equipment which is used for Club activities, including, but not limited to, blenders and cutting boards, must be cleaned thoroughly before and after every use.

• Always use disposable cups to serve complimentary beverages.

Non-Perishable Products• Always use your stock of Herbalife® products, and non-perishable ingredients on a ‘first-in, first-out’ basis; this means always using the older products first. • Always store your Herbalife® products and non-perishable

ingredients in a cool, clean, well-ventilated space; the fact that items are non-perishable does not excuse poor

storage practices.

Perishable Products• Always use your stock of perishable food items on a ‘first-in, first-out’ basis, and perishable items such as fruits and vegetables must be washed prior to use. • Clean your refrigeration units at least once a week and

always store perishable products in a manner that protects them from damage, spoilage or contamination.

Personal Hygiene• Keep your hands and forearms clean at all times by washing

thoroughly with anti-bacterial soap and warm water, and take special care to wash in the following instances: • After using the restroom• Before and after handling any food items• After sneezing, coughing, or blowing your nose• After smoking, eating, drinking or leaving the

Club premises• After touching your hair or any other body part • After touching another person• After touching used or dirty kitchen equipment

or utensils• Leave the Club premises immediately if you are sick or feel

sick, even if this means the Club must be closed until you are back to good health.

• Keep your clothing and hair clean and neat at all times.

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Club Premises• Be careful to watch for spillage and clean up any spills

immediately; warn Members and guests to avoid the affected areas until clean-up is complete.

• Maintain multiple covered rubbish bins lined with high quality rubbish bags throughout the Club premises; remove and empty them frequently.

1-O Required Advisory for Posting; Hygiene and Sanitary PracticesEvery Club operator must post the following Hygiene and Sanitary Practices Advisory in the Club:

Advisory for Nutrition Club Operator Although Nutrition Clubs are not restaurants, take-aways, or any other type of food service establishment, Herbalife expects Nutrition Club Operators to adopt the highest standards of hygiene and sanitary practices. Rule 1-N ‘Good Hygiene’ itemises practices which are required, and additional best practices are available for review in the Nutrition Club Manual. The following core principles of good hygiene and sanitation are always required:

• Keep your Club, and particularly your entire kitchen area, clean at all times.

• Keep all tools and utensils used in food preparation, and in particular blenders and cutting boards, clean at all times.

• Keep your hands and forearms clean at all times by washing them frequently with anti-bacterial soap and warm water.

• Always use purified (or boiled) water in preparing the Club’s complimentary beverages.

• Inspect fruits and vegetables for freshness and quality, and wash them prior to use.

• Always use disposable cups.• Clean up any spillage immediately, and remove all rubbish

promptly. This sign containing the Hygiene and Sanitary Practices Advisory must be at least A4 size (210mm x 297mm) and the Advisory itself must be in a font size no smaller than 17 points. The specific wording of the Advisory may change from time to time, but the most recent version can always be obtained by calling your local Distributor Services Department, or it can be downloaded from MyHerbalife.com.au. A copy of this Advisory is provided for your use at the end of section 5 of the Nutrition Club Rules.

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Section 2: Fees, Recruiting & Support

2-A FeesA daily weekly, or monthly membership fee may be charged to cover operational costs such as rent, utilities, etc.; these membership fees must not represent the price or cost of products which may be offered to members and their guests for consumption.

2-B Club Attendance Not MandatoryAttending Club sessions is a personal decision for the member or guest (whether or not he or she is a Distributor); Club operators must never state or imply that there is an obligation to attend.

2-C Club Activities and ServicesNutrition Clubs must offer their members regular opportunities to socialise, as well as frequent educational and coaching sessions (group and one-on-one) on nutrition and weight management.

2-D Member Referral IncentivesClub operators may offer reasonable rewards, such as free products, for the referral of new members, but Club operators are prohibited from paying cash or cash equivalents for such referrals.

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Section 3: Serving and Selling Products

3-A Authorised Herbalife® Products OnlyOnly Herbalife products authorised for Australia & New Zealand may be provided for consumption or sale while operating aNutrition Club. Non-Herbalife products may not be provided, sold or promoted on the Club premises.

3-B Product ConsumptionNutrition Clubs are social gatherings, bringing people together with a focus on good nutrition. They are not retail stores or outlets, nor are they restaurants or take-away establishments.

Subject to this restriction, Club operators may offer complimentary products such as shakes, Instant Herbal Beverage, Formula 1 Dessert, and Herbal Aloe drink. Club operators may post a list of available flavours of shakes and Instant Herbal Beverage, as well as any optional ingredients such as protein or fibre, but consistent with the proper operation of a Nutrition Club, they may not post, list or charge individual prices for these products or ingredients. The only permissible Nutrition Club fees are daily, weekly, or monthly membership fees to cover operational costs such as rent and utilities.

In the Nutrition Clubs and elsewhere, Herbalife® products must always be served, consumed and applied in accordance with the instructions on the printed product labels.

3-C Take-away Although it is preferable that all product offerings be consumed on the Club premises, registered Club members may take-away one shake or one cold Instant Herbal Beverage per day.

Take-aways must be in unbranded containers of not more than one single serving. Take-aways may only be for the personal consumption of that Club member, or another registered Club member. Take-away is limited to one shake, or one COLD Instant Herbal Beverage and does not include Formula 1 Dessert or Herbal Aloe Drink. 3-D Product RetailingNutrition Clubs are social gatherings, bringing people together with a focus on good nutrition. They are not retail stores or outlets, nor are they restaurants or take-away establishments.

Club operators may keep product inventory on hand and they may sell their inventory at retail. All Herbalife® products must be sold unopened and in their original Herbalife® packaging. Products which are not packaged and labelled for individual sale as individual units or single servings may not be sold in the Nutrition Clubs, or elsewhere. An official Herbalife product catalogue may be made available to Club members, but product pricing may not be posted.

Club operators may not pressure their members or guests to buy the products, and may not state or imply that product purchases are required in order to enter, attend, become a member, or remain a member of the Club.

3-E SamplingSampling of Herbalife® products is permissible at Nutrition Clubs. Club operators may offer complimentary (sample) products such as shakes, Instant Herbal Beverage, Formula 1 Dessert, and Herbal Aloe Drink. Loose tablets may not be sampled. Club operators may post a list of available flavours of shakes and Instant Herbal Beverage, as well as any optional ingredients such as protein or fibre, but consistent with the proper operation of a Nutrition Club they may not post, list or charge individual prices for these products or ingredients. The only permissible Nutrition Club fees are daily, weekly, or monthly membership fees to cover operational costs such as rent and utilities.

3-F MixturesClub operators may not mix shakes, Instant Herbal Beverage or Herbal Aloe Drink using alcoholic beverages, medications, or other inappropriate ingredients.

3-G Product Packaging and Display Club operators may display product related literature, promotional items, Herbalife® products, unopened and in their original packaging, but such displays may not be visible from the exterior.

When preparing shakes, Instant Herbal Beverage and Aloe drink for consumption, these products must be available for inspection by members and guests (again, unopened and in their original packaging).

3-H Proper Disposal of Product Containers To protect against those who might seek to counterfeit Herbalife® products, Club operators are required to deface or destroy product labels and containers before disposing of empty containers.

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Section 4: Marketing, Promotion and Advertising, Including Claims/Testimonials

4-A Testimonials/Product ClaimsClub Members may share their experiences from using the products, but the products are not intended to diagnose, treat, prevent or cure any disease or medical condition and under no circumstances should there be any statements or implications to the contrary, whether by the Club operator or by members or guests who are offering testimony. All information which is given to Club members should be consistent with the information which is provided in Herbalife support materials and publications, both in general and for specific products. Refer to Herbalife’s the Rules of Conduct and Distributor Policies Section 22 “Claims and Representations”. These Rules are in the latest version of the Herbalife Career Book, on MyHerbalife.com.au, or available through your local Distributor Services, upon request.

4-B Testimonials/Income ClaimsIncome and earnings testimonials, whether made orally at a Club event, in writing, in websites, or in writing in Club-related materials must be appropriately disclaimed, orally and/or in writing.

The appropriate disclaimer is:Income reported in Nutrition Club materials, or in oral testimony at Club gatherings is applicable to the individuals (or examples) depicted and not average.

Refer to Herbalife’s Rules of Conduct and Distributor Policies Section 22, “Claims and Representations.” These Rules are in the latest version of the Herbalife Career Book, on MyHerbalife.com.au or available through Distributor Services upon request.

4-C Offering Nutritional Advice to Members and GuestsClub operators may offer the general health, wellness and nutritional information which is a part of their daily activities as Herbalife Independent Distributors. This includes guidance about the products, their usage and their key benefits, as well as information about the business opportunity. Operators may also provide appropriate product and income testimonials both orally and in writing (accompanied by Herbalife’s required disclaimers).

4-D AdvertisingNutrition Clubs are social gatherings publicised exclusively through word of mouth and attended only by persons who are personally invited by the Club operator, another Independent Distributor or a customer, either through oral conversation or through conversation accompanied by the provision of a written invitation.

Nutrition Clubs are not intended to attract ‘walk-in’ traffic, therefore, Nutrition Club advertising is limited to promoting services that are offered at the Club’s location, such as Weight-Loss Challenge, a wellness evaluation, or wellness presentation. Advertising such services may include the following details:

• Name of Club and Club Operator• Phone Number

Using Radio and Television to advertise services that occur in a club is not permissable.

4-E Personal WebsitesEvery Nutrition Club operator is permitted to create a website under the following conditions:• Password-protected websites that are not accessible by the

general public, dedicated or partially dedicated to Nutrition Clubs, may be operated subject to their full compliance with Herbalife’s Rules.

• Non-password protected websites, accessible by the general public, are permitted with regard to a Distributor’s overall Herbalife business, but not with regard to Nutrition Clubs specifically. A publicly-accessible website may only provide the following Nutrition Club information:• Services available at Club• Name of Club and Club Operator• Phone Number

Any other information specific to Nutrition Club(s) which is posted on publicly-accessible websites will be considered and treated as prohibited Nutrition Club advertising.

4-F Nutrition Club Signage Residential Locations: Clubs operating from residential locations may not use exterior signage of any kind. For signage Rules that apply to Clubs operating from non-residential locations, refer to Section 5 of these Rules.

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Section 5: Nutrition Clubs operating from Non-Residential Locations

5-A Retail/Service EstablishmentsRetail Establishments: Nutrition Clubs may not operate on the premises of retail establishments. Retail establishments are defined as fixed locations whose primary activity is the on-site delivery of goods to consumers.

Service Establishments: Nutrition Clubs may not operate on the premises of service establishments whose primary purpose is to provide prepared foods (such as, but not limited to, restaurants, cafés, ice cream shops, etc).

However, it is permissible to operate within service establishments such as beauty salons, barber shops, gyms, and health clubs, provided that the Nutrition Club activities and all signage are restricted to an enclosed room and are not visible to passersby or to the public frequenting the service establishment. Herbalife has the sole and absolute discretion as to the determination and application of this policy.

5-B Signage Restrictions for Clubs Operating in Non-Residential LocationsA Nutrition Club may have a sign identifying itself, but that signage must meet the following standards:• The design and content of the proposed sign must meet

Herbalife’s published standards to ensure that the location is not perceived as a store, restaurant, franchise or similar operation, or other retail location, and does not invite passers-by to purchase product.

• Utilising signage which is unreasonably large or unreasonably noticeable, as determined by Herbalife at its sole and absolute discretion, will be considered and treated as an attempt to attract walk-in traffic to a Nutrition Club, which is prohibited. Please refer to Rules 5-E ‘Walk-In-Traffic’.

• No two Clubs operating from non-residential locations may have identical or substantially similar names or signage within a (100) km radius (as determined by Herbalife, at its sole and absolute discretion). This would include anything visible from the exterior that might suggest that the location is a franchise.

• Signs may not directly or indirectly identify, imply or signal that the occupant is a Herbalife Independent Distributor (or otherwise indicate a Herbalife business).

• Signs may not advertise services offered as part of a Nutrition Club (for example, Herbalife® product available, weight loss challenge – etc). The following are a few examples of signage do’s and don’ts.

Examples of Signage

Do’s Don’tsAngela’s Wellness Centre Angela’s Shake CaféHealthy Lifestyle’s Club Healthy Nutrition BarThe Feel Good Zone Herbalife Weight Loss Shop

• Signs may not state or suggest that Herbalife® products are available for retail purchase on the premises.

• Signs may not use the terms “Nutrition Club,” “Herbalife®,” “LA Live,” “Mark Hughes,” “Liftoff™,” “Shapeworks®,” “Skin Activator™,” “NouriFusion™” or any other Herbalife intellectual property, product names or brands, or the word ‘shake’ or any other words that imply or signal that Herbalife® products are available at that location.

• The following terms, and any similar terms, are not acceptable: ‘café,’ ‘restaurant,’ ‘bar,’ ‘mart,’ ‘store’ and ‘shop.’

• Signs may not depict a web address.• Tag lines are prohibited.• Signs that depict ‘Open/Closed’ or opening hours may not

be visible from the exterior.

Provided that the Club operator adheres to the above specified points the use of the following terms and any similar terms are acceptable: ‘club’, ‘centre’ or ‘meeting’; Club operators may also use their business name or the name of the individual or group.

5-C Window and Door Coverings Nutrition Clubs operating in non-residential locations must ensure the interior of the Club or activities taking place inside the club are not visible to persons from the exterior, by use of window and door coverings, and all external doors must remain closed.

Window coverings must be frosted or opaque, and must be plain and unbranded. Coverings for doors and windows may not contain any text, graphics or pictures. For example, ‘Before and After’ photographs, the word ‘shake’ or pictures of shakes, or any other products, even if unbranded, are not permitted as coverings.

Nothing that states, implies or suggests (even without words) that retail products are available for purchase inside - should be visible from the exterior of the club. For example, Herbalife® products, posters, materials or images should not be visible from the exterior of the club.

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5-D Leasing, Renting or Sharing Club LocationsNutrition Club operators may lease, rent or otherwise charge for the use of clubs located in non-residential locations, which they make available to, or share with, members of their downline or crossline organisations. However, the fees derived may not exceed 5% of the costs associated with the premises. Distributor(s) may not promote or solicit the leasing/renting of space in these locations to their downline or crossline organisations, unless they have received prior written consent to such promotion or solicitation from the first qualified President’s Team member above the Distributor(s) to whom such promotion or solicitation is to be made.

5-E Walk-In TrafficA ‘walk-in prospect’ is a person who visits a Nutrition Club for the first time without a personal invitation and without having had any direct contact with or a referral from the operator of the Club or an existing Club Member. Nutrition Club operators may sign up a walk-in prospect as a Member, but if the prospect cannot or will not sign up as a Member the operator is then limited to offering the prospect a complimentary shake, Instant Herbal Beverage, Formula 1 Dessert, and Herbal Aloe Drink as samples, and explaining the Nutrition Club concept of socialisation, product consumption and wellness education among Club Members, all in a fun and relaxed atmosphere. Nutrition Clubs are not retail locations and operators may not state or imply that they are. It is not permissible to sell product servings to anyone. Product servings are only available to registered Nutrition Club Members as part of their daily, weekly or monthly membership fee. Free samples of prepared products may be provided to encourage walk-ins to return and become Club members. Please refer to Rule 5-B “Signage Restrictions for Clubs Operating in Non-Residential Locations”.

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Notes

Nutrition Club Advisory

This Nutrition Club is operated by Herbalife Independent Distributor (“Operator”),

_____________________________________________________. Operator’s mailing address is

________________________________________________________________________________

and operator’s business phone number is __________________________________. Operator,

not Herbalife, is responsible for all of the activities related to this Nutrition Club.

Nutrition Clubs are social gatherings, bringing people together with a focus on good nutrition.

They are not retail stores or outlets, nor are they restaurants. Registered Club members may

take away one shake per day or one COLD Instant Herbal Beverage per day, from the Club,

but only in unbranded containers of not more than one single serving. Take away of shakes

or COLD Instant Herbal Beverage may only be for the personal consumption of that Club

member, or another registered Club member. Take away is limited to one shake, or one COLD

Instant Herbal Beverage and does not include Formula 1 Dessert, or Herbal Aloe drink.

Nutrition Club fees cover general operational costs and do not represent the price or cost of

products. Participants may share their experiences after having used the products, but must

always remember that the products are not intended to diagnose, treat, prevent or cure any

disease or medical condition. Income reported in Nutrition Club materials, or in oral testimony

at Club gatherings is applicable to the individuals (or examples) depicted and not average.

Advisory For Nutrition Club Operator

Although Nutrition Clubs are not restaurants, take-away, or any other type of food service

establishment, Herbalife expects Nutrition Club Operators and their assistants to adopt

the highest standards of hygiene and sanitary practices. Rule 1-N ‘Good Hygiene’ itemises

practices that are required, and additional best practices are available for review in the Nutrition

Club Manual. The following core principles of good hygiene and sanitation are always required:

• Keep your Club, particularly your entire kitchen area, clean at all times.

• Keep all tools and utensils used in food preparation, and in particular blenders and cutting

boards, clean at all times.

• Keep your hands and forearms clean at all times by washing them frequently with

anti-bacterial soap and warm water.

• Always use purified (or boiled) water in preparing the Club’s complimentary beverages.

• Inspect fruits and vegetables for freshness and quality, and wash them prior to use.

• Always use disposable cups.

• Clean up any spillage immediately, and remove all rubbish promptly.

THE PURPOSE of a Herbalife® Nutrition Club is to bring communities together with a focus on good nutrition.

NUTRITION CLUBS provide a valuable service to the community, informing people about the importance of good nutrition and exercise for optimum health.

ADMITTANCE to the Nutrition Club is by personal invitation only and is not open to the public. The activities of the Nutrition Club include socialising, community building, recognising members’ health success and enjoying a tea, shake and Herbal Aloe Drink.

mission

© 2011 Herbalife Australasia Pty Ltd. All rights reserved. Printed in Australia. PO Box 61, Marleston, SA 5033 06/11.