Herbalife Nutrition Clubs - ServiceEvaluation

1 Herbalife Nutrition [8/1/2015 2:39:51 PM] [1240] Herbalife Nutrition ClubsAssignment No:BA No:Store No:Evaluation Date: (MM/DD/YYYY)Evaluation Start Time: (HH:MM AM/PM):AMPMI ntroduction:To successfully complete this evaluation, it is necessary to read these Client Objectives carefully. Each section of the questionnaire willhave specific instructions on how to execute, approach, or fulfill the Client Objectives properly. The information contained in theseGuidelines is exactly how it will appear in your online : Herbalife is a global Nutrition company that has helped people pursue a healthy, active lifestyle since 1980. The Nutrition , weight-management and personal care products are available exclusively through independent Objective: Herbalife has rules on how Independent Herbalife Members should operate their Nutrition Club. The purpose of this visit is to determine ifHerbalife Nutrition Clubs are compliant with Herbalife :Complete the assignment on any date listed within the When to Shop dates on your Assignment Sheet and Assignment Details page ofthe website.

2 See the Assignment Sheet, located in your Assignment Portfolio, for the Club's hours of Date and Evaluation Time: Enter the date you visited the Nutrition Club. Enter the time you arrived at the Successfully Completed Evaluation Includes the Following:Visiting a Herbalife Nutrition Club during the hours listed in the Assignment Notes on your Assignment a minimum of 3 digital photos of the location as outlined in the Photos Section the Club is open, entering the location and inquiring about the Nutrition Club and its a REIMBURSABLE product or entrance fee in CASH if requested by the Club Owner (up to $15, see Q CL8 in the ClubLocation section)Taking note if the Club Operator makes any product, weight-loss or income claims and if so, if they include a disclaimer whenmaking the the online questionnaire and submitting the results as outlined in the SEC Standard Requirements and OnlineSubmission documents located in your Cyber or e-mailing all required collateral (pictures, business card, etc.)

3 For verification contact if you have any questions.[10995] Planning Your VisitMost Herbalife Clubs are identifiable by the colors green and/or orange, although there may be some Clubs with othercolor Herbalife Clubs will have green and/or orange curtains in the doors and windows and may not have a signidentifying the Club Nutrition [8/1/2015 2:39:51 PM]Always represent yourself in a professional mannerDress in business casualRespect the Club Operator's timeBe prepared to answer questions about what brought you to the Club. Some examples are:I noticed the "green" curtains and thought this might be a place to get Herbalife . Can you tell me about the program andproducts? I heard they are good for weight loss or maintenance, Nutrition , healthy lifestyle, friend uses Herbalife and told me I could get information 'm trying to lose weight and heard about Herbalife products from someone at work/ similar to show interest in the Club, Club Operator may ask for your personal contact information.

4 You may politely decline. Some examples are:I would like to see if I like it before sharing my prefer not to share my I get your business card instead to call you Club Operator may offer you a sample of a shake, tea, or aloe, however, you are NOT REQUIRED to drink the beverage, norare you required to ask about more than type of product sample.[10996] Club AddressVisit the Club at the address and hours listed on the Assignment Sheet located in your Assignment the address is invalid (does not exist) explain why you were unable to locate the must take at least 3 pictures of the location, street sign, or closest address to the one provided showing that the address is [63772] Did you visit the address listed on the Assignment Sheet during the designated hours ofoperation? YesNoCA2. [63773] Did you find the designated address? If No, explain why you were unable to locate the Yes, enter N/AYesNoHerbalife Nutrition [8/1/2015 2:39:51 PM][10997] Club LocationOnce you have arrived at the designated address, confirm that there is a Herbalife Nutrition Club operating on the anytime during the hours of operation listed on your Assignment take pictures of the location as outlined in the Photo section the location is closed, take additional photos as outlined in the Photo section is possible for the Nutrition Club to be located within a service establishment (gym, dance studio, etc).

5 If the Nutrition Club isinside another business, you should take a picture of the outside of that you cannot locate the Club, visit a neighboring business and ask if there is a Nutrition Club at the designated Clubs provide product samples at no charge. If the Club Operator asks you to pay a fee for a product sample, be preparedto pay a small fee in cash, usually around $5. See Question #CL8 for more N/A below only if the address was invalid and did not [63774] Was there an Herbalife Club at this address? Take a picture of the location even if there is nothing at all at theaddress (such as a vacant lot).If No, what type of business is located at this Yes, enter N/AYesNoCL2. [63775] Did you physically enter the building at the locationassigned to you? It is possible that a Nutrition Club may appear to be closed but isactually open for its members. Therefore you must attempt to enter No, explain why you did not enter the Yes, enter N/AYesNoHerbalife Nutrition [8/1/2015 2:39:51 PM]CL3.

6 [63776] Upon entering, did you get confirmation that therewas a Nutrition Club on the premises? If No, explain why you did not get confirmation that the Clubwas not at the Yes, enter N/AYesNoCL4. [63777] Was the door to the Club locked? If the front entrance appears to be locked, look for a side entrance, rearentrance, upstairs entrance or other entrance. YesNoN/ACL5. [63778] Was the Club open during the hours of operationlisted in the Assignment Notes? Visit the Club during the hours listed on your Assignment Sheet. If theClub is closed when you arrive and the hours of operation are posted,take a picture of the posted No, what were the Club's posted hours of operation?If Yes, enter N/AYesNoN/ACL6. [63779] Were there any signs saying that the Club orYesNoHerbalife Nutrition [8/1/2015 2:39:51 PM]previous establishment was out of business? Take a picture of any signs or notices saying that the Club was out ofbusiness or no longer located at the designated [63780] If the Club was out of business or not located atthe designated address, did you visit a neighboring business toask if a Nutrition Club ever occupied the location?

7 If there appears to be another business at the address, please confirmwith the current business or a neighboring business if a Nutrition Clubcurrently or previously operated at that Yes, explain what you were told. If No, explain why you didnot visit a neighboring [63781] Were you able to successfully find, enter, andconduct a visit at the Club? If No, explain why you were unable to conduct a Yes, enter N/AYesNoCL8. [63782] Did the Club Operator ask you to pay a product feeor membership fee? Herbalife Nutrition Clubs are allowed to charge a fee for their products,however most will provide a sample for no charge. It is not necessaryto sample more than 1 type of product or obtain a "full size" sample. The fee, if charged, can vary by Club location, however, it will probablybe around $ DO NOT PAY A FEE GREATER THAN $ as theYesNoN/AHerbalife Nutrition [8/1/2015 2:39:51 PM]maximum reimbursement amount is $ If the Club Operator asksyou to pay a fee greater than $15, kindly say that you did not bringenough cash with you.

8 If the Club Operator does ask you to pay a fee for a sample, DO NOTASK for a receipt as doing so may compromise your anonymity as amystery shopper. IT IS NOT NECESSARY TO SUBMIT A RECEIPT TOOBTAIN REIMBURSEMENT IF [63783] If Yes to Q8, enter the amount you were asked topay for a product (shake, tea, OR aloe) sample fee ormembership fee. Since you are paying for the fee with cash without a receipt, yourreimbursement amount will be validated with each Club Location toverify if they charge for product samples. Please note that submittingfraudulent reimbursements is against SEC policy and will result in beingrestricted from future IN THE COMMENT SECTION BELOW WHAT THE CLUBOPERATOR SAID THE FEE [63784] Enter the name of the Club Operator you spokewith: Enter the name of the person who you spoke with at the Club. It isokay to obtain just the person's first name.[10998] Compliance ClaimsUnderstanding ClaimsClaims are implied or expressed statements that explain the function or purpose of Herbalife products or the benefits of using them, orrepresent to others what they can expect to achieve as a result of the Herbalife Business Opportunity.

9 Claims may be verbal or visual. Visual claims may be text or Herbalife Members make claims whenever they share a personal story or testimonial about weight, product results,and DisclaimersThe Club Operator must always use the proper disclaimers when making product, weight loss, or earnings claims whether made verbally orin writing. Disclaimers are required by law, and protect consumers by helping them better understand the claims that are being made. Select N/A below only if the address provided was invalid or if the Club was closed when you arrived at the Nutrition [8/1/2015 2:39:51 PM]N/ACC1. [63785] Were there any statements/claims made about the product purpose, benefits, and/orresults? A product claim is a statement made about the purpose, function, or benefits Herbalife products provide and mayinclude a:Weight Loss ClaimProduct ClaimEarnings ClaimYesIf Yes, list allstatements(claims).Check all thatapply:Weight LossClaimProductClaimEarningsClaimOther NoCC1a.

10 [63786] Were the statements/claims Compliant? Regardless of the form or purpose, claims must always be: Lawful, truthful, and not misleading. Substantiated (able to prove the claim if asked) in advance of communication, whether written or verbal. Include the appropriate disclaimer, when following are examples of false and misleading product claims: Any claim not substantiated by scientific evidence (false and misleading); A claimed benefit or purpose not listed on product labeling (false and misleading); A recommendation to use of a product contrary to its directions for use. A product or program that promotes weight-loss without dieting or exercise. A product or program that promotes substantial weight-loss no matter what or how much the consumer No, whywere theClaims non-compliant?Check all thatapplyNon-compliantproduct orweight lossclaim madeProduct orweight lossdisclaimer notincludedN/ACC2. [63787] Did the Nutrition Club Operator give you any advice on which products to use?