Requalification

© 2011 Herbalife International of America, Inc. All rights reserved. USA. MRK14844G-USEN 09/11

Requalification 2

QUALIFIED PRODUCER: Potential Income and Incentives• 42% Retail Profit all year

• 7% or 17% Wholesale Profit all year

SUPERVISOR: Potential Income and Incentives• 50% Retail Profit

• Up to a 25% Wholesale Profit

• 1% to 5% Royalty Overrides

• Monthly Production Bonus

• Annual Bonus (Mark Hughes Bonus)

• Promotions

To maintain the Qualified Producer and Supervisor status, each Distributor must pay his or her Annual Processing Fees and requalify annually between February 1 and January 31.

RequalificationQualified Producer and Supervisor

Requalification

RequalificationQualified Producer Requalification Requirements

3

QUALIFIED PRODUCER REQUALIFICATION

• Achieve 2,500 Volume Points within one to three Volume Months

• Up to 1,000 Volume Points can be accumulated from DLV

1,500 PPV

JUNE

1,000 PPV

QUALIFIEDPRODUCER

42%

QUALIFIEDPRODUCER

42%

MAY

B B

MAY

QP42%

APRIL

B

JUNE250 PPV

500 PPV

500 PPV

500 PPV

750 PPV

PPV ONLY PPV AND DLV

1,500 PPV+1,000 DLV

PPV = Personally Purchased Volume DLV = Downline Volume QP = Qualified Producer

QP42%

QP42%

Requalification

RequalificationSupervisor Requalification Methods

4

SUPERVISOR REQUALIFICATION 1. Achieve 4,000 Volume Points in one month

(1,000 Volume Points must be unencumbered)

2. Achieve 2,500 Volume Points in each of two consecutive months(1,000 Volume Points must be unencumbered in each month)

3. 12-Month Qualification:

a. Achieve 4,000 Volume Points within the qualification period(All Volume Points must be unencumbered)Lose your downline SupervisorsOR

b. Accumulate 10,000 Volume Points within the qualification period(All Volume Points must be unencumbered)Keep your downline Supervisors

There are three methods for Supervisor Requalification.

NOTE: Unencumbered Volume is volume that is not used by anyone else in your downline for Supervisor qualification purposes.

Requalification

RequalificationSupervisor One-Month Requalification

5

YOU1,000 VP @ 50%

DISTRIBUTORA

4,000 VP @ 42%

YOU

FULLY QUALIFIED SUPERVISOR

REQUALIFIED

SUPERVISOR A

MAY 2011 JUNE 2011

1. Achieve 4,000 Volume Points in one month(1,000 Unencumbered Volume Points)

Requalification

RequalificationSupervisor Two-Month Requalification

6

YOU1,000 VP @ 50%

DISTRIBUTORA

2,500 VP @ 42%

YOU

FULLY QUALIFIED SUPERVISOR

REQUALIFIED

SUPERVISORA

MAY 2011 JULY 2011

YOU1,000 VP @ 50%

DISTRIBUTORA

2,500 VP @ 42%

JUNE 2011

2. Achieve 2,500 Volume Points in each of two consecutive months (1,000 Unencumbered Volume Points in each month)

Requalification

RequalificationSupervisor 12-Month Requalification

7

Supervisor1

FEB2011

MAR2011

APR2011

MAY2011

JUN2011

JUL2011

AUG2011

SEP2011

OCT2011

NOV2011

DEC2011

JAN2012

TOTAL

TV 700 300 0 1,000 500 250 0 500 0 150 0 6004,000

TV

3a. Accumulate 4,000 Volume Points within the 12-month requalification period (All Volume Points must be unencumbered)

Lose your downline Supervisors

Supervisor 1

FEB2011

MAR2011

APR2011

MAY2011

JUN2011

JUL2011

AUG2011

SEP2011

OCT2011

NOV2011

DEC2011

JAN2012

TOTAL

TV 2,600 2,500 0 4,000 500 250 0 2,500 2,500 0 0 014,850

TV

ENCUMBERED 2,500 2,500 0 4,000 0 0 0 2,500 2,500 0 0 0 14,000Encumbered

UNENCUMBERED 100 0 0 0 500 250 0 0 0 0 0 0850

Unencumbered

Example 1: Unencumbered – Requalified

Example 2: Encumbered – Did Not Requalify

Requalification 8

Supervisor 1

FEB2011

MAR2011

APR2011

MAY2011

JUN2011

JUL2011

AUG2011

SEP2011

OCT2011

NOV2011

DEC2011

JAN2012

TOTAL

TV 2,000 500 0 1,000 500 1,250 1,000 500 2,500 150 0 60010,000

TV

3b. Accumulate 10,000 Volume Points within the qualification period (All Volume Points must be unencumbered)

Keep your downline Supervisors

RequalificationSupervisor 12-Month Requalification (cont’d)