NOTICE TO INTERNATIONAL HERBALIFE INDEPENDENT

DISTRIBUTORS ENTERING VIETNAM AS NON-RESIDENTS

Any Herbalife Independent Distributors who are not Vietnamese nationals (Non-
Residents of Vietnam), but wish to organize, attend or lead Herbalife (or
Herbalife-related) events in Vietnam, must review and comply with the Foreign
Distributor Entry Policy for Vietnam, by completing and agreeing to this
Registration and Acknowledgment Form prior to arriving in Vietnam. Please do
so by providing the required information and then clicking to indicate your
acceptance of the Terms and Conditions which are set forth below.

Distributors who complete the “Foreign Distributor Entry Registration Form” will
receive up to date information regarding the Vietnam opening.

CLICK HERE TO REGISTER

Foreign Distributor Entry Policy for Vietnam

Vietnam is a highly regulated country and has specific guidelines for MLS (Multi
Level Sales) activities. Herbalife will set a precedent during its official opening in
Vietnam as the first 100% fully owned International MLS Company and as such,
will be heavily scrutinized by the local authority. MLS companies must abide by
Decree 110 which strictly prohibits direct foreigner involvement in MLS activities.

Herbalife will be allowed to launch our business with the help of foreign
Distributors, in the capacity of Trainers and Coaches. This is subject to the
conditions outlined in this document

Please keep the following in mind: No foreigners are allowed to conduct business
in Vietnam, and no foreigners are permitted to enter Vietnam to train or meet
locals prior to November 2, 2009. If any distributor goes to Vietnam prior to
October 31, 2009 and does any sort of training or introductions they face strong
action from the company including termination of their Distributorship.
Any actions outside of the “Foreign Distributor Entry Policy for Vietnam” could
jeopardize the opening and put our license to operate in Vietnam at risk.
1) Restrictions
a) Starting in November, foreigners (non-residents) will be allowed to enter
the country to participate in a series of Herbalife Vietnam sponsored
launch events and ceremonies.
• These events will be monitored by Herbalife Vietnam and regional
Distributor Ethics & Compliance (DEC) staff, and will provide
foreign Distributors that have registered with Herbalife Vietnam, the
opportunity to train.
• Foreign Distributors will ONLY be allowed to train, coach and
introduce Vietnamese-nationals to the Herbalife products and
business opportunity, this activity is not permitted away from the
Herbalife sponsored events or the Herbalife Vietnam Sales Center.
• Local authorities will be notified of launch, events and selected
details.

b) At a later time, we will come out with post-launch schedules that will seek
to identify future events for foreign Distributors to train, coach and
introduce Vietnamese nationals to Herbalife Vietnam, based on the
positive results from the opening.

c) Prior to entering the country, all foreign Distributors must complete the
online registration process which includes acknowledgement they have
read and agree to the “Foreign Distributor Entry Policy” for Vietnam.
• It is the responsibility of the upline TAB Team member to make the
form available to any of their downline wishing to participate in
launch activities.

2) Launch Events will consist of:

a) November 1, 2009:
• Orientation meeting for all foreign Distributors who registered to
participate in the launch at the Park Hyatt Hotel in Ho Chi Minh City
(HCMC). Time will be confirmed at a later time

b) November 2, 2009:
• 10 am – Opening of Sales Center / Warehouse / Office in HCMC.
All products approved for sale in Vietnam including IBPs
(Introductory Business packs) will be available from the Company,
for purchase and pick-up by Distributors who are Vietnamese
nationals only
 c) November 3, 2009:
• 1:30 pm – 7:30 pm – Herbalife sponsored presentation
seminars/HOMs at a local hotel ballroom for the introduction of
Herbalife to the Vietnamese consumers. Vietnamese nationals will
be able to purchase and pick-up IBPs (Introductory Business
Packs) and at the venue. Hotel to be announced.

d) The above schedule will be continued for two weeks.

Dates/times/locations to be confirmed

3) Opening Meetings and HOMs

a) All meetings including Herbalife Opportunity Meetings (HOMs) will be held
by the company at designated venues. For the first two weeks, these will
be at a local hotel or event halls that hold up to 1,000 people.
• Training and seminars sponsored by Herbalife Vietnam will include
foreign Distributor leaders as consultants, speakers, trainers, and
coaches.
• Guests (without a Distributor connection) will be advised and
assigned trainers or coaches to learn how to do the Herbalife
business.
b) In addition to the HOM meeting room, Herbalife will use an “exhibition hall
system” – where Herbalife Vietnam will sponsor monitored meet-and-
greet events for foreign Distributors and locals. At these meet-and-
greets, foreign Distributors will have the opportunity to speak with
Vietnamese nationals and “introduce” them to the company for
registration as Distributors.

4) Coach/Trainer Assignment and the Formal Introduction to Herbalife

Vietnam
a) Vietnamese nationals wishing to register to be a Distributor (and not
already connected to a Distributor) will be referred to a foreign Distributor
who will be assigned as their coach/trainer. A company employee will
then advise Vietnamese nationals the name of their assigned coach or
trainer.
• To participate and be on the referral list as a coach/trainer you
must:
• Register online with the company through the online
“Foreign Distributor Entry” Registration Form
• Registration must be completed 48 hours prior to arrival in
Vietnam
• Visit Vietnam
 b) Each new Vietnamese Distributor will be given a name tag with his/her
coach/trainer’s name. As of launch day, Herbalife will permit
coaches/trainers to hold smaller meetings at the company office rooms.

c) Once Vietnamese nationals are established as Herbalife Distributors, they

are free to sponsor anywhere in Vietnam, and can directly approach other
Vietnamese nationals to become Herbalife Distributors. Likewise, they
can do business outside of Vietnam in other Herbalife countries, provided
they abide by the Herbalife regulations and local laws for that country.

a. In order for a Vietnamese national to become a Distributor, they

must provide the following at the time of the Distributor Application
submission:
• All 4 Copies of completed Distributor Application including the
ID Cards
• Vietnam National ID Card (Copy will be taken at the DC)
• 1 Photo - 3cm x 2cm

d) No out of country phone or internet sponsoring by Foreign Distributors will

be allowed during the 30 day launch period that commences on
November 2, 2009. Local Vietnamese who walk in with a reference from
a foreign Distributor who is not present in Vietnam, will only be confirmed
after the launch period

e) Only Vietnamese Distributors living overseas who are citizens of Vietnam

are allowed to remotely sponsor a local Vietnamese person in Vietnam by
providing their Distributor ID for registration. (for example, an overseas
Vietnamese Distributor who sponsors their family in Vietnam to Herbalife
Vietnam)

5) Ethics Training
a) Vietnam will be a part of the Worldwide Sales and Marketing Plan.

b) New Vietnamese Distributors will be allowed to purchase up to 1,000 VP

initially.

c) Distributors will only be permitted to purchase 1,000 VP and then will be

required to participate in Ethics training before being allowed to purchase
additional products.
 d) Herbalife will begin the Ethics Training during evening hours, the same
week as the launch at sponsored HOM venues. Participants will register at
the door with their Herbalife ID# and name and acknowledge at the end of
the training that they have received the Ethics training.
a. Herbalife Vietnam is currently working on options to provide Ethics
training to residents that are not in close proximity to HCMC.

6) Foreigner-allowed Activity after Launch

a) Large meetings (HOM, STS, and Trainings) will be sponsored by Herbalife
Vietnam only.

b) Foreign Distributor meetings and seminars:

• Larger meetings and gatherings led by foreign Distributors, such as
group meetings, will be permitted as long as they have been registered
and approved by e-mail, phone or in person with the Herbalife Vietnam
Distributor Services staff

c) It is highly recommended for Foreign Distributors to recruit outside of

Vietnam, by sponsoring local Vietnamese citizens in their home town, city
or country.
• Phone/internet recruitment will not be permitted at launch.
• Once Foreign Distributors have sponsored Vietnamese citizens,
Vietnamese citizens may then travel and work in Vietnam and outside
of Vietnam provided they abide by the local laws, and all Herbalife
rules and regulations for that country.
• Citizens of Vietnam that reside outside of Vietnam, who wish to
purchase and retail products in Vietnam, may only do so if they show
proper identification (Vietnamese passport) and a valid Vietnam
address of residence in Vietnam to the Distributor Services staff.
• If they are not located in HCMC, they can send a notarized copy of
both documents to the Herbalife Vietnam Sales Center in HCMC.

7) Foreign Distributor Restrictions

a) Foreigners cannot purchase or retail products, IBPs, literature, etc.,
directly from Herbalife Vietnam. This is so Herbalife complies with the
government rules on foreigners doing business in Vietnam.

b) Foreigners may not export or bring in products, IBPs, literature, etc. into
Vietnam purchased outside the country. This is in accordance with
Herbalife’s export policy and so that Herbalife complies with the
government rules on foreigners doing business in Vietnam.
 c) Foreigners may not recruit in Vietnam. This is so Herbalife complies
with the government rules on foreigners doing business in Vietnam.

d) Advertising is not permitted by any Distributors (foreign or Vietnamese

Nationals) in Vietnam including media, print ads, billboards, or flyers of
any kind. Distributors will only be allowed to use word of mouth/Use-Wear-
Talk to promote the Herbalife products and/or business opportunity.

e) Distributors may only use approved Herbalife tools and literature.

f) No sales by Foreigners of any products, promotional, sales or training

materials

g) No business method materials or memberships can be sold to Vietnamese

nationals in Vietnam

h) Daily Consumption training or introduction sessions and Shake parties for

groups more than 10 will all need to be registered through the Vietnam
office.

i) Failure to comply with the Foreign Distributor Restriction rules may result
in strong action from the company including termination of their
Distributorship

8) General Information

Office Location: 224 Pasteur St., District 3, HCMC

Telephone: To be announced
General Mgr: Nguyen Quyet Thang
Staff: 19 people including GM
Office Description: Small 5-floor building with 4 meeting rooms, pickup
counter, order counter, call center, and offices for
staff.
Area: District 3 is quite international with Disney store and
other international store locations in the
neighborhood.
Products for Launch: 5 SKU's for Launch have been approved by the
government:
 • Formula 1: Vanilla, Chocolate, and Wild Berry
• Formula 2 Multivitamin
• PPP

We also are expecting approval soon on two additional SKU's:

• Aloe Concentrate
• Herbal Tea in Original

We will advise plans for additional product launches at the launch seminar on
November 1, 2009.