Confidential Herbalife International Luxembourg S.a.R.L., Spurkterweg 16, 5804 AP Venray, The Netherlands

Table of contents

SHIP TO ADRESS..................................................................................................................................... 2BILL TO ADRESS..................................................................................................................................... 2

INTRODUCTION..................................................................................................................................... 3COMMUNICATION................................................................................................................................. 3

File: Supplier Setup Form HIL.................................................................................................................3

PURCHASE ORDERS/TAKE..................................................................................................................... 4 ORIGIN DECLARATION........................................................................................................................... 5

File: (Example) Certificate of origin.......................................................................................................5File: LTD Long Term Suppliers Declaration English for Goods of Preferential Origin 2016.....................5File: LTD for Goods of Non-Preferential Origin 2016..............................................................................5File: Product Information Form (PIF).....................................................................................................5

SHIPPING & RECEIVING.......................................................................................................................... 6

File: SDN Supplier Delivery Notice..........................................................................................................6

EXTRA ATTENTION/ PRODUCT INFORMATION SHEET.............................................................................7

File: Overview Relevant Legislation........................................................................................................7 File: Care symbol table ginetex...............................................................................................................7

File: Clothing size Conversion Chart........................................................................................................7File: Fancy Jewelry....................................................................................................................................

File: Polyamide and Melamine - Plastic kitchenware.............................................................................7File: Plastic Products not being toys.......................................................................................................7File: Suffocation warnings......................................................................................................................7File: Textile Products..............................................................................................................................7File: Toys................................................................................................................................................7 Extra attention / re-prints and re-productions

SUPPLY CHAIN SECURITY PROGRAMS....................................................................................................8 DELIVERY/ PICK UP ................................................................................................................................ 8PACKAGING REQUIREMENTS ................................................................................................................. 9

File: IPPC ISPM15 draft Apr 2013...........................................................................................................9

MASTER SHIPPER................................................................................................................................. 10

File: Barcode label program................................................................................................................10File: Adding 3 of 9 Barcode font to wind..............................................................................................10File: Preparing Pallet, Master & Item labels........................................................................................10

BARCODE LABELS ................................................................................................................................ 11QUALITY ASSURANCE .......................................................................................................................... 12BILLING REQUIREMENTS...................................................................................................................... 13

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SHIP TO Address:

Herbalife International Luxembourg, Netherlands Branch C/o Herbalife International Luxembourg S.à.R.L

Spurkterweg 165804 AP VenrayThe NetherlandsPhone: +31 478 55 60 60

BILL TO Address:

Herbalife International Luxembourg S.à R.L.

16, Avenue de la GareL-1610 LuxembourgLuxembourgPhone: +35 226 20 77 47

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Introduction

Herbalife Intl. is an (NYSE-listed: HLF) American Corporation with its main office in Los Angeles, which sells food supplement products and personal care items all over the world. The sales force consists of more than two million independent sales-people; the members. Herbalife International Luxembourg, Netherlands Branch is the Regional logistics provider of Herbalife, based in Venray, the Netherlands. Being part of the Global Strategic Sourcing Group, the Purchasing Department in Venray buys products and/or services in the name of Herbalife International Luxembourg from various suppliers worldwide. Shipment of these products is mainly into Venray.

These vendor instructions are applicable to all shipments to Herbalife Venray.

Communication

Since Herbalife is an US company, with many departments all over the world, the company language is English. Unless agreed otherwise with the buyer, make sure your written communication is in English.

The supplier will receive the ‘’Supplier Setup’’ form in order to fill in all the correct details for Herbalife’s Finance system.

Email address: Purchasingvenray@herbalife.com

File:

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Purchase orders / TAKE

No work must be carried out on behalf of Herbalife until you have received a signed purchase order.For TAKE users: an approved Workflow Mailer.

Without a purchase order number, payment for costs incurred cannot be guaranteed.

Herbalife purchase orders have a 10 digit PO number.In case the vendor works with TAKE the 10 digit PO number is still vital.

The vendor should always confirm the purchase order by emailing a dated and signed copy to the purchasing person stated on the purchase order.

Vendors which use TAKE only need to ‘accept’, and a PO confirmation (POC) will be generated & sent.

Other important points on the purchase order/TAKE:

o Stock Keeping Unit-number (SKU); Identifies the purchased product, this is needed on all paperwork or systems;

o Revision Number; Identifies the revision number of the product, this is needed on the packing list/manifest and barcode

labels;

o Unit price and currency; 100% match between purchase order and invoice;

o Order quantity; The vendor has to advise master shipper in order to adjust order quantities;

o Ship to / Bill to address; 100% match on all paperwork is vital for timely payment;

o Requested delivery date; When this date cannot be met, the vendor needs to contact the buyer within 24 hours after receipt of

the Purchase order;

o Agreed terms and conditions; Herbalife Terms & Conditions;

o 0 % overages and under ages are allowed; Exceptions must be agreed prior to the vendor’s acceptance of the Purchase order.

Herbalife’s system is set up to expect a 100% match between the purchase order, packing list and invoice.

File:

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Origin Declaration

Herbalife International Luxembourg SaRL and/or other Herbalife entities export the received products to countries also outside of the European Union. European customs regulations oblige us to provide proof of the origin of the goods.

There are several different types of origin / preferential origin documents. The sort of document depends on the origin of the goods. Herbalife requires receiving one of the following documents:

(1) Certificate of origin: For goods with an origin outside of the European Union;

(2) Long Term Suppliers Declaration: For goods in free circulation in the European Union which for non-preferential origin have an origin outside of the European Union

(3) Long Term Suppliers Declaration: For goods made in the EU, which conform to the for preferential origin preferential origin rule. (4) Product Information Form (PIF): For centralizing necessary information internally.

Should be provided at least 1 week prior to delivery.

Since the new legislation UCC is in use as off 01 May 2016, the validity of the long term suppliers declaration for non-preferential and preferential origin is 2 years starting with the 1st of January (For example: 01-Jan-2017 till 31-Dec-2018).

The rules governing preferential origin are complex, Herbalife advise you to discuss the rules with your local chamber of commerce before issuing your origin documents (except for the PIF).

All origin declarations should be sent by e-mail and the originals, after approval by post (except for the PIF).

Email address for declarations and PIF Complianceedc@herbalife.com

Address for origin declarations: Herbalife International Luxembourg, Netherlands Branch C/o Herbalife International Luxembourg S.à.R.L

F.A.O Compliance Department Spurkterweg 16 5804 AP Venray

The Netherlands

For any queries regarding the origin documents: Customs ControllerJessica de Vries-KosterPhone: +31(0)478 556088Email: Complianceedc@herbalife.com

Files:

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Shipping & receiving

As the European warehouse receives shipments from a multitude of vendors all over the world, all the vendors need to adhere to the delivery notification procedure to be able to guarantee fast unloading of the trucks. The applicable Inco-term and place (Incoterm ® 2010) is mentioned on the PO document and prior agreed;

It is not allowed to have mixed products and/or lot codes on one pallet, unless you have agreed otherwise with Purchasing.

- Announce shipment, before 12:00 CET, two working days prior to delivery by theSupplier Delivery Notice (SDN) for.For TAKE users: announce shipment via email, two working days prior to delivery, incl. shipment number (EHL-), PO number, total number of packages/pallets ánd the delivery date.

- The SDN form should be send by e-mail to all e-mail addresses mentioned on the bottom of the SDN form, as well as to the originator of the purchase order;

- The Warehousing department will confirm before 16:30 CET the date and time for delivery;

- For TAKE users, the shipment will be released. This is the confirmation for delivery;

- For TAKE users, the e-mail addresses are pre-defined. Once the shipment leaves the warehouse the goods must be shipped in TAKE, otherwise the truck will not be unloaded;

Shipment needs to be accompanied by:

- Packing list that is not handwritten with the same information as on the SDN form; For TAKE users, this would be the manifest.

- CMR (with EHL-xxxxxx number or 10-digit PO number)

- Any product specific customs forms as outlined in product specifications;Certificate of Origin or Long Term Suppliers Declaration.

NB:- All shipments have to be delivered before 16.00 CET;- Not complying with this process or with the agreed delivery date and time could result in delay or

refusal of the shipment and a re-charge of costs, if applicable, to the vendor for late delivery.

File:

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Extra attention / product information sheet

Extra attention / re-prints and re-productions

Any item supplied should be fit for its intended purpose and use.

All our suppliers are required to use the same manufacturer in the same country in case of re-prints or re-productions. Also the specification from the items and packaging details (like box qty) need to be exactly the same.

- UNLESS agreed otherwise with the responsible buyer.

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Supply Chain Security-programs

Herbalife is compliant with the C-TPAT and AEO certification. Shipments directly from the supplier’s premises to Herbalife must be compliant with these regulations as well. The vendor may be audited by internal Herbalife specialists or Customs authorities.

C-TPAT: Customs Trade Partnership Against TerrorismAEO: Authorized Economic Operator

Receiving of goods is one of the processes covered by our security-programs. A number of simple instructions apply. Suppliers, including any third party contracted by the supplier, have to comply with these as well.

Delivery

Samples: Promotional Goods / Merchandise- After receipt of the proposal, Herbalife will indicate from which item 2 samples are required.

One sample should be send to Herbalife in Uxbridge and 1 sample should be send to Herbalife in Venray.

- For samples to Herbalife Venray, they can be sent directly or can be shipped with the shipment.Please send for the attention of ‘Purchasing Venray’.

- For samples to Herbalife Uxbridge, Purchasing Venray will indicate the contact person for each item separately.

All samples need to be provided free of charge, unless agreed otherwise.

Driver instructions:- Driver has to report himself with the Purchase Order number at the gate, by using the intercom

system. For TAKE users the driver needs to report himself with the shipment (EHL-) number.If the shipment hasn’t been announced, this will result in a delay, or not being able to unload the shipment;

- After being granted access to the Herbalife premises, the driver has to report himself to the counter at the Expedition desk;

- Warehousing staff will instruct the forklift driver to perform a check for the outside of the truck, in accordance with security guidelines. After this check the warehouse team will give instructions to dock the trailer;

- After docking, the inside of the trailer will be checked by the forklift driver conform the security instruction. Ones completed without any remarks the warehouse employee will unload the trailer;

- When the driver indicates to attend unloading the truck, Herbalife will register the document number of the driver’s ID card or driver’s license.Safety shoes and a safety jacket are required to wear inside the warehouse;

- The driver can only stand on the marked spots (marked with “DRIVERS”) in the warehouse. When not following these requirements, access to the warehouse will be denied.

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Packaging requirements

Pallets must meet the following requirements: The European Union demand (ISPM no. 15 2009) regarding wooden pallets:

- 1-way block size pallets 120cm x 100 cm (four-way entry pallet);- All wooden pallets (coniferous or non-coniferous) must be heat treated or fumigated regardless

of destination.- Top deck must be smooth, free from nail protrusions, knots and other damaging projections;- Maximum pallet height is 125 cm (including the pallet);- Gross weight may not be heavier than 550 kg;- Pallets used must always be calculated on dynamic load rating;- Load of the pallet may not exceed over the perimeter of the pallet base;- Pads are not to be used between pallets and products unless required for stability of the load;- The pallets should be stackable, with the exception of literature, if pallets are not stackable this

needs to be clearly identified on the pallet- Pyramidal pallet loads are not accepted;- Herbalife is willing to evaluate pallet stacking patterns if the vendor provides them before

shipping. - All goods loaded on a pallet must be packed properly, shrink-wrapped in clear plastic and clearly

identified with a pallet label with barcodes on both short sides of the pallets;- It is not allowed to have mixed products and/or lot codes on one pallet, unless you have agreed

otherwise with Purchasing. In thát case, please make sure this is clearly marked on the pallet. (overview with SKU’s, lot’s QTY and expiry dates must be added).

Examples of the correct mark are:

NL ISO land code (NL)000 Registration number of the company that treated the woodHT Way of treatment; Heat Treatment (HT) or Gassing with methyl bromide (MB)DB Debarked

File:

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Master shipper

- Master shipper quantities must be consistent throughout the whole year;- Each master shipper must be clearly identified with barcode labels on 2 sides of the boxes, short

and long side; short side for the pallet labels.- These barcode labels must be visible from the outside of the pallet;- Partial master shipper is allowed, but only 1 partial carton per SKU number/ production batch;- This partial shipper must be identified with “partial” marked on two sides and placed in top layer

of the pallet on the corner so it is clearly identifiable;- Maximum weight for a master shipper is 20 kg.- Each unit requires an item label which is fixed to the carton/polybag.

This applies for all AOP items, except LIT.

Files:

Example ‘Preparing Pallet, Master & Item labels’

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Barcode labels

LOTCODE Packaging materials (Boxes, Bags etc.)- Start LOT number with: PM + Rev.#- Lot number has to be visible on the SDN, on the box labels and on the pallet labels

LOTCODE Literature items (Brochures, leaflets, button and DVD)- Start LOT number with: LIT + Rev.#- In multiple prints, in one revision, we use the same lot code.- Lot number has to be visible on the SDN, on the box labels and on the pallet labels

LOTCODE AOP items (all promotion except products intended to come in contact with food)- Start LOT number with: AOP + Rev.#- Lot number has to be visible on the SDN, on the box labels and on the pallet labels

LOTCODE AOP items (Promotion products intended to come in contact with food)- Start lot code with: MFD

Start of production: YYYYMMDDEg. MFD20141024

- Lot number has to be visible on the SDN, on the box labels and on the pallet labels

Expiry date format- 11 digit format (DD- MMM-YYYY);- Reference is the date on the purchase order/release or the start date

of production + 10 years;- For example ‘Purchase Order date or start of Production date is 24 October 2014’

o → Expiry date is 24-OCT-2024

ENGLISH

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

DUTCH jan

feb mrt ap

r mei jun

jul

aug

sep

okt

nov

dec

- It is important that to stick to the above format and use English language for the months; otherwise the barcodes cannot be scanned.

- Be aware that the end date will not be a date that does not exist because of a leap year.

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NB Theoretically it can happen that on 1 release or purchase order there are more than one different lot code format.

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Quality Assurance

All shipments are subject to inspection by Herbalife’s Quality Assurance Department. In case a shipment is rejected these are the following options:

Accept as is: - A shipment is not entirely in conformance with the agreements, however no rework is required

(‘accept as is’);- The supplier will be notified by Herbalife Purchasing department, via a Service Failure (SF) report

per email. Once an SF has been sent, we’d like to receive a Corrective Action Plan in return, within 2 weeks.

Rework needed:- Rework at Herbalife;

o Herbalife is obligated to its members to secure the continue supply and quality of goods. If it is Herbalife position that returning the shipment to the supplier to correct the error at their location is in conflict with that obligation, rework will be conducted at a Herbalife location. Such entirely at Herbalife discretion. The supplier will be notified by Herbalife Purchasing or Planning department, via a Service Failure (SF) report together with a Cost Justification Form (CJF) - for the costs involved. A Corrective Action Plan is required in return. By accepting these vendor instructions the supplier acknowledges that Herbalife ruling is binding.

- Return to vendor:o In case there is sufficient time to return the goods to the vendor, this entirely at

Herbalife discretion, this will be communicated (along with a SF). Vendor to arrange transport and rework. Herbalife will advise the ultimate date goods must be available at Herbalife location again.

Destroy the rejected products: - Vendor will be contacted in case product is not up-to-standard and cannot be reworked or not

cost-efficiently. The rejected products can be destroyed or returned to the vendor, and costs will be charged to the vendor;

- If both parties agree to have the products destroyed by Herbalife, the supplier will be notified by means of a Service Failure (SF) report and a Cost Justification Form (CJF) for the costs involved. A Corrective Action Plan is required in return. Scrap costs will be included on the CJF. If the products have already been paid for by Herbalife, the product costs will be put on the CJF as well.

Cost rework or scrap at Herbalife- In case costs occur for rework at Herbalife this will be charged on the Cost Justification Form (CJF)

at an amount related to the actual costs involved; - The minimum amount is € 150, - to cover for administration costs, overhead, etc; - The supplier will sign the CJF and return it to Herbalife. - Substantiating information to the claim will be provided by Herbalife.- Herbalife International Luxembourg S.à.R.L. will eventually credit the actual costs from the

invoice.

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For any queries regarding this contact: Name: Serge Holten Department: Planning Email: SergeH@herbalife.comBilling Requirements

Invoices must meet following requirements:

- Format should be a .PDF document or scanned copy from the original invoice;Invoices in open documents (Excel, Word) in which changes can be made, will be rejected because of legal reasons;

- VAT Registration number; For delivery in the Netherlands: NL812160186B01 # - One invoice per purchase order;- Payment Terms; - Purchase order number; - SKU (item) number - Rev. number;- Project code number;- Description of item; - Quantity; - Unit cost price; - Currency;- Incoterm; - Bill to address;- Ship to address; - Reference of the e-mail copy of the invoice should mention the invoice number.

Vendor name and/or PO number will be a plus.

All invoices should be sent by e-mail (original version not necessary)

Email address: LUXEUINVpayments@herbalife.com

BILL TO Address: Herbalife International Luxembourg S.à.R.L. 16, Avenue de la Gare L-1610 Luxembourg Luxembourg

SHIP TO Address: Herbalife International Luxembourg, Netherlands Branch C/o Herbalife International Luxembourg S.à.R.L.

Spurkterweg 16 5804 AP Venray The Netherlands

# For any other ship to destination, please contact Finance Luxembourg at the above email address.

NB: All the above should be applicable to all invoices; any incorrect or missing information will delay the payment of your invoices as they will be returned for corrections.

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