Notes to Distributors - Herbalife

Repurchase of Inventory
The opportunity to be an Herbalife Distributor is entirely voluntary.
A resigning Distributor may return unused products or sales materials which are
unopened and in resalable condition, for repurchase by Herbalife under certain terms
and conditions, if the products were purchased from Herbalife within the last 12 months
and the resigning Distributor provides proof of purchase. If the conditions are fulfilled, the
Distributor will then be directed to return the products to Herbalife along with, if
appropriate, their records relative to the 70% Rule. Within 30 business days of the
receipt of these items, reimbursement to the Distributor will be issued for the full amount
paid for the returned product by the Distributor, less a 10% restocking fee, if all terms
and conditions have been met. Shipping, packaging & handling fees paid on the original
order or in returning those items to Herbalife will not be reimbursed.
Herbalife will deduct the amount of Royalty Overrides, Commissions, Production
Bonuses and any other earnings or benefits paid on the returned products from the
appropriate Distributors, and adjust qualifications as necessary.
Click here for details on how to initiate an inventory repurchase request.
Rev: 09/28/05

How to Initiate a Repurchase of Inventory
• Under Rule 9-F of the Rules of Conduct and Distributor Policies, as
amended from time to time, you may have the right to have Herbalife
repurchase resalable inventory which you purchased from Herbalife,
under certain terms and conditions.
• If you want to initiate a repurchase of inventory the 1 st step is to click here
to obtain the required Forms for the Repurchase of Inventory.
• The forms should be mailed to the address below.
Herbalife International of Hong Kong Ltd.
Attention: Distributor Services Department
503A-B Miramar Shopping Centre
132 Nathan Road, Tsimshatsui
• The forms must be accompanied by or preceded by a signed and
witnessed resignation letter, or you may choose instead to sign the
Repurchase Request Form and have that form witnessed.
• Upon Herbalife’s receipt of the completed forms and resignation letter, if
the conditions of Rule 9-F are satisfied, Herbalife’s Distributor Services
Department will provide you with a Return Authorization Letter and the
address to which you should ship your return. You may return only those
items which comply with rule 9F. Herbalife will have no responsibility for
items which you ship that are outside of Rule 9-F, and the guidelines
provided.
• Once Herbalife has processed your return, the payment due to you will be
issued.
If you have any questions regarding this process, please call Herbalife’s
Distributor Services Hotline at (852) 2834-1821.
Rev: 09/28/05

Forms for the Repurchase of Inventory
The first three forms are required to process your request.
Click here for the Repurchase of Inventory form.
If your return includes Herbalife Product Inventory, click here for the form.
If your return includes Literature/Promotional items, click here for the form.
In addition, we would appreciate your feedback regarding your satisfaction with
Herbalife, its services, products and overall effectiveness by completing the
Repurchase Survey.
If you have any questions, please contact Herbalife’s Distributor Services Hotline
at (852) 2834-1821.
Rev: 09/28/05

INVENTORY REPURCHASE REQUEST FORM
To process your request, please provide Herbalife with the details requested if you have not
already done so.
• I have permanently resigned my Herbalife Distributorship.
• I have already provided Herbalife with a witnessed letter of resignation, or in lieu of a
witnessed resignation letter, I will have this form witnessed.
• I understand that only unopened and resalable products or sales materials which were
purchased from Herbalife within the last 12 months 1 are eligible for resale to Herbalife, and in
all other respects in accordance with Rule 9-F of the Herbalife Rules of Conduct and
Distributor Policies.
• I understand my reimbursement will be 90% of the amount I paid for the products, less any
appropriate offsets. I understand that any shipping/package & handling charges incurred by
me either at the time of purchase or in returning those items to Herbalife, are not refundable.
• I understand that I will be refunded via the same method of payment that was used when I
originally bought the merchandise. (If paid by check, money order, or wire transfer, the
reimbursement will be refunded with a check. If paid by credit card, the same credit card will
be refunded.)
• I understand that Herbalife reserves the right to determine which products and quantities fall
within the limits of Herbalife’s repurchase of inventory policy. Once the Company has
reviewed my repurchase request and provided me with a Return Authorization Letter and
relevant shipping details, I will return only items that are unopened and in resalable condition,
that were purchased within the last 12 months, and which comply with Rule 9-F. I understand
that Herbalife will have no responsibility for items returned that fall outside Rule 9-F and the
guidelines provided.
• I have included a complete inventory list of the items I would like repurchased. The items
which I seek to return were purchased within the last 12 months.
• I have included proof of purchase for this merchandise (copies of credit card statements,
money orders or cancelled checks.)
• I have included my sales records for all the products I sold from this/these order(s) (to retail
customers, or my downline) as specified in Rule 20-F and 9-F (in Herbalife’s Career Book,
under the Rules of Conduct and Distributor Policies section.)
This form must be signed, dated, and returned to Herbalife to initiate further processing of your
request.
By my signature, I acknowledge and agree to the above.
____________________________________ _____________________________
(Name - Please Print) (ID #)
____________________________________
(Signature)
_____________________________
(Date)
Rev: 09/28/05

PRODUCT I WISH TO RETURN
Name: _________________________________
ID#:
_________________________________
I understand that only unopened and resalable products which were purchased from Herbalife within
the last 12 months are eligible for resale to Herbalife, and in all other respects in accordance with Rule
9-F of the Herbalife Rules of Conduct and Distributor Policies. I represent and warrant that the
products which are listed below and which I wish to return to Herbalife meet these standards.
• I also understand, Herbalife reserves the right to determine which products and quantities fall
within the limits of Herbalife’s repurchase of inventory policy, and that I may return only those
items, that are unopened and in resalable condition, that were purchased from Herbalife
within the last 12 months, and which comply with Rule 9-F. I understand that Herbalife will
have no responsibility for items returned which it determines that fall outside Rule 9-F and the
guidelines provided.
Stock# Product Description # of
Cases
or # of
Units
Office Use
Only
____________________________________ _____________________________
(Signature) (ID #)
____________________________
(Date)
Rev: 09/28/05

LITERATURE/PROMOTIONAL ITEMS I WISH TO RETURN
Name: _________________________________
ID#:
_________________________________
I understand that only resalable sales materials which were purchased from Herbalife within the last 12
months are eligible for resale to Herbalife, and in all other respects in accordance with Rule 9-F of the
Herbalife Rules of Conduct and Distributor Policies. I represent and warrant that the sales materials
which are listed below and which I wish to return to Herbalife meet these standards.
• I also understand, Herbalife reserves the right to determine which products and quantities fall
within the limits of Herbalife’s repurchase of inventory policy, and that I may return, only items
that are unopened and in resalable condition, that were purchased within the last 12 months,
and which comply with Rule 9-F. I understand that Herbalife will have no responsibility for
items returned which it determines that fall outside Rule 9-F and the guidelines provided.
Stock# Literature / Promotional Items # of Sets # of Units Office Use Only
____________________________________ _____________________________
(Signature) (ID #)
____________________________________
(Date)
Rev: 09/28/05

Repurchase Survey
Name: _________________________________
ID#:
_________________________________
Date: _________________________________
1. How important were the following reasons in your decision to resign your Herbalife distributorship? (Please check
one box in each row.)
Not achieving my health or weight-loss goals after using the products
The effectiveness of the products
The amount of personal selling required
The difficulty of selling the products
Not understanding all the requirements of the business until after
applying
Lack of support from my sponsor
Lack of training
Conflict with other commitments
Something else not included above
Low. Not
Important At All
Somewhat Important
Extremely
Important
2. If Herbalife fixed the "extremely important" items you checked above, how likely would you be to reactivate your distributorship?
(Check ONE answer only.)
Extremely likely
Somewhat likely
Neither likely nor unlikely
Somewhat likely
Completely unlikely
3. Were you a consumer before you signed the Distributor Application, or not? (Check ONE answer only.)
No, I was not a consumer first
Yes, I was a consumer first
4. Below, please check a box on the 1-to-5 scale, where '1' means 'completely agree' and '5' means 'completely disagree'. How
much do you agree that Herbalife products are...?
Low Completely
Agree
Agree
Completely
Disagree
The highest quality 1 2 3 4 5
Extremely effective/really work 1 2 3 4 5
Great tasting (refers to the shakes and drinks) 1 2 3 4 5
Extremely easy to purchase 1 2 3 4 5
Extremely easy to prepare and/or consume 1 2 3 4 5
Extremely easy to retail 1 2 3 4 5
Better than the competition 1 2 3 4 5
Based on the latest science 1 2 3 4 5
In the best packaging/containers 1 2 3 4 5
Great value for the money 1 2 3 4 5
Rev: 09/28/05

5. Please indicate how easy or difficult each of the following was for you, personally, to do.
Extremely Easy Easy Extremely
Difficult
Sign up new customers 1 2 3 4 5
Actively support your customers on the program 1 2 3 4 5
Convert retail customers to distributors 1 2 3 4 5
6. How satisfied were you with your sponsor on his or her...?
Extremely
Satisfied
Somewhat Satisfied
Extremely
Dissatisfied
Availability 1 2 3 4 5
Motivation 1 2 3 4 5
Training and direction 1 2 3 4 5
Providing of information 1 2 3 4 5
Assistance when needed 1 2 3 4 5
Understanding of your unique situation 1 2 3 4 5
7. Which one of the following best describes how you first learned of Herbalife? (Check ONE answer only.)
A friend (referral)
U.S. mail, email or by phone
Herbalife's Internet web site
A flyer, sign or public posting, Newspaper ad
An event hosted by Herbalife or an Herbalife distributor
Other
8. What was your one, primary reason for becoming an Herbalife distributor? (Check ONE answer only.)
To purchase product for yourself at a discounted price
To supplement your household's income
The opportunity for high income
To become your own boss-job freedom
The opportunity to work from home
Some other reason
Rev: 09/28/05