harmony green america, inc.hg-america.com/docs/policiesandprocedures.pdf · compensation under the...
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Harmony Green America, Inc.
STATEMENT OF POLICIES
and
PROCEDURES Effective 05/01/2015
TABLE OF CONTENTS
SECTION 1 - CORPORATE MISSION STATEMENT ......................................................................................... 4
SECTION 2 - INTRODUCTION ............................................................................................................................... 4
2.1 - POLICIES AND COMPENSATION PLAN INCORPORATED INTO MARKETING EXECUTIVE AGREEMENT ......... 4 2.2 - CHANGES TO THE AGREEMENT ....................................................................................................................... 4 2.3 - POLICIES AND PROVISIONS SEVERABLE ......................................................................................................... 4 2.4 - WAIVER ............................................................................................................................................................ 5
SECTION 3 - BECOMING A MARKETING EXECUTIVE.................................................................................. 5
3.1 - REQUIREMENTS TO BECOME A MARKETING EXECUTIVE .............................................................................. 5 3.2 - NO REQUIRED PRODUCT PURCHASES ............................................................................................................. 5 3.3 - MARKETING EXECUTIVE BENEFITS ................................................................................................................ 6 3.4 - TERM AND RENEWAL OF YOUR INDEPENDENT HARMONY GREEN AMERICA BUSINESS .............................. 6
SECTION 4 - OPERATING AN INDEPENDENT HARMONY GREEN AMERICA BUSINESS .................... 6
4.1 - MARKETING EXECUTIVE CREATED MARKETING METHODS AND TOOLS ..................................................... 6 4.2 - ADVERTISING ................................................................................................................................................... 7
4.2.1 - General ..................................................................................................................................................... 7 4.2.2 - Trademarks and Copyrights .................................................................................................................... 7 4.2.3 - Media and Media Inquiries ..................................................................................................................... 8 4.2.4 - Unsolicited Email ..................................................................................................................................... 8 4.2.5 - Unsolicited Faxes ..................................................................................................................................... 9 4.2.6 - Telephone Directory Listings ................................................................................................................... 9 4.2.7 - Television and Radio Advertising ............................................................................................................ 9 4.2.8 - Advertised Prices .................................................................................................................................... 10
4.3 - ONLINE CONDUCT .......................................................................................................................................... 10 4.3.1 - Marketing Executive Web Sites ............................................................................................................. 10 4.3.2 - Harmony Green America Replicated Websites ..................................................................................... 10 4.3.3 - Domain Names, email Addresses and Online Aliases .......................................................................... 10 4.3.4 - Harmony Green America Hotlinks ....................................................................................................... 11 4.3.5 - Monetizing Replicated Websites ............................................................................................................ 11 4.3.6 - Online Classifieds .................................................................................................................................. 11 4.3.7 - eBay / Online Auctions .......................................................................................................................... 11 4.3.8 - Online Retailing ..................................................................................................................................... 11 4.3.9 - Banner Advertising ................................................................................................................................ 11 4.3.10 - Spam Linking ....................................................................................................................................... 12 4.3.11 - Digital Media Submission (YouTube, Facebook, Pinterest, PhotoBucket etc.) ................................. 12 4.3.12 - Social Media ......................................................................................................................................... 12
4.4 - BUSINESS ENTITIES ........................................................................................................................................ 15 4.4.1 - Changes to a Business Entity ................................................................................................................ 15
4.5 - CHANGE OF SPONSOR .................................................................................................................................... 15 4.5.1 - Misplacement ......................................................................................................................................... 16 4.5.2 - Cancellation and Re-application ........................................................................................................... 16
4.6 - WAIVER OF CLAIMS ....................................................................................................................................... 16
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4.7 - UNAUTHORIZED CLAIMS AND ACTIONS ........................................................................................................ 16 4.7.1 - Indemnification ...................................................................................................................................... 16 4.7.2 - Product Claims ....................................................................................................................................... 17 4.7.3 - Income Claims ....................................................................................................................................... 17
4.8 - REPACKAGING AND RE-LABELING PROHIBITED .......................................................................................... 17 4.9 - COMMERCIAL OUTLETS ................................................................................................................................ 17 4.10 - TRADE SHOWS, EXPOSITIONS AND OTHER SALES FORUMS ....................................................................... 18 4.11 - CONFLICTS OF INTEREST ............................................................................................................................. 18
4.11.1 - Nonsolicitation ..................................................................................................................................... 18 4.11.2 - Marketing Executive Participation in Other Direct Selling Programs .............................................. 19 4.11.3 - Confidential Information ..................................................................................................................... 19
4.12 - TARGETING OTHER DIRECT SELLERS ........................................................................................................ 20 4.13 - ERRORS OR QUESTIONS ............................................................................................................................... 20 4.14 - GOVERNMENTAL APPROVAL OR ENDORSEMENT ....................................................................................... 21 4.15 - HOLDING ORDERS ........................................................................................................................................ 21 4.16 - INCOME TAXES ............................................................................................................................................. 21 4.17 - INDEPENDENT CONTRACTOR STATUS ......................................................................................................... 21 4.18 - INSURANCE ................................................................................................................................................... 21 4.19 - INTERNATIONAL MARKETING ..................................................................................................................... 22 4.20 - EXCESS INVENTORY AND BONUS BUYING ................................................................................................... 22 4.21 - ADHERENCE TO LAWS AND ORDINANCES ................................................................................................... 22 4.22 - ONE HARMONY GREEN AMERICA BUSINESS PER MARKETING EXECUTIVE ............................................ 22 4.23 - ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED PARTIES ................................................................. 22 4.24 - ROLL-UP OF MARKETING ORGANIZATION ................................................................................................. 23 4.25 - SALE, TRANSFER OR ASSIGNMENT OF AN INDEPENDENT HARMONY GREEN AMERICA BUSINESS .......... 23 4.26 - SEPARATION OF A HARMONY GREEN AMERICA BUSINESS ........................................................................ 24 4.27 - SPONSORING ONLINE ................................................................................................................................... 25 4.28 - SUCCESSION .................................................................................................................................................. 25
4.28.1 - Transfer Upon Death of a Marketing Executive ................................................................................ 25 4.28.2 - Transfer Upon Incapacitation of a Marketing Executive .................................................................. 25
4.29 - TELEMARKETING TECHNIQUES................................................................................................................... 26 4.30 - MY PAGE ACCESS ........................................................................................................................................ 27
SECTION 5 - RESPONSIBILITIES OF MARKETING EXECUTIVES ............................................................ 27
5.1 - CHANGE OF CONTACT INFORMATION ........................................................................................................... 27 5.2 - CONTINUING DEVELOPMENT OBLIGATIONS................................................................................................. 27
5.2.1 - Ongoing Training .................................................................................................................................. 27 5.2.2 - Increased Training Responsibilities ...................................................................................................... 28 5.2.3 - Ongoing Sales Responsibilities .............................................................................................................. 28
5.3 - NONDISPARAGEMENT .................................................................................................................................... 28 5.4 - PROVIDING DOCUMENTATION TO APPLICANTS ............................................................................................ 28
SECTION 6 - SALES REQUIREMENTS ............................................................................................................... 28
6.1 - PRODUCT SALES ............................................................................................................................................. 29 6.2 - SALES RECEIPTS ............................................................................................................................................. 29
SECTION 7 - BONUSES AND COMMISSIONS ................................................................................................... 29
7.1 - BONUS AND COMMISSION QUALIFICATIONS AND ACCRUAL ........................................................................ 29 7.2 - BONUS AND COMMISSION PAYMENT METHOD ............................................................................................. 29 7.3 - ADJUSTMENT TO BONUSES AND COMMISSIONS ............................................................................................ 30
7.3.1 - Adjustments for Returned Products ...................................................................................................... 30 7.3.2 - Tax Withholdings ................................................................................................................................... 30
7.4 - REPORTS ......................................................................................................................................................... 30
SECTION 8 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE ........................ 31
8.1 - PRODUCT GUARANTEE, WARRANTY AND RESCISSION ................................................................................. 31
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8.2 - RETURNS BY CUSTOMERS .............................................................................................................................. 32 8.3 - RETURN OF INVENTORY AND SALES AIDS BY MARKETING EXECUTIVES UPON CANCELLATION .............. 32 8.4 - PROCEDURES FOR ALL RETURNS .................................................................................................................. 33
SECTION 9 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS .......................................... 33
9.1 - DISCIPLINARY SANCTIONS ............................................................................................................................. 34 9.2 - GRIEVANCES AND COMPLAINTS .................................................................................................................... 34 9.3 - MEDIATION..................................................................................................................................................... 35 9.4 - ARBITRATION ................................................................................................................................................. 35 9.5 - GOVERNING LAW, JURISDICTION AND VENUE ............................................................................................. 36
9.5.1 - Louisiana Residents ............................................................................................................................... 36
SECTION 10 - PAYMENT AND SHIPPING ......................................................................................................... 36
10.1 - RESTRICTIONS ON THIRD PARTY USE OF CREDIT CARDS AND CHECKING ACCOUNT ACCESS................ 36 10.2 - SALES TAXES ................................................................................................................................................ 36
SECTION 11 - INACTIVITY, RECLASSIFICATION, AND CANCELLATION ............................................. 37
11.1 - EFFECT OF CANCELLATION ......................................................................................................................... 37 11.2 - CANCELLATION DUE TO INACTIVITY .......................................................................................................... 37
11.2.1 Reclassification Following Cancellation Due to Inactivity ............................................................. 38 11.3 - INVOLUNTARY CANCELLATION ................................................................................................................... 38 11.4 - VOLUNTARY CANCELLATION ...................................................................................................................... 38
SECTION 12 - DEFINITIONS ................................................................................................................................. 38
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SECTION 1 - CORPORATE MISSION STATEMENT
We will continue to grow in ways that bring happiness to everyone involved.
Harmony Green will contribute to society by enhancing the health and quality of life of everyone
involved through the use of Aloe vera.
SECTION 2 - INTRODUCTION
2.1 - Policies and Compensation Plan Incorporated into Marketing Executive Agreement
These Policies and Procedures, in their present form and as amended by Harmony Green
America, Inc. (hereafter “Harmony Green America” or the “Company”), are incorporated into,
and form an integral part of, the Harmony Green America Marketing Executive Agreement. It is
the responsibility of each Marketing Executive to read, understand, adhere to, and insure that he
or she is aware of and operating under the most current version of these Policies and Procedures.
Throughout these Policies, when the term “Agreement” is used, it collectively refers to the
Harmony Green America Marketing Executive Application and Agreement, these Policies and
Procedures, the Harmony Green America Compensation Plan, and the Harmony Green America
Business Entity Registration Form (if applicable). These documents are incorporated by
reference into the Harmony Green America Marketing Executive Agreement (all in their current
form and as amended by Harmony Green America).
2.2 - Changes to the Agreement
Harmony Green America reserves the right to amend the Agreement and its prices in its sole
and absolute discretion. By executing the Marketing Executive Agreement, a Marketing
Executive agrees to abide by all amendments or modifications that Harmony Green America
elects to make. Amendments shall be effective 30 days after publication of notice that the
Agreement has been modified. Amendments shall not apply retroactively to conduct that
occurred prior to the effective date of the amendment. Notification of amendments shall be
published by one or more of the following methods: (1) posting on the Company’s official web
site; (2) electronic mail (e-mail); (3) posting in Marketing Executives’ My Page; or (4) inclusion
in product orders. The continuation of a Marketing Executive’s Harmony Green America
business, the acceptance of any benefits under the Agreement, or a Marketing Executive’s
acceptance of bonuses or commissions constitutes acceptance of all amendments.
2.3 - Policies and Provisions Severable
If any provision of the Agreement, in its current form or as may be amended, is found to be
invalid or unenforceable for any reason, only the invalid portion(s) of the provision shall be
severed and the remaining terms and provisions shall remain in full force and effect. The
severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as
closely as possible.
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2.4 - Waiver
The Company never gives up its right to insist on compliance with the Agreement and with
the applicable laws governing the conduct of a business. No failure of Harmony Green America
to exercise any right or power under the Agreement or to insist upon strict compliance by a
Marketing Executive with any obligation or provision of the Agreement, and no custom or
practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of
Harmony Green America’s right to demand exact compliance with the Agreement. The
existence of any claim or cause of action of a Marketing Executive against Harmony Green
America shall not constitute a defense to Harmony Green America’s enforcement of any term or
provision of the Agreement.
SECTION 3 - BECOMING A MARKETING EXECUTIVE
3.1 - Requirements to Become a Marketing Executive
To become a Harmony Green America Marketing Executive, each applicant must:
Be at least 18 years of age;
Reside in the United States (except as noted below), a U.S. Territory (except as noted
below), or any country that Harmony Green America has officially announced is open for
business;
Purchase a Harmony Green Starter Kit (optional for residents of North Dakota);
Provide Harmony Green America with his or her valid Social Security or Federal Tax ID
number; and
Submit a properly completed Marketing Executive Application and Agreement to
Harmony Green America.
Each Marketing Executive must have a Sponsor. Harmony Green America reserves the right
to accept or reject any Marketing Executive Application and Agreement for any reason or no
reason.
If a new Marketing Executive enrolls without providing a Social Security Number or Federal
Tax ID Number, the Marketing Executive will not be eligible to earn more than $599 in
compensation under the Harmony Green America Compensation Plan until such time as the
Marketing Executive provides Harmony Green America with a valid Social Security Number or
Federal Tax ID Number.
Important Note Regarding Montana Residents. At this time, the Harmony Green
America opportunity is not available to residents of Montana. If you reside in Montana, you may
not enroll as a Marketing Executive. You may enroll as a Preferred Customer, however.
3.2 - No Required Product Purchases
Except for the purchase of a Starter Kit, no person is required to purchase Harmony Green
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America products or sales aids, or to pay any charge or fee to become a Marketing Executive. In
order to familiarize new Marketing Executives with Harmony Green America products, services,
sales techniques, sales aids, and other matters, the Company requires that they purchase a Starter
Kit. Harmony Green America will repurchase resalable Business Kits from any Marketing
Executive who terminates his or her Distributor Agreement pursuant to the terms of Section 8.3.
3.3 - Marketing Executive Benefits
Once a Marketing Executive Application and Agreement has been accepted by Harmony
Green America, the benefits of the Compensation Plan and the Marketing Executive Agreement
are available to the new Marketing Executive. These benefits include the right to:
Sell Harmony Green America products;
Participate in the Harmony Green America Compensation Plan (receive bonuses and
commissions, if eligible);
Sponsor other individuals as Preferred Customers or Marketing Executives into the
Harmony Green America business and thereby, build a Marketing Organization and
progress through the Harmony Green America Compensation Plan;
Receive periodic Harmony Green America literature and other Harmony Green America
communications;
Participate in Harmony Green America-sponsored support, service, training, motivational
and recognition functions, upon payment of appropriate charges, if applicable; and
Participate in promotional and incentive contests and programs sponsored by Harmony
Green America for its Marketing Executives.
3.4 - Term and Renewal of Your Independent Harmony Green America Business
The term of the Marketing Executive Agreement is one year from the date of its acceptance
by Harmony Green America (subject to prior termination or reclassification pursuant to Section
11). The Agreement shall automatically renew for successive one year terms on the annual
anniversary date unless either the Marketing Executive or the Company notifies the other, at
least 30 days prior to the anniversary/renewal date that he, she or it does not wish to renew the
Agreement.
SECTION 4 - OPERATING AN INDEPENDENT HARMONY GREEN AMERICA
BUSINESS
4.1 - Marketing Executive Created Marketing Methods and Tools
Marketing Executives must adhere to the terms of the Harmony Green America
Compensation Plan as set forth in official Harmony Green America literature. Marketing
Executives shall not offer the Harmony Green America opportunity through, or in combination
with, any other system, program, sales tools, or method of marketing other than that specifically
set forth in official Harmony Green America literature. Marketing Executives shall not require
or encourage other current or prospective Preferred Customers or Marketing Executives to
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execute any agreement or contract other than official Harmony Green America agreements and
contracts in order to become a Harmony Green America Marketing Executive. Similarly,
Marketing Executives shall not require or encourage other current or prospective Marketing
Executives to make any purchase from, or payment to, any individual or other entity to
participate in the Harmony Green America Compensation Plan other than those purchases or
payments identified as recommended or required in official Harmony Green America literature.
4.2 - Advertising
4.2.1 - General
All Marketing Executives shall safeguard and promote the good reputation of Harmony Green
America and its products. The marketing and promotion of Harmony Green America, the
Harmony Green America opportunity, the Compensation Plan, and Harmony Green America
products must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or
practices.
To promote both the products and the tremendous opportunity Harmony Green America
offers, Marketing Executives should use the sales aids, business tools and support materials
produced by Harmony Green America. The Company has carefully designed its products,
product labels, Compensation Plan, and promotional materials to ensure that they are promoted
in a fair and truthful manner, that they are substantiated, and that the materials comply with the
legal requirements of federal and state laws.
Accordingly, Marketing Executives may only advertise or promote their Harmony Green
America business using approved tools, templates or images acquired through Harmony Green
America. No approval is necessary to use these approved tools. If a Marketing Executive wishes
to design his or her own online or offline marketing materials of any kind, the proposed designs
must be submitted to Harmony Green America for review. Unless the Marketing Executive
receives specific written approval from Harmony Green America to use such tools, the request
shall be deemed denied.
Marketing Executives may not sell sales aids to other Harmony Green America Marketing
Executives. Therefore, Marketing Executives who receive authorization from Harmony Green
America to produce their own sales aids may not sell such material to any other Harmony Green
America Marketing Executive. Marketing Executives may make approved material available to
other Marketing Executives free of charge if they wish, but may not charge other Harmony
Green America Marketing Executives for the material.
Harmony Green America further reserves the right to rescind approval for any sales tools,
promotional materials, advertisements, or other literature, and Marketing Executives waive all
claims for damages or remuneration arising from or relating to such rescission.
4.2.2 - Trademarks and Copyrights
The names “Harmony Green”, “Harmony Green America”, “HG”, “Rokai”, and other names,
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symbols, and logos as may be adopted by Harmony Green America are proprietary trade names,
trademarks and service marks of Harmony Green America (collectively “marks”). As such,
these marks are of great value to Harmony Green America and are supplied to Marketing
Executives for their use only in an expressly authorized manner. Harmony Green America will
not allow the use of its trade names, trademarks, designs, or symbols, or any derivatives of such
marks, by any person, including Harmony Green America Marketing Executives, in any
unauthorized manner without its prior, written permission.
The content of all Company sponsored events is copyrighted material. Marketing Executives
may not produce for sale or distribution any recorded Company events and speeches without
written permission from Harmony Green America. Nor may Marketing Executives reproduce
for sale or for personal use any recording of Company-produced audio or video tape
presentations.
Marketing Executives may not use the names “Harmony Green” or “Harmony Green
America” in any form in a team name, a tagline, an external website name, a personal website
address or extension, in an e-mail address, as a personal name, or as a nickname. For example, a
Marketing Executive may not secure the domain name www.buyHarmonyGreen.com, nor may a
Marketing Executive create an email address such as [email protected] or
[email protected]. Additionally, a Marketing Executive may only use the phrase
Independent Harmony Green America Marketing Executive in telephone greetings or on an
answering machine to clearly separate the Marketing Executive’s independent Harmony Green
America business from Harmony Green America.
4.2.3 - Media and Media Inquiries
Marketing Executives must not attempt to respond to media inquiries regarding Harmony
Green America, its products, or their independent Harmony Green America business. All
inquiries by any type of media must be immediately referred to Harmony Green America. This
policy is designed to assure that accurate and consistent information is provided to the public as
well as a proper public image.
4.2.4 - Unsolicited Email
Harmony Green America does not permit Marketing Executives to send unsolicited
commercial emails unless such emails strictly comply with applicable laws and regulations
including, without limitation, the federal CAN SPAM Act. Any email sent by a Marketing
Executive that promotes Harmony Green America, the Harmony Green America opportunity, or
Harmony Green America products must comply with the following:
There must be a functioning return email address to the sender.
There must be a notice in the email that advises the recipient that he or she may reply to
the email, via the functioning return email address, to request that future email
solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice).
The email must include the Marketing Executive’s physical mailing address.
The email must clearly and conspicuously disclose that the message is an advertisement
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or solicitation.
The use of deceptive subject lines and/or false header information is prohibited.
All opt-out requests, whether received by email or regular mail, must be honored. If a
Marketing Executive receives an opt-out request from a recipient of an email, the
Marketing Executive must forward the opt-out request to the Company.
Harmony Green America may periodically send commercial emails on behalf of Marketing
Executives. By entering into the Marketing Executive Agreement, Marketing Executive agrees
that the Company may send such emails and that the Marketing Executive’s email addresses will
be included in such emails as outlined above. Marketing Executives shall honor opt-out requests
generated as a result of such emails sent by the Company.
4.2.5 - Unsolicited Faxes
Except as provided in this section, Marketing Executives may not use or transmit unsolicited
faxes in connection with their Harmony Green America businesses. The term “unsolicited faxes”
means the transmission via telephone facsimile or computer of any material or information
advertising or promoting Harmony Green America, its products, its compensation plan or any
other aspect of the company which is transmitted to any person, except that these terms do not
include a fax: (a) to any person with that person's prior express invitation or permission; or (b) to
any person with whom the Marketing Executive has an established business or personal
relationship. The term "established business or personal relationship" means a prior or existing
relationship formed by a voluntary two way communication between a Marketing Executive and
a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person
regarding products offered by such Marketing Executive; or (b) a personal or familial
relationship, which relationship has not been previously terminated by either party.
4.2.6 - Telephone Directory Listings
Marketing Executives may list themselves as an “Independent Harmony Green America
Marketing Executive” in the white or yellow pages of the telephone directory, or with online
directories, under their own name. No Marketing Executive may place telephone or online
directory display ads using Harmony Green America's name or logo. Marketing Executives may
not answer the telephone by saying “Harmony Green America”, “Harmony Green America
Incorporated”, or in any other manner that would lead the caller to believe that he or she has
reached corporate offices of Harmony Green America. If a Marketing Executive wishes to post
his or her name in a telephone or online directory, it must be listed in the following format:
Marketing Executive's Name
Independent Harmony Green America Marketing Executive
4.2.7 - Television and Radio Advertising
Marketing Executives may not advertise on television or radio except with Harmony Green
America’s express written approval.
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4.2.8 - Advertised Prices
Marketing Executives may not create their own marketing or advertising materials offering
any Harmony Green America products at a price less than the Preferred Customer price plus
shipping and applicable taxes.
4.3 - Online Conduct
4.3.1 - Marketing Executive Web Sites
If a Marketing Executive desires to utilize an Internet web page to promote his or her
business, he or she may do so through the Company’s official replicated web site, using official
Harmony Green America Replicated Website templates. The use of any other website to
advertise or promote the Harmony Green America products or the Harmony Green America
opportunity is strictly prohibited.
4.3.2 - Harmony Green America Replicated Websites
Marketing Executives receive a Harmony Green America Replicated Website subscription
to facilitate the online buying experience for their Customers and enrollments of new Marketing
Executives and Preferred Customers. There is no charge for the Replicated Website. Marketing
Executives are solely responsible and liable for the content they add to their Replicated Websites
and must regularly review the content to ensure it is accurate and relevant.
Marketing Executives may not alter the branding, artwork, look, or feel of their Replicated
Website, and may not use their Replicated Website to promote, market or sell non-Harmony
Green America products or business opportunities. Specifically, a Marketing Executive may not
alter the look (placement, sizing etc.) or functionality of the following:
The Marketing Executive’s Name
Harmony Green America Corporate Website Redirect Button
Artwork, logos, or graphics
Original text.
Because Replicated Websites reside on the http://hg-america.com domain, Harmony Green
America reserves the right to receive analytics and information regarding the usage of your
website.
4.3.3 - Domain Names, email Addresses and Online Aliases
Marketing Executives shall not use or register “Harmony Green America” or any of
Harmony Green America’s trademarks, product names, or any derivative thereof, for any
Internet domain name, email address, or online aliases. Additionally, a Marketing Executive
cannot use or register domain names, email addresses, and/or online aliases that could cause
confusion, or be misleading or deceptive, in that they cause individuals to believe or assume the
communication is from, or is the property of Harmony Green America.
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4.3.4 - Harmony Green America Hotlinks
When directing readers to a Harmony Green America Replicated Website it must be evident
from a combination of the link, and the surrounding context, to a reasonable reader that the link
will be resolving to the site of an independent Harmony Green America Marketing Executive.
Attempts to mislead web traffic into believing they are going to a Harmony Green America
corporate site, when in fact they land at a Marketing Executive’s Replicated Website will not be
allowed. The determination as to what is misleading or what constitutes a reasonable reader will
be at Harmony Green America’s sole discretion.
4.3.5 - Monetizing Replicated Websites
Marketing Executives may not monetize their Replicated Websites through affiliate programs,
adSense or similar programs.
4.3.6 - Online Classifieds
Marketing Executives may not use online classifieds (including Craigslist) to list, sell or
retail specific Harmony Green America products or product bundles. Marketing Executives may
use online classifieds (including Craigslist) for prospecting, recruiting, sponsoring and informing
the public about the Harmony Green America business opportunity, provided Harmony Green
America-approved templates/images are used. These templates will identify the Marketing
Executive as an Independent Harmony Green America Marketing Executive. If a link or URL is
provided, it must link to the Marketing Executive’s Replicated Website.
4.3.7 - eBay / Online Auctions
Harmony Green America’s products may not be listed on eBay or other online auctions, nor
may Marketing Executives enlist or knowingly allow a third party to sell Harmony Green
America products on eBay or other online auction.
4.3.8 - Online Retailing
Marketing Executives may not list or sell Harmony Green America products on any online
retail store or ecommerce site, nor may a Marketing Executive enlist or knowingly allow a third
party to sell Harmony Green America products on any online retail store or ecommerce site.
4.3.9 - Banner Advertising
Marketing Executives may place banner advertisements on a website provided the Marketing
Executive uses Harmony Green America-approved templates and images. All banner
advertisements must link to a Marketing Executive’s Replicated Website. Marketing Executives
may not use blind ads (ads that do not disclose the identity of the Company) or web pages that
make product or income claims that are ultimately associated with Harmony Green America
products or the Harmony Green America opportunity.
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4.3.10 - Spam Linking
Spam linking is defined as multiple consecutive submissions of the same or similar content
into blogs, wikis, guest books, websites or other publicly accessible online discussion boards or
forums and is not allowed. This includes blog spamming, blog comment spamming and/or
spamdexing. Any comments that a Marketing Executive makes on blogs, forums, guest books etc.
must be unique, informative and relevant.
4.3.11 - Digital Media Submission (YouTube, Facebook, Pinterest, PhotoBucket etc.)
Marketing Executives may upload, submit or publish Harmony Green America-related video,
audio or photo content that they develop and create so long as it aligns with Harmony Green
America values, contributes to the Harmony Green America community greater good and is in
compliance with Harmony Green America’s Policies and Procedures. All submissions must
clearly identify the submitter as an Independent Harmony Green America Marketing Executive
in the content itself and in the content description tag, must comply with all copyright/legal
requirements, and must state that the submitter is solely responsible for this content. Marketing
Executives may not upload, submit or publish any content (video, audio, presentations or any
computer files) received from Harmony Green America or captured at official Harmony Green
America events or in buildings owned or operated by Harmony Green America without prior
written permission.
4.3.12 - Social Media
Social Media may be used by Marketing Executives to share information about the Harmony
Green America business opportunity and for prospecting and sponsoring. Social Media sites
may not be used to sell or offer to sell specific Harmony Green America products. Profiles a
Marketing Executive generates in any social community where Harmony Green America is
discussed or mentioned must clearly identify the Marketing Executive as an Independent
Harmony Green America Marketing Executive, and when a Marketing Executive participates in
those communities, Marketing Executives must avoid inappropriate conversations, comments,
images, video, audio, applications or any other adult, profane, discriminatory or vulgar content.
The determination of what is inappropriate is at Harmony Green America’s sole discretion, and
offending Marketing Executives will be subject to disciplinary action. Banner ads and images
used on these sites must be current and must be approved by the Harmony Green America. If a
link is provided, it must link to the posting Marketing Executive’s Replicated Website.
Marketing Executives may not use blog spam, spamdexing or any other mass-replicated
methods to leave blog comments. Comments Marketing Executives create or leave must be
useful, unique, relevant and specific to the blog’s article.
Marketing Executives who elect to use Social Media must adhere to the Policies and
Procedures in all respects and particularly the following Social Media rules.
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Marketing Executives Are Responsible for Postings
Marketing Executives are personally responsible for their postings and all other online
activity that relates to Harmony Green America. Therefore, even if a Marketing Executive does
not own or operate a blog or Social Media site, if a Marketing Executive posts to any such site
that relates to Harmony Green America or which can be traced to Harmony Green America, the
Marketing Executive is responsible for the posting. Marketing Executives are also responsible
for postings which occur on any blog or Social Media site that the Marketing Executive owns,
operates, or controls.
Identification as an Independent Harmony Green America Marketing
Executive
Marketing Executives must disclose their full names on all Social Media postings, and
conspicuously identify themselves as independent Harmony Green America Marketing
Executives. Anonymous postings or use of an alias is prohibited.
Social Media as a Sales and Promotion Forum
Social Media sites are relationship-building sites. While building relationships is an
important part of the sales process, Social Media sites may not be used as a direct medium for
generating sales or explaining the Harmony Green America income opportunity. Online sales
may only be generated from a Marketing Executive’s Harmony Green America Replicated
Website. Likewise, Marketing Executives shall not use any Social Media site to explain the
Harmony Green America compensation plan or any component of the compensation plan.
Deceptive Postings
Postings that are false, misleading, or deceptive are prohibited. This includes, but is not
limited to, false or deceptive postings relating to the Harmony Green America income
opportunity, Harmony Green America’s products and/or a Marketing Executive’s biographical
information and credentials.
Use of Third Party Intellectual Property
If a Marketing Executive uses the trademarks, trade names, service marks, copyrights, or
intellectual property of any third party in any posting, it is the Marketing Executive’s
responsibility to ensure that he or she has received the proper license to use such intellectual
property and pay the appropriate license fee. All third-party intellectual property must be
properly referenced as the property of the third-party, and Marketing Executives must adhere to
any restrictions and conditions that the owner of the intellectual property places on the use of its
property.
Respecting Privacy
Marketing Executives must always respect the privacy of others in their postings. Marketing
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Executives must not engage in gossip or advance rumors about any individual, company, or
competitive products or services. Marketing Executives may not list the names of other
individuals or entities on their postings unless they have the written permission of the individual
or entity that is the subject of their posting.
Professionalism
Marketing Executives must ensure that their postings are truthful and accurate. This requires
that Marketing Executives fact-check all material they post online. Marketing Executives should
also carefully check their postings for spelling, punctuation, and grammatical errors. Use of
offensive language is prohibited.
Prohibited Postings
Marketing Executives may not make any postings, or link to any postings or other material
that:
o Is sexually explicit, obscene, or pornographic;
o Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing,
or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual
orientation, physical disability, or otherwise);
o Is graphically violent, including any violent video game images;
o Is solicitous of any unlawful behavior;
o Engages in personal attacks on any individual, group, or entity; or
o Is in violation of any intellectual property rights of the Company or any third party.
Responding to Negative Posts
Marketing Executives should not converse with anybody who places a negative post against the
Marketing Executive, other independent Marketing Executives, or Harmony Green America.
Negative posts should be reported to the Company through http://hg-america.com (Contact Us
page). Responding to such negative posts often simply fuels a discussion with someone carrying
a grudge that does not hold themselves to the same high standards as Harmony Green America,
and therefore damages the reputation and goodwill of Harmony Green America.
Social Media Sites with Website Like Features
Because some social media sites are particularly robust, the distinction between a social
media site and a website may not be clear cut. Harmony Green America therefore reserves the
sole and exclusive right to classify certain social media sites as websites and require that
Marketing Executives using, or who wish to use, such sites adhere to the Company’s policies
relating to independent websites.
Cancellation of the Agreement
If a Marketing Executive’s Harmony Green America Agreement is cancelled for any reason,
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the former Marketing Executive must discontinue using the Harmony Green America name, and
all of Harmony Green America’s trademarks, trade names, service marks, and other intellectual
property, and all derivatives of such marks and intellectual property, in any postings and all
Social Media sites that the former Marketing Executive utilizes. If a former Marketing
Executive posts on any Social Media site on which he or she previously identified himself or
herself as an independent Harmony Green America Marketing Executive, the former Marketing
Executive must conspicuously disclose that he or she is no longer an independent Harmony
Green America Marketing Executive.
4.4 - Business Entities
A corporation, limited liability company (LLC), partnership or trust (collectively referred to
in this section as a “Business Entity”) may apply to be a Harmony Green America Marketing
Executive by submitting a Marketing Executive Application and Agreement along with a
properly completed Business Entity Registration Form and a properly completed IRS Form W-9.
The Business Entity and its Affiliated Parties (See definition at Section 12) are individually,
jointly and severally liable for (a) any indebtedness to Harmony Green America, (b) compliance
with the Harmony Green America Policies and Procedures, (c) compliance with the Harmony
Green America Marketing Executive Agreement, and (d) for all other obligations to Harmony
Green America.
To prevent the circumvention of Sections 4.25 (regarding transfers and assignments of a
Harmony Green America business) and 4.5 (regarding Sponsorship Changes), if any Affiliated
Party wants to terminate his or her relationship with the Business Entity or Harmony Green
America, the Affiliated Party must terminate his or her affiliation with the Business Entity, notify
Harmony Green America in writing that he or she has terminated his or her affiliation with the
Business Entity, and must comply with the provisions of Section 4.25. In addition, the Affiliated
Party foregoing his or her interest in the Business Entity may not participate in any other
Harmony Green America business for twelve (12) consecutive calendar months in accordance
with Section 4.5.2. If the Business Entity wishes to bring on any new Affiliated Party, it must
adhere to the requirements of Section 4.25.
4.4.1 - Changes to a Business Entity
Each Marketing Executive must immediately notify Harmony Green America of all changes
to type of business entity they utilize in operating their businesses and the addition or removal of
business Affiliated Parties.
4.5 - Change of Sponsor
Harmony Green America prohibits changes in sponsorship. Except as provided below, the
transfer of a Harmony Green America business from one Sponsor to another is not permitted.
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4.5.1 - Misplacement
In cases in which the new Marketing Executive is sponsored by someone other than the
individual he or she was led to believe would be his or her Sponsor, a Marketing Executive may
request that he or she be transferred to another organization with his or her entire Marketing
Organization intact. Requests for transfer under this policy will be evaluated on a case-by-case
basis and must be made within three days from the date of enrollment. The Marketing Executive
requesting the change has the burden of proving that he or she was placed beneath the wrong
sponsor. The request must be submitted in writing to the Company through the Marketing
Executive’s replicated website My Page, and must include the reason for the transfer. It is up to
Harmony Green America’s discretion whether the requested change will be implemented.
4.5.2 - Cancellation and Re-application
A Marketing Executive may legitimately change organizations by voluntarily canceling his
or her Harmony Green America business and remaining inactive (i.e., no purchases of Harmony
Green America products for resale, no sales of Harmony Green America products, no sponsoring,
no attendance at any Harmony Green America functions, no participation in any other form of
Marketing Executive activity, no operation of any other Harmony Green America business, and
no income from the Harmony Green America business) for twelve (12) full calendar months.
Following the twelve month period of inactivity, the former Marketing Executive may reapply
under a new Sponsor; however, the former Marketing Executive’s Marketing Organization will
remain in the original line of sponsorship.
4.6 - Waiver of Claims
In cases in which the appropriate sponsorship change procedures have not been followed, and
a downline organization has been developed in the second business developed by a Marketing
Executive, Harmony Green America reserves the sole and exclusive right to determine the final
disposition of the downline organization. Resolving conflicts over the proper placement of a
downline that has developed under an organization that has improperly switched sponsors is
often extremely difficult. Therefore, MARKETING EXECUTIVES WAIVE ANY AND ALL
CLAIMS AGAINST HARMONY GREEN AMERICA, ITS OFFICERS, DIRECTORS,
OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM
HARMONY GREEN AMERICA’S DECISION REGARDING THE DISPOSITION OF
ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN
ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.
4.7 - Unauthorized Claims and Actions
4.7.1 - Indemnification
A Marketing Executive is fully responsible for all of his or her verbal and written statements
made regarding Harmony Green America products and the Compensation Plan which are not
expressly contained in official Harmony Green America materials. This includes statements and
representations made through all sources of communication media, whether person-to-person, in
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meetings, online, through Social Media, in print, or any other means of communication.
Marketing Executives agree to indemnify Harmony Green America and Harmony Green
America’s directors, officers, employees, and agents, and hold them harmless from all liability
including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred
by Harmony Green America as a result of the Marketing Executive’s unauthorized
representations or actions. This provision shall survive the termination of the Marketing
Executive Agreement.
4.7.2 - Product Claims
No claims (which include personal testimonials) as to therapeutic, curative or beneficial
properties of any products offered by Harmony Green America may be made except those
contained in official Harmony Green America literature. In particular, no Marketing Executive
may make any claim that Harmony Green America products are useful in the cure, treatment,
diagnosis, mitigation or prevention of any diseases. Such statements can be perceived as medical
or drug claims, and they may lack adequate substantiation. Not only are such claims in violation
of the Marketing Executive Agreement, they also violate the laws and regulations of the United
States, Canada, and many other countries and jurisdictions.
4.7.3 - Income Claims
A Marketing Executive, when presenting or discussing the Harmony Green America
opportunity or Compensation Plan to a prospective Marketing Executive, may not make income
projections, income claims, or disclose his or her Harmony Green America income (including
the showing of payment information, bank statements, or tax records) unless, at the time the
presentation is made, the Marketing Executive provides a current copy of the Harmony Green
America Income Disclosure Statement (IDS) to the person(s) to whom he or she is making the
presentation. Until such time as Harmony Green America publishes an IDS, no Marketing
Executive may make any type of income projection or claim, or to disclose his or her earnings
through Harmony Green America.
4.8 - Repackaging and Re-labeling Prohibited
Harmony Green America products must only be sold in their original packaging. Marketing
Executives must not repackage, re-label, or alter in any way the labels on Harmony Green
America product. Marketing Executives must not place any stickers or write any information on
any Harmony Green America product label. Tampering with labels/packaging could be a
violation of federal and state laws, and may result in civil or criminal liability.
4.9 - Commercial Outlets
Marketing Executives may not sell Harmony Green America products from a commercial
outlet, nor may Marketing Executives display or sell Harmony Green America products or
literature in any retail or service establishment. Online auction and/or sales facilitation websites,
including but not limited to eBay and Craig’s List constitute Commercial Outlets, and may not
be used to sell Harmony Green America products.
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4.10 - Trade Shows, Expositions and Other Sales Forums
Marketing Executives may display and/or sell Harmony Green America products at trade
shows and professional expositions. Before submitting a deposit to the event promoter,
Marketing Executives must contact the Company through http://hg-america.com (Contact Us page)
for conditional approval, as Harmony Green America’s policy is to authorize only one Harmony
Green America business per event. Final approval will be granted to the first Marketing
Executive who submits an official advertisement of the event, a copy of the contract signed by
both the Marketing Executive and the event official, and a receipt indicating that a deposit for the
booth has been paid. Approval is given only for the event specified. Any requests to participate
in future events must again be submitted to the Company. Harmony Green America further
reserves the right to refuse authorization to participate at any function which it does not deem a
suitable forum for the promotion of its products or the Harmony Green America opportunity.
Approval will not be given for swap meets, garage sales, flea markets or farmer’s markets as
these events are not conducive to the professional image Harmony Green America wishes to
portray.
4.11 - Conflicts of Interest
4.11.1 - Nonsolicitation
Harmony Green America Marketing Executives are free to participate in other multilevel or
network marketing business ventures or marketing opportunities (collectively “network
marketing”). However, during the term of this Agreement, Marketing Executives may not
directly or indirectly Recruit other Harmony Green America Marketing Executives or Preferred
Customers for any other network marketing business.
Following the cancellation of a Marketing Executive’s Independent Marketing Executive
Agreement, and for a period of twelve (12) calendar months thereafter, with the exception of a
Marketing Executive who was personally sponsored by the former Marketing Executive, a
former Marketing Executive may not Recruit any Harmony Green America Marketing Executive
or Preferred Customer for another network marketing business. Marketing Executives and the
Company recognize that because network marketing is conducted through networks of
independent contractors dispersed across the entire United States and internationally, and
business is commonly conducted via the internet and telephone, an effort to narrowly limit the
geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore,
Marketing Executives and Harmony Green America agree that this non-solicitation provision
shall apply nationwide and to all international markets in which Harmony Green America
Marketing Executives are located.
The term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment,
encouragement, or effort to influence in any other way, either directly, indirectly, or through a
third party, another Harmony Green America Marketing Executive or Preferred Customer to
enroll or participate in another multilevel marketing, network marketing or direct sales
opportunity. This provision shall survive the termination or expiration of the Marketing
Executive Agreement.
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4.11.2 - Marketing Executive Participation in Other Direct Selling Programs
If a Marketing Executive is engaged in other non-Harmony Green America direct selling
programs, it is the responsibility of the Marketing Executive to ensure that his or her Harmony
Green America business is operated entirely separate and apart from any other program. To this
end, the following must be adhered to:
Marketing Executives must not sell, or attempt to sell, any competing non-Harmony
Green America programs, products or services to Harmony Green America Preferred
Customers or Marketing Executives. Any program, product or services in the same
generic categories as Harmony Green America products or services is deemed to be
competing, regardless of differences in cost, quality or other distinguishing factors.
Marketing Executives shall not display Harmony Green America promotional materials,
sales aids, or products with or in the same location as any non-Harmony Green America
promotional materials, sales aids, products or services.
Marketing Executives shall not offer the Harmony Green America opportunity or
products to prospective or existing Preferred Customers or Marketing Executives in
conjunction with any non-Harmony Green America program, opportunity, product or
service.
Marketing Executives may not offer any non-Harmony Green America opportunity,
products, services or opportunity at any Harmony Green America-related meeting,
seminar, convention, webinar, teleconference, or other function.
4.11.3 - Confidential Information
“Confidential Information” includes, but is not limited to, Downline Genealogy Reports, the
identities of Harmony Green America Preferred Customers and Marketing Executives, contact
information of Harmony Green America Preferred Customers and Marketing Executives,
Marketing Executives’ personal and group sales volumes, and Marketing Executive title and/or
achievement levels. Confidential Information is, or may be available, to Marketing Executives
in their respective back-offices. Marketing Executive access to such Confidential Information is
password protected, is confidential, and constitutes proprietary information and business trade
secrets belonging to Harmony Green America. Such Confidential Information is provided to
Marketing Executives in strictest confidence and is made available to Marketing Executives for
the sole purpose of assisting Marketing Executives in working with their respective Marketing
Organizations in the development of their Harmony Green America business. Marketing
Executives may not use any Confidential Information for any purpose other than for developing
their independent Harmony Green America businesses. Where a Marketing Executive
participates in other direct selling or multilevel marketing ventures, the Marketing Executive is
not eligible to have access to certain Confidential Information, including, but not limited to,
Downline Genealogy Reports. Marketing Executives should use the Confidential Information to
assist, motivate, and train their downline Marketing Executives, and for no other purpose. In so
doing, a Marketing Executive may not disclose the Confidential Information to any third party,
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including, without limitation, his or her downline Marketing Executives. The Marketing
Executive and Harmony Green America agree that, but for this agreement of confidentiality and
nondisclosure, Harmony Green America would not provide Confidential Information to the
Marketing Executive.
To protect the Confidential Information, a Marketing Executive shall not, on his or her own
behalf, or on behalf of any other person, partnership, association, corporation or other entity:
Directly or indirectly disclose any Confidential Information to any third party;
Directly or indirectly disclose the password or other access code to his or her My Page;
Use any Confidential Information to compete with Harmony Green America or for any
purpose other than promoting his or her Harmony Green America business; or
Recruit or solicit any Marketing Executive or Preferred Customer of Harmony Green
America listed on any report or in the Marketing Executive’s My Page, or in any manner
attempt to influence or induce any Marketing Executive or Preferred Customer of
Harmony Green America, to alter their business relationship with Harmony Green
America.
The obligation of a Marketing Executive to not disclose any Confidential Information shall
survive cancellation or termination of the Agreement, and shall remain effective and binding
irrespective of whether a Marketing Executive’s Agreement has been terminated, or whether the
Marketing Executive is or is not otherwise affiliated with the Company.
4.12 - Targeting Other Direct Sellers
Harmony Green America does not condone Marketing Executives specifically or consciously
targeting the sales force of another direct sales company to sell Harmony Green America
products or to become Marketing Executives for Harmony Green America, nor does Harmony
Green America condone Marketing Executives solicitation or enticement of members of the sales
force of another direct sales company to violate the terms of their contract with such other
company. Should Marketing Executives engage in such activity, they bear the risk of being sued
by the other direct sales company. If any lawsuit, arbitration or mediation is brought against a
Marketing Executive alleging that he or she engaged in inappropriate recruiting activity of its
sales force or customers, Harmony Green America will not pay any of the Marketing Executive’s
defense costs or legal fees, nor will Harmony Green America indemnify the Marketing Executive
for any judgment, award, or settlement.
4.13 - Errors or Questions
If a Marketing Executive has questions about or believes any errors have been made
regarding commissions, bonuses, genealogy lists, or charges, the Marketing Executive must
notify Harmony Green America through Marketing Executive’s replicated website My Page or
the company website (Contact Us page) within 30 days of the date of the purported error or
incident in question. Harmony Green America will not be responsible for any errors, omissions
or problems not reported to the Company within 30 days.
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4.14 - Governmental Approval or Endorsement
Neither federal nor state regulatory agencies nor officials approve or endorse any direct
selling or network marketing companies or programs. Therefore, Marketing Executives shall not
represent or imply that Harmony Green America or its Compensation Plan have been
"approved," "endorsed" or otherwise sanctioned by any government agency.
4.15 - Holding Orders
Marketing Executives must not manipulate purchases of products. All product orders must
be sent to Harmony Green America within 72 hours from the time they are placed by a Customer.
4.16 - Income Taxes
Each Marketing Executive is responsible for paying local, state and federal taxes on any
income generated as an Independent Marketing Executive. If a Marketing Executive’s Harmony
Green America business is tax exempt, the Federal tax identification number must be provided to
Harmony Green America. Every year, Harmony Green America will provide an IRS Form 1099
MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had
earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous
calendar year in excess of $5,000.
Harmony Green America cannot provide Marketing Executives with any personal tax advice.
Marketing Executives should consult with their own tax accountant, tax attorney, or other tax
professional.
4.17 - Independent Contractor Status
Marketing Executives are independent contractors. The agreement between Harmony Green
America and its Marketing Executives does not create an employer/employee relationship,
agency, partnership, or joint venture between the Company and the Marketing Executive.
Marketing Executives shall not be treated as an employee for his or her services or for Federal or
State tax purposes. All Marketing Executives are responsible for paying local, state, and federal
taxes due from all compensation earned as a Marketing Executive of the Company. The
Marketing Executive has no authority (expressed or implied), to bind the Company to any
obligation. Each Marketing Executive shall establish his or her own goals, hours, and methods
of sale, so long as he or she complies with the terms of the Marketing Executive Agreement,
these Policies and Procedures, and applicable laws.
4.18 - Insurance
You may wish to arrange insurance coverage for your business. Your homeowner’s
insurance policy does not cover business-related injuries or the theft of or damage to inventory or
business equipment. Contact your insurance agent to make certain that your business property is
protected. This can often be accomplished with a simple “Business Pursuit” endorsement
attached to your present home owner’s policy.
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4.19 - International Marketing
Marketing Executives are authorized to sell Harmony Green America products and enroll
Preferred Customers or Marketing Executives only in the countries in which Harmony Green
America is authorized to conduct business, as announced in official Company literature.
Harmony Green America products or sales aids may not be shipped into or sold in any other
country except as authorized by the Company. A Marketing Executive may sell, give away,
transfer, or distribute Harmony Green America products or sales aids only in the Marketing
Executive’s home country, except as authorized by the Company. In addition, no Marketing
Executive may, in any unauthorized country: (a) conduct sales, enrollment or training meetings;
(b) enroll or attempt to enroll potential Preferred Customers or Marketing Executives; or (c)
conduct any other activity for the purpose of selling Harmony Green America products,
establishing a Marketing Organization, or promoting the Harmony Green America opportunity.
4.20 - Excess Inventory and Bonus Buying
Marketing Executives must never purchase more products than they can reasonably use or
sell to Customers in a month, and must not influence or attempt to influence any other Marketing
Executive to buy more products than they can reasonably use or sell to Customers in a month. In
addition, bonus buying is strictly prohibited. Bonus buying includes any mechanism or artifice to
qualify for title advancement, incentives, prizes, commissions or bonuses that is not driven by
bona fide product purchases by end user consumers. Bonus buying includes, but is not limited to,
purchasing products through a third party (a “straw man”) or through the use of any other artifice.
4.21 - Adherence to Laws and Ordinances
Marketing Executives shall comply with all federal, state, and local laws and regulations in
the conduct of their businesses. Many cities and counties have laws regulating certain home-
based businesses. In most cases these ordinances are not applicable to Marketing Executives
because of the nature of their business. However, Marketing Executives must obey those laws
that do apply to them. If a city or county official tells a Marketing Executive that an ordinance
applies to him or her, the Marketing Executive shall be polite and cooperative, and immediately
send a copy of the ordinance to Harmony Green America.
4.22 - One Harmony Green America Business Per Marketing Executive
A Marketing Executive may operate or have an ownership interest, legal or equitable, as a
sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Harmony Green
America business. No individual may have, operate or receive compensation from more than
one Harmony Green America business. There is no exception to the one business per Marketing
Executive in any case.
4.23 - Actions of Household Members or Affiliated Parties
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If any member of a Marketing Executive’s immediate household engages in any activity
which, if performed by the Marketing Executive, would violate any provision of the Agreement,
such activity will be deemed a violation by the Marketing Executive and Harmony Green
America may take disciplinary action pursuant to these Policies and Procedures against the
Marketing Executive. Similarly, if any individual associated in any way with a corporation,
partnership, LLC, trust or other entity (collectively “Business Entity”) violates the Agreement,
such action(s) will be deemed a violation by the Business Entity, and Harmony Green America
may take disciplinary action against the Business Entity. Likewise, if a Marketing Executive
enrolls in Harmony Green America as a Business Entity, each Affiliated Party of the Business
Entity shall be personally and individually bound to, and must comply with, the terms and
conditions of the Agreement.
4.24 - Roll-up of Marketing Organization
When a vacancy occurs in a Marketing Organization due to the termination of a Harmony
Green America business, each Marketing Executive in the first level immediately below the
terminated Marketing Executive on the date of the cancellation will be moved to the first level
(“front line”) of the terminated Marketing Executive’s sponsor. For example, if A sponsors B,
and B sponsors C1, C2, and C3, if B terminates her business, C1, C2, and C3 will “roll-up” to A
and become part of A’s first level.
4.25 - Sale, Transfer or Assignment of an Independent Harmony Green America Business
Although a Harmony Green America business is a privately owned and independently
operated business, the sale, transfer or assignment of a Harmony Green America business, and
the sale, transfer, or assignment of an interest in a Business Entity that owns or operates a
Harmony Green America business, is subject to certain limitations. If a Marketing Executive
wishes to sell his or her Harmony Green America business, or interest in a Business Entity that
owns or operates a Harmony Green America business, the following criteria must be met:
The selling Marketing Executive must offer Harmony Green America the right of first
refusal to purchase the business on the same terms as agreed upon with a third-party
buyer. Harmony Green America shall have fifteen days from the date of receipt of the
written offer from the seller to exercise its right of first refusal.
The buyer or transferee must become a qualified Harmony Green America Marketing
Executive. If the buyer is an active Harmony Green America Marketing Executive, he or
she must first terminate his or her Harmony Green America business before acquiring
any interest in a different Harmony Green America business.
Before the sale, transfer or assignment can be finalized and approved by Harmony Green
America, any debt obligations the selling party has with Harmony Green America must
be satisfied.
The selling party must be in good standing and not in violation of any of the terms of the
Agreement in order to be eligible to sell, transfer or assign a Harmony Green America
business.
Prior to selling an independent Harmony Green America business or Business Entity interest,
the selling Marketing Executive must notify Harmony Green America in writing and advise of
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his or her intent to sell his or her Harmony Green America business or Business Entity interest.
The selling Marketing Executive must also receive written approval from the Company before
proceeding with the sale. No changes in line of sponsorship can result from the sale or transfer
of a Harmony Green America business. The Title of the selling Marketing Executive will not
automatically be transferred to the purchaser. The Title of the selling Marketing Executive will
be transferred to the purchaser only at the Company’s discretion.
4.26 - Separation of a Harmony Green America Business
Harmony Green America Marketing Executives sometimes operate their Harmony Green
America businesses as husband-wife partnerships, regular partnerships, LLCs, corporations,
trusts, or other Business Entities. At such time as a marriage may end in divorce or a corporation,
LLC, partnership, trust or other Business Entity may dissolve, arrangements must be made to
assure that any separation or division of the business is accomplished so as not to adversely
affect the interests and income of other businesses up or down the line of sponsorship.
During the divorce or entity dissolution process, the parties must adopt one of the following
methods of operation:
One of the parties may, with consent of the other(s), operate the Harmony Green America
business pursuant to an assignment in writing whereby the relinquishing spouse,
shareholders, partners or trustees authorize Harmony Green America to deal directly and
solely with the other spouse or non-relinquishing shareholder, partner or trustee.
The parties may continue to operate the Harmony Green America business jointly on a
“business-as-usual” basis, whereupon all compensation paid by Harmony Green America
will be paid according to the status quo as it existed prior to the divorce filing or
dissolution proceedings. This is the default procedure if the parties do not agree on the
format set forth above.
Under no circumstances will the Marketing Organization of divorcing spouses or a dissolving
business entity be divided. Similarly, under no circumstances will Harmony Green America split
commission and bonus payments between divorcing spouses or members of dissolving entities.
Harmony Green America will recognize only one Marketing Organization and will issue only
one commission payment per Harmony Green America business per commission cycle.
Commission payments shall always be issued to the same individual or entity. In the event that
parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition
of commissions and ownership of the business in a timely fashion as determined by the
Company, the Marketing Executive Agreement shall be involuntarily canceled.
If a former spouse has completely relinquished all rights in the original Harmony Green
America business pursuant to a divorce, he or she is thereafter free to enroll under any sponsor of
his or her choosing. In the case of business entity dissolutions, the former partner, shareholder,
member, or other entity affiliate who retains no interest in the business is thereafter free to enroll
under any sponsor of it choosing. In either case, the former spouse or business affiliate shall
have no rights to any Marketing Executives in their former Marketing Organization or to any
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former Customer or Preferred Customer. They must develop the new business in the same
manner as would any other new Marketing Executive.
4.27 - Sponsoring Online
When sponsoring a new Marketing Executive through the online enrollment process, the
Sponsor may assist the new applicant in filling out the enrollment materials. However, the
applicant must personally review and agree to the online application and agreement, Harmony
Green America’s Policies and Procedures, and the Harmony Green America Compensation Plan.
The Sponsor may not fill out the online application and agreement on behalf of the applicant and
agree to these materials on behalf of the applicant.
4.28 - Succession
Upon the death or incapacitation of a Marketing Executive, his or her business may be passed
to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure
the transfer is proper. Accordingly, a Marketing Executive should consult an attorney to assist
him or her in the preparation of a will or other testamentary instrument. Whenever a Harmony
Green America business is transferred by a will or other testamentary process, the beneficiary
acquires the right to collect all bonuses and commissions of the deceased Marketing Executive’s
Marketing Organization provided the following qualifications are met. The successor(s) must:
Execute a Marketing Executive Agreement;
Comply with terms and provisions of the Agreement; and
Meet all of the qualifications for the deceased Marketing Executive’s status.
The devisee(s) must provide Harmony Green America with an “address of record”. If the
business is bequeathed to joint devisees, they must form a business entity and acquire a Federal
Taxpayer Identification Number. Harmony Green America will issue all bonus and commission
payments and one 1099 to the business entity. The Title of the deceased or incapacitated
Marketing Executive will not automatically be transferred to the devisee(s). The Title of the
deceased or incapacitated Marketing Executive will be transferred to the devisee(s) only at the
Company’s discretion.
4.28.1 - Transfer Upon Death of a Marketing Executive
To effect a testamentary transfer of a Harmony Green America business, the executor of the
estate must provide the following to Harmony Green America: (1) an original death certificate;
(2) certified letters testamentary or a letter of administration appointing an executor; and (3)
written instructions from the authorized executor to Harmony Green America specifying to
whom the business and income should be transferred.
4.28.2 - Transfer Upon Incapacitation of a Marketing Executive
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To effectuate a transfer of a Harmony Green America business because of incapacity, the
successor must provide the following to Harmony Green America: (1) a notarized copy of an
appointment as trustee; (2) a notarized copy of the trust document or other documentation
establishing the trustee’s right to administer the Harmony Green America business; and (3) a
completed Marketing Executive Agreement executed by the trustee.
4.29 - Telemarketing Techniques
The Federal Trade Commission and the Federal Communications Commission each have
laws that restrict telemarketing practices. Both federal agencies (as well as a number of states)
have “do not call” regulations as part of their telemarketing laws. Although Harmony Green
America does not consider Marketing Executives to be “telemarketers” in the traditional sense of
the word, these government regulations broadly define the term “telemarketer” and
“telemarketing” so that your inadvertent action of calling someone whose telephone number is
listed on the federal “do not call” registry could cause you to violate the law. Moreover, these
regulations must not be taken lightly, as they carry significant penalties.
Therefore, Marketing Executives must not engage in telemarketing in the operation of their
Harmony Green America businesses. The term “telemarketing” means the placing of one or
more telephone calls to an individual or entity to induce the purchase of a Harmony Green
America product, or to recruit them for the Harmony Green America opportunity. “Cold calls"
made to prospective Customers, Preferred Customers, or Marketing Executives that promote
either Harmony Green America’s products or the Harmony Green America opportunity
constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective
Customer, Preferred Customer, or Marketing Executive (a "prospect") is permissible under the
following situations:
If the Marketing Executive has an established business relationship with the prospect. An
“established business relationship” is a relationship between a Marketing Executive and a
prospect based on the prospect’s purchase, rental, or lease of goods or services from the
Marketing Executive, or a financial transaction between the prospect and the Marketing
Executive, within the eighteen (18) months immediately preceding the date of a
telephone call to induce the prospect's purchase of a product or service.
In response to a prospect’s personal inquiry or application regarding a product or service
offered by the Marketing Executive, within the three (3) months immediately preceding
the date of such a call.
If the Marketing Executive receives written and signed permission from the prospect
authorizing the Marketing Executive to call. The authorization must specify the
telephone number(s) which the Marketing Executive is authorized to call.
If the prospect is a family member, a personal friend, or an acquaintance. An
“acquaintance” is someone with whom a Marketing Executive has at least a recent first-
hand relationship within the preceding three months. Bear in mind, however, that if a
Marketing Executive engages in “card collecting” with everyone the Marketing
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Executive meets and subsequently calling them, the FTC may consider this a form of
telemarketing that is not subject to this exemption. Thus, if a Marketing Executive
engages in calling “acquaintances,” the Marketing Executive must make such calls on an
occasional basis only and not make this a routine practice.
Marketing Executives shall not use automatic telephone dialing systems or software relative
to the operation of their Harmony Green America businesses. Marketing Executives shall not
place or initiate any outbound telephone call to any person that delivers any pre-recorded
message (a “robocall”) regarding or relating to the Harmony Green America products or
opportunity.
4.30 - My Page Access
Harmony Green America makes an online “My Page” available to its Marketing Executives.
My Page provides Marketing Executives access to confidential and proprietary information that
may be used solely and exclusively to promote the development of a Marketing Executive’s
Harmony Green America business and to increase sales of Harmony Green America products.
However, access to a Marketing Executive’s My Page is a privilege, and not a right. Harmony
Green America reserves the right to deny a Marketing Executive’s access to My Page at its sole
discretion.
SECTION 5 - RESPONSIBILITIES OF MARKETING EXECUTIVES
5.1 - Change of Contact Information
To ensure timely delivery of products, support materials, commissions, and tax documents, it
is important that Harmony Green America’s files are current. Street addresses are required for
shipping. Marketing Executives planning to change any of their contact information or move
must update their contact information via the My Page function of the Marketing Executive’s
replicated Harmony Green America website. The change(s) will be effective within one (1)
week of the date that the notification is received by the Company.
5.2 - Continuing Development Obligations
5.2.1 - Ongoing Training
Any Marketing Executive who sponsors another Marketing Executive into Harmony Green
America must perform a bona fide assistance and training function to ensure that his or her
downline is properly operating his or her Harmony Green America business. Marketing
Executives must have ongoing contact and communication with the Marketing Executives in
their Marketing Organizations. Examples of such contact and communication may include, but
are not limited to: newsletters, written correspondence, personal meetings, telephone contact,
voice mail, electronic mail, and the accompaniment of downline Marketing Executives to
Harmony Green America meetings, training sessions, and other functions. Upline Marketing
Executives are also responsible to motivate and train new Marketing Executives in Harmony
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Green America product knowledge, effective sales techniques, the Harmony Green America
Compensation Plan, and compliance with Company Policies and Procedures. Communication
with and the training of downline Marketing Executives must not, however, violate Sections 4.1
and/or 4.2 (regarding the development of Marketing Executive-produced sales aids and
promotional materials).
Marketing Executives should monitor the Marketing Executives in their Marketing
Organizations to guard against downline Marketing Executives making improper product or
business claims, or engaging in any illegal or inappropriate conduct.
5.2.2 - Increased Training Responsibilities
As Marketing Executives progress through the various levels of leadership, they will become
more experienced in sales techniques, product knowledge, and understanding of the Harmony
Green America program. They will be called upon to share this knowledge with lesser
experienced Marketing Executives within their Marketing Organization.
5.2.3 - Ongoing Sales Responsibilities
Regardless of their level of achievement, Marketing Executives have an ongoing obligation
to continue to personally promote sales through the generation of new Customers and Preferred
Customers and through servicing their existing Customers and Preferred Customers.
5.3 - Nondisparagement
Harmony Green America values constructive criticisms and comments from Marketing
Executives. All such comments should be submitted to Harmony Green America through
Marketing Executive’s replicated website or the company website, http://hg-america.com
(Contact Us page). While Harmony Green America welcomes constructive input, negative
comments and remarks made in the field by Marketing Executives about the Company, its
products, or Compensation Plan serve no purpose other than to sour the enthusiasm of other
Harmony Green America Marketing Executives. For this reason, and to set the proper example
for their Marketing Organizations, Marketing Executives must not disparage, demean, or make
negative remarks about Harmony Green America, other Harmony Green America Marketing
Executives, Harmony Green America’s products, the Compensation Plan, or Harmony Green
America’s directors, officers, or employees.
5.4 - Providing Documentation to Applicants
Marketing Executives must advise those individuals whom they are sponsoring to become
Marketing Executives before they enter into the Marketing Executive Agreement that such
individuals have online access to the most current version of the Policies and Procedures and the
Compensation Plan.
SECTION 6 - SALES REQUIREMENTS
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6.1 - Product Sales
The Harmony Green America Compensation Plan is based on the sale of Harmony Green
America products to end consumers. Marketing Executives must fulfill personal and downline
organization retail sales requirements (as well as meet other responsibilities set forth in the
Agreement) to be eligible for bonuses, commissions and advancement to higher levels of
achievement. To be eligible for commissions, Marketing Executives must satisfy the Personal
Sales Volume and the other requirements associated with their title as specified in the Harmony
Green America Compensation Plan. “Personal Sales Volumes” includes purchases made by the
Marketing Executive and the Marketing Executive’s Customers.
6.2 - Sales Receipts
All Marketing Executives must provide their Customers with two copies of an official
Harmony Green America sales receipt at the time of the sale. These receipts set forth the
Customer Satisfaction Guarantee as well as any consumer protection rights afforded by federal
or state law. Marketing Executives must maintain all retail sales receipts for a period of two
years and furnish them to Harmony Green America at the Company’s request. Records
documenting the purchases of Marketing Executives’ personally enrolled Preferred Customers
will be maintained by Harmony Green America.
Remember that Customers must receive two copies of the sales receipt. In addition,
Marketing Executives must orally inform the buyer of his or her cancellation rights.
SECTION 7 - BONUSES AND COMMISSIONS
7.1 - Bonus and Commission Qualifications and Accrual
A Marketing Executive must be active and in compliance with the Agreement to qualify for
bonuses and commissions. So long as a Marketing Executive complies with the terms of the
Agreement, Harmony Green America shall pay commissions to such Marketing Executive in
accordance with the Compensation Plan. The minimum amount for which Harmony Green
America will issue a commission is $100. If a Marketing Executive’s bonuses and commissions
do not equal or exceed $100, the Company will accrue the commissions and bonuses until they
total $100. Payment will be issued once $100 has been accrued.
Notwithstanding the foregoing, all commissions, bonuses or other compensation owed a
Marketing Executive, regardless of the amount accrued, will be paid at the end of each fiscal
year or upon the termination of a Marketing Executive’s Marketing Executive Agreement.
7.2 - Bonus and Commission Payment Method
The Company pays commissions and bonuses via direct deposit into Marketing Executives’
bank accounts. Therefore, accurate bank account information is required.
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7.3 - Adjustment to Bonuses and Commissions
7.3.1 - Adjustments for Returned Products
Marketing Executives receive bonuses and commissions based on the actual sales of products
and services to end consumers. When a product is returned to Harmony Green America for a
refund, either of the following may occur at the Company’s discretion: (1) the bonuses and
commissions attributable to the returned or repurchased product will be deducted, in the month
in which the refund is given, and continuing every pay period thereafter until the bonuses and
commissions are recovered, from the Marketing Executive and upline Marketing Executives who
received bonuses and commissions on the sales of the refunded product; (2) the bonuses and
commissions attributable to the refunded product may be deducted from any refunds or credits to
the Marketing Executive who received the bonuses or commissions on the sales of the refunded
product; or (3) Marketing Executives may be asked to return the bonuses and commissions they
have received attributable to the refund to the company.
7.3.2 - Tax Withholdings
If a Marketing Executive fails to submit a valid Social Security Number or Federal Tax ID
Number to Harmony Green America when enrolling, Harmony Green America will deduct the
necessary back-up withholdings from the Marketing Executive’s bonus and commission
payments as required by law.
7.4 - Reports
All information provided by Harmony Green America in downline activity or downline
genealogy reports, including but not limited to Personal Sales Volumes (or any part thereof), and
downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various
factors including but not limited to the inherent possibility of human, digital, and mechanical
error; the accuracy, completeness, and timeliness of orders; denial of credit card payments;
returned products; and credit card charge backs, the information is not guaranteed by Harmony
Green America or any persons creating or transmitting the information.
ALL PERSONAL SALES VOLUME INFORMATION IS PROVIDED “AS IS” WITHOUT
WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND
WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR
NON-INFRINGEMENT.
TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, HARMONY
GREEN AMERICA AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE
INFORMATION WILL IN NO EVENT BE LIABLE TO ANY MARKETING EXECUTIVE
OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL,
SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO
PERSONAL SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO
LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND
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DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS,
INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF
HARMONY GREEN AMERICA OR OTHER PERSONS CREATING OR TRANSMITTING
THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, HARMONY GREEN
AMERICA OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION
SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE
UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS
LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS
AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.
Access to and use of Harmony Green America’s website to download reports and your
reliance upon such information is at your own risk. All such information is provided to you "as
is". If you are dissatisfied with the accuracy or quality of the information, your sole and
exclusive remedy is to discontinue your use of and reliance upon the information.
SECTION 8 - PRODUCT GUARANTEES, RETURNS AND INVENTORY
REPURCHASE
8.1 - Product Guarantee, Warranty and Rescission
Federal and state law requires that Marketing Executives notify their Customers that they
have three business days (5 business days for Alaska residents. Saturday is a business day,
Sundays and legal holidays are not business days) within which to cancel their purchase and
receive a full refund upon return of the products in substantially as good condition as when they
were delivered. Marketing Executives MUST verbally inform their Customers of this right, they
MUST provide their Customers with TWO copies of a retail receipt at the time of the sale, and
MUST point out this cancellation right stated on the receipt.
Harmony Green America offers a 100% 30-day money-back satisfaction guarantee (less
shipping charges) to all Preferred Customers, Customers, and Marketing Executives.
Products shipped directly to a Preferred Customer by the Company must be returned to the
Company and a refund will be issued to the Preferred Customer by the Company. Products
delivered to the Customer by a Marketing Executive must be returned to the selling Marketing
Executive, and it shall be the responsibility of the Marketing Executive to issue the refund to
his/her Customer. This product satisfaction guarantee does not apply to products damaged by
abuse or misuse, and shipping costs are not refundable. Marketing Executives shall disclose the
terms of any warranty to his/her Customers at the time of sale and shall also point out this
warranty information on the sales receipt.
If a Marketing Executive returns more than $200 in products for a refund in any 12
consecutive month period, the request will constitute the Marketing Executive’s voluntary
cancellation of his or her Marketing Executive Agreement, and the refund will be processed as
an inventory repurchase pursuant to Section 8.3, and the Marketing Executive’s Harmony Green
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America business will be cancelled
8.2 - Returns by Customers
Harmony Green America offers, through its Marketing Executives, a 100% 30-day money-
back guarantee to all Customers. Every Marketing Executive is bound to honor the Customer
guarantee. If, for any reason, a Customer is dissatisfied with any Harmony Green America
product, the Customer may return the unused portion of the product to the Marketing Executive
from whom it was purchased, within 30 days, for a replacement, exchange or a full refund of the
purchase price (less shipping costs).
The following provision sets forth the minimum refund permitted by law to a Customer:
A Customer who makes a purchase of $25.00 or more has three business days (72 hours,
excluding Sundays and legal holidays) after the sale or execution of a contract to cancel the order
and receive a full refund consistent with the cancellation notice on the order form or sales receipt
(5 days for Alaska residents). When a Marketing Executive makes a sale or takes an order from
a Customer who cancels or requests a refund within the 72 hour period, the Marketing Executive
must promptly refund the Customer's money as long as the products are returned to the
Marketing Executive in substantially as good condition as when received (5 days for Alaska
residents). Marketing Executives must orally inform Customers of their right to rescind a
purchase or an order within 72 hours (5 days for Alaska residents), and ensure that the date of the
order or purchase is entered on the order form. All Customers must be provided with two copies
of an official Harmony Green America sales receipt at the time of the sale. The back of the
receipt provides the Customer with written notice of his or her rights to cancel the sales
agreement.
8.3 - Return of Inventory and Sales Aids by Marketing Executives Upon Cancellation
Upon cancellation of a Marketing Executive’s Agreement, the Marketing Executive may
return his or her Starter Kit, products and sales aids that are in Resalable condition for a
refund. In order to receive a refund from Harmony Green America pursuant to this policy, the
following requirements must be met:
The items being returned must have been personally purchased by the Marketing
Executive from Harmony Green America (purchases from other Marketing Executives or
third parties are not subject to refund);
The items must be in Resalable condition (see Definition of “Resalable” below); and
The items must have been purchased from Harmony Green America within one year
prior to the date of cancellation.
Upon receipt of a Resalable Starter Kit and/or Resalable products and sales aids, the
Marketing Executive will be reimbursed 90% of the net cost of the original purchase
price(s). Shipping and handling charges incurred by a Marketing Executive when the Starter Kit,
products or sales aids were purchased, and return shipping fees, will not be refunded. If the
purchases were made through a credit card, the refund will be credited back to the same
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account. If a Marketing Executive was paid a bonus or commission based on a product(s) that he
or she purchased, and such product(s) is subsequently returned for a refund, the bonus and/or
commission that was paid to the Marketing Executive based on that product purchase will be
deducted from the amount of the refund.
Products and Sales aids shall be deemed “Resalable” if each of the following elements is
satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or
damaged; 3) they are in a condition such that it is a commercially reasonable practice within the
trade to sell the merchandise at full price; and 4) they are returned to Harmony Green America
within one year from the date of purchase. Any merchandise that is clearly identified at the time
of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.
8.4 - Procedures for All Returns
The following procedures apply to all returns for refund, repurchase, or exchange:
All merchandise must be returned by the Marketing Executive or Preferred Customer
who purchased it directly from Harmony Green America.
The return is accompanied by the original packing slip, sales receipt, or invoice, a
completed and signed Product Return Form, and the unused portion of the product in its
original container.
Proper shipping carton(s) and packing materials are to be used in packaging the
product(s) being returned for replacement, and the best and most economical means of
shipping is suggested. All returns must be shipped to Harmony Green America shipping
pre-paid. Harmony Green America does not accept shipping-collect packages. The risk
of loss in shipping for returned product shall be on the Marketing Executive. If returned
product is not received by the Company, it is the responsibility of the Marketing
Executive to trace the shipment.
If a Marketing Executive is returning merchandise to Harmony Green America that was
returned to him or her by a personal Customer, the product must be received by Harmony
Green America within ten (10) days from the date on which the Customer returned the
merchandise to the Marketing Executive, and must be accompanied by the sales receipt
the Marketing Executive gave to the Customer at the time of the sale.
No refund or replacement of product will be made if the conditions of these rules are not met.
SECTION 9 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
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9.1 - Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, violation of any common law
duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent,
deceptive or unethical business conduct, or any act or omission by a Marketing Executive that, in
the sole discretion of the Company may damage its reputation or goodwill (such damaging act or
omission need not be related to the Marketing Executive’s Harmony Green America business),
may result, at Harmony Green America's discretion, in one or more of the following corrective
measures:
Issuance of a written warning or admonition;
Requiring the Marketing Executive to take immediate corrective measures;
Imposition of a fine, which may be withheld from bonus and commission payments;
Loss of rights to one or more bonus and commission payments;
Harmony Green America may withhold from a Marketing Executive all or part of the
Marketing Executive’s bonuses and commissions during the period that Harmony Green
America is investigating any conduct allegedly violative of the Agreement. If a
Marketing Executive’s business is canceled for disciplinary reasons, the Marketing
Executive will not be entitled to recover any commissions withheld during the
investigation period;
Suspension of the individual’s Marketing Executive Agreement for one or more pay
periods;
Permanent or temporary loss of, or reduction in, the current and/or lifetime title of a
Marketing Executive (which may subsequently be re-earned by the Marketing
Executive);
Transfer or removal of some or all of a Marketing Executive’s downline Marketing
Executives from the offending Marketing Executive’s Marketing Organization;
Involuntary termination of the offender’s Marketing Executive Agreement;
Suspension and/or termination of the offending Marketing Executive’s Harmony Green
America website or website access; or
Any other measure expressly allowed within any provision of the Agreement or which
Harmony Green America deems practicable to implement and appropriate to equitably
resolve injuries caused partially or exclusively by the Marketing Executive’s policy
violation or contractual breach.
In situations deemed appropriate by Harmony Green America, the Company may institute
legal proceedings for monetary and/or equitable relief.
9.2 - Grievances and Complaints
When a Marketing Executive has a grievance or complaint with another Marketing Executive
regarding any practice or conduct in relationship to their respective Harmony Green America
businesses, the complaining Marketing Executive should first report the problem to his or her
Sponsor who should review the matter and try to resolve it with the other party's upline sponsor.
If the matter involves interpretation or violation of Company policy, it must be reported in
writing to Harmony Green America. The Company will review the facts and attempt to resolve
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it.
9.3 - Mediation
Prior to instituting an arbitration as provided in Section 9.4 below, the parties shall meet in
good faith and attempt to resolve any dispute arising from or relating to the Agreement through
non-binding mediation. One individual who is mutually acceptable to the parties shall be
appointed as mediator. If the parties cannot agree on a mediator within 14 days from the date
that a party submits a written request for mediation, the complaining party shall apply to the
American Arbitration Association (“AAA”) to appoint a mediator. The mediation shall occur
within 60 days from the date on which the mediator is appointed. The mediator’s fees and costs,
as well as the costs of holding and conducting the mediation, shall be divided equally between
the parties. Each party shall pay its portion of the anticipated shared fees and costs at least 10
days in advance of the mediation. Each party shall pay its own attorney’s fees, costs, and
individual expenses associated with conducting and attending the mediation. Mediation shall be
held in the City of Harlingen, Texas and shall last no more than two business days.
9.4 - Arbitration
If mediation is unsuccessful, any controversy or claim arising out of or relating to the
Agreement, or the breach thereof, shall be settled by arbitration. The Parties waive all
rights to trial by jury or to any court. The arbitration shall be filed with, and administered by,
the American Arbitration Association (“AAA”) or JAMS (“JAMS”) under their respective rules
and procedures. The Commercial Arbitration Rules and Mediation Procedures of the AAA are
available at the AAA’s website at www.adr.org. The Streamlined Arbitration Rules & Procedures of
JAMS are available at the JAMS website at www.jamsadr.com. Copies of the AAA’s Commercial
Arbitration Rules and Mediation Procedures or JAM’s Streamlined Arbitration Rules & Procedures
will be emailed to Marketing Executives upon request to Harmony Green America.
Notwithstanding the rules of the AAA or JAMS, the following shall apply to all Arbitration
actions:
The Federal Rules of Evidence shall apply in all cases;
The parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil
Procedure;
The parties shall be entitled to bring motions under Rules 12 and/or 56 of the Federal
Rules of Civil Procedure;
The arbitration shall occur within 180 days from the date on which the arbitrator is
appointed, and shall last no more than five business days; and
The parties shall be allotted equal time to present their respective cases, including cross-
examinations.
All arbitration proceedings shall be held in Harlingen, Texas. There shall be one arbitrator
selected from the panel that the Alternate Dispute Resolution service provides. Each party to the
arbitration shall be responsible for its own costs and expenses of arbitration, including legal and
filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if
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necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to
arbitrate shall survive the cancellation or termination of the Agreement.
The parties and the arbitrator shall maintain the confidentiality of the entire arbitration
process and shall not disclose to any person not directly involved in the arbitration process:
The substance of, or basis for, the controversy, dispute, or claim;
The content of any testimony or other evidence presented at an arbitration hearing or
obtained through discovery in arbitration;
The terms or amount of any arbitration award; or
The rulings of the arbitrator on the procedural and/or substantive issues involved in the
case.
Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent either
party from applying to and obtaining from any court having jurisdiction a writ of attachment, a
temporary injunction, preliminary injunction, permanent injunction, or other relief available to
safeguard and protect its intellectual property rights and/or to enforce its rights under the
nonsolicitation provision of the Agreement.
9.5 - Governing Law, Jurisdiction and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in
Cameron County, State of Texas. The Federal Arbitration Act shall govern all matters relating to
arbitration. The law of the State of Texas shall govern all other matters relating to or arising
from the Agreement.
9.5.1 - Louisiana Residents
Notwithstanding the foregoing, and the mediation and arbitration provisions in Sections 9.3
and 9.4, residents of the State of Louisiana shall be entitled to bring an action against Harmony
Green America in their home forum and pursuant to Louisiana law.
SECTION 10 - PAYMENT AND SHIPPING
10.1 - Restrictions on Third Party Use of Credit Cards and Checking Account Access
A Marketing Executive shall not permit other Marketing Executives, Preferred Customers, or
Customers to use his or her credit card, or permit debits to his or her checking accounts, to enroll
or to make purchases from the Company.
10.2 - Sales Taxes
Harmony Green America is required to charge sales taxes on all purchases made by
Marketing Executives, and remit the taxes charged to the respective states. Accordingly,
Harmony Green America will collect and remit sales taxes on behalf of Marketing Executives,
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based on the suggested retail price of the product, according to applicable tax rates in the state or
province to which the shipment is destined. If a Marketing Executive has submitted, and
Harmony Green America has accepted, a current Sales Tax Exemption Certificate and Sales Tax
Registration License, sales taxes will not be added to the invoice and the responsibility of
collecting and remitting sales taxes to the appropriate authorities shall be on the Marketing
Executive. Exemption from the payment of sales tax is applicable only to orders which are
shipped to a state for which the proper tax exemption papers have been filed and accepted.
Applicable sales taxes will be charged on orders that are drop-shipped to another state. Any
sales tax exemption accepted by Harmony Green America is not retroactive.
SECTION 11 - INACTIVITY, RECLASSIFICATION, AND CANCELLATION
11.1 - Effect of Cancellation
So long as a Marketing Executive remains active and complies with the terms of the
Marketing Executive Agreement and these Policies and Procedures, Harmony Green America
shall pay commissions to such Marketing Executive in accordance with the Compensation Plan.
A Marketing Executive’s bonuses and commissions constitute the entire consideration for the
Marketing Executive's efforts in generating sales and all activities related to generating sales
(including building a Marketing Organization). Following a Marketing Executive’s cancellation
for inactivity, or voluntary or involuntary cancellation of his or her Marketing Executive
Agreement (all of these methods are collectively referred to as “cancellation”), the former
Marketing Executive shall have no right, title, claim or interest to the Marketing Organization
which he or she operated, or any commission or bonus from the sales generated by the
organization. A Marketing Executive whose business is cancelled will lose all rights as a
Marketing Executive. This includes the right to sell Harmony Green America products
and services and the right to receive future commissions, bonuses, or other income
resulting from the sales and other activities of the Marketing Executive’s former
Marketing Organization. In the event of cancellation, Marketing Executives agree to waive
all rights they may have, including but not limited to property rights, to their former
Marketing Organization and to any bonuses, commissions or other remuneration derived
from the sales and other activities of his or her former Marketing Organization.
Following a Marketing Executive’s cancellation of his or her Marketing Executive
Agreement, the former Marketing Executive shall not hold himself or herself out as a Harmony
Green America Marketing Executive and shall not have the right to sell Harmony Green America
products or services. A Marketing Executive whose Marketing Executive Agreement is canceled
shall receive commissions and bonuses only for the last full pay period he or she was active prior
to cancellation (less any amounts withheld during an investigation preceding an involuntary
cancellation).
11.2 - Cancellation Due to Inactivity
If a Marketing Executive has not generated the sale of at least 1 case of the Basic Product in
a three (3) consecutive month period (and thus become “inactive”), his or her Marketing
Executive Agreement shall be canceled for inactivity and will not be renewed.
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11.2.1 Reclassification Following Cancellation Due to Inactivity
If a Marketing Executive’s Agreement is cancelled due to inactivity, he or she will be
reclassified as a Preferred Customer.
11.3 - Involuntary Cancellation
A Marketing Executive’s violation of any of the terms of the Agreement, including any
amendments that may be made by Harmony Green America in its sole discretion, may result in
any of the sanctions listed in Section 9.1, including the involuntary cancellation of his or her
Marketing Executive Agreement. Cancellation shall be effective on the date on which written
notice is mailed, emailed, faxed, or delivered to an express courier, to the Marketing Executive’s
last known address, email address, or fax number, or to his or her attorney, or when the
Marketing Executive receives actual notice of cancellation, whichever occurs first.
Harmony Green America reserves the right to terminate all Marketing Executive Agreements
upon thirty (30) days written notice in the event that it elects to: (1) cease business operations;
(2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.
11.4 - Voluntary Cancellation
A participant in this network marketing plan has a right to cancel at any time, regardless of
reason. Cancellation must be submitted to the Company through the Marketing Executive’s
replicated website. In addition, the Agreement will be canceled in the event a Marketing
Executive withdraws his or her consent to contract electronically.
If such a Marketing Executive is on the Company’s Marketing Executive Autoship program,
the Marketing Executive’s Autoship Agreement shall continue in force and the former Marketing
Executive shall be reclassified as a Preferred Customer, unless the Marketing Executive also
specifically requests that his or her Autoship Agreement also be canceled.
SECTION 12 - DEFINITIONS
Active Marketing Executive — A Marketing Executive who has generated the sale of at least 1
case of the Basic Product in sales in the most recent three (3) calendar month period.
Active Title — The term “active title” refers to the current title of a Marketing Executive, as
determined by the Harmony Green America Compensation Plan, for any pay period. To be
considered “active” relative to a particular title, a Marketing Executive must meet the criteria set
forth in the Harmony Green America Compensation Plan for his or her respective title. (See the
definition of “Title” below.)
Affiliated Party — A shareholder, member, partner, manager, trustee, or other parties with any
ownership interest in, or management responsibilities for, a Business Entity.
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Agreement — The contract between the Company and each Marketing Executive includes the
Marketing Executive Application and Agreement, the Harmony Green America Policies and
Procedures, the Harmony Green America Compensation Plan, and the Business Entity
Registration Form (where appropriate), all in their current form and as amended by Harmony
Green America in its sole discretion. These are collectively referred to as the “Agreement.”
AutoShip Program — An optional product order that is automatically generated from the start
date selected. Orders are processed automatically every month. AutoShip Program allows
Marketing Executives and Preferred Customers to receive an additional discount.
Basic Product: HG Organic Aloe Vera Juice
Business Entity — A corporation, partnership, trust, limited liability company, or other type of
entity.
Business Entity Registration Form — A supplemental form that all Business Entities must
submit with the Marketing Executive Agreement when enrolling as a Harmony Green America
Marketing Executive.
Cancel — The termination of a Marketing Executive’s business. Cancellation may be either
voluntary, involuntary, or through inactivity.
Customer (Retail Customer) — An individual or entity that purchases Harmony Green America
products from a Marketing Executive’s inventory, directly from the Harmony Green America
website, but who is not a Marketing Executive or a Preferred Customer.
Downline Leg — Each one of the individuals enrolled immediately underneath you and their
respective Marketing Organizations represents one “downline leg” or “leg” in your Marketing
Organization.
Front – A Marketing Executive or Preferred Customer who has been enrolled by another
Marketing Executive and is located on the first Level of the sponsoring Marketing Executive (the
“Sponsor”).
Household — All individuals who are living at or doing business at the same address, and who
are related by blood or marriage, or who are living together as a family unit or in a family-like
setting. A household includes, but is not limited to, spouses, heads-of-household, and dependent
family members residing in the same residence.
Immediate Household — Spouses, heads-of-household, and dependent family members residing
in the same residence.
Level — The layers of downline Marketing Executives in a particular Marketing Executive’s
Marketing Organization. This term refers to the relationship of a Marketing Executive relative to
a particular upline Marketing Executive, determined by the number of Marketing Executives
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between them who are related by sponsorship. For example, if A sponsors B, who sponsors C,
who sponsors D, who sponsors E, then E is on A’s fourth level.
Marketing Organization — The Marketing Executives sponsored up to 12 levels below a
particular Marketing Executive, depending on the Marketing Executive’s title qualification.
Marketing Executive — Any independent distributor who is eligible to participate in the
Compensation Plan and is governed by the Policies & Procedures, Compensation Plan, and
Marketing Executive Terms and Conditions as part of his or her agreement with Harmony Green
America. An “Active Marketing Executive” is a Marketing Executive who has generated the
sale of at least 1 case of the Basic Product in sales in the most recent three (3) calendar month
period.
My Page — A password protected back office area of each Marketing Executive’s Replicated
Website that allows the Marketing Executive to gain access to Company-provided tools and
literature and to view the Marketing Executive’s Marketing Organization information.
Official Harmony Green America Material — Literature, audio or video tapes, websites, and
other materials developed, printed, published and/or distributed by Harmony Green America to
Marketing Executives.
Paid-As Title — The term “Paid-As Title” refers to the current achievement level of a Marketing
Executive, as determined by the Harmony Green America Compensation Plan, for any pay
period. (See the definition of “Title” below.)
Personal Production — Moving Harmony Green America products to an end consumer for actual
use.
Personal Sales Volume (PSV) — The commissionable value of products purchased by: (1) a
Marketing Executive; and (2) the Marketing Executive’s Customers.
Preferred Customer — A customer who registers directly with the Company through a
Marketing Executive or Preferred Customer. Preferred Customer can enroll a new Preferred
Customer and receive a discount with his/her purchase. Preferred Customers may choose to
participate in the customer Autoship Program or may make occasional direct purchases through
the Marketing Executive’s or Preferred Customer’s replicated website. Also, a previous
Marketing Executive who has not generated a minimum Personal Sales Volume set forth in the
compensation plan for three (3) consecutive months is automatically reclassified as a Preferred
Customer.
Recruit — For purposes of Harmony Green America’s Conflict of Interest Policy (Section 4.11),
the term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment,
encouragement, or effort to influence in any other way, either directly, indirectly, or through a
third party, another Harmony Green America Marketing Executive or Preferred Customer to
enroll or participate in another multilevel marketing, network marketing or direct sales
opportunity.
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Replicated Website — A website provided by Harmony Green America to Marketing Executives
and Preferred Customers which utilizes website templates developed by Harmony Green
America.
Resalable — Products and Sales aids shall be deemed "Resalable" if each of the following
elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been
altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice
within the trade to sell the merchandise at full price; and 4) they are returned to Harmony Green
America within one year from the date of purchase. Any merchandise that is clearly identified at
the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.
Retail Sales — Sales to Customers.
Roll-Up — The method by which a vacancy in a Marketing Organization left by a Marketing
Executive whose Marketing Executive Agreement has been canceled is filled.
Social Media — Any type of online media that invites, expedites or permits conversation,
comment, rating, and/or user generated content, as opposed to traditional media, which delivers
content but does not allow readers/viewers/listeners to participate in the creation or development
of content, or the comment or response to content. Examples of Social Media include, but are
not limited to, blogs, chat rooms, Facebook, MySpace, Twitter, LinkedIn, Delicious, and
YouTube.
Sponsor — A Marketing Executive who enrolls another Marketing Executive into the Company,
and is listed as the Sponsor on the Marketing Executive Application and Agreement. The act of
enrolling others and training them to become Marketing Executives is called “sponsoring.”
Starter Kit — A selection of Harmony Green America training materials and business support
materials that each new Independent Marketing Executive is required to purchase.
Title — The achievement level that a Marketing Executive holds pursuant to the Harmony Green
America Compensation Plan. Title refers to the highest achievement level that a Marketing
Executive has achieved in the Harmony Green America compensation plan at any time. “Paid-
As Title” refers to the achievement level at which a Marketing Executive is qualified to earn
commissions and bonuses during the current pay period.
Upline — This term refers to the Marketing Executive or Marketing Executives above a
particular Marketing Executive in a sponsorship line up to the Company. Conversely stated, it is
the line of sponsors that links any particular Marketing Executive to the Company.