1. Becoming an Independent Affiliate:

(A)   To become an Affiliate, a person must first sign the application/agreement.  This agreement must be received and accepted by the Company.  Fax/electronic copies will suffice to place a new Independent Affiliate in the compensation plan of the sponsor, but no commissions will be paid until the original copy of the agreement is received in the office.  Once these steps are completed, the Affiliate is authorized to resell products and to enroll new Affiliates into the marketing plan. (B)   Affiliates pay the $29.00 (which includes shipping & handling) administrative fee for a sales kit and entry and maintenance of data processing, sales material, monthly communications, training material and sales equipment.  Every Affiliate should lead by example.  Affiliates are expected to maintain a strong retail base so their organization will understand that this is the heart of the business. The Company's main focus is for the leaders to teach their organization the retailing process.  (C) All Affiliates shall be of legal age in the state in which they reside.(D)  Affiliates shall not purchase products solely for the purpose of collecting commissions and bonuses.   Seventy per cent (70%) of products obtained from the Company must be retailed or consumed before reorders are made.

2.  Business Kit Refunds:

Within 60 days of an Independent Affiliate's initial purchase (or longer where required by law), he or she may return the training and sales material to the Company and receive a refund on the portions of the kit that are unused, or in a serviceable condition.

3.  Obligations of Independent Affiliate:

Independent Affiliates are Independent contractors of the Company; not employees or agents.  This is a precious form of independence that allows Distributors to select the hours of work, when they work, and where they work.  The Company has no direct control of Independent contractors in their day-to-day functions as Independent Affiliates.  However, there are certain obligations that each Independent Affiliate must fulfill to protect their opportunity, and those of others. 

The major obligations are:

(A) Abide by any and all federal, state, provincial, county and local laws, rules and regulations pertaining to the Independent contractor/Independent Affiliate agreement and/or the receipt, holding, acquisition, distributing, selling, or advertising of Company products. 

(B) The Independent Affiliate will bear the expense to execute and file all such reports, and obtain such licenses as are required by law or public authority, with respect to his or her business. This also includes the receipt, selling, holding, distributing or advertising of Company products.

(C) Independent Affiliates will not make any claims or representations regarding the Company compensation plan, or earnings that they or others may earn.  Some states have stringent policies of this matter and violation may cause the Company and other Independent Affiliates harm.

(D) Independent Affiliates are solely responsible for declaration and payment of all local, state, provincial, federal and general taxes, and fees as may be payable because of the Independent Affiliate's activities in connection with his or her Independent business. 

(E) As an Independent contractor, each Independent Affiliate is responsible to ensure that all applicable state, provincial, and general sales taxes are paid in accordance with all laws that pertain to such taxes.

4.  Advertising, Trademark and Trade Name Restrictions:

Independent Affiliates may not use the Company trade name, or any trademark registered to the Company, except in advertising approved by the Company.  Independent Affiliates will not create, publish or distribute any literature, materials and/or merchandise (including displays), that is not approved in advance by the Company.  This is done to protect the integrity of the marketing opportunity for all Independent Affiliates.

5.  Responsibility of Independent Affiliates:

The Affiliate position is one of trust and leadership.  Recruiting new Affiliates is only one minor part of the Company's leadership.  An Affiliate must perform supervisory, training and leadership functions to provide for the retail sale of products to end customers. Training and motivation are key elements to increasing retail sales. This is the intent of paying commissions to sponsors of other Affiliates.

6.  Inventory Loading is Prohibited:

The Company program is built upon sales to the end consumer.  Independent Affiliates will not purchase products solely for the purpose of qualifying for commissions, bonuses or advancement under the compensation plan.  Independent Affiliates will not inventory-load new Affiliates or encourage Independent Affiliates in their compensation plan commission structure to do so.

7.  Ownership Transfer:

Sale of an Independent Affiliate position requires the prior written approval of the Company before such action is taken. Transfer requires written approval of the first five upline sponsors in the Company.  A fee of $100 will be charged for administrative expenses incurred by the Company for the transfer.

8.  Cancellation of Agreements:

An Independent Affiliate may cancel his or her Independent Affiliate agreement at any time for any reason by submitting written notice to the Company.  The notice must bear the current name, address, telephone number, and identification numbers of the Independent Affiliate. Notices are to be mailed to the Company at the home office.

9.   Return of Product:

An Independent Affiliate who wishes to cancel his position may return all products and sales aids that are free of legal encumbrances and in a re-salable condition to the Company.  If applicable, the particular products must be in good condition, in original packaging, and unopened.  The repurchase of the product will be at a price not less than 90% of the net cost to the Affiliate, less commissions or bonuses paid by the Company. This return policy is good for one year from the date of purchase.  No repayment will be made on original handling and shipping charges. The return shipping costs of any material will be borne by the Affiliate. All exceptions will be handled in writing, by the Company. No products will be returned to the Company until a product return number is obtained.

10.  Guarantee of Customer Satisfaction:

If, for any reason any retail customer is not completely satisfied with any the Company product, the Affiliate who sold them the product will aid the customer to the best of his/her ability with the return or exchange of such item.  If this does not resolve the immediate problem, the Affiliate will assist the retail customer in contacting the Customer Assistance Department at the Company.  No products will be returned to the Company until a product return number is obtained. 

11.  Ordering of Products:

The cut-off for commission calculations will be 5:00pm Pacific Time on the last working day of the month. Orders may be placed via the company website, mail, or fax.  All Internet or fax orders may be paid by Visa or MasterCard. Orders by mail may be paid by check, money order, Visa or MasterCard.  When paying by credit card, be sure that you have the card in front of you when placing your order.  The exact name on the card, number, and expiration date must be complete.  Personal checks will be held for up to 10 working days until they clear the system.  Returned checks for insufficient funds may be charged $25 for handling and processing.  Repeated insufficient checks may be cause for termination of an Independent Affiliate agreement.  The Company is not responsible for any errors or delays caused by the mail, private carriers, fax transmission, Internet service or any other condition leading to non-receipt of orders.

12.  Proper Completion of All Documents:

All agreements, orders and forms must be completely and properly filled out and signed.  No copies or alterations are acceptable. The Company will not be responsible for loss of commissions or bonuses due to late submission of agreements or orders.  This also applies to Independent Affiliate agreements, and their registration into the computer system.  This also applies to errors by Independent Affiliates in preparing or transmitting agreements, orders or any other document.

The Company will not be responsible for transmittal errors as outlined in paragraph 11. The Company will not be responsible for the inability of Independent Affiliates to place orders during peak telephone and fax hours, which will normally be at the end of the month. 

13.  Calendar Month Credit:

All documentation and orders will be credited to the week they are received.  All mail documents will be date/time stamped to verify when received.  All Internet, fax and phone orders will be electronically documented.   Commission qualifications must be received by 5:00pm Pacific Time on the last working day of the month for which commissions are to be paid.

14.  Delivery of Goods:

Orders for products will normally be processed within 24 hours of receipt during normal work days.  Orders by personal check will be processed but held until the check has cleared the banking system, (see paragraph 12).  Shipment will be by common carrier with a normal shipping time of 7-10 days to be expected.  Overnight and second day shipping are also available.

15.   The Company Independent Contractor Identification Number:

Independent Affiliate identification numbers will be numbers that are linked to the Affiliate's Social Security Number (SSN).  If the Independent Affiliate is a small business, partnership, or corporation a federal tax identification number may be used, which will be linked to an Affiliate identification number.  With the expansion into foreign countries, proper preparation of applicable tax numbers for those countries will be the responsibility of the local Affiliate unless the Company makes other provisions.  False or misleading information submitted to the Company in the application process of becoming an Independent Affiliate is grounds for termination.

16.  Record Keeping For Federal, State and Local Purposes:

If you earn over $600 or more from the Company in a given year, you will receive a Form 1099 showing your earnings.  You are responsible for all actions concerning payment of income and social security taxes.  Independent Affiliates should keep records of all business expenses.  These expenses would include such things as: postage, car mileage, advertising, business related telephone costs, home office supplies, sales meeting expenses, bookkeeping expenses, and many of the additional deductions an Independent contractor can take.  A recommended publication is IRS Publication 911 For Direct Sellers, available from any IRS Office, or the IRS web site.

17.  Checks and Monthly Business Reports:

Checks will be mailed on or about the 15^th working day of each month for the preceding month's commissions and bonuses.  When the 15^th day falls on a holiday, the checks will be mailed the following Monday or applicable working day. 

18.  Questions or Errors:

The Company will not be responsible for omissions, errors, or problems with commissions, bonuses, business reports, orders or charges after a 45 day time period.  Notify the Company in writing immediately of any suspected discrepancy.

19.  Training of Independent Distributors:

Initial training involves reading the material for Independent Affiliates, who will receive a wealth of information in their starter kits.  Affiliates are encouraged to get initial retail sales training and assistance from their Independent Affiliate sponsor.  The Company's printed material, audio tapes, and video material will also contain a wealth of information.  Training will also be done by other Independent Affiliates.  From time to time, the Company will provide training sessions in areas of concentration.  Training is an essential part of establishing a strong sales organization. 

20.  Roll up and Compression:

If an Independent Affiliate drops out of the Company, the volume of the next person ordering moves up through the inactive position.


21.  Retail Selling in Stores or consignment:

This may be allowed if an Independent Affiliate operates a retail establishment. This activity is approved on a case-by-case basis by the Company.  Write a short note to the customer service department giving the details and requesting permission.


22.  Inactive Distributor reactivation:

After a period of six months inactivity, (no orders placed) the Independent Affiliate (without group) can rejoin the Company in any organization they desire.  The same applies if the individual has voluntarily terminated their agreement with the Company.  Use of false names and business entities with different social security numbers or federal I.D. numbers to circumvent this policy is prohibited.

23.  Transfer of Organizations:

An active Affiliate may change organizations by getting written permission from the next five levels above them. This is not encouraged by the Company.  Any manipulation to increase volumes for the purpose of collecting bonuses will be discouraged by the Company.  The person requesting to change organizations must get a change form from the Company.  Each person in each of the five levels must sign an original copy, with a legible signature that matches the one the Company has on file for that individual.  No photocopies or faxes will be accepted.  There will be a $100 fee for processing each action.  All requests will be carefully reviewed to make sure the change will not violate legal or ethical consideration.  All such changes are subject to final approval by the Company.  The expected processing time is 30 days.  The use of false names and business entities with different social security numbers or federal I.D. numbers to circumvent this policy are prohibited.

24. One Position . Spouses:

An individual may have a financial interest in only one Affiliate position. The use of corporate form, trust, or partnership in an attempt to circumvent this rule will not be tolerated. Spouses are encouraged, but not required, to operate one Affiliate position jointly. Spouses desiring their individual Affiliate position must have the same sponsor, to avoid even the appearance of stacking, and to protect the integrity of the lines of sponsorship.

25.  Voluntary/Involuntary Cancellation of Independent Affiliate Agreements:

Voluntary or involuntary cancellation of an Independent Affiliate agreement will result in the person or business entity losing all rights to their marketing organization.  An Independent Affiliate whose agreement is canceled will not receive commissions and bonuses during the month of cancellation, and thereafter.  In the case of returns and cancellations, the amount returned will be deducted from upline volumes.  The individual or entity will not represent themselves as Independent Affiliates for the Company thereafter.

26. Vendor relationships

No Affiliate, or their authorized representatives, shall contact, directly or indirectly, or speak to or communicate with any representative of any supplier or manufacturer of HDI, except as arranged in advance, in writing, by HDI. Violation of this rule may result in termination of Affiliate status and associated benefits. In addition, their may be possible claims for damages if the vendor relationship is compromised by the unauthorized Affiliate contact.

27. Confidentiality Agreement

Information contained in any genealogy or downline report provided to an Affiliate by HDI is proprietary and confidential to HDI, and is transmitted to the Affiliate in strictest confidence. The Affiliate agrees that he or she will not disclose any such information to any third party directly or indirectly, nor use the information to compete with HDI or for any purpose other than promoting the HDI business. The Affiliate and HDI agree that, but for this agreement of confidentiality and non-disclosure, HDI would not provide the information to the Affiliate. Any Affiliate who is found to be in violation of this rule risks suspension or termination. HDI reserves the right to seek damages to the fullest extent of the law.

28.  Involuntary Termination:

An Independent Affiliate, (or any business entity acting as such) that violates any of the terms and conditions of the Independent Affiliate agreement, or any part of these policies and procedures, or engages in illegal or unethical conduct in business, may be terminated at the Company's discretion.  This action will result in cancellation of the Independent contractor/Independent Affiliate agreement.  This will result in the Independent Affiliate, or business entity losing their marketing organization, bonuses and commissions.  The notification of termination is effective the date that written notice is mailed by certified mail, return receipt requested, to the last known address of the Independent Affiliate or business entity.

29.  Cross Recruiting Prohibited and terms of Company Promotion:

Independent Affiliates may be active in other network marketing ventures, but are prohibited from soliciting Independent agents from the Company to other network marketing ventures that compete directly with the Company.  This act of recruiting is reason for termination, or suspension of commission payments.  The use of name lists to include addresses, phone numbers or email addresses is also considered a violation of this policy.  It is also a violation of federal privacy act laws.

Independent Affiliates will not offer any other products or services for sale at any Company training seminar, rally, launch, or convention.  Any such products will be handled through "the Company store." Any negative or disparaging statements against the Company are grounds for termination. Any violations of these procedures will subject the Independent Affiliate to termination in accordance with paragraph 26.

30.  Maintenance of Titles:

An Independent Affiliate may lose their right to commissions and bonuses as dictated by their sales volume requirements.  The amount of the commissions and bonuses may go down as a result of multiple factors.  However, the Independent Affiliate will maintain his or her title for six months.

31.  Media Relations:

All inquiries from radio stations, television stations, magazines or newspapers will be referred to the Company.  An Independent Affiliate may not discuss their Independent business with the Company with the media, or act as a spokesperson for the Company.  All questions must be referred to the Company's corporate office.  Media activity planned by Affiliate will need pre-approval from the corporate offices.  Inaccuracy in the media can be dangerous to Independent agents and their business, thus affecting the Company.  Violation of this policy is cause for involuntary termination.

32.  Independent Affiliate Management:

Sponsoring Independent Affiliates are expected to stress the need of building an organization deep, and assist in building wide at depth to provide for long-term income and stability.  Sponsors are expected to stay active with their organization to help them to build new depth and width, by training and motivating them.

33.   Independent Distributor- Positions can be willed:

An Independent Affiliate position can be willed to heirs.  Documentation will be in accordance with the county, state, or province in which the Independent Affiliate lived at time of death.  The "title" to the business shall be free of all claims and disputes before transfer to the inheritor.  The inheritor will initiate an Independent marketing agreement and abide by these policies and procedures.  The inheritor shall sign the marketing agreement in a timely manner, or risk involuntary termination of the Affiliate.

34.  Restrictions on International Marketing:

The income opportunity will not be promoted in foreign countries, or any other actions detrimental to the Company, until the Company is in full compliance and ready to operate in those countries.  Company products can be retailed/wholesaled in foreign countries provided all customs and duties requirements are met by both sender and receiver.


35.  Binding Arbitration:

In accordance with the signed marketing agreement, and these policies and procedures, the Independent contractor as an Independent Affiliate agrees that in a case of dispute, they are subject to binding arbitration in Portland, Oregon by the rules of the American Arbitration Association. Louisiana residents shall be entitled to file for arbitration in the jurisdiction of Louisiana and the governing law shall be Louisiana law.

36. Changes, Amendments or Adjustments to this Statement of Policies, the Independent Marketing Agreement and Compensation Plan:

With notification to Independent Affiliates, the Company may, at its discretion, change, amend or adjust the Statement of Policies, The Independent Marketing Agreement and the Compensation Plan. By signing the Independent Affiliate Agreement, Independent Affiliates agree to be bound by any such alterations.  The continuation of an Independent Affiliate's business and/or the Independent Affiliate's acceptance of commission checks constitute their acceptance of any alterations.