Policies and procedures

THN Policies and Procedures governing U.S. Affiliates are outlined below. Take time to read the entire document to fully understand the Policies and Procedures. These Policies and Procedures are incorporated by reference in THN Affiliate Agreement. In the case of any conflict between these Policies and Procedures and the Affiliate Agreement, the Affiliate Agreement shall prevail. THN reserves the right to change these Policies and Procedures at any time. 

THN Statement of Operating Philosophy

The Founders of THN believe in leadership by example rather than management by directive. THN’s leadership has demonstrated a high degree of integrity and success at both sales and corporate levels. As such, they are committed to the following principles and standards as an expansion of their creed. For purposes of these Policies and Procedures, The Hail Network shall be referred to as "THN." 

Commitment to Excellence

THN corporate management team is committed to supporting its customers and Affiliates, to giving them quality service and to calculating and posting reports and commission payments in a timely manner. THN has set these goals to give each Affiliate the best opportunity to develop a successful referral business. THN will not exclude anyone from this great opportunity based on race, age, sex, national origin, religion, disability or any other similar grounds prescribed or otherwise prohibited by law.

THN Policies and Procedures governing U.S. Affiliates are outlined below. Take time to read the entire document to fully understand the Policies and Procedures. These Policies and Procedures are incorporated by reference in THN Affiliate Agreement. In the case of any conflict between these Policies and Procedures and the Affiliate Agreement, the Affiliate Agreement shall prevail. THN reserves the right to change these Policies and Procedures at any time.

THN Statement of Operating Philosophy

The Founders of THN believe in leadership by example rather than management by directive. THN’s leadership has demonstrated a high degree of integrity and success at both sales and corporate levels. As such, they are committed to the following principles and standards as an expansion of their creed. For purposes of these Policies and Procedures, The Hail Network shall be referred to as "THN."

Commitment to Excellence

THN corporate management team is committed to supporting its customers and Affiliates, to giving them quality service and to calculating and posting reports and commission payments in a timely manner. THN has set these goals to give each Affiliate the best opportunity to develop a successful referral business. THN will not exclude anyone from this great opportunity based on race, age, sex, national origin, religion, disability or any other similar grounds prescribed or otherwise prohibited by law.

1. Affiliate Rights and Obligations

A. Ethics

THN conducts business in an ethical and credible manner and requires its Affiliates to deal ethically with their referrals, with each other and with the company. THN permits no unethical or illegal activity and will intercede when such behavior may exist, and THN reserves the right to use its best judgment in deciding whether certain Affiliate activities are unethical. Furthermore, THN may use its own discretion in determining the appropriate course of action. If THN determines that unethical activities may exist, then it reserves the right to suspend or terminate Affiliate status, including but not limited to all commissions and payments of any kind. Under no circumstances would an Affiliate who is terminated for unethical or illegal activity be entitled to a refund of their affiliate membership fee, nor are they entitled to sell or transfer their position.

EXAMPLES OF UNETHICAL OR ILLEGAL ACTIVITY INCLUDE, BUT ARE NOT LIMITED TO:

1. Forging a signature on any document. This includes electronic signatures on any THN customer portal, as well as online Affiliate Agreements.
2. Making false or misleading representations of any kind including, but not limited to, misrepresentations about THN products or services or the THN Compensation Plan.
3. Crossline recruiting: A THN Affiliate may not solicit an individual or entity that has been previously sponsored by another Affiliate or that is considering joining THN and being sponsored by another Affiliate. For example, potential Affiliates sent to an Affiliate’s website by another active Affiliate cannot be recruited. During the term of their agreement and for a period of one (1) year after their Agreement has expired or terminated, THN Affiliates are further prohibited from directly or indirectly soliciting an existing or pending Affiliate into a sales organization in which he/she is not currently a member. THN Affiliates may not solicit a THN Affiliate, whether active, inactive, individual or an entity, to participate in a network marketing program offered by any other company, which offers home restoration and improvement services or other services competitive to those offered by THN.
5. Spreading false or misleading remarks or rumors with malicious intent that may disparage THN, THN employees, THN Service Providers and Certified Contractors, or another THN Affiliate.
6. Any unauthorized use of THN’s name, trademarks or copyrighted material (i.e. reproducing THN’s forms, business cards, etc.).
7. Violation of any federal, state or local laws or regulations.

THN Affiliates are prohibited from third party solicitation by telemarketing, direct mail, sweepstakes, contests and drawings. THN only authorizes sales by means of direct personal solicitation of customers.

B. Offerings/Terms of Service

THN and its Certified Contractors have the sole right to accept or reject orders for products and services, to establish and change without notice, the prices of such products and services as well as to establish the terms and conditions of their offering. THN and its Certified Contractors may also discontinue offering or selling any product or service, without liability or obligation to THN, its Affiliates or its customers.

C. Affiliate Sign-Up

Affiliates must sign-up for membership on the THN website only. No Affiliate shall accept funds for new Affiliate memberships. THN may terminate any Affiliate discovered accepting funds or operating a bank account in the name of THN or any other similar name.

D. Personal Usage/Purchases

An Affiliate is not required to subscribe to or purchase any product or service marketed by THN. Earning referral commission in the THN Compensation Plan is based upon the acquisition of customers. However, if an Affiliate chooses to purchase any products or services offered by THN or one of its Certified Contractors, he/she will be responsible for all billing when due. If an Affiliate becomes past due on any bill, for services or products provided by THN or a Certified Contractor, THN may deduct amounts owed from future commission payments. THN reserves the right to terminate an Affiliate that is repeatedly past due in the payment of any service or product.

E. Unauthorized Contact

Under no circumstances, is an Affiliate permitted to directly contact any Certified Contractor with whom THN contracts, unless it is in specific relation to a personal account they may currently have with said provider. In the event that your customer is experiencing difficulties with a specific provider, please inform your customer to contact THN directly to resolve the matter.

F. Territorial Rights/Conducting Business Across Borders

Affiliates can market products and services and sponsor new Affiliates in any country where THN conducts business, without exclusivity. Affiliates may only promote THN in countries where THN currently operates. Affiliates conducting business in foreign countries must adhere to the THN Policies and Procedures governing activities in that country. Furthermore, compensation will be based on the Compensation Plan of that specific country and be subject to conversion to U.S. funds. Affiliates are responsible for knowing and adhering to all laws and accepted business practices in the countries they choose to market. This includes but is not limited to Customs and Immigration Laws and accepted marketing practices.

G. Further Limitations

THN reserves the right to limit or disallow any activities that cast negative aspersions on the integrity, truthfulness, and/or reputation of THN.

1. Status as an Independent Contractor

Claims of Employment

Affiliates are independent contractors and not employees of THN. The position of Affiliate shall not be construed as creating a relationship of employee-employer, agency, partnership or joint venture between any participant, sponsor and THN. It is impermissible to assert or imply that an Affiliate or prospective Affiliate is or will be employed by THN.

Binding Arbitration

In the event of a dispute between me and THN as to our respective rights, duties and obligations arising out of or relating to this Agreement and the dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association (AAA) under its Commercial Mediation Procedures before resorting to arbitration. If mediation is unsuccessful, then the parties agree to binding arbitration before the American Arbitration Association pursuant to the Commercial Rules of Arbitration. The arbitration shall be held in Santa Fe, NM before a panel of three arbitrators, each side choosing one and then the two choosing the third. All claims hereunder must be brought within ninety (90) days of the date on which the facts or circumstances giving rise to the claim are alleged to have happened. The laws of the state of New Mexico will apply to the resolution of the dispute unless otherwise agreed to in writing. The award of the arbitrator shall be final and may be entered in any court of competent jurisdiction. This provision shall not restrict THN from seeking preliminary or permanent injunctive relief in any court of competent jurisdiction. Any fees associated with mediation or arbitration shall be paid, in advance, directly to the AAA, by the Affiliate bringing the action.

Contractual Obligations

All Affiliates are responsible for any expenses which result from their business operation. Miscellaneous expenses include, but are not limited to, license or permits required to operate a business, legal fees connected with the use of a business name, telephone expenses, product advertising, etc. Affiliates shall not involve THN in any contractual relationships relative to their businesses. Affiliates cannot and shall not sign contracts, rent or lease office space or equipment, open bank accounts, secure credit, cash negotiable instruments, make purchases or enter into agreements of any kind in the name of THN. Such action is prohibited and cause for termination of Affiliate status. Each Affiliate shall hold THN, its shareholders, partners, members, directors, officers and employees harmless from any claims, damages or liabilities arising out of such action.

Reporting Taxes

Affiliates are not considered employees for purposes of the Social Security Act, the Federal Unemployment Tax Act, Federal Income Tax laws or any other laws governing employees. It is the Affiliate’s responsibility to make self-employment and income tax payments as required by law. As such, THN does not deduct any taxes from any commission payments. THN will send a Form 1099 to all applicable Affiliates who earn $600 or more in a tax year. It is the Affiliate’s responsibility to provide THN with the proper Social Security Number or Taxpayer Identification Number. If the information that is provided is incorrect or if the Internal Revenue Service notifies THN that the information does not match their records, then THN will hold all future payments until the matter is resolved.

2. Business and Legal Entities as an Affiliate

A. Companies

A sole proprietorship, partnership, Limited Liability Company (LLC) or corporation may become an Affiliate subject to review and approval by THN. However, no individual may participate in more than one Affiliate position without the prior written approval of THN. For the company to become a new Affiliate, or to change current Affiliate status to a company, THN must be notified in writing.

The following items are needed to apply for an THN Affiliate status as a company:

1. The name of the company.
2. The company's Taxpayer Identification Number.
3. A list of all partners/shareholders/members with more than 5% ownership – the document MUST include the Social Security Number for each person listed.
4. A completed Affiliate Agreement, agreed to by an individual authorized to enter into binding agreements on behalf of the business entity. Individuals who submit the Affiliate agreement must be authorized to enter into binding contracts on behalf of the company.

B. Trusts

An Affiliate can operate their Affiliate status in the name of a trust. The person(s) that is (are) responsible for operating the business of the trust must be of legal age and cannot be another Affiliate or have an ownership interest in another Affiliate status. To become a new Affiliate as a trust or to change an existing Affiliate status to a trust, THN requires written notification and a new Affiliate agreement.

The following items are needed to apply for an THN Affiliate status as a trust:

1. A legal document displaying the name of the trust and a legal opinion from an attorney stating that the trust is in compliance with all state and federal laws.
2. A document that provides proof of the trust’s Taxpayer Identification Number.
3. A document that lists all trustees including the Social Security Number for each person listed. For a Grantor Trust, a document that provides the Social Security Number of the Grantor.
4. A completed Affiliate Agreement, signed by an individual authorized to enter into binding agreements on behalf of the trust. The person who submits the written notification must be authorized to enter into binding contracts on behalf of the trust.

It is the Affiliate’s responsibility to insure that THN has received all the required documentation to list the Affiliate status as a company or trust. If THN has not received the appropriate documentation within 30 days, then THN will suspend the Affiliate position until all the documentation is received and processed by THN. In addition, any commissions earned during the suspension period will be held until the matter is resolved.

C. Marriage

A husband and wife may operate under the same Affiliate position or independently. If the husband and wife choose to operate independently, then one spouse must be sponsored by the other. THN reserves the right to ensure that husband and wife Affiliates independently operated are correctly sponsored and make any necessary corrections. Spouses that choose to operate the same position will be treated as partners.

D. Specifications for Affiliate Names

THN reserves the right to approve or disapprove any Affiliate’s choice of business names, formation of partnerships, corporations and trusts, for tax, estate planning and liability purposes. If THN approves such a change by the Affiliate, the organization’s name
and the names of the principals of the organization must appear on the Affiliate Agreement along with a Social Security Number or Federal Tax Identification Number. Any request for a change in the name or a change in the Social Security Number or Tax Identification Number of the Affiliate status is subject to a written agreement, signed by all parties involved, submitted to and approved by THN. THN reserves the right to verify all authorizations prior to making changes. In the absence of any agreement or notification, THN will only recognize the individual whose Social Security Number was originally listed on the Affiliate Application. Please note that THN will only continue to service the Affiliate who remains listed in our computer system. THN reserves the right to intercede in disputes, and if it is determined that unethical activity exists, affiliate status may be suspended and/or terminated.

3. Identification Numbers

All Affiliates will be assigned a unique number that identifies them as an Affiliate of THN. This number is referred to as their Affiliate ID Number. Currently, THN uses the Affiliate’s cell phone number as the Affiliate ID.

4. Sponsoring New Affiliates

A. Affiliate Application and Agreement

New Affiliates must complete the Affiliate sign up process on the THN website at www.thehailnetwork.com. Only the new Affiliate can complete the online Affiliate Application. It cannot be completed by the sponsor or upline on behalf of the new Affiliate.

B. Representation

Affiliates shall make no claim or inference to prospective Affiliates as to the anticipated or actual income an Affiliate might earn. THN makes no guarantees of income, nor assurances of any profits or success. Furthermore, any profits or success resulting from activities as an Affiliate will be based upon customer acquisition and the amount of services or products purchased by those customers. Any success achieved will be based solely upon the Affiliate’s effort, commitment and skills. Each Affiliate understands that no Attorney General of any state, territory or other regulatory authorities ever reviews, endorses or otherwise approves any product membership or compensation program of any marketing company. As such, each Affiliate shall make no such claim to a prospective THN Affiliate. In the event that a question arises concerning THN’s compliance with the law, such question shall be submitted to THN in writing, via email to: legal@thehailnetwork.com. THN Affiliates shall make no false claims or misleading statements concerning these relationships and understand that if they do, their relationship with THN may be terminated and all commissions and bonuses forfeited. Affiliates agree to indemnify and hold THN and its shareholders, partners, members, directors, officers and employees harmless from all claims, damages and expenses, including attorneys’ fees arising out of actions or conduct in violation of the Agreement.

C. Affiliate Disputes

THN may or may not mediate any disputes between two or more Affiliates if requested to do so by all of the parties involved in the dispute. THN, however, reserves the right to review sponsoring practices. If THN agrees to mediate any dispute, its findings shall be binding on all parties involved in the dispute.

D. Changing Sponsorship

THN believes in and maintains the maximum protection of the Affiliate’s relationship with his or her sponsor. Therefore, changing sponsors is strictly prohibited. It is the responsibility of the Affiliate to ensure the referring affiliate’s ID number submitted on the Affiliate Application is accurate and complete. An Affiliate may join THN under a new sponsor only after a period of no less than one full calendar year from the date of resignation or no less than one full calendar year after an Affiliate fails to renew or cancels their membership. All resignations must be in writing and delivered, via email, to THN. THN reserves the right to change sponsorship if it is found that unethical or misleading practices were used.

5. Maintaining/Changing the Status of Your Business

A. Selling Your Affiliate Position

To protect the integrity of the Affiliate Network, THN restricts the sale of Affiliate positions. All requests for the sale of an Affiliate position must be reviewed and approved by THN. For permission to sell your Affiliate position, forward a letter of intention, via email, to legal@thehailnetwork.com, indicating your wish to sell. THN will send all needed documentation to the seller for completion, before the process can begin. For more information, please contact AffiliateServices@thehailnetwork.com. THN reserves the right to withhold or condition its consent to the sale of an Affiliate position in its reasonable discretion. The Affiliate position WILL NOT be considered SOLD until the sale is approved by THN. Therefore, DO NOT accept any funds from the potential buyer until the sale has been approved and finalized. THN charges a $1,000 fee to process any approved sale. Do not send the $1,000 fee until THN has approved the sale. Companies or partnerships that have a change of ownership greater than twenty percent (20%) must notify THN of such change in ownership. The new owners/stockholders must comply with the terms of the Affiliate Agreement and these Policies and Procedures. If there is a change in ownership of 50% or greater then the rules regarding the sale of an Affiliate position apply, including the $1,000 transfer fee.

B. Transfer/Disposition of Affiliate Business

Upon the death or incapacity of an Affiliate, or of its principals, the rights to the commission and marketing position shall pass to the designated successor, provided said successor complies with all the terms of the THN Affiliate Agreement, THN’s Policies and Procedures and fulfills the duties and obligations required of an Affiliate. In the case of a transfer to an existing Affiliate, or to an individual listed as a partner/shareholder/trustee in an existing Affiliate status, the individual will need to contact THN to discuss his/her options in either maintaining the status or transferring it. If the transfer is of a temporary nature (i.e. the Affiliate is temporarily incapacitated), the subsequent activation and deactivation will likewise be temporary.

C. Change of Affiliate Information

Affiliates must report any change of address, telephone number or email address online in the Affiliate’s Back Office or by sending an email to AffiliateServices@thehailnetwork.com, no other methods of notification is acceptable.

H. Commissions

A. Reports

Genealogy, commission and other reports are available for a nominal fee from THN, unless the Affiliate has purchased the Affiliate Marketing Kit, which includes a back-office, in which case, all reports are available at no charge. The Affiliate acknowledges and agrees such information is proprietary and confidential to THN and is transmitted to the Affiliate in strict confidence. The information provided may not be distributed to any other individual or company. But for this agreement of confidentiality, THN would not provide the above information.

B. Eligibility for Compensation

All Affiliates are eligible for compensation who are current with their membership fee. The rate of compensation is outlined in the THN Compensation Plan.

C. When Commissions are Earned and the Affiliate Payment Date

Commissions are paid on the last day of each month for revenue collected by THN during the previous month (Affiliate Payment Date). Referral Commissions are based on the receipt by THN of referral commissions paid by Certified Contractors on the sale of products and services purchased and paid for by customers referred by you and those referred by your PAN, according to the Compensation Plan for the country in which the services are provided.

A Payment Processing Fee of $5.00 will be deducted from each commission payment to cover processing costs relating to the transfer of funds via ACH. A statement of commission earned is available free in the back-office for all Affiliates who have subscribed to the Affiliate Marketing Kit. Payment will not be issued until the total amount (less the Payment Processing Fee) is greater than $100.

D. Affiliate Sponsor Bonus

For each of the first five new affiliates sponsored by an Affiliate, the Affiliate commission is increased per the THN Compensation Plan and is effective for any commission earned beginning with the first month after the month in which the additional affiliate(s) are enrolled. The increased commission will remain in effect as long as the Affiliate is active and maintains the same level of active, personally enrolled affiliates.

I. Compliance

These Policies and Procedures were created as a guideline for THN and all Affiliates and serve to protect the rights of both parties. These Policies and Procedures are intended to ensure proper functioning of daily business operations. THN reserves the right to amend the Policies and Procedures from time to time as THN deems necessary. Any Affiliate who violates any provision of the Affiliate Agreement, which includes all Policies and Procedures itemized herein, may be terminated by THN. Termination cancels any and all rights and will be effective upon verification of said violation(s) and notification of the offending Affiliate by THN. In the event a dispute arises between THN and an Affiliate as to their respective rights, duties and obligations under this agreement, or in the event of a claim of breach of this agreement by either party, such dispute shall be exclusively resolved according to the dispute resolution procedure outlined herein. Under no circumstance would an Affiliate who is terminated for unethical activity be entitled to the refund of their membership fee or be allowed to transfer their customers or their Affiliate position to another party.

J. Confidentiality and Noninterference, Nondisclosure of Proprietary Information

During the term of the relationship with THN, the Affiliate may receive information or data constituting a trade secret or confidential information of THN and/or its Certified Contractors, in which event, the Affiliate shall treat such trade secret or confidential information as strictly confidential and wholly owned by THN, as applicable. No Affiliate may, for any reason, nor in any manner, directly or indirectly use, sell, lend, lease, distribute, license, give, transfer, disclose, disseminate, reproduce or otherwise communicate any such item of information or data to any person or entity for any purpose other than as authorized by THN in writing. The definition of "confidential information" shall mean proprietary and confidential data or information of THN or its Certified Contractors, which is not publicly known or available to the competitors of THN or its Certified Contractors. "Confidential information" also includes without limitation, information regarding THN or its Certified Contractors, Affiliates, customers or prospective customers, marketing methods, business and technical plans, product information and pricing. The definition of "confidential information" includes "trade secrets" which shall mean that portion of confidential information which constitutes trade secrets as defined by applicable law and including, without limitation, confidential computer programs, software, designs, processes, procedures, formulas and improvements, whether copyrightable or not.

Affiliates must use their best efforts to preserve all confidential Information until it becomes generally available to the public or THN agrees in writing that such information may be disclosed or is otherwise no longer deemed to be confidential. During the term of the Affiliate Agreement, Affiliates may not, directly or indirectly, sell or solicit home restoration and improvement services offered by THN through any person or entity other than that specifically designated or approved in writing by THN. Affiliates shall not, during their relationship with THN and for a period of one year thereafter, directly or indirectly, divert, entice, knowingly call upon, sell or solicit, take away or move any customer of THN or its Certified Contractors, whether or not the Affiliate originally procured or brought such customer to THN’s Certified Contractors (such activities are collectively referred to herein as "solicitation"). All customers solicited by Affiliates on behalf of THN or its partners/suppliers/service providers or Certified Contractors are deemed to be customers of THN or its Certified Contractors and not of its Affiliates. Affiliates understand that such prohibition of non-solicitation shall be strictly enforced and that THN or its partners/suppliers/service providers or Certified Contractors shall be a third party beneficiary of this prohibition as well as any proprietary and confidential information provided to THN, which in turn is received by the Affiliate. Further, during the term of the Affiliate Agreement and for a period of one year thereafter, Affiliate may not enter into a direct marketing relationship with any Certified Contractors of THN. Violation of this covenant and condition will result in forfeiture of all Affiliate rights, including all current and future commissions, bonuses and payments of any kind. On a periodic basis, THN will supply data processing information and reports to the Affiliate, which will provide information to the Affiliate concerning the Affiliate’s organization, customer sales, etc. Affiliates agree that such information is proprietary and confidential to THN and is transmitted to the Affiliate in confidence. The Affiliate agrees that he or she will not disclose such information, directly or indirectly, to any third party nor use the information to compete with THN in any manner. The Affiliate and THN agree that, but for this agreement of confidentiality and nondisclosure, THN would not provide the above confidential information to the Affiliate.

K. Privacy Policy

A. Personal Information

  • THN is committed to protecting the privacy of our Affiliates’ and customers’ personal information. “Personal Information” means any information about an identifiable individual, other than business contact information. We protect personal information by maintaining strict physical, electronic, and procedural safeguards that meet or exceed applicable Federal laws and regulations. Unauthorized access to or disclosure of personal information, including account information, or personal identification number, is a violation of THN’s Privacy Policy, and is strictly prohibited. (a) The Affiliate acknowledges that, in the course of the performance of this Agreement, THN will be provided with and have access to Personal Information and that such Personal Information is confidential. THN agrees that such Personal Information will be collected, used and disclosed only for the purposes for which it was collected and only in relation to the provision of THN’s services or products or this Agreement, that THN will safeguard such Personal Information by appropriate organizational, physical and technological means ("Safeguard Obligations") and not, other than as required in relation to the provision of THN’s services or products, disclose, transfer, sell, assign, publish or otherwise make available any Personal Information for the use of any other person or entity except where disclosure may be required to comply with a subpoena, warrant, or court order, or if requested by a government institution which has the lawful authority to obtain the Personal Information, or if otherwise required by law; (b) the Affiliate authorizes THN to access and/or inspect, any or all Personal Information disclosed by the Affiliate during the course of the Agreement; (c) THN shall, at the written request of a terminating Affiliate, promptly destroy or remove from its database, any Personal Information and all copies thereof under the power or control of THN; (d) The Affiliate agrees to co-operate with THN in any regulatory investigation or in any internal investigation regarding any alleged privacy breach or complaint. (e) In order to ensure the special integrity of Affiliates’ personal information, and to protect Affiliates positions from unauthorized access, THN asks that all Affiliates adhere to the following procedures:
    • Only new Affiliates shall complete the Affiliate sign-up process on The Hail Network website at www.thehailnetwork.com.
    • Only new Affiliates shall accept the online Affiliate Agreement.
    • An Affiliate’s upline or sponsor should not complete any agreement on behalf of the Affiliate, or obtain account information, including position numbers and passwords.
    • Affiliate account information and passwords should not be accessed by, or provided to anyone but the Affiliate whose name appears on the Affiliate Agreement.

B. Indemnification

The Affiliate agrees to defend, indemnify and hold THN harmless from any claims and actions against THN relating to the Affiliate’s violation of any state or federal privacy acts relating to the collection, use or disclosure of Personal Information. The Affiliate also agrees to defend, indemnify and hold THN harmless from any claims and actions against THN relating to any marketing or promotions developed for THN by the Affiliate, when the Affiliate was indemnified by a third party which did not also indemnify THN.

C. Termination

In the event of a material breach by either party of any applicable privacy laws or provisions in these Policies and Procedures relating to such laws, the non-breaching party may terminate the Affiliate Agreement, by written notice to the breaching party, 30 days after first delivering notice of such breach and the failure to cure such breach within the 30 days.

L. Amendments

In order to sustain a viable marketing company, THN specifically reserves the right to make any amendments or adjustments it deems necessary with respect to products and services offered, its Policies and Procedures, the marketing and Compensation Plan and/or pricing. Upon notification through THN’s website, any such changes are incorporated as part of the Affiliate Agreement between THN and its Affiliates.

M. Summary

We are offering a program that will prove to be financially beneficial for those with the motivation to achieve. It offers the freedom to design personal goals, an opportunity to develop long-term stability, and a relationship of respect with our company. The relationship between THN and its Affiliates is that of a team, based on mutual trust, respect and integrity. By assisting our Affiliates in achieving their goals and dreams, THN strives to demonstrate the true meaning of a team. This is our commitment to you.

N. General Marketing and Advertising Policy

THN has developed a success system based on solid experience and knowledge. As such, we have created marketing materials, business tools and activities to fully support this model. No other marketing materials or activities are necessary to become successful as an THN Affiliate. Therefore, THN strongly discourages our Affiliates from creating and/or distributing any marketing materials. Marketing materials for the purpose of this policy is not limited to printed material, but also includes website and online content, appearances and media representation. Affiliates must obtain prior written approval from THN for any materials created for their THN business. Affiliates must complete the Request Form available in the Back Office for Affiliates. Any written approval given by THN will only be for the material submitted and reviewed. Any additional material will need to be re-submitted for approval. All changes to personal marketing material requested by THN must be made. If not, the Affiliate will be found to be non-compliant with THN’s Policies and Procedures, and further action will be taken up to and including deactivation. All approval for Affiliate marketing and advertising remains at the sole discretion of THN.

1. Use of THN’s Identity

In addition to our Affiliates and employees, THN’s identity is one of its most valuable assets and, therefore, must be protected at all times in order to maintain its integrity for all. As such, THN Affiliates are strictly prohibited from representing themselves as having any other affiliation with THN other than as a "THN Affiliate" at any time or in any manner. Also, Affiliates are strictly prohibited from using THN logos, names, trademarks, or other proprietary information belonging to THN or its wholly owned subsidiaries, unless approved in writing by THN. This includes, but is not limited to, website URLs, online content, marketing materials, photography, signage, etc. Only THN and its wholly owned subsidiaries are authorized to use such logos, names, trademarks and other proprietary information. The production of any material containing logos, names, trademarks and other proprietary information of THN is strictly prohibited without prior written authorization.

O. Cold Marketing in Customer Acquisition and Recruiting

THN is a network marketing company that is focused on relationship, or "warm marketing" techniques. THN allows Affiliates to engage in a limited amount of "cold marketing" techniques for purposes of customer acquisition. Cold marketing is defined as any promotional activity that is geared toward random individuals who have no personal, business, social or acquaintance relationship(s) with the Affiliate. Examples of cold marketing include, but are not limited to, mass advertising, purchased leads, trade show participation, door-to-door selling, telemarketing, pamphlet distribution, etc. THN strictly prohibits door-to-door selling, telemarketing, and the purchase or sale of customers at any time. Furthermore, THN allows cold marketing techniques for purposes of recruiting other Affiliates, but cautions Affiliates that these methods can be costly, ineffective, and highly distracting to an Affiliate’s network marketing efforts. The use of telemarketing and "speed dial" (random or auto dialing) for recruiting purposes is strictly prohibited.

If a THN Affiliate uses cold marketing techniques, then that Affiliate is responsible for adhering to any applicable laws, limitations or regulations that govern such techniques, including the accuracy of all information presented. In addition, any materials, scripts, advertisements, literature, videos, audios, etc., used in conjunction with a cold marketing effort must strictly adhere to THN’s "Development and Use of Independent Marketing Materials" policy. THN strictly prohibits the use of creating materials to be distributed to their cold market for the purpose of customer or Affiliate acquisition, without prior approval from THN.

P. Unauthorized Contact

Under no circumstances, is an Affiliate permitted to directly contact any partner/ supplier/ service provider or Certified Contractor with whom THN contracts, unless it is in specific relation to a personal account they may currently have with said provider. Affiliates are not permitted to contact THN partners/suppliers/service providers or Certified Contractors directly for information, questions or advertising material. Everything an Affiliate needs can be found in their Back Office. Affiliates cannot approach THN partners/ suppliers/service providers or Certified Contractors regarding the THN Opportunity in an effort to recruit them as Affiliates. Affiliates cannot use any partner/supplier/service provider or Certified Contractor’s name or logo on personal websites, including references to a provider’s phone number.

Q. Development and Use of Independent Marketing Materials

Marketing materials are defined as any printed, broadcast or online communications including, but not limited to, advertisements, brochures, videotapes, audiotapes, flyers, banners, flags, websites, telephone recordings, emails, presentation materials, apparel, building signage, etc. THN strictly prohibits Affiliate-created marketing materials that 1) do not adhere to THN’s policy on use of logos, names, trademarks, and proprietary information, 2) make any specific references to THN's Compensation Plan, 3) make any claims or guarantees related to savings, rates or pricing, either expressed or implied, 4) make any earnings claims or provide any hypothetical earnings calculations (other than referring potential Affiliates to the THN Hypothetical Income Calculator), either expressed or implied, or 5) represent THN as an employment opportunity, either expressed or implied unless approved in writing by THN.

A. Personal Websites, Blogs, Web Pages and Social Networking Sites

THN understands the increased use of online material, and that many Affiliates may wish to utilize these methods in running their THN business. There are extremely strict rules and regulations that these online websites and web pages must adhere to. Please refer to section K of this document for complete details.

B. Business Cards

THN Affiliates are able to order business cards through the Back Office section of the Affiliate’s website. Only business cards ordered through THN are authorized to include the logo, and other proprietary information belonging to THN as they are produced by an approved third-party vendor. If an Affiliate wishes to create their own business cards they are not permitted to use any logos, names, trademarks and other proprietary information pertaining to THN. They may however, refer to themselves as a “THN Affiliate”.

C. Earnings/Income Claims

THN, including its wholly owned subsidiaries, strictly prohibits THN Affiliates from making any claims or guarantees related to earnings/income, whether expressed or implied. This limitation extends to both written and verbal communications. Only company prepared and approved hypothetical earnings calculations are permitted to be used, and they may only be used for purposes of describing the Compensation Plan.

D. Use of Partner Information

THN’s success relies heavily on its relationship with its partners, service providers and Certified Contractors to provide our customers with great service, materials, workmanship and value. As such, THN only has permission to use provider proprietary information such as logos, names and trademarks on THN created print and web material. Affiliates are not permitted to use provider names and/or logos on any marketing or advertising material that they create.

E. Cash or Monetary Incentives

THN, including its wholly owned subsidiaries, strictly prohibits THN Affiliates from offering cash or monetary incentives, promotions, prizes or bonuses to members of their downline or upline organizational members, or customers as a method of influencing customer acquisition. To eliminate cross-line recruiting practices, THN strictly prohibits the use of cash or monetary incentives/promotions/prizes/bonuses for purposes of recruiting new Affiliates. THN encourages its Affiliates to promote customer acquisition and recruiting by adhering to THN’s specific sales model.

F. Fundraising
THN allows Affiliates to market the THN opportunity to nonprofit organizations as a method of fundraising. When introducing the THN opportunity to a non-profit organization, Affiliates are responsible for advising the organization to discuss the tax implications of this type of business with a professional tax advisor. The nonprofit organization must be made aware that laws vary and that some state attorneys general have guidelines that must be complied with. In addition, all state and federal nonprofit fund raising laws must be complied with.

G. Recorded Messages

THN Affiliates may not have a voicemail message or answer his or her telephone in a manner that would lead the caller to believe that they have reached any official or corporate office of THN. When using the THN name, Affiliates must say “THN Affiliate”

H. Promotion of other Businesses or Programs

THN strictly prohibits the co-marketing of any other business, product, service, seminar or program in conjunction with the THN opportunity. This limitation applies to all promotional activities including, but not limited to, marketing materials, events, presentations, verbal solicitations, etc. In addition, THN strongly discourages the practice of using non-THN speakers at any THN-related event.

I. Media Enquiries and Personal Appearances

On occasion, THN Affiliates may be contacted by members of the media as a source or subject for a story. If this occurs Affiliates must immediately refer such inquiries directly to THN’s Marketing Department. Affiliates are strictly prohibited from representing THN in any public media arena, and from using uncompensated media forms including, but not limited to, news releases, articles, editorials, unpaid advertising, infomercials/advertorials, and television, cable or radio program appearances to promote or publicize THN or its products, except as approved in writing by THN.

Such requests must be submitted in writing to THN’s Marketing Department at least 30 days in advance of the media activity. This policy is necessary to ensure an accurate, legal and consistent public image for THN and its Affiliates. Affiliates can go online to www.thehailnetwork.com/news for the latest media information released by THN, or for more information. All media representations and/or appearances remain at the sole discretion of THN at all times.

J. Events

THN supports Affiliate participation in local tradeshows and other events in order to expose the THN concept to potential customers and new Affiliates. The true intent of such events is to provide further education on the THN Opportunity and how to be successful within this business. Under no circumstances are local events or any other type of meeting/training session intended to provide any additional income stream to those who are sponsoring the events and must be offered as nonprofit activities at all times. Under no circumstances are guests to be charged any form of admission to an event being hosted by an Affiliate. All events should be submitted to THN for approval in conjunction with the current terms of hosting events or exhibiting in tradeshows. Events that do not receive prior approval will be considered operating outside of THN’s Policies and Procedures and will not be promoted or endorsed by the company in any manner. Attendance at THN events is not a requirement for being an Affiliate, nor a prerequisite for success in this business.

K. Internet Marketing and Advertising

THN maintains an official company website and provides the optional Affiliate Marketing Kit, which includes a Personal Affiliate Website to help promote their business, for an additional cost of $149. THN strongly believes that it provides its Affiliates with all the online tools in order for them to run a successful business, and therefore discourages the creation of any online marketing or advertising outside of what THN already provides.

A. Personal THN Distributor Websites

THN offers its Affiliates a Personal Affiliate Website as part of its Affiliate Marketing Kit, which is created, managed and updated by THN and is the most effective, easiest way to establish an online business presence. These websites contain THN videos, presentations and other authorized content. With this program, Affiliates can promote THN products and services, as well as promote and sponsor new Affiliates to the THN Opportunity. Each Affiliate web site is linked directly to the Affiliate’s ID number. Affiliates are encouraged to use this website in conjunction with their THN business activities.

B. Other Personal Websites, Blogs, web pages and Social Networking Sites

If an Affiliate chooses to create any personal websites, web pages, blogs and/or social networking sites (Youtube, Facebook , Twitter etc.) the following conditions are mandatory.

  • Content must not include any of THN’s proprietary information, such as logos, name, trademarks, etc.
  • Under no circumstances is THN video material or online presentations to be made available on any websites other than those created or authorized by THN. Affiliates however may link to THN’s company websites or their THN Affiliate Website to view these videos and presentations.
  • The words “THN Affiliate” must be on the home page, along with the Affiliate’s name.
  • No online material should give the impression of representing THN the company, rather than as a THN Affiliate. This includes using THN as the title for any page within the Website, especially the Home Page.
  • Affiliate online material must not contain any product information and may only include information and wording regarding the business opportunity.
  • Except for the link to THN’s company websites or to your Personal THN Affiliate Website, Affiliate Websites may not have external links.
  • Promoting THN products and services online outside of thehailnetwork.com is strictly prohibited.
  • Copy downloaded from THN company websites or taken from printed THN literature must be used exactly as printed or written. Changing a word or two may change the real meaning or definition.
  • Once your site is completed, send a test link along with your Request Form for review and approval.
  • There are no guarantees regarding income, and the success or failure of each Affiliate depends upon each Affiliate’s own skills and personal effort. Web sites should not present false or misleading information about THN or the THN Opportunity.
  • Affiliates may not violate or infringe on the rights of others, including privacy, publicity and proprietary rights.
  • It is the sole responsibility of each THN Affiliate to ensure that its online material fully complies with the guidelines in the Policies and Procedures, as well as with all applicable federal and state rules and regulations. Affiliates are also responsible for ensuring that their downline comply with these policies.
  • All content (including graphics) must be submitted to THN and receive written approval prior to launching the content on the Internet.

C. Website Domain Names and URLs

Website URLs obtained by an THN Affiliate cannot contain references to THN, its Certified Contractors or trademarked products, other than a Affiliate’s Personal THN Affiliate Website. If a website contains such references, the THN Affiliate will be required to release the URL to THN. The THN name is a registered trademark, and only THN is authorized to produce and market online material under this trademark.

D. Spamming

THN does not permit Affiliates to send unsolicited e-mails. Any e-mail sent by an Affiliate that promotes THN, the THN Opportunity, or THN products and services must comply with the following:

  • There must be a functioning return e-mail address to the sender that includes a request that future e-mail solicitations or correspondence not be sent to him or her (a functioning “opt-out”notice).
  • The use of deceptive subject lines and/or false header information is prohibited.
  • All opt-out requests, whether received by e-mail or regular mail, must be honored.
  • All emails sent that promote THN, its Opportunity or products, must adhere to all the other marketing and advertising guidelines in this policy.