Policies and Procedures - Ambit Energy

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8policies and procedures“network marketing”). However, during the term of thisAgreement, Consultants may not directly or indirectlyRecruit other Ambit Consultants or customers for anyother network marketing business.Following the cancellation of a Consultant’s IndependentConsultant Agreement, and for a period of one yearthereafter, with the exception of a Consultant who ispersonally sponsored by the former Consultant, a formerConsultant may not recruit any Ambit Consultant orCustomer for another network marketing business. “Recruit”means the actual or attempted sponsorship, solicitation,enrollment, encouragement, or effort to influence in anyother way, either directly, indirectly, or through a thirdparty, another Ambit Consultant or customer to enrollor participate in another multilevel marketing, networkmarketing or direct sales opportunity.Consultants and the Company recognize that becausenetwork marketing is conducted through networks ofindependent contractors broadly dispersed across the entireUnited States and internationally, and business is commonlyconducted via the Internet and telephone, an effort tonarrowly limit the geographic scope of this non-solicitationprovision would render it wholly ineffective. Therefore,Consultants and Ambit agree that this non-solicitationprovision shall apply throughout the United States.4.8.2. sale of competing energy services.Consultants must not sell, or attempt to sell, any non-Ambit energy related programs, products or services toAmbit customers or Consultants.4.8.3. consultant participation in other directselling programs. If a Consultant is engaged in othernon-Ambit direct selling programs, it is the responsibilityof the Consultant to ensure that his or her Ambit businessis operated entirely separate and apart from any otherprogram. To this end, the following must be adhered to:• Consultants shall not display Ambit promotional material,sales aids, products or services with or in the samelocation as any non-Ambit promotional material or salesaids, products or services.• Consultants shall not offer the Ambit opportunity,products or services to prospective or existing customersor Consultants in conjunction with any non-Ambitprogram, opportunity, product or service.• Consultants may not offer any non-Ambit opportunity,products, services or opportunity at any Ambit-relatedmeeting, seminar or convention, or within 2 hours and a5-mile radius of the Ambit event. If the Ambit meetingis held telephonically or on the Internet, any non-Ambitmeeting must be at least two hours before or after theAmbit meeting, and on a different conference telephonenumber or Internet address from the Ambit meeting.4.8.4. downline activity (genealogy) reports.Consultant access to their Downline Activity Reports ispassword protected. All Downline Activity Reports andthe information contained therein are confidential andconstitute proprietary information and business tradesecrets belonging to Ambit. Downline Activity Reportsare provided to Consultants in strictest confidenceand are made available to Consultants for the solepurpose of assisting Consultants in working with theirrespective Downline Organizations in the developmentof their Ambit business. Consultants should use theirDownline Activity Reports to assist, motivate, and traintheir downline Consultants. The Consultant and Ambitagree that, but for this agreement of confidentiality andnondisclosure, Ambit would not provide DownlineActivity Reports to the Consultant.A Consultant shall not, on his or her own behalf, or onbehalf of any other person, partnership, association,corporation or other entity:4.8.4.1. Directly or indirectly disclose any informationcontained in any Downline Activity Report to any third party;4.8.4.2. Directly or indirectly disclose the password orother access code to his or her Downline Activity Report;4.8.4.3. Use the information to compete with Ambit orfor any purpose other than promoting his or her Ambitbusiness;4.8.4.4. Recruit or solicit any Consultant or Customer ofAmbit listed on any report, or in any manner attempt toinfluence or induce any Consultant or preferred Customerof Ambit, to alter their business relationship with Ambit; or4.8.4.5. Use or disclose to any person, partnership,association, corporation, or other entity any informationcontained in any Downline Activity Report.Upon demand by the Company, any current or formerConsultant will return the original and all copies ofDownline Activity Reports to the Company.4.9: Targeting Other Direct SellersAmbit does not condone Consultants specifically orconsciously targeting the sales force of another direct sales
ambit energy, l.p. 9company to sell Ambit products or to become Consultantsfor Ambit, nor does Ambit condone Consultants’ solicitationor enticement of members of the sales force of anotherdirect sales company to violate the terms of their contractwith such other company. Should Consultants engage insuch activity, they bear the risk of being sued by the otherdirect sales company. If any lawsuit, arbitration or mediationis brought against a Consultant alleging that he or sheengaged in inappropriate recruiting activity of its salesforce or customers, Ambit will not pay any of Consultant’sdefense costs or legal fees, nor will Ambit indemnify theConsultant for any judgment, award, or settlement.4.10. Cross-SponsoringActual or attempted cross-sponsoring is strictly prohibited.“Cross-sponsoring” is defined as the enrollment ofan individual who or entity that already has a currentcustomer or Consultant Agreement on file with Ambit, orwho has had such an agreement within the preceding sixcalendar months, within a different line of sponsorship.The use of a spouse’s or relative’s name, trade names,DBAs, assumed names, corporations, partnerships,trusts, federal ID numbers, or fictitious ID numbers tocircumvent this policy is prohibited. Consultants shall notdemean, discredit or defame other Ambit Consultants inan attempt to entice another Consultant to become part ofthe first Consultant’s marketing organization. This policyshall not prohibit the transfer of an Ambit business inaccordance with Section 4.5.If cross-sponsoring is discovered, it must be brought tothe Company’s attention immediately. Ambit may takedisciplinary action against the Consultant that changedorganizations and/or those Consultants who encouragedor participated in the cross-sponsoring. Ambit may alsomove all or part of the offending Consultant’s downline tohis or her original downline organization if the Companydeems it equitable and feasible to do so. However, Ambitis under no obligation to move the cross-sponsoredConsultant’s downline organization, and the ultimatedisposition of the organization remains within the solediscretion of Ambit. Consultants waive all claims andcauses of action against Ambit arising from or relatingto the disposition of the cross-sponsored Consultant’sdownline organization.4.11. SlammingConsultants must never switch, or attempt to switch, anyindividual or entity to Ambit Energy’s services unless theperson has authorized the transfer by signing a Letter ofAuthorization (LOA) consenting to change their service toAmbit’s service.4.12. Contacting SuppliersUnder no circumstances may a Consultant contact anyAmbit supplier of energy service or other Ambit supplierof services without prior written authorization froman authorized officer of Ambit Energy. Further, underno circumstances may a Consultant directly contacta competitive retail electricity provider on behalf ofAmbit or in connection with any Ambit business withoutreceiving prior written authorization from an authorizedofficer of Ambit.4.13. Errors or QuestionsIf a Consultant has questions about or believes anyerrors have been made regarding commissions, bonuses,downline activity reports, or charges, the Consultant mustnotify Ambit in writing within 60 days of the date of thepurported error or incident in question. Ambit will notbe responsible for any errors, omissions or problems notreported to the Company within 60 days.4.14. Governmental Approval or EndorsementNeither federal nor state regulatory agencies or officialsapprove or endorse any direct selling or network marketingcompanies or programs. Therefore, Consultants shall notrepresent or imply that Ambit or its Compensation Planhave been “approved,” “endorsed” or otherwise sanctionedby any government agency.4.15. IdentificationEvery Ambit Independent Consultant will be assigned aunique identification number “code” which will becometheir identification number and will be used in allcorrespondence. Every Ambit identification number musthave a corresponding tax ID number provided by theConsultant during the application process. Only SocialSecurity numbers or FEINs issued by the Social SecurityAdministration or Internal Revenue Service, for use bythe individual or organization filling out the ConsultantAgreement, will be accepted. Providing false or invalidSocial Security numbers or FEINs to Ambit will subject aConsultant to termination. All identification numberswill be kept strictly confidential, except where properlyand legally required.4.16. Naming Your IndependentConsultant Business.The name of a Consultant position is determined by the
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