Policies and Procedures - Ambit Energy

6policies and proceduresIf an active Consultant desires to change the status fromthat of an individual Consultant to that of a corporateConsultant, the Consultant must use the Sale/TransferForm available online through Power Zone. See “Sale/Transfer of Consultant Position” under “Consultant Rightsand Obligations” for more details.It is not permissible for stockholders, officers and directorsof the corporation applying as a Consultant corporationto have been Ambit Consultants, (1) as individuals, or(2) as members of a Consultant partnership, or (3) as astockholder, officer or director of another Consultantcorporation, or (4) as a trustee or a beneficiary of anConsultant trust, within six calendar months precedingthe execution of the Consultant Agreement.4.4.2. partnerships. To become a new Consultant asa partnership or to change the status of the partnership,you must provide Ambit with the following:• A completed Consultant Agreement;• A copy of the partnership agreement executed by all partners;• Full name, address and social security number of each partner;• A copy of the official notification from the InternalRevenue Service issuing the FEIN for the partnership;• A copy of the consent of the partnership to enter into theConsultant Agreement with Ambit; and• A letter of designation from the partnership designatingone individual, who must be at least 18 years of age, as theresponsible party for the partnership’s operations.It is not permissible for any partner applying as aConsultant partnership to have been an Ambit Consultant(1) as an individual, or (2) as a partner of anotherConsultant partnership, or (3) as a stockholder, officer ordirector of an Consultant corporation, or (4) as a trusteeor a beneficiary of an Consultant trust, within six calendarmonths preceding the execution of the ConsultantAgreement.4.4.3: trusts. To become a new Consultant as a trust orto change the status of the Consultant position to a trust,you must provide Ambit with the following:• Completed Consultant Agreement signed by all trustees ofthe trust.• A complete copy of the trust agreement.• Full name, address and Social Security number of alltrustees and beneficiaries.• A copy of the official notification from the InternalRevenue Service issuing the FEIN for the trust.• Letter of designation from the trustees designating oneindividual, who must be at least 18 years of age, as theresponsible party for the trust’s operations and sales.If an active Consultant desires to change status from thatof an individual Consultant to that of a trust Consultant,the Consultant must use the Sale/Transfer Form availableonline through Power Zone. See “Sale/Transfer ofConsultant Position” under “Consultant Rights andObligations” for more details.It is not permissible for any trustee or beneficiary of atrust applying as an Consultant trust to have been anAmbit Consultant (1) as an individual, or (2) as a partnerof an Consultant partnership, or (3) as a stockholder,officer or director of a Consultant corporation, or (4) asa trustee or a beneficiary of another Consultant trust,within six calendar months preceding the executionof the trust Consultant agreement.4.4.4: business entity transfers may not resultin sponsor changes. To prevent the circumventionof Section 4.24 (regarding transfers and assignments ofAmbit business), if an additional partner, shareholder,member, or other business entity affiliate is added toa business entity, the original applicant must remainas a party to the original Consultant Application andAgreement. If the original Consultant wants to terminatehis or her relationship with the Company, he or she musttransfer or assign his or her business in accordance withSection 4.24. If this process is not followed, the businessshall be cancelled upon the withdrawal of the originalConsultant. All bonus and commission checks will be sentto the address of record of the original Consultant.Please note that the modifications permitted withinthe scope of this paragraph do not include a changeof sponsorship. Changes of sponsorship are addressedin Section 4.5, below. In cases in which an impropersponsor change has occurred, Ambit reserves the soleand exclusive right to determine the final disposition ofthe downline organization. Resolving conflicts over theproper placement of a downline that has developed underan organization that has improperly switched sponsors isoften extremely difficult. Therefore, CONSULTANTS WAIVEANY AND ALL CLAIMS AGAINST AMBIT THAT RELATETO OR ARISE FROM AMBIT’S DECISION REGARDINGTHE DISPOSITION OF ANY DOWNLINE ORGANIZATIONTHAT DEVELOPS BELOW AN ORGANIZATION THAT HASIMPROPERLY CHANGED LINES OF SPONSORSHIP.4.5: Change of Sponsor