Policies and Procedures - Ambit Energy

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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
ambit energy, l.p. 7To protect the integrity of all marketing organizationsand safeguard the hard work of all Consultants, Ambitprohibits changes in sponsorship. Maintaining theintegrity of sponsorship is critical for the success of everyConsultant and marketing organization. Accordingly,the transfer of an Ambit business or customer accountfrom one sponsor to another is not permitted unless theConsultant or customer voluntarily cancels his or herAmbit business or service and remains inactive (i.e., nopurchases of Ambit services, no sales of Ambit services,no sponsoring, no attendance at any Ambit functions,participation in any other form of Consultant activity,or operation of any other Ambit business) for six fullcalendar months. Following the six-month period ofinactivity, the former Consultant or customer may reapplyunder a new sponsor.In cases in which an improper sponsor change hasoccurred, Ambit reserves the sole and exclusive rightto determine the final disposition of the downlineorganization. Resolving conflicts over the properplacement of a downline that has developed under anorganization 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.4.6: Unauthorized Claims4.6.1: indemnification. A Consultant is fullyresponsible for all of his or her verbal and writtenstatements made regarding Ambit products, services, andthe Compensation Plan which are not expressly containedin official Ambit materials. Consultants agree to indemnifyAmbit and Ambit’s directors, officers, employees, andagents, and hold them harmless from any and all liabilityincluding judgments, civil penalties, refunds, attorneyfees, court costs, or lost business incurred by Ambit as aresult of the Consultant’s unauthorized representations oractions. This provision shall survive the termination ofthe Consultant Agreement.4.6.2 income claims. In their enthusiasm toenroll prospective Consultants, some Consultants areoccasionally tempted to make income claims or earningsrepresentations to demonstrate the inherent power ofnetwork marketing. This is counterproductive becausenew Consultants may become disappointed very quicklyif their results are not as extensive or as rapid as the resultsothers have achieved. At Ambit, we firmly believe thatthe Ambit income potential is great enough to be highlyattractive, without reporting the earnings of others.Moreover, the Federal Trade Commission and severalstates have laws or regulations that regulate or evenprohibit certain types of income claims and testimonialsmade by persons engaged in network marketing. WhileConsultants may believe it beneficial to provide copiesof checks, or to disclose the earnings of themselves orothers, such approaches have legal consequences that cannegatively impact Ambit as well as the Consultant makingthe claim unless appropriate disclosures required by laware also made contemporaneously with the income claimor earnings representation. Because Ambit Consultantsdo not have the data necessary to comply with the legalrequirements for making income claims, a Consultant,when presenting or discussing the Ambit opportunity orCompensation Plan to a prospective Consultant, may notmake income projections, income claims, or disclose hisor her Ambit income (including the showing of checks,copies of checks, bank statements, or tax records).4.6.3: product claims. Consultants are prohibitedfrom making any claim regarding Ambit Energy productsthat deviates from the product’s terms, pricing, andconditions.4.6.4: claiming to be customer. Consultants arestrictly prohibited from holding themselves out as thecustomer. Consultants shall neither perform third-partyverification (“TPV”) for the customer nor interfere withTPV by guiding customer’s answers or remaining on theline during the recorded TPV call. Consultants shall notcomplete enrollment for the customer, sign documents forthe customer, or act on behalf of the customer.4.7: Trade Shows, Expositions andOther Sales ForumsConsultants may display and/or sell Ambit servicesat trade shows and professional expositions. Beforesubmitting a deposit to the event promoter, Consultantsmust contact Consultant Support in writing forconditional approval.4.8: Conflicts of Interest4.8.1. nonsolicitation. Ambit Consultants are freeto participate in other multilevel or network marketingbusiness ventures or marketing opportunities (collectively
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Policies and Procedures - Ambit Energy

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