MA Rule Number (5) Five
The Company RECRUITING POLICY
The Company, LLC. (AAG)
Membership Agreement Rule 5
SUBJECT: A) Recruiting of AAG Members to Non-AAG Business Ventures / B) Involvement in Other Multi-Level Hierarchical Sales Organizations
Sales Position Designations Covered by this Membership Agreement Rule
This Membership Agreement Rule (“Rule”) is issued pursuant to the Membership Agreement (“MA”) and applies to all Members of The Company, Inc. (“AAG”), including those who hold the Vice President (Level 20) sales position or higher-level sales position designations.
This Rule addresses recruiting by AAG Members to Non-AAG business ventures and involvement of AAG Members in other multi-level businesses. AAG expends significant resources to build its network of independent sales contractors (“The Company”), which is its most valuable asset. Preservation of this sales force is essential to the continuing success of AAG and all AAG Members. Attempts by AAG a Members to recruit, directly or indirectly, in other multi-level hierarchical sales organizations, dilute and undermine the integrity of The Company, resulting in significant harm to AAG and all AAG Members. When used in this Rule, the term “indirectly” shall mean through one or more natural persons (including family members) or one or more nominees, powers of attorney, proxies, corporations, associations, partnerships, trusts, other entities or devices, or any combination thereof.
Prohibition of Recruiting AAG Members to Non-AAG Business Ventures
No AAG Member shall, at any time during the term of his/her MA, directly or indirectly, recruit, attempt to recruit, induce or attempt to induce, any AAG Member to become a member or join, to enter into a contractual agreement or otherwise become affiliated with directly or indirectly, or to sell or to solicit any products or services for any business venture, person, company, or entity of any kind.
Involvement in Other Multi-Level Hierarchical Sales Organizations
Any AAG Member who is directly or indirectly a member of, a participant in, or has any contractual affiliation or other business relationship with, whether as an employee, agent, representative, or otherwise, any hierarchical sales organization which compensates, in whole or part, its sales agents, contractors, or representatives in the form of multi-level and/or multi-generational sales commissions based on sales of persons recruited to such organization will be considered a “Non-Committed” member of AAG in accordance with the MA, regardless of the type of products or services offered for sale by such hierarchical sales organization. In order for a Member to be considered a “Committed” Member of AAG, he or she must not directly or indirectly, market any products or services other than those marketed by AAG.
Consequences of Violation
Any violation of Section III of this Rule shall constitute a “for cause” basis for termination of an AAG Member under the Membership Agreement and will result in divestiture of commissions. Any violation of Section IV of this Rule will result in a classification of the Member as a Non-Committed Member of AAG. Such classification will render the Member ineligible for any current or future senior executive sales position designation, including, but not limited to, “Vice President” and will result in a loss of the benefits Member with such designations.