"Situational Ethics"
From a site visitor:
"As an IBO who has qualified as a Q-12/Founders Direct for six consecutive years, I am one of those IBO's who has made money and has been pleased with both the Corporation and my line of sponsorship, or so was the case until just recently. On November 12, 1999 I attended INA's Go-Diamond weekend in Reno, Nevada. On Friday evening, November 12 I heard INA President, Jim Floor, describe the unsatisfactory relationship we had with Amvox principally due to its unwillingness to "keep up with the times." With Quixtar coming on line we would need to have a state-of-the-art communications company on board to support our efforts. We learned that evening that efforts were underway to find an Amvox alternative. The following day we learned that Jim Floor was able to reach an agreement with EasyTel in the wee early morning hours to provide the type of service that didn't seem to be available twelve hours earlier. I am still trying to figure out why the EasyTel representatives just happened to be at the hotel in the early morning hours of November 13 or how they were able to sponsor a hospitality suite that evening. They also made a presentation on Sunday the 14th complete with a video. Well, I've stopped wondering. The agreement between EasyTel and INA was dated November 11, 1999 and signed by Jim Floor.
I have been wondering for the last year and a half why my upline Diamonds have been preoccupied with this new "Genie" system through EasyTel. The answer is easy. To satisfy my curiosity, I began to do an internet search on Pacific Telcom that markets "Genie". Well my curiosity was satisfied when I located Pacific Telcom's application to the SEC to register 25,000,000 shares of stock. Now I know why "Genie" is being shoved down our throats. Jim Floor owns 500,000 shares of stock in Pacific Telcom and is one of the company's Directors. There were also at least six other INA Diamonds and one Emerald that own stock. That same Emerald, Driggs Jessup, is also a Director of Pacific Telcom. James Janz, a Crown distributor from Canada, is also a special advisor to the board.
I thought it was unethical and against the Amway and Quixtar Code of Conduct rule 4.14 to operate a business within the Quixtar/Amway business except to those IBOs you personally sponsor. Not only is INA marketing a separate business to non-personally sponsored IBOs (I know this because they have solicited my personal downline because I have refused to signup for "Genie"). There is even a provision in the reseller's agreement with Pacific Telcom to be compensated for marketing "Genie" to IBOs in other marketing organizations. I think we used to call those IBOs crossline. Not only are these upline Diamonds making money on the marketing of "Genie" to their own lines of sponsorship and to other lines of sponsorship, they stand to benefit financially should Pacific Telcom become profitable. So much for integrity and objectivity when their pockets are being lined. We used to call that "situational ethics". As for me I will remain faithful to the Quixtar/Amway family and the Amvox system "my company" markets."
From the Hart v. Gooch et al First Amended Complaint..
178. On knowledge and belief, Pacific Telcom, Inc. ("Pac Tel"), the manufacturer of "Genie," gave Defendant Gooch (ProNet’s President and Director), 600,000 shares of stock in exchange for Pro Net and/or Pro Net Profit’s agreement to market "Genie" actively to Pro Net members; and Defendant Gooch, on stage at a Pro Net function, represented that these shares would be divided among Pro Net Diamond members, which has not occurred.
179. On knowledge and belief, non-party co-conspirator Robert Blanchard was given 100,000 shares of stock as a result of Pro Net agreeing to market EasyTel.
The SEC Filing at amquix.info or The SEC WEB site file
Excerpts from the filing:
7. The Company distributes its products and services by using Independent marketing entities, individuals, and retail vendors of such products as cell phones, pagers, computers and other Internet appliances. The Company's largest outlet is comprised of six groups of independent distribution networks within the Quixtar Network Marketing Company, which have about 300,000 independent Quixtar/Amway distributors (the "Alliance"). Quixtar is a global marketing and distribution network of more than 3,000,000 individuals distributing Quixtar/ Amway products. Senior members of the Alliance are responsible for a significant portion of the Company's current subscribers and many of its recent investors.
(B) SECURITY OWNERSHIP OF MANAGEMENT.
(1) (2) (3) (4)
Name and Address Amount and Nature Percent
Title of Class of Beneficial Owner of Beneficial Owner of Class
Common Shares James G. Floor 500,000 Shares 4.78
Director
7120 Summerwood Ct.
Granite Bay, CA 95746
Common Shares Driggs Jessup 110,000 Shares 1.05
Director
305 Creekside Place
Nampa, ID 83686
Common Shares Bob Blanchard 100,000 Shares .96
Director
5075 Cascade Rd., SE
Suite K
Grand Rapids, MI 49546
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Driggs M. Jessup 46 Director 1 Year No
Mr. Jessup is President and owner of Jessup Enterprises, a national and international e-commerce company. He is also a consultant for Marketing Team Fitness.com, a corporate fitness company. Mr. Jessup is also a professional speaker and trainer for INA (InterNet Association).
Bob Blanchard 45 Director 1 Year No
Mr. Blanchard currently serves as the President/CEO of e-Alliance Holding, Inc., which is a multi-national strategic business alliance, and President/COO of ProNet Global, Inc. that is a leading provider of resources to independent business owners. Earlier, Mr. Blanchard was Vice President of Strategy & Business Development for Reliable Energy Inc., a management consulting firm. He also served as Corporate Director of US Xchange, L.L.C., a start up CLEC with a network in operation in the Midwest, and Director of North America for Amway Corporation one of the world's largest direct selling companies. Mr. Blanchard holds a M.B.A. from Northwestern University.
James G. Floor 58 Director 1 Year No
Mr. Floor is President and Director of International Networking Association, Inc. He owns Floor Enterprises, Inc., which provides training and support for thousands of independent business owners throughout the United States and Canadaand generates millions of dollars of revenue annually. Mr. Floor is also an
elected member of the Independent Business Owners Association International of
Quixtar Corporation and a member of the Board of E. Alliance, Inc. Mr. Floor
has a B.S. in Architectural Engineering and an M.B.A.
James E. Janz 59 Special Advisor to The Board 1 Year No
Mr. Janz has been a businessman for over 37 years. He has developed an international marketing company that does over one billion dollars worth of business per year. He has been a leader in distribution technology or over 10 years assisting in the development of leading edge technology for the distribution of goods and services worldwide.
Mr. Janz currently serves as Chairman of World Serve. He is on the Board of Internet Associates. He has served as the Chairman of the Foundation Board of Trinity University and as the Chairman of a task force on Small Business for the province of British Columbia.
ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES.
Date Title Amount Sold Purchaser Consideration
- - - - - - - - - - - - - - - - - - - - - -------------------------------------------------Recent Stock Purchases by INA Diamonds/Emeralds.
12/31/99 Common 15,000 CBD Int'l Inc. $ 15,000 PSP FBO Clark C. Broome
02/10/00 Common 15,000 Brad & Cheryl Biegert $ 15,000
03/21/00 Common 16,000 Dan Boettcher $ 40,000
03/30/00 Common 6,000 David Lovett $ 15,000
05/29/00 Common 6,000 Robert H. DuBose III. $ 15,000
05/30/00 Common 6,000 Robert H. DuBose $ 15,000
06/20/00 Common 18,000 James Elliott $ 45,000
RE-SELLER'S REPRESENTATIVE AGREEMENT
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(Switch-less Re-Seller's Rep Agreement)
THIS AGREEMENT is entered into on November 11, 1999, by and between EasyTel, a Nevada corporation (hereinafter "EasyTel") and International Network Associates, (hereinafter " INA").
RECITALS
1. EasyTel is an electronic information and enhanced telecommunication services and systems provider to end users as "Business Services", and through its Switched Re-Seller agreement with M&M Communications and Pacific TelCom, Inc, (hereinafter jointly "Switched Re-Sellers"), to INA as "Commercial Services", and;
2. EasyTel offers proprietary information services, the Universal Telephone Number, Follow-Me services, Call Screening, voice mail, FaxMail, Fax-on-Demand, paging, domestic and international telephone service, Pre-Paid Services, and various call processing programs, as a service, on its proprietary platforms known as "The Universal Office", (hereinafter "EasyTel Services"), and;
3. INA currently has access to certain national and international distribution channels consisting of independent business owners, also known as Amway/Quixtar independent business owners (hereinafter "IBOs"), and;
4. INA is a member of a newly created alliance between Network TwentyOne, International Network Associates, ProNet Global Inc, International Leadership Development, and International Connection (hereinafter the "Alliance"), and;
5. The parties wish to create a business relationship in which INA and each member of the Alliance will receive commissions and other compensation based on the amount of EasyTel services sold by each member of the Alliance to their own IBOs, and other independent business owners and professionals, and;
6. Whereas it is the intent of each member of the Alliance to enter into an identical Re-Seller's Representative Agreement contemporaneously, as part of a joint plan and;
7. "INA Downline" means and refers to customers that are referred to EasyTel by INA IBOs (or such IBO's referees whether or not such referees are IBOs).
NOWTHEREFORE, the parties agree as follows:
1. Easytel's Charges EasyTel's charges for using EasyTel's Universal Telephone Number for customers that are referred by INA Downline are as follows:
a. $25 Activation Fee. (Upon written notice to EasyTel, INA or any other member of the Alliance can choose to have the activation fee waived or reduced for their own IBOs).
b. $25 Monthly Fee
c. $25 usage for prepaid calling time will be established by the users floor limit.
a. For each INA Downline who activates a Universal Telephone Number, EasyTel shall pay to INA the following:
I The $25 activation fee paid by each INA Downline (or such lesser amount paid should INA request that the activation fee be reduced).
II A $5 per user commission paid each month for each INA Downline with a Universal Telephone Number. The total number of TwentyOne Downline for the payment calculation will be based on the number of TwentyOne Downline who have current Universal Telephone Numbers on the 25th of the month. (I.e. if 1000 TwentyOne Downline are subscribers to the Universal Telephone Number as of the 25th of the month, then INA would receive $5,000 as a commission for that particular month).
III A ten percent (10%) commission on all billable telecommunication usage generated by TwentyOne Downline will be paid each month to INA.
3. Compensation to the Alliance
a. The Alliance and/or its members may sell EasyTel services to other IBOs who are not a part of or belong to any of the Alliance Members(for example other Amway or Quixtar Distributors) but are IBOs who would like to utilize EasyTel Services (hereinafter "Non-Alliance IBO"). The term "Non-Alliance IBO" for the purposes of calculating payments owned to the Alliance shall also include customers that are referred to EasyTel by Non-Alliance IBOs and such IBO's downline referrals (whether or not such referrals are IBOs). For each new Non-Alliance IBO who activates a Universal Telephone Number, EasyTel shall pay the Alliance directly the following:
I A $5 activation fee.
II A $1.00 per user commission paid each month for each Non-Alliance IBO with a current Universal Telephone Number. The total number of Non-Alliance IBOs for the payment calculation will be based on the number such IBOs with active Universal Telephone Numbers on the 25th of the month. (I.e. if 1000 Non-Alliance IBOs are active subscribers to the Universal Telephone Number as of the 25th of the month, then the Alliance would receive $1,000 as a commission for that particular month).
III A five percent (5%) commission on all billable telecommunication usage generated by the Non-Alliance IBOs will be paid each month directly to the Alliance.
4. For every account referred to EasyTel, a monthly credit of $2.50 will be applied to the referring person's EasyTel account. ("EasyTip" credit). In this way, an EasyTel subscriber can build unlimited EasyTel credit to offset their telecommunication expenses.
5. SIX Month Exclusive Marketing Rights to the Alliance Network TwentyOne, in a previous agreement with EasyTel, for a one-time none-refundable fee, reserved the exclusive right to introduce and sell EasyTel services to other North American Amway organizations for a period of 90 days. Network TwentyOne and EasyTel agree to transfer this exclusive right to the Alliance.
In consideration for the Alliance and all its members agreeing to endorse and utilize the EasyTel Universal Telephone Number as its exclusive company sanctioned unified messaging tool, EasyTel agrees to extend the above exclusive right to a term of six months from the date of this Agreement.
In the event INA, or any other member of the Alliance, has egotiated a Letter of Intent with another Amway organization within the six month period regarding the EasyTel services, EasyTel agrees to allow an additional 30 days to execute a final Re-Seller Agreement with any such organization.
In the event that during the above six months, other North American Amway groups establish contact with EasyTel in order to negotiate a contract with EasyTel, but without the involvement of the Alliance, EasyTel is free to conclude such negotiations on the condition that it preserves the compensation to the Alliance as per section 3 above.
10. INA Production Quotas and Other Standards
a. The INA agrees to produce at least 1000 new EasyTel customers each quarter during the first five quarters or cumulative new customers of 1000 in the 1st quarter, 2000 by the second quarter, 3000 by the third quarter and so on. INA will have met all Production Quotas for purposes of this agreement should they produce 5,000 new EasyTel customers by the end of the fifth quarter.
RE-SELLER'S REPRESENTATIVE AGREEMENT
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(SWITCH-LESS RE-SELLER'S REP AGREEMENT)
THIS AGREEMENT is entered into on November 11, 1999, by and between EASYTEl, a Nevada corporation (hereinafter "EASYTEL") and PRONET GLOBAL I, INC., (hereinafter " ProNet").
RE-SELLER'S REPRESENTATIVE AGREEMENT
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(SWITCH-LESS RE-SELLER'S REP AGREEMENT)
THIS AGREEMENT is entered into on December 2, 1999, by and between EASYTEl, a Nevada corporation (hereinafter "EASYTEL") and INTERNATIONAL LEADERSHIP DEVELOPMENT, (hereinafter " ILD").
