Section 2: Definitions

Active: A Wellness Advocate who has purchased dōTERRA products within the past twelve months. Reactivation of a Wellness Advocate or Wholesale Customer means a Wellness Advocate or Wholesale Customer that places an order after 12-monthy commission periods from the last day of the month of their last order.

Annual Renewal Fee: A fee that is required to be paid by a Wellness Advocate to the Company to renew his or her Distributorship each year on the Wellness Advocate’s anniversary signup date.

Bonus: Compensation (sometimes called “commissions”) paid by the Company to a Wellness Advocate based on the volume of products sold by a Wellness Advocate’s organisation upon meeting the requirements of the dōTERRA Sales Compensation Plan. (see Section 10)

Business Application Addendum: A supplemental document to the Wellness Advocate Agreement Form. The Business Application Addendum must be completed and signed by a partnership, corporation, or other legal entity (see Corporation) applying to become a Wellness Advocate. The Business Application Addendum should list all Persons who are partners, shareholders, principals, officers, beneficiaries, directors or members of a Corporation.

Company: Company or “dōTERRA” means dōTERRA Global Limited or any lawful assignee, successor, subsidiary or affiliate regardless of geographic location, together with dōTERRA South Africa Proprietary Limited.

Company Credit: Company Credit is a Wellness Advocate’s account receivable balance. Company Credit can be used to purchase product (compare, Product Credit).

Consultant: The title of level one Wellness Advocate in the Company’s Sales Compensation Plan.

Contract: The agreement between a Wellness Advocate and the Company comprised of this Policy Manual and the Wellness Advocate Agreement Form together with any Business Application Addendum.

Corporation: Any business entity such as a corporation, partnership, limited liability company, or other form of business organisation legally formed under the laws of the jurisdiction in which it was organised.

Customer. The term “Customer” means a Person who purchases products but does not participate in the dōTERRA Compensation Plan and includes Wholesale Customers.

Distributorship: The term Distributorship is another term for the business of any Wellness Advocate, as represented by a Wellness Advocate’s contractual relationship with the Company.

dōTERRA Intellectual Property: dōTERRA Intellectual Property means all intellectual property which dōTERRA Holdings, LLC or an affiliated company claims to own, or claims a right to use, including but not limited to trademarks, trade names, service marks, domain names, copyright, and content of its publications, whether registered with relevant governmental authorities or not.

Downline: Another term for Organisation.

Enrollee: Wellness Advocate or Customer that a Wellness Advocate holds enrollership.

Enroller: Enroller is a designation that entitles a Wellness Advocate to qualify for Ranks and Fast Start Bonuses in the Sales Compensation Plan. Enrollers also enjoy the ability to identify a new Wellness Advocate’s Sponsor within the Enroller’s Organisation. An Enroller can also be the Sponsor (compare, Sponsor).

Hospital: Any Hospital, medical health or treatment centre, care home, retirement home, convalescence centre, or similar institution or location.

Local Market: A single country or grouping of countries that the Company designates.

Loyalty Rewards Program: The Loyalty Rewards Program (LRP) is a product ordering program wherein a Wellness Advocate or Wholesale Customer can set up automatic monthly deliveries of dōTERRA products, and which may qualify a Wellness Advocate to receive Product Credits and other benefits in the Sales Compensation Plan (see Section 10).

Open Local Market: A country or geographical region designated in writing by the Company as officially open for dōTERRA business.

Organisation: The group of Wellness Advocates sponsored in a Wellness Advocate’s direct and subsequent downline chain of sponsorship, within qualifying commission levels.

Person: An individual, corporation, partnership, or other legal entity.

Ranks: Designations (levels) earned by and given to Wellness Advocates in the Company’s Sales Compensation Plan structure, including: Consultant, Manager, Director, Executive, Elite, Premier, Silver, Gold, Platinum, Diamond, Blue Diamond, and Presidential Diamond. Ranks are earned and determined each monthly commission period.

Policy Manual: This document which forms part of the Contract.

Product Claims: Claims related to the efficacy or effect of dōTERRA products. Product claims are regulated by laws and government bodies in doTERRA’s home country including the Food and Drug Administration and Federal Trade Commission, or similar governmental agencies in the jurisdiction of the Wellness Advocate.

Product Credits: Product Credits are non-cash redeemable points that can be used to purchase Company designated products. Product Credits are granted as part of the LRP, and in the discretion of the Company for deserving Wellness Advocates and Customers. No Personal Volume or Organisational Volume is associated with the redemption of Product Credits (compare, Company Credit).

Sales Aid: Any material, whether physically printed or in digital form, used in the offer or sale of Company products, recruitment of prospective Wellness Advocates or Customers, or training of Wellness Advocates, which makes reference to the Company, the Company products, the Sales Compensation Plan, or dōTERRA Intellectual Property.

Sponsor: A Wellness Advocate who has another Wellness Advocate placed directly underneath him/her in his/her Organisation (compare, Enroller).

Wellness Advocate: A Person who is an independent contractor authorised by the Company to purchase and retail products to Customers, recruit other Wellness Advocates, and receive bonuses and commissions in accordance with the requirements of the Sales Compensation Plan. A Wellness Advocate's relationship to the Company is governed by the Contract. More than one Person may be included on a Distributorship as a co-applicant. In such a case, Wellness Advocate refers to all Persons collectively, although each Person individually has all the Wellness Advocate rights and obligations. Reactivation of a Wellness Advocate means a Wellness Advocate that places an order after 12-monthly commission periods from the last day of the month of their last order.

Wellness Advocate Agreement Form: The application, whether in printed or electronic form, to become a Wellness Advocate which, upon acceptance by the Company, is part of the Contract between the Wellness Advocate and the Company.

Wholesale Customer: A Wholesale Customer is a Person who purchases products at a discount. A Wholesale Customer does not earn bonuses through the dōTERRA Compensation Plan. A Wholesale Customer, however, may earn volume discounts on products through dōTERRA’s Reward Program. Reactivation of a Wholesale Customer means a Wholesale Customer that places an order after 12-monthly commission periods from the last day of the month of their last order.

Wholesale Customer Agreement Form: The application, whether in printed or electronic form, to become a Wholesale Customer.