Section 2: Definitions

Active: A Wellness Advocate who has purchased dōTERRA products within the past twelve months.

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 organization upon meeting the requirements of the dōTERRA Sales Compensation Plan. See, Section 10.

Business Application Addendum: A supplemental document to the Wellness Advocate Agreement. 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 Enterprises, Sárl.

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

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

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

Corporation: Any business entity such as a corporation, partnership, limited liability company, or other form of business organization legally formed under the laws of the jurisdiction in which it is incorporated or 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, and copyright content of its publications, whether registered with relevant governmental authorities or not.

Downline: Another term for Organization.

Enrollee: An Enrollee is an Wellness Advocate who was enrolled by an Enroller.

Enroller: Enroller is a Wellness Advocate who has enrolled an Enrollee. It 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 Organization. An Enroller can also be the Sponsor (compare, Sponsor).

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 whereby a Wellness Advocate 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.

Organization: The group of Wellness Advocates and Customers sponsored in a Wellness Advocate’s direct and subsequent downline chain of sponsorship.

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 month.

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 dōTERRA's home country including the Food and Drug Administration and Federal Trade Commission and by the laws and similar governmental agencies in the jurisdiction of the Wellness Advocate including the National Consumer Commission and CTFA compendium.

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. No Personal Volume or Organizational 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's 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 Organization (compare, Enroller).

Wellness Advocate or WA: A Person who is an independent contractor authorized by the Company to purchase and retail products, recruit other Wellness Advocates, and receive Bonuses 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 jointly has all the Wellness Advocate rights and each Person jointly and severally has the Wellness Advocate obligations.

Wellness Advocate Agreement: The completed application, whether in printed or electronic form, to become a Wellness Advocate with accompanying terms & conditions 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 or otherwise participate in the dōTERRA Compensation Plan. A Wholesale Customer, however, may earn volume discounts on products through dōTERRA’s Loyalty Rewards Program.

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