Section 16: Placement Policy Line Switching Cross Recruiting Prohibition

Initial Placement

When a new Wellness Advocate or Customer signs up, they will be placed on the first level of the Enroller.

Placement Changes After Signup

Member with No Downline Placement.

At any time prior to a new Wellness Advocate having a Downline, subject to the Company’s approval, the Enroller may move the new Wellness Advocate one time to a different Sponsor anywhere in the Enroller’s Organization and then placement is set.

Upon Reactivation of a member without a Downline and subject to the Company’s approval, the Enroller may move the Reactivated member as follows: i) if the member is on the Enroller’s frontline at the time of Reactivation, the Enroller may move the Reactivated member one time to a different Sponsor anywhere in the Enroller’s Organization, and then placement is set; or ii) if the member is not on the Enroller’s frontline at the time of Reactivation, the Enroller may move the Reactivated member one time to a different Sponsor anywhere in the Enroller’s Organization no later than the tenth (10th) day of the calendar month following Reactivation, and then placement is set.

The Enroller may move a new Wholesale Customer one time to a different Sponsor anywhere in the Enroller’s Organization and then placement is set.

Wellness Advocate with Downline Placement.

If a Downline is created under a new Wellness Advocate, the Enroller can move the new Wellness Advocate with Downline one time to a different Sponsor anywhere in the Enroller’s Organization no later than the tenth (10th) day of the calendar month following the creation of Downline, and then placement is set. If Enroller does not move new Wellness Advocate with Downline by tenth (10th) of the month then placement is set.

Final Placement.

Upon a new Wellness Advocate is in ’s final placement and, dōTERRA will normally not approve requests to place the new Wellness Advocates elsewhere in an Organization.

Further placement changes are rare and must be specifically approved in writing by dōTERRA’s exceptions committee. Before authorizing a placement change, dōTERRA will consider, among other factors, the following:

• Whether the Wellness Advocate to be moved has not been active for at least six months (twelve months if Silver Rank or higher),
• Whether the Wellness Advocate to be moved obtains written consent (verified by signatures or other means) of the enrolling Wellness Advocates who are three levels above the moving Wellness Advocate, and the sponsoring Wellness Advocates who are seven levels above the Wellness Advocate,
• Whether the change will cause Rank advancement,
• Whether a change of historical bonus payments will occur,
• Whether the moving Wellness Advocate has breached the Agreement,
• The effect of the change on the Organization, and
• Any other relevant facts.

Elite Move.

A Platinum rank or higher who personally enrolls a new Wellness Advocate who (i) attains the rank of Elite within three (3) months of enrollment or Reactivation, and (ii) during the same calendar month in which the Wellness Advocate qualifies for the rank of Elite both (A) personally generates at least 1,500 in sales volume and (B) holds enrollership of at least five (5) new members, shall be permitted to place such Enrollee anywhere within the Enroller’s Organization. The request must be submitted using the Elite Move form and received by the Company no later than the end of the calendar month in which the Wellness Advocate is first paid at the rank of Elite.

Enrolling a Former Wholesale Customer as a Wellness Advocate.

A Wholesale Customer may upgrade to a Wellness Advocate. Upon upgrade, they cease to be a Wholesale Customer. If the upgraded Wellness Advocate does not have an existing Organization and, after upgrading, personally enrolls a Wholesale Customer or Wellness Advocate with sales of at least 100 PV, the Enroller may place the upgraded Wellness Advocate in any position within the Enroller’s Organization no later than the tenth (10th) day of the calendar month following the month of the personal enrollment.

Enrollership Reassignment.

The Company allows an enrolling Wellness Advocate to change enrollership of a new Wellness Advocate once, subject to Company approval. Additional enrollership changes merited by extenuating circumstances may be applied for and are subject to Company exception committee approval.

Cross-Company and Cross-Line Recruiting Prohibited

Wellness Advocates are prohibited from Cross-Company Recruiting or Cross-Line Recruiting other Wellness Advocates, as those terms are defined below. The use of a spouse or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, or fictitious ID numbers to circumvent this policy is prohibited.

a. Cross-Company Recruiting: The actual or attempted solicitation, enrollment, encouragement, or effort to influence in any way, either directly or indirectly (including but not limited to, through a website), another dōTERRA Wellness Advocate or customer to enroll or participate in another network marketing opportunity. This conduct constitutes recruiting even if the actions of the Wellness Advocate are in response to an inquiry made by another Distributor or Customer.

b. Cross-Line Recruiting: The actual or attempted solicitation, enrollment, encouragement, or effort to influence in any way, either directly or indirectly (including but not limited to, through a website), the enrollment of an individual who, or entity that, already has a current Distributorship with dōTERRA, within a different line of sponsorship. Cross-Line recruiting also applies to the enrollment of an individual or entity that has had a Distributorship with dōTERRA within the past six months, or in the case of a Wellness Advocate with the rank of Silver or higher, within the past twelve months.

Injunctive Relief Available to dōTERRA

Wellness Advocates stipulate and agree that Cross-Company Recruiting and Cross-Line Recruiting constitute an unreasonable and unwarranted interference with the contractual relationship between dōTERRA and its Distributors, and conversion of dōTERRA’s property and misappropriation of dōTERRA’s trade secrets. Wellness Advocates further stipulate and agree that any violation of this rule will inflict immediate and irreparable harm on dōTERRA, that the harm to dōTERRA exceeds any benefit that the Wellness Advocate may derive, and that dōTERRA shall be entitled, in addition to any other remedies that may be available, to immediate, temporary, preliminary and permanent injunctive relief without bond, and that such injunctive relief may extend the post-termination period of this restriction for up to one (1) year from the date of the last violation of this provision. The provisions of this Section survive the termination of the Agreement. Nothing herein waives any other rights and remedies dōTERRA may have in relation to the use of its Confidential Information or any other violations of the Agreement. Further, Wellness Advocates agree that appearing in, being referenced in, or allowing their name or likeness to be featured or referenced in any promotional, recruiting, or solicitation materials for another direct selling company constitutes Cross-Company Recruiting during a period of one year after termination of the Agreement.