Section 17: Successors and Claims

Binding Effects and Continuing Benefits

The Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

Transfer of a Distributorship Position

Except as otherwise noted in this P&P a Wellness Advocate may dispose of, sell, transfer, or otherwise assign his or her Distributorship assets in any manner allowed by the Agreement and applicable law (including sale, gift, or bequest) with the prior written consent of dōTERRA. Any assets that take the form of claims to compensation or satisfaction of contractual obligations, from or by dōTERRA, will not be recognized as assets of the transferee on the records of dōTERRA until dōTERRA has received written notification of the transfer and has given its formal written approval. The Distributorship transferred is subject to all remedial measures under the Agreement that may have arisen prior to the transfer.

Upon a gift, sale, transfer, assignment, or other disposition of a Distributorship, a new Distributorship is created. Notwithstanding the fact that a new Distributorship is created, the new Distributorship shall take the place of the former Distributorship organizationally. Further, unless expressly agreed to in writing by dōTERRA, the Accounts Receivable balance, personal volume, Loyalty Reward Program (LRP) points, and enrollment date shall be retained by the former Distributorship.

For purposes of signing up again as a Wellness Advocate, a gift, sale, transfer, or assignment is treated as a termination with respect to the transferor. In other words, a Wellness Advocate who gifts, sells, conveys, or otherwise transfers his or her Distributorship must wait six months (if Premier rank or lower) or twelve months (if Silver rank or higher) from the official termination date (or the date of the last product purchase, if earlier than the termination or transfer date) to sign up again. A Wellness Advocate may not sell, convey, assign, or otherwise transfer any right conveyed by the Agreement to any Person or entity without the express, prior written consent of dōTERRA. A Wellness Advocate may delegate his or her responsibilities but is ultimately responsible for ensuring compliance with the Agreement and applicable laws. Any Person working with or for the Wellness Advocate as part of his or her Distributorship will do so only under the Wellness Advocate's direct supervision.

Distributorship Succession

In the event that a Wellness Advocate dies or becomes incapacitated, that Wellness Advocate’s organization will pass to the Wellness Advocate’s legal successors under the appropriate laws. Successors should promptly notify dōTERRA in writing of such an event and provide the proper documentation.

Operation of the Distributorship During Succession

During the pendency of a divorce or entity dissolution, the parties must adopt one of the following methods of operation:

• One of the parties may, with consent of the other(s), operate the Distributorship pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners, or trustees authorize dōTERRA to deal directly and solely with the other spouse or non-relinquishing shareholder, partner, or trustee.
• The parties may continue to operate the Distributorship jointly on a “business-as-usual” basis, whereupon all compensation paid by dōTERRA will be paid in the joint names of the Wellness Advocates or in the name of the entity to be divided as the parties may independently agree between themselves.

Distributorships Are Indivisible

Under no circumstances will the Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will dōTERRA split Bonus cheques between divorcing spouses or Wellness Advocates of dissolving entities. dōTERRA will recognize only one Organization and will issue only one bonus cheque per Distributorship per commission cycle. Cheques shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of bonuses and the ownership of the business, the Wellness Advocate may be involuntarily canceled.

Court Proceedings

Wellness Advocates involved in court proceedings over the ownership or the management of a Distributorship are under obligation to inform the Court that the Distributorship is indivisible, and that dōTERRA will not divide an Organization or bonus cheques. The final order must expressly assign ownership of the Distributorship.

Waiting Period to Sign Up Again

If a former spouse or a former entity Wellness Advocate has completely relinquished all rights in their original Distributorship, they are thereafter free to enroll under any sponsor of their choosing, so long as they wait six months (if Premier rank or lower) or twelve months (if Silver rank or higher) from the official date of relinquishing their interest (or the date of the last product purchase, if earlier than the relinquishing date) to sign up again. In such case, however, the former spouse or partner shall have no rights to any Wellness Advocates in their former organization or to any former customers. They must develop the new business in the same manner, as would any other new Wellness Advocate.