Section 2: Definitions

Active: A Wellness Advocate who is engaged in doTERRA business activity and has made a sale of doTERRA product(s) within a period of one year from the date of last sale or from the date of entering into the Contract.

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 “doTERRA,” unless otherwise specified, means doTERRA India Private Limited a company established in India (doTERRA India), and the company with whom the Wellness Advocate contracts for the purchase and promotion of doTERRA products within India and participation in and global support of the doTERRA Sales Compensation Plan; .

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

Contract: The agreements 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 organization legally formed under the laws of India.

Customer: The term “Customer” includes Preferred 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.

doTERRA Intellectual Property: doTERRA Intellectual Property means all intellectual property which doTERRA 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, and content of its publications, whether registered with relevant governmental authorities or not.

Downline: Another term for Organization.

Enrollee: A Wellness Advocate or Customer who was made part of the sales team Organization by an Enroller.

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

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

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

Organization: A sales team consisting of the group of Wellness Advocates sponsored in a Wellness Advocate’s direct and subsequent downline chain of sponsorship, with qualifying commission levels.

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

Policy Manual: Another term for Contract.

Preferred Customer: A Preferred Customer is a Person who purchases products at a discount. A Preferred Customer does not earn bonuses through the doTERRA Compensation Plan. A Preferred Customer, however, may earn volume discounts on products through doTERRA’s Loyalty Reward Program. Reactivation of a Preferred Customer occurs when a Preferred Customer who has not placed an order for twelve (12) consecutive months, places an order in the thirteenth (13th) month or thereafter.

Preferred Customer Agreement Form: The application consisting of terms and conditions governing Preferred customer.

Product Claims: Claims related to the efficacy or effect of doTERRA products. Product claims are regulated by federal, state, or local governments in which the Wellness Advocate does business, including the Food Safety and Standards Authority of India, 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 Organizational Volume is associated with the redemption of Product Credits (compare, Company Credit).

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.

Rewards Program: The Rewards Program (LRP) is a product ordering program wherein a Wellness Advocate or Preferred Customer can set up automatic monthly deliveries of doTERRA products, and which may qualify a Wellness Advocate to receive Product Credits and other benefits in the Sales Compensation Plan (see, Section 10.B.7).

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 training of Wellness Advocates, which makes reference to the Company, the Company products, the Sales Compensation Plan, or doTERRA Intellectual Property.

Sponsor: A Wellness Advocate who has another Wellness Advocate placed directly underneath him in his sales team Organization (compare, Enroller).

Wellness Advocate: A Person who is an independent contractor authorized by the Company to purchase and retail products to Customers, builds his sales team of 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 occurs when a Wellness Advocate who has neither placed an order nor earned commissions for twelve (12) consecutive months places an order in the thirteenth (13th) month or thereafter.

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.