Section 9: Placements Policy, Line Switching, and Cross and Moving Prohibition

A. Initial Placement.  At the time when a new Wellness Advocate is enrolled, the Enroller of the new Wellness Advocate may place the new Wellness Advocate anywhere in the Enroller’s Organization.

B. Placement Changes Within Fourteen Days of Signup.  Within 14 calendar days of a new Wellness Advocate’s signup with the Company, the Enroller may move the new Wellness Advocate one time anywhere in the Enroller’s Organization (i.e. not outside the Enroller’s Organization), subject to the Company’s approval.

C. Placement Changes After Fourteen Days.  After the above described time period passes, a Wellness Advocate is in final placement and the Company will normally not approve requests to place Wellness Advocates elsewhere in an Organization.  

1. Placement changes are rare and must be specifically approved in writing by the Company’s Exceptions Committee. 

2. Before authorizing a placement change, the Company will consider, among other factors, the following: 

a. Whether the Wellness Advocate to be moved has not been Active for at least six months (twelve months if Silver Rank or higher), 

b. Whether the Wellness Advocate to be moved obtains written consent (verified by notarized signatures or other means) of the Enrollers who are three levels above the Wellness Advocate and the Sponsors who are seven levels above the Wellness Advocate,

c. Whether the change will cause Rank advancement, 

d. Whether a change of historical bonus payments will occur, 

e. Whether a Wellness Advocate has breached the Contract,

f. The effect of the change on the Organization, and

g. Any other relevant facts.

D. A qualified Presidential Diamond who personally enrolls a new Wellness Advocate that achieves the rank of Premier within three months of enrollment will be allowed to place the new Enrollee anywhere within the Enroller’s organization. This move can be made after the Enroller has filled out the Presidential Diamond Premier Move form even if a placement change had previously been made within 14 days of enrollment. For the purpose of calculating three months in this paragraph, month one is the calendar month that the Wellness Advocate is enrolled if enrolled on or before the 10th calendar day of the calendar month.  If the Wellness Advocate is enrolled after the 10th calendar day of the month then month one will be the following calendar month. 

E. Enrolling a Former Wholesale Customer as a Wellness Advocate.  A Wellness Advocate may enroll Wholesale Customers as Wellness Advocates.  When a Wholesale Customer becomes a Wellness Advocate, he ceases to be a Wholesale Customer.  If the Wholesale Customer was a Wholesale Customer for more than ninety days, his Enroller may place the former Wholesale Customer in any position within the Enroller’s Organization.  The placement of the Wholesale Customer must be completed within fourteen days of the date that a Wholesale Customer signs up to be a Wellness Advocate. 

F. Enrollership Reassignment.   The Company allows an Enroller to change enrollership of a Wellness Advocate (Enrollee).   The enrollership of an Enrollee, however, may not be changed more than twice.   Subject to Company approval, a second change may only occur if enrollership is changed to the Wellness Advocate who originally enrolled the Enrollee.

G. Cross-Company and Cross-Line Moving Prohibited.  

1. 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 Wellness Advocate or  Customer.

2. Cross-Line Moving.  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 Moving 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. 

3. Prohibition.  Wellness Advocates are prohibited from Cross-Company Recruiting or Cross-Line Moving.  The use of a spouse or relative’s name, trade names, DBAs, assumed names, Corporations, partnerships, trusts, federal ID numbers, or fictitious ID numbers to circumvent this policy is prohibited.  

4. Injunctive Relief Available to the Company. Wellness Advocates stipulate and agree that Cross-Company Recruiting and Cross-Line Moving constitute an unreasonable and unwarranted interference with the contractual relationship between the Company and its Distributors, and conversion of the Company’s property and misappropriation of the Company’s trade secrets.  Wellness Advocates further stipulate and agree that any violation of this rule will inflict immediate and irreparable harm on the Company, that the harm to the Company exceeds any benefit that the Wellness Advocate may derive, and that the Company 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 Contract.  Nothing herein waives any other rights and remedies the Company may have in relation to the use of its Confidential Information or any other violations of the Contract.  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 Contract.