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Section 20. Successors and Claims

  • A. Binding Effects and Continuing Benefits. The Contract shall be binding upon and inure to the benefit of the parties hereto and their permitted successors and assigns.

     
    B. Transfer of a Distributorship Position. Except as otherwise noted in this Policy Manual a WA may dispose of, sell, transfer, or otherwise assign his or her Distributorship and rights under this Contract only with the prior written consent of the Company. Any assets that take the form of claims to compensation or satisfaction of contractual obligations, from or by the Company, will not be recognised as assets of the transferee on the records of the Company until the Company 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 Contract that may have arisen prior to the transfer.
     
    1. 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 organisationally. Further, unless expressly agreed to in writing by the Company, the Accounts Receivable balance, personal volume, LRP points, and enrolment date shall be retained by the former Distributorship.
    2. For purposes of signing up again as a WA, a gift, sale, transfer or assignment is 32 | Page dōTERRA New Zealand POLICY MANUAL 2017 treated as a termination with respect to the transferor. In other words, a WA 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 WA may not sell, convey, assign, or otherwise transfer any right conveyed by the Contract to any Person or entity without the express, prior written consent of the Company. A WA may delegate his or her responsibilities but is ultimately responsible for ensuring compliance with the Contract and applicable laws. Any Person working with or for the WA as part of his or her Distributorship will do so only under the WA’s direct supervision.
     
     
    C. Distributorship Succession. In the event that a WA (being an individual) dies or becomes incapacitated, this Contract will terminate
     
    D. Co-applicants. Distributorships run by more than one person (ie, where the WAs are coapplicants) must continue to be operated by both co-applicants. The Company shall be entitled to terminate this Contract in the event that the Company believes (in its sole discretion) that co-applicants are failing to to work co-operatively.
     
    E. Under no circumstances will a Distributorship be divided. Similarly, under no circumstances will the Company split Bonus cheques betweenco-applicants or WAs. The Company will recognise only one Distributorship and will issue only one bonus cheque per Distributorship per commission cycle. Cheques shall always be issued to the same individual or entity. Waiting Period to Sign Up Again. If a former WA has completely relinquished all rights in their original Distributorship, they are thereafter free to enrol under any sponsor of their choosing, so long as they meet the waiting period requirements set forth in Section 18.B.2. In such case, however, the former WA shall have no rights to any WA’s in their former organisation or to any former customers or PMs. They must develop the new business in the same manner, as would any other new WA

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