Section 16: Product Liability Claims

A. Company Defense of Claims. Subject to the limitations set forth in this provision, doTERRA shall defend Wellness Advocates from claims made by third-party customers alleging injury from use of a product, or injury due to a defective product. Wellness Advocates must promptly notify the Company in writing of any such claim, no later than ten (10) days from the date of the third party claimant’s letter alleging injury. Failure to so notify the Company shall alleviate any obligation of the Company respecting such claim. Wellness Advocates must allow the Company to assume the sole and absolute discretion respecting the defense of the claim, and use and choice of counsel as a condition to the Company’s obligation to defend them.

B. Exceptions to Indemnification of Wellness Advocate. The Company shall have no obligation to indemnify a Wellness Advocate if:

1. the Wellness Advocate has not complied with the Contract respecting obligations and limitations covering the distribution and/or sale of the products; or
2. the Wellness Advocate has repackaged, altered or misused the product, made claims or given instructions or recommendations respecting the use, safety, efficacy, benefits or results, which do not comply with the approved literature of the Company; or,
3. the Wellness Advocate settles or attempts to settle a claim without the Company’s written approval.