Okla. Stat. tit. 21, § 21-1072: Definitions

As used in the Oklahoma Pyramid Promotional Scheme Act:

1. "Compensation" means payment of money, thing of value or

financial benefit. Compensation does not include:

a. payment to participants based upon sales of products

purchased for actual use and consumption, or

b. payment to participants under reasonable commercial

terms;

2. "Consideration" means the payment of cash or purchase of

goods, services or intangible property. Consideration does not

include:

a. purchase of products furnished at cost to be used in

making sales and not for resale,

b. purchase of products where the seller offers to

repurchase the participant's products under reasonable

commercial terms, or

c. participant's time and effort in pursuit of sales or

recruiting activities;

3. "Participant" means a person who contributes money into a

pyramid promotional scheme;

4. "Person" means an individual, a corporation, a partnership

or any association or unincorporated organization;

5. "Promote" means:

a. to contrive, prepare, establish, plan, operate or

advertise, or

b. to induce or attempt to induce other persons to be a

participant;

6. "Pyramid promotional scheme" means any plan or operation by

which a participant gives consideration for the opportunity to

receive compensation which is derived primarily from the person's

introduction of other persons into the plan or operation rather than

from the sale of goods, services or intangible property by the

participant or other persons introduced into the plan or operation;

and

7. "Reasonable commercial terms" includes repurchase by the

seller, at the participant's request and upon termination of the

business relationship or contract with the seller, of all

unencumbered products purchased by the participant from the seller

within the previous twelve (12) months which are unused and in

commercially resalable condition. Repurchase by the seller shall be

for not less than ninety percent (90%) of the actual amount paid by

the participant to the seller of the products, less any

consideration received by the participant for purchase of the

products being returned. A product shall not be deemed nonresalable

solely because the product is no longer marketed by the seller,

unless it is clearly disclosed to the participant at the time of

sale that the product is a seasonal, discontinued, or special

promotion product, and not subject to the repurchase obligation.