Inter-Office Memorandum

IOM # 201905
To : All BCOS/MS Date : Feb. 14, 2019
From : LNG Management CC :
Subject : Review Company Policy, Procedures for New Applicants
of MS and BCO and Minimum Purchase Order
Requirement for Lean n Green Coffee

1. Existing MS and BCO:

1.1. To protect your safety and interests, please review company policies on the subject
(attached);
LEAN N GREEN TRADING CORPORATION
General Policy and Guideline

Distributor qualifications

1. Must at least be 18 years old

2. Must be of good moral character

Basic requirements for Distributors/Members

Must undergo training on:

1. Familiarization of LEAN N GREEN TRADING CORPORATION’s policies, system and operations

2. Product knowledge - Lean n Green Products
3. Compensation package, incentives, promos, car incentives and profit sharing

Basic Policy and Guideline

1. Members, Distributors and Sales Leaders are strictly prohibited from getting involved with
competing organizations and companies whose products, business operations and interests are
in conflict with LEAN N GREEN TRADING CORPORATION. Recruitment inside the umbrella of or
recruiting the members of LEAN N GREEN to these companies/organizations, in particular, to
network or MLM is a gross violation of company policy and ethics and will be subject to
termination of account;

2. Distributors are allowed to maintain only one (1) account per name or company;

3. Dummy or fictitious accounts are prohibited to avoid manipulation and deceitful acts.
 4. Red Flagged Accounts

4.1. List of names must be submitted to Accounting Department for holding of payouts
(manual as of now);

4.2. All recent Unlocked Accounts from being Red Flagged will still be able to earn from
their entire group’s encoded packages;

4.3. All Red Flagged Accounts and recently unlocked account encashment will not be approved
until they fill their lines with the minimum of 10% of the total no. of slots encoded on their Pro
Leg. Notwithstanding the 10% compliance, these accounts will still continue to be monitored to
ensure that these are not dummy accounts;

4.4. 10% of total organization will be based on current big line;

4.5. The Kamada System (illegal manipulation of system) is strictly prohibited. Please refer to
official diagram of Lean n Green system for proper guidance and understanding

5. Using LEAN N GREEN’s resources and facilities such as meeting and conference rooms,
equipment, etc., except for LEAN N GREEN-sanctioned and related events and activities,
is strictly prohibited;
6. Repacking of Lean n Green products is also prohibited;

7. Purchase of every new products introduced by LEAN N GREEN is mandatory for all distributors
and members to keep them entitled to point value system benefits, payouts and incentives;

8. Management reserves the right to terminate accounts that are on hold and have been inactive
for 60 days without prior notice.

Downline and Upline Policy

1. Members, Distributors must manage their own downline under his network;
2. Crosslining is strictly prohibited;
3. Transferring of downline to other line is not allowed;
5. Everyone, regardless of their position in the company, including Members and Distributors must
strictly observe the Code of Ethics and Standard of LEAN N GREEN. Violation will lead to
suspension, termination of accounts, membership, privileges and commissions will be
automatically transferred to the company's accounts and rights;
6. All Distributors and Members are not allowed to use the company name to their advantage.
Any business transaction that misrepresents or is damaging to LEAN N GREEN is prohibited;
7. Use of company resources for personal interest and gains or anything that will damage and
jeopardize the business structure of LEAN N GREEN is prohibited;
8. All entries and payments that have come into the system of LEAN N GREEN shall be
considered as sales and are non-refundable;
9. Products received by Distributors and buyers in good condition are not refundable;
10. Distributors and resellers are prohibited from offering or selling Lean n Green products at
reduced prices or prices lower that what is in the official price list. Jacking up prices – adding
 mark-ups on top of official listed prices – to avoid black market competition. Not only is these
two practices unfair to our consumers, it is also detrimental to the overall structure of LEAN
N GREEN. Anyone caught violating this policy will lead to termination of his account.

11. Independent Marketing and Promotion

11.1. All Lean n Green products will not be allowed to be displayed in e-commerce platforms
such as Lazada and Shopee to avoid price war;

11.2. All members/distributors/BCOs/resellers who are caught in violation of this policy (11.1)
will be automatically terminated and penalized of not less than Php500,000;

11.3 Management reserves the right to publish and post in any or all media the names of any
members/distributors/BCOs/resellers who have been terminated for a cause to warn the
public that said members/distributors/BCOs/resellers are no longer connected with Lean n

Green Trading Corporation, and, that any transaction or business entered with them will not
be honored by Lean n Green Trading Corporation;

11.4. All members/distributors/BCOs/resellers are not allowed to display/advertise/promote

and sell all Lean n Green products below the SRP;

11.5. All members/distributors/BCOs/resellers are not allowed to conduct promos that will
cause underpricing as a whole. Example, “buy 2 plus 1 for free.”

11.6. No Lean n Green products will be allowed to be included as freebie, a “come-on”, a gift,
a give-away, or as a sample, especially as marketing or promotion tool to be handed out as
advertising or as a way of attracting support for or interest in something. Example, “buy brand
X and get Lean n Green Coffee,” or, “get Lean n Green Coffee when you buy brand x.”

Termination of Accounts

Warning will no longer be served to anyone caught violating any provision of this General Policy and
Guideline. If proven, accounts will be automatically terminated.

Production and Publication of Content in Social Media

Publishing content that purports to promote and advertise Lean n Green in any media using materials
such as photos without the express consent of the owner is strictly prohibited as it destroys the image of
Lean n Green. Not only is it against the law, it is also a violation of the human right to privacy.

Distributors, officers and employees are strictly warned to refrain from such unethical practices and to
exercise caution and prudence when producing and publishing content, particularly in social media,
that might have unwarranted and negative effects in the future.
LEAN N GREEN reserves the right to change this policy and guideline without prior notice.

1.2. Print and sign hereof as proof that you have received this memo and that you are in
conformity with the policies and guidelines therein, then send it back (personally or by
LBC or any courier) to the Head Office within seven (7) working days from receipt of
this Memo;

1.3. All existing MS and BCOs who have yet to complete the requirements will be
temporarily put on hold. No orders will be processed until all requirements are
received by Head Office.

2. New Applicants for BCO and MS:

2.1. Must submit complete requirements such as:

a. completely filled-out Application Form

b. Valid ID

c. Conformity with Lean n Green’s policies and guidelines by submitting to Head

Office a signed (on every page) Company Policy and Guideline
d. Billing Statement

All documents must be filed and submitted to Head Office. A Lean n Green personnel
will review the application and will notify/contact applicant for interview. Depending
on result of evaluation, review and interview, Personnel will advise Applicant to
deposit or hand-over required payment. If payment is made via a bank deposit,
Applicant will be requested to send copy or image of the deposit slip through email.

If deposit is validated, Cashier will instruct delivery of products to Applicant within five
(5) to seven (7) working days. Should Applicant find it convenient, he/she may pick-up
the products. All these become part of proper turn-over of products to new BCOs and
MS.

Lean n Green will resume accepting and processing of new Applicants starting
February 15, 2019.

3. Effective March 1, 2019, the minimum orders for re-stocking of BCO and MS for the Lean
n Green Coffee will be 500 for BCO and, 200 for MS. Delivery fulfillment is 2-3 working
days. BCOs and MS are advised to maintain enough stocks to serve the needs of resellers
at all times.

Please be guided accordingly.

Thank you.
 ARGIENEL MAISOG CHRISTOPHER PUNTANAR
President/COO Chairman/CEO

File/
att: Company Policy, Procedures for New Applicants of MS and BCO

================================================================================

Received and reviewed by:

__________________________
(Name of BCO/MS)

__________________________
(Signature)

__________________________
(Address/Location of BCO/MS)

__________________________
(Date)