Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 37

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 37
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 these individuals does not relieve us of our legal and regulatory responsibilities. Any failure by our employees and
participants of our mentor-mentee program to comply with applicable laws could lead to regulatory action, could damage our reputation
and could materially and adversely affect our business, financial condition and results of operations.

The sustainability of our mentor and mentee program relies on mentors and mentees’ strict compliance with, and our effective enforcement of, our written marketing manual governing the mentor and mentee’s rights and obligations, qualification, conducts, and other, as well as compliance with the relevant laws and regulations.

The mentor-mentee program is our sales and
marketing network that started with the involvement of our employees and gradually expanded over years with the participation of our
customers who are interested in developing knowledge in homeopathy and applying their interest and knowledge of homeopathy to the marketing
and sales of our products to earn sales commissions and to enjoy product discounts that are available to mentors and mentees. This implements
the several goals we intended to achieve through our mentor-mentee program, including without limitation, (i) educating consumers through
the mentor-mentee network to enhance market awareness of homeopathy and our homeopathic products as alternative treatment to the conventional
medicines with a focus on holistic physical and emotional therapy, (ii) providing a platform for customers with interest in homeopathy
to access more lecture and training resources, and potentially move forward with more formal homeopathy related education and license
programs, and (iii) on the base of (i) and (ii), plug our mentor and mentee network into our sales and marketing strategies to give mentors
and mentees an access to monetary compensation tied to their sales of products. As of the date of this prospectus, we have established
an extensive mentor and mentee network. We have set up mentor-mentee program-related code of conduct to regulate mentor and mentee conducts
and delineate their rights and obligations, setting for the mechanism on compliance supervision, including company supervision, mentor
supervision over mentee behavior and self-regulation subject to Company’s monitoring.However, if our supervision
and regulating measures are not effective as to unintentional misdemeanor or fraudulent misconducts by our mentors or mentees, the legitimacy
and sustainability of our mentor and mentee program will be challenged and our marketing strategies, business, financial conditions and
results of operations will be materially and adversely affected as well.

If the relevant laws and regulations regulating “Pyramid Scheme” become increasingly broad on