Activity & Lifecycle Policy

This Policy governs how partner accounts, ranks, territories, and commissions are managed over time — including what happens during periods of inactivity, how accounts are closed, and what consequences apply when a partner's status changes. It applies to all three partner types in the Nexthor network:

• Installer Club members — PPF installation studios
• Pilots — active sales representatives with assigned territories
• Scouts — referral partners with no territorial or activity obligations

This Policy works together with the Compensation Plan, Code of Conduct, and Conflict Resolution & Enforcement Policy. Where this Policy conflicts with a Partner Agreement, the Partner Agreement prevails for that partner.

Installer Club membership ranks are based on cumulative PPF roll purchases. Ranks are earned progressively and carry cashback and pricing benefits as defined in the Installer Club & Rewards Policy.

Rank freeze on inactivity

If an Installer Club member does not place any PPF order for a continuous period of 12 months, their rank is automatically frozen. A frozen rank:

• Does not decrease immediately.
• Does not increase until a new PPF order is placed.
• Nexthor PPF will send a written notification (email to the registered address) when a rank is frozen, and will make reasonable efforts to re-engage the studio by phone.

Rank reduction

Nexthor PPF reserves the right to reduce a frozen rank by one level if no PPF order is placed within 12 months of the freeze date. Before exercising this right, Nexthor PPF will send at least one written warning email to the studio's registered address, noting that rank reduction may follow if no order is placed.

Rank reduction is a right, not an obligation. Nexthor PPF may exercise or waive it at its discretion depending on the studio's circumstances.

Rank restoration

When a previously inactive studio places a new PPF order, their rank is restored to the level held at the time of freeze. Purchases made after restoration count toward rank progression as normal. Nexthor PPF may, at its sole discretion, restore a reduced rank as a goodwill gesture when re-engaging a studio.

Account closure

Installer Club accounts are not closed solely due to inactivity. Accounts may be closed under the grounds listed in Section 6 of this Policy.

A Pilot in Active status holds a territory assignment and earns commissions at all three levels (Level 1: €100/roll, Level 2: €30/roll, Level 3: €15/roll) as defined in the Compensation Plan.

Activity requirement

To maintain Active status, a Pilot must demonstrate qualifying activity at least once per rolling 12-month period. Qualifying activity includes any one of the following:

• Independently closing and signing a new studio to the Nexthor Partner Network
• Attending a Nexthor-assigned studio visit or sales meeting
• Submitting three or more qualifying visit reports documenting prospecting or market development activity
• Any other activity expressly confirmed in writing by Nexthor PPF as satisfying the requirement for that period

Warning before status change

Before changing a Pilot's status due to inactivity, Nexthor PPF will make reasonable efforts to notify the Pilot. Notification is not a legal prerequisite for exercising Nexthor's rights under this Policy, but Nexthor will generally attempt contact via email and phone before acting.

Inactivity — Level 2 and Level 3 suspension

If a Pilot fails to meet any activity criterion within a 12-month period, Nexthor PPF reserves the right — at its sole discretion — to suspend the Pilot's Level 2 and Level 3 commission entitlements. The Pilot retains Level 1 commissions (from studios they directly signed) indefinitely, without any activity requirement. Level 2 and Level 3 commissions from downstream network activity are suspended until the Pilot either resumes qualifying activity or is formally transitioned to Passive status.

Passive Pilot status

A Pilot transitions to Passive status either voluntarily (written request to Nexthor PPF) or by Nexthor PPF's decision following inactivity. In Passive status:

• The Pilot earns Level 1 commissions only, from their directly signed studios, for life.
• The Pilot may not actively prospect, recruit, or represent Nexthor PPF in the territory.
• The Pilot is not eligible for territory assignments or Nexthor-assigned leads.
• Return to Active status requires Nexthor PPF's express written consent and is decided case by case.

What happens to the Pilot's network

When a Pilot becomes Passive or their account is closed, their downstream network (studios and partners below them) continues to operate normally. Their own commission entitlements change as described above, but the studios and partners they introduced to Nexthor are not removed from the network. The departing Pilot's position in the commission chain is handled as follows:

• Studios directly signed by the Pilot remain linked to the Pilot for Level 1 commission purposes (if the Pilot retains Level 1 rights).
• The Pilot's upline partner continues to earn their Level 2 and Level 3 commissions from the Pilot's downline as if the Pilot were still in place — the chain is preserved. Nexthor PPF steps into the Pilot's position only for commission routing purposes where the Pilot has forfeited all entitlements.

Scouts have no activity requirements. A Scout who introduces a studio or partner to Nexthor earns commissions from their network for life, without any obligation to maintain contact, submit reports, or demonstrate ongoing activity.

Scout account status

Scout accounts remain active indefinitely unless closed under the grounds set out in Section 6. Inactivity alone is never a reason to reduce, suspend, or terminate a Scout's commission entitlements.

Commission adjustment — special pricing

Scout commissions at the standard fixed rates (€100/€30/€15 per roll) apply only for as long as studios in the Scout's network purchase PPF at the standard published partner price. Where a studio transitions to special pricing (below standard partner price), the Scout's commission on that studio's orders is adjusted to a percentage rate as set out in the Compensation Plan, Section 5.

Nexthor PPF reserves the right to adjust a Scout's commission to a percentage-based rate without the Scout's prior consent in the following circumstances:

• A studio in the Scout's network transitions to special pricing arranged with Nexthor PPF, or
• The Scout is unreachable — defined as: Nexthor PPF has attempted to contact the Scout at least twice by email to the registered address AND twice by phone to the registered number within a 30-day period, with no response of any kind.

In both cases, Nexthor PPF will send written notice of the new percentage rate to the Scout's registered email address. The change takes effect 14 days after the notice is sent, regardless of whether the Scout acknowledges or confirms receipt. The Scout will be informed of the reason for the adjustment and the applicable percentage in the notice.

Nexthor PPF reserves the right to adjust any partner's commission from a fixed per-roll rate to a percentage-based rate, without requiring the partner's prior agreement, in the following defined circumstances:

1. Special pricing transition: A studio in the partner's network negotiates a price below the standard published partner price with Nexthor PPF.
2. Partner unreachable: Nexthor PPF has attempted to contact the partner at least twice by email to the registered address AND twice by phone to the registered number within a 30-day period, with no response.

In all cases, Nexthor PPF will:

• Send written notice of the adjustment to the partner's registered email address.
• State the new percentage rate and the reason for the adjustment in the notice.
• Apply the change 14 days after the notice is sent.

This right protects the commercial viability of Nexthor's business when studios require competitive pricing and when partners are unreachable and therefore unable to participate in the renegotiation process. Partners who believe an adjustment was applied incorrectly may raise a dispute under the Conflict Resolution & Enforcement Policy within 30 days of the notice date.

Nexthor PPF may suspend or terminate any partner's account — whether Installer Club member, Pilot, or Scout — for any of the following reasons. This list is illustrative and not exhaustive; Nexthor PPF reserves the right to terminate any partnership where continued participation would be harmful to Nexthor, its partners, or its customers.

Grounds for immediate termination (no notice required)

• Fraud or dishonesty — including falsification of leads, sales records, invoices, or any documents submitted to Nexthor PPF
• Criminal conduct — any criminal act related to the partner's business activities, whether or not resulting in prosecution
• Bribery or corruption — offering, accepting, or facilitating any improper payment in connection with Nexthor business
• Serious GDPR or data breach — unauthorized disclosure, sale, or misuse of customer or partner personal data
• Deliberate brand damage — public statements, reviews, or campaigns designed to harm Nexthor's reputation, products, or partners
• Cross-recruiting — actively soliciting Nexthor partners to leave the network and join a competing program
• Active competition — working directly for or with a competing PPF supplier in a way that materially conflicts with the partner's Nexthor obligations
• Harassment or discrimination — serious harassment, bullying, or discriminatory conduct toward any customer, studio, or fellow partner
• Misrepresentation of authority — falsely claiming to represent Nexthor PPF, entering into commitments on Nexthor's behalf without authorization, or misrepresenting rank or territory
• Failure to maintain business registration — loss of živnosť or IČO without prompt remediation, resulting in inability to issue valid invoices

Grounds for termination with 14 days notice

• Repeated or persistent violation of the Code of Conduct after written warning
• Failure to comply with Nexthor policies after a formal warning has been issued
• Conduct that is damaging to Nexthor's relationships with studios or partners, even if not immediately serious
• Any other reason at Nexthor PPF's discretion where continued participation is considered incompatible with the Nexthor Partner Framework

Effect of termination on commissions

Upon termination for any ground listed above:

• Pending commissions (within the 60-day clawback window, not yet final) are forfeited.
• Final commissions (60-day clawback window passed, no fraud or breach involved) are paid in the normal course. Nexthor PPF will not withhold final commissions as a penalty for termination alone.
• Where termination is for fraud or falsification of sales, Nexthor PPF reserves the right to reverse all commissions connected to the fraudulent activity regardless of their status.

Partners may resign from the Nexthor Partner Network at any time by submitting written notice to partners@nexthorppf.com.

Notice periods

• Installer Club members: No notice period required. Membership ends when the studio notifies Nexthor or stops ordering.
• Pilots: 14 days written notice. During the notice period, the Pilot is expected to hand over active leads, introduce pending prospects to Nexthor, and cooperate with the transition. Territory is reassigned at Nexthor's discretion after the notice period ends.
• Scouts: No notice period required. Scout account closes when requested.

Commissions after resignation

A voluntarily resigning partner retains any commissions that have reached final status (60-day clawback window passed) at the date of resignation. Pending commissions continue through the clawback window and are paid if no refund or chargeback occurs. Level 1 commissions earned by a Pilot from their directly signed studios continue to be paid after resignation if no termination-for-cause applies, for as long as those studios remain active — unless the Pilot Agreement specifies otherwise.

Territories are assigned to Active Pilots at Nexthor PPF's sole discretion. Territory assignment is a privilege, not a guaranteed right. Nexthor PPF reserves the right to assign, modify, split, merge, or withdraw any territory at any time, without compensation, for any reason including but not limited to:

• Pilot inactivity or transition to Passive status
• Network restructuring or business development needs
• Pilot resignation or termination
• Strategic reallocation to improve market coverage

Reactivation after Passive status

A Pilot who has been in Passive status and wishes to return to Active status must submit a written request to Nexthor PPF. Reactivation is not automatic. Nexthor PPF will assess each request case by case, considering current territory availability, the Pilot's history, and network needs. If the Pilot's original territory has been assigned to another Pilot, there is no right to reclaim it. Nexthor PPF may offer an alternative territory, a modified arrangement, or decline reactivation.

When a partner account is closed — whether by resignation, termination, or Nexthor's decision — the following data handling rules apply:

Financial records

Nexthor PPF is required under Slovak law to retain accounting and financial records (including invoices and commission payments) for a minimum of 10 years from the date of the transaction. Partner personal data included in financial records is retained for this period and cannot be deleted early on the basis of a GDPR erasure request where retention is legally required.

Other personal data

Personal data not required for accounting purposes (such as contact details, activity history, visit reports) will be anonymised or deleted within 90 days of account closure, unless the partner has consented to longer retention or Nexthor PPF has a legitimate interest in retaining it (for example, in cases of suspected fraud or ongoing disputes).

Network data

Information about studios and partners introduced by the closed account is retained as part of Nexthor's business records. The fact of the introduction is recorded for commission tracking purposes but the closed partner's personal details are removed from active systems after the 90-day period.

Nexthor PPF may update this Policy at any time. Material changes — defined as changes that reduce partner commission entitlements, shorten notice periods, or introduce new grounds for termination — will be communicated to all active partners at least 30 days before taking effect by email to their registered address.

Non-material changes (clarifications, typographical corrections, or additions that do not reduce partner rights) may be made without advance notice.

Continued participation in the Nexthor Partner Network after the effective date of any update constitutes acceptance of the updated Policy.