Territorial & Authority Rules

This Policy defines how territories are assigned, claimed, logged, and protected within the Nexthor Partner Network. It establishes the rules that prevent territory conflicts between Pilots and ensures that commissions are attributed fairly based on documented activity.

This Policy applies to:

• Pilots — who are assigned territories and are subject to territorial rules and logging obligations.
• Scouts — who operate without territorial restrictions, as described in Section 7.

Installer Club members (studios) are not subject to this Policy. Studios are the subject of territorial activity, not its operators.

A territory is a geographic area assigned to an Active Pilot by Nexthor PPF. Territories are defined exclusively by Nexthor PPF and recorded in Nexthor's internal territory management system. A Pilot has no right to self-assign, expand, or redefine their territory.

How territories are defined

Nexthor PPF defines territories based on operational and market considerations, which may include city, district, region, or country boundaries. The exact boundaries of a Pilot's territory are communicated to the Pilot in writing at the time of assignment and recorded in Nexthor's internal systems.

Nexthor's authority over territories

Territory assignment is a privilege granted at Nexthor PPF's sole discretion. Nexthor PPF reserves the right at any time and without compensation to:

• Assign a territory to a Pilot
• Modify, split, merge, or reduce an assigned territory
• Withdraw a territory entirely
• Assign overlapping territories to multiple Pilots where Nexthor PPF determines this serves the network's interests

A Pilot does not acquire any proprietary right or entitlement over a territory by virtue of its assignment. Territory assignment does not guarantee exclusivity unless Nexthor PPF explicitly confirms exclusivity in writing for that territory.

Nexthor PPF maintains the Pilot Activity Log — an internal system that records all Pilot field activity. The Pilot Activity Log is the authoritative source for determining which Pilot has claim to a studio or prospect and for resolving any territorial disputes.

What the Pilot Activity Log records

For each field visit or studio contact, the Pilot Activity Log records:

• Date and time of the contact or visit
• Studio name, location, and contact person
• Nature of the contact (cold visit, arranged meeting, phone call, follow-up)
• Whether a product sample was provided
• Whether a Starter Pack was discussed or offered
• Outcome of the contact and follow-up actions required
• Next scheduled contact date, if agreed
• Any other relevant notes logged by the Pilot or Nexthor PPF

Pilot obligation to log activity

Pilots are required to log all studio contacts and field visits in the Pilot Activity Log promptly — and in any case within 48 hours of the contact occurring. A studio visit or contact that is not logged is not protected. Nexthor PPF will not recognize an unlogged claim to a studio in the event of a territorial dispute.

Access

The Pilot Activity Log is maintained and controlled by Nexthor PPF. Pilots have access to their own entries. Scouts do not have access to the Pilot Activity Log. Nexthor PPF may audit, correct, or annotate any entry at its discretion.

A Pilot establishes a claim to a studio or prospect by logging the first documented contact in the Pilot Activity Log. The following rules apply:

First logged contact wins

If two Pilots are active in overlapping or adjacent territories, the studio or prospect belongs to the Pilot who first logged a documented contact with that studio in the Pilot Activity Log. The date and time of the log entry is the determining factor — not the date of any verbal claim or informal communication.

Active claim maintenance

A logged claim to a studio does not remain protected indefinitely. A claim lapses if:

• No follow-up contact or log entry is made within 90 days of the last logged contact, AND
• The studio has not yet signed a Partner Agreement with Nexthor PPF.

Once a claim lapses, the studio becomes available for any Pilot to claim. Nexthor PPF may also proactively reassign a lapsed studio to another Pilot.

Signed studios

Once a studio signs a Nexthor Installer Club Agreement, it is permanently linked to the Pilot who closed the deal. The claim cannot be challenged after signing, regardless of any subsequent territorial changes.

A Pilot who contacts, visits, or attempts to close a studio outside their assigned territory is acting outside the scope of their Pilot Agreement. The following consequences apply:

Nexthor PPF's discretion

Nexthor PPF has full discretion to determine how out-of-territory activity is handled on a case-by-case basis. Possible outcomes include:

• The commission on any resulting sale is reduced, withheld, or reallocated to the Pilot assigned to that territory.
• The studio is transferred to the correct territory Pilot without commission payable to the out-of-territory Pilot.
• In cases where no Pilot is assigned to the territory, Nexthor PPF may at its discretion award the commission to the out-of-territory Pilot or retain it internally.

No entitlement from out-of-territory activity

A Pilot has no entitlement to a commission, claim, or network position arising from activity outside their assigned territory, unless Nexthor PPF has given prior written authorization for that activity. The absence of a formal complaint from another Pilot does not constitute authorization.

Repeated violations

Repeated out-of-territory activity without authorization is a violation of the Pilot Agreement and this Policy, and may result in disciplinary action under the Conflict Resolution & Enforcement Policy, up to and including termination.

Nexthor PPF may at any time identify, contact, or develop studio leads independently of its Pilots. When Nexthor PPF assigns such a lead to a Pilot for closing or management:

• The lead is logged in the Pilot Activity Log by Nexthor PPF with the assignment date and details.
• The assigned Pilot earns at Level 2 commission rate (€30/roll) as defined in the Compensation Plan — not at Level 1 — because Nexthor PPF occupies Level 1 having originated the lead.
• The assigned Pilot's territory claim over the studio is established from the date of assignment.

Nexthor PPF may also operate in any territory at any time for the purpose of market development, brand promotion, or direct sales without obligation to involve or compensate the local Pilot, unless a specific arrangement is agreed in writing.

Scouts are not subject to territorial restrictions. A Scout may introduce contacts from any location — domestically or internationally — without restriction. Scouts do not have access to the Pilot Activity Log and do not participate in territory assignments.

A Scout cannot independently sign or formally onboard a studio. All introductions made by a Scout are submitted to Nexthor (by email, phone, or any other channel provided). Nexthor then determines how to proceed — whether to assign a Pilot, handle the introduction directly, or take another approach.

How commission levels are determined

The Level 1 position belongs to whoever originated and submitted the lead to Nexthor. The Level 2 position belongs to whoever was assigned by Nexthor to close or manage the studio relationship. This principle applies consistently across all introduction types:

Scenario A — Scout submits lead, Pilot is assigned to close

A Scout identifies a studio, contacts Nexthor, and Nexthor assigns a Pilot to attend the meeting and close the deal.

• Scout: Level 1 — the Scout originated the lead and submitted it to Nexthor.
• Pilot: Level 2 — the Pilot was assigned by Nexthor to close and manage the relationship. This mirrors the Nexthor-assigned lead logic in Section 6.

Scenario B — Scout submits lead, Nexthor closes without a Pilot

A Scout submits a lead and Nexthor handles the closing directly without involving a Pilot.

• Scout: Level 1 — the Scout originated the lead.
• Nexthor retains Level 2 internally — no Pilot is involved, no Level 2 commission is paid out.

Scenario C — Scout submits lead for a studio already logged by a Pilot

A Scout submits a studio that a Pilot has previously logged as an active claim in the Pilot Activity Log.

• Pilot's claim prevails in accordance with the first-logged-contact rule in Section 4.
• Scout is not entitled to a Level 1 commission on that studio.
• Nexthor may, at its sole discretion, recognize the Scout's effort with a one-time goodwill payment, but is not obligated to do so. Such a payment does not establish ongoing commission entitlement.

No double payment

Under no circumstances does Nexthor pay both a full Level 1 Scout commission and a full Level 1 Pilot commission on the same studio. The framework above allocates the Level 1 position to whoever originated and submitted the lead, and the Level 2 position to whoever was assigned to close it.

If two Pilots believe they have a valid claim to the same studio or prospect, the following process applies:

1. Either Pilot may raise the dispute by contacting Nexthor PPF at info@nexthorppf.com within 14 days of becoming aware of the conflict.
2. Nexthor PPF will review the Pilot Activity Log entries for both Pilots in relation to the disputed studio.
3. Nexthor PPF will issue a written decision within 10 business days of receiving the dispute.
4. The Pilot Activity Log is the primary evidence. Verbal claims, informal messages, and undocumented contacts will not be considered.
5. Nexthor PPF's decision is final. There is no appeal process beyond this internal review.

Pilots who deliberately manipulate, falsify, or backdate entries in the Pilot Activity Log to support a territorial claim are in serious breach of the Code of Conduct and Pilot Agreement, and are subject to immediate termination.

Nexthor PPF reserves the right to modify this Policy at any time, including changes to territory assignment procedures, logging requirements, claim lapse periods, and dispute resolution timelines. Material changes will be communicated to active Pilots at least 30 days before taking effect. Continued participation in the Nexthor Partner Network after any update constitutes acceptance of the updated Policy.