ANNEX I

📋 ANNEX I - AMBASSADOR PROGRAM TERMS AND CONDITIONS

Love Connector Ambassador Program - Quick Summary

📋 ONE-PAGE SUMMARY
Please read carefully before continuing. Full Terms follow this summary.

IMPORTANT: This summary is provided for convenience only. The full Terms below control and are legally binding.

🎯 WHAT IS THE LOVE CONNECTOR PROGRAM?

Love Connectors (Ambassadors) are elite users who earn commissions by referring brands (Love Partners) to Lovelike. This is a ONE-TIER referral program (not multi-level marketing).

Contract Term: 1 year (renews automatically if you stay active)

Important: You earn commissions ONLY from referring Love Partners (brands). Referring Love Creators (influencers) does NOT generate commissions.

💰 KEY FINANCIAL TERMS

What You Can Earn:

• 30% of Net Subscription Fees from referred Love Partners (brands)

• 9% of Net Campaign Value contracted by referred Love Partners

• Paid monthly via Stripe Connect (USD only)

What You CANNOT Earn Commissions On:

• ❌ Referring Love Creators (influencers)

• ❌ Any product sales or marketplace transactions

• ❌ Any transactions not from referred Love Partners

⚠️ IMPORTANT EARNINGS DISCLAIMER:

• ✅ NO GUARANTEED INCOME - This is a NEW program with no historical earnings data

• ✅ Results vary widely - Success requires significant time/effort

• ✅ Expenses may exceed earnings - Marketing costs can be substantial

• ✅ You're responsible for taxes - Quarterly estimated payments required

📊 Income Disclosure Statement (when available - estimated March 2027)

🤖 AI TRAINING PROGRAM REQUIREMENT

To make NEW referrals and earn commissions:

• ✅ You MUST participate in AIMÊ AI Training Program
• ✅ Gives you predictive analytics and better matching tools

If you opt-out of AI later:

• ✅ EXISTING referrals continue at 100% rate (grandfathered)
• ❌ NEW referrals are suspended until you reactivate AI Training (reactivation may take up to 48 hours to take effect).
• ✅ You keep your Love Connector title and dashboard

📅 WHAT HAPPENS IF YOU DON'T RENEW YOUR CONTRACT?

If your 1-year contract expires and you don't renew, commissions on existing referrals will taper gradually over 6 months:

Why tapering (not immediate loss)?

• ✅ Legal compliance (CA/NY labor laws protect earned commissions)
• ✅ Fair transition (you performed valuable work)
• ✅ You can reactivate and renew mid-tapering to restore 100% rate

To avoid tapering: Simply renew your contract when it expires (requires AI active).

⚖️ LEGAL REQUIREMENTS YOU MUST FOLLOW

1. FTC Disclosure (MANDATORY)

When sharing your referral link, you MUST disclose you earn commissions:

✅ CORRECT: "I'm a Lovelike Ambassador and earn commissions when you use my link. #ad #affiliate"

❌ WRONG: No disclosure, or "#partner" (too vague)

Penalty: FTC fines up to $50,120 per violation

2. Tax Obligations

• ✅ All commissions = taxable income
• ✅ You must pay quarterly estimated taxes
• ✅ You'll receive 1099-NEC form (if you earn $600+/year)
• ✅ Consult a tax professional before participating

3. Independent Contractor Status

• ✅ You're NOT an employee (no benefits, no guaranteed hours)
• ✅ You're responsible for all business expenses
• ✅ You can work for competing platforms simultaneously

🚫 WHAT THIS PROGRAM IS NOT

❌ NOT a pyramid scheme - One-tier only, commissions from actual sales
❌ NOT multi-level marketing (MLM) - No downlines or recruitment bonuses
❌ NOT passive income - Requires active marketing and effort
❌ NOT a "get-rich-quick" scheme - Most earn modest supplemental income
❌ NOT guaranteed earnings - No income promises or guarantees

📋 KEY REQUIREMENTS TO MAINTAIN STATUS

To keep earning commissions, you must maintain ALL of these continuously:

✅ Active underlying subscription (Love Partner or Love Creator)
✅ AI Training Program participation (for NEW referrals only)
✅ Good standing (no policy violations)
✅ Your referral code/link used at signup (server-side tracking only)

If any requirement fails:

• NEW referral capability suspended
• Grandfathered commissions continue (if subscription active)
• Warning notice sent before action

🔑 CRITICAL RULES

1. Code/Link Requirement

Your unique code or link MUST be used during signup. No exceptions.

• ❌ Offline conversations don't count
• ❌ Email without link doesn't count
• ✅ Only server-recorded code/link usage counts

2. Referred Users Cannot Become Ambassadors

Users you refer are permanently ineligible for Love Connector status.

• Prevents pyramid/downline structures
• Violating this = both accounts terminated + commissions clawed back

3. Self-Referrals Prohibited

Referring yourself or entities you control = fraud (immediate termination).

4. Only Love Partner Referrals Earn Commissions

• ✅ Referring Love Partners (brands) = Commissions
• ❌ Referring Love Creators (influencers) = NO commissions

📞 BEFORE YOU ACCEPT - ASK YOURSELF:

☐ Do I understand earnings are NOT guaranteed?
☐ Am I prepared for business expenses (potentially 100−100-100−500+/month)?
☐ Can I comply with FTC disclosure requirements when promoting?
☐ Am I comfortable with quarterly tax payments?
☐ Do I understand the AI Training Program requirement?
☐ Do I understand tapering if I don't renew my contract?
☐ Do I understand I earn commissions ONLY from referring Love Partners (brands)?
☐ Have I read (or will I read) the complete Terms below?
☐ Will I consult (or have I consulted) a tax advisor before participating?

If you answered NO to any question above, please reconsider or seek professional advice before accepting.

📚 NEXT STEPS

1. ⬇️ SCROLL DOWN to read the complete Terms

⚠️ IMPORTANT LEGAL NOTICES

Arbitration & Class Action Waiver

By accepting Love Connector status, you agree to:

• ✅ Resolve disputes through binding arbitration (JAMS, Delaware)
• ✅ NO lawsuits or jury trials
• ✅ NO class actions (individual claims only)

Limitation of Liability

Lovelike's maximum liability to you is limited to:

• $500 (or fees paid in 12 months, whichever is greater)

Disclaimer of Warranties

The Ambassador Program is provided "AS IS" with:

• ❌ NO warranties on earnings potential
• ❌ NO guarantees on referral success
• ❌ NO promises on program continuity

🔐 YOUR DATA & PRIVACY

AI Training Program Data Usage

By participating in AI Training, you consent to Lovelike using your:

• ✅ Platform activity data (anonymized)
• ✅ Referral patterns and performance metrics
• ✅ Content and engagement analytics

You can opt-out anytime (Settings > Privacy > AI Training Program)

• Grandfathered commissions continue
• NEW referrals suspended until reactivation

Full details: Privacy Policy | AI Training Terms

📖 FULL TERMS START BELOW ⬇️

This summary is for convenience only. The complete Terms below are the legally binding agreement.

By continuing, you acknowledge:

• ✅ You've read this summary carefully
• ✅ You understand the key terms above
• ✅ You'll read (or have opportunity to read) the full Terms below
• ✅ You agree to be bound by the complete Terms

📱 NEED HELP?

Questions before accepting?

• 📧 Email: support@lovelike.ai

ANNEX I
AMBASSADOR PROGRAM TERMS AND CONDITIONS
(US Market Adaptation - FTC Compliant Edition)

📄 DOCUMENT INFORMATION

🎯 AMBASSADOR PROGRAM OVERVIEW

The Ambassador Program (Annex I) is a PREMIUM referral opportunity offering enhanced benefits compared to the General Referral Program (Annex VII).

KEY DIFFERENCES:

General Referral Program (Annex VII):
✅ Open to: ALL users (Love Creators, Love Partners)
✅ Requirements: Stripe Connect KYC/KYB
✅ AI Training: NOT required
✅ Commissions: Base rate
✅ Benefits: Standard referral tools

Ambassador Program (Annex I):
✅ Open to: Users who meet enhanced criteria
✅ Requirements: Stripe Connect + AI Training Program participation
✅ AI Training: REQUIRED (for AI-powered benefits)
✅ Commissions: Premium rate (priority over General Referral)
✅ Commission Source: ONLY Love Partner (brand) referrals
✅ Benefits: AI recommendations, exclusive tools

🎯 THREE PATHWAYS TO PARTICIPATE IN LOVELIKE:

PATHWAY 1: PLATFORM USER (No Referral Program)
✅ Who: Love Partners, Love Creators, Lovelikers
✅ AI Training: NOT required
✅ Referral: NOT required
✅ Features: Full platform access (create, campaign)

PATHWAY 2: GENERAL REFERRAL PROGRAM (Annex VII)
✅ Who: ALL Love Partners and Love Creators
✅ AI Training: NOT required
✅ Referral: Base commission rate
✅ Features: Standard referral tools
✅ Entry: Open to all (Stripe KYC/KYB only)

PATHWAY 3: AMBASSADOR PROGRAM (This Annex I)
✅ Who: Invited users meeting enhanced criteria
✅ AI Training: REQUIRED (for AI-powered benefits)
✅ Referral: Premium commission rate
✅ Commission Source: ONLY Love Partner (brand) referrals
✅ Features: AI predictive analytics, exclusive tools
✅ Entry: Invitation-only + AI Training opt-in

→ Choose the pathway that best fits your goals and privacy preferences.

IMPORTANT: Participation in AI Training Program is NOT required to earn referral commissions. All users can participate in the General Referral Program (Annex VII) without AI Training. The Ambassador Program is an OPTIONAL upgrade for users who choose to participate in AI Training and meet additional criteria.

The Ambassador Program operates strictly on a one-tier basis. No downlines, multi-level compensation, or pyramid-like structures are permitted. The Program is not, and shall not be construed as, multi-level marketing or an endless chain scheme.

This Annex governs the Love Connector relationship and supplements the agreements applicable to Love Partners and Love Creators. A "Love Connector" (the "Ambassador") is a Love Creator (natural person or legal entity) or a Love Partner (legal entity) that, upon exclusive invitation and approval by Lovelike, receives Love Connector status within the Platform.

For avoidance of doubt, users who register using a Love Connector code/link are permanently ineligible for Love Connector status (see Sections 1.4 and 6.8).

1. HOW TO BECOME A LOVE CONNECTOR

1.1 Selection Criteria

Love Connector designation occurs exclusively via Lovelike invitation based on:

(a) Historical engagement on the Platform;
(b) Quality and results of prior campaigns;
(c) Strategic influence for community expansion;
(d) Other criteria defined by the Platform.

1.2 Approval and Acceptance

After invitation, the candidate must accept these terms electronically within the Platform. Love Connector status is granted solely at Lovelike's discretion. Approval determinations and related conditions will be communicated via the Platform UI and registered email, and take effect upon notice.

1.3 Required Relationship

1.3.1 Eligibility
Love Connectors must maintain an active Love Partner or Love Creator account in good standing throughout the duration of their participation in the Ambassador Program.

1.3.2 Account Type Requirements

(a) Love Partners (Brands):

• Active paid subscription per Annex IV Section 1 (monetary fees apply)

• Subscription current with no payment arrears

• Compliance with Regular Activity Requirements (Section 4.1.1)

(b) Love Creators (Influencers):

• Monthly activity compliance per Annex IV Section 1A (no monetary fees required)

• Activity-based maintenance: 2 promotional posts OR 1 campaign per month

• Compliance with Regular Activity Requirements (Section 4.1.1)

1.3.3 Additional Requirements (Both Account Types)

• AI Training Program participation (required for NEW referrals; see Section 1.3.4)

• Compliance with General Terms of Service and all Platform policies

• No pending fraud investigations, policy violations, or account restrictions

• "Good Standing" status per definition in Section 1.3.1 (Note)

Note: A Love Connector is in "good standing" when ALL of the following are met:
(a) Subscription/activity status current per subsection 1.3.2 above;
(b) Regular Activity Requirements satisfied per Section 4.1, or grace period granted;
(c) No unresolved policy violations under Annex VIII;
(d) No pending fraud investigations or payment disputes;
(e) Account not suspended or terminated;
(f) AI Training Program participation active (for NEW referral eligibility).

Failure to maintain good standing may result in commission holds, loss of Love Connector status, or initiation of tapering per Section 7.8.4. See Sections 4-5 for complete details on maintenance requirements and status loss procedures.

1.3.1 Underlying Subscription Requirement

Love Connectors must be an active Love Partner or Love Creator in good standing, maintaining their underlying subscription under Annex IV and the General Terms of Service.

1.3.2 AI Training Program Participation Requirement

(a) Eligibility for Invitation:
To be eligible for invitation to Love Connector status, the candidate must be actively participating in the AIMÊ Personalized AI Training Program at the time of invitation and acceptance.

(b) Participation at Time of Acceptance:
Love Connector status cannot be granted to users who are not actively enrolled in the AI Training Program. Candidates who receive an invitation while participating in the AI Training Program but subsequently opt-out before acceptance forfeit eligibility and must request re-approval after re-enrollment, subject to Lovelike’s then-current eligibility review.

(c) Ongoing Participation Requirement for New Referrals:
Active participation in the AI Training Program is required to:

(i) Generate NEW referral commissions after becoming a Love Connector;
(ii) Maintain eligibility for program renewals and ongoing status.

(d) Grandfathered Commissions:
Commissions on referrals made WHILE actively participating in the AI Training Program continue per Section 7.8.4.3, even if the Love Connector subsequently opts out of the AI Training Program, provided all other eligibility conditions remain met.

1.3.3 Rationale and Compliance Notice

The AI Training Program participation requirement serves legitimate business purposes:

(a) Ensures Love Connectors receive optimal platform insights and predictive tools to provide value to referred users;

(b) Aligns with the Program's mission of leveraging AI-enhanced personalization for platform growth;

(c) Creates a distinction between:

• Eligibility for NEW benefits (requires active AI participation); and

• Preservation of PRIOR earned commissions (grandfathered per contract law).

This structure complies with FTC regulations by ensuring compensation derives from actual sales activity and platform services, not solely from maintaining program enrollment status.

1.3.4 Effect of AI Training Program Opt-Out

If a Love Connector opts out of the AI Training Program:

(a) EXISTING referrals made before opt-out: Commissions continue per Section 7.8.4.3;

(b) NEW referrals: Cannot generate commissions until AI Training Program participation is reactivated;

(c) Reactivation: Reactivation may take up to 48 hours to become effective for NEW referral eligibility;

(d) Love Connector status: Remains valid but limited to grandfathered commissions;

(e) Program renewal: May be affected; Automatic renewal of Love Connector status requires active participation in the AI Training Program as of the renewal date, subject to notice requirements and applicable law.

1.3.5 Notice and Transparency

Prospective Love Connectors will be clearly informed of this requirement:

(a) At the time of invitation (via Platform UI and email);
(b) During the acceptance process (explicit consent required);
(c) In the Love Connector onboarding materials;
(d) In quarterly reminder communications.

The relationship between AI Training Program participation and Love Connector eligibility is disclosed in plain language, consistent with FTC Endorsement Guides and CCPA transparency requirements.

A Love Connector is in 'good standing' if ALL of the following conditions are met: (a) Underlying subscription (Love Partner or Creator) is ACTIVE and current on payments; (b) No unresolved policy violations under Annex VIII; (c) No pending fraud investigation or payment disputes; (d) Meets Regular Activity Requirements per Section 4.1, OR has received grace period extension; (e) Has not been subject to suspension or termination notice. Failure to meet Regular Activity Requirements (4.1) triggers warning process (15/7/2 days) before affecting 'good standing' status

1.4 Ineligibility of Referred Users

Any user (Love Partner or Love Creator) who registers using a Love Connector's referral code or link shall be permanently ineligible for Love Connector (Ambassador) status. This ineligibility is non-waivable unless expressly approved in writing by Lovelike's Legal department.

1.5 INCOME DISCLOSURE AND EARNINGS DISCLAIMER

1.5.1 No Earnings Guarantee

Lovelike makes no representations, warranties, or guarantees regarding potential earnings as a Love Connector. Actual results vary significantly based on individual effort, skill, market conditions, network size, platform changes, and other factors beyond Lovelike's control.

MOST LOVE CONNECTORS EARN MODEST SUPPLEMENTAL INCOME, NOT FULL-TIME REPLACEMENT INCOME. Success requires significant time, effort, marketing skill, and business acumen.

1.5.2 Typical Earnings Disclosure (New Program Notice)

IMPORTANT NEW PROGRAM DISCLOSURE:

The Love Connector Ambassador Program is launching simultaneously with the Lovelike Platform. The Effective Date of this Annex is stated in the Document Information table above.

As a newly launched program, no historical earnings data exists as of the publication date of this document. Prospective Love Connectors should assume:

⚠️ ZERO guaranteed income from Ambassador activities;
⚠️ Highly variable results depending on individual effort, market conditions, network size, and factors beyond participant control;
⚠️ Majority of participants may earn little to no commission income, especially in initial months/years;
⚠️ Business expenses may exceed commission income for extended periods;
⚠️ No basis exists for income projections or earnings expectations until actual performance data accumulates.

Post-Launch Data Collection and Disclosure Commitment:

Upon Program activation and accumulation of sufficient data (minimum 12 months of operation with at least 100 active Love Connectors), Lovelike will publish comprehensive earnings disclosures including:

• Median monthly commission (all participants)
• Average monthly commission (all participants)
• Earnings distribution by percentage ranges
• Top performer metrics (top 10%, top 1%)
• Active participant count and definitions

Quarterly Updates:

Once published, earnings disclosures will be updated quarterly and made available at:
📊 lovelike.ai/ambassador-income-disclosure

Estimated Publication Date: March 2027 (12 months after platform launch)

FTC Compliance Statement:

This disclosure is designed to comply with the FTC Act and the FTC's guidance on earnings claims and endorsements. For clarity, Lovelike's Ambassador Program is not offered or marketed as a "business opportunity" under the FTC Business Opportunity Rule (16 CFR Part 437). If future program features trigger business opportunity disclosures, Lovelike will provide any required documents and rescission rights.

Prospective participants are strongly advised to:

(a) Treat Ambassador participation as a speculative business venture with uncertain returns;
(b) Maintain primary income sources and not rely on Ambassador commissions for essential expenses;
(c) Consult financial, tax, and legal advisors before investing time or resources in the Program;
(d) Review the complete Income Disclosure and Earnings Disclaimer (Section 1.5) in its entirety before accepting Ambassador status;
(e) Monitor lovelike.ai/ambassador-income-disclosure for published data once available (estimated March 2027).

1.5.2.1 Pre-Launch Alternative Disclosure

Until historical data becomes available, prospective Love Connectors should evaluate comparable programs:

Industry Benchmarks (Illustrative, Non-Binding):
→ Influencer referral programs: 50−300/month median (first 6 months)
→ Affiliate marketing: 2-5% typical conversion rates
→ SaaS referral programs: 10-20% commission rates standard

Sources:

• Influencer Marketing Hub (2024 Benchmark Report)

• Affiliate Summit (2024 State of Industry)

• SaaS Capital (2024 Affiliate Program Study)

⚠️ DISCLAIMER: These are industry averages, NOT Lovelike-specific guarantees. Your results may vary significantly.

1.5.3 Factors Affecting Earnings

Commission income depends on multiple variable factors including:

(a) Time and Effort Invested: Most successful Love Connectors invest 10+ hours per week actively promoting the Platform;
(b) Existing Network Size: Users with established audiences typically see faster results;
(c) Marketing and Sales Skills: Professional marketing experience significantly impacts conversion rates;
(d) Referred User Activity: Commissions depend entirely on referred users' ongoing platform activity and purchases;
(e) Platform Algorithm Changes: Updates to scoring, commission structures, or policies may affect earnings;
(f) Market Competition: Saturation in specific niches or geographic markets reduces effectiveness;
(g) Economic Conditions: Consumer spending patterns, recessions, and market volatility affect results;
(h) Compliance and Quality: Adherence to ethical promotion standards and FTC guidelines;
(i) Seasonality: Certain periods (holidays, industry events) may show higher or lower activity.

1.5.4 Business Expense Warning

Love Connectors may incur significant business expenses including:

• Marketing and Advertising Costs: Social media ads, Google Ads, influencer collaborations;
• Website and Domain Hosting: Professional website costs (50−50-50−500+/month);
• Social Media Management Tools: Scheduling, analytics, automation software (20−20-20−200/month);
• Content Creation Equipment: Cameras, microphones, lighting, editing software (500−500-500−5,000+);
• Professional Services: Accountant fees (300−300-300−2,000/year), attorney consultations (200−200-200−500/hour);
• Business Licenses and Permits: State/local business registration fees (50−50-50−500+);
• Education and Training: Marketing courses, certifications, conferences (100−100-100−5,000+);
• Technology and Software: Email marketing, CRM systems, analytics tools (50−300/month).

⚠️ WARNING: These expenses may exceed commission income, especially in initial months or years. Treat this as a business investment with no guaranteed return.

1.5.5 Tax Obligations and Reporting

All Love Connector commissions constitute taxable income and are subject to:

(a) Federal Income Tax: Reported on IRS Form 1040, Schedule C (business income);
(b) Self-Employment Tax: Social Security (12.4%) and Medicare (2.9%) taxes on net earnings;
(c) State Income Tax: Varies by state; may require quarterly estimated payments;
(d) Local Business Taxes: City/county business licenses, gross receipts taxes where applicable.

Love Connectors are responsible for:

• Quarterly Estimated Tax Payments: Due April 15, June 15, September 15, and January 15;
• Annual Tax Return Filing: Form 1040 with Schedule C and Schedule SE;
• Recordkeeping: Maintain receipts, invoices, and expense documentation for 7 years;
• Professional Tax Preparation: Costs typically 300−300-300−2,000 annually for small business returns.

Lovelike will issue:

Tax Forms:

• U.S. referrers: Lovelike will issue tax forms (Form 1099-NEC, 1099-K, or other applicable forms) as required by law. Thresholds and form types may vary based on the nature of payments, IRS regulations, and state requirements in effect at the time of payment.

• Non-U.S. referrers: Form W-8BEN required; withholding rates and exemptions governed by applicable tax treaties and IRS regulations.

• Issuance: Tax forms issued by January 31 following tax year, or as required by applicable law.

⚠️ IMPORTANT: If you receive both 1099-NEC and 1099-K for the same income, do NOT report the income twice. Consult a tax professional to properly reconcile these forms.

• State Tax Forms: As required by applicable state law (varies by state).

⚠️ IMPORTANT: Failure to pay quarterly estimated taxes may result in IRS/state tax penalties and interest charges. If you expect to owe $1,000+ in federal taxes, you MUST make quarterly estimated payments (Form 1040-ES). Consult a tax professional before participating.

1.5.6 Success Factors and Realistic Expectations

Most successful Love Connectors share these characteristics:

✅ Invest 10-20+ hours per week actively promoting (not passive income);
✅ Have established audience/network before joining (1,000+ engaged followers);
✅ Produce high-quality, authentic content regularly (3-5 posts/week minimum);
✅ Maintain ethical promotional practices with full FTC disclosure compliance;
✅ Treat it as a business, not a "get-rich-quick" scheme or passive side hustle;
✅ Have 6-12 months of operating capital to cover expenses during ramp-up period;
✅ Continuously learn and adapt marketing strategies based on analytics and performance;
✅ Build genuine relationships with referred users (not transactional spam);
✅ Diversify income sources (not relying solely on Love Connector commissions).

❌ Common Misconceptions to Avoid:

• "I'll make money while I sleep" (passive income myth);
• "Everyone I refer will become a high earner" (most users have modest activity);
• "Commissions are guaranteed once I refer someone" (depends on their ongoing activity);
• "I can quit my job after a few months" (unrealistic timeline for most participants);
• "No experience needed" (marketing/sales skills significantly impact results).

1.5.7 FTC Endorsement Guides Compliance Reminder

When promoting the Love Connector Program, you MUST:

(a) Disclose Material Connection: Use clear, conspicuous disclosures such as:
• "#ad #affiliate #LovelikePartner"
• "I earn commissions when you use my link/code"
• Disclosure BEFORE call-to-action, not buried in footnotes

(b) Avoid Misleading Income Claims:
❌ "Make $10,000/month as a Love Connector!"
❌ "Quit your job with our program!"
❌ "Guaranteed passive income!"
✅ "I've earned [specific amount] but results vary widely"
✅ "Most participants earn modest supplemental income"

(c) Substantiate All Claims: Any earnings claims must be:
• Based on actual, verifiable data;
• Representative of typical results (not outlier success stories);
• Include disclaimers about atypical results if highlighting top earners.

(d) Placement and Prominence: Disclosures must be:
• Placed BEFORE the call-to-action or link;
• In the same format/medium as the promotional content;
• Clear and understandable (avoid legal jargon or fine print);
• Visible without scrolling, clicking, or hovering.

⚠️ FTC PENALTY WARNING: Violations of FTC Endorsement Guides may result in:

• FTC enforcement actions and cease-and-desist orders;
• Civil penalties up to $50,120 per violation (as of 2024);
• Required corrective advertising at violator's expense;
• Permanent injunctions and ongoing monitoring;
• Reputational damage and loss of Love Connector status.

1.5.8 Required Acknowledgment

By accepting Love Connector status, you certify that you:

(a) Have read and understood this Income Disclosure and Earnings Disclaimer in full;

(b) Understand that earnings are not guaranteed and most participants earn modest income;

(c) Acknowledge business expenses may exceed commission income;

(d) Accept sole responsibility for tax obligations and quarterly estimated payments;

(e) Will comply with all FTC Endorsement Guides and truth-in-advertising requirements;

(f) Will not make misleading income claims or guarantee results to prospective users;

(g) Understand this is a business opportunity requiring significant time, effort, and skill;

(h) Have consulted or will consult appropriate tax, legal, and business advisors as needed;

(i) Understand that terminating AI Training Program participation:

• Preserves commissions on referrals made BEFORE termination (grandfathered)

• Prevents new referrals from generating commissions until AI Program reactivated

• Does not affect underlying subscription requirements or prior contractual obligations;

(j) Acknowledge that Love Connector commission rights are separate from AI Training Program participation benefits, and that commissions derive from actual sales activity of referred users, not from maintaining AI Training Program enrollment status;

(k) Have read and understood Sections 1.3.2 (AI Training Program Requirement), 5.3.4.2 (AI Opt-Out Effects), and 7.8.4 (Grandfathered Commissions Framework and Commission Tapering Upon Non-Renewal) in their entirety;

(l) Understand that the Love Connector contract term is ONE (1) YEAR with automatic renewal, and that if the contract is not renewed, commissions on existing referrals will taper gradually over 6 months per Section 7.8.4;

(m) Understand that Love Connector commissions are paid ONLY for referring Love Partners (brands), NOT for referring Love Creators (influencers).

Failure to comply with these obligations may result in immediate termination of Love Connector status and potential legal liability.

2. LOVE CONNECTOR RIGHTS

2.1 Referral Code and Term

2.1.1 Exclusive Code

Love Connectors receive a non-transferable referral code and a dedicated Love Connector link to register new Love Partners (brands) into the Platform.

2.1.2 Initial Term

The referral code is valid for an initial term of ONE (1) YEAR from Love Connector grant.

2.1.3 Automatic Renewal

The term renews automatically for successive ONE (1) YEAR periods, provided that:

(a) the Love Connector remains active and in good standing;
(b) the Love Connector is actively participating in the AI Training Program as of the renewal date, and remains otherwise eligible under this Annex;
(c) no termination notice has been given under Section 5.3.

Clarification: AI Training Program participation is required for renewal and for NEW referral eligibility under this Ambassador Program. It is not required to receive commissions on previously qualified “grandfathered” referrals during an active contract term, as described in Section 7.6.3

2.1.4 Renewal Notice

Lovelike will provide written notice at least sixty (60) days before each automatic renewal, to the extent required by applicable law.

2.2 Commissions

Love Connectors are entitled to commissions per Section 7, calculated on net amounts actually received and retained by Lovelike for qualifying transactions attributable to referred Love Partners (brands), consistent with Annex IV.

IMPORTANT: Commissions are paid ONLY for referring Love Partners (brands). Referring Love Creators (influencers) does NOT generate commissions under this Ambassador Program.

Attribution windows, last-click rules, and anti-manipulation safeguards follow Annex VII Sections 3.2 through 3.4, except as expressly overridden by this Annex for Love Connector attribution (see Sections 2.2A and 6.4).

2.2A Love Connector Attribution (No Fallback)

Eligibility for Love Connector commissions requires that the referred Love Partner (brand) completes registration using the Love Connector's unique code or Love Connector link, as recorded by Lovelike's server-side systems during signup. No fallback attribution (e.g., time-based, cookie-based, or last-touch without code/link at signup) applies under this Love Connector Program. Any fallback windows set forth in Annex VII (General Referral Program) do not apply to the Love Connector Program.

This rule supersedes any last-click or cookie-based fallbacks under Annex VII for Ambassador attributions.

Verified Platform Error Exception: Notwithstanding the no-fallback rule, if Lovelike determines, based on its server-side logs and internal incident records, that a technical error within Lovelike’s systems prevented proper attribution at signup, Lovelike may apply a manual correction in its reasonable discretion. This exception does not apply to user error, omitted code entry, or third-party blocking.

2.3 Payments; Method and Conditions

2.3.1 Stripe Connect Required; Currency

Commissions are paid exclusively via the Love Connector's verified Stripe Connect account linked to the Platform. All payouts occur exclusively in USD. No alternative payment methods are supported.

2.3.2 Campaign Commission Release

Campaign-related commissions are released after full content delivery, formal Love Partner approval, campaign completion, and expiration of the applicable Security Period described in Annex IV.

2.3.3 Processing Timeline

Subject to Section 2.3.2, Annex IV Section 5 governs the payout cycle. Payouts are processed automatically on the 15th and on the last US business day of each month (ET), provided the eligibility conditions in Annex IV Section 5.2 are met by the cut-off time.

New York Labor Law Compliance Note:

Mandatory Payment Timing (If Required by Law): To the extent applicable law requires commissions to be paid within a specific timeframe (including, where applicable, New York Labor Law), Lovelike will pay commissions within the legally required timeframe to the extent such commissions are earned, finally determinable, and not subject to bona fide dispute, chargeback risk, fraud review, Security Periods, or other withholding permitted by law and payment processor rules. Nothing in this Annex requires payment of amounts that are not yet settled, are reasonably disputed, or are subject to reversal under Annex IV.

2.3.4 High-Value Transaction Review

Single transactions equal to or exceeding US$5,000 may be subject to additional verification and may be released in a subsequent payout cycle.

2.3.5 Preventive Retention and Clawbacks

As set forth in Annex IV Sections 6 and 8, the Platform may apply holds of up to ninety (90) calendar days and reverse/offset paid commissions within one hundred eighty (180) days for fraud, chargebacks, or contractual breaches, to the extent permitted by law and processor rules. Offsets may be applied against current or future payouts pursuant to Annex IV.

2.3.6 Reporting

Love Connectors receive a dashboard with referral, transaction, and commission reports, subject to technical availability.

2.3.7 Dormant Payouts and Unclaimed Property

If a payout cannot be completed or remains unclaimed for the applicable dormancy period, Lovelike may assess reasonable dormancy fees, to the extent permitted by law, and, where required, remit funds pursuant to unclaimed property laws, consistent with Annex IV.

2.3.8 Eligibility Contingency

Commission payouts are contingent upon the Love Connector maintaining ACTIVE status under Sections 1.3 and 3.6 from the commission-triggering event through the payout date. Periods of INACTIVE status render affected commissions ineligible for accrual and/or payment, subject to tapering provisions in Section 7.8.4.

2.4 Referred User Benefits and Promotional Incentives

2.4.1 General

Lovelike may offer benefits to Love Partners (brands) who register with a Love Connector's referral code or link, as disclosed on the Platform from time to time. Such benefits are discretionary, subject to change or termination without notice, and governed by Annex IV (financial operations). Benefits do not alter the net basis rules under Annex IV, do not create employment or agency, and may be withheld or revoked upon suspected fraud, abuse, or policy violations.

2.4.2 Love Connector Referring a Love Creator

No Monetary Commissions or Benefits for Love Creator Referrals

(a) No Benefit for the Referred Love Creator:
Love Creators referred by a Love Connector do NOT receive any promotional bonuses, commission boosts, or other financial benefits under the Ambassador Program.

(b) No Benefit for the Referring Love Connector:
Love Connectors do NOT earn monetary commissions for referring Love Creators under this Ambassador Program.

Rationale: The Ambassador Program rewards brand (Love Partner) referrals only, consistent with the program's focus on expanding the Platform's merchant network.

(c) Eligibility and Conditions: This non-compensation policy applies uniformly to all Love Creator referrals, regardless of the referred Creator's subsequent platform activity, campaign participation, or sales volume.

Note: Love Creators may participate in the General Referral Program (Annex VII) by referring Love Partners (brands), which may generate commissions per Annex VII terms. The Ambassador Program (this Annex I) and General Referral Program (Annex VII) do not stack per Section 6.5.

2.4.3 Love Connector Referring a Love Partner

(a) Benefit for the referred Love Partner: A Love Partner who registers using a Love Connector's code or link shall receive a one-time promotional discount on their base subscription fees, based on the plan selected at checkout:

(i) Monthly Subscription: A discount of fifteen percent (15%) applied to the price AFTER Lovelike promotional discounts subscription fee for the first three (3) full billing cycles following account activation.

(ii) Annual Subscription: A discount of fifteen percent (15%) applied to the total base subscription fee for the first full year.

This discount applies only to base subscription charges under Annex IV (exclusive of taxes, add-ons, overages, penalties, or third-party pass-through fees). Discounts are not redeemable for cash and cannot carry over to future periods. The choice between the monthly (i) or annual (ii) benefit is final upon registration.

(b) Benefit for the referring Love Connector:
Love Connectors earn monetary commissions per Sections 7.3 and 7.6 on subscription fees and campaign budgets contracted by referred Love Partners.

(c) Eligibility and Conditions: The referred Love Partner must complete registration using the applicable Love Connector code or link (server-side capture at signup), pass curation/approval (Section 1), and maintain active subscription in good standing (Annex IV) during the discount window. Missed or partial billing periods are not extended.

(d) Non-stacking and Precedence: The subscription discount does not stack with other subscription promotions unless expressly stated. Annex IV governs fee calculations, billing, proration, and tax handling. In all conflicts, Annex IV controls.

2.4.4 Technical and Compliance Notes

(a) Technical Attribution: Client-side limitations (private browsing, cookie blocking, ITP/ETP, ad blockers, GPC, consent denials) may affect tracking signals, but attribution for these promotional benefits is determined by server-side capture of the code/link at signup.

(b) Fraud and Abuse Safeguards: Lovelike may require additional verification, impose limits per account, household, payment method, device, or IP-range, and deny benefits for common control/self-referrals absent prior written approval (see Section 3.7). Lovelike may offset or claw back benefits granted in error or in violation of policy pursuant to Annex IV.

2.4.5 No Modification of Core Financial Regimes

Except as expressly stated in this Section 2.4, these promotional benefits do not modify:

(i) Love Connector commission rules in Section 7;
(ii) the Love Connector non-stacking rule with the General Referral Program (Sections 6.5 and 7.9.3); or
(iii) the net basis, payout schedules, holds, reserves, or clawbacks in Annex IV.

2.4.6 RETAIL SALES FOCUS AND PYRAMID PREVENTION

2.4.6.1 Primary Income Source Disclosure

Love Connector compensation is designed to derive primarily from commissions on actual sales and services to end consumers (brands paying for subscriptions and campaigns), not from recruiting new Love Connectors or earning from recruitment activities.

The Program's economic model is based on legitimate retail distribution and service facilitation, consistent with FTC guidance distinguishing lawful referral programs from illegal pyramid schemes.

2.4.6.2 No Recruitment Quotas or Penalties

Love Connectors:

(a) Have no minimum recruitment requirements to maintain status (subject to general activity requirements in Section 4.1);

(b) Are not penalized for low referral numbers or failure to recruit additional participants;

(c) Can earn substantial commissions solely from referred Love Partners' subscription fees and campaign activity without recruiting additional Love Connectors;

(d) Are not rewarded for depth of network, downline activity, or hierarchical structures (strictly one-tier program);

(e) Receive commissions based exclusively on first-generation referred Love Partners' actual platform transactions, not on recruiting activities of those referred users.

2.4.6.3 Promotional Benefits as Customer Acquisition Costs

The bonuses/discounts described in Section 2.4.3 are:

(a) Marketing expenditures by Lovelike to acquire legitimate customers (Love Partners) through referral channels;

(b) Not compensation paid to Love Connectors for the act of recruitment itself;

(c) Designed to incentivize referred users' platform adoption and success, benefiting the end consumer and platform ecosystem;

(d) Analogous to traditional customer acquisition costs (CAC) in digital marketing, not recruitment bonuses in MLM structures.

Love Connectors do NOT receive monetary compensation for:

• The act of recruiting new users;
• New user registration or account creation;
• Referred Love Creators' platform activities;

Love Connectors DO receive commissions for:

• Subscription fees paid by referred Love Partners (brands);
• Campaign services contracted by referred Love Partners to Love Creators;
• Net revenue generated through legitimate platform commerce and services.

2.4.6.4 Retail Sales Predominance Commitment

Lovelike will structure and monitor the Program so that compensation is predominantly derived from bona fide sales of products and services to end consumers and legitimate platform services. Lovelike will publish periodic aggregate metrics evidencing retail-driven compensation predominance and may adjust program mechanics to maintain compliance with applicable law.

Lovelike will publish periodic transparency reports (available at lovelike.ai/ambassador-metrics) disclosing aggregate Love Connector commission sources to demonstrate compliance with this retail sales focus framework.

2.4.6.5 Anti-Pyramid Certification and User Acknowledgment

By accepting Love Connector status, you certify and acknowledge that:

(a) This Program is NOT a pyramid scheme, multi-level marketing (MLM), or endless chain scheme as defined under federal and state law;

(b) Compensation derives from legitimate sales activity, not from recruiting participants or selling participation rights;

(c) No inventory purchase requirements exist to participate or maintain status;

(d) No "pay-to-play" structure requires ongoing purchases to earn commissions;

(e) One-tier structure only — you earn commissions exclusively from direct referrals' activities, not from multi-level downlines;

(f) Primary income derives from subscription fees and campaign services from referred Love Partners (brands), not recruitment;

(g) You have reviewed the Income Disclosure Statement (Section 1.5) and understand that most participants earn modest income, success requires significant effort, and expenses may exceed earnings;

(h) You will not misrepresent the Program as a "get-rich-quick" scheme, passive income opportunity, or guaranteed earnings program;

(i) You will comply with FTC Endorsement Guides, truth-in-advertising laws, and all applicable state referral program regulations;

(j) Subscription- and Campaign-Based Compensation (Referred Brand Activity; Grandfathering/Tapering):

The Program’s grandfathering structure (Section 7.8.4.3) and tapering structure (Section 7.8.4) support and reflect that Love Connector compensation is derived solely from the referred Love Partners’ (brands’) paid activity on the Lovelike platform—specifically (i) Net Subscription Fees paid by referred brands and (ii) Net Campaign Value contracted and/or paid by referred brands (as defined in this Annex). Commissions are not paid merely for maintaining Love Connector status, maintaining an underlying subscription, participating in (or paying for) the AI Training Program, or recruiting other participants.

Consistent with the payment terms of this Annex (including any applicable holds, reversals, refunds, chargebacks, and adjustments), commissions are earned and calculated only to the extent the referred brand’s qualifying subscription and/or campaign amounts are actually collected by Lovelike.

By preserving commissions on previously referred brands’ ongoing subscription and/or campaign payments even if a Love Connector later opts out of AI Training participation (and by applying a gradual tapering only upon non-renewal), the Program ties compensation to the referred brands’ continued paid use of Lovelike services, rather than to recruitment or status maintenance. This structure is consistent with FTC guidance and case law distinguishing lawful referral/affiliate programs from unlawful pyramid schemes (including FTC v. BurnLounge, Inc., 753 F.3d 878 (9th Cir. 2014)).

⚠️ IMPORTANT LEGAL NOTICE:

Federal Trade Commission (FTC) Guidelines:

The FTC evaluates business opportunity programs using the Koscot test and BurnLounge precedent. Programs are considered pyramid schemes if:

• Compensation primarily comes from recruiting rather than retail sales;
• Participants profit mainly from others' entry fees rather than product sales;
• Inventory loading or pay-to-play structures exist.

This Program is designed to comply with FTC standards through:

• Strict one-tier structure (no downlines);
• Commission basis tied to actual retail sales and services;
• No purchase requirements to participate or earn;
• Transparent income disclosures and earnings disclaimers;
• Retail sales predominance commitment;
• Tapering structure that preserves value for past contributions while incentivizing renewal.

State Law Compliance:

The Program is intended to operate as a one-tier referral program and to comply with applicable law. Lovelike may update disclosures, enforcement, and Program mechanics in response to regulatory guidance and compliance risk.

2.4.6.6 Monitoring and Enforcement

Lovelike will actively monitor:

(a) Commission Source Analysis: Quarterly reviews of commission distributions to ensure retail sales predominance;

(b) Recruitment Pattern Detection: Automated systems flagging unusual recruitment-heavy activity vs. sales activity;

(c) User Complaints: Tracking feedback indicating pyramid concerns or misleading promotions;

(d) Regulatory Guidance: Continuous monitoring of FTC, state AG enforcement actions, and updated regulations.

Enforcement Actions for Violations:

(a) Warning and Re-education: First-time violations may receive compliance training and written warning;

(b) Commission Holds: Temporary suspension of payouts pending investigation;

(c) Love Connector Termination: Permanent status revocation for serious or repeated violations;

(d) Legal Referral: Egregious cases may be referred to FTC, state authorities, or law enforcement;

(e) Clawback Rights: Lovelike may recover commissions paid based on fraudulent or non-compliant activity.

3. LOVE CONNECTOR OBLIGATIONS

3.1 Ethical Promotion

Promote registrations truthfully and ethically, including FTC Endorsement Guides disclosures where applicable. Disclosures must be clear, conspicuous, proximate to the link/CTA, and appropriate to the medium, consistent with Annex VII Section 11.1.

⚠️ Required FTC Disclosure Examples:

✅ Acceptable:

• "I'm a Lovelike Ambassador and earn commissions when you use my link. #ad #affiliate"
• "Full disclosure: I may receive a commission if you sign up using my code. #LovelikePartner"
• "Affiliate link – I earn from qualifying transactions, but results vary for everyone"

❌ Unacceptable (FTC Violations):

• Buried disclosure in bio or "link in bio" (not proximate to CTA)
• "#partner" without clear commission disclosure (ambiguous)
• Disclosure after call-to-action or in comments section (too late)
• No disclosure at all (deceptive omission)

3.2 Compliance

Comply with the General Terms of Service, Privacy Policy, Annex IV, Annex VIII (Business Conduct), and other Platform rules.

3.3 Professional Conduct

Maintain conduct consistent with Lovelike standards; avoid harm to Lovelike or other users (including Love Partners and Love Creators).

3.4 Information Accuracy

Provide accurate information; avoid promises not contained in official terms.

❌ Prohibited Claims:

• "Guaranteed earnings of $X per month"
• "Make money while you sleep with zero effort"
• "Quit your job in 90 days"
• "Everyone I know is making six figures"
• "No experience needed – instant income"
• Sharing income screenshots without context/disclaimers

✅ Permitted Truthful Statements:

• "I've personally earned [specific amount] but results vary widely"
• "Most participants earn modest supplemental income per Lovelike disclosures"
• "Success requires significant time, effort, marketing skills, and business investment"
• "Review the official Income Disclosure at [link] before joining"

3.5 Taxes

Responsible for taxes on commission income; Lovelike will issue tax forms as required by law. See Section 1.5.5 for comprehensive tax obligations.

3.6 Active Subscription

Maintain underlying Love Partner or Love Creator subscription in good standing, per Annex IV and the Terms.

3.7 Self-Referrals and Common Control

Self-referrals are prohibited. Referrals between entities under common ownership, control, or management--or that share payment credentials, devices, IP addresses, or physical addresses indicative of a single economic unit--are ineligible absent Lovelike's prior written approval.

3.8 Outreach Consent Records

Love Connectors must obtain and retain verifiable consent records for SMS, calls, messaging apps, or email outreach and honor opt-out requests, consistent with applicable laws (e.g., TCPA, CAN-SPAM) and Platform policies.

3.9 Sanctions and Export Compliance

Love Connectors must comply with U.S. export controls and sanctions (including OFAC) and cannot be listed on denied/restricted party lists.

4. LOVE CONNECTOR STATUS MAINTENANCE

4.1 Regular Activity Requirements

4.1.1 Activity Evaluation

Evaluated in rolling 30-day periods. Illustrative minimum activity standards may be published in the dashboard and updated from time to time. Lovelike may consider seasonality, category differences, and good-faith justifications before imposing any restrictions. Current baseline guidance includes, for example:

For Love Partners:

• Own sales in the month ≥ US$1,000.00
• Number of orders in the month ≥ 10
• Active campaigns ≥ 1
• Return rate ≤ 15%
• Love Partner rating ≥ 4.0/5.0

For Love Creators:

• Total revenue in the month ≥ US$500.00
• AND (campaigns ≥ 1) OR engagement activity demonstrating active participation
• Engagement rate ≥ 3.0%
• Love Creator rating ≥ 4.0/5.0

4.1.2 AI Training Program Status and Activity

(a) For NEW Referral Commissions:
Active participation in the AI Training Program is required to generate commissions on referrals made after becoming a Love Connector.

(b) For EXISTING Referral Commissions (Grandfathered):
AI Training Program participation is NOT required to continue receiving commissions on referrals made BEFORE opting out of the AI Training Program, subject to tapering provisions in Section 7.8.4 if contract is not renewed.

(c) Verification:
AI Training Program participation status is verified automatically via the Platform's privacy settings (Settings > Privacy > AI Training Program).

(d) Grace Period:
If a Love Connector's AI Training Program participation lapses:

(i) A 15-day grace period is provided to reactivate;
(ii) During grace period, existing commissions continue;
(iii) New referrals made during grace period may not generate commissions;
(iv) After grace period without reactivation, NEW referral capability is suspended.

4.1.3 Effect of Non-Compliance

Failure to meet regular activity requirements may result in:

(a) Warning notifications (15/7/2 days before action);
(b) Temporary suspension of NEW referral capability;
(c) Commission holds on NEW referrals pending compliance restoration;
(d) Termination of Love Connector status per Section 5.2 (for egregious violations).

EXISTING referral commissions (grandfathered) are NOT affected by temporary compliance issues, provided the underlying subscription remains active, subject to tapering per Section 7.8.4 if contract is not renewed.

4.2 Periodic Evaluation

Lovelike may periodically assess performance and request adjustments. The Platform may provide reminder notifications (e.g., 15/7/2 days) via the dashboard and registered email. Lovelike may consider seasonality and reasonable justifications before imposing restrictive measures, acting in good faith.

4.3 Subscription Dependency

Requires an active underlying Love Partner or Love Creator subscription in good standing. Changes to Love Connector status or eligibility tied to underlying subscription standing will be communicated via the Platform UI and registered email, and take effect upon notice.

5. LOSS OF LOVE CONNECTOR STATUS AND TERMINATION

5.1 Inactivity

Absence of referrals/registrations for more than ninety (90) consecutive days may result in immediate suspension and loss of rights, to the extent permitted by law and Annex IV, subject to tapering provisions in Section 7.8.4.

5.2 Revocation for Conduct

Violations of this Annex or the Terms may result in immediate revocation and loss of rights, without prejudice to other remedies, subject to tapering provisions in Section 7.8.4 for grandfathered commissions.

5.3 Unilateral Termination by Love Connector

5.3.1 Right to Terminate

Love Connectors may terminate participation at any time, without cause and without penalty (except as provided in Section 7.8.4 regarding tapering of grandfathered commissions).

5.3.2 Notice

Submit via:

(a) official support channel;
(b) Love Connector dashboard; or
(c) official customer service email.

5.3.3 Effective Date

Thirty (30) days after Lovelike's receipt, unless immediate termination is requested.

5.3.4 Effects of Voluntary Termination and AI Training Program Opt-Out

5.3.4.1 Complete Love Connector Termination

If a Love Connector voluntarily terminates Love Connector status entirely (not merely opting out of AI Training Program):

(a) Referral Code Deactivation:
The Love Connector's referral code becomes inactive immediately upon termination effective date;

(b) NEW Referral Commissions:
No new referrals can be made, and no future commissions accrue on transactions initiated after termination;

(c) EXISTING Referral Commissions (Grandfathered with Tapering):
Previously earned but unpaid commissions on referrals made BEFORE termination are paid per standard terms (Sections 2.3 and 7.8), and commissions on grandfathered referrals taper per Section 7.8.4, provided:

(i) Underlying subscription (Love Partner or Love Creator) remains active during tapering period;
(ii) No fraud, abuse, or policy violations have occurred;
(iii) Referred users' transactions remain valid and not reversed;

(d) Re-Approval; No Guaranteed Reinstatement: After termination effective date, the former Love Connector may request re-approval at any time through the Platform or Support. Reinstatement is not guaranteed and remains subject to Lovelike’s review and approval in its reasonable discretion, including fraud/abuse signals, compliance history, and current eligibility requirements.

(e) Final Settlement:
Tapering payments occur per Section 7.8.4 schedule (6 months), subject to standard holds and verification periods under Annex IV.

5.3.4.2 AI Training Program Opt-Out (Without Full Termination)

If a Love Connector opts out of the AI Training Program but does NOT terminate Love Connector status:

(a) Referral Code Status:
The Love Connector's referral code remains technically active but cannot generate NEW referral commissions until AI Training Program participation is reactivated;

(b) EXISTING Referral Commissions (Grandfathered):
Commissions on referrals made BEFORE AI Training Program opt-out CONTINUE to accrue and be paid at full rate while contract remains active, and taper per Section 7.8.4 if contract is not renewed, provided:

(i) Underlying subscription (Love Partner or Love Creator) remains active;
(ii) Referred users remain active and generate qualifying transactions;
(iii) No fraud, abuse, or policy violations have occurred;
(iv) All other eligibility conditions under Section 7.8.4 remain met;

(c) NEW Referral Commissions:
Cannot generate commissions on referrals made AFTER AI Training Program opt-out until participation is reactivated;

(d) Reactivation Timing; Abuse Prevention: Reactivation may take up to 48 hours to become effective for NEW referral eligibility. Lovelike may impose additional delays or restrictions in cases of suspected fraud, abuse, or unusual toggling patterns, as determined in Lovelike’s reasonable discretion.

5.3.4.3 Rationale and Legal Compliance

This two-tier structure (full termination vs. AI opt-out) with tapering ensures:

(a) Contract Law Compliance:
Commissions on services already performed (prior referrals) are not retroactively canceled entirely; tapering respects the doctrine of consideration while acknowledging the time-limited nature of the contract;

(b) FTC Compliance:
Compensation derives from actual sales activity (referred users' transactions), not from maintaining AI Training Program enrollment status. The AI requirement applies only to eligibility for NEW benefits, not continuation of EARNED commissions (which taper based on contract term);

(c) CCPA/GDPR Compliance:
Opting out of the AI Training Program (exercising privacy rights) does not result in immediate financial detriment for past activities; tapering is based on contract term expiration, not privacy rights exercise;

(d) Labor Law Compliance:
Commissions "earned" when services were performed (at time of referral) remain payable with tapering based on contract duration, consistent with California Labor Code § 2751 and New York Labor Law § 191;

(e) Business Rationale:
The 12-month waiting period for reactivation discourages gaming the system (opt-out/opt-in cycling) while preserving legitimate privacy rights exercise. Tapering incentivizes contract renewal while respecting past contributions.

5.3.4.4 Notice Requirements

Lovelike will provide clear notice:

(a) At AI Training Program opt-out: Plain-language explanation of effects on Love Connector status and commissions;

(b) Quarterly reminders: Email notifications summarizing Love Connector status, AI Training Program participation, commission status, and tapering schedule (if applicable);

(c) Pre-renewal notices: 60 days before automatic renewal, disclosing any changes to renewal conditions related to AI Training Program participation and effects of non-renewal (tapering schedule);

(d) Dashboard indicators: Real-time status display showing:

• AI Training Program: ACTIVE / INACTIVE

• NEW Referral Eligibility: ACTIVE / SUSPENDED (with reason and reactivation date)

• Grandfathered Commissions: ACTIVE / TAPERING (with schedule)

• Current Commission Rate: 100% / 75% / 50% / 25% / 0%

• Reactivation Waiting Period: [DATE] or "Eligible Now"

5.4 Main Subscription Deactivation

Deactivation of the underlying Love Partner or Love Creator account results in automatic loss of status and rights, including future commissions. Previously accrued but unpaid commissions are paid per Section 5.3.4.1(c), subject to standard verification and hold periods under Annex IV. Important Distinction: Tapering under Section 7.8.4 applies exclusively to contract expiration/non-renewal scenarios. Subscription deactivation triggers immediate cessation of all commission rights without tapering, as the foundational Love Connector relationship is terminated. Grandfathered commissions that have already accrued but remain unpaid are distributed per Section 5.3.4.1(c), not per the tapering schedule.

5.5 Immediate Effects

Loss of status is immediate for NEW referrals; grandfathered commissions taper per Section 7.8.4 if contract is not renewed. Notices of suspension or termination will be communicated via the Platform UI and registered email, and take effect upon notice.

6. GENERAL PROVISIONS

6.1 Program Changes

Lovelike may modify rules, conditions, percentages, or requirements with at least thirty (30) days' prior notice, unless a shorter period is required by law or for urgent compliance/security reasons. Material commission changes (including tapering schedule modifications) will be notified per Document Management with at least sixty (60) days' prior notice.

6.2 Internal Dispute Review

Disputes on referral attribution or commission calculation may be submitted via support; Lovelike will review within fifteen (15) business days, to the extent feasible and acting reasonably and in good faith, and subject to the evidentiary standard in Section 6.4 and Annex VII.

6.3 Relationship Nature

Love Connectors are independent contractors. No employment, partnership, franchise, joint venture, agency, or fiduciary relationship is created.

6.4 Attribution Evidence Standard

In any dispute regarding referral tracking or commission attribution under this Annex, Lovelike's server-side logs and attribution systems prevail over user-provided evidence (e.g., screenshots), acting reasonably and in good faith, and subject to audit trail retention under Annex IV Section 13.1.

6.5 No Stacking with Referral Program

Love Connector Program benefits do not stack with benefits under Annex VII (General Referral Program) for the same user or transaction. If a transaction could otherwise qualify under multiple remuneration regimes, Annex IV priorities and classification decisions prevail; Lovelike's reasonable, good-faith determination is final and binding for Platform purposes.

6.6 Cooperation Duty

Love Connectors must cooperate with reasonable requests for information or documentation to validate referrals, activity legitimacy, and compliance.

6.7 Technical Attribution Notice

Client-side tracking may be impacted by private browsing modes, cookie blocking, ad blockers, ITP/ETP controls, Global Privacy Control (GPC) signals, or consent denials. Love Connector attribution under this Annex is based on server-side capture of the Love Connector code or link during signup. Love Connectors should ensure referred users apply the code or use the Love Connector link during registration to ensure attribution.

6.8 No Circumvention -- Ambassador Eligibility

For avoidance of doubt, users onboarded under a Love Connector code/link may not be later designated as Love Connectors. Lovelike may revoke any Love Connector designation made in error or obtained in circumvention of this rule.

7. COMMISSION STRUCTURE

7.1 General Rule

IMPORTANT COMMISSION SOURCE CLARIFICATION:

Love Connector commissions are paid ONLY for referring Love Partners (brands) to the Platform. Commissions are calculated based on:

(a) Subscription Fees paid by referred Love Partners (Section 7.3); and
(b) Campaign Budgets contracted by referred Love Partners (Section 7.2).

NO commissions are paid for:
• Referring Love Creators (influencers/content creators)
• Any product sales or marketplace transactions
• Any other referral activities not explicitly specified in Sections 7.2 and 7.3

Unless otherwise stated in Annex IV, Love Connector commissions are calculated on net amounts actually received and retained by Lovelike for qualifying transactions attributable to referred Love Partners (brands).

"Net amount" means amounts actually received and retained by Lovelike after applicable processor/network fees, reserves/holds, refunds, chargebacks, taxes withheld/remitted, and other adjustments, as determined pursuant to Annex IV.

Specific rates and distributions are set operationally in Annex IV or Platform UI and may be adjusted with notice per Section 6.1 and the Terms Section 20.1.

Commission rates are subject to tapering per Section 7.8.4 if Love Connector contract is not renewed.

7.2 Advertising Campaigns

7.2.1 Lovelike Share (Illustrative)

For contracted campaigns, Lovelike may retain a platform share of the total campaign budget (e.g., 30%), subject to Annex IV and specific campaign agreements. Specific retention percentages for campaign budgets are set forth operationally in Annex IV or in the applicable campaign agreement.

7.2.2 Love Connector Allocation (Love Partner Referrals Only)

Love Connectors who have referred an active Love Partner (brand) shall receive nine percent (9%) of the Net Campaign Value processed through the Platform by that referred Love Partner, subject to tapering per Section 7.8.4 if contract not renewed.

Definition of Net Campaign Value:

"Net Campaign Value" means the total campaign budget amount actually received and retained by Lovelike from the Love Partner (brand), calculated after deducting:

(i) All promotional discounts applied by Lovelike;
(ii) Payment processing fees (including Stripe and any Stripe Connect fees);
(iii) Refunds, chargebacks, or reversals;
(iv) Applicable taxes withheld or remitted; and
(v) Any other transaction-related fees per Annex IV.

Example (Illustrative):

• Campaign Budget (gross): 10,000•Lovelikepromotionaldiscount(010,000 • Lovelike promotional discount (0% in this example): 10,000•Lovelikepromotionaldiscount(00
• Gross amount paid by Love Partner: 10,000•Stripeprocessingfees(2.910,000 • Stripe processing fees (2.9% + 10,000•Stripeprocessingfees(2.90.30): -290.30•∗∗NetCampaignValuereceivedbyLovelike:290.30 • **Net Campaign Value received by Lovelike: 290.30•∗∗NetCampaignValuereceivedbyLovelike:9,709.70**
• Love Connector commission (9% of 9,709.70):9,709.70): 9,709.70):873.87

No Commissions for Love Creator Referrals:

Love Connectors do NOT earn commissions on campaigns contracted by Love Creators they have referred. Campaign commissions are paid ONLY for campaigns contracted by referred Love Partners (brands).

Eligibility Conditions:

(a) The Love Partner must have been referred by the Love Connector (server-side code/link capture at signup);
(b) The campaign must be contracted, executed, and paid through the Lovelike Platform;
(c) The Love Connector must maintain ACTIVE status per Sections 1.3, 3.6, and 7.8.4;
(d) All standard hold periods, verification requirements, and payout schedules per Annex IV apply.

7.2.3 No Love Connector Linked

If a Love Partner has no Love Connector, Lovelike retains the full commission share.

7.3 Commission on Love Partner Subscription Fees

(a) Commission Right: A Love Connector who successfully refers a Love Partner (brand) shall be entitled to a recurring commission of thirty percent (30%) of the Net Subscription Fees paid by that referred Love Partner to Lovelike, subject to all conditions in this Section 7.3 and Section 7.8.

(b) Definition of Net Subscription Fees: "Net Subscription Fees" shall mean the gross subscription fees (monthly or annual) actually received and retained by Lovelike, after deducting:

(i) All promotional subscription discounts applied by Lovelike at signup (e.g., seasonal promotions, platform-wide discount campaigns, special offers);

(ii) The Love Connector's 15% referral discount as defined in Section 2.4.3(a) (applied after Lovelike's promotional discounts per the discount stacking order);

(iii) Payment processing fees (e.g., Stripe, PayPal);

(iv) Taxes withheld or remitted;

(v) Refunds or chargebacks.

CLARIFICATION ON DISCOUNT STACKING ORDER:

When multiple discounts apply to a Love Partner's subscription, they are applied in the following sequence:

Step 1: Apply Lovelike's promotional discounts (if any) to the base subscription price
→ Result: "Post-Promotional Price"

Step 2: Apply the Love Connector's 15% discount to the "Post-Promotional Price" from Step 1
→ Result: "Final Price Paid by Love Partner"

Step 3: Deduct payment processing fees from "Final Price Paid by Love Partner"
→ Result: "Gross Amount Received by Lovelike"

Step 4: Deduct any refunds, chargebacks, or taxes withheld
→ Result: "Net Subscription Fees" (base for Love Connector commission calculation)

Step 5: Calculate Love Connector commission as 30% of "Net Subscription Fees"

ILLUSTRATIVE EXAMPLE:

Scenario:
• Love Partner signs up for a plan with base price of $200/month
• Lovelike is running a promotional campaign: 50% off for the first 3 months
• Love Partner uses a Love Connector's referral code: 15% additional discount per Section 2.4.3(a)(i)
• Payment processing fees: 3.5%+$0.30 (illustrative)

MONTH 1-3 CALCULATION (With Lovelike Promotion + Love Connector Discount):

The Love Connector earns $24.52/month for months 1-3 (while both promotional discounts are active).

The Love Connector earns $57.81/month (recurring) starting from the 4th month, for as long as the contract remains active and the Love Partner's subscription is maintained.

KEY TAKEAWAYS:

1. Commissions calculated on NET amounts Lovelike receives (after ALL discounts and fees), not on base price or amount Love Partner pays.

2. Multiple discounts stack: Lovelike promotional discount applies FIRST, then Love Connector discount applies to the already-reduced price.

3. Commission base varies significantly:
   • Months 1-3 (both discounts): $24.52/month (commission on $81.72 net)
   • Months 4+ (no discounts): $57.81/month (commission on $192.70 net)

4. This structure is transparent and legally sound:
   • Fully disclosed in Section 7.3(b)
   • Ensures Lovelike only pays commissions on money actually received
   • Prevents double-dipping
   • Standard in affiliate/referral programs

5. Love Partners benefit from stacked discounts: In this example,$85/month for first 3 months (57.5% total discount) instead of $200/month.

(c) Conditions: This commission is paid only while (i) the referred Love Partner maintains an active, paid subscription, and (ii) the Love Connector maintains continuous ACTIVE status per Sections 1.3, 3.6, and 7.8.4.

(d) Tapering: Should the Love Connector's contract not be renewed, this recurring subscription commission shall be subject to the identical 6-month tapering schedule as defined in Section 7.8.4.

7.4 Net Basis; Exclusions

7.4.1 Net Values

Percentages refer to net values after operational fees and adjustments, including: Stripe processing; network assessment fees; wallet/payout fees; bank withdrawal fees; Stripe Connect transfer fees; reserves/holds; refunds; chargebacks; and taxes withheld/remitted, as determined per Annex IV.

7.4.2 Transparency

The Platform will provide a breakdown of deductions used in commission calculations where available in system reports.

7.5 Payment and Settlement

7.5.1 Trigger

Commission entitlement arises upon financial settlement of the underlying transaction and expiration of applicable hold/return windows, subject to reversals and adjustments per Annex IV.

7.5.2 Timing

Commissions are processed per Section 2.3 and Annex IV Section 5 (automatic payouts on the 15th and last US business day, ET), subject to eligibility.

7.5.3 Method

Payment occurs exclusively via the Love Connector's linked Stripe Connect account. Any processor or onward transfer fees are the Love Connector's responsibility.

7.6 Continuous Active Status Requirement and Grandfathered Commissions

7.6.1 Underlying Subscription Requirement (All Commissions)

Commission accrual and payout require that the Love Connector's underlying Love Partner or Love Creator subscription remain in ACTIVE status continuously from the time the referral was made through the commission payout date.

If the underlying subscription becomes INACTIVE at any time:

(a) All commission accrual ceases immediately (both prior referrals and any hypothetical new referrals);

(b) Previously accrued but unpaid commissions are paid per Section 5.3.4.1(c), subject to standard verification and hold periods under Annex IV;

(c) Reactivation of the underlying subscription does NOT automatically restore prior referrals; Love Connector must reapply per Section 5.3.4.1(d);

(d) This requirement applies uniformly regardless of AI Training Program participation status.

Rationale: The underlying subscription represents the Love Connector's active status as a Love Partner or Love Creator, which is the foundational relationship required for all Program benefits.

7.6.2 AI Training Program Requirement (NEW Referrals Only)

(a) Eligibility Requirement for NEW Referral Commissions:

To generate commissions on referrals made AFTER becoming a Love Connector, the Love Connector must maintain ACTIVE participation in the AI Training Program (AIMÊ Personalized) at the time the referral is made.

Verification: Server-side capture of both:
(i) Love Connector referral code/link usage at user signup; AND
(ii) Love Connector's AI Training Program status = ACTIVE at moment of referral (timestamp-based verification).

If AI Training Program status = INACTIVE at the time a referral is made, that referral does NOT generate commissions, even if the Love Connector later reactivates AI Training Program participation.

(b) Program Launch and Effective Date:

This AI Training Program requirement is effective from the Love Connector Program launch date and applies to ALL referrals made on or after each Love Connector's acceptance date.

(i) Program Launch: The Love Connector Program launches on the Effective Date stated in the Document Information table of this Annex.

(ii) Individual Effective Date: For each Love Connector, the AI Training Program requirement becomes effective 24 business hours after they accept Love Connector status, provided:

• Love Connector has accepted this Annex I in full;

• Underlying subscription (Love Partner or Love Creator) is ACTIVE; AND

• AI Training Program participation is ACTIVE.

(iii) Grace Period: The 24-hour grace period allows Love Connectors to:

• Verify their AI Training Program status is active;

• Complete onboarding materials and dashboard setup;

• Familiarize themselves with referral code/link mechanics.

(iv) Referrals Made During Grace Period: Referrals made BEFORE the 24-hour grace period expires are NOT eligible for commissions. Only referrals made AFTER the grace period (when all eligibility conditions are met) generate commissions.

(c) No Retroactive Application:

Because the Love Connector Program is launching for the first time, there are no "pre-existing" Love Connectors or referrals to grandfather from prior versions.

The AI Training Program requirement applies uniformly to all Love Connectors from their individual acceptance date + 24 business hours.

(d) Future Changes to AI Training Program Requirement:

If Lovelike later modifies, removes, or changes the AI Training Program requirement, any such changes will be governed by Section 6.1 (Program Changes) and will include appropriate grandfathering for Love Connectors affected by the change, consistent with the principles in Section 7.6.3.

For the avoidance of doubt: This subsection (d) applies only to FUTURE changes to the AI requirement, not to the initial launch requirement described in subsections (a)-(c).

7.6.3 Grandfathered Commissions on Prior Referrals

(a) Definition of Grandfathered Referrals:

Referrals made WHILE the Love Connector was:
(i) Actively participating in the AI Training Program; AND
(ii) Maintaining active underlying subscription; AND
(iii) In good standing under this Annex.

(b) Continuation of Grandfathered Commissions:

Commissions on grandfathered referrals SHALL CONTINUE to accrue and be paid (subject to tapering per Section 7.8.4 if contract not renewed) even if the Love Connector subsequently opts out of the AI Training Program, provided that:

(i) Underlying Subscription Remains Active:
The Love Connector maintains an active Love Partner or Love Creator subscription in good standing per Section 7.6.1;

(ii) Referred Users Remain Active:
The referred Love Partners continue to generate qualifying transactions per Sections 7.2-7.3 and Annex IV;

(iii) No Fraud or Policy Violations:
Neither the Love Connector nor the referred user has engaged in fraud, abuse, manipulation, or material policy violations;

(iv) No Transaction Reversals:
Underlying transactions remain valid (not refunded, charged back, or canceled per Annex IV);

(v) Standard Hold Periods Respected:
All applicable Security Periods, verification holds, and payout schedules per Annex IV are satisfied.

(c) Permanence of Grandfathered Status (Subject to Contract Term):

Once a referral qualifies as "grandfathered" under subsection (a), that status is PERMANENT for the duration of the Love Connector's active contract term, subject only to the conditions in subsection (b).

AI Training Program opt-out does NOT convert grandfathered referrals to non-qualifying status.

If the Love Connector contract is not renewed, grandfathered commissions taper per Section 7.8.4.

7.7 Reversals and Cancellations

7.7.1 Canceled Campaigns

Commissions adjust proportionally to amounts actually paid. Tapering rates (if applicable) apply to adjusted amounts.

7.7.2 Subscription Cancellations and Campaign Reversals

As set forth in Annex IV:

(a) Subscription Cancellation:
(i) If a referred Love Partner cancels their subscription within the first 90 days, Love Connector commissions for that period may be subject to clawback per Annex IV Section 8;
(ii) If cancellation occurs after 90 days, previously paid commissions are NOT clawed back, but future commissions cease immediately;
(iii) If Love Partner downgrades to a non-qualifying tier, commissions adjust to the new tier rate or cease if tier is not commission-eligible.

(b) Campaign Disputes:
(i) Dispute resolved in favor of the Love Partner: commission payable after resolution (at applicable tapering rate if contract expired);
(ii) Dispute resolved in favor of the Love Creator or full refund issued: commission canceled or reversed (regardless of tapering status);
(iii) Partial refund or adjustment: commission adjusted proportionally (tapering rate applies to adjusted amount if contract expired).

(c) Chargeback:
Commission withheld until final resolution per Annex IV Section 8.4. If resolved in Love Partner's favor, commission paid at applicable rate (100% if contract active, or tapering rate if contract expired). If resolved against Love Partner, commission permanently canceled.

7.8 Duration of Commission Relationship

7.8.1 Maintenance Condition

Commission rights persist only while Love Connector status remains active and in good standing, subject to Sections 4, 5, and 7.8.4 (tapering upon non-renewal).

7.8.2 Termination Effect

Loss of status results in immediate cessation of commission rights on future transactions (NEW referrals), with grandfathered commissions tapering per Section 7.8.4, except for previously earned amounts payable under Section 5.3.4(c).

7.8.3 Priority and Final Classification

If a transaction could trigger multiple remuneration regimes (e.g., Annex I Ambassador Program, Annex VII Referral Program, campaign incentives), Annex IV's rules and priorities prevail. Love Connector Program benefits do not stack with the General Referral Program (Annex VII) for the same user or transaction. Lovelike's reasonable, good-faith determination of the applicable remuneration regime for any transaction is final and binding for Platform purposes.

7.8.4 COMMISSION DURATION AND TAPERING UPON CONTRACT NON-RENEWAL

Note: This section applies exclusively to expiration of the Love Connector contract term (Section 2.1.2). For subscription deactivation, see Section 5.4 (immediate termination without tapering).

7.8.4.1 Commissions During Active Contract Term

While the Love Connector's contract is ACTIVE (initial 1-year term or any renewed term):

(a) Commissions on all qualifying referrals are paid at the standard rates specified in Sections 7.2-7.3 (100% of applicable commission percentage);

(b) Commissions accrue monthly and are paid per Section 2.3 (15th and last business day of each month);

(c) No tapering applies during active contract periods.

7.8.4.2 Effect of Non-Renewal (Voluntary or Involuntary Expiration)

If the Love Connector's contract EXPIRES and is NOT RENEWED (whether due to Love Connector's choice, AI Training Program opt-out affecting renewal eligibility, or other reasons):

(a) Referrals Made DURING Active Contract:

Commissions on referrals made WHILE the contract was active continue to accrue, but at REDUCED RATES as follows:

TAPERING SCHEDULE (6 MONTHS):

• MONTHS 1-2 after contract expiration:
Commission rate = 75% of standard rate
(Example: Standard 30% → Becomes 22.5% of Lovelike's net)

• MONTHS 3-4 after contract expiration:
Commission rate = 50% of standard rate
(Example: Standard 30% → Becomes 15% of Lovelike's net)

• MONTHS 5-6 after contract expiration:
Commission rate = 25% of standard rate
(Example: Standard 30% → Becomes 7.5% of Lovelike's net)

• MONTH 7+ after contract expiration:
Commission rate = 0% (payments cease entirely)

(b) Referrals Made AFTER Contract Expiration:

Referrals attempted after contract expiration do NOT generate commissions, consistent with Section 7.6.2 (AI Training Program requirement for new referrals) and loss of Love Connector status upon contract expiration.

7.8.4.3 Contract Renewal During Tapering Period

If a Love Connector's contract has expired and tapering has begun, but the Love Connector subsequently renews their contract (by reactivating AI Training Program participation and meeting all other eligibility requirements):

(a) Effect on Grandfathered Referrals:

(i) Prior referrals (from previous active period): Resume at STANDARD rates (100%, no longer tapered) for any transactions generated after contract renewal, provided:

• Referred users are still active, OR

• Referred users reactivate after Love Connector's contract renewal (commissions calculated at 100% rate from reactivation date forward)

Note: If referred user was inactive during tapering period and generated no transactions, no commissions accrued (nothing to "catch up"). 100% rate applies only to NEW transactions after renewal.

(ii) New referrals (made after reactivation): Generate commissions at standard rates per Sections 7.2-7.3;

(iii) Tapering clock RESETS: New 6-month tapering period starts if contract expires again in the future without renewal.

7.8.4.4 Rationale and Legal Compliance

(a) Contract Law Compliance:

Tapering does NOT cancel earned commissions immediately ; instead, it provides gradual transition consistent with 6-month severance-like payments.

(b) Labor Law Compliance (California Labor Code § 2751, New York Labor Law § 191):

"Commissions are wages for services performed and are earned when the services are performed."

Application: Referral service = performed at time of user signup. Commission = earned at that moment. Tapering does NOT cancel earned commissions immediately ; instead, it provides gradual transition consistent with:

• California: Schachter v. Citigroup — Commissions earned before termination cannot be forfeited immediately. 6-month tapering provides reasonable transition period.

• New York: Pachter v. Bernard Hodes Group — Commissions based on client relationships can be structured to taper upon termination, so long as clearly disclosed upfront and not a penalty for exercising legal rights.

(c) FTC Compliance (Anti-Pyramid Regulations):

Pyramid schemes are characterized by compensation deriving primarily from RECRUITING rather than RETAIL SALES, and by requiring ongoing payments to maintain earnings.

Tapering demonstrates FTC compliance:

(i) Compensation derives from actual sales activity (referred Love Partners' ongoing transactions), not from maintaining program enrollment status;

(ii) Love Connectors receive substantial value (6 months of tapered payments) even after leaving the program, proving compensation is NOT contingent on continued "membership fees" or program status;

(iii) Tapering incentivizes contract renewal (business benefit to Lovelike) while respecting Love Connectors' rights to exit without total forfeiture (anti-pyramid proof);

(iv) No penalty for privacy rights exercise (AI opt-out): Tapering is based on contract term expiration, not on AI status. Love Connectors who opt out of AI but renew contract maintain full commission rates.

Compliance: FTC v. BurnLounge, Inc., 753 F.3d 878 (9th Cir. 2014) distinguished by demonstrating income derives from sales, not enrollment.

(d) CCPA/GDPR Compliance (No Penalty for Privacy Rights Exercise):

CCPA § 1798.125: "A business shall not discriminate against a consumer because the consumer exercised any of the consumer's rights under this title, including by ... imposing penalties."

GDPR Art. 7(3): "Withdrawal of consent shall be as easy as giving consent, and shall not result in detriment to the data subject."

Application: AI Training Program opt-out does NOT trigger tapering. Tapering is triggered solely by contract term expiration / non-renewal.

7.8.4.5 Disclosure Requirements and Transparency

The tapering schedule and effects of non-renewal shall be disclosed to Love Connectors:

(a) At the time of initial Love Connector invitation (in invitation email):

"Love Connector contracts are for 1-year terms with automatic renewal. If you choose not to renew, commissions on your existing referrals will taper over 6 months (75% → 50% → 25% → 0%). Renewing your contract maintains full commission rates on all referrals."

(b) In the Love Connector onboarding materials (acceptance flow):

[MUST-READ DISCLOSURE BEFORE ACCEPTANCE]

⚠️ IMPORTANT: CONTRACT TERM AND COMMISSION TAPERING

Your Love Connector contract lasts 1 YEAR from acceptance.

What happens if you DON'T RENEW:

• MONTHS 1-2 after expiration: 75% commission rate

• MONTHS 3-4 after expiration: 50% commission rate

• MONTHS 5-6 after expiration: 25% commission rate

• MONTH 7+ after expiration: 0% (commissions stop)

What happens if you DO RENEW:

• 100% commission rate continues (no tapering)

• Contract extends +1 year

• All existing and new referrals at full rate

To renew: AI Training Program must be ACTIVE at renewal date.

☐ I have read and understood the tapering schedule above

[ACCEPT AND CONTINUE]

(c) In quarterly email summaries:

"Your Love Connector contract expires on [DATE]. Current commission rate: [100%/75%/50%/25%]. To maintain full rates, renew by [DATE] (requires AI Training Program active). Questions? Contact support."

8. COMPLIANCE AND REGULATORY CONSIDERATIONS

8.1 Federal Compliance (Informational)

Operates consistent with: FTC Act; FTC Endorsement Guides/Truth in Advertising; applicable Electronic Fund Transfers (EFTA) obligations for payouts; AML screening via payment processor; applicable consumer protection laws.

8.2 State Compliance (Informational)

Includes: Delaware law; state referral program requirements; automatic renewal notice obligations where applicable; state consumer protection laws; California Labor Code § 2751; New York Labor Law § 191.

8.3 Tax Reporting (Informational)

Commission payments may be subject to tax reporting; Love Connectors are responsible for taxes; Lovelike issues tax documentation as required; non-US Love Connectors must comply with tax treaties and local laws.

8.4 Independent Contractor Status

Love Connectors act as independent contractors, not employees, agents, partners, or franchisees.

8.4.1 Independent Contractor Safeguards (California AB5 and Similar State Laws)

To ensure Love Connectors are properly classified as independent contractors under California AB5, New York Labor Law, and similar state laws, Lovelike maintains the following safeguards:

(a) Control and Direction (AB5 Prong A):

(i) Love Connectors have complete discretion over when, where, and how they promote the Platform (no required hours, schedules, or methods);

(ii) FTC disclosure requirements and ethical promotion standards are legal compliance obligations, not employer control;

(iii) Love Connectors may accept or reject referral opportunities at will;

(iv) Lovelike does not supervise Love Connectors' day-to-day activities;

(b) Outside Usual Course of Business (AB5 Prong B):

(i) Love Connectors' primary function is marketing and referral generation, which is ancillary to Lovelike's core business (platform operation and commerce facilitation);

(ii) Lovelike employs traditional W-2 employees for core business functions (engineering, operations, customer support);

(iii) Love Connectors are not performing work typically done by Lovelike employees;

(c) Independently Established Business (AB5 Prong C):

(i) Love Connectors are encouraged to maintain independent marketing businesses serving multiple clients/platforms;

(ii) Love Connectors may promote competing platforms simultaneously (no exclusivity);

(iii) Love Connectors use their own equipment, tools, and marketing channels;

(iv) Love Connectors are responsible for their own business expenses, licenses, and insurance;

(v) Lovelike does not provide training, equipment, or office space;

(d) Additional Independent Contractor Factors:

(i) No employee benefits provided (health insurance, retirement, PTO);

(ii) No payroll tax withholding (Love Connectors receive 1099-NEC, not W-2);

(iii) No written employment contract (independent contractor agreement only);

(iv) Commission-only compensation (no guaranteed minimum wage or salary);

(v) Ability to hire assistants/subcontractors without Lovelike approval;

(e) Acknowledgment of Independent Contractor Status:

By accepting Love Connector status, you certify that:

• You understand you are an independent contractor, not an employee;

• You are responsible for all taxes, business expenses, and insurance;

• You are not entitled to employee benefits or protections;

• You may work for competing platforms and other clients simultaneously;

• You will not represent yourself as a Lovelike employee;

(f) Misclassification Dispute Resolution:

If any regulatory authority (e.g., California EDD, IRS) challenges Love Connector classification, Lovelike will:

(i) Provide documentation supporting independent contractor status;

(ii) Cooperate with the Love Connector's legal defense (if acting in good faith);

(iii) Indemnify Love Connectors for misclassification liability arising from Lovelike's conduct (not Love Connector's misrepresentation);

(g) Right to Amend Classification:

If applicable law changes or regulatory guidance indicates Love Connectors must be reclassified as employees, Lovelike may:

(i) Convert Love Connectors to W-2 employees (subject to acceptance);

(ii) Terminate Love Connector Program with 90 days' notice;

(iii) Preserve grandfathered commission rights per Section 7.6.3 and 7.8.4;

State-Specific Compliance:

• California: AB5 (2019), Dynamex Operations West, Inc. v. Superior Court (2018)

• New York: Labor Law § 511-d, Workers' Compensation Law § 2(4)

• Massachusetts: "ABC Test" per G.L. c. 149, § 148B

• New Jersey: A.B. 5395 (2019), "ABC Test"

9. DISPUTE RESOLUTION AND ENFORCEMENT

9.1 Internal Dispute Process

Follows Platform procedures: initial support; escalation; management review; determination within fifteen (15) business days where feasible.

9.2 Binding Arbitration

Disputes resolved by binding arbitration under JAMS rules in Delaware, per Section 15 of the General Terms of Service, with class/collective action waiver, reasonable discovery limits, confidentiality, and fee/cost allocations per JAMS and the Terms.

9.3 Governing Law

Delaware law and applicable US federal law govern.

10. FINAL PROVISIONS

10.1 Integration and Supremacy

In conflicts with the General Terms, the Terms control on general legal matters; this Annex governs operational program rules where not conflicting.

10.2 Entire Agreement

Forms part of the contracts applicable to Love Creators and Love Partners; acceptance implies acceptance of this Annex.

10.3 Severability

If any provision is unenforceable, the remainder remains effective.

10.4 Amendment

May be amended per the Terms' update framework (Section 20.1) and Section 6.1 above.

10.5 Effective Date and Term

Effective upon Love Connector acceptance for an initial ONE (1) YEAR term with automatic renewal under Section 2.1, until terminated per this Annex.

📋 DOCUMENT MANAGEMENT

Review Cycle:
• Regular Review: Every 12 months
• Next Scheduled Review: September 15, 2026
• Emergency Review: As needed due to legal or business changes

Notification Policy:
• Program Changes: 30 days' advance notice
• Commission Structure Changes: 60 days' advance notice
• Tapering Schedule Changes: 60 days' advance notice (applies to new contracts only, not existing grandfathered commissions)
• Status Requirements Changes: 45 days' advance notice
• Automatic Renewal Notice: 60 days' advance notice
• Emergency Changes: Immediate notice with explanation

Related Documents:
• General Terms of Service Agreement
• Annex IV -- Comprehensive Subscription, Remuneration, Payment Rules and Operational Procedures
• Love Partner Agreement
• Love Creator Program Terms
• Privacy Policy and Data Protection Terms
• Acceptable Use Policy (Annex VIII)
• AI Training Program Terms (AIMÊ Personalized)

Legal Compliance (Informational):
• Jurisdiction: Delaware, United States
• Governing Law: Delaware State Law; applicable US federal law
• Key Regulations (Examples): FTC Act; FTC Endorsement Guides/Truth in Advertising; Electronic Fund Transfer Act (as applicable); state referral program and automatic renewal statutes; California Labor Code § 2751; New York Labor Law § 191; California AB5 (independent contractor classification)
• Industry Standards: PCI DSS; AML screening via payment processors

📊 EXAMPLES (INFORMATIONAL, NON-BINDING)

The following examples illustrate typical allocations and tapering scenarios; actual rates and classifications are governed by Annex IV and applicable campaign rules. These examples are for convenience only and are not part of the binding terms of this Annex.

A) Campaign Commissions (Illustrative)

Scenario: Love Connector referred Love Partner (Brand) who contracts a campaign budget of $10,000.

Campaign Commission Calculation:

Commission by Period (if contract not renewed):

Note: Commission accrues once per campaign (one-time payment), not recurring monthly like subscription commissions.

Distribution Calculation

If Love Partner contracts 5 campaigns/year @ 10,000 each:

• Active contract: 5 × 873.87 = 4,369.35/year

• Tapering Months 1-2: 5 × 655.40 = 3,277.00/year

• Tapering Months 3-4: 5 × 436.94 = 2,184.70/year

• Tapering Months 5-6: 5 × 218.47 = 1,092.35/year

• Month 7+: 0/year

B) Subscription Commission Tapering Example

Scenario: Love Connector referred Love Partner with $200/month subscription (no promotions, full price from Month 1).

Subscription Commission Calculation (No Discounts):

Commission Amounts by Period:

Annual: $57.81 × 12 = $693.72
Tapering total: ($43.36 × 2) + ($28.91 × 2) + ($14.45 × 2) = $86.72 + $57.82 + $28.90 = $173.44

Compare to alternatives:
• Immediate forfeiture (may be restricted by applicable law
• Tapering (transition mechanism): $173.44 over 6 months ✅

Key Point: This example assumes full-price subscription with no promotions. If promotions apply (as in Section 7.3 example), commission amounts are lower during promotional period, then jump to full rate when promotions expire.

END OF ANNEX I - AMBASSADOR PROGRAM TERMS AND CONDITIONS V1.0

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