Effective Date: April 1st, 2024

1. Method of Calculating Payouts to Creators

1.1 Payouts made to each Creator for selling services (subscription services) (“Payouts”) are calculated as the sum of the Creator’s amount of contribution per user of a class subject to the monthly settlement of account, obtained using the following formula:

- Creator Contribution = RSP x Class Playback Time (%) x Service Plan Rate (%)

- RSP (Revenue Sharing Pool) = Subscription Service Fee x Service Fee Rate (50%)

- Percentage of Playback Time (%) =

Provided, however, play of class videos that are provided free of charge, in whole or in part, shall not be included when calculating the Percentage of Enrollment Time (%).

*The subscription service fee (“Service Fee”) refers to the amount paid by the user for the use of subscription services and does not include amounts not actually paid due to promotional discounts, use of coupons or points, etc. The Service Fee is subject to change from time to time.

1.2 The Service Plan Rate is as provided below:

1.3 The Subscription Service Fee of a user that did not play any portion of the class after subscribing to the subscription service will not be included in the RSP.

1.4 Payouts for classes that are sold individually shall be calculated in accordance with a separate contract.

1.5 Rewards from the Company’s affiliate program may be paid in addition to the Payout. Fees for the usage of works (e.g., fees for use of music) payable to the copyright owner (including companies entrusted with the management of copyrights) or holder of neighboring rights, etc. and fees for the usage of personal identity marks, etc. may be deducted from the Payouts according to class type and service plan.

2. Payout Statement Notification Date

Starting with April 2024 settlement, the Company will notify the first Payout details within 4 months from the initial class launch date (the date of any chapter release, excluding previews ) and notify any subsequent Payout details on the last business day of every month thereafter. The Creator must provide written consent within 1 business day from the date of receipt of the Payout details. The Company will also provide a separate notice to individual Creators that the Creator’s failure to deliver timely consent will be deemed that the Creator consented to the Payout details. Accordingly, a Creator’s consent to the Payout details will be assumed if the Creator fails to deliver its consent in time.

3. Account Information and Payment Date

Starting with 2024 April settlement, the Company will initiate remittance of the applicable Payouts by wire transfer to the Creator’s bank account registered in the Creator Center within 90 calendar days from the payout statement notification date. The Company may request the Creator to issue documents such as tax invoices for accounting purposes or compliance with the relevant laws, in which case, the Company may withhold payments until the Creator issues the requested document. After the Creator submits the document, the settlement amount will be paid on the next settlement date.

4. Minimum Payouts Amount

Starting with March 2024 settlement, the Payout amount will be paid only when the accumulated Payout amount exceeds following base unit of local currency.

Korean Won: KRW 100,000

U.S. Dollar: USD 100

Japan Yen: JPY 10,000

5. Miscellaneous

Payouts to Creators residing outside of the Republic of Korea may be made by the Company’s local subsidiary, and the remittance fees and transaction fees shall be borne by the Company. Inbound wire transfer fees for bank accounts outside of Korea, and taxes in accordance with relevant local laws shall be borne by the Creator.