22. Appendix 1 - Description of the Ecosystem and Utility of Tokens

The Company is a private limited company incorporated under the laws of Gibraltar acting as the issuer of the Tokens. The Company is a technology company looking to develop a decentralised platform and decentralised, crowdsourced tools empowering users, App builders, digital agencies, and business owners to improve online and offline quality of products, projects, processes, companies, brands, organisations, etc. by the creation of online quality assurance tools and ecosystem with the Tokens. The ecosystem is intended to allow Token holders the ability to access the following:

a) Enable persons to receive Tokens for reporting issues or improvements (called Contributing);

b) Enable business owners and persons to acquire the services of the Company and to reward persons in Tokens for Contributing;

c) Enable reviewers of reports to receive Tokens as rewards for reviewing and validating reports in an honest and correct manner;

d) Enable affiliates to receive Tokens to grow and develop the Hugs client base with a performance-driven approach;

e) Should a Participant transfer Tokens to other parties in any manner and under any title, the Participant shall be responsible to ensure that such transfer is in compliance with the applicable rules and regulations, and the Company shall not be held liable for any consequential loss or damages that may occur.

f) The Participant understands and accepts that the acquisition of Tokens is final and non-refundable, and the utilities thereof are, at launch, limited to those listed in this clause. The Participant acknowledges that he has no right to request a refund for any reason under this Agreement.

g) The Participant understands and accepts that the acquisition of Tokens gives a Participant an exclusive commercial right to participate in exclusive promotions for HUGS Token holders. At no time shall the Tokens confer any Participant or Token holder with any voting right, ownership, or equity in the Company.

When the platform ecosystem is created, it will be based on the Polygon Network. Prior to the Token Sale, the Company will create a Polygon ERC-20 token, which maintains a ledger that maps Polygon addresses to Token balances and implements this.

The Company reserves the right to modify features, functionalities, or development plans for any products or services that it may make available to Participants and Token holders at its sole and absolute discretion.