First of All..

1. Freelancing is not valid here.
2. In the letter he received, is it 1% of profits or 1% of total contract amount. If its profits, he gets nada.
3. Even if its total amount, unless its in millions, he gets nil coz he will be paying more for breaking the law and working outside his sponsored company.
4. Hes got a job and has given up freelancing, let bygones be bygones.
5. Plz dont insult commentors by totally ignoring or straight out negating their comments. While it wont get you kicked out, your next qn is likely to remain unanswered.