Sorry, but what he was doing wasn't illegal or against Google's TOS or your TOS. You can't not pay him and say after the fact that he broke one of your invisible rules. How the hell is he supposed to know he can't do it if it's not in your terms of service. Newsflash: In both adult and mainstream, there are superaffiliates doing that and making ridiculous money from it, and 99% of the programs they're doing it with are more than happy for it. Not that you have to be, but if it's not in your TOS, how can you possibly justify not paying him for breaking a "rule" that was nowhere to be seen on your site?