CHAPPS Official Enrollment Contract

Effective Date: ___________________

This Corporate Enrollment & Service Agreement (the "Agreement") is entered into as of the Effective Date set forth above, by and between:

CHAPPS, the Clockable Hours Application Pay System, a proprietary pay-management framework and platform developed and operated by Larry Pinson Sr. (hereinafter referred to as "CHAPPS" or "Service Provider"); and

The company, organization, or employer identified in the enrollment form attached hereto and incorporated herein by reference (hereinafter referred to as the "Employer" or "Client").

CHAPPS and the Employer are sometimes referred to individually as a "Party" and collectively as the "Parties."

Recitals

WHEREAS, CHAPPS has developed a proprietary pay-management system and framework known as the Clockable Hours Application Pay System, which applies a 168-hour scheduling and pay-allocation methodology, including a 3-Bid scheduling structure, 10/10/10/10 pay-split protocol, and a self-funded retirement framework designed to eradicate wage poverty and create equitable workplace compensation structures; and

WHEREAS, the Employer desires to enroll in the CHAPPS platform and implement said framework across its enrolled workforce on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants, representations, and obligations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

CHAPPS System Overview & Operational Framework

By executing this Agreement, the Employer acknowledges that it has read, understood, and agrees to implement the CHAPPS System in accordance with the following operational framework. This Overview is not a summary — it is a binding description of the system the Employer is contracting to implement.

A. The 168-Hour Foundation. Every week contains exactly 168 hours — a mathematical constant, not an estimate. Traditional payroll systems account for only 40 of those hours and ignore the rest. The CHAPPS System accounts for all 168, structured as follows: (i) 40 hours are designated as Clockable Work Hours; and (ii) 128 hours are designated as Rest & Recuperation (RR) hours — the time that is legally and structurally necessary for a worker to recover, prepare, and maintain their capacity to perform their duties. Enrollment in CHAPPS constitutes the Employer's formal acknowledgment of the worker's full 168-hour week as part of the employment relationship.

B. The 10/10/10/10 Pay Split. Of the 40 Clockable Work Hours each week, CHAPPS structures compensation into four equal, non-overlapping categories. Each category carries different tax treatment and a distinct purpose:

1. 10 Hours — Taxable Wage: The worker's base take-home pay, subject to applicable federal, state, and local income tax withholding. This is the only taxable portion of the worker's compensation under CHAPPS.
2. 10 Hours — Benefits Package: Non-taxable compensation allocated to the worker's benefits structure, including health, dental, vision, and other applicable coverage. 10% of the quarterly benefits accumulation (120 hours per quarter) is remitted to CHAPPS as the platform contribution (see Section D below).
3. 10 Hours — Stipend: Non-taxable living allowance allocated to the worker for cost-of-living, transportation, and work-related expenses. This amount is not wages and is not subject to payroll taxes.
4. 10 Hours — Pay Future (Next Year's Salary): Non-taxable contributions that accumulate each week in the worker's own Pay Future pot. These hours are permanently owned by the worker and are never surrendered, forfeited, or deducted. They fund the worker's ongoing salary in perpetuity as described in Section C below.

Under this structure, only 10 of the worker's 40 Clockable Hours are subject to taxation, reducing the worker's effective tax burden by up to 75% compared to a traditional all-taxable wage structure — while total compensation increases. The Employer agrees to document and apply the 10/10/10/10 split to all Enrolled Employees' compensation records every pay period.

C. The Pay Future — The Endless Self-Payment Mechanism. The 10 Pay Future hours accumulated every week are not withheld, reduced, or surrendered. They build in the worker's own Pay Future pot — entirely owned by the worker, separate from any employer fund or government program. Every 12 weeks (one CHAPPS quarter), those 120 accumulated hours release back into the worker's active pay — non-taxable, worker-owned, and immediately available. This release cycle repeats every quarter, indefinitely, for the lifetime of the worker's enrollment and beyond into retirement.

The longer a worker remains enrolled in CHAPPS, the larger their accumulated Pay Future pot becomes. Over a full career, the worker builds an endless, self-sustaining salary stream that continues paying them in retirement — funded entirely by their own prior labor contributions, with no dependency on a government pension, a 401(k) market, or an employer promise. No legislative action can cut it. No market crash can diminish it. It is the worker's own hours, returned to the worker, forever. The Employer agrees never to interfere with, redirect, claim ownership of, or restrict the worker's Pay Future accumulation.

D. The 120-Hour Quarterly Benefits Contribution & CHAPPS Fee. Each quarter, the worker accumulates 120 hours of non-taxable Benefits (10 hrs/week × 12 weeks). Of those 120 quarterly benefits hours, ten percent (10%) is remitted to CHAPPS to fund the ongoing administration, bid system operations, platform maintenance, and advocacy work of the CHAPPS movement. This CHAPPS Contribution is drawn from the non-taxable Benefits allocation — not from the worker's taxable wage, stipend, or Pay Future pot. It does not reduce the worker's take-home pay. For corporate enrollments, this 10% is paid by the Employer on behalf of each Enrolled Employee based on the equivalent value of 10% of the employee's quarterly gross earnings, as further described in Section 4.

E. Hour Accumulation Over a Career. The CHAPPS system is designed to reward longevity. A worker's Pay Future pot grows with every week of enrollment. There is no cap on accumulation. A worker enrolled for 10 years has built 10 years of pre-funded salary. A worker enrolled for 30 years has built a lifetime income stream — fully self-funded, entirely non-taxable, and immune to any external interference. The system is specifically designed so that every worker, regardless of industry, achieves financial independence through the structured accumulation of their own working hours.

F. The 3-Bid Scheduling System — Structural Elimination of Overtime. CHAPPS employs a three-bid scheduling rotation that covers every day of the week with four workers and zero overtime. The three bid types are:

1. Bid 1 — 7-Day Bid (56 hours): Worker 1 covers Monday through Friday with N/S (Non-Scheduled) days on Saturday and Sunday (Days 6 & 7).
2. Bid 2 — 7-Day Bid (56 hours): Worker 2's N/S days rotate to a different pair of days within the 7-day cycle.
3. Bid 3 — 6-Day Bid (48 hours): Worker 3 works 6 days with N/S days on Days 6 & 7 of their personal rotation.

A fourth worker (Worker 4) covers all three bid N/S combinations, ensuring zero gaps in coverage across every day of the week. Under this structure: each worker receives exactly 2 Non-Scheduled days per week; all operational positions are covered at all times; and no overtime is ever incurred or owed — regardless of operational demand, seasonal volume, or management decisions — when the bid schedule is properly implemented. Overtime is not a feature of the CHAPPS System; it is a product of poor scheduling. CHAPPS eliminates the conditions that produce it.

G. Postal Workers — Pay Period & Scheduled Day Provisions (USPS / Mail Carriers). For any Enrolled Employee employed by or performing work within the United States Postal Service (USPS) or any postal carrier operation, the following provisions apply and supersede any conflicting traditional USPS payroll practice:

1. 14-Day Pay Period Is Not Applicable. The traditional assertion that USPS letter carriers are paid on a 14-day (bi-weekly) cycle is not accurate and does not apply to workers enrolled in CHAPPS. The 14-day interval is an administrative convenience of the legacy payroll system — it does not reflect the true structure of the worker's compensation. Under CHAPPS, all carrier compensation is structured on the 168-hour weekly framework with quarterly settlement. Carriers, supervisors, and employing entities are hereby placed on formal notice: the 14-day bi-weekly pay model does not govern any worker enrolled in the CHAPPS System.
2. No Overtime on a Scheduled 24-Hour Day. Under the CHAPPS framework, if a postal worker is scheduled to work a 24-hour coverage day as part of their officially submitted and approved bid rotation, that day is a pre-authorized, planned bid day — not an overtime occurrence. No overtime premium is owed, claimable, or payable for any shift — including a 24-hour shift — that falls within the worker's approved CHAPPS bid schedule. Overtime under CHAPPS is structurally impossible when proper bid scheduling is in place. Any attempt by an employer or management to characterize a pre-scheduled CHAPPS bid day as "overtime" for the purpose of reducing worker compensation is a material breach of this Agreement.
3. Mandatory Rest & Recuperation. All postal Enrolled Employees must receive a minimum of 16 consecutive hours of Rest & Recuperation between shifts. For letter carriers, the clock-in window is 12:00am to 8:00am, with 8:00am as the latest permitted clock-in. These RR provisions are non-negotiable and non-waivable under any circumstances.
4. Sunday & Holiday Delivery Schedule. Sundays are designated as Parcel, Medicine, and Express Mail delivery days only — separate from the regular 5-day letter route. On the six major holidays (New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas), regular letter routes are cancelled and carriers work the Sunday-equivalent schedule with full compensation. On non-major holidays (5 per calendar year), carriers deliver their regular route and receive 8 additional hours of holiday pay built into their hourly rate.

1. Definitions

1. "CHAPPS System" means the proprietary 168-hour Clockable Hours Application Pay System framework, bid platform, scheduling methodology, pay-split protocols, retirement structures, and all associated documentation, software, tools, and intellectual property owned by Larry Pinson Sr.
2. "Enrolled Employee" means any individual employed by the Employer who is registered under the Employer's corporate CHAPPS account and subject to the CHAPPS pay framework.
3. "Gross Salary" means the total pre-tax compensation paid or owed by the Employer to an Enrolled Employee during a given pay period, before any deductions.
4. "CHAPPS Contribution" means the 10% fee calculated on the Gross Salary of each Enrolled Employee remitted by the Employer to CHAPPS as further described in Section 4.
5. "Pay Period" means the payroll period as designated under the CHAPPS fiscal calendar, which is structured on a quarterly basis aligned to the 168-hour framework.
6. "Authorized Representative" means the individual signing this Agreement on behalf of the Employer, who represents and warrants that they have full legal authority to bind the Employer to this Agreement.

2. Enrollment & Activation

1. Enrollment Fee. Upon execution of this Agreement, the Employer shall pay CHAPPS a one-time, non-refundable corporate enrollment fee of One Hundred Dollars (US $100.00) (the "Enrollment Fee"). The Employer's account will not be activated until the Enrollment Fee has been received and confirmed by CHAPPS.
2. Scope of Enrollment. The Employer may enroll one or more employees under its corporate CHAPPS account. Each Enrolled Employee must individually acknowledge and agree to the applicable employee terms before being enrolled under the Employer's account.
3. Account Activation. Upon payment of the Enrollment Fee and completion of all required enrollment documentation, CHAPPS will activate the Employer's account and provide access to the CHAPPS System and platform within five (5) business days.

3. Services Provided by CHAPPS

In exchange for the Enrollment Fee and the ongoing CHAPPS Contributions, CHAPPS shall provide the Employer with:

1. Full access to the CHAPPS 168-hour pay framework and its implementation methodology;
2. The CHAPPS Bid Platform, enabling the Employer's workforce to bid on positions, schedules, and locations in accordance with the 3-Bid scheduling structure;
3. The 10/10/10/10 pay-split documentation and pay period reporting tools;
4. CHAPPS-guided retirement contribution framework for Enrolled Employees;
5. Ongoing administrative support, system maintenance, and access to CHAPPS educational and operational resources;
6. Dedicated CHAPPS account management for the Employer's corporate account.

4. CHAPPS Contribution Obligation

1. Rate. For each Pay Period during the term of this Agreement, the Employer shall remit to CHAPPS an amount equal to ten percent (10%) of the Gross Salary paid or owed to each Enrolled Employee during that Pay Period (the "CHAPPS Contribution").
2. Payment Timing. The CHAPPS Contribution for each Pay Period shall be due and payable to CHAPPS within fifteen (15) calendar days following the close of that Pay Period.
3. Payment Method. CHAPPS Contributions shall be remitted by the method designated by CHAPPS (e.g., ACH transfer, check, or online payment portal). CHAPPS reserves the right to update its accepted payment methods upon thirty (30) days' written notice to the Employer.
4. Late Payments. Any CHAPPS Contribution not received within fifteen (15) calendar days of the due date shall accrue interest at the rate of one and one-half percent (1.5%) per month (or the maximum rate permitted by applicable law, whichever is lower) on the outstanding unpaid balance until paid in full. CHAPPS also reserves the right to suspend the Employer's account access for failure to remit timely payment.
5. Audit Rights. CHAPPS shall have the right, upon reasonable written notice and no more than once per calendar year, to audit or request documentation sufficient to verify the accuracy of the CHAPPS Contributions remitted by the Employer. The Employer agrees to maintain accurate payroll records for all Enrolled Employees for a minimum of five (5) years and to make such records available to CHAPPS upon request.
6. Source of Contribution. The CHAPPS Contribution is the sole financial obligation of the Employer and shall not be deducted from the Gross Salary of any Enrolled Employee. The Employer shall bear the full cost of the CHAPPS Contribution independent of employee compensation.

5. Employer Obligations & Representations

1. The Employer shall implement the CHAPPS pay framework in good faith for all Enrolled Employees in accordance with CHAPPS guidelines and documentation;
2. The Employer shall accurately disclose the identity, compensation, and employment status of all Enrolled Employees;
3. The Employer shall comply with all applicable federal, state, and local employment, payroll, and tax laws and regulations independently of this Agreement;
4. The Employer represents and warrants that it has all necessary authority and legal capacity to enter into this Agreement;
5. The Employer shall maintain the confidentiality of its CHAPPS account credentials and shall notify CHAPPS promptly of any unauthorized access;
6. The Employer shall not sublicense, resell, or otherwise transfer access to the CHAPPS System to any third party without the prior written consent of CHAPPS;
7. The Employer shall not reverse engineer, decompile, copy, or attempt to replicate the CHAPPS framework or intellectual property.

6. Intellectual Property

All intellectual property rights in and to the CHAPPS System — including without limitation the 168-hour framework, 3-Bid scheduling methodology, 10/10/10/10 pay-split protocol, retirement contribution structure, all related software, documentation, branding, and materials — are and shall remain the exclusive property of Larry Pinson Sr. and CHAPPS. This Agreement grants the Employer a limited, non-exclusive, non-transferable, revocable license to use the CHAPPS System solely for the Employer's internal business operations and for the benefit of its Enrolled Employees during the term of this Agreement. No ownership interest is conveyed by this Agreement.

7. Confidentiality

Each Party agrees to hold in confidence and not to disclose to any third party any proprietary or confidential information of the other Party obtained in connection with this Agreement, except as required by applicable law or with the prior written consent of the disclosing Party. This obligation shall survive termination of this Agreement for a period of five (5) years.

8. Disclaimer of Warranties

THE CHAPPS SYSTEM IS PROVIDED "AS IS" AND "AS AVAILABLE." CHAPPS MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. CHAPPS DOES NOT WARRANT THAT THE SYSTEM WILL BE UNINTERRUPTED, ERROR-FREE, OR FREE FROM SECURITY VULNERABILITIES.

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL CHAPPS, LARRY PINSON SR., OR ANY OF THEIR REPRESENTATIVES BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, LOST DATA, OR BUSINESS INTERRUPTION, ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE USE OF THE CHAPPS SYSTEM, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN ALL CASES, CHAPPS'S AGGREGATE LIABILITY TO THE EMPLOYER SHALL NOT EXCEED THE TOTAL ENROLLMENT FEE AND CHAPPS CONTRIBUTIONS PAID BY THE EMPLOYER IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

CHAPPS is not a law firm, tax advisor, or licensed financial adviser. Nothing in the CHAPPS System or this Agreement constitutes legal, tax, accounting, or financial advice. The Employer is solely responsible for compliance with all applicable laws regarding its payroll, tax withholding, benefits, and employment obligations. The Employer is advised to consult qualified legal and financial counsel.

10. Indemnification

The Employer shall indemnify, defend, and hold harmless CHAPPS and Larry Pinson Sr., and their respective representatives, from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or related to: (a) the Employer's breach of this Agreement; (b) the Employer's violation of any applicable law; (c) any claim by an Enrolled Employee or third party relating to the Employer's implementation of the CHAPPS framework; or (d) the Employer's gross negligence or willful misconduct.

11. Term & Termination

1. Term. This Agreement shall commence on the Effective Date and shall continue until terminated by either Party as provided herein.
2. Termination by Employer. The Employer may terminate this Agreement upon thirty (30) days' prior written notice to CHAPPS. The Enrollment Fee is non-refundable upon any termination. All CHAPPS Contributions accrued through the termination date remain due and payable.
3. Termination by CHAPPS. CHAPPS may terminate this Agreement immediately upon written notice to the Employer for: (i) material breach of this Agreement that remains uncured after ten (10) days' written notice; (ii) non-payment of the Enrollment Fee or any CHAPPS Contribution overdue by more than thirty (30) days; (iii) the Employer's insolvency, bankruptcy, or assignment for the benefit of creditors; or (iv) conduct that CHAPPS reasonably determines to be harmful to the CHAPPS brand, mission, or operations.
4. Effect of Termination. Upon termination, the Employer's license to use the CHAPPS System ceases immediately. All outstanding CHAPPS Contributions and any accrued interest shall become immediately due and payable. Sections 6, 7, 8, 9, 10, and 14 shall survive termination.

12. Dispute Resolution

The Parties agree to attempt to resolve any dispute arising under or relating to this Agreement through good-faith negotiation first. If the dispute cannot be resolved within thirty (30) days of written notice from one Party to the other, the dispute shall be submitted to binding arbitration administered under the rules of the American Arbitration Association (AAA) before a single arbitrator. The arbitration shall be conducted in Cook County, Illinois. The decision of the arbitrator shall be final and binding and may be entered as a judgment in any court of competent jurisdiction. Nothing herein prevents either Party from seeking injunctive relief in a court of competent jurisdiction to prevent irreparable harm.

13. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois, without regard to its conflict-of-law principles. The Parties irrevocably consent to the exclusive jurisdiction and venue of the state and federal courts located in Cook County, Illinois for any proceeding not subject to arbitration under Section 12.

14. General Provisions

1. Entire Agreement. This Agreement, together with the enrollment form incorporated by reference, constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous understandings, agreements, representations, and negotiations.
2. Amendments. CHAPPS may update the terms of this Agreement upon thirty (30) days' written or electronic notice to the Employer. Continued use of the CHAPPS System after the notice period constitutes acceptance of the updated terms.
3. Severability. If any provision of this Agreement is held invalid or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid and enforceable, and the remaining provisions shall continue in full force and effect.
4. Waiver. No failure or delay by either Party in exercising any right shall constitute a waiver of that right.
5. Assignment. The Employer may not assign this Agreement or any rights hereunder without CHAPPS's prior written consent. CHAPPS may assign this Agreement in connection with a merger, acquisition, or sale of substantially all of its assets.
6. Notices. All notices under this Agreement shall be in writing and sent to CHAPPS at chappsbypinsonsr@gmail.com or (708) 765-6878, and to the Employer at the contact information provided in the enrollment form.
7. Electronic Signatures. The Parties agree that electronic signatures and electronic records shall be valid, binding, and enforceable to the same extent as handwritten signatures and paper records.
8. Force Majeure. Neither Party shall be liable for delays or failures caused by events beyond its reasonable control, including acts of God, natural disasters, government actions, or pandemics, provided the affected Party provides prompt written notice.

15. Signatures

By signing below, the Authorized Representative of the Employer represents and warrants that: (i) they have read and fully understand this Agreement; (ii) they have the legal authority to execute this Agreement on behalf of the Employer; and (iii) the Employer agrees to be bound by all of its terms and conditions.