I hereby apply to become an Client Rewards Program member (Independent Business Owner (hereinafter "IBO")) of PowerMax Energy, (hereinafter "Company") marketing program.

As an IBO, I understand and agree that:

1. I am of legal age in the state in which I enter this agreement.

2. I shall become a Company IBO upon acceptance of this application by the Company. As an IBO, I shall have the right to sell the services and products offered by the Company in accordance with the Company's marketing program and statement of policy, which may be amended and changed from time to time.

3. Upon notification to IBOs, the Company, at its discretion, may amend the marketing plan, product pricing, statement of policy, etc.

4. I have carefully reviewed the Company's marketing plan, rules and regulations, and policies and procedures, and acknowledge that they are incorporated as part of this agreement in their present form and as modified from time to time by the Company.

5. The term of the Company Independent Business Ownership agreement is one year. Company IBOs, who wish to continue their Independent Business Ownerships, must apply to renew their IBO agreement annually.

6. An IBO shall be entitled to cancel participation in the marketing program at any time and for any reason upon notice to the Company. Upon notification of cancellation or termination, the sponsoring IBO or the Company will repurchase inventory and mandatory sales kit materials in Accordance with its policies as stated in the Company's marketing program and statement of policy.

7. Upon acceptance of this application by the Company, I will be an independent contractor responsible for my own business and not an employee of the Company. I will not be treated as an employee in regard to any laws covering employees, including but not limited to the Federal Insurance Contributions Act, the Social Security Act, the Federal Unemployment Tax Act, income tax withholding at source or for any federal or state tax laws. It is my responsibility to pay self-employment, state and federal income taxes as required by law.

8. I will not use the Company's trade name and/or trademark except in the advertising provided to me by the Company or in other advertising without prior written approval by the Company.

9. Any IBO, who mentors other IBOs, must fulfill the obligation of performing a bona fide supervisory, distributing and selling function in the sale or delivery of product to the ultimate consumer and in the training of those sponsored. IBO must have ongoing contact, communication and management supervision with his or her sales organization. Examples of such supervision may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, training sessions, accompanying individuals to Company training and sharing genealogy information with those sponsored. IBOs should be able to provide evidence to the Company semiannually of ongoing fulfillment of sponsor responsibilities. If an IBO is an Enroller in the marketing program entitled to Enroller bonuses, then the Enroller is obligated to the same responsibilities of supervisory, communication and training activities with respect to IBOs he or she has enrolled, irrespective of whether the Enroller is also the sponsor of those IBOs.

10. The company's program is built upon retail sales to the ultimate consumer. The company also recognizes that IBOs may wish to purchase product or service in reasonable amounts for their own personal or family use. For this reason, a retail sale for bonus purposes shall include sales to non-participants, as well as sales to IBOs for personal or family use which are not made for purposes of qualification or advancement. It is company policy, however, to strictly prohibit the purchase of product or service solely for the purpose of qualifying for bonuses or advancement in the marketing program. IBOs must fulfill published personal and mentoring downline retail sales requirements, including requisite retail sales to non-participants, as well as supervisory responsibilities, to qualify for bonuses, overrides or advancements.

11. The IBO acknowledges that IBO is a wholly independent marketing representative who establishes and services retail clients for Company products as an independent contractor. The position of IBO does not constitute either a sale of a franchise or a distributorship, and absolutely no fees have been or will be required from the IBO for the right to distribute the Company's products pursuant to this agreement. This agreement is not intended and shall not be construed to create a relationship of employer-employee, agency, partnership, or joint venture between any IBO, sponsor and/or the Company.

As an independent contractor, the IBO shall:

a. Abide by any and all federal, state, county and local laws, rules and regulations pertaining to this Agreement and/or the acquisition, receipt, holding, selling, distributing or advertising of Company products.

b. At the IBO's own expense, make, execute or file all such reports and obtain such licenses as are required by law or public authority with respect to this agreement and/or the receipt, holding, selling, distributing or advertising of Company products.

c. Be solely responsible for declaration and payment of all local, state and federal taxes as may accrue because of the IBO's activities in connection with this agreement.

12. No purchase or investment is necessary to become a Company IBO other than the purchase of an IBO sales kit which is sold “at company cost.”

13. Prior written approval from the company is required for the following

a. To advertise Company products;

b. For there to be more than one IBO in an immediate family or in one household;

c. Issuance of a position in a Company or corporate name.

14. The Company may immediately terminate an IBO who discredits the Company's name, violates any requirement contained in this Agreement, Company Policy and Procedures, or training manuals or misrepresents the Company's products or business opportunity by making claims contrary to the Company's product literature and labels or contacts without prior authorization any vendor and / or provider for reasons other than their own personal account with that vendor/provider.

15. This agreement constitutes the entire agreement between the IBO and Company and no other additional promises, representations, guaranties or agreements of any kind shall be valid unless in writing.

16. This agreement shall be governed by the laws of the state of Texas, and all claims, disputes and other matters between the parties of this agreement shall be brought in Ellis County Court, in Waxahachie, Texas, or in the U.S. District Court, for the Northern District of Texas, in Dallas, Texas.

17. I acknowledge that I have read and understand and agree to the terms set forth in this agreement.

18. This agreement is not in force until accepted by the Company.

By placing my signature above I acknowledge that I have carefully read all of the terms and conditions on all pages of this Application and Agreement together with all policies and procedures, rules and guidelines established by PowerMax Energy. I also understand that I will be compensated in the form of Bonuses and Commissions as outlined in the PowerMax Energy "Complete Compensation Plan" and that I am due no other compensation either expressed or implied same may be amended from time to time. It shall be understood and agreed that during the term of this agreement and for a period of three years (36 months) thereafter an Independent Business Owner (IBO) (Rewards Program, Fundraising Partner or Marketing Manager (MM)) will not directly or indirectly work with any reseller of electricity to the end user. Violation of this provision would result in a $100,000.00 penalty plus any applicable legal fees.

Also, it shall be understood and agreed that the Company's business relationship with its vendors, manufacturers and suppliers is confidential. An IBO either a Rewards Program, Fundraising Partner or Marketing Manager shall not contact, directly or indirectly, or speak to or communicate with any representative of any supplier or manufacturer of the Company except at a Company sponsored event at which the representative is present at the request of the Company. Violation of this regulation may result in termination and possible claims for damages if the vendor/manufacturer's association is compromised by the distributor contact.

I understand I have a three day right of rescission that includes a refund provided the initial package is returned in resalable condition and written notification is received in the PowerMax Energy office within the three days. Thereafter, I may cancel my IBO status with PowerMax Energy for one (1) full year and receive a 90% refund of only the Independent Business Owner start up if the package is returned in resalable condition with written notice of my resignation. With resignation I understand all commissions and bonuses would then be forfeited and I understand that the two previous paragraphs still apply. No refund will be issued after three days for Home Office Support.