TERMS OF SERVICE FOR SUPPLY OF ELECTRICITY (“Residential”and “Small Non- Residential”

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Application: The Terms of Service set forth below shall apply to (i) a residential customer, as defined in Section 25.474 http://www.puc.state.tx.us/rules/subrules/electric/25.474/2 5.474.pdf (of the Public Utility Commission of Texas (“PUCT”) Substantive Rules Applicable to Electric Service Providers (the “PUCT Rules”) (such customer being a “Residential Customer Service: Upon the execution of this agreement, Mega Energy, LP (“Seller”), here in stated “Mega” agrees to supply the full electricity requirements of the customer (“Buyer”) facilities (identified by the ESIID number) listed on the “Pricing Appendix”. Seller will invoice Buyer on a monthly basis for the electricity supply (“Energy Charges”), transmission and distribution costs charged by the Transmission and Distribution Service Provider (“TDSP”) and appropriate taxes. Buyer agrees to accept service from Seller as its exclusive provider of electricity for the term of the agreement and to pay the associated invoices. Billing and Payment: Buyer will be billed on a monthly basis. The service period associated with each invoice will be approximately thirty (30) days and will be based on the TDSP meter read cycle for the Buyer's facilities. Payment is due upon receipt. Payment will be past due if not received by Seller within sixteen (16) days following the date the bill was issued unless such date is not a business day, in which case payment shall be due on the next business day. Buyer will pay a five percent (5%) penalty on past due balances. Level or average payment plans are available to buyers not currently delinquent in payment to the seller. The seller may collect unrecovered costs from a customer annually or upon termination of service to a customer. The Seller will refund any overrecovered amounts to customers annually, or upon termination of service to the customer. Payment allocation on delinquent accounts, shall be first applied to the oldest balance before any allocation made on current amounts due. When there is no longer a balance due for electric service, any payment made will be applied to all other balances owed (i.e. administrative fees, if applicable).The Seller may initiate its normal collection activity if a customer fails to make a timely payment according to such a plan. While Nueces Electric Cooperative consumers have the choice of receiving one bill from NEC for its delivery and Mega’s power supply charges or two separate bills from each company, Mega only offers the two bill option. NEC area consumers will receive two billsone from Mega Energy, LP and one from NEC – and both bills must be paid. Bill payment assistance and rate reduction programs may be available to customers who have severe financial hardships and temporarily my be unable to pay their bills. Budget Billing Program: Mega Energy, LP offers a

budget billing program (the “Program”) that allows qualified customers to pay an equal budget bill amount each month subject to the following terms. To qualify for the Program, you cannot currently be delinquent in payments to Mega Energy, LP. The budget bill amount is calculated using the last twelve (12) months’ usage history at the service address, if available, scaled by a representative annual growth factor of four percent (4%) or more, as determined by Mega Energy, LP for the initial 12-month term on the Program, multiplied by your current price per kWh, added to the anticipated pass-through charges for the upcoming twelve (12) months, plus the Mega Energy, LP customer base charge for the upcoming twelve (12) months, plus any applicable taxes or fees, all divided by twelve (12). You will pay this amount each month for the next twelve (12) months. If less than twelve (12) months’ usage history is available for the service address, Mega Energy, LP will project the budget bill amount. You are also responsible for paying any non-recurring charges from your TDU in addition to your budget bill amount. You will receive a statement with your calculated budget bill amount after you are accepted into the Program. You are responsible for paying the budget bill amount each billing cycle by your bill due date, even if your bill shows a credit balance. The balance on your invoice is the total amount you owe Mega Energy, LP, and must be paid in full if you opt out of the program or if you fail to remit your full budget bill payment by the bill’s due date, or if your service is terminated. If you fail to remit your full budget bill amount by your bill’s due date, you will be subject to disconnection (including all associated charges). Mega Energy, LP may modify your budget bill amount at any time to reflect changes in your usage or for other authorized reasons. Effective with the commencement of each subsequent twelve (12) month period during the Program, Mega Energy, LP may calculate a new budget bill amount in the manner provided above. Before beginning your next twelve (12) months on the Program, Mega Energy, LP may send you an invoice for any under-recovered amounts or any other outstanding amounts and require you to bring your account balance to zero. Mega Energy, LP shall credit your account for any over-recovered amounts during the prior twelve (12) month period after completion of that twelve (12) month period after completion of that twelve (12) month period. You may opt out of the Program at any time by paying your full balance due as shown on your invoice and providing written notification of your desire to be removed from the program to the following address: Mega Energy, LP; 2800 Post Oak Blvd., Ste 111 Houston, Texas 77056; Attention: Budget Billing, or you may opt out via email by sending notice to info@mymegaenergy.com. You may also contact customer service at: (713) 771-5506 or toll-free (866) 6876342 (outside Houston). Also, if you or a member in your

Mega Energy, LP 2800 Post Oak Blvd., Ste. 111 Houston, Texas 77056 Phone: 713-771-5506 Toll Free: 1-866-OUR-MEGA Fax: 713-771-5359
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TERMS OF SERVICE FOR SUPPLY OF ELECTRICITY (“Residential”and “Small Non- Residential”)

household qualify, you may be eligible for assistance from Lite-Up Texas. You may either call 1-866-454-8387or visit the website at http://www.puc.state.tx.us/ocp/assist/liteup/index.cfm for further information about this program. Deposits: Seller reserves the right to request a deposit prior to the date on which all of Buyer’s facilities have switched to Seller according to the records of the Electric Reliability Council of Texas (“ERCOT”) (the “Switch Date”). Buyer reserves the right to refuse payment of the deposit and cancel the agreement without penalty, prior to the submission of the switch by Seller. A Customer may demonstrate creditworthiness and avoid paying and initial deposit by meeting any of the following criteria, (1) a good credit rating or report with your previous energy company or a consumer reporting agency and such proof or written reference can be provided to us as defined by the Federal Trade Commission; 2) You or your spouse are over the age of 65 and can provide proof of age via a driver's license or state ID; 3) You have not been late paying an electric bill more than once during the last year; 4) You are a victim of family violence and can send us a certification letter developed by the Texas Council on Family Violence as evidence; 5) You are considered medically indigent and can send us the proper documentation each year you are eligible; or 6) You haven’t had your electric service terminated or disconnected for not paying a bill during the last year of service. For customers who enroll more than one premise/Electric Service Identifier (ESI-ID) with us, we may require a security deposit for each premise/ESI-ID. If Buyer is delinquent in payment more than once in a twelve (12) month period or more than twenty-five (25) days late in paying any one invoice, Seller may request a deposit. In order to request the return of a deposit, please contact our office Monday – Friday, 9 am – 6pm CST, or you may email us at billing@mymegaenergy.com. A deposit may be held by the Buyer and refunded to the customer by request when the customer has paid bills for 12 consecutive residential billings or for 24 consecutive non-residential billings without having any late payments. http://www.puc.state.tx.us/rules/subrules/electric/25.478/2 5.478.pdf The deposit will not exceed one-sixth of the estimated annual billings and may be provided by Buyer in the form of cash or a letter of credit in a form and from an issuer acceptable to Seller. Cash deposits will accrue interest at the rate specified by the PUCT if held for more than thirty (30) days. In accordance with Section 25.478(e)(3) http://www.puc.state.tx.us/rules/subrules/electric/25.478/2 5.478.pdf of the PUCT Rules, if Buyer qualifies for the rate reduction program criteria set forth in Section 25.454 http://www.puc.state.tx.us/rules/subrules/electric/25.454/2 5.454.pdf of the PUCT Rules, any deposit exceeding fifty dollars ($50) may be made in two (2) equal payments.

Any deposit will be returned upon request following the closing of the Buyer's accounts and the payment of any outstanding invoices Price and Term: Under our variable price product,the price you will pay for electricity is a variable price as provided in the Electricity Facts Label (EFL). For usage received from the TDSP for less than 1000 kWh, there will be a base fee of $ 12.95 billed to you for that service period. Your actual price for electricity will vary based on your actual electricity usage and will be shown on each monthly statement. The variable price stated on the EFL is exclusive of State and local taxes and the State miscellaneous gross receipts tax reimbursement, if applicable to your premise. You agree to pay nonrecurring fees charged by the transmission and distribution service provider (TDSP) that are necessary to implement electric service to you. Also, you agree for the purpose of a self selected switch outside of your normal meter read to pay a one time non-recurring fee. In addition, you may be required to pay nonrecurring fees and charges, including, but not limited to, fees and charges related to disconnecting, reconnecting, or maintaining electric service or equipment. Charges for required, nonrecurring fees will be listed as a separate line item on your monthly bill. All bills for electric service will include applicable federal, state, and local taxes. Tax-exempt customers must provide us with appropriate exemption certificates before assessment and collection of taxes can be waived. For additional price information, see the attached “Rate Appendix.” The term will begin on the date of meter read occurrence and will continue on a month to month basis until terminated by you or us, as permitted under this Agreement. Except for price changes allowed by law or regulatory action, the variable price stated in the EFL is the price that will be applied during your first billing cycle. Such variable price will not increase by more than 30% from month-tomonth. The price applied in your first billing cycle may be different than the price stated in the EFL if (1) there are changes to TDSP Delivery Charges or TDSP surcharges; (2) there are changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity (TRE) administrative fees; or (3) there are changes resulting from federal, state, of local laws that impose new or modified fees or costs on us that are beyond our control. Pricing features and product details of our month-to-month variable price product can also be changed if we provide at least fourteen (14) days prior written notice to you of such change (unless the change is beneficial to you, in which no prior notice will be provided). Early Termination: If: (i) Buyer switches the facilities listed on the Pricing Appendix away from Seller prior to end of the agreement term, or (ii) Buyer fails to remit

Mega Energy, LP 2800 Post Oak Blvd., Ste. 111 Houston, Texas 77056 Phone: 713-771-5506 Toll Free: 1-866-OUR-MEGA Fax: 713-771-5359
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TERMS OF SERVICE FOR SUPPLY OF ELECTRICITY (“Residential”and “Small Non- Residential”)

payment to Seller in accordance with the Billing and Payment section or deliver a deposit in accordance with the Deposits section, Seller may terminate this agreement, instruct the TDSP to disconnect electric service to Buyer’s facilities in accordance with Section 25.483 http://www.puc.state.tx.us/rules/subrules/electric/25.483/2 5.483.pdf of the PUCT Rules. Prior to disconnecting electric service, Seller will provide Buyer proper notification and an opportunity to avoid disconnection by paying outstanding invoices or delivering an outstanding deposit. Under this agreement, the Buyer may at any time cancel and not be penalized. Force Majeure: Seller will make commercially reasonable efforts to supply electricity, but does not guarantee a continuous supply of electricity. Buyer acknowledges that certain events outside of Seller's control (“Force Majeure Events”) may result in service interruption. Buyer agrees that Seller shall not be held liable for Force Majeure Events including, but not limited to: Acts of God, acts of any court or government authority, accidents, strikes, labor disputes, required maintenance work, inability to access the TDSP, nonperformance by the TDSP, or any other cause beyond Seller’s control. Additional Charges and Fees: Should Seller, due to Buyer's delinquency, send a past due letter in the form of a disconnect notice, Buyer will be charged a penalty in an amount (i) five percent (5%) of all past due amounts. In addition, there will be a forty dollar ($40) charge for the first check returned due to non-sufficient funds; subsequent returned checks will result in a forty-five dollar ($45) fee, (ii) applicable fees for payments processed via the internet will be $5.95 and over the phone one time payments called into Mega Energy, LP. will be $9.95, (iii) applicable fee for residential premises for disconnection of services not to exceed $70.00, and or (iv) one time nonrecurring connection fee. All fees are not applicable to any priority service order request. Should Seller use a third party to collect past due balances on closed accounts, there will be a thirty percent (30%) collections surcharge added to the total collections amount due. In addition, any duplicate request for bills, Letter of Credit History, and any Disconnect Notice generated on an account at the fault or request of the customer; said account shall be assessed a fee of $3.95. If Buyer's refusal to pay legitimate invoices requires Seller to take legal action and Seller's claims are upheld, Buyer agrees to pay Seller's reasonable and necessary legal costs and attorneys’ fees associated with such action. Regulatory Change: The price and terms of this agreement are based on the laws, rules, tariffs and protocols in place at the time of execution. If, during the term of this agreement, the PUCT, ERCOT, or any other

government body or agency with jurisdiction over the Texas electricity market approves changes which impact the cost to provide electricity service to the Buyer's facilities, Seller reserves the right to adjust the price and terms accordingly pursuant to PUCT Rule 25.475(e) http://www.puc.state.tx.us/rules/subrules/electric/25.475/2 5.475.pdf. Limitations of Liability: UNLESS OTHERWISE EXPRESSLY PROVIDED HEREIN, THE LIABILITY OF THE PARTIES HEREUNDER WILL BE LIMITED TO DIRECT ACTUAL DAMAGES AS THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES AT LAW OR IN EQUITY ARE WAIVED. NEITHER PARTY WILL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, INCLUDING LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, WHETHER IN TORT, CONTRACT OR OTHERWISE. THESE LIMITATIONS WILL BE WITHOUT REGARD TO CAUSE, INCLUDING THE NEGLIGENCE OF ANY PARTY. Representations and Warranties: The electricity sold under this agreement will meet the quality standards of the applicable local TDSP and will be supplied from a variety of sources. SELLER MAKES NO REPRESENTATIONS OR WARRANTIES OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT, AND EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Buyer represents that it is entering into this agreement as principal and not as agent for any other party and that the person signing this agreement on behalf of Buyer has the authority to bind Buyer to this agreement. BUYER REPRESENTS AND WARRANTS THAT IT IS A RESIDENTIAL CUSTOMER OR SMALL COMMERCIAL CUSTOMER, AS APPLICABLE. The Parties acknowledge and agree that this agreement is a “forward contract” and that Seller is a “forward contract merchant”. Assignment: This agreement shall inure to the benefit of Buyer and Seller and their permitted successors and assigns. Buyer may not assign this agreement without Seller’s prior written consent, which consent shall not be unreasonably withheld. Buyer hereby acknowledges and consents to Seller’s pledge and contingent assignment or subrogation of all rights and obligations hereunder. In the event any other provision of this agreement shall be deemed to prohibit or otherwise restrict Seller’s assignment, subrogation or pledge of its rights hereunder, this provision shall control. Choice of Law: This agreement shall be governed by

Mega Energy, LP 2800 Post Oak Blvd., Ste. 111 Houston, Texas 77056 Phone: 713-771-5506 Toll Free: 1-866-OUR-MEGA Fax: 713-771-5359
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TERMS OF SERVICE FOR SUPPLY OF ELECTRICITY (“Residential”and “Small Non- Residential”)

Texas law and exclusive venue for any controversy arising from or relating to this agreement will be located in the state or federal courts of Harris County, Texas (and each party waives any right to object to venue in this regard). Refusal or Cancellation of Service: Seller may refuse to provide service to Buyer for one or more of the reasons specified in Section 25.477 http://www.puc.state.tx.us/rules/subrules/electric/25.477/2 5.477.pdf of the PUCT Rules. If service is denied, you will be notified of the reason(s). Seller will not deny service or require a prepayment or deposit for service based on Buyer’s race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, level of income, disability, familial status, location of a Buyer in a economically distressed geographic area, or qualification for low income or energy efficiency services. Buyer may terminate this agreement without penalty in the event it moves to a premise that is not covered the original stated contract, deployed for services or; market conditions change and this agreement allows Seller to terminate service without penalty in response to changing market conditions; or Seller notifies Buyer of a material change in the terms and conditions of the service agreement. YOUR RIGHT TO RESCIND SELLER OR BUYER MAY CANCEL THIS AGREEMENT WITHOUT ANY PENALTY OR FEE WITHIN THREE (3) FEDERAL BUSINESS DAYS AFTER THE EXECUTION OF THIS AGREEMENT BY CALLING 1-866-OUR-MEGA OR SUBMITTING IN WRITING BEING DELIVERED VIA US CERTIFIED MAIL Entire Agreement: These Terms of Service, together with the Pricing Appendix, contain the entire understanding of the parties with respect to the Seller's supply of electricity to the Buyer. There are no promises, covenants or understandings other than those expressly set forth in these executed documents. This agreement may only be amended by a written instrument executed by both parties. Responsibilities of the TDSP, Service Outages: The TDSP maintains responsibility for the reliability of the electricity supply, as set forth in the TDSP tariffs approved by the PUCT. The TDSP is responsible for distribution lines, meters and meter data, and the quality of power entering the Buyer's facilities. Contact Information: Mega Energy, Inc., Certificate No. 10141, is a licensed retail electric provider. Any questions or inquiries regarding this agreement may be directed to a Mega customer service representative at 713-771-5506 (or 1-866-OUR-MEGA). We are available 9:00AM–

6:00PMCST Monday through Friday.Or you may email questions and or concerns to info@mymegaenergy.com, allow up to 48 hours, equivalent to two(2) business days for response using this method. Our internet address is www.mymegaenergy.com. Our fax number is 713-7715359 (or 1-866599-MEGA). For Billing or Service Inquiries Mega Energy, LP 2800 Post Oak Blvd., Ste 111 Houston, TX 77056 Phone: 713-771-5506 Toll-free: 1-866-OUR-MEGA Fax: 713-771-5359 Toll free Fax: 1-866-599-MEGA Internet Website www.mymegaenergy.com For Outages or Emergencies • Centerpoint 713-207-7777, 1-800-332-7143 • Oncor 1-888-313-4747 • Texas New Mexico Power 1-888-866-7456 • AEP Central 1-866-237-7722 • AEP North 1-866-223-8508 • Nueces Electric Cooperative 1-800-632-9288 Public Utility Commission of Texas Customer Protection Division P.O. Box 13326 Austin, Texas 78711-3326 Phone: 512-936-7120 Toll-free: 1-888-782-8477 Fax: 512-936-7003 E-mail address: customer@puc.state.tx.us Internet website address: www.puc.state.tx.us •

Mega Energy, LP 2800 Post Oak Blvd., Ste. 111 Houston, Texas 77056 Phone: 713-771-5506 Toll Free: 1-866-OUR-MEGA Fax: 713-771-5359
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TERMS OF SERVICE FOR SUPPLY OF ELECTRICITY (“Residential”and “Small Non- Residential”)

Rate Appendix
Centerpoint *These rates are exclusive of Holiday Connect Rates

Standard Move-In Self Contained Meter (existing)Remote Connect Capability $ Self Contained Meter (existing)Poly-phase and >200 Amp $ Self Contained Meter (New) $ CT/Other Meter (existing) $ CT/Other Meter (new) $

10.52 16.00 92.00 130.00 304.00

Texas New-Mexico Standard Move-In Self-Contained Meter (existing) Self-Contained Meter (new) CT/Other Meter (existing)

*These rates are exclusive of Holiday Connect Rates

$ $ $

54.00 60.00 138.00

Oncor Standard Move-In Self-Contained Meter (existing) Self-Contained Meter (new) CT/Other Meter (existing) CT/Other Meter (new)

*These rates are exclusive of Holiday Connect Rates

$ $ $ $

6.80 14.45 46.45 69.50

AEP Texas Central Standard Move-In Self-Contained Meter (existing) Self-Contained Meter (new) CT/Other Meter (existing) CT/Other Meter (new)

*These rates are exclusive of Holiday Connect Rates

$ $ $ $

37.00 47.00 102.00 301.00

AEP Texas North

*These rates are exclusive of Holiday Connect Rates

Standard Move-In Self-Contained Meter (existing) Self-Contained Meter (new) CT/Other Meter (existing) CT/Other Meter (new)

$ $ $ $

42.00 51.00 110.00 305.00

Mega Energy, LP 2800 Post Oak Blvd., Ste. 111 Houston, Texas 77056 Phone: 713-771-5506 Toll Free: 1-866-OUR-MEGA Fax: 713-771-5359
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