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).

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”)

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. 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: The price you will pay us for electricity during the initial plan term is a fixed rate as provided for in the Electricity Facts Label. In determing your price for

electrical services, Mega Energy, LP will not use a credit score, a credit history, or utility payment data as the basis for determing your cost per kilowatt hour. The total average price per kilowatt-hour (kWh) includes the costs for electricity generation, monthly kWh usage, a monthly base charge and costs of delivery of electricity to your residence, and is exclusive of state and local taxes and the miscellaneous gross receipts tax reimbursement. 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 nonrecurring fee. Your price is subject to change and may increase during the term of this Agreement for any reason to reflect actual changes in: (1) TDU Delivery Charges or TDU Surcharges; (2) changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity (TRE) administrative fees charged to loads; (3) changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP’s control; or (4) we determine in our sole discretion that the rate class or type of service originally designated by ERCOT, us, or you is incorrect. We will notify you at least 14 days (or one billing cycle) prior to the end of the initial term with a contract expiration notice. At the end of your initial term, unless a renewal term greater than one month is established with your affirmative consent, your Agreement will expire. If you take no action your service will automatically continue under the Mega Energy month to month plan, a variable price product, which is a month-to-month plan with no cancellation penalty. While your electricity price under the variable price product will not change more than once a month, it may vary on a month-to-month basis as determined by us. The variable price will not increase more than 30% over the previous month’s price. Your actual price will be shown on each monthly statement, and will be used to calculate your monthly bill amount based on your actual electricity usage. To see a listing of historical prices for this product, please visit our website at www.mymegaenergy.com or you may call our office Monday – Friday, 9am – 6pm toll free at 1-866-687-6342 or local at 713-771-5506. The price of the variable price product is subject to change and may increase without notice for any reason, including but not limited to if: (1) there are changes to TDU Delivery Charges or TDU Surcharges; (2) there are changes to the ERCOT or TRE administrative fees charged to loads; (3) changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP’s control; (4) we determine in our sole discretion that the rate class or type of service originally designated by ERCOT, us, or you is incorrect; or (5) we determine in our sole discretion that the price should change, and subject to the provisions in

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”)

the attached “Electricity Facts Label”. Pricing features and product details of the variable price product can also be changed under the Changes to Terms of Service provision of this Agreement. Nothing in this section shall preclude us from offering a new contract to you at any other time during the contract term. 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. Taxexempt 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.” 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. If you are on a service contract of three months or longer, at least 30 days or one billing cycle, and not more than 60 days or two billing cycles prior to the completion of your contract term, you will be notified in writing that your current contract is about to expire. Before your contract ends, you must either renew your contract with Seller (or select a different service plan with Seller), or you may chose to switch to another REP. For a list of Retail Electric Providers, please visit http://www.powertochose.org. If you have not chosen either to renew your contract with Seller or to select another provider, Seller will continue to provide you services on a month-to-month basis, and you will be billed at a month to month variable rate. You may terminate this month-to-month service at any time without penalty. Buyer may contact Seller at any time to request extension of Buyer’s current rate for a longer term or negotiate a new rate for the extended term. 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 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, and charge Buyer an early termination penalty. The early termination penalty will equal (i) for Small Commercial Customers, the value of twenty-five percent (25%) of the remaining deliveries under this agreement based on Buyer's average monthly usage and the price and term set forth on the Pricing Appendix; and (ii) for Residential Customers, $200.00.

Seller will not order the TDSP to disconnect service for non-payment of legitimately disputed invoice amounts. 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. Changes to Terms of Service: Except as indicated, we will first send you a written notice at least 14 days in advance before making any changes to this Agreement. Written notice will be provided through a separate document or on your bill. Notice is not required for a change that benefits you. This written notice will be clearly labeled “Important Notice Regarding Changes to Your Contract.” If you’re satisfied with the changes, there’s nothing else you have to do to continue to receive service. If you find the changes unacceptable, you may choose another energy company before the changes go into effect, without charge or penalty. The Terms of Service, Your Rights As A Customer (YRAC), or EFL shall be provided to you whenever a change is made to the specific document and upon your request, at any time free of charge. Please remember that cancelling this Agreement does not excuse you from paying all outstanding balances on your account. Seller will make commercially Force Majeure: 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 collections letter, Buyer may be charged a collection fee in an amount equal to the lesser of (i) thirty-five dollars ($35), or (ii) 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, (iii) applicable fees for payments processed via the internet at mymegaenergy.com will be $5.95 and over the phone via customer service at Mega Energy, LP. will be $9.95, (iv) applicable fee for residential premises for disconnection of services not to exceed $70.00. (v) one time non-recurring connection fee. Should Seller use a third party to collect past due balances, there will be a nineteen percent (30%) collections surcharge added to the amount due. In addition, any duplicate request for bills, Letter of Credit

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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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 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. For residential customers, we shall not use a credit score, a credit history, or utility payment data as the basis for determining the price for electric service for a product with a contract term of 12 months or less for an existing residential customer or in response to an applicant’s request to become a residential customer. Buyer may terminate this agreement without penalty in the event it moves to a premise that is not covered in the deregulated territories, 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,

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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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 1-866-599-MEGA). For Billing or Service Inquiries 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 Toll free Fax: 1-866-599-MEGA Internet Website www.mymegaenergy.com To report outages 24 hours 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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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) Out of Cycle Meter Read Non - IDR IDR

$ $ $ $ $ $ $

10.52 16.00 92.00 130.00 304.00 3.66 6.00

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

*These rates are exclusive of Holiday Connect Rates

$ $ $ $

54.00 60.00 138.00 27.00

Oncor Standard Move-In Self-Contained Meter (existing) Self-Contained Meter (new) CT/Other Meter (existing) CT/Other Meter (new) Out of Cycle Meter Read

*These rates are exclusive of Holiday Connect Rates

$ $ $ $ $

6.80 14.45 46.45 69.50 3.70

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

*These rates are exclusive of Holiday Connect Rates

$ $ $ $ $

25.00 47.00 102.00 301.00 11.00

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) Out of Cycle Meter Read

$ $ $ $ $

23.00 51.00 110.00 305.00 9.00

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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