Electricity Price. Other Key Terms and Questions Type of Product Contract Term. Disclosure Chart. Average Monthly Usage: Average Price Per KWH:

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1 Electricity Facts Label Summer Energy LLC dba Summer Energy 12 month Residential Fixed Price Product Centerpoint Energy Service Area Issue Date: 05/01/12 Average Monthly Usage: Average Price Per KWH: Electricity Price This price disclosure is an example based on average monthly KWH usage. This price is an estimate and the actual price you pay will vary based on your actual usage. The price you will pay during the Minimum Term is sum of the following: 1. Energy charge of: 9.3 per kwh 2. Base charge of: $4.89 per billing cycle 3. TDSP recurring (pass-through) charges: Advanced Metering System Surcharge: $3.05 per billing cycle Other Key Terms and Questions Type of Product Contract Term See Terms of Service for complete explanation of fees, deposits, and other terms. Fixed Rate 12 months Do I have a termination fee or any fees associated with terminating service? The amount of the Early Termination Fee will be $ Disclosure Chart Can my price change during the contract If my price can change, how will it change and by how much? What other fees may I be charged? Is this a pre-pay or pay in advance product? Does Summer purchase excess distributed renewable generation? Renewable Content Statewide average for Renewable Content Summer Energy LLC PO Box Houston, TX Toll Free PUCT License # Yes. The price can change if there are changes in the TDSP charges, fees imposed by ERCOT, or changes in law or regulatory charges. See the Terms of Service for explanation of additional fees. No. No. 11.5% 11.5% Contact hours: 8:00 AM to 5:00 PM CST M-F service@mysummerenergy.com Version #:

2 PUCT License #10205 RESIDENTIAL PRODUCT Terms of Service January 03, 2012 These Terms of Service ( TOS ), along with Your Rights as a Customer ( YRAC ), Electricity Facts Label ( EFL ), any ESID Addendum, and any documentation of your enrollment authorization pursuant to of the Public Utility Commission of Texas ( PUCT ) Customer Protection Rules ( Authorization ), collectively the Agreement ( Agreement ) set forth the terms and conditions under which a residential customer ( Customer, you or your ) will receive electric service from, ( SUMMER, we and us ) a certified Retail Electric Provider (REP) in the state of Texas, PUCT Certificate No By entering into this Agreement, Customer hereby: 1) appoints SUMMER to arrange for purchase and delivery of electricity (including volume balancing and billing) from any source on Customer s behalf for the period of time defined in this Agreement; and 2) Customer hereby requests that all electric service associated with Customer s name and/or address(es) or electric service identifiers ( ESIDs ) be transferred to SUMMER under the terms and conditions of this Agreement. SUMMER and Customer may be referred to herein individually as a Party or together as Parties. The TOS, EFL and YRAC together constitute your Contract Documents. Please retain the Contract Documents for your records. A copy of the Contract Documents are available to Customer upon written request. For questions about this Agreement or your Contract Documents or other electric service needs, please contact SUMMER s customer service department at: INTERNET ADDRESS: ADDRESS: service@mysummerenergy.com MAILING ADDRESS: PO BOX FAX NUMBER: Houston, TX TELEPHONE: Toll-Free: HOURS: Mon-Fri 8:00 am 5:00 pm CST 24 Hour Emergency Outage Information: Please contact your Transmission and Distribution Utility ( TDU ) to report electricity outage or emergency conditions at the appropriate number below: Centerpoint Energy (Houston Area): Oncor Electric Delivery (DFW Area): AEP (WTU & CPL Area): Texas New Mexico Power Area: Customer Information: By entering into this Agreement, Customer authorizes its local Transmission and Distribution Utility ( TDU ) to release to SUMMER any information that is necessary or required to become the REP for Customer, including, but not limited to: Customer s address, account numbers, and historical usage information. 1. Term & Renewal: This Agreement shall commence on the date of the initial meter reading by the applicable TDU and continue for the period indicated in your Authorization and/or in the EFL ( Initial Term ). Customer acknowledges that SUMMER cannot guarantee a switch of Customer s account to SUMMER by a specific date and hereby holds harmless SUMMER from any liability for, or arising out of, delays in this process. For term products (non-month to month products), a contract expiration notice will be sent at least thirty (30) days prior to the end of the Initial Term. If you fail to renew your agreement with SUMMER, your service will automatically continue on a month-to-month basis after the expiration of your Initial Term on a default renewal product, which is a variable price product whose price will be determined by current market conditions at the sole discretion of SUMMER until cancelled by either you or SUMMER. 2. Contract Pricing: Current pricing for service is indicated in your Authorization and/or in the EFL. Customer understands and agrees that if it utilized a Third Party/Broker, SUMMER will be making a payment to such Third Party/Broker in connection with its efforts to facilitate customer entering into this Agreement; Customer also understands and agrees that the Price reflects the fee SUMMER is paying to the Third Party/Broker, and such Third Party/Broker is acting on Customer s behalf as Customer s representative, and is not a representative or agent of SUMMER. Customer also understands and agrees that as such, it should direct any questions regarding such fees to its Third Party/Broker. 3. Product Types: SUMMER provides three different types of products including fixed rate, indexed and variable price. Your Authorization and/or EFL specify the product type and the term that applies to your Agreement. Please note that only those parts of this section that describe your specific product type will apply to your Agreement. Fixed Rate Products: Fixed Rate Products have a term of at least (three) 3 months. The price of a fixed rate product may only change during your Initial Term to reflect actual changes in TDSP charges, changes to the Electric Reliability Council of Texas ( ERCOT ) or Texas Regional Entity administrative fees charged to loads, or changes resulting from federal, state or local laws that impose new or modified fees or costs on us that are beyond our control. Price changes resulting from these limited circumstances do not require us to provide you with advanced notice. Indexed Products: Indexed products may have a contract term of three (3) months or more, or may be month-to-month. Indexed Products have a price that changes according to a pre-defined pricing formula that is based on publicly available indices or information. The price for term indexed products may also change without advance notice to reflect actual changes in TDSP charges; changes to the ERCOT or Texas Regional Entity administrative fees charged to loads; or changes resulting from federal, state or local laws or regulatory actions that 800 Bering Dr., Suite 260 Page 1 of 6 Version #:

3 impose new or modified fees or costs on us that are beyond our control. There is no Early Termination Fee for this product if the contract term is less than 3 months. Variable Price Products: Variable price products have a term of thirty-one (31) days or less and a price that varies according to the method disclosed on your EFL. There is no Early Termination Fee for this product type. 4. Low-Income Rate: Discounted rates may be available to low-income customers through LITE-UP, the PUCT s rate reduction program. Please contact a LITE-UP Texas Representative toll free at (866-4-LITEUP) to learn how to qualify for this program or with any questions you may have. 5. Material Changes by SUMMER: SUMMER will provide Customer with at least fourteen (14) calendar days advance written notice of any Material Change in this Agreement, either in Customer s bill or in a separate mailing. The changes will become effective on the date stated in the written notice. Customer may cancel this Agreement before the effective date of the Material Change, as identified in the advance written notice provided to Customer, without any Early Termination Fee. 6. Early Terminations: In the event that SUMMER, or its activities hereunder, becomes subject to regulations of any kind whatsoever under any law, government body action or ERCOT action that has the effect of materially changing the circumstances from those that exist on the effective date of this Agreement then SUMMER may pass through the economic effects to Customer of such change or SUMMER may unilaterally terminate this Agreement without Customer s consent upon at least thirty (30) calendar days written notice to Customer without any obligation, payment or otherwise, to Customer or an Early Termination Fee. 7. Early Termination Fee: If Customer terminates this Agreement or defaults as described in Section 12 and/or 13 of this Agreement, then, unless otherwise provided herein, an Early Termination Fee shall be immediately due and paid by Customer to SUMMER. The amount of the Early Termination Fee will be $ In the event that Customer moves out of the location(s) identified in this Agreement and the Customer provides SUMMER with the following items: 1) proper and reasonable evidence of such move, such as a bill in Customer s name at Customer s new location and 2) a forwarding address for which SUMMER is able to confirm as the new residence of Customer, then the Early Termination Fee will not apply. 8. Right of Rescission: For switch requests, Customer has the right to rescind Customer s request for SUMMER to become its REP without any Early Termination Fee within three (3) federal business days of the applicant s receipt of the TOS. To rescind this Agreement, Customer shall give notice to SUMMER in writing via regular mail at PO BOX , Houston, TX 77056, or by at Service@mysummerenergy.com or by facsimile at 1 (888) or by calling 1 (888) Rescission requests received after three (3) federal business days are not guaranteed rescissions; however Customer has the right to select another REP and Customer may do so by contacting that REP, but Customer remains responsible for any Early Termination Fees. Regardless of the method or reason for termination or cancellation of this Agreement, Customer is responsible for the payment of any and all services provided to Customer before or after the termination or cancellation of this Agreement. If Customer requests that the TDU read its meter before the normal meter read date Customer may be charged a fee as set by the respective TDU. 9. Invoicing, Payment, Interest, and Credit Requirements: Customer will receive a monthly invoice from SUMMER. All invoices are due and payable sixteen (16) calendar days from the date the invoice was issued. Customer can provide to SUMMER written notice, Phone Call, Fax or setting forth in particular detail any disputed amount, including the calculations with respect to any errors or inaccuracies claimed. If it is subsequently determined that Customer owes SUMMER any portion of the disputed amount, Customer shall remit to SUMMER within 5 (five) business days following such determination the outstanding balance. Any amounts that may have been overpaid or underpaid shall be applied to the next monthly invoice. Customer is responsible for all regulatory charges, taxes, duties, fees, levies, premiums or any other charges of any kind, whether direct or indirect, relating to the sale, purchase or delivery of electricity, together with all interest, penalties or other additional amounts imposed, including but not limited to gross receipts tax, PUCT Assessment, sales tax, consumption tax, use tax, value added tax, kwh, commercial activity or other privilege tax, and any other tax (whether in effect as of the effective date of this Agreement or thereafter) imposed by any governmental entity. SUMMER reserves the right to include in any subsequent invoice, adjustments related to previous invoices, previous invoicing errors, meter read errors, miscalculation of taxes or other errors or omissions. Customer authorizes SUMMER, and SUMMER reserves the right, to charge Customer s credit/debit card and/or checking account without notice for any unpaid balances that are past due. If the account is referred to a collection company, SUMMER reserves the right to bill Customer a fee not to exceed thirty-three percent (33%) of the amount being collected. If the account is referred for legal actions, any and all attorney fees and court costs will be billed to the Customer. Customer shall be responsible for any and all fees associated with or incurred by SUMMER in collecting any amounts owed to SUMMER, including, but not limited, to attorneys fees, court costs and any fees charged by a collection agency. Balanced Billing: SUMMER offers a Levelized Payment Plan ( Balanced Billing ) which allows customers to pay a calculated average amount for electric service each month. The program is available to 1) any residential customer receiving the PUCT s rate reduction, 2) customers who are not currently delinquent in payment and 3) delinquent customers in limited situations. At least every 800 Bering Dr., Suite 260 Page 2 of 6 Version #:

4 twelve (12) months, SUMMER will reconcile Customer s account and calculate a new Balanced Bill amount accordingly. SUMMER will credit Customer s account for any over-billed amount and will include any underbilled amount in the new Balanced Bill amount. Customer may opt-out of Balanced Billing by 1) paying the full balance due and 2) providing SUMMER with notice of your desire to be removed from Balanced Billing. Balanced Billing does not affect your obligation to pay for all actual usage and other associated charges taxes and fees. Failure to pay your monthly bill on or before the stated due date may result in SUMMER s cancellation of your participation in Balanced Billing. Bill Payment and Other Assistance: An energy assistance program is available to Customers who have severe financial hardships and temporarily may be unable to pay their bills. The program is funded in part by contributions from SUMMER customers. In certain circumstances for which Customer must qualify, you may have the right to establish a payment arrangement or deferred payment plan with SUMMER. A payment plan allows you to pay your bill after the due date, but before the next bill is due. A deferred payment plan is an arrangement between SUMMER and Customer that permits the Customer to pay an outstanding bill in installments that extend beyond the due date of the next bill. SUMMER will confirm all deferred payment plans in writing. Please call for additional information. If Customer or a person permanently residing at Customer s residence has special needs that require Customer or such person to be dependent on electrical equipment or power medical equipment, then you may qualify as a Chronic Condition or Critical Care residential customer. It is Customer s responsibility to advise SUMMER upon application for service if Customer or a person permanently residing at Customer s residence is or may qualify as a Critical Care or Chronic Condition residential customer. Upon request, we will provide you the PUCT s standardized Critical Care or Chronic Condition Eligibility Determination Form, which must be completed by your physician and returned to us or the TDU. The ultimate decision to grant either designation rests with your TDU. Additional information regarding Critical Care and Chronic Condition designations may be found in your YRAC. 10. Additional Charges & Fees: SUMMER will charge a one-time late payment penalty of 5% for each delinquent month s charges that remain unpaid after the close of business on the bill due date. Additionally, SUMMER will charge: 1) a $30 fee for any returned check, electronic fund transfer or credit card transaction not processed due to insufficient funds or credit availability; 2) a $20 disconnection fee for processing an electric service disconnection transaction; 3) a $20 reconnection fee in the event that SUMMER processes a reconnection transaction on your account, (such fees are in addition to any disconnect/reconnect fees that may be assessed by your TDU, and are assessed regardless of whether or not your electric service is actually disconnected by the TDU if the transaction orders are sent); and 4) any charges or fees that the TDU charges SUMMER including but not limited to fees to initiate or switch service, transport and distribute electricity to your service location, read your meter, and terminate or restore service. These charges are passed on to you by SUMMER, along with certain charges and fees assessed by ERCOT. 11. Customer Acknowledgements: Customer acknowledges that the TDU is solely responsible for reading Customer s meter or recorded data, as applicable, and that SUMMER cannot and does not read a Customer s meter or recorded data, but is bound by the readings and data provided by the TDU. Customer further acknowledges that SUMMER s ability to invoice Customer depends on the TDU s ability to furnish SUMMER with all necessary information including meter readings or recorded data, as applicable. In the absence of such information from the TDU, SUMMER may invoice Customer based on estimated meter reading according to the Customer s historical usage. As soon as practicable, and after receipt of actual Customer s energy consumption from the TDU, SUMMER will reconcile any difference(s) between estimated and actual usage charges. Credit Requirements & Deposit: SUMMER may investigate the Customer s credit history at any time. SUMMER may refuse electric service at any time to anyone who does not meet SUMMER s credit standards or if Customer cannot pay the requisite initial deposit or demonstrate satisfactory credit. SUMMER may also refuse to provide service to a Customer for one or more of the reasons specified in Section of the PUCT rules and regulations. Applicants who are sixty-five (65) years of age or older who are not currently delinquent in payment of any electric service account are deemed as having established satisfactory credit. A Customer or applicant may be deemed as having established satisfactory credit if the Customer or applicant has been determined to be a victim of family violence as defined in the Texas Family Code (see website for more details at by a family violence center or by treating medical personnel. This determination shall be evidenced by submission of a certification letter developed by the Texas Council of Family Violence. Deposits: If Customer fails to demonstrate satisfactory credit, as determined in the sole discretion of SUMMER, then Customer may be required to pay an initial deposit prior to service being provided, if at all. Such deposit shall not exceed an amount equal to the greater of one-fifth of the Customer s estimated annual billing or; the sum of the Customer s estimated billings for the next 2 (two) months. If a Customer or applicant qualifies for the rate reduction program under of the PUCT rules, then such Customer or applicant shall be eligible to pay any deposit that exceeds fifty dollars ($50.00) in two equal installments. SUMMER will provide Customer or applicant with written notice of the deposit requirement and payment terms of the equal installments; provided, however, the first installment shall be due no sooner than ten (10) calendar days, and the second installment no sooner than forty (40) calendar days, of the issuance of such written notice. 800 Bering Dr., Suite 260 Page 3 of 6 Version #:

5 Deposits may be waived or refunded with a valid letter of credit for electric services received at the address and account name supplied on this application. Deposits held more than thirty (30) days will accrue interest from the date of receipt at the annual rate established by the PUCT. Accrued interest will be applied annually to Customer s account. Upon termination of service or after twelve (12) consecutive months of service with no late payments of any kind, SUMMER will apply the deposit plus accrued interest, if any, against Customer s account or outstanding balance on Customer s final bill. Any credit balance remaining on an inactive account after the final bill will be refunded in the form of a company check and will be mailed within thirty (30) calendar days. SUMMER will not require an initial deposit from an existing customer unless the customer was late paying a bill more than once during the last 12 months of service or had service disconnected for nonpayment during the last 12 months of service. You may be required to pay this initial deposit within ten days after the issuance of a written disconnection notice that requests such deposit. SUMMER may request an additional deposit from an existing customer if the average of the customer s actual billings for the last 12 months are at least twice the amount of the original average of the estimated billings and a disconnection notice has been issued (or the account disconnected) within the previous 12 months. SUMMER may require that you pay this additional deposit within 10 days of the request for such deposit. 12. Default and Disconnection: A Default means: a. Failure of Customer to pay any amounts due under this Agreement within the time strictly provided herein; or b. Failure of Customer to perform any material term of this Agreement; or c. Determination that any representation upon which this Agreement is based is false; or d. Immediately after Customer files for or is otherwise placed in bankruptcy; or e. Determination by the TDU that any tampering has occurred at the Customer s meters. f. Prevention by SUMMER to initiate and/or provide service to Customer s meters for any reason, including but not limited to a switch-hold or permitting issues. Default of this Agreement, including without limitation, non-payment of Customer s bill may result in an order for the TDU to disconnect the Customer s electric service at the Customer s meters; and the termination of this Agreement at the sole discretion of SUMMER. Moreover, SUMMER may seek to have your electric service disconnected after providing you at least ten (10) calendar days notice for any of the following reasons: (1) failure to pay a bill owed to SUMMER, or to make a deferred payment arrangement by the date of disconnection; (2) failure to comply with the terms of a deferred payment agreement made with SUMMER; (3) using service in a manner that interferes with the service of others or the operations of non-standard equipment; (4) failure to pay a deposit required by SUMMER; or (5) failure of the guarantor to pay the amount guaranteed when SUMMER has a written agreement, signed by the guarantor, which allows for disconnection of the guarantor s service. SUMMER may authorize your TDU to disconnect your electric service without prior notice to you if: (1) certain dangerous circumstances exist; (2) service is connected without the authority by a person who has not made application for service; (3) service is reconnected without authority after disconnection for non-payment; (4) there has been tampering with the equipment used to measure the amount of electricity used; or (5) there is evidence of theft of service. Payments may be made by phone to SUMMER during normal business hours (Monday Friday 8:00 am to 5:00 pm) or on-line at SERVICE MAY BE DISCONNECTED AGAIN WITHOUT NOTICE FOR ANY RETURNED PAYMENTS. A deposit or additional deposits may be required on accounts that have been disconnected for non-payment. Upon satisfactory correction of the reasons for the disconnection, SUMMER will notify your TDU to reconnect your service. SUMMER will continue to serve you under this Agreement in effect prior to issuance of the disconnection notice. If your service was disconnected due to a dangerous situation, your service will be reconnected once you notify SUMMER that you have corrected and satisfactorily resolved the dangerous situation. Please allow 24 to 48 hours for completion of reconnect orders. 13. Remedies upon Default: If Customer defaults then, in addition to any rights and/or remedies available to SUMMER in this Agreement, in law or in equity, SUMMER may unilaterally terminate this Agreement and issue a move out transaction, and Customer shall be subject to and responsible for payment of any applicable Early Termination Fee. Thereafter, SUMMER may calculate all amounts due under this Agreement and Customer shall pay those amounts within five (5) calendar days from the date of invoice. Customer shall be liable for payment of any and all fees related to and/or arising out of Customer s default, including without limitation, attorneys fees, court costs, collection fees, and demands for payment. If Customer defaults, then Customer may be required to reapply for electric service and pay a deposit in order to again become a Customer. 14. Representations and Warranties: As a material inducement to entering into this Agreement, Customer hereby represents and warrants to SUMMER as follows: a. This Agreement constitutes a legal, valid, and binding obligation of Customer, enforceable against Customer in accordance with its terms, subject to bankruptcy, insolvency, reorganization, and other laws affecting creditor s rights generally, and with regard to equitable remedies, subject to the discretion of the court before which proceedings to obtain same may be pending; and 800 Bering Dr., Suite 260 Page 4 of 6 Version #:

6 b. Customer has knowledge, understanding and experience that enable Customer to evaluate the merits and risks of entering into this Agreement; 15. Forward Contract: SUMMER and Customer acknowledge and agree that the transactions contemplated by this Agreement constitute forward contracts within the meaning of the United States Bankruptcy Code, and further acknowledge and agree that SUMMER is a forward contract merchant. ( 16. Assignment: Customer shall not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of SUMMER, which consent may not be unreasonably withheld. Notwithstanding the foregoing, SUMMER may, without the consent of Customer: a. Transfer, sell, pledge, encumber or assign this Agreement or the accounts, revenues or proceeds hereof in connection with any financing or other financial arrangements; and b. Transfer or assign this Agreement to its affiliate; and c. Transfer or assign this Agreement to any person or entity succeeding to all or substantially all of its assets; and Customer herby acknowledges and consents to SUMMER 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 SUMMER s assignment, subrogation or pledge of its rights hereunder, this provision shall control. 17. Binding Effect: This Agreement shall inure to the benefit of, and be binding upon, SUMMER and Customer and their respective successors and permitted assigns. 18. Force Majeure: SUMMER shall not be liable in damages for any act or event that is beyond its control and which could not be reasonably anticipated and prevented through the use of reasonable measures, including, but not limited to, an act of God, act of the public enemy, war, terrorism, insurrection, riot, fire, explosion, labor disturbance or strike, wildlife, unavoidable accident, equipment or material shortage, breakdown or accident to machinery or equipment, or good faith compliance with a then valid curtailment, order, regulation or restriction imposed by governmental, military, or lawfully established civilian authorities, including any order or directive of ERCOT. 19. Excuse: If an event occurs which makes it impossible for SUMMER to perform this Agreement, including without limitation, any of the foregoing force majeure events, then our performance under this Agreement shall be excused for the duration of such event. This could be an event affecting Customer s TDU, such as a facility outage on their electric distribution lines. 20. LIMITATION OF REMEDIES, LIABILITY AND DAMAGES: SUMMER AND CUSTOMER CONFIRM THAT THE EXPRESS REMEDIES AND MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF, FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED IN THIS AGREEMENT, SUCH EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, THE LIABILITY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY HEREIN PROVIDED, THE LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY. SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. UNDER NO CIRCUMSTANCE SHALL SUMMER BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE. IT IS THE INTENT OF SUMMER AND THE CUSTOMER THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, SUMMER AND CUSTOMER ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THE LIQUIDATED DAMAGES CONSTITUTE A REASONABLE APPROXIMATION OF THE HARM OR LOSS. 21. Dispute Resolution: SUMMER and Customer agree in good faith to attempt to resolve any disputes within twenty-one (21) calendar days of notice of the dispute from either party. Any written communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to the attention of the Legal Department at PO BOX , Houston, TX UCC: Except as otherwise provided for in this Agreement, the provisions of the Uniform Commercial Code ( UCC ) of Texas shall govern this Agreement and Energy shall be deemed a good for purposes of the UCC ( 23. Warranty Disclaimer: EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT SUMMER DOES NOT MAKE AND EXPRESSLY NEGATES ANY OTHER REPRESENTATION OR WARRANTY, WRITTEN OR ORAL, EXPRESS OR IMPLIED, 800 Bering Dr., Suite 260 Page 5 of 6 Version #:

7 INCLUDING ANY REPRESENTATION OR WARRANTY WITH RESPECT TO CONFORMITY TO MODELS OR SAMPLES, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE. 24. Notices: Notices to and from Customer shall be furnished in writing and shall be delivered by electronic mail, United States Postal Service standard mail, certified mail, overnight carrier, or hand delivery. Notice to and from Customer by hand delivery shall be deemed to be received by the close of the business day on which it was hand delivered (unless hand delivered after the close of business in which case it shall be deemed received at the close of the next business day). Notice to and from Customer by overnight mail or courier shall be deemed to have been received 2 (two) business days after it was sent. FOR PURPOSES OF PROVIDING NOTICE OF BANKRUPTCY TO SUMMER, SUCH NOTICE SHALL ONLY BE EFFECTIVE IF DELIVERED TO THE FOLLOWING ADDRESS: PO BOX , Houston, TX Governing Law: THIS AGREEMENT AND THE RIGHTS AND DUTIES OF SUMMER AND CUSTOMER HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED AND PERFORMED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS. All citations to rules of the Public Utility Commission of Texas may be found electronically at: Non-Waiver: No waiver by any Party hereto of any one or more defaults, by the other Party in the performance of any of the provisions of this Agreement shall be construed as a waiver of any other default or defaults whether of a like kind or different nature. 27. Severability: Except as otherwise stated herein, any provision or article declared or rendered unlawful by a court of law or regulatory agency with jurisdiction over SUMMER or Customer, or deemed unlawful because of a statutory change, will not otherwise affect the lawful obligations that arise under this Agreement. 28. No Third Party Beneficiaries: Subject to the provisions above under Assignment, nothing in this Agreement shall provide any benefit to any third party nor shall it provide any third party any claim, cause of action, remedy or right of any kind. 29. Discrimination: SUMMER does not discriminate, deny service, or require a prepayment or deposit for service based on a customer s race, creed, color, national origin, ancestry, sex, religion, marital status, lawful source of income, level of income, disability, familial status, location in an economically distressed geographic area, or qualification for low income or energy efficiency services. Further, SUMMER does not use a credit score, credit history, or utility payment data as the basis for determining the price for residential electric service for a product with a term of twelve (12) months or less. 30. Entirety of Agreement: It is the intention of the Parties that the Agreement shall contain all terms, conditions, and protections in any way related to, or arising out of, the sale and purchase of electricity, and supersedes any and all prior such agreements between the Parties hereto, whether written or oral, as to the provision of electric service to any of Customer's ESI IDs. Both Parties have agreed to the wording of the Agreement and any ambiguities therein shall not be interpreted to the detriment of either party merely by the fact that such party is the author of the Agreement. 31. Venue. The Parties acknowledge and agree that this Agreement has been negotiated, drafted, executed and is performable in Harris County, Texas and may be enforced in Harris County, Texas. 32. Counterparts. This Agreement may be executed simultaneously in multiple originals or counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument, and each of which shall be sufficient for all purposes without producing or accounting for the other counterparts hereof. 33. No Oral Modification or Waivers. This Agreement shall not be modified or waived orally, but only by an instrument in writing signed by the Party against which enforcement of the modification or waiver is sought. 34. Own Judgment. It is understood and agreed that the Parties hereto have carefully reviewed this this Agreement, that they fully understand its terms, that they sought and obtained, or had the opportunity to obtain, independent legal advice with respect to the negotiation and preparation of this Agreement, and that this Agreement has been negotiated and prepared by the joint efforts of the Parties. 800 Bering Dr., Suite 260 Page 6 of 6 Version #:

8 Your Rights As A Customer Certificate No.: (8:00 AM to 5:00 PM CST) PO Box Houston, TX service@mysummerenergy.com This document summarizes Your Rights as a Customer and is based on customer protection rules adopted by the Public Utility Commission of Texas (PUC). These rules apply to all retail electric providers (REPs) and the provider of last resort (POLR), unless otherwise noted or waived by the customer as allowed under PUC rules. You may view the PUC s rules at Contact information is located within this document. OBTAINING AND CANCELING SERVICE Unauthorized Change of Service Provider or Slamming : A REP must obtain your verifiable authorization before switching your electric service. If you believe your electric service has been switched without your authorization, you should request that the REP provide you with a copy of your authorization and verification. The REP must submit this to you within 5 business days of your request. If you are not satisfied with this response, you may also file a complaint with the PUC at the address provided below. Upon receipt of a complaint filed with the PUC, the REP must respond within 21 days of receipt of the complaint, providing all documentation relied upon by the REP related to the authorization to switch, and any corrective actions taken to date, if any. If a REP is serving your account without proper authorization, the REP must work with other market participants to take all actions necessary to return you to your original REP as quickly as possible. Your original REP has the right to bill you at the price disclosed in your terms of service and electricity facts label from either: 1) the date you are returned to your original REP, or 2) any prior date chosen by your original REP for which that REP had the authorization to serve you. The REP that served you without proper authorization shall, within 5 days from the date that your service is returned to your original REP, refund all charges paid for the time period the original REP ultimately bills you. In addition, the REP that served you without your authorization is responsible for paying all charges associated with returning your service to your REP of choice. For periods that the unauthorized REP served you that are not billed to you by your original REP, the REP that served you without your authorization may bill you but at a rate no higher than the rate you would have been charged by your original REP. Right of Rescission: When requesting a switch in service providers, you may rescind your contract with the new REP without any penalty or fee within 3 federal business days (includes Saturday) after you receive your Terms of Service Agreement. For details on how to rescind your service, please see your Terms of Service Agreement. This right of rescission does not apply to applicants requesting a move-in or to customers whose REP transfers the customers to the POLR. If you do not rescind your request for service within this 3 federal business day period, you will be responsible for all service rendered to you at the enrollment address. If you do not rescind the contract within this 3 federal business day period, you retain the right to select another REP and may do so by contacting that REP, although you will be responsible for any charges incurred to switch your service. See your Terms of Service Agreement for details regarding canceling or terminating your contract. BILLING ISSUES Unauthorized Charges or Cramming : Before any new charges for non-energy-related products or services are included on your electric bill, your REP must inform you of the product or service, all associated charges, how these charges will appear on your electric bill and obtain your consent to accept the product or service. Your REP must provide you with a toll-free telephone number and address that you may use to resolve any billing dispute or to ask questions about your bill. If you believe your electric bill includes unauthorized charges, you may contact your REP to dispute such charges and may file a complaint with the PUC. Your REP will not seek to terminate your electric service for non-payment of an unauthorized charge or file an unfavorable credit report against you for disputed unpaid charges that are alleged to be unauthorized, unless the dispute is ultimately resolved against you. If the charges are determined to be unauthorized, your REP will cease charging you for the unauthorized service or product remove the unauthorized charge from your bill and refund or credit all money you paid for any unauthorized charge within 45 days. If charges are not refunded or credited within 3 billing cycles, interest shall be paid to you at an annual rate established by the PUC on the amount of any unauthorized charge until it is refunded/credited. You may request all billing records under the REP s control related to any unauthorized charges within 15 business days after the date the unauthorized charge is removed from your bill. Your REP will not rebill you for any charges determined to be unauthorized. Deferred Payment Plans and Other Payment Arrangements: If you cannot pay your bill, please call us immediately. We may offer you a shortterm payment arrangement that allows you to pay your bill after your due date but before your next bill is due. In addition, you may qualify for a deferred payment plan. SUMMER Energy offers a Deferred Payment Plan which allows a residential customer to pay an outstanding balance in installments over a period of time. To enroll in a Deferred Payment Plan we may require from you an initial payment of 50% of the outstanding balance on your account and for the remaining balance to be paid over five billing cycles. Your service may be terminated and disconnected if you do not meet the terms of the Deferred Payment Plan issued to you. You may request a deferred payment plan for bills that become due during extreme weather emergencies, during governor-declared disasters as directed by the Public Utility Commission, or if you have been underbilled by $50 or more. You may also request a deferred payment plan for bills that become due in July, August or September (or in January or February in certain situations) and you are: receiving the LITE-UP (the Texas low-income) discount; or are designated as a Chronic Condition or Critical Care Residential Customer; or if you cannot pay your bill on time unless (1) you have been disconnected for non-payment during the previous 12 months, (2) have made more than two payments during the previous 12 months that were returned due to insufficient funds available or, (3) you have received service from us for less than three months and you lack sufficient credit or a satisfactory history of payment for electric service from a

9 previous retail electric provider. If you are on a deferred payment plan, your account will be subject to a switch-hold. A switch-hold means that you will not be able to buy electricity from other companies until you pay the total deferred balance. The switch-hold will be removed after your deferred balance is paid. While a switch-hold applies, if you are disconnected for not paying, you will need to pay us to get your electricity turned back on. Average Billing Plan: SUMMER Energy offers an average billing plan. With this plan your monthly payment will be based on the historical usage associated with your account. Your monthly payment amount may be adjusted quarterly based on your actual usage. We will notify you of any change in your average payment amount. We will reconcile your account at least annually and may charge or credit your account based on any difference between actual usage charges and payments received under the average billing plan. This program is available to any customer who is not currently delinquent in payment to SUMMER Energy and any residential customer eligible to receive the LITE-UP discount. If, at the time of enrollment on our average billing plan you are delinquent, your account will be subject to a switch-hold. A switch-hold means that you will not be able to buy electricity from other companies until you pay the total deferred balance. The switch-hold will be removed after your deferred balance is paid. While a switch-hold applies, if you are disconnected for not paying, you will need to pay us to get your electricity turned back on. In the event the Terms of Service are canceled or terminated or your electric service is disconnected, the level or average billing option does not affect your obligation to pay for all actual usage. Financial and Energy Assistance: An electric customer who receives food stamps, Medicaid, TANF or SSI from the Texas Department of Human Services (TDHS) or whose household income is not more than 125% of the federal poverty guidelines may qualify for energy assistance from the Texas Department of Housing and Community Affairs (TDHCA). A customer who currently receives these benefits automatically qualifies for a discount on electric service through the LITE-UP Texas program. Customers who do not currently receive these benefits but whose household income is not more than 125% of the federal poverty guidelines may apply for the discount. Contact LITE-UP Texas toll-free at LITE-UP or for information on how to obtain the discounted rate. Meter Reading and Testing: Please contact your REP for information regarding how to read your meter. You have the right to request a meter test. Your REP may make this request to your Transmission Distribution Utility (TDU) on your behalf. If a test is performed more than once in a four-year period and the meter is determined to be functioning properly, then you may be charged a fee for the additional meter test(s) at the rate approved for your TDU. The TDU or REP will advise you of the test result, including the test date, testing person and, if applicable, the removal date of the meter. DISCONNECTION OF SERVICE Failure to Pay: For customers who do not pay their electric bill by the due date, their REP may request that the TDU disconnect the electric service, after the expiration of a required 10-day notice period. The REP will provide a 21-day notice for Critical Care Residential Customers and Chronic Condition Residential Customers, which will be sent to the residential customer and the customer s designated secondary contact. Prior to disconnecting a Critical Care Residential Customer or Chronic Condition Residential Customer, the TDU shall contact the customer and the secondary contact. If the TDU does not reach the customer and secondary contact by phone, the TDU shall visit the premises, and, if there is no response, shall leave a door hangar containing the pending disconnection information and how to contact the REP and TDU. Disconnection of Service: The PUC has provided that under certain dangerous circumstances (such as unsafe electric line situations) any REP, including the POLR, may authorize your TDU to disconnect your electric service without prior notice to you. Your REP or TDU may also, at any time, authorize disconnection of your electric service without prior notice for any of the following reasons: where a known dangerous condition exists for as long as the condition exists; where service is connected without authority by a person who has not made application for service; where service is reconnected without authority after disconnection for nonpayment; where there has been tampering with the equipment of the TDU; or where there is evidence of theft of service. Additionally, your REP may be allowed to seek to have your electric service disconnected for any of the reasons listed below: failure to pay a bill owed to the REP or to make a deferred payment arrangement by the date of disconnection stated on the disconnection notice; failure to comply with the terms of a deferred payment arrangement or other payment agreement made with the REP; using service in a manner that interferes with the service of others or the operation of nonstandard equipment; failure to pay a deposit required by the REP; or failure of a guarantor to pay the amount guaranteed when the REP has a written agreement, signed by the guarantor, which allows for disconnection of the guarantor s service. Prior to disconnecting your service, your REP must provide you with a written Disconnect Notice. This notice must be mailed to you separately (or hand-delivered), or sent to you by , if your REP has offered and you have agreed to receive disconnection notices from the REP by , no earlier than the first day after the date your bill is due. The disconnection date must be 10 days from the date the notice is issued (or 21 days from the date the notice is issued for a Critical Care Residential Customer or a Chronic Condition Residential Customer) and may not fall on a holiday or weekend (or the day preceding) unless the REP s personnel are available to take payments and service can be reconnected. For Critical Care Residential Customers and Chronic Condition Residential Customers, your REP must send the notice to the residential customer and the customer s designated secondary contact. Your REP may not authorize disconnection of your electric service for any of the following reasons: failure to pay for electric service by a previous occupant of the premise if that occupant is not of the same household; failure to pay any charge unrelated to electric service;

10 failure to pay a different type or class of electric service not included on the account s bill when service was initiated; failure to pay underbilled charges that occurred for more than 6 months (except theft of service); failure to pay any disputed charges until your REP or the PUC determines the accuracy of the charges and you have been notified of this determination; failure to pay charges arising from an underbilling due to any faulty metering, unless the meter has been tampered with or unless such underbilling charges are due under PUC rule relating to Adjustments Due to Non-Compliant Meters and Meter Tampering in Area Where Customer Choice Has Been Introduced ( or failure to pay an estimated bill other than a bill rendered pursuant to an approved meter-reading plan, unless the bill is based on an estimated meter read by the TDU. Additionally, your REP may not authorize disconnection of your electric service: if the REP receives notification by the final due date stated on the disconnection notice that an energy assistance provider will be forwarding sufficient payment on your account; and you have paid or made payment arrangements to pay any outstanding debt not covered by the energy assistance provider s payment; for non-payment during an extreme weather emergency, and upon request, the REP must offer you a deferred payment plan for bills due during the emergency; or for non-payment if you are a Critical Care Residential Customer at a permanent, individually metered dwelling unit and you inform the REP, prior to the disconnection date stated on the notice, that disconnection of service will cause some person at that residence to become seriously ill or more seriously ill. However, to obtain this exemption, you must complete all of the following by the disconnection date stated on the notice, including: entering into a deferred payment plan with your REP and having the ill person s attending physician contact the REP and submit a written statement confirming that the customer is a Critical Care Residential Customer. This exemption from disconnection of a Critical Care Residential Customer shall be in effect for 63 days and may be applied for again after the 63 days has expired and the deferred payment plan has been fulfilled. Availability of Provider of Last Resort: If you are notified that you are subject to termination or disconnection of your electric service, you may seek to obtain services from another REP or the POLR. You have the option to request service from the POLR, which offers a standard retail service package. Information about the POLR and other REPs can be obtained from the PUC or the POLR. Restoration of Service: If your service has been disconnected by your REP for non-payment, you must, before service is reinstated, pay all amounts due to the REP, and reestablish credit, including payment of any applicable deposit. Upon payment of all amounts due and reestablishment of credit your REP or the POLR will notify your TDU to reconnect your service. If your service was disconnected due to a dangerous situation, your service will be reconnected once you demonstrate to your REP or the POLR that you have corrected the dangerous situation. DISPUTES WITH YOUR PROVIDER Complaint Resolution: Please contact your REP if you have specific comments, questions or complaints. Upon receipt of a complaint, your REP must investigate and notify you of the results within 21 days. If you are dissatisfied with the results of the investigation, you may request a supervisory review, if available. Your REP must advise you of the results of the supervisory review within 10 business days of your request. If you are dissatisfied with the results of the investigation or supervisory review, you may file a complaint with the PUC or the Office of the Attorney General, Consumer Protection Division. Please include your name and account number, as well as an explanation of the facts and the resolution you desire in your complaint. For a complaint involving a disputed bill, your REP may not initiate collection activities or termination or disconnection activities or report the delinquency to a consumer reporting agency with respect to the disputed portion of the bill. However, after appropriate notice, your REP may disconnect your service for non-payment of any undisputed portion of the bill. SUMMER ENERGY CUSTOMER CARE DEPARTMENT PO Box Houston, Texas Toll Free: Fax: service@mysummerenergy.com Public Utility Commission of Texas Customer Protection Division P.O. Box Austin, Texas Tel: ; Toll-free tel: Fax: ; TTY: customer@puc.state.tx.us; Website: Reporting Outages: Your REP is responsible for providing you with the telephone number you may use to report outages or other emergencies. For your reference, this contact information is provided in this brochure. CenterPoint Energy, Inc: Local: Toll-free Tel: Service orders: same 24 hours a day, 7 days a week Oncor Electric Delivery: Toll-free: Service orders: hours a day, 7 days a week OTHER PROTECTIONS Texas-New Mexico Power Co.: Toll-free Tel: Service orders: same 24 hours a day, 7 days a week American Electric Power Co. - Texas Central/Texas North: Toll-free: Service orders: hours a day, 7 days a week

11 Do Not Call List: The PUC maintains a Do Not Call List of customers who do not want to receive telemarketing calls for electric service. Call tollfree TXNOCAL(L) or , or visit the PUC website at to subscribe to the Do Not Call List. Language Availability: You may request to receive information from your REP in Spanish, or any language in which you were initially solicited. This includes the Terms of Service Agreement, Electricity Facts Label, bills and bill notices, information on new electric services, discount programs, promotions, and access to customer assistance. You will receive this Your Rights as a Customer document and disconnection notices in English and Spanish or English and your designated language if you have designated a language other than Spanish and were originally solicited in that language. Privacy Rights: Except as described below, REPs may not release your proprietary customer information to any other person without your consent. This includes your name, address, account number, type or classification of service, historical electricity usage, expected patterns of use, types of facilities used in providing service, individual contract terms and conditions, price, current charges or billing records. This prohibition does not apply to the release of your information under certain circumstances as required by law, including release to the PUC, an agent of your REP, consumer reporting agencies, law enforcement agencies or your TDU. A REP may also share this information with a third party for the purpose of marketing such party s products or services to you after you are provided an opportunity to opt-out of the release of your information. In addition, this prohibition does not apply to the release of prior historical usage upon request and authorization of a current customer or applicant of a premise. Industrial and commercial customers may contact their REP or TDU and designate that their prior historical usage is competitively sensitive in order to prevent the release of this information. Special Services: Your REP may offer special services for hearing-impaired customers and programs for customers with physical disabilities. If you have a physical disability or require special assistance regarding your electric account, please contact your REP to inquire about the process to become qualified for any of these special services. Critical Care Residential Customer or Chronic Condition Residential Customer: You have the right to apply for designation as a Critical Care Residential Customer or Chronic Condition Residential Customer. However, such customers may not enroll in, or continue to be served on a prepay product that utilizes an advanced meter. If we are notified that you have received designation as either a Critical Care Residential Customer or a Chronic Condition Residential Customer and you are currently on such a prepay product, we will work with you to promptly transition you to a non-prepay product in a manner that avoids service disruption. If you do not respond to our efforts to place you on a non-prepay product of your choosing, we will place you on a competitively offered, month-to-month product. In this event, you will be provided a notice of the transfer as well as the Terms of Service and Electricity Facts Label for the new product. A Critical Care Residential Customer is a residential customer who has a person permanently residing in his or her home who has been diagnosed by a physician as being dependent upon an electric-powered medical device to sustain life. A Chronic Condition Residential Customer is a residential customer who has a person permanently residing in his or her home who has been diagnosed by a physician as having a serious medical condition that requires an electric-powered medical device or electric heating or cooling to prevent the impairment of a major life function through a significant deterioration or exacerbation of the person s medical condition. Upon your request, your REP will provide to you a PUC-approved application form, which you and the patient s physician must complete. The patient s physician must sign and electronically return the application form to your TDU by facsimile or other electronic means. The TDU will evaluate the form for completeness. Incomplete forms will be returned to you by the TDU for completion. The TDU may verify the physician s identity and signature and may deny an application for designation, if it determines that the identity or signature of the physician is not authentic. The TDU will notify you and your REP of the final status of the application process, including whether you have been designated for Critical Care Residential Customer or Chronic Condition Residential Customer status. The TDU will also notify you of the date a designation, if any, will expire, and whether you will receive a renewal notice. If the TDU does not approve the application, you may file a complaint with the PUC. If approved, the designation of Critical Care Residential Customer is valid for two years; and the designation of Chronic Condition Residential Customer is valid for 90 days to one year. Your TDU will send you a renewal form, if applicable, prior to the expiration of your designation. Designation as a Critical Care Residential Customer or Chronic Condition Residential Customer does not relieve the customer of the obligation to pay the REP or the TDU for services rendered. However, a Critical Care Residential Customer or Chronic Condition Residential Customer who needs payment assistance is encouraged to contact their REP or TDU immediately regarding possible deferred payment options or other assistance that may be offered by the REP or TDU. Governmental Entities: If you are a governmental entity as defined in the Prompt Payment Act (PPA), TEX. GOV T CODE, Chapter 2251 ( it is your responsibility to inform your REP of your status so that the PPA protections can be applied. If you are a governmental entity subject to the PPA, your payment shall become overdue as provided in the PPA and interest on an overdue payment shall be calculated by you pursuant to the terms of the PPA and remitted to your REP with the overdue payment. Billing disputes between a governmental entity, as defined in the PPA, and an aggregator or a REP about any bill for aggregator or REP service, shall be resolved as provided in the PPA.