SimpleBills Corporation “De-Regulated” Terms of Service

This Agreement is entered into and made by and between SimpleBills Corporation and/or one of its subsidiaries (“Company") and the tenant(s) of any residential property who elect to use the service provided by Company. These tenants must be registered with Company, and may be individually or collectively referred to as “Customer(s).” This Agreement shall be effective on the date of submission of a complete and accurate Application by Customer, as recorded by Company (the “Effective Date”). This date may differ from the date on which Company assumes utility billing and other responsibilities set forth below as designated by Customer on the application (the “Start Date”). “End Date” shall be a date designated by Customer on the Application after which Company will no longer provide a service except to fulfill responsibilities defined herein.

In consideration of the mutual promises, covenants and conditions contained herein, the parties agree as follows:

1. Term.

The Term of this Agreement will commence upon the Effective Date and shall continue to the End Date shown above. This Agreement shall not renew for consecutive subsequent renewal periods unless agreed upon in writing by Company and Customer in accordance with the terms set forth in this Agreement (initial term and subsequent renewal terms are referred to herein as “Term”).

2. Payment Obligations of Customer.

Once per month, Company shall invoice Customer for Customer’s utility charges (“Bill Date”). Customer shall pay Company the full amounts that Company invoices to Customer. If Customer fails to make any payments due under this Agreement within ten (10) calendar days of the Bill Date(“Due Date”), then Company may, at its option, immediately cancel this Agreement, and Company will have no further obligations under this Agreement. This includes, but is not limited to, payment of any utility bills received from a utility provider on behalf of Customer. Failure of Company to exercise this option at any time will not constitute a waiver of Company’s right to do so. Any portion of the invoices that is not paid when due will accrue a late fee of 10% of the outstanding balance.

3. Final Billing Procedure.

Customer agrees to pay the final invoice, which shall consist of all utility charges received for the final month of utility service, and may be received by Customer after the final day of the Term.

4. Designated Bill Payor.

Customer agrees to make Company its designated bill payor for each of the utility companies with whom Company has a bill-paying relationship and to take the necessary action to authorize Company to receive and pay Customer’s utility bills on behalf of Customer.

5. Utility Payment.

Company shall pay Customer’s utility bills covered by this Agreement for as long as this Agreement remains in effect.

6. Responsible Party.

Customer is the responsible party in the relationship with the utility companies and is solely responsible to abide by its agreements with them. Customer shall indemnify and hold harmless Company for any liability arising out of Customer’s failure to abide by its agreements with a utility company.

7. Responsibility for Termination.

At the end of the Term, Customer shall be solely responsible for the termination of all utility services at the Residence, except for electricity services. At the expiration of the term of this Agreement, if the owner of the Residence agrees, Customer shall leave the water in Customer account holder’s name for seven (7) calendar days after the lease termination date. Customer shall receive a Twenty Dollar ($20.00) credit for doing so to be returned to Customer in accordance with Customer’s pro-rated share of the utility expenses. If the owner of the Residence does not agree to the delayed cancellation of utilities, Customer shall cancel the utilities effective the date of the lease termination and Customer shall not receive a Twenty Dollar ($20.00) utilities credit.

8. Cost of Service.

Company shall pass along to Customer the rates charged by each utility service provider on Customer’s account without additional charge or fee; provided, however, fees charged for additional services, penalties and costs of recovery and attorneys fees as specified in this Agreement will be assessed against Customer. Company shall not be obligated to pass along to Customer any compensation it receives from any utility provider pursuant to its agreement with such provider.

9. Authorized Utility Providers.

Company has established relationships with several utility companies who will accept Company’ payment services for Customer. Customer agrees to exclusively use these utility companies in place of other utility companies offering similar services for the term of this Agreement. Customer may elect not to use a particular utility service (e.g., natural gas, security service, phone) offered by Company, with the exception of Company’ preferred electricity provider’s services. All Customers using Company’ service must register for and use electric service through Company and with Company’ preferred electric provider. Customers shall designate which services they desire during the initial sign-up period, and Company shall determine which utility companies shall provide those services. During the term of this agreement, Customer may elect to add other utility services. Such services will fall under the terms of this agreement.

10. Customer Utility Set-up.

Customer shall register with each utility company in the method that Company prescribes to receive utility services at Residence from that utility company. Company shall have the right to refuse to cover one or more utility bills if Customer fails to set up service in the prescribed manner. If Customer executes this Agreement but fails to register for and use utility services covered by this Agreement, Company shall be entitled to charge a one-time fee of $30 for administrative costs incurred in performing under this Agreement.

11. Electricity Service.

(a) Customer appoints Company to serve as Customer’s agent and attorney-in-fact (with the full power and ability to act on behalf of Customer) during the Term of this Agreement for all purposes relating to Customer’s relationship with Company’s preferred electric provider, including, but not limited to (i) the taking of any action expressly authorized or contemplated by this Agreement, (ii) the receipt, on behalf of Customer, of any bills, notices, disclosures or other communications from Company’s preferred electric provider, and (iii) the taking of any other action reasonably necessary and related to Company’s preferred electric provider providing electric utility service to Customer. Company’s preferred electric provider shall be entitled to rely upon this appointment of Company as agent and attorney-in-fact, and Customer agrees to be bound by all actions taken by Company in connection with the provision of electric utility service to Customer by Company’s preferred electric provider.

(b) Customer agrees to use electricity service through Company’s preferred electric provider. Company shall register for the electricity service and retain the account in its name, as agent and attorney-in-fact of Customer. Company shall obtain a unique Company-only electricity rate which will only be available to Customers using Company’s service. Should Customer decide to terminate Company’s service as provided herein, Company shall have the right to cause the disconnection of Customer’s electricity meter upon three (3) calendar days advance written notice following termination of this Agreement. If such a day is not a business day, then the following business day shall be used for all such purposes. Company shall automatically cause the disconnection of Customer’s electricity meter on the first business day following the final day of Customer’s term unless Company is provided advance written notice not to do so.

12. Termination of Electric Service.

Company shall have the right to cause the disconnection of the electricity meter of any Customer who is in default under the terms of this Agreement.

13. Payment Options.

Customer can pay Company by check, money order, credit/debit card, recurring or one-time bank bill-payment, or bank draft. Customer may choose a recurring automatic payment method each month with either a credit/debit card or bank draft information. Company requires an alternate payment method on file in the form of either a credit/debit card or bank draft information to withdraw payment in the event Customer does not provide payment by the Due Date. If Customer pays by any method other than a Company-registered automatic payment method, the payment must be received by the Company or postmarked by the Due Date. If Customer elects to pay by check, Company shall retain the account information contained on the check until this Agreement is terminated, and Customer authorizes Company to withdraw payment in the event Customer does not provide payment. If Customer elects to use a recurring automatic payment, Customer authorizes Company to automatically withdraw payment from its credit/debit card or bank account on the sixth (6th) calendar day following the Bill Date each month for the amount of the Customer’s invoice.

14. Utility Bill Division.

All bills for a single property will be added together (the “Group Balance”) for the Residence and assessed against all Customers at the Residence. Unless Customer otherwise notifies Company at the time of signing this Agreement, each Customer shall be primarily responsible for and pay to Company each month its proportional share of the Group Balance (“Standard Percentage”). For example, if there are four Customers in Residence, each Customer shall pay one fourth of the Group Balance. If each Customer at the residence agrees in writing to be billed at a different ratio, this change may be made by contacting Company’s Customer Service. Company shall not, however, sub-divide a bill to account for Customers residing in a Residence on a per day basis for any reason. Notwithstanding the fact that each Customer at the Residence shall be primarily responsible only for a percentage of the Group Balance, Customer understands and agrees that each Customer in a Residence is jointly and severally liable for all utility bills paid for by Company concerning Customer’s residence. If one or more Customers at the Residence do not pay their share of the Group Balance, the other Customers at the Residence shall be liable for the entire Group Balance.

15. e-Billing.

Company shall invoice Customer electronically via its Internet site each month for the percentage of utility charges at Residence that Customer is responsible for and has agreed to pay to Company. All official notifications sent by Company shall be in e-mail format and shall be sent to e-mail addresses designated by Customer on file with Company, and Customer hereby consents to receipt of electronic notifications and bills from Company. E-mail notice shall be effective upon sending. Customer understands that it is solely Customer’s responsibility to ensure receipt of e-mail and in the event that no e-mail is received it is Customer’s responsibility to notify Company of such. Customer understands and agrees that the only way to access utility billing information possessed by Company is through its Internet site. Company shall send all utility invoices each month after it receives the electricity bill for a given Residence. Any utility bills not received by Company in time to be sent out will be held by Company until the following month’s receipt of the electricity bill.

16. Direct Utility Payment.

Customer shall NOT pay the utility company directly unless told to in writing by Company. Customer agrees to pay Company for the amount invoiced, even if customer has paid a utility company directly without Company’s prior written approval.

17. Deposit.

Should a Residence signing up for Company’s service be a single-payor residence, Customer agrees to pay a deposit of no less than $275.00, due immediately upon executing this Agreement. Customer agrees to allow Company to deduct the funds directly from Customer’s account or charge Customer’s credit card, as applicable. The deposit shall be refunded to Customer within thirty (30) calendar days after the termination of this Agreement if Customer is not in default under this Agreement. Company shall have the right to use deposit monies for its business purposes subject only to the obligation to refund deposit to Customer if Customer is not in default at the termination of this Agreement. Company may also charge a deposit of no less than $275.00 per Residence, regardless of the number of payors, in response to circumstances associated with certain geographical areas.

18. Event of Default.

A failure to comply with one or more of the terms and conditions of this Agreement on the part of one or more of the Customers at the Residence shall constitute an event of default.

19. Confidentiality.

Customer agrees to allow Company to share any account or payment information with other Customers at the Residence, the parents of any Customer at the Residence, and other bill-paying parties upon request. Company shall not share credit/debit card numbers, automatic bank draft account information, social security numbers, and birth dates with any party except as provided herein. Notwithstanding the preceding sentence, if Company is required to send an account to an outside debt collections agency, Company shall provide any information necessary to employ such a service.

20. Failed Payment.

Should payment fail due to incorrect information, lack of funds, expiration, or for any other reason, Company will continue to attempt automatic withdrawal from Payment Method periodically until Company determines the funds to be uncollectable. Customer agrees to transfer funds as necessary in order to pay any outstanding balance and all NSF or other fees Company may have incurred while attempting to collect. Customer shall be in default on an invoice from Company if payment is not received by Company within five (5) calendar days of Customer’s Due Date. Company shall give all Customers at the Residence written notice by e-mail upon the occurrence of a default in payment by any Customer in a Residence. This notification shall be in electronic format as outlined herein. If payment has not been received by the tenth (10th) calendar day after Due Date, Company may, at its sole discretion, remove the Customer from Company’s service and continue to invoice remaining customers as outlined herein. Any balance left unpaid by Customer may be sent to an outside collections agency after ten (10) calendar days of Due Date. Once a Customer has been removed from Company’s service, he/she may only resume upon completing additional financial requirements and at the discretion of Company.

21. Customer Removal.

If all Customers at a Residence agree in writing, one or more Customers at the Residence may be removed from Company’s service. In this event, Company will recalculate the percentage owed by each remaining Customer. Should a Customer who is a utility account holder be removed from Company’s service, Customer agrees to have any utilities under his or her name transferred to another Customer at the same Residence. All Customers in the Residence understand and agree that the next utility account holder will be chosen by Company in its sole and absolute discretion.

22. Procedure Following Removal of a Customer.

Should a Customer be removed from Company’s service, a new Standard Percentage will be created by removing one roommate, then dividing among remaining roommates. Customer agrees to pay the new Standard Percentage of the Group Balance and all bills from that point to the end of service with Company. Customer agrees that once a roommate is removed from Company, the remaining Group Balance left unpaid by removed roommate will be divided according to the new Standard Percentage and added to the next month’s invoice.

23. Termination.

Company may cancel this Agreement immediately upon default by Customer or otherwise on three (3) calendar days written notice to any Customer. Customer may terminate this Agreement at any time; provided, however, that every Customer at the Residence must agree in writing to such termination and pay any outstanding Group Balance and/or Individual Balance. Any deposits or fees charged by any utility company after discontinuing Company’s service are solely the responsibility of Customer. Company shall have no obligation to pay any further utility bills pursuant to this Agreement following receipt of written notice to terminate. Each Customer at the Residence is jointly and severally liable and fully responsible to pay Company an amount equal to any bills charged to and paid for by Company notwithstanding termination of this Agreement.

24. Additional Rules and Requirements.

Customer agrees to adhere to and abide by any additional policies posted on Company’s Internet site. Company shall have the right to revise this Agreement at any time, with 30 calendar days advance notice and with changes clearly posted on Company’s Internet site. Customer must submit changes to Payment Method at least 3 business days before a scheduled draft. Changes received by Company after this period may be delayed until the following Bill Day.

25. Disclaimer of Warranties.

Company hereby warrants and represents to Customer that any Services will be provided and performed in a timely, competent and professional manner. EXCEPT AS SET FORTH IN THE PRECEDING SENTENCE, COMPANY MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, IN FACT OR IN LAW, WITH RESPECT TO THE SERVICES PROVIDED UNDER THIS AGREEMENT. COMPANY SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

26. Limitation of Liability.

Company shall not be liable for loss, injury or damage caused by delays, interruptions or causes beyond Company’s control. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER HEREUNDER FOR ANY INCIDENTAL, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES OF ANY KIND REGARDLESS OF WHETHER SUCH PARTY WAS ADVISED, HAD REASON TO KNOW, OR IN FACT KNEW, OF THE POSSIBILITY THEREOF.

27. Exclusive Remedy.

Customer acknowledges that its sole and exclusive remedy for Company’s breach of this Agreement is to cause Company to correct any failure on the part of Company in order to obtain the result for which the Customer contracted with Company. If Company is unable to provide the remedy set forth in this Section, Company’s liability to Customer for direct damages under this Agreement shall be limited to an amount equal to the aggregate fees paid by Customer to Company provided during the most recently concluded quarter.

28. Arbitration.

If a dispute arises between Company and Customer arising from or related to this Agreement, such dispute shall ultimately be resolved via binding arbitration under rules promulgated by the American Arbitration Association. Prior to the initiation of arbitration, the complaining party shall give notice of the alleged claim and each party shall engage in a good faith effort toward resolution. If the dispute cannot be resolved through good faith negotiations, Company and Customer shall submit the dispute to binding arbitration by an arbitrator appointed by the American Arbitration Association and the dispute will be arbitrated (not mediated) by that individual under the Association's Rules governing commercial arbitration disputes. The arbitration will be conducted in Waco, Texas unless all parties to the dispute otherwise agree in writing after the dispute arises and before commencement of the arbitration.

29. Legal Costs.

Customer agrees to pay Company’s costs and reasonable legal fees if Company is required to take legal action against Customer to collect monies due it or to enforce its rights under this Agreement.

30. Choice of Law; Venue.

This Agreement shall be governed by and construed in accordance with the law of the State of Texas. Venue shall be in McLennan County, Texas. By entering into this Agreement, Customer submits to the jurisdiction of McLennan County state courts and the federal court for the Western District of Texas, Waco Division.

31. Binding on Successors.

This Agreement is binding upon the Parties and their respective heirs, executors, administrators, legal representative, successors and assigns.

32. Non-Assignment.

Customer may not assign this Agreement to any other person without Company’s express prior written consent.

33. Headings.

Section headings are not to be considered a part of this Agreement and are not intended to be a full and accurate description of the contents hereof.

34. Severability Clause.

If any clause, sentence, paragraph, section or part of this Agreement is judged to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof.

35. Acknowledgment.

Customer hereby represents that each and every Customer understands this Agreement and is signing it after having read it carefully.

36. Survival.

Customer’s obligation to pay any outstanding balance pursuant to the terms of this Agreement, as well as Sections 6, 11, 12, 15 through 33 shall survive termination of this Agreement.

Updated: 11/28/2011