Compensation Agreement between XR Energy Inc. and East Coast Power and Gas

Summary

XR Energy Inc. and East Coast Power and Gas (EC P&G) have entered into an agreement where EC P&G will pay XR Energy $0.04 per therm for variable price energy products sold to XR Energy clients. The monthly price for these clients is set by EC P&G and communicated to XR Energy, based on wholesale costs plus a $0.17 markup per therm. Any increase in markup must be mutually agreed upon. EC P&G cannot solicit XR Energy clients without permission, and clients may switch providers unless under a long-term contract.

EX-10.5 2 xr_ex105.htm COMPENSATION AGREEMENT xr_ex105.htm

EXHIBIT 10.5

Compensation Agreement between XR Energy Inc. and East Cost Power and Gas (EC P&G)

Variable price products will pay out to XR Energy $0.04 (Four cents) net, per therm on the twentieth of the following month for the previous months meter reading.

Price each month, for XR Energy clients, will be determined by EC P&G and forwarded to XR Energy by E-mail. the Data used to determine price will be EC P&G wholesale cost including: 1) The cost of Gas 2) Transportation to the appropriate City Gate 3) Utility pass through costs 4) Transportation management fee's plus $0.17 net. ($0.I 3 to EC P&G and $0.04 to XR Energy) per therm.

If market conditions allow for an increase in the price above the $0.17 markup to our clients, the new mark-up will be agreed upon by EC P&G and XR Energy, prior to billing of.XR Energy clients.

EC P&G agrees not to solicit XR Energy clients without prior notification and agreement.

XR Energy clients are free to switch to any ESCO it wishes without penalty or prejudice, unless committed to a long term fixed contract.

373 Smithtown Bypass. Ste.l98 Hauppauge, NY 11788

Phone: (631) 913-8090 Fax: (631) 930-3960