Once an Application has been reviewed and approved by CenterPoint Energy, qualifying Project Sponsor Applicants will receive a Standard Offer Program Agreement (Agreement) offer similar to the sample Standard Offer Agreement as Appendix B to the Program Manual. Because this is a Standard Offer Program similar to that offered by other utilities in Texas, the terms of the Standard Offer Agreement are uniform and effectively non-negotiable, except where it can be demonstrated to the satisfaction of CenterPoint Energy that unique circumstances merit and require revision. In order to incorporate each Project Sponsor's project information, the approved Application will be Incorporated by Reference as an attachment to the Agreement.

Once the Standard Agreement is signed by both the Project Sponsor and CenterPoint Energy, the Project Sponsor's primary obligation will be to perform the following:

• Respond effectively to calls for Scheduled and Unscheduled curtailments of the contracted Curtailable Loads when notified by CenterPoint Energy.
• Monitor loads during Scheduled and Unscheduled Curtailments, and maintain the loads at the desired minimum throughout the duration for the event(s).

The primary obligations of CenterPoint Energy will be to perform the following:

• Perform the Monitoring and Verification activities for each Project Sponsor site in order to verify and measure the Demand Savings for each Curtailment.
• Calculate and issue the "Scheduled Curtailment Payment" by about July 15 of each year, based on verified Demand Savings relating to the annual Scheduled Curtailment, for as long as the Agreement is in effect.
• Calculate and issue the "Performance Period Payment" in November each year based on verified Demand Savings relating to the Unscheduled Curtailment(s) occurring between May 1 and September 30 each year.