Term of Service
Agway Energy Services will provide and the Customer shall purchase all of their electricity requirements from Agway Energy Services, some or all of which shall include cleaner renewable energy. When you sign up for the Sterling Green™ option through Agway Energy Services, Agway Energy Services will become your clean energy provider. Your selection will go into effect on your next scheduled meter reading by your utility. Agway Energy Services' supply of energy to you shall continue until the first scheduled meter reading occurring 24 months thereafter ("Initial Term"). This Agreement shall automatically renew for successive one-year periods ("Renewal Term") unless either party notifies the other party in writing thirty (30) days prior to the last meter reading date, which is the annual date of termination. As long as you remain enrolled in the Sterling Green™ option, you will be supporting the generation of cleaner power generated in New York State using renewable energy sources such as wind, water and bioenergy. You may drop your enrollment in Sterling Green™ at anytime with no penalty by providing us with 30 days written notice.

Price
When you enroll in the Sterling Green™ option through Agway Energy Services you will receive electricity through Agway Energy Services' basic variable rate program, under which the price of electricity may change or be modified on a monthly basis without notice. In addition, a monthly premium of up to 1.5 cents per kWh shall be charged for the portion of your energy purchases that reflect renewable energy. This premium is added to your basic electric supply charges from Agway Energy Services. This surcharge helps to cover the gap in price between cleaner renewable power and that of more polluting non-renewable conventional generation. Depending on the option you choose, all or part of your total monthly electricity usage will come from renewable sources located in New York. Please see our semi-annual environmental disclosure label for more information.

Customers that choose the Sterling Green™ option can expect to pay a monthly premium as illustrated below. If your household uses approximately 650 --kilowatt hours (kWh) of electricity a month, the estimated monthly renewable energy premium would be as follows:

• 100% Renewable Energy Signup Level
  estimated $9.75 monthly Sterling Green™ premium (1.5 cents/Kwh x 650 = $9.75)
  

Your actual monthly premium for the Sterling Green™ option will vary each month, along with your electricity use that varies from month to month. Regardless of which signup level you choose, Agway Energy Services will become your energy supplier and your utility will continue to deliver your electricity, handle billing and respond to energy-related emergencies. In the event of an electric power outage or other emergency, please use the following numbers to contact your utility:

NYSEG at 1-800-572-1131
National Grid Power Corp. at 1-800-892-2345

Sterling Green™ is sourced in New York State and is a blend of new wind energy from facilities that began operation after January 1, 1998, hydroelectric energy from facilities with a typical output of less than 30 megawatts, and bioenergy from recovered methane and clean wood waste and forest droppings that would otherwise be unused. No trees are cut down for the direct purpose of providing fuel for electricity generation.

The Sterling Green™ energy resource mix is as follows:

100% Renewable Energy Signup Level
• 40% new wind
• 30% eligible hydroelectric
• 30% bioenergy/plant material

When you enroll in the Sterling Green™ option, you will be supporting New York-based renewable energy initiatives. We reserve the right to balance the sale and delivery of energy during a 3-month period following each calendar year. All rights and interest in Emission Reductions or Credits (Offsets) are assigned to, shall be and remains the sole property of the customer. You agree not to resell these emissions credits.

The level of renewable energy reflected in the Sterling Green™ option you have chosen shall be provided to you following your initial enrollment and shall remain in effect during the entire Term of Service. For the remainder of the calendar year, the renewable energy mix shall be consistent with the disclosure label in effect at the time of your enrollment. If our renewable energy costs increase, we reserve the right to modify your mix or change the premium at anytime, consistent with Green-e standards.

Title
All electricity sold under this Agreement shall be delivered to the utility transmission system load bus, which is defined as the "Point of Delivery." Title to and possession of all electricity sold and delivered under this Agreement shall pass from Agway Energy Services to the Customer at the Point of Delivery.

Billing and Payment
Agway Energy Services or your utility will bill you monthly for electricity under this Agreement at the price agreed to herein, and you will pay each bill in full within twenty (20) days of the invoice date or be subject to a late payment charge of 1.5% per month. In the event you fail to provide payment when due, Agway Energy Services will not terminate this Agreement without first providing you and your utility with 15 days prior notice after the payment due date. Termination of service is allowed upon completion of such notification procedure. Agway Energy Services reserves the right to pass along increases in Utility charges applied directly to Agway Energy Services (e.g. accounts receivable billing charges, etc.), which are a result of Public Service Commission orders or actions.

Taxes and Laws
Except as otherwise provided in the Agreement or provided by law, all taxes of whatsoever kind, nature and description, due and payable with respect to Customer's performance of its obligations under this Agreement, shall be paid by Customer. The parties' obligations under this Agreement are subject to any validly issued present and future legislation, orders, rules, regulations of a duly constituted governmental authority having jurisdiction over this Agreement or the services to be provided herein.

Change of Service, Public Service Commission Oversight & Consumer Protection
The services provided by Agway Energy Services are protected by the terms and conditions of this Agreement. Should you have any questions or concerns about this agreement, please feel free to contact us at 1-888-982-4929, write us at Agway Energy Services, P.O. Box 4819, Syracuse, NY 13221-4819, or visit our web site at www.agwayenergy.com. The services provided by Your Utility are protected by the provisions of the Home Energy Fair Practices Act. Customer may obtain additional information by contacting Agway Energy Services at 1-888-982-4929, or the Public Service Commission (PSC) at 1-800-342-3377, or by writing the PSC at: New York State Public Service Commission, Office of Consumer Education and Advocacy, Three Empire State Plaza, Albany, New York 12223, or through its website at: http://www.dps.state.ny.us. The PSC will monitor complaints against all energy companies. It will not resolve complaints, but an excessive number of complaints may result in an energy company no longer being eligible to supply electricity in New York State. The PSC Complaint number is 1-888-697-7728.

Dispute Resolution
In the unlikely event of a billing dispute or a disagreement involving any essential element of this Agreement, Agway Energy Services will use its best efforts to resolve the dispute. Customer is obligated to pay each bill in full while the dispute is pending. If Agway Energy Services cannot resolve a billing dispute within forty-five (45) days, the billing dispute shall be brought before the court located nearest to where customer resides with jurisdiction over the amount and nature of the dispute.

Limitations on Liability
Agway Energy Services will in no event be liable to you or to any other party for any consequential, punitive, indirect, exemplary or special damages, whether arising in tort, contract or under any other common law or statutory claim, in connection with the services that we provide. You will also not be liable to us for any such damages in connection with the service you receive. Agway Energy Services shall not be liable for interruption or shortage of supply, nor any associated loss or damage resulting from causes outside our reasonable control.

Agway Energy Services shall not be in breach of its obligations under these terms and conditions to the extent that our failure to perform is caused by forces or circumstances beyond our reasonable control. These include, but are not limited to, unusually severe weather, acts of God, terrorism, fire, drought, flood, and failure of the Independent Service Operator or EDC to transmit electricity or support operations of any of our independent Suppliers or vendors.

Agway Energy Services will not be liable for any lost profits. Our liability and yours is solely limited, to the extent allowed by law, to actual damages not to exceed the value of any electricity purchased or sold, except in cases of our gross negligence, willful misconduct or bad faith. These terms and conditions and any related agreements between you and Agway Energy Services shall not be deemed as creating any rights in any third party, or as giving rise to third party liability.

Controlling Provisions
All matters affecting the interpretation of this agreement shall be governed by and construed according to the laws of the State of New York. THERE ARE NO WARRANTIES OR REPRESENTATIONS OTHER THAN THOSE EXPRESSLY SET FORTH HEREIN, AND NO OTHERS SHALL BE HONORED. Should any part of this agreement be declared invalid for any reason, such decision shall not in any manner affect the validity of the remaining portion of this agreement, which shall remain in full force and effect as if the part determined to be invalid had not been contained herein at the time of the execution of this agreement. If at some future date there is a change in any law, rule, regulation or pricing structure whereby Agway Energy Services is prevented, prohibited or frustrated from carrying out the terms of the Agreement, then, at the sole discretion of Agway Energy Services, this Agreement may be cancelled.

Any questions regarding these terms and conditions or your service with Agway Energy Services, should be directed to us in writing at Agway Energy Services, P.O. Box 4819, Syracuse, NY 13221-4819.

Environmental Disclosure Label