On Feb. 5, 2008, GEXA Energy terminated Kim's employment as a database
administrator and permanently revoked his access to all GEXA Energy facilities,
computer networks, and information technology systems, the report says.
Approximately three months later, Kim remotely accessed the GEXA Energy computer
network and GEXA Energy Management System (GEMS) database.

While connected to the GEXA Energy computer network, Kim recklessly caused
damage by, among other things, issuing various Oracle database commands that
created a new data table in the GEMS production database. When copied to the
GEMS staging database, that caused the automated script to fail, thus impairing
the availability of data.

As a result of Kim's intrusion into its protected computer system, GEXA
Energy incurred a loss of at least $100,000 - the costs associated with
troubleshooting, securing, and repairing the GEXA Energy computer network and
GEMS database, the report says. Kim was indicted in June 2009.

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