RESIDENTIAL WATER HEATER RENTAL AGREEMENT - TERMS & CONDITIONS

RESIDENTIAL WATER HEATER RENTAL AGREEMENT – TERMS & CONDITIONS

These Terms & Conditions (which together with the Water Heater Rental Program Details page to which they are appended are collectively referred to as this “Agreement”) are the full and complete agreement with the Customer (the “Customer” being the name and signatory on the Water Heater Rental Program Details page who is the person entering into this Agreement with Summitt Home Services LP). If more than one person is named on the front of the Customer’s utility bill, the Customer understands that each person shall be deemed the “Customer” and each person has the authority to enter into this Agreement. Each person shall be individually liable, and all of the Customers are collectively jointly and severally liable, for all obligations, liabilities and indebtedness imposed on Customer by this Agreement.

–To: Summitt Home Services LP (“Summitt”) and the Gas Distribution Company (or Companies) for the Service Address (the Customer’s “Utility”)

1. Appointment of Agent
The Customer hereby appoints Summitt to be their agent and Water Heater Rental (“WHR”) supplier for all purposes related to the arrangement of WHR billing to the Customer’s Service Address on this Agreement (“Appointment of Agent”). The Customer’s Utility and all other related third parties are entitled to rely upon all actions taken, or documents signed, by Summitt in connection with or pursuant to this Appointment of Agent as though the Customer had taken such action or signed such document including, without limitation, the negotiation, implementation, operation, performance, amendment and termination of any WHR arrangement. This Appointment of Agent replaces any Appointment of Agent Agreement with any existing WHR supplier. This Appointment of Agent shall be effective from the date the Customer signs the Agreement and shall continue to be in effect until this Agreement is terminated either by the Customer or Summitt in accordance with the procedures for termination set out in these Terms and Conditions below.

2. Our Service Commitment to the Customer
i) Summitt’s commitment to the Customer is: to provide the Customer a WHR, installation of that water heater and repairs, maintenance and/or replacement of the water heater due to normal wear and tear as determined by Summitt in the exercise of its reasonable business judgment. Extra service charges may apply in the following circumstances: if repairs or service work become necessary because the water heater is at any time connected to other equipment at the Service address (the “Premises”); if repairs are necessary because of damage caused by the Customer or a third party, or as a result of use for which the water heater was not intended; if additional wiring, plumbing, venting or piping is required to meet applicable building codes, regulations or installation requirements. Summitt will not be required to deliver the water heater sooner than t e n ( 10) days after the date on the Agreement. If the Customer cancels an installation appointment within 24 hours of the scheduled appointment date or fails to be present at the scheduled appointment an $85 cancellation fee may apply.

ii) If at any time Summitt deems that the Customer’s water tank is in need of replacement in consequence of normal wear and tear as referenced in the immediately preceding paragraph, the Customer shall receive a water tank of comparable size and type at the then current Summitt rental rate for that water heater. For cancellation policies please see Section 4. An emergency telephone number (1 877 282 8265) is available to the Customer 7 days a week, 24 hours a day to handle the dispatching of emergency service requirements.

iii) The Customer has the option to terminate this Agreement (see Section 9) at any time or to purchase their water heater; in either case by paying the applicable purchase or termination amounts (see Section 4). Should the Customer sell their home, this Agreement is transferable to the purchaser of the Premises.

3. Customer’s Commitment To Summitt
i) Summitt will honour its Service Commitment and, in return, the Customer agrees that: The Customer represents and warrants that they have authority to enter into this Agreement either as the owner of the Premises, spouse of such owner, or because the Customer has been authorized to enter into this Agreement as such owners duly authorized agent. The Customer’s water heater rental automatically commences the date their water heater is installed or the Customer’s enrollment in the program is accepted by Summitt, or if they have purchased the Premises after the water heater was installed, the water heater rental commences on the date of that Customer’s purchase of the Premises.

ii) The Consumer’s total monthly cost to rent the water heater is made of: 1. The monthly rental cost of the tank as indicated on the first page of this Agreement, 2. The installation of a mixing value at an additional $4.99 per month if selected. If the installation of a chimney liner which is $2.95 per month if required and applies to Conventional Vent only, 4. Any monthly rental rate increases (if any), is subject to change in June each calendar year, and shall be limited to the posted Consumer Price Index published annually, and 5. applicable federal and/or provincial sales of goods and services taxes. The total rental charge is paid by the Customer on a monthly basis either to Summitt directly or the Customer’s natural gas utility (i.e., Enbridge Gas Distribution). If the customer pays Enbridge Gas Distribution, the total rental charge will appear in the “Other Companies” section of the Customer’s utility bill and Enbridge Gas Distribution payment terms and billing cycle will apply. If the Customer pays Summitt for the total rental charge, payment will be made by pre- authorized payment either through the Customer’s bank account or by credit card.

iii) For such pre-authorized payment, the Customer expressly authorizes Summitt to have the Customer’s payments deducted from their bank account or charged to their credit card, the amount of any charges, interest and other amounts due under this Agreement (each being a preauthorized payment or “PAP”). Any overdue payment will be charged at a rate equal to 1.5% per month (or 19.6% per annum), compounded monthly. The Customer will be charged $25 for any PAP that cannot be processed for any reason.
iv) The Customer will not remove the water heater from the Premises and will maintain it in a safe, dry, heated, unobstructed and accessible location, free of any flammable, hazardous or combustible materials. The Customer will ensure the water heater is located in an area with sufficient drainage in the vicinity and that the drainage is open and unrestricted and Summitt, therefore, will not be responsible for damage caused if the water heater leaks. The Customer will ensure that any identification or labeling is not removed from the water heater or covered or obstructed in any manner.

v) Except as specifically permitted herein, the Customer will not permit or authorize anyone other than Summitt’s authorized representatives to service, repair, move or, disconnect the water heater. The Customer will permit Summitt’s authorized agents or employees to have access to the Premises at all reasonable hours for the purposes of installing, servicing or removing the water heater. If the Customer sells the Premises, the Customer agrees to inform the purchaser that title to the water heater is owned by Summitt and that the water heater is being rented by the Customer from Summitt pursuant to this Agreement. The purchaser will assume the Customer’s rights and obligations under this Agreement effective the date of sale. The Customer authorizes Summitt to respond to any information requests relating to their WHR account made by or on behalf of the purchaser.

vi) The Customer agrees that Summitt is the owner of the water heater and that Summitt is not transferring title to the water heater to the Customer. Summitt may register its interest in the water heater on title to the Premises. To the extent permitted by law, the Customer hereby waives any right to receive a copy of such registration and appoints Summitt as their agent for the purpose of making and effecting any such registrations. The Customer agrees that the water heater is and will remain the property of Summitt even though it may become affixed to the Premises. The Customer agrees to keep the water heater free of all liens, security interests, mortgages and other claims.

vii) The Customer is responsible for maintaining effective operation of any plumbing and pumping systems supplying water to the water heater during installation, servicing and operation of the water heater.

4. Purchase Option by the Customer and Termination of the Rental Agreement
i) The Customer may terminate this Agreement by purchasing the water heater on an “as is, where is basis”. The Customer may exercise that purchase privilege by providing Summitt with at least thirty (30) days’ prior written notice of their desire to purchase the water heater, accompanied by the Customer’s payment of the Buyout and any delinquent payments under or pursuant to this Agreement. If the Customer chooses to purchase the water heater, the buyout calculation (‘Buyout”) shall be an amount equal to the then remaining undepreciated value of the water heater, determined by Summitt on a straight-line basis. The buyout amount shall be as follows (subject to a minimum residual amount of $100) plus HST:

ii) The Customer may choose to terminate this Agreement by returning the water heater to Summitt and providing Summitt with thirty (30) days prior written notice of termination. The water heater may be returned as follows: (a) The Customer obtaining a return authorization number from Summitt and having the Customer’s own qualified contractor disconnect the water heater at their own risk, and arranging a pick-up of the tank with Summitt, the charge for which shall be $325; or (b) requesting that Summitt disconnect and remove the water heater and the Customer providing access to the Premises during normal business hours so that Summitt may remove the water heater, the charge for which shall be $375. Any termination pursuit to Section 4.ii) is only effective when the Customer has complied with the foregoing and the water heater has been returned. Should any unreasonable or excessive wear or use of the water heater be determined, the Customer shall be responsible for repair charges calculated as follows: If wear is identified as i) dented casing - $200 repair charge, ii) replacement of each damaged valve - $150 repair charge, iii) missing rating plate - $200 repair charge, and iv) other repairs shall be charged to the Customer at Summitt’s cost (not to exceed $500); plus all applicable taxes. The Customer will pay such charges when billed by Summitt. The Customer will not have to pay Summitt any any rental charges for periods after the Customer has returned the water heater and has paid Summitt all other amounts owing by them under this Agreement.