Rental Water Heaters For New Home Construction

Rental Water Heaters For New Home Construction General Information Agreement Terms & Conditions Current Rental Rates January 2008 18002663939 directenergy.com

Here are the terms of your rental agreement: Water Heater Rental Agreement Terms & Conditions The water heater you rent from us is backed fully by Direct Energy Essential Home Services. Our commitment to you, our rental customer, is to provide a reliable, troublefree water heater. Our commitment includes: Repair and maintenance of the water heater with no service charges or parts replacement charges except in the following circumstances: i) if you (or a third party not authorised by us) damage the water heater or if repairs are necessary because of use for which the water heater was not intended; ii) unless you are paying our hard water rental rate, if the water heater requires deliming, flushing or other repair due to water conditions (we cover only diagnostic work in these situations, hard water conditions are as determined by Direct Energy); or iii) where venting or piping requires cleaning, repair or replacement Our 24hourperday, 7daysperweek emergency phone number at 18002663939. A rental arrangement that can be transferred to the next homeowner if you sell your home. A buyout option under which you may elect to purchase your water heater at any time, for a price discounted to take into account the age of the water heater. (See details below.) A termination option allowing you to have your water heater removed. (See details below.) Customer commitment We will honour our commitment over the useful life of the water heater. In return, you agree that: You will pay your rental charges when due, together with interest on any late payments at interest rates we may set, acting reasonably. Your rental charges will be included on your utility bill, or we may choose to bill you separately through our service provider. Methods of payment will be set out on the bill you receive. We may change our rental rates from time to time by announcing rate changes in advance in bill inserts. You will use your water heater safely and responsibly, and in particular you will: i) ensure that no combustible, hazardous or flammable materials are used or stored near the water heater; ii) ensure that the water heater is not confined in a location where it is difficult to service or remove or where there is inadequate ventilation; iii) ensure that the vents and openings are kept clear and clean; and iv) provide us with access to the water heater whenever reasonably required for purposes of inspection, repair or removal It is your responsibility to ensure that the water heater is located in an area with sufficient drainage in the vicinity, and that the drainage is open and unrestricted, and we will therefore not be responsible for damage caused if the water heater leaks. Except as permitted by your buyout option and termination option under this agreement, you will not permit anyone who has not been authorised by us to service, repair, modify, move or disconnect the water heater. You will be responsible for any damage to the water heater if caused by you or unauthorised third parties or by fire, flood, accident or other insurable risks. During the term of this agreement the water heater remains our property, does not become a fixture and you will not tamper with any tag(s) or sticker(s) identifying the water heater as rented equipment. If you sell your home, you will advise the purchaser that the water heater is rented pursuant to this agreement. We will permit the purchaser to assume your rights and obligations under this agreement, effective from the date of sale, provided that (i) the purchaser is notified in the agreement of purchase and sale that the water heater is rented and is subject to these terms and conditions, and (ii) you advise us in advance of the purchaser s name and the intended date of sale. We may also accept performance of your obligations (including payment obligations) from other parties (such as tenants) but will not be required to do so. We may inquire about your credit history. You agree that we may terminate this agreement and remove the water heater if you fail to meet any of your commitments. At the end of the useful life of your present water heater, you are not obligated to rent and we are not obligated to supply replacement equipment, unless we mutually agree at the time. Personal information about you We collect personal information about you in order to establish and manage our business relationship with you. You authorise us to review information about your Direct Energy bill payments. We won t knowingly share this information with third parties without your permission, other than a party that we transfer or assign this agreement to. You may contact us if you d like more information about our affiliated companies or how we use personal information. Your buyout option You may purchase your rental water heater at any time for the applicable age reduced price shown on the buyout schedule on the reverse side of this brochure. You may exercise your buyout option by notifying us in writing or by calling a Direct Energy Rental Specialist at (416) 4953979 or toll free outside Toronto at 18004933034. When you exercise your buyout option, you accept the water heater in asis condition, subject to the balance of any transferable manufacturer s warranty, and you assume responsibility for the water heater and its repair and maintenance. You also agree to pay the buyout price when invoiced by Direct Energy. Your termination option You may terminate your rental and return your rental water heater to us at any time by notifying us in writing at the address set out in the section below entitled How to Contact Us or by calling a Direct Energy Rental Specialist at (416) 4953979 or toll free outside Toronto at 18004933034. Depending on the circumstances, there may or may not be charges associated with this termination of your rental as provided for below. If you terminate the rental during the useful life of your water heater and do not exercise your buyout option, you agree to arrange for the safe return of the water heater to us. You have two alternatives: i) you may call us and arrange for Direct Energy to disconnect and/or retrieve the water heater; or ii) you may have a qualified third party disconnect your rental water heater and then return it, along with the rating plate, safely to a designated Direct Energy location during return hours. (Call Direct Energy for the nearest location for returns.) If you choose to disconnect and/or return the water heater yourself or through a third party, you do so at your own risk and you agree that you will accept responsibility for all damages or claims resulting from the disconnection, removal and return of the water heater. If you choose to have Direct Energy disconnect, remove or retrieve the rental water heater, in most cases there will be a $75.00 charge for these services. (There is no charge if you are more than 32km (20 miles) from a Direct Energy return location or if we fail to retrieve your water heater within two weeks of your request or your water heater has been rented for 15 years or more.) Your rental (including your obligation to make rental payments for subsequent months) ends upon the return of the water heater in reasonable condition reflecting its age, normal use and local conditions. (If we fail to retrieve the water heater within two weeks of your request, we will not charge for subsequent months.) How to Contact Us 80 Allstate Parkway Markham, Ontario L3R 6H3 Attention: Rental Group 18002663939 Useful life of the rental water heater ends when Direct Energy or its authorised service provider deems the rental water heater cannot be reasonably repaired. (For instance, when there is terminal failure of the internal lining of the tank).

Current Monthly Rental Rates The following list shows the current monthly rental rates for Direct Energy Rental Water Heaters. 2008 Rental Chart Water Heater Type & Size Monthly Rental 2 Hard Water Monthly Rental 2 PV50 50 U.S. Gallons 1 DV50 50 U.S. Gallons 1 $20.03 + GST $19.28 + GST $23.49 + GST $22.61 + GST PV50 HI/PV60 50/60 U.S. Gallons 1 PV75 75 U.S. Gallons 1 PDV 5065 50 U.S. Gallons 1 Electric 60 60 U.S. Gallons 1 PR34 34 U.S. Gallons 1 $22.11 + GST $26.59 + GST $23.99 + GST $9.35 + GST $51.65 + GST $25.41 + GST $28.57 + GST $26.24+ GST CombiCor 50 50 U.S. Gallons 1 CombiCor 75 75 U.S. Gallons 1 $36.79 + GST $39.36 + GST $39.99 + GST $42.78 + GST Rinnai Tankless $32.68 + GST QVM990 Storage Tank 20 20 U.S. Gallons 1 $42.00 + GST $3.12 + GST 1 Capacity in U.S. Gallons may vary, depending on specific manufacturer. 2 Rates are subject to change upon one month s notice. 1 U.S. Gallon = 0.8327 Imperial Gallons = 3.7854 Litres. Your privacy is important to us. As a current customer, we re committed to offering you more value in the future. So every once in a while we ll mail or call you about some of the following: Tips to help you run your home more efficiently and reliably. Special moneysaving offers available exclusively to Direct Energy customers. News about Direct Energy products and services that will ensure you get the most out of your home, including new furnaces and central air conditioning systems (and Protection Plans for your current units), plus Natural Gas Price Protection Plans and water heater rentals, among many others. Of course, if you would prefer not to receive any of the above, call a representative at 18002663939, or email us at privacy@directenergy.com. For more information on our privacy policy, visit directenergy.com.

2008 BuyOut Prices for Your Water Heater Use this table to find the buyout price if you decide to purchase your rental water heater from Direct Energy. Simply find the column matching the size and type of your rental water heater and the age of your tank. Age of Your Tank Builders Water Heater: The age of your tank is determined based on the delivery date of the tank to the builder. The type of tank is as indicated on the rental rate chart on the left. The price for water heaters less than one year old is based on the equivalent installed cost through a mass market retail outlet. This includes an amount to reflect our typical installation charge. Age Discount: Buyout prices shown are determined by amortizing the starting price over the expected useful life of the water heater. Remember: When you purchase your water heater from Direct Energy, our rental agreement ends. You will be under no obligation to pay rent for subsequent months, and you will be responsible for service and maintenance of the water heater. Need help? The chart shows prices for almost all types of Direct Energy rental water heaters. If your water heater is not covered or if you are not sure of the type of water heater you have, or when it was installed, please call one of our Rental Specialist at 18004933034. BuyOut Schedule: 2008 Installations^ (Prices below include GST) 2008 Installs Going Forward PV50/DV50 50 Gallons 1 PV50 HI/PV60 50/60 Gallons 1 PV75 HI 75 Gallons 1 PDV 5065 50 Gallons 1 Electric 60 Gallons 1 Polaris 34 34 Gallons 1 COMBICOR50 COMBICOR75 Rinnai STORAGE TANK 50 Gallons 1 QVM990 75 Gallons 1 Tankless 20 Gallons 1 0 to 1 yr. old $ 1,197 $ 1,229 $ 1,502 $ 1,250 $ 882 $ 4,431 $ 2,237 $ 2,279 $ 2,436 $ 3,098 $ 273 1 to 2 yrs. old $ 1,148 $ 1,178 $ 1,440 $ 1,198 $ 845 $ 4,248 $ 2,144 $ 2,185 $ 2,335 $ 2,969 $ 261 2 to 3 yrs. old $ 1,093 $ 1,122 $ 1,371 $ 1,141 $ 805 $ 4,047 $ 2,042 $ 2,081 $ 2,225 $ 2,829 $ 249 3 to 4 yrs. old $ 1,035 $ 1,063 $ 1,299 $ 1,080 $ 736 $ 3,834 $ 1,935 $ 1,971 $ 2,107 $ 2,680 $ 236 4 to 5 yrs. old $ 974 $ 1,000 $ 1,222 $ 1,017 $ 718 $ 3,607 $ 1,821 $ 1,854 $ 1,982 $ 2,521 $ 223 5 to 6 yrs. old $ 909 $ 933 $ 1,141 $ 949 $ 670 $ 3,367 $ 1,699 $ 1,731 $ 1,851 $ 2,354 $ 208 6 to 7 yrs. old $ 841 $ 863 $ 1,054 $ 878 $ 620 $ 3,112 $ 1,571 $ 1,600 $ 1,712 $ 2,176 $ 192 7 to 8 yrs. old $ 768 $ 789 $ 964 $ 802 $ 566 $ 2,843 $ 1,435 $ 1,462 $ 1,563 $ 1,988 $ 175 8 to 9 yrs. old $ 691 $ 709 $ 866 $ 721 $ 509 $ 2,558 $ 1,290 $ 1,315 $ 1,406 $ 1,788 $ 158 9 to 10 yrs. old $ 609 $ 625 $ 764 $ 636 $ 448 $ 2,254 $ 1,138 $ 1,159 $ 1,240 $ 1,576 $ 139 10 to 11 yrs. old $ 523 $ 537 $ 655 $ 545 $ 385 $ 1,934 $ 977 $ 994 $ 1,064 $ 1,352 $ 119 11 to 12 yrs. old $ 431 $ 442 $ 540 $ 449 $ 317 $ 1,594 $ 804 $ 820 $ 877 $ 1,114 12 to 13 yrs. old $ 333 $ 342 $ 418 $ 348 $ 246 $ 1,234 $ 623 $ 634 $ 678 $ 862 13 to 14 yrs. old $ 230 $ 236 $ 289 $ 240 $ 169 $ 852 $ 431 $ 438 $ 468 $ 595 14 to 15 yrs. old $ 121 $ 124 $ 151 $ 126 $ 447 $ 226 $ 230 $ 246 $ 313 15+ years old Understanding your Tankless Water Heater They operate differently than a tankstyle water heater. They provide consistent water temperature while monitoring water flow. Minimum and maximum flow rates should be considered before changing any water fixtures in the house. Unit and standard vent kit are property of Direct Energy. 1 All tank sizes in U.S. Gallons. 1 U.S. Gallon = 0.8327 Imperial Gallons = 3.7854 Litres.

Direct Energy 8Point Promise We always strive to deliver our best possible products, services and support available, and our 8Point Promise is proof of this commitment. 1: We promise to arrive on time and ready to work. 2: We promise to clearly outline the work we ll do. 3: We promise a safe and clean workspace. 4: We promise to be professional and efficient. 5: We promise to use stateoftheart diagnostics where applicable. 6: We promise to check our work. 7: We promise to give you honest advice. 8: We promise to be accountable. For more information, visit directenergy.com/8pointpromise 18002663939 directenergy.com 2 Rates are subject to change upon one month s notice. ^All prices are valid from January 1, 2008 to December 31, 2008. Typical repair costs without plan. Installation and model costs may vary. If we cannot arrive on time, we ll call to let you know. Direct Energy, Direct Energy Essential Home Services and the Energy Bolt Design are trademarks of Direct Energy Marketing Limited. DE.316.FOR (REV.JAN/08)

Renting vs. Owning. Here s what to consider. If you are thinking about buying a water heater, you should consider the costs that you could potentially face over the full life of your water heater, not merely the purchase price. Such costs could include the following: Extras such as installation, delivery charges and sales tax. Advertised prices may not include all these extra charges, and water heater models being advertised may not be suitable for your specific needs. Service and parts replacement costs. A water heater typically requires service an average of two to three times over its useful life. Service and repairs can be unexpected and costly. Typical Water Heater Repairs Parts Ventor Motor Gas Valve Flame Sensor Parts and Labour Costs (Rented Tank) $0.00 $0.00 $0.00 Parts and Labour Costs (Customer Owned Tank) $672.25 $697.00 $342.25 +GST + GST + GST Thermocouple $0.00 $177.50 + GST Warranty coverage. Before you buy, read the fine print under warranty coverage. Find out about the exclusions, such as who pays for labour and any other conditions associated with a warranty claim. Also, find out how long the parts are covered under warranty and who you will be able to call to receive repair coverage. Length of time you will be in your current home. If you are planning to sell your home, you may not capture the value of the water heater in the sale price to the new owner.