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The Citizen Corporation hopes that all of its Forward Rental Agreements will reach Completion. Termination of the Agreement through its completion provides the best departure relationship between Citizen and its valued customers. Nonetheless, Citizen realizes that completion may not always be possible. Sometimes people are temporarily unable to meet their obligations or they intend to move and are therefore no longer able to enjoy the benefits of the REnU as it is attached to the old home.

To respond to each of these scenarios, Citizen will try to be as flexible as possible. In the event that a customer decides to move, the Company is willing to provide three reasonable options.

1) Our customer can simply call us and notify us of their intention to move, and furthermore, would like us to relocate the REnU to their new home. Citizen is willing to do this once – free of charge – for all 10-year contracts. Thereafter, the Company will charge a reasonable relocation fee for each move; the Company is even willing to spread-out the payments of the relocation fee over the remainder of the contract.

2) Our customer – as an alternative – can transfer the REnU to the new home owner, so long as all parties agree and the new mortgage is still willing to subordinate. This is quite possibly the easiest of the options and has the added incentive of a low fixed-price for electricity to the new homeowner. The original customer would, however, be giving up their rights to the contract rate and would in fact have to agree to a new contract rate if the customer chose to install a new REnU at the new home. All contract periods are eligible for this option.

3) Our customer, as a last resort, can notify us of their intention to terminate the contract prematurely with reason and will therefore only lose their last month's rent. By choosing this option, the customer is demonstrating good faith to the Company by being forward and reasonable, and thus, will not be subject to a refusal period if the customer chooses to install a new REnU system in the near future. Again, all contract periods are eligible for this option. Citizen believes that these options are reasonable and fair for its customers and do not place a heavy burden on the customer if the customer becomes unable to meet the full obligations of any particular Forward Rental Agreement.

In the worst case scenario, where a customer may default on their obligation, the Company will also try to be as fair as possible. There are typically two circumstances that arise when a customer goes into default. The first is by non-payment; the second is by system-abuse.

In the first situation, a customer may temporarily become unable to pay their monthly rental fees. Citizen would hope that the customer would notify the Company prior to any missed payment so that Citizen could attempt to work out an arrangement. In limited cases, a deferment may be granted but is not guaranteed. In the event that the customer notifies Citizen of the forthcoming condition, the Company can act appropriately and plan to relocate the REnU. If our customer is willing to do this, then Citizen will waive the final payment and not subject the customer to a refusal period.

The customer will, however, lose his or her last month's rent. If the customer neglects or refuses to notify the Company of the situation, and ignores the Company’s attempts to resolve the matter fairly, then Citizen reserves the right to full remedy under the FRA, which includes but is not limited to, removal of the REnU immediately, retaining of the last month's rent, imposing of a five-year refusal period, and collection of all outstanding rental fees.

In the second situation, a customer may deliberately or through gross neglect abuse the REnU in a manner of ways. One such abuse would be the customer blatantly damaging any or all of the REnU out of either malice or in an attempt to limit the production of the equipment. Another such abuse would be the customer tampering with the electronic components or code to either limit the generation of electricity or minimize the amount of generated electricity reported.

Other such abuses include but are not limited to intentionally altering, tampering, or damaging the REnU or any of its sub-components in such a way as to harm another individual or cause damage to adjacent fixtures and structures, or to implicitly or explicitly cause someone else to do any of the aforementioned, or to knowingly allow someone to do so without attempting to inform the proper authorities of such actions. This is not meant to be an exhaustive list. It is merely a broad representation of such abuses that may cause the Company to consider the customer in default by act of system abuse.

If a customer is in default because of sytem abuse, Citizen reserves the right to full remedy under the FRA, which again includes but is not limited to, removal of the REnU immediately, retaining of the last month's rent, collection of all outstanding rental fees, imposing of a life-time refusal period, and seeking remuneration for damages and losses.

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Agreement Termination Options
Decommissioning the REnU
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