True Fixed Rate Low Monthly Payment Financing for Energy Efficiency Improvements UPDATE 04/01/13

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1 } True Fixed Rate Low Monthly Payment Financing for Energy Efficiency Improvements UPDATE 04/01/13

2 AFC First A Na,onal Leader in Energy Efficiency Lending and Programs Founded in 1947, AFC First s sole business is the management of contractor and sponsor driven energy improvement financing programs na,onwide our primary focus since 1999 We pride ourselves in working in an effecnve and collaboranve way to design and administer customer and contractor- friendly loan programs that achieve and surpass the sponsor s objec,ves both in term of loan volume as well as customer and contractor sa,sfac,on We manage a na,onal network of over 5,000 approved energy efficiency contractors and work with states, municipalines, unlines and equipment manufacturers to promote and develop financing programs

3 AFC First A Na,onal Leader in Home Energy Efficiency Lending and Programs We provide loans in all 50 states with flagship programs including: AFC First s NaNonal EnergyLoan Pennsylvania s Keystone Home Energy Loan Program ConnecNcut s Solar Leasing Program Kentucky Home Performance Financing Efficiency Maine s PACE and Power Saver programs Energize Delaware Financing Illinois On- Bill Energy Loan ConnecNcut On- Bill Energy Loan Hawaii On- Bill Energy Loan

4 AFC First A Na,onal Leader in Home Energy Efficiency Lending and Programs Named 2013 Alliance to Save Energy Andromeda Star of Energy Efficiency award winner Named 2013 State and Local Energy Report s Single Family program award winner Selected as one of the nanonal pilot lenders for the U.S. DOE/HUD Power Saver loan program Designated by the US Department of Energy as the nanon s first private, non- unlity Home Performance with ENERGY STAR sponsor Appointed exclusive originator/servicer for WHEEL (Warehouse for Energy Efficiency Loans), the nanonal secondary market program endorsed by the U.S. DOE and NASEO Designated as a BPI TesNng Center, we operate the Green Energy Training Center & Academy for both class room and on- line Home Performance, BPI and contractor sales training

5 A True Fixed Rate Low Monthly Payment Op,on Most consumers want the stability and certainty of a fixed monthly payment and many are reluctant to make the investment in energy efficiency upgrade if the only financing opnon they are offered by a contractor is a large cash payment or the type of variable payment or "teaser" rate plan that converts to a much higher rate and payment when the promononal period is over. The most appropriate and, in our programs history, the most successful type of financing for this kind of improvement is a simple, unsecured term loan with minimal paperwork for both the contractor and consumer with eligible measures being clearly defined using ENERGY STAR or advanced performance standards. While most banks and other lenders typically limit loan size and terms on these types of loans, AFC First specialize in fixed term unsecured loans to 10 years. This provides payment security to the customer, affordable monthly payments and the ability to pay the loan off early without pre- payment penalty.

6 AFC First Na,onal EnergyLoan Loans from $1,000 to $25, % Financing Available Your First 6 Payments Are on Us! Promo9onal Op9on No Energy Audit Required Except for Whole House True Fixed Rate & Fixed Monthly Payments Not a Teaser - Rate and Payment Can Never Change No Lien Filed on Home, No Home Equity Required New Homeowners Eligible No Points, Fees or Closing Costs No Fees to Contractor for Standard EnergyLoan 3, 5, 7 or 10 Year Term No Penalty for Pre- Payment

7 Na,onal EnergyLoan True Fixed Rate Unsecured Energy Home Improvement Financing from AFC First Loan Amount Max Term Monthly Payment Per $1,000 at NO FEE Rate ONE- TIME CONTRACTOR BUY DOWN FEE FOR FULL TERM CONSUMER RATE Available for All Qualifying Improvements Available for Whole House Home Performance with ENERGY STAR Only STANDARD FIXED PAYMENT/ FIX RATE TERM OPTION NO FEE 2% 4% 6% 8% $1,000 to $3, $33.69 $3,001 to $5, $27.21 $5,001 to $7, $22.75 $7,501 to $10, $ % 11.99% 10.99% 9.99% 8.99% $10,001 to $25, $18.19 TEN YEAR FIXED PAYMENT/ FIX RATE TERM OPTION NO FEE 4% 9% 12% 15% $1,000 to $25, $ % 12.99% 11.99% 10.99% 9.99% OPTIONAL CONTRACTOR OR SPONSOR PROMOTION: YOUR FIRST (3 OR 6) PAYMENTS ARE ON US! 3 Month Contractor or Sponsor Pays 3 Month of Payments Upfront / 120 Month Term Only 6 Month Contractor or Sponsor Pays 6 Month of Payments Upfront / 120 Month Term Only (888) energyloan.net afcfirst.com

8 What is True Fixed Rate Financing? Credit Card or Promo,onal Finance Company Programs 18% to 26.99%! or a Short Term Teaser Rate Interest Rate is Never Really Locked in Read the Fine Print AFC First EnergyLoan & State Programs 0.99% to 13.99% depending on state and program True Fixed Rate Rate and Payment are Fixed for Life of Loan $2,500 $63 $39 $5,000 $125 $78 $10,000 $250 $155 $15,000 $375 $233 $20,000 $500 $310 Credit Card payments based on 2.50% minimum payment factor EnergyLoan payment based on ten year, fixed rate, 13.99% APR Many home improvement and manufacturer s financing opnons are finance company- type programs with promononal or teaser interest rates for an introductory Nme which then revert to a very high rate if the loan balance is not paid off during the promononal period. These credit card types of financing also do not necessarily guarantee a fixed rate or payment for the loan term. True Fixed Rate Low, Monthly Payments Drive Sales! EnergyLoan from AFC First is a simple interest, fixed rate loan with longer terms and lower payments available than typical bank or other types of unsecured home improvement financing. The monthly payment and interest rate can never change. And since there is no penalty for pre- payment, the customer may pay it off or make addinonal principal payments at any Nme.

9 Who is Eligible for the Na,onal EnergyLoan Program? All homeowners who are making qualifying improvements to their primary residence or vacanon home (1 to 2 unit primary residence or vacanon home on permanent foundanon) are eligible. Good credit and the ability to repay are required; all income levels are eligible.

10 What Improvements Can Be Financed? AFC First s NaNonal EnergyLoan program is for most energy related and renewable energy home improvements. Special state programs may have certain restricnons. All Makes and Models of Installed Equipment Home HeaNng and Cooling systems including Solar and Geothermal Windows, Doors, Siding, Roofing Air Sealing & InsulaNon LighNng Controls, Electrical and Plumbing Most other types of energy related home improvements Whole House Home Performance with ENERGY STAR Projects Prior to any other qualifying improvements, a BPI compliant Test In is conducted by a BPI CerNfied AFC First Approved Auditor /Contractor Blower door- directed air sealing of the home and ducts is performed, in accordance with ENERGY STAR recommended air sealing pracnces Program qualifying measures are installed A Test- Out is conducted Non- energy improvements may be financed provided they account for 50% or less of the total project.

11 Who Can Perform the Work? Only Approved Contractors which have met the standards of the AFC First EnergyLoan program may perform the work. Approved Contractors may also par,cipate in any special state, u,lity or other programs which AFC First administers. BPI Cer,fica,on allows par,cipa,on in Home Performance with ENERGY STAR programs where available. Minimum 3 years in business, history of financial stability and evidence of $50,000 net worth or compensanng factors SaNsfactory company and personal credit histories SaNsfactory Beqer Business ranng SaNsfactory customer and trade references Overall reputanon for a high level of service and workmanship

12 Simple Consumer & Contractor- Friendly Loan Process Customer contacts an AFC First Approved EnergyLoan Contractor to get an es,mate for qualifying improvements. For fastest approval, customer applies online at the applica,on integrated on the contractor s website, at energyloan.net or by phone at (888) We ll have a quick decision on the applica,on, advise the contractor and consumer and answer any ques,ons. We take care of the details! Contractor sends us a copy of their es,mate/proposal and Contractor Submission Sheet, if required, iden,fying final price and qualifying improvements. Customer signs the simple one page loan note we will provide to them (or to the contractor for delivery to the customer). We typically pay the Contractor next business upon receipt of Comple,on Cer,ficate and verbal customer confirma,on that the work has been done to their sa,sfac,on. Customer Gets Es,mate Easy Customer Applica,on Fast Approval Contractor Provides Job Info Customer Signs Note We Pay the Contractor (888) energyloan.net afcfirst.com

13 Contractor - Customized Consumer Applica,on: On- Line, Fax, or Phone

14 May the contractor assist the homeowner to apply? All loans are direct loans to the homeowner but an Approved Contractor may Fax or assist a customer in filling out our on- line applicanon. How long does the ini,al approval take? Typically within the hour during normal business hours. ApplicaNons are accepted 24/7 online, by fax and through extended call center hours. If applicanon volume is extremely high or an applicanon is incomplete, the turn- a- round Nme may be greater. Expedited service for emergencies. What are the credit standards and approval rate? The program has broader approval standards than most home equity, mortgage or tradinonal bank guidelines. Generally, borrowers require a minimum credit score of 680 (extended program to 640), 50% debt rano for most amounts (extended program to 60%) with no bankruptcy for last 7 years. Some addinonal standards may apply. Typically our True Fixed Rate Program appeals to a more energy and credit- savvy borrower, regardless of income level. Our average credit score is around 720 and we review each applicanon individually to maximize approvals. Contractors who market to energy- aware consumers, and who don t self select (they offer a monthly payment opnon to all customers rather than just those they think need financing) generally experience a higher approval percentage, approaching 70%.

15 How long is the credit approval good for? Homeowners credit may have to be rechecked if 60 days have elapsed and the job has not been completed. What is the most common term homeowners choose? Most homeowners choose the seven and ten year terms, although terms of three and five years are also available. Because these are simple interest loans with no pre- payment penalty the customer can choose to pay the loan off at any Nme regardless of term. What do the loan documents consist of? A one page note, a one page CompleNon CerNficate, a one page Patriot Act NoNce, the Original Customer ApplicaNon, and an Auto Pay Form (opnonal). We also require copies of the applicant s license or photo ID which we will obtain directly.

16 How are contractors paid? Most of our Contractors prefer an Electronic (ACH) Payment. Funds are transferred the same day the work has been completed and verified. If preferred, we can write a check and send via US Mail. What does the EnergyLoan program cost the contractor to use? There are no costs to the Contractor for the Standard EnergyLoan program. You will receive 100% of the amount financed. You may, however, choose to use an opnonal Contractor MarkeNng Cost program to reduce the interest rate to the customer or provide a Your First (3 or 6) Payments Are On Us! feature. That fee will be deducted from your funding check or may be paid by a sponsor under a sponsor program. Can the contractor collect deposit money up- front? Absolutely. Many of our Approved Contractors require deposit money to purchase material or to address other cash flow needs. AFC First can finance the ennre job and you can refund the customer deposit upon our payment or just have the customer finance a pornon of the job. It s your and the customer s choice.

17 What if the amount of the job changes? Just fax or us your revised contract and if necessary we ll redo the docs. What is the advantage of offering the EnergyLoan True Fixed Rate program vs. Teaser Programs? While we suggest Contractors offer consumers a variety of payment opnons, customers truly seeking affordable financing for higher end improvements may be put off by the prospect of having to come up with $5,000 to $20,000 in 6 or 12 months to avoid having a low introductory teaser rate revert retroacnvely to 26% or more (a standard rate for many manufacturer and finance company programs) and may be reluctant to make the investment. True Fixed Rate takes the uncertainty out of the customer s budget, with the flexibility to pay off whenever they want to without penalty. What is the advantage offering the EnergyLoan vs. a Home Equity Loan? Home Equity Loans are a good opnon if a homeowner already has a line of credit in place or if Nme is NOT of the essence.. and if the homeowner actually has equity in their home, and if the Lender is actually lending above 75% loan to value. The EnergyLoan from AFC First is quick and easy with no costs to the homeowner and no home equity required.

18 Can the Homeowner pay off their loan early? Yes, there is no pre- payment penalty with our programs. Any amount paid above the regular monthly payment goes directly to principal. Are non- owner co- signers permired? No - applicants must be on the deed to the home What happens if a homeowner stops paying AFC First? There is never any obliganon or recourse to the contractor for a delinquent customer except, of course, in the extremely rare case where the payment default is the result of contractor employee decepnon or related issues. How does the homeowner pay AFC First? Homeowners may use the Auto Pay Form (included with loan docs), mail a personal check, or make a payment on- line. All customers receive a monthly statement from AFC First from which to pay from or to keep for their records.

19 Program Delivery Accept Applica,ons Online via program website Through Custom Integrated App on Contractor s Website Call Center and Toll Free Numbers Other Industry Links and Call Center Direc,on

20 (888) energyloan.net afcfirst.com Peter Krajsa Chairman and CEO ext 2685 John Hayes President and COO ext 2683 Laura Nelson ExecuNve Vice President and CFO ext 2696 Ken Yeager VP - NaNonal Accounts kyeager@afcfirst.com (443) Bill Walsh Business Development Director wwalsh@afcfirst.com ext 2707 Ben Rainford VP of ProducNon brainford@afcfirst.com ext 2732 Pat Stumpp VP - Senior Credit Officer pstumpp@afcfirst.com ext 2691 Tessa Shin Director of Programs tshin@afcfirst.com ext 2692