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					                                                                    SunPower Process Document: Finance
                                                                          Homeowner Financing | Dec.06 | Version 1.0




                                                                                 Homeowner
                                                                                  Financing




 Uncontrolled if printed; always use SunPower Portal for latest version                                 Page 1 of 5


 Confidentiality
 All information contained in this SunPower document is confidential to SunPower Corporation and its Dealers. No
 information contained herein should be distributed to any other party without the express, written, permission of
 SunPower Corporation.

SunPower Corporation | 3939 North First Street | San Jose, CA 95134 | 1.877.SUN.0123 | www.sunpowercorp.com
                                                                                SunPower Process Document: Finance
                                                                                   Homeowner Financing | Dec.06 | Version 1.0


Table of Contents

  Program Overview........................................................................................................... 3
  Available Loan Products............................................................................................... 3
  Other Program Features .............................................................................................. 3
  Procedures ........................................................................................................................... 4
  Do’s and Don’ts ................................................................................................................. 4
  Payment Terms ................................................................................................................. 4




 Uncontrolled if printed; always use SunPower Portal for latest version                                                    Page 2 of 5


 Confidentiality
 All information contained in this SunPower document is confidential to SunPower Corporation and its Dealers. No
 information contained herein should be distributed to any other party without the express, written, permission of
 SunPower Corporation.

SunPower Corporation | 3939 North First Street | San Jose, CA 95134 | 1.877.SUN.0123 | www.sunpowercorp.com
                                                                        SunPower Process Document: Finance
                                                                          Homeowner Financing | Dec.06 | Version 1.0




Program Overview
SunPower developed a home-owner financing solution with New Resource Bank (NRB)
based on Home Equity Loans (HEL). These loans should enable the Dealer’s in-home
salesperson to remove an obstacle from closing the sale.

While the HEL is an NRB product, the sales collateral is co-branded, enabling the
salesperson to sell an end-to-end SunPower solar solution.


Available Loan Products
These are the products that are currently available in the SunPower program:

                         Solar ARM                Solar ARM                Solar Flex            Solar Fixed
                                                   2 Yr No
                                                  Payment*
Rate type                    Fixed                    Fixed               Variable               Fixed
                       for 1st 7 Years           for 1st 7 Years
Loan Type             Home Equity Loan          Home Equity Loan Home Equity Loan Home Equity Loan
Term                 10 Yrs int. only + 15     10 Yrs int. only + 15 10 Yrs int. only + 15 15 Yrs Principal &
                            yr P&I                    yr P&I                yr P&I              Interest
Advantages            Stable cost during        Convenience of no       Lowest initial     Locked in cost for
                          avg. home            cash payment for 2 payment. No early           term of loan
                          ownership                   years             pmt charges
Current                  A: Prime -25                A: Prime           A: Prime -50            A: Prime
Pricing**
                          B: Prime                B: Prime +25             B: Prime -25           B: Prime +25
Est. $/MO              $200 (Yrs 1-10)           $243 (Yrs 3-10)          $194 (Yrs 1-10)             $291
($30K Loan)
                       $287 (Yrs 11+)            $343 (Yrs 11+)           $282 (Yrs 11+)
Prepayment Penalty     Penalty for Repayment    Penalty for Repayment           None            Declining Penalty for
                          in First 3 years         in First 3 years                           Repayment in First 9 years




Other Program Features
Other features of the HEL program are:
   • Commission paid to salesperson for each loan closed. Payment will be approximately
       $50-$100 per loan.
   • Optional (but strongly suggested) Direct Payment from NRB to SunPower, and then
       SunPower to Dealer. This eliminates the potential for the customer to use the funds
       for a different expenditure, and expedites payment to the Dealer.




 Uncontrolled if printed; always use SunPower Portal for latest version                                   Page 3 of 5


 Confidentiality
 All information contained in this SunPower document is confidential to SunPower Corporation and its Dealers. No
 information contained herein should be distributed to any other party without the express, written, permission of
 SunPower Corporation.

SunPower Corporation | 3939 North First Street | San Jose, CA 95134 | 1.877.SUN.0123 | www.sunpowercorp.com
                                                                    SunPower Process Document: Finance
                                                                          Homeowner Financing | Dec.06 | Version 1.0


Procedures
Procedures for Dealers to Sell Home Equity Loans

1. Each salesperson must take the HEL training class.
2. SunPower will mail to the Dealer marketing collateral for the program and loan
   applications.
3. The salesperson will sell the SunPower solar system as usual.
4. The salesperson will distribute the collateral and applications to home-owners who
   express an interest in the program.
5. Salesperson should highlight the section for “Free Balance Transfer or Payment”, which
   is the trigger for the Direct Payment plan.
6. The home-owner will call NRB and/or fax in the loan application to NRB, referencing the
   firm price quote for the system given by the salesperson.
7. NRB will approve or reject the loan application and lock in the interest rate.
8. The Dealer will install the system.
9. If the Direct Payment plan has been selected, then the customer will approve NRB to
   release the funds to SunPower. SunPower will then remit the appropriate payment to the
   Dealer.


Do’s and Don’ts
Things that the Dealer and salespeople should do:
   • Demonstrate that there are four separate financing products that meet almost any
       need.
   • Set the expectation that the loan can be approved in 24 hours
   • Explain that these are home-equity loans that must be second to a first mortgage.
   • Explain that NRB can refinance an existing second mortgage to one of these
       products.
   • Encourage the home-owner to complete the section labeled “Free Balance Transfer
       or Payment” on the loan application
   • Explain that the interest on these products is tax deductible for most home-owners,
       but that the home-owner should consult with their tax advisor.
   • Explain that the Solar Flex will have the lowest monthly payment, but there is an
       option on the Solar ARM for no payments for two years.
   • Explain that NRB is the lender, not SunPower or the Dealer
   • Refer all questions about the products and rates to NRB

Things that the Dealer and salespeople should not do:
   • Quote rates for the products
   • Calculate exact monthly payments for the loans
   • Promise that the home-owner’s application will be approved


Payment Terms
For Direct Payment, New Resource Bank will pay SunPower within 2 bank days of receiving
the approval from the home-owner.


 Uncontrolled if printed; always use SunPower Portal for latest version                                 Page 4 of 5


 Confidentiality
 All information contained in this SunPower document is confidential to SunPower Corporation and its Dealers. No
 information contained herein should be distributed to any other party without the express, written, permission of
 SunPower Corporation.

SunPower Corporation | 3939 North First Street | San Jose, CA 95134 | 1.877.SUN.0123 | www.sunpowercorp.com
                                                                    SunPower Process Document: Finance
                                                                          Homeowner Financing | Dec.06 | Version 1.0


SunPower will pay the Dealer within 3 business days of receiving payment from New
Resource Bank.




 Uncontrolled if printed; always use SunPower Portal for latest version                                 Page 5 of 5


 Confidentiality
 All information contained in this SunPower document is confidential to SunPower Corporation and its Dealers. No
 information contained herein should be distributed to any other party without the express, written, permission of
 SunPower Corporation.

SunPower Corporation | 3939 North First Street | San Jose, CA 95134 | 1.877.SUN.0123 | www.sunpowercorp.com

				
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