Credit Account. Table of Contents. Quick Reference Guide. September For Dealer Use Only. 2 Payment Plans. 3 Payment Charts (examples)

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1 Credit Account Quick Reference Guide Table of Contents Page Topic 2 Payment Plans 3 Payment Charts (examples) 4 Guidelines for Applying for Credit 5 Who To Contact 6 Setting Accurate Accountholder Expectations 7 Processing a Credit Application 8 Settlement of Transaction / Sales Documents 9 Frequently Asked Questions (FAQ) 10 Key Definitions September 2014

2 Payment Plans* Plan* Minimum Purchase Amount Promotional Plan APR (Annual Percentage Rate)* MDF*** Deferred Interest Plans 6 Month Deferred $1,500** Accrued 27.99% APR (Variable) 2.95% 12 Month Deferred $1,500** Accrued 27.99% APR (Variable) 4.95% 18 Month Deferred $1,500** Accrued 27.99% APR (Variable) 7.50% 24 Month Deferred $1,999** Accrued 27.99% APR (Variable) 10.75% 36 Month Deferred $1,999** Accrued 27.99% APR (Variable) 14.49% Waived Interest, Equal Payment Plans 24 Month Waived Interest/Equal Pay $1,999** Waived 10.85% 36 Month Waived Interest/Equal Pay $1,999** Waived 13.30% 48 Month Waived Interest/Equal Pay $1,999** Waived 14.95% 60 Month Waived Interest/Equal Pay $1,999** Waived 16.75% Low APR, Equal Payment Plans 24 Month Low APR/Equal Pay $1,999** Assessed % APR 4.99% 36 Month Low APR/Equal Pay $1,999** Assessed % APR 5.99% 48 Month Low APR/Equal Pay $1,999** Assessed % APR 12.99% 60 Month Low APR/Equal Pay $1,999** Assessed % APR 15.99% Promotional Plan Disclosures Deferred Interest Plans No Interest if paid in full within 6, 12, 18, 24, 36 months. Interest will be charged to your account (at the standard, variable APR) from the purchase date if the purchase balance is not paid in full within the promotional period or if you make a late payment. Minimum monthly payments are required for this plan during the promotional period. Required minimum purchase of $1,500 (6, 12, 18 months) and $1,999 (24 and 36 months.) Waived Interest, Equal Payment Plans No Interest for 24, 36, 48, or 60 months. Interest will be charged to your account from the end of the promotional period at the standard, variable APR of 27.99% on the remaining balance if the purchase balance is not paid in full within 24, 36, 48, or 60 months or if you make a late payment. Minimum monthly payments for this plan during the promotional period will be the greater of: the amount of the purchase divided by the number of months in the promotional period, (rounded to the nearest $1); or $5. Required minimum purchase of $1,999. Low APR, Equal Payment Plans 4.99%, or 5.99% APR if paid in full in 24, 36, 48, or 60 months. If the balance is not paid in full in 24, 36, 48, or 60 months or if you fail to make any payment when due, regular credit terms will apply and interest will be imposed from the end of the promotional period at the standard, variable APR of 27.99%, based on the Prime Rate. Minimum monthly payments for this plan during the promotional period will be the greater of: the amount of the purchase, including the calculated finance charges that will be assessed from the date of purchase through the end of the promotional period, divided by the number of months in the promotional period, (rounded to the nearest $1); or $5. Required minimum purchase of $1,999. *Please refer to Key definitions regarding payment and promotional plan information (page 10) **The customer s billing statement will NOT show the same minimum payment due for the following plans: Deferred Interest, Regular Payment; Low APR, Equal Payment; or the Waive Interest, Equal Payment. Deferred Interest, Regular Payment-The minimum payment will be the greater of: (a) $5 or (b) 3.5% (rounded up to the nearest $1) of the New Balance shown on the statement for that Credit Plan. Low APR Plan, Equal Payment- Minimum monthly payments for this plan during the promotional period will be the greater of: the amount of the purchase, including the calculated finance charges that will be assessed from the date of purchase through the end of the promotional period, divided by the number of months in the promotional period, (rounded up to the nearest $1); or $5. Waived Interest, Equal Payment- Minimum monthly payments for this plan during the promotional period will be the greater of: the amount of the purchase divided by the number of months in the promotional period, (rounded up to the nearest $1); or $5. ***MDF-Merchant Discount Fee-This is the cost of financing the credit account purchase to be paid by the Dealer. 2

3 Payment Charts (Example Only) Deferred Interest Plan Purchase Amount 12 Month Monthly Payment/Total Cost 18 Month Monthly Payment**/Total Cost $5,000 $417 / $5,000 $278 / $5,000 $6,000 $500 / $6,000 $334 / $6,000 $7,000 $584 / $7,000 $389 / $7,000 $8,000 $667/ $8,000 $445 / $8,000 $9,000 $750 / $9,000 $500 / $9,000 $10,000 $834 / $10,000 $556 / $10,000 $11,000 $917 / $11,000 $612 / $11,000 $12,000 $1,000 / $12,000 $667 / $12,000 $13,000 $1,084 / $13,000 $723 / $13,000 $14,000 $1,167 / $14,000 $778 / $14,000 $15,000 $1,250 / $15,000 $834 / $15,000 Waived Interest, Equal Payment Plan Purchase Amount 24 Month Monthly Payment/Total Cost 36 Month Monthly Payment**/Total Cost $5,000 $209 / $5,000 $139 / $5,000 $6,000 $250 / $6,000 $167 / $6,000 $7,000 $292 / $7,000 $195 / $7,000 $8,000 $334 / $8,000 $223 / $8,000 $9,000 $375 / $9,000 $250 / $9,000 $10,000 $417 / $10,000 $278 / $10,000 $11,000 $459 / $11,000 $306 / $11,000 $12,000 $500 / $12,000 $334 / $12,000 $13,000 $542 / $13,000 $362/ $13,000 $14,000 $584 / $14,000 $389 /$14,000 $15,000 $625 / $15,000 $417 / $15,000 Low APR, Equal Payment Plan Purchase Amount 24 Month Monthly Payment/Total Cost 36 Month Monthly Payment**/Total Cost $5,000 $221 / $5,290 $154 / $5,509 $6,000 $265 / $6,349 $185 / $6,610 $7,000 $309 / $7,407 $215 / $7,715 $8,000 $353 / $8,465 $246 / $8,816 $9,000 $397 / $9,523 $277 / $9,917 $10,000 $441 / $10,581 $307 / $11,022 $11,000 $486 / $11,639 $338 / $12,123 $12,000 $530 / $12,697 $369 / $13,224 $13,000 $574 / $13,755 $400 / $14,325 $14,000 $618 / $14,813 $430 / $15,430 $15,000 $662 / $15,871 $461 / $16,531 3

4 Guidelines for Applying for Credit Eligibility Prior to applying the applicant must provide a valid United States photo ID : A US driver s license, US government-issued state/federal/military ID, or US passport that contains a photo of the applicant and has not expired. Student and work IDs are not acceptable. All legal residents of the United States, 18 years of age or older are eligible to apply for an account. Applicants wishing to apply for an account must provide the following items and pieces of information: Name Social Security number Date of birth Physical street address Applicants must have a valid physical street address, or rural route address. Post office boxes may not be used for application processing. Phone number Applicant s Gross Annual Income Legal Essentials / Fair Lending Requirements The Equal Credit Opportunity Act (ECOA) is a United States federal law, enacted in 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. It s required that the applicant be handed the Credit Account Agreement/Brochure prior to applying. Discussing A New Application With An Applicant Dealers or your representatives should never engage in a conversation with an applicant about their likelihood of qualifying for credit. Required Disclosure Before Processing: Each applicant must receive the Credit Account Agreement/Brochure that includes disclosures and terms and conditions before processing the Kohler Generators Credit Account application. 4

5 Accountholder-ONLY Dealer-ONLY Who To Contact The Who To Contact list should be used for Internal Use Only You can share the *Accountholder-ONLY information with the accountholder You should NOT share the **Dealer ONLY information with the accountholder CONTACT INQUIRY REQUEST CONTACT INFORMATION New Accounts Pending Status Call : Dealer - ONLY Authorizations Increase accountholder credit limit Authorized dealer verification Call: Dealer - ONLY CONTACT INQUIRY REQUEST CONTACT INFORMATION Customer Care Center Balance Credit Limit Recent Charges Account Summary Account Changes On-line Services Close Account Billing Promotional Plan Change Phone: TDD/TTY: Accountholder-ONLY Account Center Accountholder on-line account information Balance Credit Limit Recent Charges Account Summary Change address Schedule a payment Authorized Buyer Verification Web: comenity.net/kohlergenerators Accountholder-ONLY 5

6 Setting Accurate Accountholder Expectations Payment Options there are four methods to remit a payment Kohler Generators Credit Account Accountholder - Payment Information CONTACT On-line through Account Center CONTACT INFORMATION Web: comenity.net/kohlergenerators By Mail By Phone *A fee may apply to same-day payments made with a representative. By Overnight Mail Comenity Capital Bank P.O. Box San Antonio, TX Phone: TDD/TTY: Comenity Capital Bank 6550 North Loop 1604 East, Suite 101 San Antonio TX Note: Accountholder payments are not accepted at Dealer locations Billing Accountholder may view their bill on-line through the Kohler Generators Credit Account Center (comenity.net/kohlergenerators) Important Information What about it? Credit Account Agreement Must be handed to the applicant prior to applying for credit. Approved Accounts - Welcome Kit Includes: o Welcome letter o Account number o Web address to Kohler Generators Credit Account Account Center o Approval amount o Credit Account Agreement with disclosures and conditions. Will arrive within 7-10 business days from the date of approval. On-line account information Account Center Accountholder can: o View statement o Change address o Set-up a payment o Check balance o See recent charges 6

7 Processing a Credit Application Y 7

8 Settlement of Transaction / Sales Documents Brochure/Application Timing: Given to customer during initial financing conversation Use: Provides customer with credit application, terms and conditions, and payment plan options Action: Return brochure with credit account agreement to customer once application process is complete Dealer Sales Receipt Timing: Given to customer when agreement for work has been reached. Use: Documents all details of billed charges Action: Print two copies Provide one copy to customer Keep one copy for submission with other sales documents to Settlement Fax Line Notice of Cancellation/Buyers Right to Cancel Timing: Given to customer when agreement for work has been reached and customer signs Dealer Sales Receipt Use: Provides customer with Notice of Cancellation agreement Action: Print three copies and give two to the customer and keep one for yourself The customer will only return a copy if they choose to exercise their right to rescind If customer does not exercise their right to rescind you will submit (fax) a copy with the other sales documents to Settlement Fax Line Certificate of Satisfaction Timing: Provided to customer post completion of all agreed upon work Use: Validates customer is satisfied and agrees work is complete Action: Print two copies Provide one copy to customer to sign and return Submit (fax) a signed copy with other sales documents to Settlement Fax Line Fax Sales Documents to RDI Sales Documents Include: 1) Notice of Cancellation/Buyers Right to Cancel 2) Dealer Sales Receipt 3) Certificate of Satisfaction Fax Number: (855) ***Once sale is processed, funding/settlement should occur after 72 business hours to the bank account designated by Dealer. 8

9 Frequently Asked Questions (FAQ) 1. Does the accountholder need to be present to process a transaction? YES. 2. Can the applicant/accountholder use the credit limit to pay for a previous balance? NO. 3. Can the applicant/accountholder use another third party financing payment in conjunction with the Kohler Generators Credit Account? NO. A customer cannot use multiple credit accounts to pay for services. 4. Can the applicant apply with a co-applicant or co-signer? NO, the Kohler Generators Credit Account currently does not have this capability. We anticipates being able to accommodate co-applicants in the near future. 5. My accountholder wants to change the due date of their statement. Is this possible, and if so, what criteria must they meet? NO. Unfortunately, the due dates may not be changed. You may refer the accountholder to Comenity Capital Bank with questions. 6. The accountholder wants to change their promotional plan. Is this possible, and if so, what restrictions exist and how is this requested? The accountholder can initiate by calling the Customer Care Center ( , TDD/TYY: ). 7. My accountholder needs to change their address or phone number on their account, what should I direct them to do (call, online, etc.)? The Accountholder has 2 options: 1) Use Kohler Generators Credit Account s on-line Account Center (shows billing statement and can change personal data on-line). Or, 2) Call the Customer Care Center ( , TDD/TYY: ) to speak with an associate that can make the changes for them. 8. My accountholder was approved for less than the full purchase amount or their request has changed and the amount exceeds the original approval. Can I ask for a credit limit increase for the accountholder? YES, call the Authorizations line ( ). 9. Can a resident of the United States, who does not have a social security number, apply for an Kohler Generators Credit Account? NO. 10. If a refund results in a credit balance on Kohler Generators Credit Account, how long does it take for Comenity Capital Bank to process a refund? 60 days. Accountholders may contact the bank and request a refund sooner. 11. If the accountholder calls in to request a refund from the credit account, how long will it take to process? Normally this takes 7-10 business days to process. 12. If an applicant is declined, can they reapply? Applicants may reapply after 30 days from the date their application was declined. 13. Who are Comenity Capital Bank and Alliance Data? The Kohler Generators Credit Account is issued by Comenity Capital Bank. Comenity Capital Bank is a member of the Alliance Data Enterprise and finances more than 130 of the country s top brands across a multitude of consumer-based industries. 9

10 Key Definitions *Plan Definitions Revolving Plan - The accountholder may make purchases up to the credit limit on the account. Payments on a revolving credit plan are based on the purchase balance at the end of each billing cycle. Minimum monthly payments are required. Deferred Interest, Minimum Payment Required Plan - No Interest if paid in full within 6, 12, 18, 24, or 36 months. Interest will be charged to your account (at the standard, variable APR) from the purchase date if the purchase balance is not paid in full within the promotional period or if you make a late payment. Minimum monthly payments are required for this plan during the promotional period. Required minimum purchase of $1,500 (6,12,18 months) and $1,999 (24 and 36 months.) Low APR, Equal Payment Plan %, or 5.99% APR if paid in full in 24, 36, 48, or 60 months. If the balance is not paid in full in 24, 36, 48, or 60 months or if you fail to make any payment when due, regular credit terms will apply and interest will be imposed from the end of the promotional period at the standard, variable APR of 27.99%, based on the Prime Rate. Minimum monthly payments for this plan during the promotional period will be the greater of: the amount of the purchase, including the calculated finance charges that will be assessed from the date of purchase through the end of the promotional period, divided by the number of months in the promotional period, (rounded to the nearest $1); or $5. Required minimum purchase of $1,999. Waived Interest, Equal Payment Plan - No Interest for 24, 36, 48, or 60 months. Interest will be charged to your account from the end of the promotional period at the standard variable APR of 27.99% on the remaining balance if the purchase balance is not paid in full within 24,36,48 or 60 months or if you make a late payment. Minimum monthly payments for this plan during the promotional period will be the greater of: the amount of the purchase divided by the number of months in the promotional period, (rounded up to the nearest $1); or $5. Required minimum purchase of $1,999. Financial Definitions Accrued Interest- Interest that has accumulated since the beginning of the purchase, but has not been paid. APR- The annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction. Assessed Interest- Interest is calculated at the time a transaction is processed and completed. Variable APR With variable-rates, the APR (Annual Percentage Rate) can change. The Index used to calculate the variable rate is based on the Prime Rate. 10