Vidian Compensation Plan Transition Overview

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1 QUESTIONS ABOUT THE TRANSITION: Q: WHEN WILL THE NEW PLAN TAKE EFFECT? A: The new compensation plan officially replaces the previous compensation plan beginning with activity as of September 1, From September 1 through December 31, we will be in a generous transition period where you will earn the greater of the new compensation plan or your highest monthly pay in the past 12 months under the previous compensation plan. Following this transition period, beginning January 1, 2016, the previous compensation plan and all transitional elements will cease and you will be paid exclusively on the new compensation plan. Refer to the Viridian Compensation Plan Transition Overview for details of all transitional pay elements. Q: WHY DID VIRIDIAN CHANGE ITS COMPENSATION PLAN? A: Our goal is to offer a compensation plan that will fairly and generously reward customer growth across all our markets, regardless of which product(s) we offer in a market. We believe the new compensation plan will provide the foundation we need to reach our objective of rapid customer growth in the coming years, across all our current and future markets. Q: HOW DID VIRIDIAN DECIDE WHAT TYPE OF COMPENSATION PLAN TO OFFER? Our new compensation plan was designed based on feedback from many of our field leaders, as well as industry experts. We endeavored to identify the best compensation structure for our business given the uniqueness of our company and the types of products we sell. We selected a coded model because we believe it provides us with the greatest chance to achieve our goal of rapid customer growth across all our markets, as the code has an unmatched track record of driving customer growth in service-based industries. Additionally, we saw an opportunity to add unique features to our new compensation plan. We believe these features enhance a traditional coded model and make our new compensation plan one of the most compelling compensation opportunities currently available in the direct selling industry. Q: WHAT IS A CODED COMPENSATION PLAN? A: In a coded compensation plan, each Independent Associate is coded to their upteam leaders based on the rank of their sponsor and their sponsor s upteam at the time of enrollment. This means that your personally sponsored Independent Associates are coded to you based on your rank when they enroll, and each of the members of their team remain in your code based on their sponsor s rank and yours when new team members enroll. As you promote to higher ranks, the members of your organization who subsequently join will be coded to you at each new rank. Your coded rank affects the Leadership Bonus amounts and residual payments you receive as the members of your downteam enroll customers. Q: WHAT TOOLS WILL I HAVE TO BE SUCCESSFUL IN THIS NEW PLAN? A: Your new compensation plan is supported by detailed reporting and dashboards within your personalized VCenter (the revamped Back Office). These reports will give you a clear picture of your organization, empowering you with tools and clarity to focus on your career path and help your teams grow.

2 Q: WILL MY INCOME CHANGE UNDER THIS NEW PLAN? A: The new compensation plan is designed to reward customer growth. We anticipate that most Independent Associates will see changes in their income under the new plan, based on their level of activity. While Independent Associates will certainly see changes (up or down) in their income from our previous compensation plan to the new compensation plan, we have established a generous transition plan to allow Independent Associates time to adjust and build within the new compensation plan. Independent Associates who continue to build their organizations and acquire customers have the greatest opportunity for success on the new compensation plan. Q: WHY ARE THERE SO FEW RANKS UNDER THE NEW COMPENSATION PLAN? A: One of our goals with the new compensation plan was to create simplicity. Simplifying the leadership ranks gives our Independent Associates a clear path for growth and rank advancement. This streamlined career path also makes the Viridian opportunity simpler to explain to prospective Independent Associates and easier for new Independent Associates to learn and remember. Q: HOW WAS MY RANK DETERMINED UNDER THE NEW COMPENSATION PLAN? A: Ranks and organizational structure for existing Independent Associates were programmed using historical data and other variables that best represented the growth, activity and performance of our current organization. Key factors we considered included, but were not limited to, enrollment dates, timing of organizational growth, organization size and current rank. The transition period is designed to provide you a generous compensation transition package, paired with a generous time period, which will allow you time to adjust to the changes in your organization, which for some may be significant. Use the time to focus on maximizing the growth of your new organization and adjust to this new compensation plan. Q: WHAT HAPPENED TO MY OLD RANK AND MY RANK ADVANCEMENT PROGRESS? A: Your rank under the previous compensation plan will remain part of your Viridian identity as a Viridian Founding Associate. The work that you did to build an organization was significant and your achievements will forever be a part of the Viridian story. Your rank, along with other variables, was considered by our new system as it converted your existing organization and rank into your new organization and rank. Your rank advancement progress will now be based on the new compensation plan. Utilize the reports and Performance Dashboard in your new VCenter, as well as our training webinars and documents, to understand the milestones you can achieve to continue advancing in rank maximize your position in the new plan. Q: WHAT IF I DON T THINK MY RANK, ORGANIZATION OR CODED TEAMS WERE ACCURATELY CONVERTED? A: We made our best efforts to convert every Independent Associate s rank and organization in a way that best represented the growth, activity and performance of our current organization. We understand that some Associates may have concerns about their rank, organization or V-Team. We ask you to be patient and to take the time to fully understand this new compensation plan, and to continue to work hard to build your businesses. Maximize the time you have been given during our generous transition plan to adjust and maximize your position within the new plan.

3 QUESTIONS ABOUT THE COMPENSATION PLAN: Q: HOW AM I PAID ON THE NEW PLAN? A: The new plan has three simple ways to get paid: Customer Bonuses, Team Bonuses and Residual Pay. This simple structure allows you to focus on just two things: enrolling customers and inviting others to do the same. Customer and Team Bonuses are based on Revolutions, which are 5 new Customer Points in a 28- day period. Residual Pay is based on usage and pays out based on qualifications. As you increase in rank you are able to earn even more for your Team Bonuses and Residual Pay for the customers that come into your newly ranked team. Q: WHAT IS A CUSTOMER POINT AND HOW DOES IT DIFFER FROM A CUSTOMER CREDIT OR CUSTOMER COUNT ON THE PREVIOUS PLAN? A: Under the new compensation plan, Independent Associates accrue Customer Points (CPs), which count toward Revolution Bonuses as well as toward rank advancement. Previously, your customer count (also called customer credits) was based solely on the number of customers within your organization. The new compensation plan provides a more holistic way to measure your customer organization, allocating CPs for residential and commercial energy customers, solar leads, solar contracts, signing up for a personal website and the new gogreener and gocleaner products. Organizational Customer Points are tallied for each of your coded teams. See the full Compensation Plan document for details on how CPs are allocated as counting toward Revolution Bonuses as well as rank advancement requirements. Q: WILL I STILL GET TWO CUSTOMER CREDITS FOR MY 3DOM CUSTOMERS? A: Different rate plans will not have varying Customer Point values under the new compensation plan. Calculations for 3DOM customers under the previous compensation plan were included in the August 2015 commission run (paid on September 10th), and any applicable rank advancements or increased residual pay were applied to Independent Associate pay for that period. Moving forward, Customer Points for all products will be calculated as per the new plan. Q: WHAT IS A REVOLUTION CLOCK? A: A Revolution Clock is a 28-day period during which an Independent Associate can qualify for Revolution Bonuses. The clock starts for the first time at the precise time of your enrollment and resets every 28 days. For Independent Associates who were active prior to the plan transition, your Revolution Bonus Clock will start on September 12 and restart every 28 days. Q: WHAT IS A REVOLUTION BONUS? A: A Revolution Bonus of $100 will be paid to an Independent Associate every time that Independent Associate accrues 5 new Customer Points within a 28-day period each time the Independent Associate makes a revolution. An Independent Associate can make an unlimited number of revolutions and earn an unlimited number of Revolution Bonuses within every 28-day period. Additionally, the sponsor and upteam coded leaders earn coded bonuses each time a Revolution Bonus is achieved, making this a rewarding opportunity as you build your team.

4 Q: WHAT IS A FAST ACTION REVOLUTION BONUS? A: Within an Independent Associate s first 28 days, that Independent Associate can earn a Fast Action Revolution Bonus of $200 double the Revolution Bonus for the first three revolutions of 5 customer points. So, an Independent Associate who acquires 15 qualified customer points in the first 28 days will be paid $600. Additionally, the sponsor and upteam coded leaders receive higher bonuses for an Independent Associate s first Fast Action Revolution Bonus, making it lucrative to build teams who enroll customers. Q: WILL MENTOR BONUSES REMAIN THE SAME ON THE NEW PLAN? A: The new plan has a number of Team Bonuses, which are paid to the sponsor of an Independent Associate receiving a Revolution Bonus, as well as to the upteam coded Director, Partner and Ambassador. If the sponsor is also the upteam coded Director, Partner or Ambassador, he or she will earn all applicable bonuses for that revolution. Q: WILL I CONTINUE TO RECEIVE RANK ADVANCEMENT BONUSES? A: There are no Rank Advancement Bonuses under the new compensation plan. There is still great incentive to advance in rank, however, as your leadership rank determines the amount of the Leadership Bonuses you receive when Associates within your organization earn their Revolution Bonuses. Q: WHAT IS A V-TEAM? A: A V-Team consists of Independent Associates who are personally sponsored by a new Independent Associate within that Independent Associate s first 28 days and prior to the Independent Associate being promoted to a leadership position. An Independent Associate s V-Team will remain coded to that Independent Associate throughout the Independent Associate s Viridian career, and the Independent Associate will qualify for matching Leadership Bonuses on the V-Team. The V-Team Leadership Bonus match is detailed within the Viridian 2.0 Compensation Plan. Q: DO OTHER CODED COMPENSATION PLANS HAVE A V-TEAM? A: The addition of the V-Team makes Viridian s plan unique because it rewards our Independent Associates for their early efforts. This is not the case with many companies who use a coded compensation plan. The V-Team Bonus allows you to earn income on the Independent Associates who join your organization before you have advanced to a coded leadership rank, so there should be no hesitation in introducing your best prospects as soon as you start your Viridian business. Q: WHAT HAPPENS TO MY RANK AND CODING WHEN SOMEONE IN MY ORGANIZATION LEAVES VIRIDIAN OR IS TERMINATED? A: There will be no impact to your rank or downteam coding when a downteam Independent Associate leaves Viridian or is terminated.

5 Q: HOW WILL RESIDUAL PAY DIFFER UNDER THE NEW PLAN? A: Residual pay is calculated much the same way it was under the old plan, paying on usage of customers, using Commissionable Volume Rates (CVRs) for each product to generate a Commissionable Volume amount (CV) which is distributed based on qualifications. Residual pay continues to be an important component of our compensation plan, but is more straightforward and easier to understand. See the Viridian 2.0 Compensation Plan document for more details residual pay for each product. Q: HOW WILL THE CAR ALLOWANCE CHANGE UNDER THE NEW COMPENSATION PLAN? A: The car program in Viridian s new compensation plan includes achievable goals to become car qualified. Viridian will no longer be providing a tiered car stipend, but will instead provide one car stipend of $500 to all car qualifiers. An Associate who has reached at least the Director rank and who has 600 coded Customer Points will be considered car qualified.

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