Viridian s Sustainable Compensation Plan Education Guide Effective February 15, 2015

Transcription

1 Viridian s Sustainable Compensation Plan Education Guide Effective February 15, 2015 Viridian s Sustainable Compensation Plan is designed to reward you as you grow and develop your Organization. There are many different ways to earn on a weekly, monthly and promotional basis for your continued success. The Ways to Get Paid reward different types of behavior, in a structure that allows you to earn now for executing behaviors that increase your earnings potential with each passing month. There are three categories of Ways to Get Paid, and each has multiple earning opportunities for you to benefit: Development Pay is pay you earn for personally developing your organization through behaviors like Customer acquisition, and training and mentoring your downteam Associates to help them grow their businesses. There are three Ways to Get Paid on a weekly and/or monthly basis for achieving and training this type of behavior: #1 Fast Start Bonus Fast Start Bonuses reward you for your personal Customer acquisitions in your first eight weeks as an Associate. #2 Mentor Bonus Mentor Bonuses reward you for working with your personally sponsored and downteam Associates to help them earn their Fast Start Bonuses. #3 Rank Advancement Bonus Rank Advancement Bonuses reward you for your personal organizational development as you advance in rank, and for helping your personally sponsored and downteam Associates do the same. #4 Customer Acquisition Bonus The Customer Acquisition Bonus rewards you for your personal Customer acquisition on an ongoing basis, after your Fast Start Bonus period has ended. Residual Pay rewards you for the work you have already done. As you continue to tap into Development Pay through Customer enrollment, training your downteam, and advancing in rank, you can earn Residual Pay each month on Customers accounts in your organization, regardless of their energy consumption or production, as long as Viridian receives payment on the account that month. #5 Group Pay Group Pay is earned in two ways: Level Pay and Personal Group Pay. Level Pay rewards you for the Customers that you and your downteam acquire each month Viridian receives payment on their account. Once you reach a rank where you are maximizing your Level Pay earnings potential, you get an additional reward for your organizational Customers through Personal Group Pay. #6 Generation Pay Generation Pay rewards you on a monthly basis when you achieve a leadership rank in the Viridian Career Path. It is your continued compensation for the organization you have developed. You are rewarded on a monthly basis for your organizational growth and structure, whereby getting paid on much larger groups of Customers than Level Pay and the Personal Group cover. Generation Pay earnings potential increases as you advance through the leadership ranks, taking on a layered effect and rewarding you exponentially for creating new leaders in your downteam. Leadership Pay rewards you for establishing a leadership rank in the Viridian Career Path, leading your network and creating more leaders like yourself in your downteam. You can be rewarded on a monthly and quarterly basis for your continued organizational growth and your contributions to crossteam training and development. As you continue to move up through the leadership ranks, your rewards, while they remain financially driven, become a part of your newly earned lifestyle. #7 The Leadership Pool The Leadership Pool compensates you on a monthly basis for achieving the rank of Partner or above, and can additionally reward you for mentoring Associates in each Line of your organization to do the same. #8 Promotional Pay Throughout the year, you will have many opportunities to earn different promotions, as they are announced. On a monthly basis, you can earn Promotional Pay through the Viridian Car Allowance. This is all part of your new lifestyle, as a Viridian leader. On the following pages, you will be introduced to the Viridian Career Path, and details on how you can earn and maximize each of the Ways to Get Paid of the Sustainable Compensation Plan. 1

2 #1: Fast Start Bonuses (Power, Surge, Fusion, RFP Bonus and Solar) Fast Start Bonuses Fast Start Bonuses (FSBs) can be earned by Single State Plan (SSP) or All-States Plan (ASP) Associates based on Customers submitted within the required timeframe that eventually qualify. There are separate bonuses for electricity and natural gas (collectively Commodity ) Customers. These bonuses are earned once all required Customers qualify. Commodity Customers are considered Qualified when their application to become Viridian Customers have been accepted and approved by their Utility. There are three different types of Fast Start Bonuses you can earn for commodity products. Power Bonuses reward for enrolling the required number of Customers in a specific timeframe Surge Bonus reward for enrolling double the number of Customers required for the Power Bonuses in the same timeframe Fusion Bonus reward for achieving your Surge Bonus in half the time required Power and Surge Bonuses can be earned by an ASP Associate or a SSP Associate, in the amounts outlined below; SSP Associates cannot earn the Fusion Bonus and Residual Fundraising Program (RFP) Associates do not qualify for commodity FSBs, however both can earn Solar FSBs. For all three types of Fast Start Bonuses (Power, Surge and Fusion) there are separate bonuses for electric and natural gas Customers. All three types of Fast Start Bonuses are based on Customers submitted within the required timeframe that eventually qualify. The bonus is considered earned when the last required Customer qualifies. Fast Start Bonuses Electric Bonus Total Customers Weeks Since Enrolled To the Associate (ASP) To the Associate (SSP) Power Bonus $25.00 $12.50 Power Bonus $50.00 $25.00 Power Bonus $ $62.50 Surge Bonus $ $75.00 Fusion Bonus $ n/a Total Potential 16 4 $ $ Fast Start Bonuses Natural Gas Bonus Total Customers Weeks Since Enrolled To the Associate (ASP) To the Associate (SSP) Power Bonus $12.50 $6.25 Power Bonus $25.00 $12.50 Power Bonus $62.50 $31.25 Surge Bonus $75.00 $37.50 Fusion Bonus $ n/a Total Potential 16 4 $ $87.50 The Power Bonus ASP or SSP Associates who enroll two (2) Customers in two (2) weeks, four (4) Customers in four (4) weeks and/or eight (8) Customers in eight (8) weeks can earn Power Bonuses 2, 4 and/or 8 for this accomplishment. The Power Bonuses are paid with weekly commissions the Friday following the week the last required Customer qualifies (the bonus is earned), while Solar FSBs are paid monthly. RFP Associates cannot earn the Power Bonus. The Surge Bonus ASP or SSP Associates who enroll 16 Customers in eight (8) weeks (as opposed to the 8 required for the Power Bonus) can earn the Surge Bonus for this accomplishment. The Surge Bonus is paid with weekly commissions the Friday following the week the last required Customer qualifies (the bonus is earned), while Solar FSBs are paid monthly. RFP Associates cannot earn the Surge Bonus. 2

3 #1: Fast Start Bonuses (Power, Surge, Fusion, RFP Bonus and Solar) The Fusion Bonus ASP Associates who enroll 16 Customers in four weeks (as opposed to the eight weeks given for the Surge Bonus) can earn the Fusion Bonus for their accomplishment. The Fusion Bonus is paid with weekly commissions the same week that the Surge Bonus is paid. SSP and RFP Associates cannot earn the Fusion Bonus. The FSB Period To count toward any part of a Fast Start Bonus (Power, Surge, Fusion and/or Solar) the Customer must be submitted within the required timeframe for that bonus and eventually qualify as defined above. The Fast Start Bonus Period includes the last day; if your Fast Start Bonus Period ends on a Monday, you must submit the last required Customer enrollment to Viridian by 11:59 pm (Eastern Time) on that Monday for it to count toward your Fast Start Bonus. The bonus is considered earned when the last required Customer qualifies, and paid the following Friday. The FSB Period is calculated in weeks, based on the Associate s Join Date; this means that the day of the week an Associate enrolls determines their Fast Start Bonus period. An Associate that enrolls on a Monday will have each Fast Start Bonus Period end on a Monday. Using Monday as an example: Fast Start Bonuses Electric Bonus ASP SSP Total Weeks from Customers Join Date Customer Must be Submitted By Power Bonus 2 $25.00 $ Second Monday after Join Date Power Bonus 4 $50.00 $ Fourth Monday after Join Date Power Bonus 8 $ $ Eighth Monday after Join Date Surge Bonus $ $ Eighth Monday after Join Date Fusion Bonus $ n/a Fourth Monday after Join Date Fast Start Bonuses Natural Gas Bonus ASP SSP Total Weeks from Customers Join Date Customer Must be Submitted By Power Bonus 2 $12.50 $ Second Monday after Join Date Power Bonus 4 $25.00 $ Fourth Monday after Join Date Power Bonus 8 $62.50 $ Eighth Monday after Join Date Surge Bonus $75.00 $ Eighth Monday after Join Date Fusion Bonus $ n/a Fourth Monday after Join Date 3

4 #1: Fast Start Bonuses (Power, Surge, Fusion, RFP Bonus and Solar) For an Associate who enrolled on a Tuesday, their Fast Start Bonus Periods would end on Tuesdays; for an Associate who enrolled on a Wednesday, the Fast Start Bonus Periods would end on Wednesdays, and so on. Fast Start Bonuses can be earned in a timeframe shorter than that required; they cannot be earned for Customers submitted outside the required timeframe. If an Associate misses one or more parts of their Fast Start Bonus, they can earn other parts, based on their Join Date. For example, if an Associate does not have two (2) Customers submitted within their first two (2) weeks, but they do have a total of four (4) Customers submitted within their first four (4) weeks, although they did not earn the Power Bonus 2, they can still earn the Power Bonus 4 when those Customers qualify. FSB Periods to not affect RFP Bonuses. RFP Bonus RFP Associates who submit personal electricity or natural gas Customers will accrue Personal Customer Credits towards their RFP Bonus. Unlike the Standard Fast Start Bonuses, RFP Bonuses do not require submission within a specific time period in order to be earned. There are 11 Customer thresholds that can be met in order to earn the various bonuses: 25, 50, 75, 100, 150, 200, 250, 300, 350, 400, and 500 qualified Customers. RFP Bonuses Bonus Total Customers Electricity RFP Bonus Natural Gas RFP Bonus RFP Bonus 1 25 $250 $125 RFP Bonus 2 50 $250 $125 RFP Bonus 3 75 $250 $125 RFP Bonus $250 $125 RFP Bonus $250 $125 RFP Bonus $250 $125 RFP Bonus $250 $125 RFP Bonus $250 $125 RFP Bonus $250 $125 RFP Bonus $250 $125 RFP Bonus $2500 $1250 4

5 #2: Mentor Bonuses Mentor Bonuses Mentor Bonuses can be earned by an ASP or RFP Associate that is the direct Sponsor or Upteam Associate of a Power Fast Start Bonus earner. Mentor Bonuses can be earned when a downteam Associate earns a Power Bonus based on commodity Customers submitted within the required timeframe that eventually qualify. There are two different types of Mentor Bonuses you can earn: Sponsor Bonuses: Reward for the direct Sponsor of a Fast Start Bonus earner Upteam Bonuses: Reward for the Upteam Sponsor of a Fast Start Bonus earner Sponsor and Upteam Mentor Bonuses can be earned by an ASP or RFP Associate in the amounts outlined below. SSP Associates do not generate Mentor Bonuses for their Sponsor or upteam, and they cannot earn Mentor Bonuses as the Sponsor or Upteam Sponsor of an Associate that earns a Power Bonus. The Surge and Fusion Bonuses do not generate Mentor Bonuses of a higher value. Mentor Bonuses are only generated by Power Bonus earners; however, if an Associate earns the Fusion Bonus, the sponsor would earn their Mentor Bonuses faster. Mentor Bonuses Electric Bonus Sponsor Bonus Upteam Bonus SC+ Upteam Bonus DR+ Power Bonus 2 $25.00 $10.00 $10.00 Power Bonus 4 $50.00 $15.00 $15.00 Power Bonus 8 $ $20.00 $20.00 Total Potential $ $45.00 $45.00 Mentor Bonuses Natural Gas Bonus Sponsor Bonus Upteam Bonus SC+ Upteam Bonus DR+ Power Bonus 2 $12.50 $5.00 $5.00 Power Bonus 4 $25.00 $7.50 $7.50 Power Bonus 8 $62.50 $10.00 $10.00 Total Potential $ $22.50 $22.50 Sponsor Bonuses Sponsor Mentor Bonuses reward the direct Sponsor of an ASP Associate Power Bonus earner for their role in mentoring their personally Sponsored Associate. The Sponsor does not need to be Viridian University (VU) certified, have a minimum rank, or even have any Customers themselves yet. Sponsor Mentor Bonuses can be earned by the direct Sponsor of an ASP Associate that earns their Power Bonus 2, Power Bonus 4 and/or Power Bonus 8. Sponsor Mentor Bonuses are earned when the Power Bonus is earned and paid with weekly commissions the same week as the Power Bonus (the Friday after the last required Customer qualifies). Upteam Bonuses Upteam Mentor Bonuses reward Upteam Associates of an ASP Associate Power Bonus earner for working in depth, and their role in mentoring their downteam Associate. These bonuses are paid to qualified Upteam Associates of an ASP Associate that earns their Power Bonus 2, Power Bonus 4 and/or Power Bonus 8. The direct Sponsor of a Power Bonus earner can qualify to earn the Sponsor Mentor Bonus; the direct Sponsor is not eligible to earn an Upteam Mentor Bonus. Upteam Mentor Bonuses are paid to (up to) two levels of Upteam leaders, based on the Upteam s Rank; as the Upteam Mentor Bonus is based on rank, it is paid with monthly commissions for the month the Power Bonus was paid. Upteam Mentor Bonuses can be earned by: The first Upteam Senior Consultant or above (excluding the Sponsor) The first Upteam Director or above (excluding the Sponsor) The Sponsor of a Power Bonus earner is only eligible to earn the Sponsor Mentor Bonus; the first two ranked Upteam Associates are eligible to earn the Upteam Mentor Bonuses. This means that up to three (3) Associates are being rewarded for their contribution to mentoring a new downteam Associate to earn their Power Bonuses. Upteam Mentor Bonuses can be earned on an unlimited number of your downteam Associates any given month. 5

6 #2: Mentor Bonuses RFP Mentor Bonus RFP Mentor Bonuses reward the direct Sponsor of an RFP Associate for their role in mentoring their personally Sponsored RFP Associate. ASP and RFP Associates are eligible to earn the RFP Mentor Bonuses; SSP Associates do not earn Mentor Bonuses. When the RFP Associate earns RFP Bonuses 1 and 4 with 25 and 100 personal Customers respectively, a matching RFP Mentor Bonus is generated. RFP Mentor Bonuses are not generated for achievement of RFP Bonuses 2, 3, 5, 6, 7, 8, 9, 10, or 11. RFP Bonuses Bonus Total Customers Electricity RFP Natural Gas RFP Mentor Bonus Mentor Bonus RFP Bonus 1 25 $250 $125 RFP Bonus RFP Bonus RFP Bonus $250 $125 RFP Bonus RFP Bonus RFP Bonus RFP Bonus RFP Bonus RFP Bonus RFP Bonus

7 #3: Rank Advancement Bonuses Development Rank Advancement Bonuses Associates can earn Development Rank Advancement Bonuses (RAB) for achieving a Rank of Consultant, Lead Consultant, Senior Consultant or Director for the first time. The bonus is paid in full with monthly commissions for the month the Rank is achieved for the first time. Development Rank Advancement Bonuses Rank Bonus Consultant $100 1 Lead Consultant $100 Senior Consultant $100 Director $250 Total Potential $550 1 To earn the Consultant RAB, you must achieve the Rank of Consultant or above prior to or during the month that your Fast Start Bonus Period ends; earning Fast Start Bonuses early doesn t change this timeframe. Matching Rank Advancement Bonuses: ASP and RFP Associates can earn Matching RABs when their personally sponsored Associates earn a Development RAB. SSP Associates cannot earn Matching RABs, and they do not generate them when they earn Development RABs. In order to earn the Matching RAB, the Sponsor must have the same rank (or above) as their personally Sponsored downteam that earns the bonus. The Consultant, Lead Consultant and Senior Consultant Matching RABs can only be earned by the direct Sponsor; these bonuses do not roll up if the Sponsor is not qualified to earn the Matching RAB. 2 The Director Matching RAB is paid to the first Upteam Director or above; if the Sponsor is not rankqualified, the Matching RAB rolls up to the first rank-qualified Upteam Director or above. Matching RABs are paid in full with monthly commissions the same month as the Development RAB. Matching Rank Advancement Bonuses Development RAB Earned Matching RAB Paid To Matching RAB Rank Requirement Bonus Consultant Direct Sponsor Consultant or above $100 Lead Consultant Direct Sponsor Lead Consultant or above $100 Senior Consultant Direct Sponsor Senior Consultant or above $100 Director Direct Sponsor or First Upteam Director+ Director or above $250 2 Total Potential n/a n/a $550 Leadership Rank Advancement Bonuses: Associates can earn Leadership RABs for achieving a Rank of Lead Director or above for the first time. The Leadership RAB is paid in two halves with monthly commissions: the first half is paid the first month that you achieve the Rank; the second half is paid the second month you achieve the Rank (or above). This does not need to happen in consecutive months. There are no Matching RABs on Leadership RABs. Leadership Rank Advancement Bonuses Rank First Half Second Half Total Leadership RAB Lead Director $250 $250 $500 Senior Director $500 $500 $1,000 Executive Director $1,000 $1,000 $2,000 Partner $2,000 $2,000 $4,000 Platinum Partner $4,000 $4,000 $8,000 Diamond Partner $8,000 $8,000 $16,000 Crown Partner $16,000 $16,000 $32,000 Ambassador $25,000 $25,000 $50,000 Platinum Ambassador $30,000 $30,000 $60,000 Diamond Ambassador $37,500 $37,500 $75,000 Crown Ambassador $50,000 $50,000 $100,000 Total Potential n/a n/a $348,500 7

8 #4: Customer Acquisition Bonus The Commodity Customer Acquisition Bonus The Customer Acquisition Bonus (CAB) is an added revenue stream that you control. The CAB can be earned by SSP and ASP Associates each month after their Fast Start Bonus Period has ended and by RFP Associates each month after they have achieved their 500 Customer bonus. The CAB rewards you for Customers you submit during the CAB period (each calendar month) that eventually qualify. There are separate CABs for electric and natural gas Customers. In order to qualify for the CAB an Associate must have a Rank of Consultant or above for the month they submit the Customers. These bonuses are earned when the last required Customer qualifies and paid with monthly commissions for the month the bonus is earned. Associates can earn the CAB for electricity and/or natural gas each month; each CAB period spans the same timeframe as a monthly commission cycle. The only exception to this rule is CAB Period 1. The CAB can only be earned once an ASP or SSP Associate is outside of their FSB period. Should the FSB period end mid-month, CAB Period 1 could be shorter than one monthly commission cycle. Going forward, each CAB period is a fixed monthly commission cycle. CAB Period 1 There are separate CABs for electric, natural gas and solar Customers; therefore the CAB Period 1 for each product needs to be treated separately. SSP and ASP Associates can begin earning their CAB when their Fast Start Period (for that product) has ended. This can happen in one of two ways: 1. The Associate does not earn the Surge Bonus (sixteen Customers in eight weeks) or Fusion Bonus (16 Customers in four weeks) and the Fast Start Bonus period simply expires eight weeks after the Associate s Join Date. 2. The Associate does earn the Surge Bonus (sixteen Customers in eight weeks) or Fusion Bonus (16 Customers in four weeks) and the Fast Start Bonus period ends because the maximum number of required Customers has been achieved. For an Associate that does not earn the Surge Bonus or Fusion Bonus for a specific commodity, their Fast Start Bonus Period will expire eight weeks after their Join Date, and CAB Period 1 begins. The Associate can earn the CAB for Customers submitted through the end of the last day of that calendar month, once the Customers qualify. For an Associate that does earn the Surge Bonus or Fusion Bonus for a specific commodity, their Fast Start Bonus Period ends when they achieve this, and CAB Period 1 begins. The Associate can earn the CAB for Customers submitted through the end of the last day of that calendar month once the Customer s qualify. In addition, when an Associate earns the Surge Bonus or Fusion Bonus any Customers they submitted during their Fast Start Bonus Period in excess of the sixteen required for the Surge Bonus and Fusion Bonus automatically count toward CAB Period 1 when the Customers qualify. RFP Associates become eligible for the CAB (if they have a Rank of Consultant or above) once they have achieved the 500 Customer bonus for either electricity or natural gas Customers. Once they achieve their 500 Customers, CAB Period 1 begins and they can earn the CAB for Customers submitted through the last day of that calendar month, once the Customer s qualify. Commodity Customer Acquisition Bonus (CAB) Customers Electricity CAB Natural Gas CAB 4-7 Customers submitted $50.00 $ Customers submitted $75.00 $ Customers submitted $ $62.50 Total Potential (Monthly) $ $ The Solar Customer Acquisition Bonus The Solar CAB is an ongoing up-front bonus opportunity for Associates who submit new solar Customer leads who eventually qualify and are approved for installation. The Solar CAB can be earned by ASP, SSP and RFP Associates. There are no minimum rank requirements to earn the Solar CAB and they can be earned based on leads submitted at any time after an Associates Join Date. These bonuses are earned both when each solar Customer Lead Qualifies and when the Lead advances to a Qualified Contract. Solar CABs are paid with monthly commissions the month the bonus is earned. Bonuses for qualified leads are paid as Lead Bonuses. Bonuses for Qualified Contracts are paid as Contract Bonuses. The Solar Customer Acquisition Bonus: Lead Bonuses 8

9 Associates will earn a bonus for each of their submitted leads that eventually qualify. Leads are considered Qualified when the lead has signed and submitted The value of the earned bonus will vary depending on the number of Leads submitted during the calendar month that eventually become Qualified Leads. Solar Customer Acquisition Bonus (CAB): Lead Bonuses Qualified Lead Count Associate (earnings per lead) - $10 $20 $30 The Solar Customer Acquisition Bonus: Lead Mentor Bonuses The direct Sponsor (Mentor), first upteam Senior Consultant or above, Director or above, and Partner or above in an earning Associate s sponsorship line will earn bonuses for each Qualified Lead. Solar Customer Acquisition Bonus (CAB): Lead Mentor Bonuses Upteam Partner or above - - $5 $5 (earnings per lead) Upteam Director or above - $5 $ 5 $5 (earnings per lead) Upteam Senior Consultant or above - $5 $5 $5 (earnings per contract) Direct Sponsor - $5 $10 $15 (earnings per lead) Qualified Lead Count Associate (earnings per lead) - $10 $20 $30 The Solar Customer Acquisition Bonus: Contract Bonuses Associates will earn a bonus for each of their Qualified Leads that eventually are approved for installation by Viridian s Solar Partner. At this stage, the Lead is considered a Qualified Contract. The value of the earned bonus will vary depending on the number of Qualified Leads submitted during the calendar month that eventually become Qualified Contracts. Solar Customer Acquisition Bonus (CAB): Contract Bonuses Qualified Contract Count Associate $100 $250 $350 $500 (earnings per contract) The Solar Customer Acquisition Bonus: Contract Mentor Bonuses The direct Sponsor (Mentor), first upteam Senior Consultant or above, Director or above, and Partner or above in an earning Associate s sponsorship line will earn bonuses for each Qualified Contract. Solar Customer Acquisition Bonus (CAB): Contract Mentor Bonuses Upteam Partner or above - $5 $5 $5 (earnings per contract) Upteam Director or above - $5 $ 5 $5 (earnings per contract) Upteam Senior Consultant or above - $10 $10 $10 (earnings per contract) Sponsor - $15 $25 $25 (earnings per contract) Qualified Contract Count Associate (earnings per contract) $100 $250 $350 $500 9

10 #5: Group Pay Level Pay Level Pay Level Pay this is the first type of residual pay Associates can earn; it is the foundation of continued income on a monthly basis your reward for enrolling Customers that are actively using Viridian s supply, and enrolling Associates under you who do the same. Level Pay can be earned each month you achieve the Rank of Active Associate or above. The number of Customer levels you are paid on, and the amount you are paid for each, can increase as you advance in rank. You can earn Level Pay on up to four levels of Active Customers beginning with your personally enrolled Customers, based on your Rank. Commodity Customers are considered Active when Viridian receives the Customer s first payment for their purchased supply. Solar Customers are Active once their panels have been activated. Level Pay can be earned on Customer accounts that Viridian receives a payment on each month, and is paid with monthly commissions. You can earn residual income through Level Pay on up to four levels of Customers in each Line of your organization, and even if an Associate leaves the business, if their Customer(s) remain with Viridian, they stay in the same place in your organization and can continue to generate residual pay, such as Level Pay. The four levels of Customers you can qualify to earn Level Pay are: Customers that enroll under you directly are your personal Customers, or Level 1. You Customers that enroll under a personally sponsored (Level 1) Associate are your Level 2 Customers. Level 1 Associate Customers that enroll under a Level 2 Associate in your organization are your Level 3 Customers. Level 2 Associate Customers that enroll under a Level 3 Associate in your organization are your Level 4 Customers. Level 3 Associate Level Pay A Volume-Based Plan Level Pay is volume based, which means that you can earn Level Pay for Customer accounts Viridian receives payment on each month, regardless of how much or how little electricity or natural gas used or solar energy produced. There are a few factors that determine how much you are paid on each Customer account for a given month: Commissionable Volume: You are paid based on the Commissionable Volume (CV) of each Customer account that Viridian receives a payment on in a given month. The CV is calculated slightly differently for residential and commercial accounts. Residential Commodity CV: For residential accounts, the CV is determined by multiplying the Customer s usage by the Commissionable Volume Rate (CVR) for that Customer s utility and product that month. The CVRs are set by Viridian for each utility and product at the beginning of each month. Multiplying the CVR by the Customer s usage generates the CV for that account for the given month. Commercial Commodity CV: For commercial accounts, the CV is determined by multiplying the Customer s usage by the mil rate. The mil rate is determined by what level the Customer is in relation to you in your organization. The mil rate for Level 1 Customer payments is $0.003 for electric and $0.013 for natural gas; the mil rate for Level 2, 3 and 4 Customer payments is $0.001 for electric, and $0.007 for natural gas. Multiplying the appropriate mil rate by the Customer s usage generates the CV for that account for the given month. Solar CV: Solar Customers generate a Solar CV with a 20-year residual payout for installed systems. The Solar CV is determined by multiplying the system s estimated monthly production by the Solar CVR. The Solar CVR is set at $.006 for the lifetime of the lifetime of the Customer s contract: Associates then earn Level Pay based on the Commissionable Volume (CV) of the Customer s account; Associates earn a percentage of the CV based on the Customer s level in in their organization and the Associates Rank for that month. 10

11 #5: Group Pay Level Pay Residential Commodity Level Pay: Active residential Customer accounts are paid out based on the Commissionable Volume of that account that month. At the beginning of each month, Viridian publishes the Commissionable Volume Rate (CVR) for each utility company, for electricity and natural gas. The CVR can change on a monthly basis, and is published on the rate reference sheets when rates are released. 3 For each residential account Viridian receives payment on in a given month, the Customer s usage is multiplied by the CVR for that utility and product. This equation gives the Commissionable Volume of the account the total amount that will be paid out on that account for all types of residual pay that month, including Level Pay. Then, based on the Customer s level in your organization and your Rank that month, you earn a percentage of that Commissionable Volume (value of the account that month). Solar Level Pay: Active solar Customer accounts generate a CV with a 20-year residual payout for installed systems. For each installed solar system, the system s estimated monthly production will be multiplied by the published Solar CVR applicable to the Customer. Then, based on the Customer s level in your organization and your Rank that month, you earn a percentage of that Commissionable Volume (value of the account that month) as seen in the Residential Earned Percentage table: Residential Earned Percentage Table Level/Rank AA SA CN LC SC DR+ Personal (1) 12% 15% 20% 25% 25% 25% Level 2 10% 12% 20% 20% 20% Level 3 10% 12% 15% 15% Level 4 15% Commercial Commodity Level Pay: Active Small and Large Commercial ( Commercial ) Commodity Customer accounts are paid out based on the Commissionable Volume (CV) of that account that month, similar to how residential accounts are paid. However, in an effort to be as competitive and consistent as possible with our commercial rates, the way the Commissionable Volume for each account is calculated is slightly different. Instead of setting a Commissionable Volume Rate (CVR) as is done for residential accounts, Commercial accounts are paid based on a standard mil rate that does not change from month to month, like the CVR can. 3 In addition, there are two separate mil rates used to generate Level Pay. There is one mil rate that applies to Level 1 (personal Customer) payments, and one that applies to all other Level payments (Levels 2, 3 and 4). For each commercial account Viridian receives payment on in a given month, the Customer s usage is multiplied by the mil rate. This equation gives the Commissionable Volume of the account; the total amount that will be paid out on that account. As with residential Level Pay, the amount that you earn is based on the Commissionable Volume of the account, the Customer s level in relation to you, and your rank. The Commissionable Volume for Level 1 (personal Customer) payments is calculated by multiplying the mil rate for Level 1 payments ($0.003) by the Customer s usage. As defined in the chart below, all Associates with a Rank of Active Associate or above for any given month earn 100% of the Commissionable Volume for Level 1 payments. The Commissionable Volume for Level 2, 3 and 4 payments is calculated by multiplying the mil rate for Level 2, 3 and 4 payments ($0.001 for electric, $0.007 for natural gas) by the Customer s usage. Then, based on the Customer s level in your organization and your Rank that month, you earn a percentage of that Commissionable Volume as seen in the Commercial Earned Percentage table below. Level/Rank Electric Mill Rate AA SA CN LC SC DR+ Personal (1) $ % 100% 100% 100% 100% 100% Level 2 $ % 12% 20% 20% 20% Level 3 $ % 12% 15% 15% Level 4 $ % Level/Rank Nat. Gas Mil Rate AA SA CN LC SC DR+ Personal (1) $ % 100% 100% 100% 100% 100% Level 2 $ % 12% 20% 20% 20% Level 3 $ % 12% 15% 15% Level 4 $ % Large Commercial mil rates may vary. 11

12 Residual Fundraising Program (RFP) Associates and Level Pay: RFP Associates earn Level Pay for residential and commercial the same way any other Associate does, as outlined above. However, RFP Associates earn a minimum of $2.00 for Level 1 (personal Customer) pay on electricity Customers, and a minimum of $1.00 for Level 1 (personal Customer) pay on natural gas Customers. If the Level 1 payout is calculated and it is less than $2.00 for an electric Level 1 Customer or less than $1.00 for a natural gas Customer, the amount of the Level 1 payout is automatically increased to the minimum, based on the Customer s product. If the amount of the Level 1 payout is more than the minimum, the RFP is paid that higher amount. 3 Forecasted CVR s for residential commodity Customers are estimated monthly and may be updated at month end. #5: Group Pay Personal Group Pay Personal Group Personal Group Pay is the second type of residual pay Associates can qualify to earn. You can earn Personal Group Pay for each Customer that Viridian receives a payment on that falls within your Personal Group. Personal Group Pay is your reward for achieving the Rank of Director or above and it can be earned each month that you achieve the Rank of Director or above. When added to Level Pay, it establishes the foundation for a healthy continued income on a monthly basis. Your Personal Group includes your personal Customers and all Customers down to (but not including) the personal Customers of the first Director or above in each Line of your organization. If you do not have a Director or above in your organization for a specific month, the Personal Group includes your entire organization: Example 1: Example 2: You Director You Director Senior Associate Lead Consultant Lead Director Senior Associate Lead Consultant Consultant Consultant Consultant Lead Consultant Consultant Consultant Lead Consultant Example 1: Director organization with a downteam Director (Please note: Diagram does not necessarily show full rank requirements; it is just an example of organizational structure to show the Personal Group). In the Line beginning with the Senior Associate, the Director can earn Personal Group Pay on all Customers in that Line, as there is no Director or above in that Line. In the Line beginning with the Lead Consultant, the Director can earn Personal Group Pay on all Customers in that Line, as there is no Director or above in that Line. In the Line beginning with the Lead Director, the Director cannot earn any Personal Group Pay; the Lead Director ends the Personal Group in that Line. Example 2: Director organization with no downteam Director (Please note: Diagram does not necessarily show full rank requirements; it is just an example of organizational structure to show the Personal Group). There is no Director or above in any Line in this organization; the Director can earn Personal Group Pay on all Customers in their organization. 12

13 #5: Group Pay Personal Group Pay DR+ 3% Personal Group A Volume-Based Plan Personal Group Pay is volume based, which means you can earn Personal Group Pay on each Customer account in your Personal Group for a given month that Viridian receives a payment on, regardless of their usage. Personal Group Pay may overlap with Level Pay which means it is possible to earn both Level Pay and Personal Group Pay on the same Customer in one month. The Personal Group Pay you earn is a percentage of the Commissionable Volume (CV) of that account that month: Personal Group Pay on residential accounts is calculated as a percentage of the CV for that account (usage x CVR = CV). Personal Group Pay on solar accounts is calculated as a percentage of the CV for the system (estimated monthly production x Solar CVR = Solar CV). Personal Group Pay on commercial accounts is calculated as a percentage of the CV for that account (usage x mil rate = CV). o The mil rate for Personal Group Pay on commercial accounts is $0.001 for electricity and $0.007 for natural gas. Directors and above earn the same percentage of the account s CV for Personal Group Pay, regardless of their rank. The Personal Group is your reward for achieving the highest Development Rank (Director); it s just a taste of the residual income available to you as you rank up and begin to unlock the heart of Organization Pay: Generation Pay. 13

14 #6: Generation Pay Generation Pay Generation Pay is the third type of residual pay an Associate can qualify to earn, and it represents an unlimited earnings potential on the Customers in your organization, depending on your Rank each month. You begin earning Generation Pay as your reward for achieving a leadership rank of Lead Director or above. Generation Pay overlaps with Level Pay and Personal Group Pay as well; it is possible to earn Level, Personal Group and Generation Pay on the same Customers in a given month. There are three tiers of Generation Pay that you can earn, and the number of Generations you qualify to earn within each tier depends on your Rank. Your Generation Pay earnings are determined by your Rank each month, and the Ranks of your downteam Associates, as their ranks create the structure for generations. There is no minimum usage requirement for a Customer; you can earn Generation Pay on all Customer accounts Viridian receives a payment on that fall into a Generation that your Rank qualifies you to be paid on. Generation Pay Structure There are three tiers of Generation Pay, and multiple Generations you can qualify for within each tier: Lead Director Generations (LD Gens): When you achieve the rank of Lead Director, you qualify for pay on increasing Lead Director Generations. As you advance through the Director rank tier to Lead Director, Senior Director and Executive Director, you unlock additional Lead Director Generations that you can earn on, and you earn more on the Generations you had already unlocked. o Based on your rank, you can qualify to earn Generation Pay on Lead Director Generations 0, 1, 2 and 3 Partner Generations (PR Gens): When you advance to the Partner rank, you begin to unlock Partner Generations. Partner Generations can overlap Lead Director Generations. As you advance in rank through the Partner tier, to Platinum Partner, Diamond Partner and then Crown Partner, you unlock additional Partner Generations that you can earn on, which overlap your Lead Director Generations. In addition to this layered payout structure, you can also earn more on the Generations you had already unlocked. o Based on your rank, you can qualify to earn Generation Pay on Partner Generations 0, 1, 2 and 3 -- in addition to the Lead Director Generations listed above. When you reach the rank of Platinum Partner or above, you will unlock LD Gen 4 as well. Ambassador Generations (AM Gens): When you advance to the Ambassador rank, you unlock your final Partner Generation, and you can earn more on the Generations you already unlocked. In addition, as you advance through the Ambassador tier, to Platinum Ambassador, Diamond Ambassador and Crown Ambassador, you unlock Ambassador Generations that you can earn pay on, which overlap your Lead Director and Partner Generations. o Based on your rank, you can qualify to earn Generation Pay on Ambassador Generations 1, 2 and 3 in addition to the Lead Director and Partner Generations listed above, as well as PR Gen 4. On the following pages, you will discover how Generations are structured, how Generation Pay can overlap and how much you can earn through this virtually unlimited income stream. Generation Pay A Volume-Based Plan Generation Pay is volume based, which means you can earn Generation Pay on each Customer account in a Generation you qualify to be paid on, based on your rank, for a given month that Viridian receives a payment on, regardless of their usage. The Generation Pay you earn is a percentage of the Commissionable Volume (CV) of that account that month: Generation Pay on residential accounts is calculated as a percentage of the CV for that account (usage x CVR = CV). Generation Pay on Solar accounts is calculated as a percentage of the CV for that account (Estimated Monthly Production x Solar CVR = Solar CV). Generation Pay on commercial accounts is calculated as a percentage of the CV for that account (usage x mil = CV). You can earn multiple tiers of Generation Pay on the same Customer; the percentage you earn for each Generation the Customer falls into is based on your rank and the specific generation the Customer falls into. 14

15 #6: Generation Pay Generation Pay Lead Director Generations There are three tiers of Generation Pay; the first is your Lead Director Generations (LD Gens). LD Gens are formed when you achieve the rank of Lead Director or above. More LD Gens can be created when your downteam Associates achieve the rank of Lead Director (or above). LD Gens break within each Line of your organization separately. Below is an example of one Line in an organization and how LD Gens are created. LD Gens are created by Associates in your downteam with a Rank of Lead Director or above; they do not need to be personally sponsored by you, and there can (and likely will) be lower ranking Associates that fall into Generations. The number of LD Gens you qualify to be paid on, and what percentage of the account s Commissionable Volume you earn, is based on your Rank. LD SD ED PR PP DP CP AM PA DA CA LD Gen 0 4% 5% 6% 6% 6% 6% 6% 6% 6% 6% 6% LD Gen 1 5% 6% 7% 7% 7% 7% 7% 7% 7% 7% 7% LD Gen 2 7% 8% 9% 9% 9% 9% 9% 9% 9% 9% LD Gen 3 8% 9% 10% 11% 11% 11% 11% 11% 11% LD Gen 4 7% 7% 7% 7% 7% 7% 7% As a Senior Director, you qualify for Lead Director Generations 0, 1 and 2. Begin: LD Gen 0 (5%) As a Senior Director, you begin LD Gen 0 (5% of CV). You Senior Director LD Gen 1 begins with the first LD or above in that Line. As a Senior Director, you qualify for 6% of the account s CV for Customers in your LD Gen 1. End: LD Gen 0 Begin: LD Gen 1 (6%) Partner LD Gen 2 begins with the second LD or above in that Line. As a Senior Director, you qualify for 7% of the account s CV for Customers in your LD Gen 2. End: LD Gen 1 Begin: LD Gen 2 (7%) Lead Director Lead Director Generation 0 LD Gen 0 is created when you achieve the Rank of Lead Director or above. Your LD Gen 0 includes your personal Customers, and all Customers down to (but not including) the personal Customers of the first Lead Director or above in each Line of your organization. As you advance in rank, you can earn a higher percentage of the account s Commissionable Volume for Customers in your LD Generation 0. Lead Director Generation 1 LD Gen 1 is created in a Line of your organization when an Associate in that Line achieves the Rank of Lead Director or above; that Associate then marks the end of LD Gen 0, and the beginning of LD Gen 1. LD Gen 1 includes that LD s personal Customers, and all Customers down to (but not including) the personal Customers of the second Lead Director or above in that Line of your organization. As you advance in rank, you can earn a higher percentage of each account s Commissionable Volume for Customers in your LD Gen 1. Lead Director Generation 2, 3, and 4 LD Gens 2, 3, and 4 are created in each Line of your organization by the second, third and fourth Lead Directors (or above) in that Line, just as LD Gen 1 is created. As you advance in rank, you can earn a higher percentage of each account s CV for Customers in your LD Gens 2, 3, and 4. 15

16 #6: Generation Pay Generation Pay Partner Generations The second tier of Generation Pay is your Partner Generations (PR Gens). PR Gens are formed when you achieve the rank of Partner or above. More PR Gens can be created when your downteam Associates achieve the rank of Partner (or above). PR Gens break within each Line of your organization separately. Below is an example of one Line in an organization and how PR Gens are created. PR Gens are created by Associates in your downteam with a Rank of Partner or above; they do not need to be personally sponsored by you, and there can (and likely will) be lower ranking Associates that fall into generations. The number of PR Gens you qualify to be paid on, and what percentage of the account s Commissionable Volume you earn, is based on your Rank. Partner Generations overlap LD Gens. PR PP DP CP AM PA DA CA PR Gen 0 7% 8% 9% 9% 9% 9% 9% 9% PR Gen 1 9% 10% 10% 10% 10% 10% 10% PR Gen 2 11% 11% 11% 11% 11% 11% PR Gen 3 12% 12% 12% 12% 12% PR Gen 4 9% 9% 9% 9% As a Partner, you qualify for Lead Director Generations 0, 1, 2 and 3 and Partner Generation 0. As a Partner, you begin LD Gen 0 and PR Gen 0; they overlap. Begin: LD Gen 0 (6%) Begin: PR Gen 0 (7%) You Partner PR Gen 1 begins with the first PR or above in that Line. As a Partner, you do not yet qualify for PR Gen 1. However, this Associate still begins LD Gen 1. End: LD Gen 0; PR Gen 0 Begin: LD Gen 1 (7%) Partner LD Gen 2 begins with the second LD or above in that Line. As a Partner, you qualify for 9% of the account s CV for Customers in your LD Gen 2. End: LD Gen 1 Begin: LD Gen 2 (9%) Lead Director If you were to advance in rank to Platinum Partner, you would qualify for pay on PR Gen 1 (9%), which would overlap your LD Gens 1 and 2, as outlined above. The PR Gen Pay would be in addition to the percentages you are earning for the Customers for their placement within the LD Gens. In addition, by ranking up to Platinum Partner, you would also earn an additional percentage on LD Gens, and an additional 2% on your PR Gen 0. Partner Generation 0 PR Gen 0 is created when you achieve the Rank of Partner or above. Your PR Gen 0 includes your personal Customers, and all Customers down to (but not including) the personal Customers of the first Partner or above in each Line of your organization. As you advance in rank, you can earn a higher percentage of the account s Commissionable Volume for Customers in your PR Gen 0. Partner Generation 1 PR Gen 1 is created in a Line of your organization when an Associate in that Line achieves the Rank of Partner or above; that Associate then marks the end of PR Gen 0, and the beginning of PR Gen 1. PR Gen 1 includes that PR s personal Customers, and all Customers down to (but not including) the personal Customers of the second Partner or above in that Line of your organization. As you advance in rank, you can earn a higher percentage of each account s Commissionable Volume for Customers in your PR Gen 1. Partner Generation 2, 3, and 4 PR Gens 2, 3, and 4 are created in each Line of your organization by the second, third and fourth Partners (or above) in that Line, just as PR Gen 1 is created. As you advance in rank, you can earn a higher percentage of each account s CV for Customers in your PR Gens 2, 3 and 4. 16

17 #6: Generation Pay Generation Pay Ambassador Generations The third tier of Generation Pay is your Ambassador Generations (AM Gens). AM Gens are formed when you achieve the rank of Ambassador or above, and an Associate in your downteam does as well. More AM Gens can be created when more of your downteam Associates achieve the rank of Ambassador (or above). AM Gens break within each Line of your organization separately. Below is an example of one Line in an organization and how AM Gens are created. AM Gens are created by Associates in your downteam with a Rank of Ambassador or above; they do not need to be personally sponsored by you, and there can (and likely will) be lower ranking Associates that fall into generations. The number of AM Gens you qualify for pay on, and what percentage of the account s Commissionable Volume you earn, is based on your Rank. AM Gens overlap LD and PR Gens. PA DA CA AM Gen 1 1% 1% 1% AM Gen 2 1% 1% AM Gen 3 1% As a Platinum Ambassador, you qualify for Lead Director Generations 0, 1, 2, 3 and 4; Partner Generation 0, 1, 2, 3 and 4; and Ambassador Generation 1. Begin: LD Gen 0 (6%) Begin: PR Gen 0 (9%) You Platinum Ambassador AM Gen 1 begins with the first AM or above in that Line. In this example, this Associate also begins LD Gen 1 and PR Gen 1; all three Generations overlap. End: LD Gen 0; PR Gen 0 Begin: LD Gen 1 (7%) Begin: PR Gen 1 (10%) Begin: AM Gen 1 (1%) Ambassador AM Gen 1 continues to the next AM, which in this example does not exist. This Associate, as a Senior Director, breaks your LD Gen 1 to begin LD Gen 2, and is still part of your PR Gen 1 and AM Gen 1. End: LD Gen 1 Continue: LD Gen 2 (9%) Continue: PR Gen 1 (10%) Continue: AM Gen 1 (1%) Senior Director There is no AM Gen 0 as there are within the LD and PR Gen tiers. However, just as PR Gens overlap LD Gens, AM Gens can overlap both LD and PR Gens. If you were to advance in rank to Diamond Ambassador, you would unlock and qualify for AM Gen 2, which does not exist in this Line in this example. Ambassador Generation 1 AM Gen 1 is created in a Line of your organization when an Associate in that Line achieves the Rank of Ambassador or above; that Associate then marks the beginning of AM Gen 1. AM Gen 1 includes that AM s personal Customers, and all Customers down to (but not including) the personal Customers of the second Ambassador or above in that Line of your organization. As you advance in rank, you will unlock new AM Gens. Ambassador Generation 2 and 3 AM Gens 2 and 3 are created in each Line of your organization by the second, third and fourth Ambassadors (or above) in that Line, just as AM Gen 1 is created. 17