Page 1 Challengepoint ® Challengepoint ® Achieving Your Goals Achieving Your Goals

Page 2 Research shows that the three drivers of lasting behavior change are... Emotional Commitment “Human behavior stems from two sources, knowledge and emotion” - Plato Goal Setting “People who set goals are much more likely to achieve” - Dr. Edwin Locke Focus “My success is that I have focused in on a few things” - Bill Gates

Page 3 What is Challengepoint? A sales channel incentive structure based on –Extensive goal-setting incentive research –Patented GoalQuest ® program results –Pay-for-growth performance design –Proprietary program database & guidelines

Page 4 Challengepoint Structure Participants have two ways to earn –Base program: Earn per sales unit/dollar amount starting at baseline or any other designated point –Challengepoint goal: Select and achieve an incremental goal Base program earnings are not ‘at risk’ Challengepoint goal earnings are ‘at risk’ –Awards are only paid if you reach your goal

Page 5 Base Earnings Structure Define a unit of measure and payout ratio 10 AwardperQs per $ 1,000 in sales 20 AwardperQs per unit sold 50 AwardperQs per 1% percent increase Define an earnings starting point Personal baseline “X” dollars or units Percent of baseline Zero

Page 6 Base Earnings Structure Participants earn AwardperQs at the established ratio once they reach the earnings starting point –If they reach their earnings starting point any AwardperQs they earn in the base program are not “at risk” Base program earnings continue through the end of the program period –Acts as an on-going incentive even after their goal is reached

Page 7 Challengepoint Goal Structure Participants select a personal goal –Rewards escalate rapidly to encourage selecting the highest goal achievable All-or-nothing goal achievement Personal baseline-related goals Audience segmentation Focused behavior –Short program duration –Focused program target Frequent program communications

Page 8 Goal Selection Matrix A participant’s baseline is their personal run rate No Award Baseline Productivity Baseline + 10% 20 AwardperQs Baseline + 20% 60 AwardperQs Baseline + 30% 120 AwardperQs GOAL LEVELS

Page 9 Overall Earnings Opportunity $ 0 INCREASING SALES BASELINE SELF-SELECTED GOAL NO EARNINGS BASE PROGRAM EARNINGS PROGRAM END GOAL ACHIEVEMENT EARNINGS PROGRAM START

Page 10 Rewards Challengepoint employs AwardperQs as the award media –Points do not expire –137,000 awards plus travel and event tickets The on-line awards site is Accessed directly from the Challengepoint website use for browsing use for ordering

Page 11 Challengepoint as a Product Complete end-to-end product: –Program-specific website –Built-in communications plan –Progress reporting for authorized managers Participant Home pageChallengepoint flash communication

Page 12 Program Financials Setup, website hosting, communications and reporting are provided at BI’s expense –Standard website reports Program sponsor pays for awards earned by participants who achieve their goal The Challengepoint database allows us to estimate results during planning and measure them precisely after the program

Page 13 Included and Billable Items Included items: –Program design –Website setup –Website hosting –Award brochures (if used) –Standard communications –Project management Items billed to the sponsor: –AwardperQs earned by participants –Actual postage for mailing the brochures if used –Any custom reports or communications

Page 14 Communications Calendar Month 1Month 2Month 3Month 4  Announcement Kit Mailed to participants  Welcome & Select Your Goal Reminder  2 “Select Your Goal” Qmericals during the Goal Selection Phase (flash)  “Progress to Goal” Reports ed to Participants  Qmercial (flash)  Final Sent Announcing if Goal was Achieved

Page 15 Challengepoint ® Achieving Your Goals