Challengepoint ® Achieving Your Goals

1. Challengepoint® Achieving Your Goals

2. 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 Research shows that the three drivers of lasting behavior change are...

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

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

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

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

7. 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 Challengepoint Goal Structure

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

9. 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

10. Challengepoint as a Product • Complete end-to-end product: • Program-specific website • Built-in communications plan • Progress reporting for authorizedmanagers Participant Home page Challengepoint flash communication

11. 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

12. 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

13. Challengepoint® Achieving YourGoals