RPC PLAN

In order to monitor performance levels for all Residential Sales and Service Consultants in on line positions the following measurements shall be reviewed on a monthly basis:

Revenue/call
Calls/hou
% Availability

Employees are expected to maintain threshold standards of performance for all three categories every month. The measurements will be reviewed with the employee's on a monthly basis and employees who fall below any of the threshold goals will be coached on how to improve their performance. In addition, employees are expected to follow all other instructions on top down selling, how to offer, offering on every call, how to transition, etc. Repeated failures on Supervisory Observations will ultimately result in disciplinary action.

An employee who repeatedly fails to achieve threshold levels of performance on any of the measurements which will be defined as their failing to achieve threshold performance levels for two (2) consecutive months or any two (2) months out of four (4) consecutive months will be given a written warning regarding his or her performance and may be sent to the Peak Performance Bay (PPB) for concentrated training and coaching. The length of time an employee will spend in the PPB (i.e.. 60 or 90 days) will be based on the employee's level of performance. The intent of the PPB is to provide additional training and coaching to an employee so that he or she can be successful in his or her job. However, an employee's failure to meet and maintain the performance standards established by the Company may result in further disciplinary action being taken against the employee.

While in the PPB, an employee will have his or her results reviewed on a weekly basis and will have a formal meeting with his or her coach at every 30 days. An employee who achieves at least the threshold levels in all three categories, will have successfully met the terms and conditions of the PPB and will be returned to his or her work group.

An employee whose performance was less than 90% of the Revenue/call measurement and who does not make sufficient progress in all three categories while in the PPB, may receive additional, disciplinary action as follows:

oEnd of first 30 days - 1 day suspension
oEnd of 60 days - 3 day suspension
oEnd of 90 days - termination

Should an employee who was below 90% before going into the PPB be returned to his or her work group and thereafter slips again below any of the threshold goals, the employee may be disciplined in accordance with the following schedule:
o 1 st month below standard - coaching with a written warning
o 2nd month below standard - suspension (1 to 3 days)
o 3rd month below standard - termination

An employee whose performance was between 90% - 100% of the Revenue/call measurement and who does not meet threshold standards of performance in all three categories by the conclusion of the PPB, may receive additional disciplinary action as follows:

· End of PPB (60 days) - 1 day suspension
· End of 90 days - 3 day suspension
· End of 120 days - 5 day suspension
· End of 150 days- termination

Should an employee who was between 90% - 100% before going into the PPB, be returned to his or her work group and then slips again below any of the threshold goals, he or she may be disciplined in accordance with the following schedule:

1 st month below standard - coaching and a written warning
2nd month below standard - 1 - 3 day suspension
3rd month below standard - 5 day suspension
4th month below standard - termination

Should an employee be returned to his or her work group and maintain threshold standards for 6 consecutive months and thereafter slip below any of the threshold goals again, he or she may be disciplined in accordance with the following schedule:

· 1 sl month below standard - coaching with a warning
· 2nd month below standard - next level of discipline on the above schedules

Should an employee be returned to his or her work group and maintain threshold standards for 12 consecutive months and thereafter slip below any of the threshold goals again, he or she may be disciplined in accordance with the schedule below.

· 1 st month below standard - coaching and a written warning
· 2nd month below standard - 1 - 3 day suspension
· 3rd month below standard - 5 day suspension
· 4th month below standard - termination