For Purposes Of Explaining The Compensation Plan For This Program, We Provide The Following Definitions:

Customer: Someone who has ordered a Free Look Kit or any of the BWA Product Line, but is not a distributor in the MLM Program.

Preferred Customer: Someone who has purchased a Support Kit, but has not yet sponsored to become a distributor. A preferred Customer can sell products and get a 15% discount on their purchases for resale, and can buy products for their own personal use at a discount. Preferred Customers are retail customers who enjoy a discount but do not participate in the opportunity?s compensation plan.

A Distributor: Someone who has purchased a Sales Kit, and sponsored at least one person into the MLM Program. They may sponsor other people into the program according to the 3x 5 expandable matrix explained below and earn override commissions on those people?s efforts as well as on the one (or more) personally sponsored as long as they, themselves, are active.

Active Distributor: In order to remain active a Distributor must sell at least $49 worth of product each month. Achieving at least $49 in sales personally should not be difficult in light of the fact that placing one Free Look kit at $100 in sales can do twice that. A distributor MUST remain active to earn any bonuses in addition to their commissions. An inactive Distributor shall earn NO commissions or bonuses for the month (s) he or she is inactive.

Sponsor: A person who brings a new preferred customer of any rank into the business. If the person is placed directly under them on their first level, the sponsor is also expected to manage them (see the definition of manager below.) Both the sponsor and manager have the responsibility of training, supporting, and working as a team with those they are sponsoring and managing.

Executive : A Distributor who has filled their down line (sponsored) to the second level by getting 12 people in (with at least three of these sponsored personally) will officially be
called an Executive. When a distributor has purchased a Fast Start Pack he or she is considered an Executive and can act in that capacity and can fill another fourth leg right away with their fourth personally sponsored Distributor by designating themselves as their Manager. The only other way to become an Executive is to fill the first two levels of his or her matrix. No matter how many people are sponsored to become distributor, the SOLE area of compensation comes from the retail sales of products. When 12 people are brought in down line of them, or a Distributor buys the Fast Start Pack, they then, officially, become an Executive. Executives must also remain active by personally selling their $49 in product every month. There are generation bonuses available to Executives who have filled a 4X5 matrix.

Manager: There is a definition of ?Manager? that makes ALL Distributors a Manager of sorts. That is your immediate upline. A Manager may or may not be your sponsor. A sponsor may use the Manager title to specifically place a new recruit under a desired downline person or to start a new leg (as the rules allow) by designating themselves as the sponsor and Manager. If no Manager is designated, or the sponsor designates himself or herself as Manager, but does not meet the qualification to start another leg, then the computer will place the new recruit in the next open location on the highest level possible filling left to right. The Manager title should not be confused with the RANK of Executive. The Manager and the sponsor has the responsibility to train, support, and work as the team which they are a sponsor or Manager of. The Executives and the Executive Directors have even more responsibility to Manage the Managers, as well as Distributors, in their downline.

Executive Director : A distributor who has filled at least four legs three levels deep with at least four of these sponsored personally then becomes an Executive Director. Of course to fill one leg three levels deep takes 13 distributors (to fill ONE of the four legs.) There must be at least one Executive in each leg (no matter how deep that goes) for the Executive to become an Executive Director. When all four legs have been filled (13 times 4=52 distributors) then the Executive becomes an Executive Director and can add a fifth leg. The Director MUST also perform $99 in personal sales volume each month. Of course even one Free Look kit placed and kept will fulfill this (or the more than fill the Executive?s) sales quota.

Required Sales Kit: The SOSP (Support and On-Line Support Package) contains the essential materials that any distributor needs to be able to sell for BWA. This includes a Distributors Policy and Procedures Manual, a sample of flyers available for purchase as sales aids, a catalog of products and prices, training DVDs, and a Replicated website with a back office that assists each distributor in managing their business. It is required that Customer who wishes to become a Distributor or a Preferred Customer purchase this kit. We cannot allow anyone to sell our products who does not understand our rules and procedures and has not had basic product training.

Optional Fast Start Pack: The FSP is a sample kit of some of the most popular, smaller
ticket products, designed as a tool to help Distributors experience and sell these items. If they buy this FSP when they come in, the Company believes it will put them on a Fast Track to success by enabling them to grow in rank to become an Executive sooner through making more sales faster. Normally, as soon as a Distributor fills his or her second level then that Distributor can become an Executive and add a fourth leg. We hope the Distributor is interested in getting as much sales help as soon as possible. We also expect Distributors to accept the duties of managing those they sponsor, and we believe this kit will aid them in doing so. The Fast Track Pack is not a required purchase, but we believe it will be an invaluable tool in a Distributor?s effort to find and sell customers, so the Distributor who buys the FSP will automatically be elevated to the Rank of Executive. As an Executive this Distributor will have all the privileges of and be considered to be an Executive (Distributor who has filled the first two levels of his 3X5 matrix.) He or she can add a leg right away to expand his or her matrix to four legs wide.

3 x5 Matrix: In a 3x 5 Matrix, you as a Distributor may sponsor (bring in) other people to become Distributors under you. Your goal should be to at least sponsor three people who will be directly under you in three legs. Each one is your first level. You must help these three people to each sponsor three people directly under them, bringing 3 distributors under each of them and downline of you in your second level. Then help the 3 people to each sponsor 3 people, bringing a third level of 9 distributors (9 x 3) under you. Those 9 distributors may each sponsor 3 distributors under them, bringing a fourth level of 27 distributors under you. And those 27 distributors may each sponsor 3 distributors under them, bringing a fifth level of 81 distributors under you in each leg. As an Executive or Executive Director you should do all you can to help all those downline of you find their three people to sponsor. Of course, when you have gained either of these titles, you can make your matrix wider by being allowed to add a fourth (and fifth) leg. Remember each leg you add will only be three wide until someone downline becomes an Executive to make it four legs wide.

Legs and Levels: In a Matrix each of the 3 distributors directly under you are referred to as legs. They continue to build ?down? in multiples of three (legs) But, when one level of threes is filled it progresses to the next lower level as each three get three. Even though in each case it starts with one at the top of the leg that each get 3 on the first level that becomes 9 more on the second level and 27 on the third level and 81 on the fourth level and 243 on the fifth level down, the entire 3X5 matrix consist of 363 distributors with 121 distributors in each of three legs. So, a leg would be 1,3,9,27,81=121 distributors in that leg. If a fourth leg were added, it would be progressing downward in levels by four legs 3 wide (4, 12, 36, 108, 324=484) in the 4X5 matrix with each of the four legs having 121 distributors in it. If everyone qualified as Executives all the way down it would go by (4,16,256,1024=1364.) An Executive can qualify to progress into Executive Director by filling four of those only three levels down (13X4=52) Then he or she can open a 5th leg and expand this into a 5X5 matrix. But remember, no matter how wide it goes the legs are still always 3 wide until someone becomes an Executive. That makes 5, 15, 45, 135, 405=605 Distributors in a 3X5 completely filled matrix 5 legs (in essence a 5X5) with 121 Distributors in each of the five legs. Of course as Distributor qualify for Rank this could be even more expanded than indicated above. In fact, an Executive Director can, after achieving Executive Director status, at any time add as many legs as he or she wants by directly personally sponsoring the first position in the leg directly under the Executive Director.

An Expandable Matrix: In an expandable Matrix once a distributor has filled their second level (or purchased a Fast Start Pack), he or she can become an Executive and expand by adding a 4th leg, which can continue to build their network down wider. The 4th leg needs to filled to 3 Full levels before becoming an Executive Director and a 5th leg can be added. And from there, as each of the distributors can expand and add a 4th and 5th leg in the same manner, the matrix expands into a uni-level with unlimited width, since Executive Directors can make it as wide as they wish to by adding legs at will (as long as they personally sponsor the Distributor in the first level.) Why is that good? Because it expands a distributor?s area of opportunity.

[NOTE: Although the Matrix starts out as a 3X5 (and it is) each distributor can become an Executive and add a fourth leg after their second level is filled and can even become an Executive Director to add a fifth leg after their third level of four legs is filled. In fact, An Executive Director can add as many legs as he or she wishes to. So, the matrix can continue to expand outward and downward as a uni-level with unlimited width. ]

COMMISSIONS AND BONUSES:

Preferred Customers Earnings : Preferred Customers are actually buying wholesale to sell retail. In essence, they can earn 15% of their direct sales by selling at the suggested retail. They can also get 15% off on their purchase of product for their own personal use.

Distributors Commissions on Products: Distributors get 15% commission on product purchased for their personal use and a 15% commission on their direct sales.

In a 5X5 filled it would be on 605 Distributors. But, since all those downline can earn a Rank of Executive or Executive Director, the number of Distributors under any one Distributor who is an effective supervisor is difficult for anyone to predict. Since an Executive Director can add as many legs as he or she wishes to start with a new Distributor they personally recruit, there really is a lot of potential for this to go as wide as they wish.

Distributors Bonuses on Products Sold:

Matching Bonus: This feature could make this commission plan very exciting. It also greatly encourages management. When you build a down line of distributors, you will get a matching commission of half as much as ALL the commissions earned from the product sales of any Distributor you directly sponsor. If, for example the Distributor you sponsor is paid $1,300 in total for all his or her over ride commissions (based upon the 6%,4%,4%,4%, 6%) then you will get paid another $650 in addition to all your usual commissions. The matching bonuses would be 3%,2%,2%,2%,3% (to earn half as much as the one sponsored who earns twice that amount.) This matching bonus does not include any of the 15% direct sales commissions; generation bonuses; or anyone?s matching bonus commissions. This encourages personal sponsoring (because this matching bonus is ONLY for whoever personally sponsored a Distributor); encourages management (because when the one you sponsor gets the over rides from doing a good job himself or herself in all areas, it profits the one who sponsored him or her); and it helps the sponsor go deeper into the sales operation (because he or she can put that new Distributor where ever the sponsor wants to place them, even much further down in the matrix.) In order to get this matching bonus the sponsor MUST remain active by making personal sales.

Generation Bonus: This can get a little confusing. Please hang in with me while I try to explain this. Of course this only relates to those who make Executive and Executive Director status. Also, Generation Bonuses only happen from the fifth level down. You have to be either an Executive or Executive Director to qualify for generation bonuses. It also pertains to each separate leg you build. So, it could be for four or five legs. You may be getting deeper down bonuses on one leg than on another based upon the type of recruiting going on by the Distributors in that leg. An Executive or Executive Director gets this bonus on all the retail sales on a particular leg until he or she encounters another Executive or Executive Director qualified for the bonus and then it ceases for the first one and goes to the next one in the leg who qualifies from that point onward until another qualified Executive or Executive Director is encountered in that leg. It stops when another Distributor of equal or great rank is encountered in the leg. In the case of an Executive, the 3% stops when the Distributor of equal or greater rank is encountered, In the case of an Executive Director, the 3% stops when he or she encounters another Executive Director and then a 2% bonus is given the first Executive Director until a third Executive Director is encountered and then the generation bonus for the first Executive Director stops altogether at that point. This is one reason why it is so important to become an Executive as soon as possible (even by purchasing the Fast Pack) so you can get started toward becoming an Executive Director as fast as possible. Executive Director trumps Executive. If there are five legs downline of an Executive Director, the odds of encountering someone in each of those legs who has made Executive Director status and getting bumped out of generation bonuses is not likely for a l-o-o-o-on-g ways down! If that did happen, then five Distributors would have helped build one huge network under you, and you would continue forever in each leg to get the generation bonuses down each of the separate legs to that point in each leg. In addition to the five legs, in fact, the Executive Director can start over anytime he or she wishes by just personally sponsoring a Distributor in the top position of another leg. So, it does not even stop at five legs, it is unlimited how wide the Executive Director can build it.

The Generation Bonuses are paid from product sales ONLY. These bonuses are 3% and 2% of all retail sales in the entire downline. Remember, they start at the 6th level down from you in each leg. This can be an incredible amount of money. When a Distributor becomes a full fledged Executive by either getting 12 Distributors recruited under him or her (or purchasing a Fast Start Pack), then a 3% bonus is paid on ALL sales downline from that point on all three legs downline of the Executive. If the Executive opens a fourth leg, then that fourth leg is included in this 3% bonus on retail sales. All the income from these bonuses is added to whatever other income the Executive is entitled to. The Executive can also become an Executive Director by filling four legs three levels deep (recruiting 53 Distributors) with at least four of those personally sponsored by the Executive, and there is an executive in each of the four legs. Then a fifth leg (and, actually, as many additional legs as the Executive Director believes he or she can handle) can be opened. From the time he or she gets 52 Distributors recruited the Executive is then an Executive Director and gets the 3% Executive bonus until another Executive Director is encountered in that leg and then gets a 2% Executive Director?s bonus off the top of all product sales in each leg until another Executive Director is encountered in that leg. Each time the bonus or 3% or 2% will continue until someone in that leg becomes an Executive Director and then the bonus will go no further in the leg for the first Executive Director in that leg. Of course it will continue on down in all the other legs of the Executive Director until the same thing happens in each leg before it will stop (if ever) in those legs as well. One wants to be the first to make Executive in their matrix and then one wants to be the first to make Executive Director in that matrix. It is great to be the second or third one as well, because you can take over the generation bonus from the first guy (or gal) who earned it in your leg of the matrix. An Executive Director should be happy when he or she encounters another executive Director in a leg, because there are all sorts of bonuses in store for the first Executive Director from that point on up and he or she can just go open up another leg with a personally sponsored Distributor and do all over again. The objective is to build and get everyone selling products. If products are not sold, then 3%, or 2% of nothing is nothing!

BWA Compensation Plan
Prepared by
Keith Laggos, Ph.D.

Goals and Objectives

There are two primary goals of BWA.
1. Build a large distributor base that sells and uses BWA?s unique products.
This situation requires that BWA get a lot of Distributors on all levels, and get them motivated to sell, sell, sell!
2. Register the 1.6 million people to witness a ?Free Electricity? demonstration.
This situation results in the need for BWA to acquire massive amounts of ?witnesses? registered to attend. There are methods to accomplish this.
1. Use massive amounts of advertising.
2. Use an army of sales persons.
People will probably respond to a direct personal approach from local BWA distributors more than a national ad campaign. Since this is essential to lure many customers, the goal of BWA must be to attract the army of sales persons needed to accomplish their primary goals. This must be accomplish first in order to accomplish the two primary goals.

Massive advertising will then have additional benefits to the normal expected results.
Name recognition
Market positioning
Increasing the sale of BWA products
Attracting additional distributors
Registering witnesses needed
Gain massive public awareness to force the free electricity program to be accepted

Since an army of BWA will be required to accomplish it?s primary goals, the compensation plan must attract large numbers of distributors. This will require a compensation plan that allows the small distributors to achieve a reasonable level of income and success in a reasonable amount of time. This must be readily perceived possible and easily accomplished by the majority of beginners. Most distributors believe the fallacy that the average distributor only sponsors three distributors on an average. This widely accepted perception must be consider regardless of its? correctness. Beginner distributors must have support systems that they can readily tap into.

The easiest way to gain a large number of distributors is to attract proven industry leaders that have proven track records of creating large sales forces. To accomplish that, the compensation plan must offer a realistic and achievable large income potential. Successful distributors usually look for a company that offers significant marketing support, recognition programs and special leadership bonuses in addition to a large residual income. Large residual incomes are usually best achieved with a mechanism to pay deep into a leaders sales force. Yet, a good compensation plan must also be easy to explain and understand. The more pay methods, levels of commissions paid and special bonuses, the less income per sale can be paid and the more sales required to earn a large income will be needed. The following compensation plan was designed to provide an effective balance to achieve all of BWAs objectives.

BWA?s Compensation Plan

There are two ways a person can start with BWA. Those who decide to become Preferred Customers or Distributors, must buy a Sales and On-line Support Package for $59.95. This includes the company policy manual, forms, and annual fee for your replicated website. The annual renewal fee will be $59.95.

The first way to start with BWA is as a preferred customer. All persons who decide to either buy products at a discount or want to sell them at a 15% commission will buy the SOSP (Sales and On-line Support Package) to become preferred customers. Other than the SOSP, there are no required purchases. Preferred Customers receive a 15% discount on all personal purchases or 15% profit on sales. They do not participate in the compensation plan. They can become a distributor by personally sponsoring one person as a Preferred customer or higher rank. Once they become a distributor they are entitled to receive commissions and bonuses as per the following compensation plan on all of those placed in their downline including those they sponsor, those sponsored by their upline and downline, and those sponsored by the company.

The second way to start with BWA is to start on the fast track program. This requires a purchase of the SOSP and a Fast Start Package (FSP). FSP includes a sample of many of BWA?s most popular products. FSP people start as an Executive with 4 legs. From there, the ONLY way to advance to Executive Director is that they must meet all of the work requirements of becoming an Executive Director. There is not Fast track to the Rank of Executive Director.

Retail Profits

All preferred customers and distributors earn 15% retail profits on all sales including their own personal use. (Note: A preferred customer can earn a commission or discount on their keeping of the Free Look Kit, if they became a preferred customer or distributor prior to signing up for it, but, if they were sold on the Free Look by another preferred customer or Distributor, then the representative who sold them on the Free Look shall get the 15% commission if and when they keep it. )

Fast Start Bonuses

Fast Start Bonuses ( FSB ) are paid on Fast Start Packs (FSP). These packs provide a sample of the most popular products at a 15% discount. The selling distributor earns $100.00 on the consumer FSP?s which cost $298.00. Distributors who purchase a FSP will be promoted to the rank of Executive without having to meet the other criteria first. These FSP must be purchased in the first 30 days of becoming a distributor.

Management Bonuses

The managing sponsor of the distributor who sells a FSP will earn a FSB = 25% of the FSB that the selling distributor earns. For example, if a consumer FSP is sold for $298.00, the selling distributor earns a $100.00 FSB and his or her sponsor earns a $25.00 FSB.

Free Electricity Demonstration Invitations

The ONLY way ANYONE in this program (Distributors or customers) will be registered to witness the technology when it is ready for market will be by purchasing $100 worth of product from a BWA distributor. That could include applying for the Free Look Public Awareness kit (which we consider a product) with a $100 security deposit required, and voluntarily, after reviewing the information in that kit, deciding to forfeit that security deposit and keep the Free Look kit. They could also return the Free look Kit and just buy $100 or more in other products that our BWA Distributors sell. Once a customer has been registered to witness the future free electricity demonstrations, they will not be registered again no matter how much they spend on products. Of course the BWA Distributor could just sell $100 worth of merchandise and not even mention the Free Look Kit, but we recommend using it to orient the potential customer to our unique project.

When they become our customer, we will reward that trust in us with a FREE certificate that will entitle them to attend the public demonstration and, when we have made our point with the technology, they will be in line to receive, for their own needs, an allotment of free electricity greater than the average need for an ALL electric home. The excess electricity generated shall be sold to create an income for the sales network and the company. A Distributor does not have to be registered as a witness for the public demonstrations, to receive commissions and bonuses, but in order for him or her to get an allotment of free electricity for themselves he or she MUST also become a customer of BWA as well as a Distributor. Distributors are NOT required to be registered for free electricity themselves to promote the BWA product line.

Matching Bonuses

The sponsor of the distributor will be paid a matching bonus equal to 50% of themonthly residual income of that distributor (not including any 15% commissions on their direct sales, matching bonus income to them, generation bonuses or free electricity bonus income) as long as he or she remains active. The matching bonuses are in addition to any or all other commissions paid to the upline. In a sense, matching bonuses can extend the number of levels paid.

Generation Bonuses

Generation bonuses are paid to those who are qualified and are to continue to be paid down a leg all levels until an equal or higher qualified distributor is encountered. This allows qualified distributors to earn income very deep into the sales organization and greatly increases the potential income.

Possible Future ?Free Electricity? Pay Plan & Bonuses

In the event that BWA is able to introduce their Permanent Magnet Generator and Hummingbird motor, the following pay plan will be initiated. [note: there is a bonus for getting witnesses to this future event, and then for those witnesses finding 9 more friends to sign up at a one time cost of $2,000 each AFTER the successful demonstrations, and when the demonstration has successfully occurred, then there will be an annual sale of electricity that will provide the commission to the Distributor (and his upline) who sold the original witness on becoming a customer of BWA products. BUT, once the demonstrations happen, there is no longer any opportunity for a Distributor to increase his or her involvement in free electricity in the USA.]

1. Every distributor (and their customers) who have been registered (by becoming a customer with more than $100 in purchases) and who actually attends a successful introduction demonstration of free electricity will receive an annual allotment of free electricity for their home possibly for life. It lasts as long as the excess electricity can still be sold to the utilities every year.

2. Sponsors of each registered and attending customer will receive $1,000.00 per year for as long as the person is on the Free Electricity program. Invited Customers who do attend shall be referred to as witnesses. ALL customers who spend $100 or more on products sold by their Distributor/Sponsor WILL be invited to attend.

3. Sponsors of each registered and attending witness will receive (in addition to all other bonuses or commissions) $1,000.00 per year for each of the 9 additional persons that their witness (with or without their help) introduce to the $2,000 Free Electricity program AFTER the demonstrations. This could equal $10,000 per year for each personally sponsored witness and his or her additional 9 Free Electricity program registered participants.

4. A bonus of $100 a year will be paid to all 5 levels of upline for each distributor, plus, possibly another $100 for each those 9 additional persons for a potential of $1,000 from each sponsored witness that enters the Free Electricity program, who invites nine friends to do so as well after the demonstration. The already established residual income sales organization structured will be used to determine these override commissions. These commissions will be paid in addition to all other commissions and bonuses paid, but shall not be calculated in the 3% and 2% generation bonuses (which only relates to the product line, and not to this bonus project.) It is possible that each downline distributor may represent hundreds or more of these $100 per year (potentially $1,000 per year) bonuses in the BWA expandable Matrix.

4. Active BWA distributors or higher who are registered and do attend the public free electricity demonstrations and place their extra 9 registrations with friends and relatives, will receive a $300.00 commission from the $2,000 cost for each of those 9 registrations that they place which receive their allotment of free electricity.

The Sponsor of the witness/participant receives $1,000 in direct commission but the Sponsor of the Distributor who sponsored the witness gets a commission of $100 per participant (possibly times 10 participants in total.) There is no matching bonus. Thus ends all downline payout commitments for the Free Electricity project assuming our success with the project.