please explain the exp hybrid penilty

[Dirtnap]

It works extremely simply, I don't know why everyone is pumping out paragraphs to explain it.

The "Penalty" is more experience you have to gain to level.

Level 1 Warrior needs 1000 exp to level to 2.

Level 1 Paladin needs 1400 exp to level to 2.

When grouped, the person who needs more total exp to level up, gains a bigger percentage per kill.

This means whoever is the highest level in a group will usually take the most experience. If they have a "penalty" they will take even more.

EDIT: So ultimately when you are grouping, you want to be the highest level, and have have a "penalty" to get the most experience per kill. If you are the lowest level, and have a "bonus" (Warrior Rogue and Halflings) you actually get a tiny amount of experience.