a proven advance - julia burnett · • ®applause magazine • eligible to attend seminar and...

career path and career car programThis is a brief description of the incentive programs in effect as of March 1, 2014. The Company reserves the right to alter, modify or change the commissions, bonuses or any terms of the incentive programs described herein.

Advance a proven program for achieving success

®

career path at-a-glance

5 61 2n as an independent

beauty consultant you could:

• Earn profits based on retail sales • Earnrewardstohelpyoubuildyour

business

n as a star consultant you could:

• Receivespecialrecognition• Earnfabulousprizes

n as a team leader/future independent sales director you could:

• Earnprofitsbasedonretailsales• Earna9%or13%commissionon

wholesaleordersofpersonalteammembers

• Receive$50team-buildingbonuses• EarntheuseofaCareerCarorselect

theCashCompensationoption

n as an independent sales director you could:

• Earnprofitsbasedonretailsales• Earnpersonalteamcommissionsof

4%,9%or13%• Earn9%or13%unitcommission• ReceiveaPersonalTeam-Buildingbonus

of$100ormore• ReceiveaUnitVolumebonusof$500or

more• ReceiveaUnitDevelopmentbonusof

$300or$500• ReceiveaStarConsultantbonusof

$300,$400or$500• ReceiveaWellnessAwardbonusof

$800,$1,300or$2,000• EarntheuseofaCareerCarorselect

CashCompensationoption

7 83 4 n as a senior beauty

consultant you could:• Earnprofitsbasedonretailsales• Earna4%commissiononwholesale

ordersofpersonalteammembers

n as a star team builder you could:

• Earnprofitsbasedonretailsales• Earna4%commissiononwholesale

ordersofpersonalteammembers• Receivea$50redjacketrebate• Receive$50team-buildingbonuses

n as an independent national sales director you could:

•Earnpersonalteamcommissionsof4%,9%or13%

•EarnpersonalunitSalesDirectorcommissionof13%

•EarnNSDcommissionsof10%onpersonalunitwholesale

•Earn9%commissionsonfirst-line;4%onsecond-line;2%onthird-lineoffspringunits

•Earn2%commissionontop10fourth-lineandbeyondunitsaffiliatedandunaffliatedwithNSDoffspring

•Earna$1,000and$5,000bonusfornewfirst-lineSalesDirectors

•Earn$10,000annualbonusfordevelop-mentofnewNSDoffspring

•Earn$200to$800quarterlyLeadership Developmentbonusonunitsin1st–3rd affiliatedandunaffiliatedarea

•EarntheuseofapinkCadillacwithachoiceofoptionsorselecttheCashCompensationoption

•EnrollintheFamilySecurityandGreatFuturesprograms

n in the career car program, you could earn the use of a:

• GrandAchieverCareerCar• PremierClubCareerCar(SalesDirector)• PinkCadillacCareerCar(SalesDirector

andNSD)• OrselecttheCashCompensationoption

inlieuofaCareerCar

beauty consultant career path

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Independent Beauty Consultant*Avenues of Income •Productsalesandreorders

rewards•Mary Kay ® pin•Applause®magazine•EligibletoattendSeminarandCareerConference

•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes

n business guidelines• An Independent Beauty Consultant is considered “active” in the month a minimum $225

wholesale Section 1 product order is received by the Company and in the following two calendar months.

•Activity status, career path status and compensation will be based on Independent Beauty Consultant Agreements and wholesale orders received and accepted by the Company by the close of business each month.

•An Independent Beauty Consultant who orders a minimum of $450 suggested retail in any Section 1 products will receive a 50% discount on her entire Section 1 order and qualify for the Earned Discount Privilege. With the Earned Discount Privilege, she can receive a 50% discount on any subsequent orders she places, regardless of size, through the end of two months after her order month. For example, if a Beauty Consultant places a minimum $500 suggested retail order on March 16, 2014, her Earned Discount Privilege will apply until May 31, 2014. She will be eligible for the Earned Discount Privilege as long as she maintains "active" status.

*AnIndependentBeautyConsultantisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.

. . . . . . . . . . . .

ladder of success program

ABeautyConsultantatanystepofthecareerpathmaybecomeaStarConsultantwhenaminimumof$1,800inwholesaleSection1ordersispostmarkedwithinthecontestquarter.HighercategoriescanbeachievedwithadditionalwholesaleSection1orderspostmarkedduringthequarterandqualifiedteambuilding.Sixhundredcontestcreditsareawardedforeachqualified**newpersonalteammemberaddedduringthequarter.AStarConsultantisrewardedwithaLadderofSuccesspinanda:

➣ Sapphirestarfor$1,800wholesale➣Rubystarfor2,400contestcredits➣Diamondstarfor3,000contestcredits➣Emeraldstarfor3,600contestcredits➣Pearlstarfor4,800contestcredits

StarConsultantconsistencyalsoisrecognized.

. . . . . . . . . . . .new beauty consultant incentives

• New Beauty Consultant Product bonus➣AnewBeautyConsultantcanearnafree†productbonuswhenherinitialwholesale

Section1orderis$600ormore,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.Thevalueoftheproductbonusshereceivesisbasedonthesizeoftheinitialorderandwhentheorderispostmarked.Fordetailsseethe Ready, Set, Sell! Inventory Options for New ConsultantsbrochureorlogontotheMary Kay InTouch®website.

➣AnewBeautyConsultantalsocanearnafree†customizedcolorlook,valuedatmorethan$100suggestedretail,whenherinitialorderis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanywithin15calendardaysofwhentheIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

**AqualifiednewpersonalteammemberisonewhoseIndependentBeautyConsultantAgreementandaminimumof$600inwholesaleSection1ordersarepostmarkedandacceptedbytheCompanywithinthecontestquarter.Contestcreditisanycombinationofatleast$1,800inwholesaleSection1orders,plusqualifiednewpersonalteammembers.

†SalestaxisrequiredonthesuggestedretailvalueofSection1products.


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Senior Beauty ConsultantAvenues of Income•Productsalesandreorders•Team-buildingcommissions

Compensation•4%personalteamcommission

rewards•1ActivePersonalTeamMember:EligibletowearSeniorBeautyConsultantpinenhancer

•2ActivePersonalTeamMembers:Eligibletoorderredjacket•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes

Requirements•1to2activepersonalteammembers•Youmustbeactive.

. . . . . . . . . . . .

personal team commissions

AllactiveSeniorBeautyConsultantsandaboveareeligibletoearna4%,9%or 13%personalteamcommissiononthewholesaleordersplacedbytheirpersonal teammembers.

➣Whenyouhaveonetofouractivepersonalteammembers,youcanearna 4%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.

➣Whenyouhavefiveormoreactivepersonalteammembers,youcanearna 9%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.

➣Youcanincreaseyourcommissionto13%whenyouplaceapersonalminimum$600wholesaleSection1orderinthesamemonththatatleastfivepersonalteammemberseachplaceminimum$225wholesaleSection1orders.(See“SpecialConsiderations”forExecutiveSeniorSalesDirectorsandEliteExecutiveSeniorSalesDirectorsunderIndependentSenior,FutureExecutiveSenior,ExecutiveSeniorandEliteExecutiveSeniorSalesDirectorsection;andsee“PersonalTeamCommissionof4%,9%and13%”forNationalSalesDirectorsunderIndependentNationalSalesDirectorsection.)


n business guidelines•Spouses as Independent Beauty Consultants

➣ Spouses may be Mary Kay Independent Beauty Consultants. However, there may be only one Independent Sales Director per spouse team. They may operate separately, just as if they were not related. However, for Company record purposes, one will be considered a personal team member of the other. In other words, the spouse of a Beauty Consultant must be recruited by that Beauty Consultant. The personal team commission and team-building bonus normally paid on team members will not be paid when a spouse recruits her/his spouse. The spouse will not count in any way toward Independent Sales Director qualification or any Company promotions or awards, including qualification or maintenance of a Career Car under the Grand Achiever Career Car program.


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Star Team BuilderAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus

Compensation•4%personalteamcommission•Team-buildingbonus

rewards•EligibletowearStarTeamBuilderpinenhancer•Eligibletowearredjacket•Receive$50rebateonthepurchaseoftheofficialredjacketavailableonlyfromMary KayInc.(Applicableonlyoninitialredjacketorder)

•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes



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. . . . . . . . . . . .

team-building bonus

A$50team-buildingbonuswillbepaidtoStarTeamBuilders,TeamLeaders,FutureIndependentSalesDirectorsandSalesDirectors-in-Qualificationforeachqualifiedpersonalteammemberbeginningwiththefourthpersonalteammember.Inthemonthyourteammember’sinitialqualifyingorderisreceived,youmustbeactiveandhaveaminimumofthreeotheractivepersonalteammemberstoreceivethebonus.

n business guidelines•For career path status and compensation purposes, a qualified team member is one

whose initial order with the Company is $600 or more in wholesale Section 1 products, and it is received and accepted by the Company in the same or following calendar month that her Independent Beauty Consultant Agreement is received and accepted by the Company.


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Team LeaderAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus

Compensation•9%or13%personalteamcommission•Team-buildingbonus

rewards•EligibletowearTeamLeaderpinenhancer•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes•Eligibletogoon-targetforGrandAchieverstatus(GrandAchieverCareerCarorCashCompensationoption)



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Future Independent Sales Director*Avenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus

Compensation•9%or13%personalteamcommission•Team-buildingbonus

rewards•EligibletowearFutureIndependentSalesDirectorpinenhancer•EligibletowearFutureIndependentSalesDirectorscarf•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes

•EligibletosubmitSalesDirector-in-QualificationCommitmentForm➣Musthave10ormoreactivepersonalteammembers;referto“Priortoentering

theSalesDirector-in-Qualificationprogram”underIndependentSalesDirector-in-Qualificationsectionfordetails.

•EligibletoqualifyforGrandAchieverstatus(GrandAchieverCareerCarorCashCompensationoption)

Requirements•8ormoreactivepersonalteammembers•Youmustbeactive.

*AchievingFutureIndependentSalesDirectorrecognitionstatusdoesnotguaranteeyouwillbecomeanIndependentSalesDirector.InordertobecomeanIndependentSalesDirector,youmustsuccessfullycompletetheIndependentSalesDirectorqualificationrequirementsassetforthbytheCompany.ASalesDirectorisanindependentcontractor,notanemployeeofMary KayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.


Independent Sales Director-in-QualificationAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Team-buildingbonus

AcceptanceintotheSalesDirector-in-QualificationprogramisattheCompany’s solediscretion.

Compensation•4%,9%or13%personalteamcommission•Team-buildingbonus

Prior to Entering the Sales Director-in-Qualification Program InordertosubmitaCommitmentFormtotheCompanystatingtheintenttobeginIndependentSalesDirector-in-Qualification(DIQ)program,anIndependentBeautyConsultantmust:•Beactive.•HaveachievedStarConsultantstatusinthepriorStarConsultantcontestquarterORhaveplacedaminimum$1,800inwholesaleSection1orderspostmarkedduringthecurrentStarConsultantcontestquarter.(ForDIQpurposes,“currentStarConsultantquarter”isasoftheendofthemonthpriortosubmittingCommitmentForm.)

•Have10ormoreactivepersonalteammembersinthemonthpriortofirstmonth ofqualification.➣ Tocounttowardthisrequirement,noneoftheteammemberscanbeanyof

thefollowing: sthespouseoftheDIQ sthespouseofanyBeautyConsultant sacurrentDIQorcurrentSalesDirector sapersonalteammembersubmittingherCommitmentForminthesamemonth

astheDIQ ➣ IfoneofthepersonalteammemberssubmitsaCommitmentForminthe

samemonthastheDIQ,theDIQwillneedtoreplaceherandhaveatleast11activepersonalteammembersinthemonthpriortothefirstmonth ofqualification.

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sales director career path

Additional Requirements Prior to Entering the Sales Director-in-Qualification Program •BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,compliancewiththetermsoftheIndependentBeautyConsultantAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).

•SubmitanonlineCommitmentFormavailableontheMary Kay InTouch® websitefromthe1stthroughthe3rdofeverymonth.BysubmittinganonlineCommitmentForm,theDIQwillknowimmediatelyifshehasbeenacceptedintotheSalesDirector-in-Qualificationprogram.OrsubmitanoriginalCommitmentFormpostmarkedonorbeforethe1stofthemonth.(Example:IfaDIQwishestobegintheSalesDirector-in-QualificationprogramJune1,herCommitmentFormshouldbepostmarkedsometimeinMay,oratthelatest,June1.)

DIQ Qualification Requirements •ADIQmayqualifyasanIndependentSalesDirectorinone,two,threeorfourmonths,basedonwhensheachievesthefollowing:➣ $18,000cumulativeunitwholesaleproduction➣ DIQmusthaveatleast$1,800incumulativepersonalwholesaleproduction➣ 24totalactiveunitmembers

sTheDIQisconsideredoneofthe24activeunitmembers➣ Atleast10ofthe24totalactiveunitmembersmusthaveaminimum$600

cumulativepersonalwholesaleproductionduringthequalificationperiod sTheDIQisnotconsideredoneofthe10unitmembers

➣ $4,000minimumwholesaleunitproductioneachmonth,eveniftheDIQhasalreadyreached$18,000cumulativewholesaleproductionduringthe qualificationperiod

•TheDIQ’sunitmembersmustcontributeatleast$14,000towardthe$18,000wholesaleproductionrequirement.

•ADIQmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe$18,000cumulativeunitwholesaleproductionduringthequalificationperiod.

•ShouldtheDIQ’squalifyingunitnotmeetalloftherequirements,theDIQhasnotqualifiedandmustsubmitanewCommitmentFormtobeginqualificationagain(immediately,ifshechoosesandiseligible).TheDIQ’steammembers’recruitswillremainintheparentunit.

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Additional Qualification•ThequalifyingunitiscomprisedoftheDIQandherpersonalteammembers,regardlessoftheirunitaffiliation(Exception:personalteammemberswhoalreadymaybeSalesDirectorsorinqualificationtobecomeaSalesDirector).Teammembers’recruitswhoseIndependentBeautyConsultantAgreementsareacceptedbytheCompanyonorafterthefirstdayofthemonthinwhichtheDIQbeginsSalesDirectorqualificationwillbemembersofthenewqualifyingunit.Teammembers’recruitswhoseIndependentBeautyConsultantAgreementswereacceptedbytheCompanypriortoherfirstmonthofqualificationremainintheparentunit.

•Spousesdonotcounttowardanyprogramexceptunitproductionandcommission.OnceonespousebecomesaSalesDirector,theotherspouseisnoteligibletobecomeaSalesDirector.TheSalesDirectorcommissionwillbepaidonthespouse’sorders.

•SalesDirectorisanindependentcontractorandnotanemployeeofMaryKayInc.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.

The DIQ understands:•TheimportanceofattendingtheNewIndependentSalesDirectorEducationweekdesignatedforherdebutingclasswhenshecompletestheSalesDirector-in-Qualificationprogram.

•IntheeventanyoneplacesanorderforaStarterKitand/orproductonbehalfofaBeautyConsultant,thefollowingapplies:➣ThepersonplacingtheordermusthavetheBeautyConsultant’sconsentpriorto

placingtheorder;➣ThepersonplacingtheordermustusetheBeautyConsultant’sfunds;and➣ThepersonplacingtheordermustbeinpossessionoftheBeautyConsultant’s

fundspriortoplacingtheorder.•TakingapostdatedcheckandplacinganorderforaBeautyConsultantwillnotcount.•ABeautyConsultantsellinganyone’sinventoryotherthanherown,thenplacinganorder,willnotcount.

•TheDIQcannotsellherinventorytoaBeautyConsultantandtakeher/hismoneytoplaceanordertoreplacetheDIQ’sinventory.

•IftheDIQuseshercreditcardtopayforaBeautyConsultant’sorder,theDIQmusthavealreadyreceivedthecashfromtheBeautyConsultantbeforetheorderismailed,phonedin,placedonlineordeliveredtothebranch.

•TheDIQcannotplaceanorderforaBeautyConsultantwithher/hispromisetopaytheDIQback.

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Special Considerations•AnIndependentBeautyConsultantwhoreturnsmerchandisetotheCompanyforrepurchaseisnoteligibletorejoinMaryKayasanIndependentBeautyConsultant.

•Formoreinformation,logontotheMary Kay InTouch®websiteandselect“DIQprogram”underResources.


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Independent Sales Director*Avenues of Income•Productsalesandreorders•Team-buildingcommissions•Leadership

Compensation•4%,9%or13%personalteamcommission

• Sales Director Personal Team-Building Bonus

➣ ASalesDirectorisentitledtoa$100SalesDirectorPersonalTeam-BuildingbonusforeachqualifiednewpersonalteammemberaddedtoherSalesUnit.AqualifiednewpersonalteammemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.TheSalesDirectorPersonalTeam-Buildingbonusisearnedinthemonthinwhichthequalifiedteammember’sinitial$600wholesaleSection1orderisreceivedandacceptedbytheCompany.

➣ TheSalesDirectorPersonalTeam-BuildingbonuswillbepaidonthebasisofwholesaleordersandIndependentBeautyConsultantAgreementsreceivedandacceptedbytheCompanybythecloseofbusinesseachmonth.

• Sales Director Unit Volume Commission Schedule

monthly wholesale production commission

$4,500ormore 13%$0to$4,499 9%


*ASalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.

• Sales Director Unit Volume Bonus

➣ ASalesDirectorisentitledtoaSalesDirectorUnitVolumebonusof10percent(10%)ofthemonthlyWholesalePurchaseVolumeofSalesDirector’sSalesUnit,calculatedbasedonthestartingpointoftheapplicable$1,000tier,beginningatthe$5,000tier.Forexample:

monthly unit wholesale purchase volume bonus

$5,000to$5,999.99 $500$6,000to$6,999.99 $600$7,000to$7,999.99 $700$8,000to$8,999.99 $800$9,000to$9,999.99 $900$10,000to$10,999.99 $1,000$11,000to$11,999.99 $1,100$12,000to$12,999.99 $1,200$13,000to$13,999.99 $1,300$14,000to$14,999.99 $1,400$15,000to$15,999.99 $1,500$16,000to$16,999.99 $1,600$17,000to$17,999.99 $1,700$18,000to$18,999.99 $1,800$19,000to$19,999.99 $1,900$20,000to$20,999.99 $2,000$21,000to$21,999.99 $2,100$22,000to$22,999.99 $2,200$23,000to$23,999.99 $2,300$24,000to$24,999.99 $2,400$25,000to$25,999.99 $2,500Foreach$1,000increaseinmonthlyUnitWholesalePurchaseVolume,thebonusincreasesby$100.

➣Pleasenote,thisbonusscheduleistheoreticallyinfinitebeyondtheinitial$5,000to$5,999.99tier.Thatis,althoughthe$50,000to$50,999.99tierisnotreflectedintheexample,youwouldstillreceivea$5,000UnitVolumebonusifyourmonthlyUnitWholesalePurchaseVolumefellbetween$50,000and$50,999.99.

• Sales Director Unit Development Bonus

➣ ASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentbonusof$300 foreachmonththreeorfourqualified**newunitmembersareaddedtoherSalesUnitOR

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**AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

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➣ ASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentbonusof$500foreachmonthfiveormorequalified*newunitmembersareaddedtoherSalesUnit.

➣TheSalesDirectorUnitDevelopmentbonusisearnedinthemonthinwhichtheappropriatenumberofnewqualifiedunitmembers’initialminimum$600wholesaleSection1ordersarereceivedandacceptedbytheCompany.

• Star Consultant Bonus ➣ ASalesDirectorisentitledtoaStarConsultantbonusbasedonthenumberofStar

Consultants**inherSalesUnitinacontestquarter:

number of star consultants** bonus

5to9 $30010to14 $40015+ $500

➣ InthecaseofanOffspringUnit,StarConsultantsintheOffspringUnitwillcountforboththeSeniorSalesDirectorandthenewSalesDirectorduringtheStarConsultantcontestquarterthatthedebuttakesplace.

Cadillac Bonus ➣ASalesDirectorisentitledtoacontestbonusof$1,000whensheachieves

Cadillacqualificationorrequalification.Unit Circle Bonus

➣ASalesDirectorisentitledtoacontestbonusof$1,000whensheachievesahigherCircleofAchievementorCircleofExcellencethanthepreviousyear(payablewithJulycommissionsreceivedinAugust).Forexample,ifyour2014unitcirclelevelishigherthanyour2013unitcirclelevel,you’llearnthebonus.

New Independent Sales Director Program Bonus ➣AnewSalesDirectorisentitledtoa$1,000NewSalesDirectorprogrambonus

whensheachieveseachofthefollowingNewSalesDirectorprogramchallenges: •OntheMove

•Fabulous50sClub •HonorsSocietyIndependent Senior Sales Director Bonus

➣ASeniorSalesDirectorisentitledtoacontestbonusof$500whenhernewoffspringSalesDirectorachievesanyoneormoreofthefollowing: •OntheMove

•Fabulous50sClub •HonorsSociety ➣ TheSeniorSalesDirectormusthaveaminimumunitsizeof50atthetimeher offspringSalesDirectorqualifiesforeachchallengetoreceivethebonus.(Ifa SeniorSalesDirectordebutsoneormoreadditionaloffspringSalesDirectors onetothreemonthspriortowhenheroffspringSalesDirectorreachesoneof theseachievements,herunitmusthaveatleast30unitmembersatthetime theoffspringSalesDirectorqualifiestoreceivethebonus.)


* AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

**A“StarConsultant”isonewhoplaceswiththeCompanyaminimumof$1,800inwholesaleSection1orderspostmarkedduringtheapplicableStarConsultantContestQuarter.“StarConsultantContestQuarter”is1)Dec.16–March15; 2)March16–June15;3)June16–Sept.15;and4)Sept.16–Dec.15. 19

Wellness Award bonus program •Aspecialcashawarddesignedtohelpoffsetexpensesassociatedwiththeneeds oractivitiesthatcontributetophysicalwellnessalthoughitcanbeusedinanyway youchoose.➣ QualificationfortheWellnessAwardbonusisbasedonthepreviouscalendaryear’s

totalannualnetadjustedSection1unitwholesaleproduction.OnecheckwillbepaidinJanuaryofeachyear.SalesDirectorsmustqualifyeachyearforthisaward.

sales director’s total annual net adjusted wellness award unit wholesale production bonus

$60,000to$124,999 $800$125,000to$186,999 $1,300$187,000andabove $2,000

Note: Mary Kay Inc. does not provide health insurance coverage for independent sales force members. The Company recognizes, however, that rising costs associated with health care and other wellness activities are a concern for all. While the bonus can be used to offset costs associated with maintaining physical wellness, it is a cash award, payable in January of the year following the qualification year, for use at Sales Director’s discretion. In order to receive the bonus, a Sales Director must be in good standing with the Company on Dec. 31 of the qualification year.

rewards•EligibletowearSalesDirectorsuit•Directors Memo

•EligibletoorderSalesDirectorUnitSupportPackage•EligibletowearSalesDirectorpinandenhancer•EligibletoearntheuseofaSalesDirectorCareerCarorCashCompensationoption•EligibletoqualifyforquarterlyStarSalesDirectorrecognitionandyearlong consistencyprizes

•EligibleforWellnessAwardbonusprogram•EligibleforDisabilityAwardprogram•EligibletoattendLeadershipConference•EligibletoqualifyforTopSalesDirectorTrip•Opportunitytopersonallyrecruitindesignatedinternationalmarkets


n business guidelines• Sales Director commissions and Sales Director bonuses are based on wholesale orders

and Independent Beauty Consultant Agreements received and accepted by the Company by the close of business each month.

• It is expected that a Sales Director maintain minimum unit production of $4,500 wholesale per month.

. . . . . . . . . . . .

independent sales director

• Sales Director Disability Award Program➣Undercertaincircumstances,theCompanyprovidesaone-yearshort-term

disabilityawardfortotallyandpermanentlydisabledSalesDirectorsbasedontheSalesDirector’saveragemonthlytax-reportablecommissionsforthe12monthsprecedingthedateoftotalandpermanentdisability.AspartofeligibilityfortheDisabilityAwardprogram,theSalesDirectormustterminateherIndependentSalesDirectorandIndependentBeautyConsultantAgreements.

Note: For additional program details and information regarding eligibility requirements, please contact Risk Management at 972-687-5744.

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Independent Senior, Future Executive Senior, Executive Senior and Elite Executive Senior Sales DirectorAvenues of Income•Productsalesandreorders•Team-buildingcommissions•Leadership

Compensation

• Commission Schedule

personal unit monthly number of offspringwholesale production offspring units commission

Tier1$4,500to$11,999 Onetothree 4.0% Fourtosix 4.5% Sevenormore 5.0%Tier2$12,000ormore Onetothree 5.0% Fourtosix 5.5% Sevenormore 6.0%

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Qualification• Senior Sales Director: Youmusthaveonetotwoactivefirst-lineoffspringSalesDirectors.

•Future Executive Senior Sales Director: Youmusthavethreetofouractivefirst-lineoffspringSalesDirectors.

•Executive Senior Sales Director: Youmusthavefivetosevenactivefirst-lineoffspringSalesDirectors.

•Elite Executive Senior Sales Director: Youmusthaveatleasteightactivefirst-lineoffspringSalesDirectors.

Special Considerations•GlobalLeadershipDevelopmentprogramoffspringsalesunitsareincludedforpurposesofcalculatingthenumberofoffspringunits.

•ASeniorSalesDirector,FutureExecutiveSeniorSalesDirector,ExecutiveSeniorSalesDirectororanEliteExecutiveSeniorSalesDirectorshallbepaidattheTier2offspringcommissionratesforthreemonthsafterthedebutofanewU.S.offspringsalesunit.Thereafter,theSenior,FutureExecutiveSenior,ExecutiveSeniororEliteExecutiveSeniorSalesDirector’sU.S.personalsalesunit’smonthlywholesaleproductiondeterminesthetieratwhichoffspringsalesunitcommissionisearned.

•Forthe13%personalteamcommission,anExecutiveSeniororEliteExecutiveSeniorSalesDirectormaysubstituteonenewqualifiedpersonalteammemberforherpersonal$600wholesaleSection1production.(Inthiscase,atotalofsixorderingpersonalteammembers,oneofwhomisnewwith$600orgreaterwholesaleSection1production,isrequiredtoearnthe13%commission.)

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Independent National Sales Director*QualificationCandidatesforthepositionofIndependentNationalSalesDirector(NSD)must:•Haveapersonalunitwithatleast24unitmembers.•Haveatotalof20offspringIndependentSalesDirectorshavingoneofthefollowingconfigurations:

➣(12/3/8)12first-lineoffspringSalesDirectors,threeofwhomareSeniorSalesDirectorsandatotalofeightsecond-lineoffspringSalesDirectors;or

➣(11/3/9)11first-lineoffspringSalesDirectors,threeofwhomareSeniorSalesDirectorsandatotalofninesecond-lineoffspringSalesDirectors;or

➣(10/3/10)10first-lineoffspringSalesDirectors,threeofwhomareSeniorSalesDirectorsandatotalof10second-lineoffspringSalesDirectors.

➣Eachofthe20qualifyingunits(12/8,11/9or10/10)musthaveatleast24unitmembers(or,inthecaseofinternationaloffspringunits,theminimumunitmembersbasedontheirhomecountryrequirements).

➣Ofthe20qualifyingunits,atleastsevenmustbePremierCluborCadillacqualifiersandatleastfivemustliveintheU.S.

➣ThepersonalunitofthecandidateforthepositionofNSDmustbeaCadillacCareerCarqualifier.

Special Considerations•AnIndependentEliteExecutiveSeniorSalesDirectorisencouragedtopersonallycommunicatewiththeSalesDevelopmentDirectorassociatedwithherSeminarareaherdesiretodebutasaIndependentNationalSalesDirectorfourtosixmonthspriortoherdesiredNSDdebutdate.ShealsomayfindithelpfultosharehergoalwithherNationalSalesDirectorwhocanprovidevaluablesupportandinsightonthebestwaytoensureasuccessfuldebut.

•AnewIndependentNationalSalesDirectormustachieveormaintainoneofthefollowingMinimumAreaSizesinordertoretainherNSDstatus:

➣Achievethe$125,000NSDcommissionleveloraboveinthepriorSeminaryear,or ➣Maintainatleasteightfirst-lineIndependentSalesDirectorsinherArea,or ➣Maintainatleast20offspringSalesDirectorsinherfirst–thirdlines,affiliated**

andunaffiliated.

national sales director career path

**AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.

*AnIndependentNationalSalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.

•AnewIndependentNationalSalesDirectorisnotsubjecttotheseMinimumAreaSizesrequirementsforthefirst12monthsafterherdebut.Afterthis12monthgrowthperiod,ifanNSDfallsbelowalloftheMinimumArearequirements,theNSDwillhave12monthstore-establishoneofthethreeMinimumAreaSizerequirements.The12monthrebuildingperiodwillstartaccruingthefirstmonththattheNSDfailstosatisfyatleastoneofthethreeMinimumArearequirements.

Additional QualificationsInordertodebutasanNSD:•YoumustbeeligibletoparticipateintheFamilySecurityprogram.TheFamilySecurityprogramprovidesvaluableretirement,disabilityandsurvivors’benefitstoeligibleparticipatingNSDsandtheirfamilies.

➣YoumustdebutasanNSDbeforeyour60thbirthdaytoparticipateinGroupIIIoftheFamilySecurityprogram.

➣YoumustdebutasanNSDbeforeyour65thbirthdaytoparticipateinGroupVoftheFamilySecurityprogram.

Note: This information is intended to provide a nontechnical summary of the Family Security program afforded to participating Independent National Sales Directors. The actual terms and conditions of the Family Security program are contained in the plan document “Mary Kay Inc. Family Security program.” In the event of any conflict between the plan document and this information, the plan document shall prevail.

•WhenminimumrequirementstodebutasanIndependentNationalSalesDirectorhavebeenmet,appointmentisattheCompany’ssolediscretionafterreviewbytheNSDDebutReviewBoard.Appointmentisbasedonseveralfactors(e.g.,MaryKayimage,ethics,integrityandloyaltytotheCompany,theprogramsandthemarketingplan).

•BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,compliancewiththetermsoftheIndependentBeautyConsultantAgreementandIndependentSalesDirectorAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).

Compensation•Team commission of 4%, 9% or 13% Forthe13%personalteamcommission,aNationalSalesDirectordoesnothaveanypersonalactivityrequirements,butisstillrequiredtohaveatleastfivepersonalteammemberseachplaceminimum$225wholesaleSection1orders.

•Sales Director personal unit volume commission of 13%•National Sales Director Commission

➣NSDpersonalunitvolumecommissionof10% sAnNSDmayelecttokeepherpersonalunitatthetimeshedebutsorforma

personalunitatalaterdateinordertodevelopadditionalfirst-lineoffspringunits.Shewillearna10%NSDcommissiononherpersonalunit’swholesalevolumeinadditiontoa13%SalesDirectorcommissiononthatunit’swholesaleproduction.

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Independent National Sales Director Commission Schedule based on combined monthly nsd wholesale purchase volume commission

First-lineoffspringsalesunits 9%Second-lineoffspringsalesunits 4%Third-lineoffspringsalesunits 2%

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➣ First-line new offspring Sales Director bonus BonuseswillbepaidforthedevelopmentofSalesDirectorsfromNSD’spersonalunitaccordingtothefollowingschedule:

nsd bonus

Debut bonus:PaidattimeofoffspringSalesDirector’sdebut(paidonlyonceperindividualSalesDirector) $5,000

•Theminimum20unitsrequiredtodebutasanewNationalSalesDirectormust beinplacebeforethefirst-lineoffspringSalesDirector$5,000bonuscan beearnedonanySalesDirectorswhodebutonthesamedayastheirNationalSalesDirector.

Wholesale production bonus:Paidat annualanniversaryofsameSalesDirector’s debutwhenoffspringSalesDirectorgenerates wholesaleproductionof$60,000ormore withinlast12months$1,000

s Tobeeligibleforthe$1,000first-lineoffspringSalesDirectorbonusbasedonwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000 first-lineoffspringSalesDirectorbonusforthedebutofthesameoffspring SalesDirector.

NSD Area Leadership Development BonusAnNSDwillearnaquarterly(Dec.31,March31,June30andSept.30)LeadershipDevelopmentbonusontheunitsinher1st–3rdaffiliatedandunaffiliated*areamembersasfollows:•$200foreachSeniorSalesDirector •$300foreachFutureExecutiveSalesDirector •$500foreachExecutiveSeniorSalesDirector •$800foreachEliteExecutiveSeniorSalesDirector •$800foreachNationalSalesDirectorPersonalUnitSpecialnote:WhenanEliteExecutiveSeniorSalesDirectordebutsasaNationalSalesDirector,theSeniorNationalSalesDirectorwhoreceivesthe$10,000NSDOffspringDevelopmentbonuswillnolongerreceivethe$800quarterlybonuspaidonEliteExecutiveSeniorSalesDirectorsorNSDpersonalunits.

*AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.

Top 10 Affiliated and Unaffiliated Fourth-Line and Beyond Sales Director Commission• A 2% commission calculated on the combined monthly wholesale purchase volume of

NSD’s offspring Sales Directors that are affiliated and unaffiliated* fourth-line and beyond. “Top 10” means the monthly ranking 1–10 of NSD’s affiliated and unaffiliated* fourth-line and beyond offspring sales units based on monthly wholesale purchase volume.

Grand 5 Contest bonus• A National Sales Director is entitled to a contest bonus of $1,000 when an unaffiliated

U.S. Sales Director in her area achieves any one or more of the following:➣ Cadillac qualification or requalification ➣ Higher Circle of Achievement or Circle of Excellence than the previous year (payable

with July commissions received in August)➣ On the Move➣ Fabulous 50s Club➣ Honors Society

. . . . . . . . . . . .

nsd motivation account

A special allowance is paid to NSDs to help defray some of the expenses related to prizes, awards, newsletters, telephone calls, etc., which are associated with an NSD’s activity with her unaffiliated fourth-line Sales Directors and beyond. This allowance is determined at the end of June and paid in July of the same year according to the following schedule. Only unaffiliated offspring units from the U.S. and Global Leadership Development program are considered for this account.

number of fourth line and below payment

1 to 20 $1,200 21 to 50 $2,400 51 to 100 $3,600 101 + $12,000

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* An affiliated U.S. Sales Director, offspring unit, line and/or area is one that is directly associated with another active offspring National Sales Director.

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rewards• Eligible to wear National Sales Director suit• National News Notes• NSD bracelet

• Eligible for annual luxury trip for self and spouse• Earn the use of a Cadillac or choose the Cash Compensation option at a rate of $1,400

per month in lieu of the car• Family Security program• Opportunity to personally recruit in designated international markets• Disability Award program• Great Futures program• Limousine service at Seminar Awards Ceremony

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Independent Senior National Sales Director and Independent Executive National Sales DirectorQualification• Senior National Sales Director:

YoumusthaveoneoffspringNationalSalesDirectorinanylineregardlessofdebutsequence.

• Executive National Sales Director: YoumusthaveatleastthreeoffspringNationalSalesDirectorsfromanyunaffiliatedlinewhodebutedasIndependentNationalSalesDirectorssubsequenttoyourdebutandforwhomyouareeligibletoreceivetheOffspringNSDDevelopmentbonus.

Compensation• Senior and Executive National Sales Director Commission

Schedule SeniorandExecutiveNationalSalesDirectorcommissionispayableasfollows:

nsd commission

First-lineoffspringSalesDirector whobecomesanNSD 9%

Second-lineoffspringSalesDirector whobecomesanNSD 4%

Third-lineoffspringSalesDirector whobecomesanNSD 2%

Thesepersonalunitcommissionsarepayableregardlessofdebutsequence,eveniftheoffspringNSDdebutedpriortotheSeniorNSD.Likewise,itdoesnotmatterifanotherNSDexistsbetweentheSeniorNSDandtheoffspringNSD.

• Offspring NSD Development bonus Schedule➣ ThefirsttimethatanindividualdebutsasanNSD,theSeniorNSD(whohasbeen

anNSDforatleastsix[6]months)fromwhoseunaffiliatedareatheoffspringNSDisdeveloped,isentitledtoa$10,000offspringNSDDebutbonusatthetimeofthenewoffspringNSD’sdebut.Thereshallonlybeone(1)recipientofthisbonus.Forpurposesofdeterminingtherecipientofthisbonus,theNSDofthenewoffspringNSDsix(6)monthspriortotheoffspringNSD’sdebut,receivesthebonus.


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➣ TheSeniorNSDisentitledtoa$10,000offspringNSDAnniversarybonusannuallythereafterontheoffspringNSD’sdebutdateforsolongastheNationalSalesDirectorAgreements(“NSDAgreement”)ofboththeSeniorNSDandtheoffspringNSDremainineffect.Notwithstandinganythingtothecontrarycontainedherein,theSeniorNSDwillcontinuetoreceivetheoffspringNSDAnniversarybonusuntiltheterminationofherNSDAgreementiftheNSDAgreementofheroffspringNSDterminatedduetotheoffspring’sdeathorqualificationanddebutasan NSDEmeritus.

➣ IftheNSDAgreementofanOffspringNSDisterminated,buttheformeroffspringNSDlaterre-debutsasanNSD,theSeniorNSDatthetimeofthere-debutwillnotreceiveanoffspringNSDDebutbonus,whichisonlypaidthefirsttimeanindividualdebutsasanNSD.TheSeniorNSDatthetimeoftheNSD’sre-debutwillbeeligiblefortheannualoffspringNSDAnniversarybonusbasedonthere-debutdate,beginningonthefirstanniversaryoftheoffspringNSD’sre-debut.


Independent Elite Executive National Sales Director

Qualification• YoumusthaveatleastfiveoffspringNationalSalesDirectorsfromanylinewhodebutedasIndependentNationalSalesDirectorssubsequenttoyourdebutandforwhomyouareeligibletoreceivetheOffspringNSDDevelopmentbonus.

CompensationInadditiontotheNational,SeniorNationalandExecutiveNationalSalesDirectorcompensationandrewards,anEliteExecutiveNationalSalesDirectoralsoiseligibletoreceivethefollowingcompensationandrewards:

➣ Elite Executive National Sales Director Fourth-Line Commission Schedule TheEliteExecutiveNationalSalesDirectorCommissionispayableonthewholesaleunitproductionofallfourth-lineoffspringsalesunits:

elite executive nsd commission

Allfourth-lineoffspringsalesunits 2%

rewards•EliteNSDDiamondBeepin

Special Considerations•WhenanIndependentNationalSalesDirectordebutsasaNationalSalesDirectorEmeritus,theIndependentBeautyConsultantsinherpersonalsalesunitaredispersedamongherfirst-lineSalesDirectors’units.TheydonotmoveupintoherIndependentSeniorNationalSalesDirectororSeniorSalesDirector’ssalesunit.Inaddition,anoffspringSalesDirectorofthedebutingNationalSalesDirectorEmerituswillnotreplacethedebutingNationalSalesDirectorEmeritusasafirst-lineoffspringsalesunitofherSeniorSalesDirectororSeniorNationalSalesDirector.

•AnIndependentNationalSalesDirectormayrequestthattheCompanydispersetheBeautyConsultantsinherpersonalunitatanytimeintoherfirst-lineSalesDirectors’units.ShemaynotdispersetheBeautyConsultantsinherpersonalunitintoherfirst-lineNationalSalesDirectors’personalunit(s).


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n o t e s

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Advancecareer path commissions at-a-glance

Career path commissions at-a-glancen personal team commission schedule for active senior

beauty consultants and above:

commission on combinedqualification wholesale orders

Youhavefiveormorepersonalteammemberswho eachplaceminimum$225wholesaleSection1 ordersinamonth,andyoupersonallyplacea $600wholesaleSection1orderinthesamemonth 13%5ormoreactivepersonalteammembers 9%1to4activepersonalteammembers 4%

n team-building bonus

A$50team-buildingbonuswillbepaidtoStarTeamBuilders,TeamLeaders,FutureIndependentSalesDirectorsandSalesDirectors-in-Qualificationforeachqualified*personalteammemberbeginningwiththefourthpersonalteammember.

n independent sales director commission schedule:

Sales Director Unit Volume Commission Schedule monthly wholesale production commission

$4,500ormore 13%$0to$4,499 9%

Unit Volume Bonus Schedulemonthly unit wholesale purchase volume bonus

$5,000to$5,999.99 $500$6,000to$6,999.99 $600$7,000to$7,999.99 $700$8,000to$8,999.99 $800$9,000to$9,999.99 $900$10,000to$10,999.99 $1,000$11,000to$11,999.99 $1,100$12,000to$12,999.99 $1,200$13,000to$13,999.99 $1,300$14,000to$14,999.99 $1,400$15,000to$15,999.99 $1,500Foreach$1,000increaseinmonthlyUnitWholesalePurchaseVolume,thebonusincreasesby$100.

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*AqualifiedteammemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesale Section1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendar monththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

➣Pleasenote,thisbonusscheduleistheoreticallyinfinitebeyondtheinitial$5,000to$5,999.99tier.Thatis,althoughthe$50,000to$50,999.99tierisnotreflectedintheexample,youwouldstillreceivea$5,000UnitVolumebonusifyourmonthlyUnitWholesalePurchaseVolumefellbetween$50,000and$50,999.99.

Unit Development BonusASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentbonusof$300foreachmonththreeorfourqualified*newunitmembersareaddedtoherSalesUnitORaSalesDirectorUnitDevelopmentbonusof$500foreachmonthfiveormorequalified*newunitmembersareaddedtoherSalesUnit.

Sales Director Personal Team-Building BonusASalesDirectorisentitledtoa$100SalesDirectorPersonalTeam-Buildingbonusforeach“qualified”newpersonalteammemberaddedtoherSalesUnit.

Star Consultant BonusASalesDirectorisentitledtoaStarConsultantbonusbasedonthenumberofStarConsultantsinherSalesUnitinacontestquarter.

number of star consultants bonus

5to9 $30010to14 $40015+ $500

n independent senior sales director, future executive senior sales director, executive senior sales director and elite executive senior sales director commission schedule:personal unit monthly number of offspringwholesale production offspring units commission

Tier1$4,500to$11,999 Onetothree 4.0% Fourtosix 4.5% Sevenormore 5.0%Tier2$12,000ormore Onetothree 5.0% Fourtosix 5.5% Sevenormore 6.0%

*AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

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n independent national sales director, senior national sales director, executive national sales director and elite executive national sales director commission schedule:based on monthly wholesale production nsdof each first-line offspring commission

First-lineunitswhoareunaffiliatedwithanoffspring NSDandthoseaffiliatedwithanoffspringNSD 9%Second-lineunitswhoareunaffiliatedwithanoffspring NSDandthoseaffiliatedwithanNSDoffspring 4%Third-line unitswhoareunaffiliatedwithanoffspring NSDandthoseaffiliatedwithanoffspringNSD 2%Top 10 fourth-lineunitsandbeyondwhoareunaffiliated withanoffspringNSD 2%

•Personalteamcommissionof4%,9%or13%•SalesDirectorpersonalunitvolumecommissionof13%•NSDpersonalunitvolumecommissionof10%

•EliteExecutiveNationalSalesDirectorfourth-linecommissionof2%

➣ First-line new offspring Sales Director Bonus BonuseswillbepaidforthedevelopmentofSalesDirectorsfromNSD’spersonalunitaccordingtothefollowingschedule: nsd bonus

Debut bonus:PaidattimeofoffspringSalesDirector’sdebut (unlessoffspringSalesDirectorpreviouslydebutedfrom anotherNSD’spersonalunit) $5,000

Wholesale production bonus:Paidatannual anniversaryofsameSalesDirector’s debut whenoffspringSalesDirectorgenerates wholesaleproductionof$60,000 ormorewithinlast12months $1,000

s Tobeeligibleforthe$1,000first-lineoffspringSalesDirectorbonusbased onwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000 first-lineoffspringSalesDirectorbonusforthedebutofthesameoffspringSalesDirector.

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Offspring NSD Development bonus

$10,000annualbonusonthedevelopmentofNSDoffspring

•Referto“OffspringNSDDevelopmentbonusSchedule”underIndependentSeniorNationalSalesDirectorandIndependentExecutiveNationalSalesDirectorsection fordetails.

NSD Area Leadership Development Bonus

AnNSDwillearnaquarterly(Dec.31,March31,June30andSept.30)LeadershipDevelopmentbonusontheunitsinher1st–3rdaffiliatedandunaffiliated*areamembersasfollows:

•$200foreachSeniorSalesDirector •$300foreachFutureExecutiveSalesDirector •$500foreachExecutiveSeniorSalesDirector •$800foreachEliteExecutiveSeniorSalesDirector •$800foreachNationalSalesDirectorPersonalUnit

Specialnote:WhenanEliteExecutiveSeniorSalesDirectordebutsasaNationalSalesDirector,theSeniorNationalSalesDirectorwhoreceivesthe$10,000NSDOffspringDevelopmentbonuswillnolongerreceivethe$800quarterlybonuspaidonEliteExecutiveSeniorSalesDirectorsorNSDpersonalunits.

*AnaffiliatedU.S.SalesDirector,offspringunit,lineand/orareaisonethatisdirectlyassociatedwithanotheractiveoffspringNationalSalesDirector.

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career car / cash compensation option

Advance

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*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.

grand achiever career car / cash compensation option

Grand Achiever ProgramBeauty Consultant Grand Achiever Program

rewards•GrandAchieverCareerCarorCashCompensation*•GrandAchieverkeychainpresentedatSeminar

On-Target•Fiveormoreactivepersonalteammembers•$5,000combinedpersonal/teamwholesaleSection1productioninacalendarmonth•Youmustbeactive.•Theserequirementsmustbemeteachmonthtobeconsideredon-target. (A team member who is the spouse of an Independent Beauty Consultant/Independent

Sales Director or a team member of one of your personal team members will not count toward Grand Achiever program on-target requirements, qualification requirements, requalification requirements or maintenance requirements.)

Qualification•YoumayqualifyasaGrandAchieverinone,two,threeorfourmonths,basedonwhenyouachievethefollowing:➣$20,000combinedpersonal/teamwholesaleSection1production➣14activepersonalteammembers

•Youmaycontributeupto$5,000inpersonalwholesaleSection1productiontowardthetotal$20,000requirement.

•Yourteammustcontributeaminimumof$15,000wholesaleSection1productiontowardthetotal$20,000requirement.

•Youmusthaveaminimumof$5,000combinedpersonal/teamwholesaleSection1productioneachmonthofthequalificationperiodwhilemaintainingfiveormoreactivepersonalteammembers.

•Youmustbeactive.

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Maintenance Requirements•Teammaintenancestartsthemonthfollowingqualificationandcontinuesthroughtherequalificationperiodaslongasminimummaintenancerequirementsaremet.

•Minimumof$5,000netadjustedteamwholesaleproductionpermonth•Minimumoffiveactivepersonalteammembers•RemaincurrentonmoniesowedtheCompany.•Receive$600carprogramcredittowardtherequired$5,000netadjustedteamwholesaleproductionpermonthforeachnewqualifiedpersonalteammember.

•Ifproductionfallsbelowtheminimummonthlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongasyouhavefiveormoreactivepersonalteammembersandsteadyimprovementismadetowardtheminimummonthlyproductionrequirement.

Independent Sales Director Unit Maintenance Option•AnIndependentSalesDirectorswhoqualifiesundertheBeautyConsultantGrandAchieverprogramwillbeallowedtoswitchatthebeginningofacalendarquarterfromBeautyConsultantGrandAchieverTeamMaintenancetoSalesDirectorGrandAchieverUnitMaintenance.

•AnIndependentSalesDirectorwhoswitchestoSalesDirectorGrandAchieverUnitMaintenanceisnoteligibletoswitchbacktoBeautyConsultantGrandAchiever TeamMaintenance.

•ForcompleteSalesDirectorGrandAchieverUnitMaintenancerequirements,see“Maintenance”underSalesDirectorGrandAchieverprogram.

Performance Account and Momentum Month•Performanceaccountisutilizedtooffsetproductionshortfallsbelowthemonthlyminimummaintenancerequirementof$5,000netadjustedteamwholesaleproductionpermonthanddoesnotcounttowardon-targetstatusorrequalificationrequirements.

•Performanceaccountisestablishedafterqualificationwith$5,000wholesalebalance.•Your first month after qualification is your momentum month, andallproductioninthismonth,includingcarprogramcredit,willbedoubled.

•Eachmonth,productioninexcessoftherequired$5,000addstotheperformanceaccount;lessthantherequired$5,000depletestheperformanceaccount.

•Maximumperformanceaccountbalancethatcanbecarriedforwardfrommonthtomonthis$15,000.

Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueiftheperformanceaccountisdepletedandproductionfallsshortoftherequired$5,000netadjustedteamwholesaleproduction.


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•Theco-opleasepaymentamountisdeterminedbytheGrandAchieverTeamCo-opLeasePaymentSchedulebelowanddeductedfromthefollowingmonth’scommissioncheck.

•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.

•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.

Grand Achiever Team Co-op Lease Payment Schedule (amounts subject to change)monthly net adjusted team monthly lease wholesale production co-op payment

$5,000ormore -0-$4,000to$4,999 $93.75$3,000to$3,999 $187.50$2,000to$2,999 $281.25$0to$1,999 $375.00

Note: Co-op lease payments begin with the month in which you take delivery of the Career Car unless delivery is taken the last few days of the month in which case co-op lease payments begin the following month.

Cash Compensation Option•MonthlyCashCompensationisinlieuoftheGrandAchieverCareerCar.•FullCashCompensationispaideachmonthunlesstheperformanceaccountisdepletedandproductionfallsshortoftherequired$5,000netadjustedteamwholesaleproductionpermonth.

•TheCashCompensationpaymentamountisdeterminedbytheGrandAchieverTeamCashCompensationPaymentSchedulebelowandpaidinthatmonth’scommissioncheckthatisreceivedinthemiddleofthefollowingmonth.

Grand Achiever Team Cash Compensation Payment Schedule (amounts subject to change)monthly net adjusted team monthly cashwholesale production compensation

$5,000ormore $375.00$4,000to$4,999 $281.25$3,000to$3,999 $187.50$2,000to$2,999 $93.75$0to$1,999 -0-

Note: Cash Compensation payments begin with the commission check received in the second month following qualification.


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Requalification •Requalificationstartsthe21stmonthafterthequalificationmonth.•Sameasqualificationrules•$600carprogramcreditcountstowardrequiredproduction.•Performanceaccountbalancedoesnotcounttowardon-targetstatusorrequalificationrequirements.

•Performanceaccountbalancefollowingrequalificationisre-establishedafterqualificationwitha$5,000wholesalebalanceor thecurrentperformanceaccountbalance,whicheverisgreater.

Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.

➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1productsandmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreement wasreceivedandacceptedbytheCompany.

•Carprogramcreditappliestowardtherequiredmaintenancerequirementsandrequalificationrequirements.

. . . . . . . . . . . .

net adjusted unit wholesale production

AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.


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*ToselecttheGrandAchieverCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.

Sales Director Grand Achiever Program

rewards •GrandAchieverCareerCarorCashCompensation* •GrandAchieverkeychainpresentedatSeminar

On-Target•$19,500netadjustedunitwholesaleproductioninonecalendarquarter.

Qualification•$39,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters. Examples: Calendar Quarter 1 Quarter 2 Total NetWholesale$19,500 + $19,500 = $39,000 NetWholesale$18,000 + $21,000 = $39,000

•$600carprogramcreditcountstowardrequiredproduction.

Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyourrequalificationperiodaslongasminimummaintenancerequirementsaremet.

•Minimumof$19,500netadjustedunitwholesaleproductionpercalendarquarter•Excessproductionfromthetwoqualifyingquartersover$39,000willcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

•Productioninexcessof$19,500ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationforeightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.

•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.


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Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation•Co-opleasepaymentisdueifproductionfallsbelow$19,000netadjustedunitwholesaleproductionpercalendarquarter.

•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheGrandAchieverUnitCareerCarCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



Grand Achiever Unit Co-op Lease Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly lease wholesale production co-op payment

$19,000andover -0-$16,000to$18,999 $37.50$14,000to$15,999 $75.00$12,000to$13,999 $112.50$10,000to$11,999 $187.50$8,000to$9,999 $262.50$0to$7,999 $375.00Note: Co-op lease payments begin with the month in which you take delivery of the Career Car unless delivery is taken the last few days of the month in which case co-op lease payments begin the following month.

Cash Compensation Option •CashCompensationisinlieuoftheGrandAchieverCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternetadjustedunitwholesaleproductionandtheGrandAchieverUnitCashCompensationPaymentScheduleonnextpage.


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Grand Achiever Unit Cash Compensation Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly cash wholesale production compensation

$19,000andover $375.00$16,000to$18,999 $337.50$14,000to$15,999 $300.00$12,000to$13,999 $262.50$10,000to$11,999 $187.50$8,000to$9,999 $112.50$0to$7,999 -0-Note: Cash Compensation payments begin with the commission check received in the fourth month following qualification.

Requalification •$39,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersofpossessionorduringtheseventhandeighthquartersofpossession

•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,butdidachieve$19,500netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.Note: Quarter of possession starts the quarter following qualification.

Car Program Credit •Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.

➣ InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.

•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.

. . . . . . . . . . . .



sales director career car / cash compensation option

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*ToselectthePremierClubCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentBeautyConsultantsorIndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaGrandAchieverCareerCar.

Premier Club Programrewards•PremierClubCareerCar*orCashCompensation•PremierClubkeychainpresentedatSeminar

On-Target• $27,000netadjustedunitwholesaleproductioninonecalendarquarter

Qualification• $54,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters

EXAMPLES: Calendar Quarter 1 Quarter 2 Total NetWholesale$27,000 + $27,000 = $54,000 NetWholesale$25,000 + $29,000 = $54,000

• $600carprogramcreditcountstowardrequiredproduction.

Maintenance• Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyourrequalificationperiodaslongasminimummaintenancerequirementsaremet.

• Minimumof$27,000netadjustedunitwholesaleproductionpercalendarquarter• Excessproductionfromthetwoqualifyingquartersover$54,000willcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

• Productioninexcessof$27,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

• RemaincurrentonmoniesowedtheCompany.• $600carprogramcreditcountstowardrequiredproduction.• MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationforeightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.

•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.

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Premier Club Career Car•PremierClubCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$26,000netadjustedunitwholesaleproductionpercalendarquarter.

•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandthePremierClubCarCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



Premier Club Co-op Lease Payment Schedule (amounts subject to change)

quarterly net adjusted unit monthly leasewholesale production co-op payment

$26,000andover -0-$23,000to$25,999 $50$20,000to$22,999 $100$17,000to$19,999 $150$14,000to$16,999 $250$11,000to$13,999 $350$0to$10,999 $500


Cash Compensation Option •CashCompensationisinlieuofthePremierClubCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternetadjustedunitwholesaleproductionandthePremierClubCashCompensationPaymentScheduleonnextpage.

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Premier Club Cash Compensation Payment Schedule (amounts subject to change)

quarterly net adjusted unit monthly cashwholesale production compensation

$26,000andover $500$23,000to$25,999 $450$20,000to$22,999 $400$17,000to$19,999 $350$14,000to$16,999 $250$11,000to$13,999 $150$0to$10,999 -0-Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.

Requalification•$54,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersofpossessionorduringtheseventhandeighthquartersofpossession

•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,butdidachieve$27,000netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.

Note: Quarter of possession starts the second quarter following qualification.


➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.


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*ToselecttheCadillacCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceprogram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).

Pink Cadillac Programrewards•CadillacCareerCar*orCashCompensation•CadillackeychainpresentedatSeminar

On-Target•$48,000netadjustedunitwholesaleproductioninonecalendarquarter

Qualification•$96,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters. EXAMPLES:

Calendar Quarter 1 Quarter 2 Total NetWholesale$48,000 + $48,000 = $96,000 NetWholesale$40,000 + $56,000 = $96,000•$600carprogramcreditcountstowardrequiredproduction.

Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyourrequalificationperiodaslongasminimummaintenancerequirementsaremet.

•Minimumof$48,000netadjustedunitwholesaleproductionpercalendarquarter.•Excessproductionfromthetwoqualifyingquartersover$96,000willcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

•Productioninexcessof$48,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationforeightcalendarquarters,dependingupontheIndependentSalesDirector’snetadjustedunitwholesaleproductionfromthepriorquarter.

•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintheawardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.


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Cadillac Career Car •CadillacisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$47,000netadjustedunitwholesaleproductionpercalendarquarter.

•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheCadillacCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



Cadillac Co-op Lease Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly co-opwholesale production lease payment

$47,000andover -0-$44,000to$46,999 $90$41,000to$43,999 $180$37,000to$40,999 $270$33,000to$36,999 $450$29,000to$32,999 $630$0to$28,999 $900


Cash Compensation Option •CashCompensationisinlieuoftheCadillac.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarter’snetadjustedunitwholesaleproductionandtheCadillacCashCompensationPaymentScheduleonnextpage.


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Cadillac Cash Compensation Payment Schedule (amounts subject to change)quarterly net adjusted unit monthly cashwholesale production compensation

$47,000andover $900$44,000to$46,999 $810$41,000to$43,999 $720$37,000to$40,999 $630$33,000to$36,999 $450$29,000to$32,999 $270$0to$28,999 -0-

Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.

Requalification•$96,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersofpossessionorduringtheseventhandeighthquartersofpossession

•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,butdidachieve$48,000netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.

Note: Quarter of possession starts the second quarter following qualification.


➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.


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