Advance A

P

RO

VE

N

PR

OG

RA

M

FO

R

AC

HI

EV

IN

G

SU

CC

ES

S

CA

RE

ER

P

AT

H

AN

D

CA

RE

ER

C

AR

P

RO

GR

AM

This is a brief description of the incentive program

s in effect as of February 1, 2008. The C

ompany reserves

the right to alter, modify or change the com

missions, bonuses or any term

s of the incentive programs

described herein. ©2008 M

ary Kay Inc. R

ev. 2/08

12

34

Career Path At-A-Glance■

AS

A

S

EN

IO

R C

ON

SU

LTA

NT

YO

U C

OU

LD

:

•Earn profits based on retail sales

•Earn a 4%

comm

ission on wholesale

orders of personal team m

embers

■A

S A

N IN

DE

PE

ND

EN

T

BE

AU

TY

C

ON

SU

LTA

NT

YO

U C

OU

LD

:

•Earn profits based on retail sales

•Earn rew

ards to help you build yourbusiness

■A

S A

S

TA

R C

ON

SU

LTA

NT

YO

U C

OU

LD

:

•R

eceive special recognition

•Earn fabulous prizes

■A

S A

S

TA

R R

EC

RU

IT

ER

YO

U C

OU

LD

:

•Earn profits based on retail sales

•Earn a 4%

comm

ission on wholesale

orders of personal team m

embers

•R

eceive a $50 red jacket rebate

•R

eceive $50 team-building bonuses

56

78

■A

S A

T

EA

M LE

AD

ER

/F

UT

UR

E

IN

DE

PE

ND

EN

T S

ALE

S

DIR

EC

TO

R Y

OU

C

OU

LD

:

•Earn profits based on retail sales

•Earn a 9%

or 13% com

mission on w

hole-sale orders of personal team

mem

bers

•R

eceive $50 team-building bonuses

•Earn the use of a C

areer Car or select the

Cash C

ompensation option

■A

S A

N IN

DE

PE

ND

EN

T S

ALE

S

DIR

EC

TO

R Y

OU

C

OU

LD

:

•Earn profits based on retail sales

•Earn personal team

comm

issions of 4%

, 9% or 13%

•

Earn 9% or 13%

unit comm

ission•

Receive a Personal Team-Building Bonus

of $100 or more

•Receive a U

nit Volume Bonus of

$500 or more

•Receive a U

nit Developm

ent Bonus of $300 or $500

•Receive a Star C

onsultant Bonus of $300,$400 or $500

•Receive a W

ellness Award Bonus of $750,

$1,200 or $1,800•

Be eligible for Term Life Insurance Aw

ardand D

isability Award Program

s •

Earn the use of a Career C

ar or select Cash

Com

pensation option

■A

S A

N IN

DEP

EN

DEN

T N

ATIO

NA

L

SA

LES D

IRECTO

R Y

OU

CO

ULD

:

• Earn personal team com

missions of 4%

, 9% or 13%

• Earn personal unit Sales Director com

mission of 13%

• Earn NSD

comm

issions of 10% on personal unit

wholesale• Earn 9%

comm

issions on first-line; 4% on second-

line; 2% on third-line offspring units

• Earn a $1,000 and $5,000 bonus for new first-lineSales D

irectors• Earn $10,000 annual bonus for developm

ent of new N

SD offspring

• Earn 2% com

mission on top 10 fourth-line and

beyond units unaffiliated with NSD

offspring•

Receive a Star Consultant Bonus of $3,000 for every 100 Star Consultants in your unaffiliated first-, second- and third-line offspring units

• Receive a pink Cadillac with a choice of options orselect the Cash Com

pensation option• Enroll in the Fam

ily Security and G

reat Futures Programs

■IN

T

HE

C

AR

EE

R C

AR

PR

OG

RA

M, Y

OU

C

OU

LD

EA

RN

T

HE

U

SE

O

F A

:

•G

rand Achiever C

areer Car (C

onsultant)

•Prem

ier Club C

areer Car (Sales D

irector)

•Pink C

adillac Career C

ar (Sales Director

and NSD

)

•O

r select the Cash C

ompensation option

in lieu of any of the cars listed above

..

..

..

..

..

..

LLaa

dddd

eerr

oo

ff

SSuu

cccc

eess

ss

PPrr

oogg

rraa

mm

A C

onsultant at any step of the career path may becom

e a Star Consultant

when a m

inimum

of $1,800 in wholesale Section 1 orders is postm

arkedw

ithin the contest quarter. Higher categories can be achieved w

ithadditional w

holesale Section 1 orders postmarked during the quarter

and qualified team building. Six hundred contest credits are aw

arded foreach qualified** new

personal team m

ember added during the quarter.

A Star C

onsultant is rewarded w

ith a Ladder of Success pin and a:

➣Sapphire star for $1,800 w

holesale

➣R

uby star for 2,400 contest credits

➣D

iamond star for 3,000 contest credits

➣E

merald star for 3,600 contest credits

➣Pearl star for 4,800 contest credits

Star Consultant consistency also is recognized.

..

..

..

..

..

..

NNee

ww

CCoo

nnss

uull

ttaa

nntt

II

nncc

eenn

ttii

vvee

ss

•• NNeeww

CCoonn

ssuullttaann

tt PPrroodduu

cctt BBoonn

uuss

➣A

new C

onsultant can earn a free product bonus when her initial

wholesale Section 1 order is $600 or m

ore, and it is received andaccepted by the C

ompany in the sam

e or following calendar m

onththat her Independent Beauty C

onsultant Agreem

ent is receivedand accepted by the C

ompany. T

he value of the product bonusshe receives is based on the size of the initial order and w

hen theorder is postm

arked. For details see the Ready, Set, Sell! Inventory

Options for N

ew C

onsultants brochure and log on to the Mary K

ayInTouch

®W

eb site.

➣A

new C

onsultant also can earn a customized signature look w

henher initial order is $600 or m

ore in wholesale Section 1 products,

and it is received and accepted by the Com

pany within 15 calendar

days of when the Independent Beauty C

onsultant Agreem

ent isreceived and accepted by the C

ompany.

**A qualified new

personal team m

ember is one w

hose Independent Beauty Consultant A

greement

and a minim

um of $600 in w

holesale Section 1 orders are postmarked w

ithin the contest quarter,and contest credit is any com

bination of at least $1,800 in wholesale Section 1 orders, plus

qualified new personal team

mem

bers.

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

5

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

4 Independent Beauty Consultant *

AAvveenn

uueess ooff IInn

ccoommee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

RE

WA

RD

S

• Mary K

ay®

pin

• Applause

®m

agazine

• Eligible to attend Sem

inar and Career C

onference

• Eligible to qualify for quarterly Star C

onsultant recognition and prizes

■B

US

IN

ES

S

GU

ID

EL

IN

ES

• A

n Independent Beauty Consultant is considered “active” in the m

onth am

inimum

$200 wholesale Section 1 product order is received by the

Com

pany and in the following tw

o calendar months.

• A

ctivity status, career status and compensation w

ill be based on IndependentBeauty C

onsultant Agreem

ents and wholesale orders received and accepted

by the Com

pany by the close of business each month.

*A

n Independent Beauty Consultant is an independent contractor, not an em

ployee of M

ary Kay Inc., and w

ill not be treated as an employee for federal tax purposes or otherw

ise.

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

7

➣You can increase your com

mission to 13%

when you place a

personal minim

um $600 w

holesale Section 1 order in the same

month that at least five personal team

mem

bers each placem

inimum

$200 wholesale Section 1 orders. (Special considerations

for Executive Senior Sales D

irectors, Elite E

xecutive Senior SalesD

irectors [see Page 22] and National Sales D

irectors [see Page 26].)

■B

US

IN

ES

S

GU

ID

EL

IN

ES

• Spouses as Independent Beauty C

onsultants➣

Spouses may be M

ary Kay Independent Beauty C

onsultants. How

ever,there m

ay be only one Independent Sales Director per spouse team

. They

may operate separately, just as if they w

ere not related. How

ever, forC

ompany record purposes, one w

ill be considered a personal teamm

ember of the other. In other w

ords, the spouse of a Beauty Consultant

must be recruited by that Beauty C

onsultant. The personal team

comm

ission and team-building bonus norm

ally paid on team m

embers

will not be paid w

hen a spouse recruits her/his spouse. The spouse w

ill not count in any w

ay toward Independent Sales D

irector qualification or any C

ompany prom

otions or awards, including qualification or

maintenance of a C

areer Car under the G

rand Achiever C

areerC

ar program.

6 Senior ConsultantAA

vveennuu

eess ooff IInnccoomm

ee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

• Team-building com

missions

CCoomm

ppeennssaattiioonn

• 4% personal team

comm

ission

RE

WA

RD

S

• 1 Active Personal Team

Mem

ber: Eligible to wear Senior C

onsultantpin enhancer

• 2 Active Personal Team

Mem

bers: Eligible to order red jacket

• Eligible to qualify for quarterly Star C

onsultant recognition and prizes

RReeqquu

iirreemmeenn

ttss• 1 - 2 active personal team

mem

bers• You m

ust be active.

..

..

..

..

..

..

PPee

rrss

oonn

aall

TT

eeaa

mm

CCoo

mmmm

iiss

ssii

oonn

ss

All active

Senior Consultants and above are eligible to earn a 4%

, 9% or

13% personal team

comm

ission on the wholesale orders placed by their

personal team m

embers.

➣W

hen you have one to four active personal team m

embers, you can

earn a 4% com

mission on team

mem

bers’ combined w

holesaleSection 1 orders in any calendar m

onth.➣

When you have five or m

ore active personal team m

embers, you

can earn a 9% com

mission on team

mem

bers’ combined w

holesaleSection 1 orders in any calendar m

onth.

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

9

..

..

..

..

..

..

TTee

aamm

--BB

uuii

lldd

iinn

gg

BBoo

nnuu

ss

A $50 team

-building bonus will be paid to Star R

ecruiters, Team Leaders,

Future Independent Sales Directors and Sales D

irectors-in-Qualification for

each qualified personal team m

ember beginning w

ith the fourth personal teamm

ember.In the m

onth your team m

ember’s initial qualifying order is

received, you must be active and have a m

inimum

of three other activepersonal team

mem

bers to receive the bonus.

■B

US

IN

ES

S

GU

ID

EL

IN

ES

• For career path status and com

pensation purposes, a qualified team m

ember

is one whose initial order w

ith the Com

pany is $600 or more in w

holesaleSection 1 products, and it is received and accepted by the C

ompany in the

same or follow

ing calendar month that her Independent Beauty C

onsultantA

greement is received and accepted by the C

ompany.

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

8 Star RecruiterAA

vveennuu

eess ooff IInnccoomm

ee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

• Team-building com

missions

• Team-building bonus

CCoomm

ppeennssaattiioonn

• 4% personal team

comm

ission• Team

-building bonus

RE

WA

RD

S

• Eligible to w

ear Star Recruiter pin enhancer

• Eligible to w

ear red jacket• R

eceive $50 rebate on the purchase of the official red jacket availableonly from

Mary K

ay Inc.• E

ligible to qualify for quarterly Star Consultant recognition and prizes

RReeqquu

iirreemmeenn

ttss• 3 - 4 active personal team

mem

bers• You m

ust be active.

11

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

Future Independent Sales Director *

AAvveenn

uueess ooff IInn

ccoommee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

• Team-building com

missions

• Team-building bonus

CCoomm

ppeennssaattiioonn

• 4%, 9%

or 13% personal team

comm

ission

• Team-building bonus

RE

WA

RD

S

• Eligible to w

ear Future Independent Sales Director pin enhancer

• Eligible to w

ear Future Independent Sales Director scarf

• Eligible to qualify for quarterly Star C

onsultant recognition and prizes

• Eligible to subm

it Sales Director-in-Q

ualification comm

itment form

• Eligible to qualify for G

rand Achiever status (G

rand Achiever C

areer Car

or Cash C

ompensation option)

RReeqquu

iirreemmeenn

ttss

• 8 or more active personal team

mem

bers

• You must be active.

*Achieving Future Independent Sales D

irector recognition status does not guarantee you will becom

ean Independent Sales D

irector. In order to become an Independent Sales D

irector, you must

successfully complete the Independent Sales D

irector qualification requirements as set forth by the

Com

pany. A Sales D

irector is an independent contractor, not an employee of M

ary Kay Inc., and

will not be treated as an em

ployee for federal tax purposes or otherwise. T

he Sales Director position

is appointed at the sole discretion of Mary K

ay Inc.

CO

NS

UL

TA

NT

C

AR

EE

R

PA

TH

10

Team LeaderAA

vveennuu

eess ooff IInnccoomm

ee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

• Team-building com

missions

• Team-building bonus

CCoomm

ppeennssaattiioonn

• 9% or 13%

personal team com

mission

• Team-building bonus

RE

WA

RD

S

• Eligible to w

ear Team Leader pin enhancer

• Eligible to qualify for quarterly Star C

onsultant recognition and prizes

• Eligible to go on-target for G

rand Achiever status (G

rand Achiever

Career C

ar or Cash C

ompensation option)

RReeqquu

iirreemmeenn

ttss

• 5 to 7 active personal team m

embers

• You must be active.

• Be in good standing with the C

ompany based on the term

s of theIndependent Beauty C

onsultant Agreem

ent (including, but not limited

to, paying in full any accounts receivable she may have w

ith theC

ompany under current or previous C

onsultant numbers).

• Submit an

online comm

itment form

available on the Mary K

ay InTouch®

Web site from

the 8th through the10th of every m

onth. By submitting

an online comm

itment form

, the DIQ

will know

imm

ediately if she hasbeen accepted into the Sales D

irector-in-Qualification program

. Or,

submit an original com

mitm

ent form postm

arked on or beforethe first of

the month. (Exam

ple: If a DIQ

wishes to begin Sales D

irector-in-Q

ualification June 1, her comm

itment form

should be postmarked

sometim

e in May, or at the latest, June 1.)

DDuu

rriinngg QQ

uuaalliiffiiccaattiioonn

• A D

IQ m

ay qualify as an Independent Sales Director in one, tw

o, threeor four m

onths, based on when she achieves the follow

ing:

➣$16,000 cum

ulative unit wholesale production

➣30 total active unit m

embers*

➣$4,000 m

inimum

wholesale unit production each m

onth, even if theD

IQ has already reached $16,000 cum

ulative wholesale production.

• The D

IQ’s unit m

embers m

ust contribute at least $12,000 toward the

$16,000 wholesale production requirem

ent.

• A D

IQm

ay contribute up to $4,000 in personal wholesale Section 1

production toward the $16,000 cum

ulativeunit w

holesale productionduring the qualification period.

• The qualifying unit is com

prised of the DIQ

and her personal teamm

embers, regardless of their unit affiliation (E

xception: personal teamm

embers w

ho already may be Sales D

irectors or in qualification tobecom

e a Sales Director). Team

mem

bers’ recruits whose Independent

Beauty Consultant A

greements are accepted by the C

ompany on or after

the first day of the month in w

hich the DIQ

begins Sales Director

qualification will be m

embers of the new

qualifying unit. Teamm

embers’ recruits w

hose Independent Beauty Consultant A

greements

were accepted by the C

ompany prior to her first m

onth of qualificationrem

ain in the parent unit.

*To count tow

ard this requirement, none of the D

IQ’s team

mem

bers can be any of the following:

the spouseof any Beauty C

onsultant, the DIQ

’s spouse, a current DIQ

(during the DIQ

’squalification) or a current Sales D

irector.

Independent Sales Director-in-QualificationAA

vveennuu

eess ooff IInnccoomm

ee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

• Team-building com

missions

• Team-building bonus

Acceptance into the Sales D

irector-in-Qualification program

is at theC

ompany’s sole discretion.

CCoomm

ppeennssaattiioonn

• 4%, 9%

or 13% personal team

comm

ission

• Team-building bonus

PPrriioorr ttoo eenn

tteerriinngg tthh

ee QQuu

aalliiffiiccaattiioonn PP

rrooggrraamm

In order to submit a com

mitm

ent form to the C

ompany stating an intent

to begin Independent Sales Director-in-Q

ualification (DIQ

), anIndependent Beauty C

onsultant must:

• Be active and have eight or more active personal team

mem

bers them

onth prior to the first month of qualification.

➣To count tow

ard this requirement, none of the team

mem

bers can beany of the follow

ing: the spouse of any Consultant, the D

IQ’s

spouse, a personal team m

ember subm

itting her comm

itment form

in the same m

onth as the DIQ

, a current DIQ

or a current SalesD

irector. If one of her personal team m

embers subm

its acom

mitm

ent form in the sam

e month as the D

IQ, the D

IQ w

illneed to replace her and have at least nine active personal teamm

embers in the m

onth prior to the first month of qualification.

1312

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

15

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

• Spouses do not count toward any program

except unit production andcom

mission. O

nce one spouse becomes a Sales D

irector, the otherspouse is not eligible to becom

e a Sales Director. T

he Sales Director

comm

ission will be paid on the spouse’s orders.

• Should the DIQ

’s qualifying unit fail to reach 30 active mem

bers and/orthe required unit w

holesale production sales amounts, the D

IQ has not

qualified and must subm

it a new com

mitm

ent form to begin qualification

again (imm

ediately, if she chooses and is eligible). The D

IQ’s team

mem

bers’ recruits will rem

ain in the parent unit.• A

Sales Director is an independent contractor and not an em

ployee ofM

ary Kay Inc. T

he Sales Director position is appointed at the sole

discretion of Mary K

ay Inc.

TThh

ee DDIIQQ

uunn

ddeerrssttaannddss::

• The im

portance of attending the New

Independent Sales Director

Education w

eek designated for her debuting class when she com

pletesthe Sales D

irector-in-Qualification program

.

• In the event anyone places an order for a Starter Kit and/or product on

behalf of a Consultant, the follow

ing applies:

➣T

he person placing the order must have the C

onsultant’s consentprior to placing the order;

➣T

he person placing the order must use the C

onsultant’s funds; and

➣T

he person placing the order must be in possession of the

Consultant’s funds prior to placing the order.

• Taking a postdated check and placing an order for a Consultant w

ill not count.

• A C

onsultant selling anyone’s inventory other than her own, then placing

an order will not count.

• The D

IQ cannot sell her inventory to a C

onsultant and take his/herm

oney to place an order to replace the DIQ

’s inventory.

• If the DIQ

uses her credit card to pay for a Consultant’s order, the D

IQm

ust have already received the cash from the C

onsultant before theorder is m

ailed, phoned in, placed online or delivered to the branch.

• The D

IQ cannot place an order for a C

onsultant with his/her prom

ise topay the D

IQ back.

14 SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

SSppeecciiaall CCoonn

ssiiddeerraattiioonnss

• Should a DIQ

submit a com

mitm

ent form three tim

es within a 12-m

onthperiod (each tim

e failing to meet the requirem

ents to complete the

process), she will receive a letter explaining she has one m

oreopportunity to com

plete the requirements (her fourth). A

fter receivingthe letter, she m

ay decide whether to m

ake that fourth attempt

imm

ediately, a few m

onths later or years later, either under her currentor any future C

onsultant numbers. If she does not com

plete therequirem

ents on the fourth attempt, she w

ill have to follow a tw

o-month

building plan as outlined in the letter she received.

• The tw

o-month building requirem

ents will still apply should she choose

to terminate her Independent Beauty C

onsultant Agreem

ent and become

an Independent Beauty Consultant again at som

e future date.

• Independent Beauty Consultants w

ho return merchandise to the

Com

pany are not eligible to rejoin Mary K

ay as an Independent Beauty C

onsultant.

• For more inform

ation, log on to the Mary K

ay InTouch®

Web site and

select “DIQ

Program” under R

esources.

•SSaalleess DD

iirreeccttoorr UUnn

iitt VVoolluu

mmee BB

oonnuu

ss

➣A

Sales Director is entitled to a Sales D

irector Unit Volum

e Bonus of10 percent (10%

) of the monthly W

holesale Purchase Volume of Sales

Director’s Sales U

nit, calculated based on the starting point of theapplicable $1,000 tier, beginning at the $5,000 tier. For exam

ple:

MO

NTH

LY UN

IT WH

OLESA

LE PURCH

ASE V

OLU

ME

BON

US

$5,000 to $5,999.99$500

$6,000 to $6,999.99$600

$7,000 to $7,999.99$700

$8,000 to $8,999.99$800

$9,000 to $9,999.99$900

$10,000 to $10,999.99$1,000

$11,000 to $11,999.99$1,100

$12,000 to $12,999.99$1,200

$13,000 to $13,999.99$1,300

$14,000 to $14,999.99$1,400

$15,000 to $15,999.99$1,500

$16,000 to $16,999.99$1,600

$17,000 to $17,999.99$1,700

$18,000 to $18,999.99$1,800

$19,000 to $19,999.99$1,900

$20,000 to $20,999.99$2,000

$21,000 to $21,999.99$2,100

$22,000 to $22,999.99$2,200

$23,000 to $23,999.99$2,300

$24,000 to $24,999.99$2,400

$25,000 to $25,999.99$2,500

For each $1,000 increase in monthly U

nit Wholesale Purchase

Volume, the bonus increases by $100.

➣Please note, this bonus schedule is theoretically infinite beyond theinitial $5,000 to $5,999.99 tier. T

hat is, although the $50,000 to$50,999.99 tier is not reflected in the exam

ple, you would still

receive a $5,000 Unit Volum

e Bonus if your monthly U

nit Wholesale

Purchase Volume fell betw

een $50,000 and $50,999.99.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

1716 S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

H

Independent Sales Director *

AAvveenn

uueess ooff IInn

ccoommee

• Product sales and reorders➣

On the Face – Skin care classes and facials

➣O

n the Go – Q

uick and easy 15-minute appointm

ents➣

Online – Sales through your M

ary Kay

®Personal W

eb Site➣

On Paper – Sales through catalogs and brochures (Preferred C

ustomer

Program m

ailings, The Look, Beauty Book,etc.)

➣O

n With the Show

– Parties that preview product sets (collection

previews, open houses)

• Team-building com

missions

• Leadership

CCoomm

ppeennssaattiioonn

• 4%, 9%

or 13% personal team

comm

ission

•SSaalleess DD

iirreeccttoorr PPeerrssoonn

aall TTeeaamm

--BBuu

iillddiinngg BB

oonnuu

ss

➣A

Sales Director is entitled to a $100 Sales D

irector Personal Team-

Building Bonus for each qualified new personal team

mem

beradded to her Sales U

nit. A qualified new

personal team m

ember is

one whose initial order w

ith the Com

pany is $600 or more in

wholesale Section 1 products, and it is received and accepted by the

Com

pany in the same or follow

ing calendar month that her

Independent Beauty Consultant A

greement is received and accepted

by the Com

pany. The Sales D

irector Personal Team-Building Bonus

is earned in the month in w

hich the qualified team m

ember’s initial

$600 wholesale Section 1 order is received and accepted by the

Com

pany.

➣T

he Sales Director Personal Team

-Building Bonus will be paid on

the basis of wholesale orders and Independent Beauty C

onsultantA

greements received and accepted by the C

ompany by the close of

business each month.

•SSaalleess DD

iirreeccttoorr UUnn

iitt VVoolluu

mmee CC

oommmm

iissssiioonn SScchh

eedduu

llee

MO

NTH

LY WH

OLESA

LE PROD

UCTIO

NCO

MM

ISSION

$4,000 or more

13%$0 to $3,999

9%

*A Sales D

irector is an independent contractor, not an employee of M

ary Kay Inc., and w

ill not betreated as an em

ployee for federal tax purposes or otherwise.

1918

WWeellllnneessss AA

wwaarrdd BBoonnuuss PPrrooggrraamm

• A

special cash award designed to help offset expenses associated w

ith theneeds or activities that contribute to physical w

ellness although it can beused in any w

ay you choose. ➣

Qualification for the W

ellness Award Bonus is based on the previous

calendar year’s Total Annual N

et adjusted Section 1 unit wholesale

production. One check w

ill be paid in January of each year. SalesD

irectors must qualify each year for this aw

ard.

SALES D

IRECTOR’S TO

TAL A

NN

UA

L NET

AD

JUSTED

WELLN

ESS AWA

RD

UN

IT WH

OLESA

LE PROD

UCTIO

NBO

NU

S

$60,000 to $124,999$750

$125,000 to $186,999$1,200

$187,000 and above$1,800

Note: M

ary Kay Inc. does not provide health insurance coverage for independent sales

force mem

bers. The Com

pany recognizes, however, that rising costs associated

with health care and other w

ellness activities is a concern for all. While the bonus

can be used to offset costs associated with m

aintaining physical wellness, it is a

cash award, payable in January of the year follow

ing the qualification year, foruse in Sales D

irector’s discretion. In order to receive the bonus, a Sales Director

must be in good standing w

ith the Com

pany on Dec. 31 of the qualification year.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

•SSaalleess DD

iirreeccttoorr UUnn

iitt DDeevveelloopp

mmeenn

tt BBoonn

uuss

➣A

Sales Director is entitled to a Sales D

irector Unit D

evelopment

Bonus of $300 for each month three or four qualified* new

unitm

embers are added to her Sales U

nit OR

➣A

Sales Director is entitled to a Sales D

irector Unit D

evelopment

Bonus of $500 for each month five or m

ore qualified* new unit

mem

bers are added to her Sales Unit.

➣T

he Sales Director U

nit Developm

ent Bonus is earned in the month in

which the appropriate num

ber of new qualified unit m

embers’ initial

minim

um $600 w

holesale Section 1 orders are received and acceptedby the C

ompany.

•SSttaarr CC

oonnssuullttaanntt BBoonnuuss

➣A

Sales Director is entitled to a Star C

onsultant Bonus based on thenum

ber of Star Consultants** in their Sales U

nit in a contest quarter:

NU

MBER O

F STAR CO

NSU

LTAN

TS**BO

NU

S

5 to 9 $300

10 to 14$400

15+$500

➣In the case of an O

ffspring Unit, Star C

onsultants in the Offspring U

nitw

ill count for both the Senior Sales Director and the new

Sales Director

during the Star Consultant contest quarter that the debut takes place.

CCoonn

tteesstt BBoonn

uuss ((eeffffeeccttiivvee tthh

rroouugghh

JJuunn

ee 3300,, 22000088))

• A Sales D

irector is entitled to a contest bonus of $1,000 when she achieves:

➣C

adillac qualification or requalification;

➣H

igher Circle of A

chievement or C

ircle of Excellence than the previousyear (payable w

ith July comm

issions received in August). For exam

ple,if your 2006 unit circle level is higher than your 2005 unit circle level,you’ll earn the bonus. If your 2007 unit circle level is higher than your2006 unit circle level, you’ll earn the bonus. A

nd if 2006 or 2007 is your first tim

e to achieve a unit circle, you’ll earn the bonus.

➣O

n the Write Track

➣Fabulous 50s C

lub

➣H

onors Society

*A qualified unit m

ember is one w

hose initial order with the C

ompany is $600 or m

ore in wholesale

Section 1 products, and it is received and accepted by the Com

pany in the same or follow

ing calendarm

onth that her Independent Beauty Consultant A

greement is received and accepted by the C

ompany.

**A “Star C

onsultant” is one who places w

ith the Com

pany a minim

um of $1,800 in w

holesale Section 1orders postm

arked during the applicable Star Consultant C

ontest Quarter. “Star C

onsultant Contest

Quarter” is1) D

ec.16- M

arch15; 2) M

arch16

- June15; 3) June16- Sept.15; and 4) Sept.16

- Dec.15.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

RE

WA

RD

S

• Eligible to w

ear Sales Director suit

• Directors M

emo

• Sales Director Q

uarterly Power Plan

• Eligible to order Sales D

irector Unit Support Package

• Eligible to w

ear Sales Director pin and enhancer

• Eligible to earn the use of a Sales D

irector Career C

ar or Cash

Com

pensation option• E

ligible to qualify for quarterly Star Sales Director recognition and

yearlong consistency prizes• E

ligible for Wellness Aw

ard Bonus Program• E

ligible for Term Life Insurance Aw

ard and Disability Aw

ard Programs

• Eligible to attend Leadership C

onference• E

ligible to qualify for Top Sales Director Trip

• Opportunity to personally recruit in designated international m

arkets

■B

US

IN

ES

S

GU

ID

EL

IN

ES

• Sales D

irector comm

issions and Sales Director bonuses are based on w

holesaleorders and Independent Beauty C

onsultant Agreem

ents received and acceptedby the C

ompany by the close of business each m

onth.•

It is expected that a Sales Director m

aintain minim

um unit production of

$4,000 wholesale per m

onth.

..

..

..

..

..

..

IInn

ddee

ppee

nndd

eenn

tt

SSaa

llee

ss

DDii

rree

cctt

oorr

TT

eerr

mm

LLii

ffee

IInn

ssuu

rraa

nncc

ee

AAww

aarr

dd

aann

dd

DDii

ssaa

bbii

llii

ttyy

AA

wwaa

rrdd

PPrr

oogg

rraa

mmss

•• SSaalleess DDiirreeccttoorr TT

eerrmm LL

iiffee IInnssuu

rraannccee AA

wwaarrdd PP

rrooggrraamm

➣Q

ualification for paid life insurance is based on the previouscalendar year’s total annual net adjusted unit w

holesale production.Sales D

irectors must qualify each year for this aw

ard.

➣A

s an award, the

fair market value of Sales D

irector Term Life

Insurance is included on IRS Form

1099 as income.

20 SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

SALES D

IRECTOR’S TO

TAL A

NN

UA

L NET

AD

JUSTED

LIFE INSU

RAN

CE U

NIT W

HO

LESALE PRO

DU

CTION

COV

ERAG

E

$187,000 and over$100,000

$137,000 to $186,999$

75,000$112,000 to $136,999

$50,000

$60,000 to $111,999$

25,000$48,000 to $59,999

$10,000

➣Independent N

ational Sales Directors receive $200,000 term

lifeinsurance coverage w

ith $100,000 accidental death anddism

emberm

ent coverage.

•• SSaalleess DDiirreeccttoorr DD

iissaabbiilliittyy AAww

aarrdd PPrrooggrraamm

➣U

nder certain circumstances, the C

ompany provides a one-year

short-term disability aw

ard for totally and permanently disabled

Sales Directors based on the Sales D

irector’s average monthly

tax-reportable comm

issions for the 12 months preceding the date of

total and permanent disability. A

s part of eligibility for the Disability

Award Program

, the Sales Director m

ust terminate her Independent

Sales Director and Independent Beauty C

onsultant Agreem

ents.

Note: T

his is a brief description of the Sales Director Term

Life Insurance A

ward and D

isabilityA

ward P

rograms. A

ll Sales Directors eligible for the Term

Life Insurance A

ward w

ill receive anotification of coverage and certificate providing the provisions of coverage each calendar yearupon qualification. F

or complete details and guidelines, please refer to the Term

Life

Insurance Aw

ard and Disability A

ward P

rogram brochure.

21

Independent Senior, Future Executive Senior,Executive Senior and Elite Executive SeniorSales DirectorAA

vveennuu

eess ooff IInnccoomm

ee• Product sales and reorders

➣O

n the Face – Skin care classes and facials➣

On the G

o – Quick and easy 15-m

inute appointments

➣O

nline – Sales through your Mary K

ay®

Personal Web Site

➣O

n Paper – Sales through catalogs and brochures (Preferred Custom

er Program

mailings, T

he Look, Beauty Book,etc.)➣

On W

ith the Show – Parties that preview

product sets (collection preview

s, open houses)• Team

-building comm

issions• Leadership

CCoomm

ppeennssaattiioonn

• CCoomm

mmiissssiioonn

SScchheedd

uullee

PERSON

AL U

NIT M

ON

THLY

NU

MBER O

FO

FFSPRING

WH

OLESA

LE PROD

UCTIO

NO

FFSPRING

UN

ITSCO

MM

ISSION

Tier 1 $4,000 to $11,999O

ne to Three

4.0%Four to Six

4.5%Seven or m

ore5.0%

Tier 2 $12,000 or more

One to T

hree5.0%

Four to Six5.5%

Seven or more

6.0%

CCoonn

tteesstt BBoonn

uuss ((eeffffeeccttiivvee tthh

rroouugghh

JJuunn

ee 3300,, 22000088))• A

Senior Sales Director is entitled to a contest bonus of $500 w

hen hernew

offspring Sales Director achieves any one or m

ore of the following:

➣O

n the Write Track

➣Fabulous 50s C

lub➣

Honors Society

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

22

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

H

23

• The Senior Sales D

irector must have a m

inimum

unit size of 50 at thetim

e her offspring Sales Director qualifies for each challenge to receive

the bonus. (If a Senior Sales Director debuts one or m

ore additionaloffspring Sales D

irectors one to three (1 – 3) months prior to w

hen heroffspring Sales D

irector reaches one of these achievements, her unit m

usthave at least 30 unit m

embers at the tim

e the offspring Sales Director

qualifies to receive the bonus.)

QQuu

aalliiffiiccaattiioonn

• Senior Sales Director:

You must have one to tw

o active first-line offspring Sales Directors.

• Future Executive Senior Sales D

irector: You m

ust have three to four active first-line offspring Sales Directors.

• Executive Senior Sales D

irector: You m

ust have five to seven active first-line offspring Sales Directors.

• Elite E

xecutive Senior Sales Director:

You must have at least eight active first-line offspring Sales D

irectors.

SSppeecciiaall CCoonn

ssiiddeerraattiioonnss

• Global Leadership D

evelopment Program

offspring sales units areincluded for purposes of calculating the num

ber of offspring units.

• A Senior Sales D

irector, Future Executive Senior Sales D

irector, Executive

Senior Sales Director or an E

lite Executive Senior Sales D

irector shall bepaid at the Tier 2 offspring com

mission rates for three m

onths after thedebut of a new

U.S. offspring sales unit. T

hereafter, the Senior, FutureE

xecutive Senior, Executive Senior or E

lite Executive Senior Sales

Director’s U

.S. personal sales unit’s monthly w

holesale productiondeterm

ines the tier at which offspring sales unit com

mission is earned.

• For the 13% personal team

comm

ission, an Executive Senior or E

liteE

xecutive Senior Sales Director m

ay substitute one new qualified

personal team m

ember for her personal $600 w

holesale Section 1production. (In this case, a total of six ordering personal team

mem

bers,one of w

hom is new

with $600 or greater w

holesale Section 1production, is required to earn the 13%

comm

ission.)

2524 Independent National Sales Director *

QQuu

aalliiffiiccaattiioonn

• Independent Elite E

xecutive Senior Sales Directors m

ust personallycom

municate their N

ational Sales Director goal/plan w

ith their SalesD

evelopment D

irector prior to entering the Independent National Sales

Director-in-Q

ualification(N

IQ) period.

• Elite E

xecutive Senior Sales Directors m

ust submit a signed N

IQ Letter

of Com

mitm

ent to the Com

pany at the start of their NIQ

period.

• In order to be considered for acceptance into the NIQ

program, an

Independent Elite E

xecutive Senior Sales Director m

ust have a total ofeither 18 or 20 offspring Independent Sales D

irectors having one of thefollow

ing configurations:

➣OO

ppttiioonn 11 (effective through Jan. 1, 2008)

• (12/6) 12 first-line offspring Sales Directors, six of w

hom are

Senior Sales Directors; or

• (11/7) 11 first-line offspring Sales Directors, seven of w

hom are

Senior Sales Directors; or

• (10/8) 10 first-line offspring Sales Directors, eight of w

hom are

Senior Sales Directors.

• At the end of the fourth m

onth of the National-in-Q

ualificationperiod, each of the 18 qualifying offspring units (12/6, 11/7 or10/8) and the N

ational-in-Qualification’s personal unit m

ust haveaccum

ulated at least $20,000 in unit wholesale production, A

ND

all of the same 18 units m

ust have at least 30 unit mem

bers. Am

aximum

of $8,000 per month in Section 1 unit w

holesaleproduction m

ay count toward the $20,000 total unit w

holesaleproduction requirem

ent.• International first- or second-line offspring Sales D

irectors/N

ational Sales Directors can count tow

ard the required 18qualifying offspring units described above. To qualify, at the endof the fourth m

onth of the National-in-Q

ualification period, theapplicable international offspring unit m

ust have 1) accumulated

at least 25 percent more unit w

holesale production than the total m

inimum

production requirements over a four-m

onthperiod as defined by the first- or second-line offspring SalesD

irector’s/National Sales D

irector’s home country A

ND

2) atleast the m

inimum

number of unit m

embers required to

initially debut as a Sales Director w

ithin the home country.

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

H

A m

aximum

of two tim

es the monthly m

inimum

Section 1 unitw

holesale production requirements in the applicable hom

ecountry per m

onth may count tow

ard the total unit wholesale

production requirement.

• Each of the first-line offspring Sales D

irectors will be required to

meet the four-m

onth NIQ

qualification requirements, and each

Senior Sales Director m

ust have at least one offspring SalesD

irector that will be required to m

eet the four-month N

IQqualification requirem

ents as outlined on Page 23.➣

OOppttiioonn

22• (12/3/8) 12 first-line offspring Sales D

irectors, three of whom

areSenior Sales D

irectors and a total of eight second-line offspringSales D

irectors; or• (11/3/9) 11 first-line offspring Sales D

irectors, three of whom

areSenior Sales D

irectors and a total of nine second-line offspringSales D

irectors; or• (10/3/10) 10 first-line offspring Sales D

irectors, three of whom

are Senior Sales Directors and a total of 10 second-line offspring

Sales Directors.

• In each of the four consecutive qualifying months, the first-line

Sales Directors including the N

IQ’s personal unit m

ust have acom

bined total of at least $100,000 in unit wholesale production.

The N

IQ’s personal unit can contribute up to $20,000 unit

wholesale production of the $100,000 in each of the four

qualifying months. U

nit wholesale production in excess of

$100,000 will carry over for one calendar m

onth. • T

he second-line units must have a com

bined total of at least$50,000 in unit w

holesale production in each of the fourqualifying m

onths. All unit w

holesale production in excess of$50,000 w

ill carry over for one calendar month.

• Each of the 20 qualifying units (12/8, 11/9 or 10/10) is perm

ittedto fall below

the minim

um unit w

holesale production requirement

of $4,000 (or the minim

um unit production requirem

ent of theirhom

e countries, in the case of international offspring units) onetim

e during the four-month qualifying period.

• Each of the 20 qualifying units (12/8, 11/9 or 10/10) must have at

least 30 unit mem

bers (or the minim

um unit m

embers based on

their home country requirem

ents, in the case of internationaloffspring units) at the end of the fourth m

onth of the NIQ

period.• A

ny additional first- or second-line Sales Directors above the

required number m

ay also contribute to the required wholesale

production.

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

H

*An Independent N

ational Sales Director is an independent contractor, not an em

ployee ofM

ary Kay Inc., and w

ill not be treated as an employee for federal tax purposes or otherw

ise.

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

HN

AT

IO

NA

L

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

• International offspring production (IOP) on first- or second-line

offspring Sales Directors/N

ational Sales Directors can count tow

ardU

.S. Sales Directors w

ho are entering into NIQ

. IOP is calculated

based on a percentage of the amount first- or second-line offspring

Sales Directors

/ National Sales D

irectors in foreign markets do

above (or below) the m

inimum

production requirements as

defined by their home countries (i.e., actual local production ÷

localm

inimum

unit production requirement = %

of minim

um unit production

x U.S. m

inimum

unit production = production credit in U.S.dollars).

Exam

ple calculation: 125 basic units ÷100 basic units = 1.25 x$4,000 U

.S. = $5,000 U.S.

• Each of the first-line offspring Sales D

irectors and second-lineoffspring Sales D

irectors will be required to m

eet the four-month

NIQ

qualification requirements and each Senior Sales D

irector must

have at least one offspring Sales Director that w

ill be required to meet

the four-month N

IQ qualification requirem

ents as outlined above.

AAddddiittiioonn

aall QQuu

aalliiffiiccaattiioonn• T

he National-in-Q

ualification period is four consecutive months.

• You must be eligible to participate in the Fam

ily Security Program. T

heFam

ily Security Program provides protection for N

SDs

and their families

through life insurance, plus valuable retirement and disability benefits to

further secure the future of the NSD

who elects to participate and her

family.➣

You must debut as an N

SD before your 60th birthday and

remain an N

SD for a m

inimum

of five years to qualify fornorm

al or early retirement benefits.

➣If you debut as an N

SD on or after your 60th birthday, and

before your 65th birthday, and remain an N

SD for a m

inimum

of five years, you may qualify for late retirem

ent benefits.➣

You may elect to retire after 15 years of N

SD service and qualify

for normal retirem

ent benefits. • A

fter one year of NSD

service, you may be eligible for

disability benefits or death benefits at a reduced percentage.• W

hen minim

um requirem

ents to debut as an Independent National

Sales Director have been m

et, appointment is at the C

ompany’s sole

discretion after review by the N

SD D

ebut Review

Board. Appointm

ent isbased on several factors (e.g., M

ary Kay im

age, ethics, integrity andloyalty to the C

ompany, the program

s and the marketing plan).

Note: T

his information is intended to provide a nontechnical sum

mary of the Fam

ily Security Program

afforded to participating Independent National Sales D

irectors. The actual term

s and conditionsof the F

amily Security P

rogram are contained in the program

document “M

ary Kay Inc. F

amily

Security Program

.” In the event of any conflict between the program

document and this

information, the program

document shall prevail.

26

CCoomm

ppeennssaattiioonn

• PPeerrssoonn

aall tteeaamm ccoomm

mmiissssiioonn

ooff 44%%,, 99%%

oorr 1133%%For the 13%

personal team com

mission, a N

ational Sales Director does

not have any personal activity requirements, but is still required to have

at least five personal team m

embers each place m

inimum

$200 wholesale

Section 1 orders.

• SSaalleess DDiirreeccttoorr ppeerrssoonn

aall uunn

iitt vvoolluumm

ee ccoommmm

iissssiioonn ooff 1133%%

• NNaattiioonn

aall SSaalleess DDiirreeccttoorr CC

oommmm

iissssiioonn

➣N

SD personal unit volum

e comm

ission of 10%

▲A

n NSD

may elect to keep her personal unit at the tim

e she debutsor form

a personal unit at a later date in order to developadditional first-line offspring units. She w

ill earn a 10% N

SDcom

mission on her personal unit’s w

holesale volume in

addition to a 13% Sales D

irector comm

ission on that unit’sw

holesale production.

IInnddeeppeenn

ddeenntt NN

aattiioonnaall SSaalleess DD

iirreeccttoorr CCoomm

mmiissssiioonn

SScchheedduu

lleeBA

SED O

N CO

MBIN

ED

NSD

M

ON

THLY W

HO

LESALE PU

RCHA

SE VO

LUM

ECO

MM

ISSION

FFiirrsstt--lliinneeoffspring sales units

9%SSeeccoonndd--lliinnee

offspring sales units4%

TThhiirrdd--lliinnee

offspring sales units 2%

➣FF

iirrsstt--lliinnee nn

eeww ooffffsspp

rriinngg SSaalleess DD

iirreeccttoorr BBoonn

uuss

Bonuses will be paid for the developm

ent of Sales Directors from

NSD

’spersonal unit according to the follow

ing schedule:

NSD

BON

US

At tim

e of offspring Sales Director’s debut

$5,000A

t annual anniversary of same unit’s debut

when offspring Sales D

irector generatesw

holesale production of $60,000or m

ore within last 12 m

onths $1,000

▲To be eligible for the first-line new

offspring Sales Director Bonus,

the NSD

must have qualified to earn the first-line offspring bonus

at the time of the offspring Sales D

irector’s debut.

27

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

H

NNSSDD

SSttaarr CCoonn

ssuullttaann

tt BBoonn

uuss

• Independent National Sales D

irectors are entitled to a $3,000 Star Consultant

Bonus for their first 100 Star Consultants and each additional accum

ulated 100Star C

onsultants developed from her Star C

onsultant Pool. “Star Consultant Pool”

means an N

SD’s personal unit and her unaffiliated* first-, second- and third-line

offspring sales units. Star Consultant guidelines apply.

Special Note: In the case of an offspring N

SD, Star C

onsultants in the offspring NSD

’s area, who

were previously in the Senior N

SD’s Star C

onsultant Pool will count for both the

Senior NSD

and the new N

SD during the Star C

onsultant Contest Q

uarter thatthe debut takes place and the next Star C

onsultant Quarter.

TToopp 1100 UUnn

aaffffiilliiaatteedd FFoouu

rrtthh LL

iinnee aann

dd BBeeyyoonn

dd SSaalleess DDiirreeccttoorr CC

oommmm

iissssiioonn

• A 2%

comm

ission calculated on the combined m

onthly wholesale purchase

volume of N

SD’s offspring Sales D

irectors that are unaffiliated* fourth line andbeyond. “Top 10” m

eans the monthly ranking 1-10 of N

SD’s unaffiliated* fourth

line and beyond offspring sales units based on monthly w

holesale purchasevolum

e.

GGrraann

dd 55 CC

oonntteesstt BB

oonnuu

ss ((eeffffeecct tiivvee tthhrroouu

gghh JJuu

nnee 3300,, 22000088))

• A N

ational Sales Director is entitled to a contest bonus of $1,000 w

hen an unaffiliated U

.S. Sales Director in her area achieves any one or m

ore of thefollow

ing:

➣C

adillac qualification or requalification

➣H

igher Circle of A

chievement or C

ircle of Excellence than the previous year

(payable with July com

missions received in A

ugust)

➣O

n the Write Track

➣Fabulous 50s C

lub

➣H

onors Society

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

H

..

..

..

..

..

.

NNSS

DD MM

oottiivv

aattiioo

nn AA

cccc

oouu

nntt

A special allow

ance is paid to NSD

s to help defray some of the expenses related to

prizes, awards, new

sletters, telephone calls, etc., which are associated w

ith an NSD

’sactivity w

ith her unaffiliated fourth-line Sales Directors and beyond. T

his allowance

is determined at the end of June and paid in July of the sam

e year according to thefollow

ing schedule. Only unaffiliated offspring units from

the United States and

Global Leadership D

evelopment Program

are considered for this account.

NU

MBER O

F FOU

RTH LIN

E AN

D BELO

WPAYM

ENT

1 to 20$1,200

21 to 50$2,400

51 to 100$3,600

100 +$12,000

RE

WA

RD

S

• Eligible to w

ear National Sales D

irector suit

• National N

ews N

otes

• NSD

bracelet

• Annual luxury trip for self and spouse

• Earn the use of a C

adillac or choose the Cash C

ompensation option at a rate of

$1,400 per month in lieu of the car

• Family Security Program

• Opportunity to personally recruit in designated international m

arkets

• Term Life Insurance Aw

ard Program

• Disability Aw

ard Program

• Great Futures Program

• NSD

Tree of Life pin

• Limousine service at Sem

inar Awards N

ight

2829

*An affiliated U

.S. Sales Director, offspring unit, line and/or area is one that is directly associated

with another active offspring N

ational Sales Director.

QQuu

aalliiffiiccaattiioonn

•• Senior National Sales D

irector: You m

ust have one offspring National Sales D

irector in any lineregardless of debut sequence.

•• Executive N

ational Sales Director:

You must have at least three offspring N

ational Sales Directors from

anyunaffiliated line w

ho debuted as Independent National Sales D

irectorssubsequent to your debut and for w

hom you are eligible to receive the

Offspring N

SD D

evelopment Bonus.

CCoomm

ppeennssaattiioonn

•• SSeenniioorraanndd EE

xxeeccuuttiivvee NNaattiioonnaall SSaalleess DD

iirreeccttoorr CCoomm

mmiissssiioonn SScchheeddu ullee

Senior and Executive National Sales D

irector comm

ission is payable asfollow

s:

NSD

COM

MISSIO

N

First-line offspring Sales Director

who becom

es an NSD

9%Second-line offspring Sales D

irectorw

ho becomes an N

SD4%

Third-line offspring Sales D

irectorw

ho becomes an N

SD2%

These personal unit com

missions are payable regardless of debut

sequence, even if the offspring NSD

debuted prior to the Senior NSD

.Likew

ise, it does not matter if another N

SD exists betw

een the SeniorN

SD and the offspring N

SD.

•• OOffffsspp

rriinngg NN

SSDD DD

eevveellooppmm

eenntt BB

oonnuu

ss SScchheedd

uullee

➣W

hen a new offspring N

SD is developed out of any line of the N

SD’s

unaffiliated area, the Senior NSD

is entitled to a $10,000 Offspring

NSD

Developm

ent Bonus at the time of the new

offspring NSD

’s debut,and annually thereafter for so long as the Senior N

SD’s A

greement is in

effect.

➣T

here shall only be one (1) recipient of this bonus. For purposes ofdeterm

ining the recipient of this bonus, the NSD

of the new offspring

NSD

four (4) months prior to the new

offspring NSD

’s debut receivesthe bonus.

Independent Elite Executive National Sales DirectorQQ

uuaalliiffiiccaattiioonn

•E

lite Executive N

ational Sales Director:

You must have at least five offspring N

ational Sales Directors from

anyline w

ho debuted as Independent National Sales D

irectors subsequent toyour debut and for w

ho you are eligible to receive the Offspring N

SDD

evelopment Bonus.

CCoomm

ppeennssaattiioonn

In addition to the National, Senior N

ational and Executive N

ational SalesD

irector compensation and rew

ards, an Elite E

xecutive National Sales

Director also is eligible to receive the follow

ing compensation and rew

ards:

➣EE

lliittee EExxeeccuu

ttiivvee NNaattiioonn

aall SSaalleess DDiirreeccttoorr FF

oouurrtthh

LLiinn

ee CCoomm

mmiissssiioonn

SScchheedduu

lleeT

he Elite Executive National Sales D

irector Com

mission is payable on the

wholesale unit production of all fourth-line offspring sales units:

ELITE EXECUTIV

E N

SD CO

MM

ISSION

All fourth-line offspring sales units

2%

RE

WA

RD

S

• Elite N

SD D

iamond Bee pin

NA

TI

ON

AL

S

AL

ES

D

IR

EC

TO

R

CA

RE

ER

P

AT

HN

AT

IO

NA

L

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

PA

TH

3031

Independent Senior National Sales Director andIndependent Executive National Sales Director

Advance CA

RE

ER

P

AT

H

CO

MM

IS

SI

ON

S

AT

–A

–G

LA

NC

E

3534

UUnn

iitt DDeevveellooppmm

eenntt BBoonn

uuss

A Sales D

irector is entitled to a Sales Director

Unit D

evelopment Bonus of $300 for each m

onth three or four qualified*new

unit mem

bers are added to her Sales Unit OO

RR a Sales Director U

nitD

evelopment Bonus of $500 for each m

onth five or more qualified* new

unitm

embers are added to her Sales U

nit.

SSaalleess DDiirreeccttoorr PP

eerrssoonnaall TTeeaamm

--BBuuiillddiinn

gg BBoonnuu

ssA

Sales Director is entitled

to a $100 Sales Director Personal Team

-Building Bonus for each “qualified”new

personal team m

ember added to her Sales U

nit.

SSttaarr CCoonn

ssuullttaann

tt BBoonnuu

ssA

Sales Director is entitled to a Star C

onsultant Bonus based on the num

ber of Star Consultants in her Sales U

nit in a contest quarter.

NU

MBER O

F STAR CO

NSU

LTAN

TSBO

NU

S

5 to 9$300

10 to 14$400

15 +$500

■IN

DE

PE

ND

EN

T S

EN

IO

R S

ALE

S D

IR

EC

TO

R, F

UT

UR

EE

XE

CU

TIV

E S

EN

IO

R S

ALE

S D

IR

EC

TO

R, E

XE

CU

TIV

ES

EN

IO

R S

ALE

S D

IR

EC

TO

R A

ND

E

LIT

E E

XE

CU

TIV

ES

EN

IO

R S

ALE

S D

IR

EC

TO

R C

OM

MIS

SIO

N S

CH

ED

ULE

:

PERSON

AL U

NIT M

ON

THLY

NU

MBER O

FO

FFSPRING

WH

OLESA

LE PROD

UCTIO

NO

FFSPRING

UN

ITSCO

MM

ISSION

Tier 1 $4,000 to $11,999O

ne to Three

4.0%Four to Six

4.5%Seven or m

ore5.0%

Tier 2 $12,000 or more

One to T

hree5.0%

Four to Six5.5%

Seven or more

6.0%

*A qualified new

personal team m

ember is one w

hose Independent Beauty Consultant A

greement

and a minim

um of $600 in w

holesale Section 1 orders are postmarked w

ithin the contest quarter,and contest credit is any com

bination of at least $1,800 in wholesale Section 1 orders, plus

qualified new personal team

mem

bers.

Career Path Commissions At-A-Glance■

PE

RS

ON

AL T

EA

M C

OM

MIS

SIO

N S

CH

ED

ULE

FO

R A

CT

IV

E S

EN

IO

R C

ON

SU

LTA

NT

S A

ND

A

BO

VE

:

COM

MISSIO

N O

N CO

MBIN

EDQ

UA

LIFICATION

WH

OLESA

LE ORD

ERS

You have five or more personal team

mem

bers who

each place minim

um $200 w

holesale Section 1 orders in a m

onth, and you personally place a $600 w

holesale Section 1 order in the same m

onth13%

5 or more active personal team

mem

bers9%

1 - 4 active personal team m

embers

4%

■T

EA

M-B

UILD

IN

G B

ON

US

A $50 team

-building bonus will be paid to Star R

ecruiters, Team Leaders, Future

Independent Sales Directors and Sales D

irectors-in-Qualification for each

qualified personal team m

ember beginning w

ith the fourth personal team m

ember.

■IN

DE

PE

ND

EN

T S

ALE

S D

IR

EC

TO

R

CO

MM

IS

SIO

N S

CH

ED

ULE

:

SSaalleess DDiirreeccttoorr UU

nniitt VV

oolluumm

ee CCoomm

mmiissssiioonn

SScchheedd

uullee

MO

NTH

LY WH

OLESA

LE PROD

UCTIO

NCO

MM

ISSION

$4,000 or more

13%$0 to $3,999

9%

UUnn

iitt VVoolluu

mmee BB

oonnuu

ss SScchheedd

uullee

MO

NTH

LY UN

IT WH

OLESA

LE PURCH

ASE V

OLU

ME

BON

US

$5,000 to $5,999.99$500

$6,000 to $6,999.99$600

$7,000 to $7,999.99$700

$8,000 to $8,999.99$800

$9,000 to $9,999.99$900

$10,000 to $10,999.99$1,000

$11,000 to $11,999.99$1,100

$12,000 to $12,999.99$1,200

$13,000 to $13,999.99$1,300

$14,000 to $14,999.99$1,400

$15,000 to $15,999.99$1,500

For each $1,000 increase in monthly U

nit Wholesale Purchase Volum

e, thebonus increases by $100.

➣Please note, this bonus schedule is theoretically infinite beyond the initial$5,000 to $5,999.99 tier. T

hat is, although the $50,000 to $50,999.99 tieris not reflected in the exam

ple, you would still receive a $5,000 U

nitVolum

e Bonus if your monthly U

nit Wholesale Purchase Volum

e fellbetw

een $50,000 and $50,999.99.

3736 ■

IN

DE

PE

ND

EN

T N

AT

IO

NA

L S

ALE

S D

IR

EC

TO

R, S

EN

IO

RN

AT

IO

NA

L S

ALE

S D

IR

EC

TO

R, E

XE

CU

TIV

E N

AT

IO

NA

LS

ALE

S D

IR

EC

TO

R A

ND

E

LIT

E E

XE

CU

TIV

E N

AT

IO

NA

LS

ALE

S D

IR

EC

TO

R C

OM

MIS

SIO

N S

CH

ED

ULE

:

BASED

ON

MO

NTH

LY WH

OLESA

LE PROD

UCTIO

NN

SDO

F EACH

FIRST-LINE O

FSPRING

COM

MISSIO

NFFiirrsstt--lliinnee

units who are unaffiliated w

ith an offspring N

SD and those affiliated w

ith an offspring NSD

9%SSeeccoonndd--lliinnee

units who are unaffiliated w

ith an offspring N

SD and those affiliated w

ith an NSD

offspring 4%

TThhiirrdd--lliinnee

units who are unaffiliated w

ith an offspringN

SD and those affiliated w

ith an offspring NSD

2%TT

oopp 1100 ffoouurrtthh--lliinneeunits and beyond w

ho are unaffiliatedw

ith an offspring NSD

2%

• Personal team com

mission of 4%

, 9% or 13%

• Sales Director personal unit volum

e comm

ission of 13%

• NSD

personal unit volume com

mission of 10%

• Elite E

xecutive National Sales D

irector fourth-line comm

ission of 2%

➣FF

iirrsstt--lliinnee nn

eeww ooffffsspp

rriinngg SSaalleess DD

iirreeccttoorr BBoonn

uuss

Bonuses will be paid for the developm

ent of Sales Directors from

NSD

’s personalunit according to the follow

ing schedule:

NSD

BON

US

At tim

e of offspring Sales Director’s debut

$5,000A

t annual anniversary of same unit’s debut

when offspring Sales D

irector generatesw

holesale production of $60,000or m

ore within last 12 m

onths $1,000

OOffffsspprriinn

gg NNSSDD

DDeevveellooppmm

eenntt BB

oonnuu

ss $10,000 annual bonus on the developm

ent of NSD

offspring

NNSSDD

SSttaarr CCoonn

ssuullttaann

tt BBoonn

uuss

A $3,000 bonus w

ill be paid on NSD

’s personal unit and unaffiliated* first-,second- and third-line offspring sales units per Star C

onsultant contest quarter for the first 100 Star C

onsultants and each additional accumulated

100 Star Consultants.

*An affiliated U

.S. Sales Director, offspring unit, line and/or area is one that is directly associated

with another active offspring N

ational Sales Director.

Advance A

PR

OV

EN

PR

OG

RA

M

TO

A

CA

RE

ER

C

AR

/

CA

SH

CO

MP

EN

SA

TI

ON

OP

TI

ON

CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

4140

• You may contribute up to $4,000 in personal w

holesale Section 1production tow

ard the total $18,000 requirement.

• Your team m

ust contribute a minim

um of $14,000 w

holesale Section 1production tow

ard the total $18,000 requirement.

• You must have a m

inimum

of $4,000 combined personal/team

wholesale

Section 1 production each month of the qualification period w

hilem

aintaining five or more active personal team

mem

bers.

• You must be active.

MMaaiinn

tteennaann

ccee RReeqquu

iirreemmeenn

ttss

• Team m

aintenance starts the month follow

ing qualification andcontinues through the requalification period as long as m

inimum

maintenance requirem

ents are met.

• Minim

um of $4,500 net adjusted team

wholesale production per m

onth.

• Minim

um of five active personal team

mem

bers

• Rem

ain current on monies ow

ed the Com

pany

• Receive $600 car program

credit toward the required $4,500 net

adjusted team w

holesale production per month for each new

qualifiedpersonal team

mem

ber.

• If production falls below the m

inimum

monthly m

aintenance require-m

ent, you may be allow

ed to maintain the rew

ard as long as you havefive or m

ore active personal team m

embers and steady im

provement is

made tow

ard the minim

um m

onthly production requirement.

PPeerrffoorrmm

aannccee AA

ccccoouunn

tt aanndd MM

oommeenn

ttuumm

MMoonn

tthh

• Performance account is utilized to offset production shortfalls below

them

onthly minim

um m

aintenance requirement of $4,500 net adjusted

team w

holesale production per month, and does not count tow

ard on-target status or requalification requirem

ents.

• Performance account is established after qualification w

ith $4,500w

holesale balance.

• YYoouurr ffiirrsstt mm

oonntthh

aafftteerr qquuaalliiffiiccaattiioonn

iiss yyoouurr mm

oommeenn

ttuumm

mmoonn

tthh,,

and all production in this month, including car program

credit, will

be doubled.

• Each m

onth production in excess of the required $4,500 adds to theperform

ance account; less than the required $4,500 depletes theperform

ance account.

• Maxim

um perform

ance account balance that can be carried forward

from m

onth to month is $13,500.

CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

Grand Achiever ProgramR

EW

AR

DS

•• IInnddeeppeenn

ddeenntt BB

eeaauuttyy CC

oonnssuu

llttaannttss

➣C

onsultant Career C

ar or Cash C

ompensation*

➣G

rand Achiever pin

•• IInnddeeppeenn

ddeenntt SSaalleess DD

iirreeccttoorrss

➣C

ash Com

pensation

➣G

rand Achiever pin

OOnn--TT

aarrggeett

• Five or more active personal team

mem

bers

• $4,000 combined personal/team

wholesale Section 1 production in a

calendar month. (R

emem

ber it takes an average of $4,500 over fourm

onths to achieve the required $18,000 production requirement.)

• You must be active.

• These requirem

ents must be m

et each month to be considered on-target.

(A team

mem

ber who is the spouse of an Independent Beauty C

onsultant/Independent Sales D

irector or a team m

ember of one of your personal team

mem

bers will not count tow

ard Grand A

chiever Program qualification

requirements, requalification requirem

ents or maintenance requirem

ents.)

QQuu

aalliiffiiccaattiioonn

• You may qualify as a G

rand Achiever in one, tw

o, three or four months,

based on when you achieve the follow

ing:

➣$18,000 com

bined personal/team w

holesale Section 1 production

➣12 active personal team

mem

bers

*To select the Grand A

chiever Career C

ar reward, you m

ust meet the requirem

ents of the Career

Car Insurance Program

. In addition, at the time of qualification you m

ust possess a valid U.S.

driver’s license and either a Social Security card or Individual Taxpayer Identification Num

ber(IT

IN). Independent Beauty C

onsultants in Guam

, Puerto Rico or the U

.S. Virgin Islands w

illreceive C

ash Com

pensation only and will not have the option to choose the use of a G

randA

chiever Career C

ar.

• The C

ash Com

pensation payment am

ount is determined by the G

randA

chiever Cash C

ompensation Paym

ent Schedule below and paid in

that month’s com

mission check that is received in the m

iddle of thefollow

ing month.

GGrraann

dd AA

cchhiieevveerr CC

aasshh CC

oommpp

eennssaattiioonn

PPaayymm

eenntt SScchh

eedduu

llee (am

ounts subject to change)M

ON

THLY N

ET AD

JUSTED

TEAM

MO

NTH

LY CASH

WH

OLESA

LE PROD

UCTIO

NCO

MPEN

SATION

$4,500 or more

$375.00$3,500 to $4,499

$281.25$2,500 to $3,499

$187.50$1,500 to $2,499

$93.75$0 to $1,499

-0-

Note: C

ash Com

pensation payments begin w

ith the comm

ission check received in the second month

following qualification.

RReeqquu

aalliiffiiccaattiioonn

• Independent Beauty Consultant

➣R

equalification starts the 21st month after the qualification m

onth.

➣Sam

e as qualification rules.

➣$600 car program

credit counts toward required production.

➣Perform

ance account balance does not count toward on-target

status or requalification requirements.

➣Perform

ance account balance following requalification is

re-established after qualification with a $4,500 w

holesale balance oorr

the current performance account balance, w

hichever is greater.

• Independent Sales Director

➣R

equalification starts the sixth quarter of possession for Premier

Club/C

adillac.▲

The sixth quarter of possession is the calendar quarter that

includes the 21st month after qualification.

➣For Prem

ier Club/C

adillac qualification requirements, see Pages 47

and 51.▲

If Premier C

lub/Cadillac qualification requirem

ents are not met

by the end of your eighth quarter of possession, you may qualify

for Grand A

chiever status (Cash C

ompensation only) by using

the last four months of your seventh and eighth quarters.

4342

CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

GGrraann

dd AAcchh

iieevveerr CCaarreeeerr CC

aarr ((CCoonn

ssuullttaann

ttss oonnllyy))

• Grand A

chiever Career C

ar (Pontiac Vibe) is in lieu of C

ashC

ompensation.

• If you choose the Grand A

chiever Career C

ar, you will be eligible to start

Premier C

lub qualification six months follow

ing your Grand A

chieverqualification m

onth or by achieving $75,000 in net adjusted unitw

holesale production within tw

o consecutive calendar quarters.

• Co-op lease paym

ent is due if the performance account is depleted and

production falls short of the required $4,500 net adjusted teamw

holesale production.

• The co-op lease paym

ent amount is determ

ined by the Grand A

chieverC

o-op Lease Payment Schedule below

and deducted from the follow

ingm

onth’s comm

ission check.

• If the comm

ission check is not sufficient to cover the co-op leasepaym

ent, the balance must be paid to the branch by the 21st of the

current month.

• Return of a C

areer Car prior to the end of the m

aintenance period may

impact future eligibility and rew

ards under the Career C

ar Program.

GGrraann

dd AAcchh

iieevveerr CCoo--oopp LL

eeaassee PPaayymm

eenntt SScchh

eedduullee

(amounts subject to change)

MO

NTH

LY NET A

DJU

STED TEA

MM

ON

THLY LEA

SE W

HO

LESALE PRO

DU

CTION

CO-O

P PAYMEN

T

$4,500 or more

-0-$3,500 to $4,499

$93.75

$2,500 to $3,499$187.50

$1,500 to $2,499$281.25

$0 to $1,499$375.00

CCaasshh

CCoomm

ppeennssaattiioonn

OOppttiioonn

((CCoonn

ssuullttaann

ttss aanndd SSaalleess DD

iirreeccttoorrss))

• Monthly C

ash Com

pensation is in lieu of the Grand A

chiever Career C

ar.

• Full Cash C

ompensation is paid each m

onth unless the performance

account is depleted and production falls short of the required $4,500 netadjusted team

wholesale production per m

onth.

CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

• If production falls below the m

inimum

quarterly maintenance require-

ment, you m

ay be allowed to m

aintain the reward as long as steady

improvem

ent is made tow

ard the minim

um quarterly production

requirements.

GGrraann

dd AA

cchhiieevveerr CC

aarreeeerr CCaarr

• Co-op lease paym

ent is due if production falls below $19,500 net

adjusted unit wholesale production per calendar quarter.

• The prior calendar quarter’s net adjusted unit w

holesale production andthe G

rand Achiever C

areer Car U

nit Co-O

p Lease Payment Schedule

below determ

ine the monthly co-op lease paym

ent amount due for the

current quarter.

• If the comm

ission check is not sufficient to cover the co-op leasepaym

ent, the balance must be paid to M

ary Kay Inc. by the 21st of the

current month.

• Return of a C

areer Car prior to the end of the m

aintenance period may

impact future eligibility and rew

ards under the Career C

ar Program.

GGrraann

dd AA

cchhiieevveerr CC

aarreeeerr CCaarr UU

nniitt CC

oo--oopp LLeeaassee

PPaayymm

eenntt SScchh

eedduu

llee (am

ounts subject to change)Q

UA

RTERLY NET A

DJU

STED U

NIT

MO

NTH

LY LEASE

WH

OLESA

LE PROD

UCTIO

NCO

-OP PAYM

ENT

$19,500 and over-0-

$16,500 to $19,499$ 37.50

$14,500 to $16,499$ 75.00

$12,500 to $14,499$112.50

$10,500 to $12,499$187.50

$8,000 to $10,499$262.50

$0 to $7,999$375.00

CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

4544 CC

aarr PPrrooggrraamm

CCrreeddiitt

• Receive $600 car program

credit for each new qualified personal team

mem

ber.

➣Initial order w

ith the Com

pany must be $600 or m

ore in wholesale

Section 1 products, and must be received and accepted by the

Com

pany in the same or follow

ing calendar month that the

Independent Beauty Consultant A

greement w

as received andaccepted by the C

ompany.

• Car program

credit applies toward the required m

aintenancerequirem

ents and requalification requirements.

IInndd

eeppeenn

ddeenn

tt SSaalleess DDiirreeccttoorr UU

nniitt MM

aaiinntteenn

aannccee OO

ppttiioonn

• The G

rand Achiever U

nit Maintenance O

ption is available toIndependent Sales D

irectors who are in m

aintenance of their Grand

Achiever rew

ard and does not effect Grand A

chiever reward options, on-

target requirements, qualification requirem

ents or requalificationrequirem

ents.

• Once the Independent Sales D

irector switches to the G

rand Achiever

Unit M

aintenance Program, she w

ill not be eligible to switch back to the

Grand A

chiever Team M

aintenance Program.

• Independent Sales Directors w

ho are qualified or qualify as Grand

Achievers w

ill be allowed to sw

itch at the beginning of a calendarquarter from

the Grand A

chiever Team M

aintenance Program to the

Grand A

chiever Unit M

aintenance Program.

• Once the Independent Sales D

irector switches to the G

rand Achiever

Unit M

aintenance Program, the perform

ance account is no longerapplicable. T

he Independent Sales Director’s net adjusted unit w

holesaleproduction during the quarter w

ill determine the am

ount of anym

onthly co-op lease payments or cash com

pensation payments in the

following quarter.

• Minim

um of $20,000 net adjusted unit w

holesale production percalendar quarter.

• Production in excess of $20,000 in each quarter will carry forw

ard to thenext quarter to offset any production shortfall below

the quarterlym

aintenance requirements.

• $600 car program credit counts tow

ard required production.

• Rem

ain current on monies ow

ed the Com

pany.

CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

CCaasshh

CCoomm

ppeennssaattiioonn

OOppttiioonn

• Cash C

ompensation is paid each m

onth of a quarter based on theprevious quarter net adjusted unit w

holesale production and the Grand

Achiever C

ash Com

pensation Unit Paym

ent Schedule below.

GGrraann

dd AA

cchhiieevveerr CC

aasshh CC

oommpp

eennssaattiioonn

PPaayymm

eenntt SScchh

eedduu

llee (am

ounts subject to change)Q

UA

RTERLY NET A

DJU

STED U

NIT

MO

NTH

LY CASH

W

HO

LESALE PRO

DU

CTION

COM

PENSATIO

N

$19,500 and over$375.00

$16,500 to $19,499$337.50

$14,500 to $16,499$300.00

$12,500 to $14,499$262.50

$10,500 to $12,499$187.50

$8,000 to $10,499$112.50

$0 to $7,999-0-

NNeett AA

ddjjuu

sstteedd TT

eeaamm WW

hhoolleessaallee PP

rroodduuccttiioonn

• Grand A

chiever net adjusted team w

holesale production includespersonal and team

production, plus car program credit, plus any

amounts borrow

ed from the perform

ance account balance, less anychargebacks.

NNeett AA

ddjjuu

sstteedd UU

nniitt WW

hhoolleessaallee PP

rroodduuccttiioonn

• A

n Independent Sales Director’s net adjusted unit w

holesale productionincludes unit w

holesale production, plus car program credit, less any

chargebacks.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

47

Premier Club Program

RE

WA

RD

S

• Premier C

lub Career C

ar* or Cash C

ompensation*

• Premier C

lub pin

OOnn--TT

aarrggeett•

$24,000 net adjusted unit wholesale production in one calendar quarter.

QQuu

aalliiffiiccaattiioonn•

$48,000 net adjusted unit wholesale production w

ithin two consecutive

calendar quarters.E

XA

MPLE

S:CC

aalleennddaarr QQ

uuaarrtteerr 11

QQuu

aarrtteerr 22TToottaall

Net W

holesale $24,000+

$24,000=

$48,000N

et Wholesale $21,000

+$27,000

=$48,000

•$600 car program

credit counts toward required production.

➣A

n Independent Sales Director m

aintaining Grand A

chiever statusdriving a C

areer Car w

ill be eligible to begin Premier C

lub qualificationsix m

onths following her G

rand Achiever qualification m

onth or may

qualify for the Premier C

lub by achieving $75,000 in net adjusted unitw

holesale production within tw

o consecutive calendar quarters.

MMaaiinn

tteennaann

ccee•

Maintenance starts the quarter follow

ing qualification and continuesthrough your requalification period as long as m

inimum

maintenance

requirements are m

et.•

Minim

um of $24,000 net adjusted unit w

holesale production percalendar quarter.

•E

xcess production from the tw

o qualifying quarters over $48,000 will

carry forward to the next quarter to offset any production shortfall below

the quarterly maintenance requirem

ents.•

Production in excess of $24,000 in each quarter will carry forw

ardto the

next quarter to offset any production shortfall below the quarterly

maintenance requirem

ents.•

Rem

ain current on monies ow

ed the Com

pany.

*To select the Premier C

lub Career C

ar reward, you m

ust meet the requirem

ents of the Career C

arInsurance Program

. In addition, at the time of qualification you m

ust possess a valid U.S. driver’s

license and either a Social Security card or Individual Taxpayer Identification Num

ber (ITIN

).Independent Sales D

irectors in Guam

, Puerto Rico or the U

.S. Virgin Islands w

ill receive Cash

Com

pensation only and will not have the option to choose the use of a Prem

ier Club C

areer Car.

46 CO

NS

UL

TA

NT

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

CCaasshh

CCoomm

ppeennssaattiioonn

OOppttiioonn

• Cash C

ompensation is in lieu of the Prem

ier Club C

areer Car.

• Cash C

ompensation is paid each m

onth of a quarter based on the pre-vious quarter net adjusted unit w

holesale production and the Premier

Club C

ash Com

pensation Payment Schedule below

.

PPrreemmiieerr CC

lluubb CC

aasshh CC

oommpp

eennssaattiioonn

PPaayymm

eenntt SScchh

eedduu

llee (am

ounts subject to change)

QU

ARTERLY N

ET AD

JUSTED

UN

ITM

ON

THLY CA

SHW

HO

LESALE PRO

DU

CTION

COM

PENSATIO

N

$23,000 and over$500

$20,000 to $22,999$450

$17,000 to $19,999$400

$14,000 to $16,999$350

$11,000 to $13,999$250

$8,000 to $10,999$150

$0 to $7,999-0-

Note:C

ash Com

pensation payments begin w

ith the final comm

ission check received in the fourthm

onth following qualification.

RReeqquu

aalliiffiiccaattiioonn

• $48,000 net adjusted unit wholesale production during the sixth and

seventh quarters of possession or during the seventh and eighth quartersof possession.

• $600 car program credit counts tow

ard required production.

• If a Sales Director has not qualified by the end of her eighth quarter of

possession, but did achieve $24,000 net adjusted unit wholesale pro-

duction in her eighth quarter (i.e., is on-target), she may com

bine hereighth and ninth quarters to requalify.

Note: Q

uarter of possession starts the second quarter following qualification.

•$600 car program

credit counts toward required production.

•M

ary Kay Inc. w

ill pay all or part of the monthly leasing costs or C

ashC

ompensation for eight calendar quarters, depending upon the net

adjusted unit wholesale production from

the prior quarter.

• If production falls below the m

inimum

quarterly maintenance

requirement, you m

ay be allowed to m

aintain the reward as long as

steady improvem

ent is made tow

ard the minim

um quarterly

production requirements.

PPrreemmiieerr CC

lluubb CC

aarreeeerr CCaarr

• Premier C

lub Career C

ar is in lieu of Cash C

ompensation.

• Co-op lease paym

ent is due if production falls below $23,000 net

adjusted unit wholesale production per calendar quarter.

• The prior calendar quarter’s net adjusted unit w

holesale production andthe Prem

ier Club C

areer Car C

o-op Lease Payment Schedule below

determine the m

onthly co-op lease payment am

ount due for the currentquarter.

• If the comm

ission check is not sufficient to cover the co-op leasepaym

ent, the balance must be paid to the branch by the 21st of the

current month.

• Return of a C

areer Car prior to the end of the m

aintenance period may

impact future eligibility and rew

ards under the Career C

ar Program.

PPrreemmiieerr CC

lluubb CC

aarreeeerr CCaarr

CCoo--oopp LL

eeaassee PPaayymm

eenntt SScchh

eedduullee

(amounts subject to change)

QU

ARTERLY N

ET AD

JUSTED

UN

ITM

ON

THLY LEA

SEW

HO

LESALE PRO

DU

CTION

CO-O

P PAYMEN

T

$23,000 and over-0-

$20,000 to $22,999$

50$17,000 to $19,999

$100$14,000 to $16,999

$150$11,000 to $13,999

$250$8,000 to $10,999

$350$0 to $7,999

$500

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

4948

CCaarr PP

rrooggrraamm CC

rreeddiitt

• Receive $600 car program

credit for each new qualified personal team

mem

ber.

➣Initial order w

ith the Com

pany must be $600 or m

ore in wholesale

Section 1 products, and it must be received and accepted by the

Com

pany in the same or follow

ing calendar month that the

Independent Beauty Consultant A

greement w

as received andaccepted by the C

ompany.

• Car program

credit applies toward the required qualification require-

ments, m

aintenance requirements and requalification requirem

ents.

..

..

..

..

..

..

NNee

tt AAdd

jjuuss

tteedd

UUnn

iitt WWhh

oollee

ssaa

llee PP

rroo

dduu

ccttiioo

nn

An Independent Sales D

irector’s net adjusted unit wholesale production

includes unit wholesale production, plus car program

credit, less anychargebacks.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

Pink Cadillac Program

RE

WA

RD

S

• Cadillac C

areer Car* or C

ash Com

pensation

• Cadillac pin

OOnn--TT

aarrggeett

• $48,000 net adjusted unit wholesale production in one calendar quarter.

QQuu

aalliiffiiccaattiioonn

• $96,000 net adjusted unit wholesale production w

ithin two consecutive

calendar quarters.E

XA

MPLE

S:CC

aalleennddaarr QQ

uuaarrtteerr 11

QQuu

aarrtteerr 22TToottaall

Net W

holesale $48,000 + $48,000 = $96,000N

et Wholesale $40,000 + $56,000 = $96,000

• $600 car program credit counts tow

ard required production.

MMaaiinn

tteennaann

ccee

• Maintenance starts the quarter follow

ing qualification and continuesthrough your requalification period as long as m

inimum

maintenance

requirements are m

et.

• Minim

um of $48,000 net adjusted unit w

holesale production percalendar quarter.

• Excess production from

the two qualifying quarters over $96,000 w

illcarry forw

ard to the next quarter to offset any production shortfall belowthe quarterly m

aintenance requirements.

• Production in excess of $48,000 in each quarter will carry forw

ard to thenext quarter to offset any production shortfall below

the quarterlym

aintenance requirements.

*To select the Cadillac C

areer Car rew

ard, you must m

eet the requirements of the C

areer Car

Insurance Program. In addition, at the tim

e of qualification you must possess a valid U

.S. driver’slicense and either a Social Security card or Individual Taxpayer Identification N

umber (IT

IN).

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

5150

• Rem

ain current on monies ow

ed the Com

pany.

• $600 car program credit counts tow

ard required production.

• Mary K

ay Inc. will pay all or part of the m

onthly leasing costs or Cash

Com

pensation for eight calendar quarters, depending upon theIndependent Sales D

irector’s net adjusted unit wholesale production

from the prior quarter.

• If production falls below the m

inimum

quarterly maintenance

requirement, you m

ay be allowed to m

aintain the award as long as

steady improvem

ent is made tow

ard the minim

um quarterly

production requirements.

CCaaddiillllaacc CC

aarreeeerr CCaarr

• Cadillac is in lieu of C

ash Com

pensation.

• Co-op lease paym

ent is due if production falls below $45,000 net

adjusted unit wholesale production per calendar quarter.

• The prior calendar quarter’s net adjusted unit w

holesale production andthe C

adillac Co-op Lease Paym

ent Schedule below determ

ine them

onthly co-op lease payment am

ount due for the current quarter.

• If the comm

ission check is not sufficient to cover the co-op leasepaym

ent, the balance must be paid to the branch by the 21st of the

current month.

• Return of a C

areer Car prior to the end of the m

aintenance period may

impact future eligibility and rew

ards under the Career C

ar Program.

CCaadd

iillllaacc CCoo--oopp

LLeeaassee PP

aayymmeenn

tt SScchheedd

uullee

(amounts subject to change)

QU

ARTERLY N

ET AD

JUSTED

UN

ITM

ON

THLY CO

-OP

WH

OLESA

LE PROD

UCTIO

NLEA

SE PAYMEN

T

$45,000 and over-0-

$42,000 to $44,999$ 90

$39,000 to $41,999$180

$35,000 to $38,999$270

$31,000 to $34,999$450

$27,000 to $30,999$630

$0 to $26,999$900

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

CCaasshh

CCoomm

ppeennssaattiioonn

OOppttiioonn

• C

ash Com

pensation is in lieu of the Cadillac.

• Cash C

ompensation is paid each m

onth of a quarter based on theprevious quarter’s net adjusted unit w

holesale production and theC

adillac Cash C

ompensation Paym

ent Schedule below.

CCaadd

iillllaacc CCaasshh

CCoomm

ppeenn

ssaattiioonn PP

aayymmeenn

tt SScchheedd

uullee

(amounts subject to change)

QU

ARTERLY N

ET AD

JUSTED

UN

ITM

ON

THLY CA

SHW

HO

LESALE PRO

DU

CTION

COM

PENSATIO

N

$45,000 and over$900

$42,000 to $44,999$810

$39,000 to $41,999$720

$35,000 to $38,999$630

$31,000 to $34,999$450

$27,000 to $30,999$270

$0 to $26,999-0-

Note: C

ash Com

pensation payments begin w

ith the final comm

ission check received in the fourthm

onth following qualification.

RReeqquu

aalliiffiiccaattiioonn

• $96,000 net adjusted unit wholesale production during the sixth and

seventh quarters of possession or during the seventh and eighth quartersof possession.

• $600 car program credit counts tow

ard required production.

• If a Sales Director has not qualified by the end of her eighth quarter of

possession, but did achieve $48,000 net adjusted unit wholesale

production in her eighth quarter (i.e., is on-target), she may com

bine hereighth and ninth quarters to requalify.

Note: Q

uarter of possession starts the second quarter following qualification.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

5352

NO

TE

S

CCaarr PP

rrooggrraamm CC

rreeddiitt

• Receive $600 car program

credit for each new qualified personal team

mem

ber. ➣

Initial order with the C

ompany m

ust be $600 or more in w

holesaleSection 1 products, and it m

ust be received and accepted by theC

ompany in the sam

e or following calendar m

onth that theIndependent Beauty C

onsultant Agreem

ent was received and

accepted by the Com

pany.

• Car program

credit applies toward the required qualification require-

ments, m

aintenance requirements and requalification requirem

ents.

..

..

..

..

..

..

NNee

tt AAdd

jjuuss

tteedd

UUnn

iitt WWhh

oollee

ssaa

llee PP

rroo

dduu

ccttiioo

nn

An Independent Sales D

irector’s net adjusted unit wholesale production

includes unit wholesale production, plus car program

credit, less anychargebacks.

SA

LE

S

DI

RE

CT

OR

C

AR

EE

R

CA

R/

CA

SH

C

OM

PE

NS

AT

IO

N

OP

TI

ON

5455