a proven for achieving program success...

career path and career car programThis is a brief description of the incentive programs in effect as of Oct. 1, 2009. The Company reserves the right to alter, modify or change the commissions, bonuses or any terms of the incentive programs described herein.

©2009 Mary Kay Inc. Rev. 10/09

Advance a proven program for achieving success

5 6 7 81 2 3 4 career path at-a-glance

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

$750,$1,200or$1,800• BeeligibleforTermLifeInsurance

AwardandDisabilityAwardPrograms• EarntheuseofaCareerCarorselect

CashCompensationoption

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-lineandbeyondunitsunaffiliatedwithNSDoffspring

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

•Earn$10,000annualbonusfordevelop-mentofnewNSDoffspring

•ReceiveaStarConsultantBonusof$3,000forevery100StarConsultantsinyourunaffiliatedfirst-,second-andthird-lineoffspringunits

•EarntouseofapinkCadillacwithachoiceofoptionsorselecttheCashCompensationoption

•EnrollintheFamilySecurityandGreatFuturesPrograms

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

• GrandAchieverCareerCar• PremierClubCareerCar(SalesDirector)• PinkCadillacCareerCar(SalesDirector

andNSD)• OrselecttheCashCompensationoption

inlieuofaCareerCar

n as an independent beauty consultant you could:

• Earnprofitsbasedonretailsales• Earnrewardstohelpyoubuildyour

business

n as a star consultant you could:

• Receivespecialrecognition• Earnfabulousprizes

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

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

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 ConsultantsbrochureorlogontotheMaryKayInTouch®Website.

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

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

†SalestaxisrequiredonthesuggestedretailvalueofSection1products.

beauty consultant career path

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beauty consultant career path

4

Independent Beauty Consultant*Avenues of Income •Productsalesandreorders

rewards•MaryKay®pin•Applause®magazine

•EligibletoattendSeminarandCareerConference•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes

n business guidelines• An Independent Beauty Consultant is considered “active” in the month a minimum $200

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 $400 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, 2009, her Earned Discount Privilege will apply until May 31, 2009. She will be eligible for the Earned Discount Privilege as long as she maintains "active" status.

*AnIndependentBeautyConsultantisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.

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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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Senior Beauty ConsultantAvenues of Income•Productsalesandreorders•Team-buildingcommissions

Compensation•4%personalteamcommission

rewards•1ActivePersonalTeamMember:EligibletowearSeniorBeauty

Consultantpinenhancer•2ActivePersonalTeamMembers:Eligibletoorderredjacket•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes

Requirements•1to2activepersonalteammembers•Youmustbeactive.

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

personal team commissions

AllactiveSeniorBeautyConsultantsandaboveareeligibletoearna4%,9%or 13%personalteamcommissiononthewholesaleordersplacedbytheirpersonalteammembers.

➣Whenyouhaveonetofouractivepersonalteammembers,youcanearna 4%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.

➣Whenyouhavefiveormoreactivepersonalteammembers,youcanearna 9%commissiononteammembers’combinedwholesaleSection1ordersinanycalendarmonth.

➣Youcanincreaseyourcommissionto13%whenyouplaceapersonalminimum$600wholesaleSection1orderinthesamemonththatatleastfivepersonalteammemberseachplaceminimum$200wholesaleSection1orders.(SpecialconsiderationsforExecutiveSeniorSalesDirectors,EliteExecutiveSeniorSalesDirectors[seePage22]andNationalSalesDirectors[seePage26].)

beauty consultant career pathbeauty consultant career path

9

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

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

Compensation•4%personalteamcommission•Team-buildingbonus

rewards•EligibletowearStarTeamBuilderpinenhancer•Eligibletowearredjacket

•Receive$50rebateonthepurchaseoftheofficialredjacketavailableonlyfromMaryKayInc.

•EligibletoqualifyforquarterlyStarConsultantrecognitionandprizes



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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

➣ SeePage13fornewrequirementspriortoenteringSalesDirector-in-QualificationeffectiveJan.1,2010.

•EligibletoqualifyforGrandAchieverstatus(GrandAchieverCareerCarorCashCompensationoption)

Requirements•8ormoreactivepersonalteammembers•Youmustbeactive.

*AchievingFutureIndependentSalesDirectorrecognitionstatusdoesnotguaranteeyouwillbecomeanIndependentSalesDirector.InordertobecomeanIndependentSalesDirector,youmustsuccessfullycompletetheIndependentSalesDirectorqualificationrequirementsassetforthbytheCompany.ASalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.

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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)



The following requirements are effective Jan. 1, 2010:

Prior to Entering the Sales Director-in-Qualification Program InordertosubmitacommitmentformtotheCompanystatingtheintenttobeginIndependentSalesDirector-in-Qualification(DIQ)Program,anIndependentBeautyConsultantmust:•Beactive.•HaveachievedStarConsultantstatusinthepriorStarConsultantcontestquarter

ORhaveplacedaminimum$1,800inwholesaleSection1orderspostmarkedduringthecurrentStarConsultantcontestquarter.

•Have10ormoreactivepersonalteammembersinthemonthpriortofirstmonthofqualification.➣ Tocounttowardthisrequirement,noneoftheteammemberscanbeanyof

thefollowing: sthespouseoftheDIQ sthespouseofanyBeautyConsultant sacurrentDIQorcurrentSalesDirector sapersonalteammembersubmittinghercommitmentforminthesame

monthastheDIQ ➣ Ifoneofthepersonalteammemberssubmitsacommitmentform

inthesamemonthastheDIQ,theDIQwillneedtoreplaceherandhaveatleast11activepersonalteammembersinthemonthpriortothefirstmonthofqualification.

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

compliancewiththetermsoftheIndependentBeautyConsultantAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).

•SubmitanonlinecommitmentformavailableontheMaryKayInTouch®Websitefromthe8ththroughthe10thofeverymonth.Bysubmittinganonlinecommitmentform,theDIQwillknowimmediatelyifshehasbeenacceptedintotheSalesDirector-in-Qualificationprogram.Orsubmitanoriginalcommitmentformpostmarkedonorbeforethe1stofthemonth.(Example:IfaDIQwishestobeginSalesDirector-in-QualificationProgramJune1,hercommitmentformshouldbepostmarkedsometimeinMay,oratthelatest,June1.)

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

AcceptanceintotheSalesDirector-in-QualificationprogramisattheCompany’ssolediscretion.

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

The following requirements are effective through December 2009:

Prior to Entering the Sales Director-in-Qualification ProgramInordertosubmitacommitmentformtotheCompanystatingtheintenttobeginIndependentSalesDirector-in-Qualification(DIQ)Program,anIndependentBeautyConsultantmust:•Beactive.•Haveeightormoreactivepersonalteammembersthemonthpriortothefirstmonthof

qualification.➣ Tocounttowardthisrequirement,noneoftheteammemberscanbeanyofthe

following: sthespouseoftheDIQ sthespouseofanyBeautyConsultant sacurrentDIQorcurrentSalesDirector sapersonalteammembersubmittinghercommitmentforminthesamemonth

astheDIQ ➣Ifoneofthepersonalteammemberssubmitsacommitmentforminthe

samemonthastheDIQ,theDIQwillneedtoreplaceherandhaveatleastnineactivepersonalteammembersinthemonthpriortothefirstmonthofqualification.

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sales director career pathsales director career path

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The following two options for completing Sales Director-in-Qualification requirements are available for DIQs who debut through Jan. 1, 2010:

DIQ Qualification Requirements Option 1•ADIQmayqualifyasanIndependentSalesDirectorinone,two,threeorfourmonths,

basedonwhensheachievesthefollowing:➣ $16,000cumulativeunitwholesaleproduction➣ 30totalactiveunitmembers

sTocounttowardthisrequirement,noneoftheDIQ’steammemberscanbeanyofthefollowing: — thespouseoftheDIQ — thespouseofanyBeautyConsultant — acurrentDIQorcurrentSalesDirector

➣ $4,000minimumwholesaleunitproductioneachmonth,eveniftheDIQhasalreadyreached$16,000cumulativewholesaleproduction

•TheDIQ’sunitmembersmustcontributeatleast$12,000towardthe$16,000wholesaleproductionrequirement.

•ADIQmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe$16,000cumulativeunitwholesaleproductionduringthequalificationperiod.

•ShouldtheDIQ’squalifyingunitfailtoreach30activemembersand/ortherequiredunitwholesaleproductionsalesamounts,theDIQhasnotqualifiedandmustsubmitanewcommitmentformtobeginqualificationagain(immediately,ifshechoosesandiseligible).TheDIQ’steammembers’recruitswillremainintheparentunit.

DIQ Qualification Requirements Option 2 •ADIQmayqualifyasanIndependentSalesDirectorinone,two,threeorfourmonths,

basedonwhensheachievesthefollowing:➣ $18,000cumulativeunitwholesaleproduction➣ 24totalactiveunitmembers

sTheDIQisconsideredoneofthe24activeunitmembers➣ Atleast10ofthe24totalactiveunitmembersmusthaveaminimum$600

cumulativepersonalwholesaleproductionduringthequalificationperiod sTheDIQisnotconsideredoneofthe10unitmembers

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

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

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

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

Additional Qualification (Option 1 and Option 2)•ThequalifyingunitiscomprisedoftheDIQandherpersonalteammembers,regardless

oftheirunitaffiliation(Exception:personalteammemberswhoalreadymaybeSalesDirectorsorinqualificationtobecomeaSalesDirector).Teammembers’recruitswhoseIndependentBeautyConsultantAgreementsareacceptedbytheCompanyonorafterthefirstdayofthemonthinwhichtheDIQbeginsSalesDirectorqualificationwillbemembersofthenewqualifyingunit.Teammembers’recruitswhoseIndependentBeautyConsultantAgreementswereacceptedbytheCompanypriortoherfirstmonthofqualificationremainintheparentunit.

•Spousesdonotcounttowardanyprogramexceptunitproductionandcommission.OnceonespousebecomesaSalesDirector,theotherspouseisnoteligibletobecomeaSalesDirector.TheSalesDirectorcommissionwillbepaidonthespouse’sorders.

•SalesDirectorisanindependentcontractorandnotanemployeeofMaryKayInc.TheSalesDirectorpositionisappointedatthesolediscretionofMaryKayInc.

The DIQ understands:•TheimportanceofattendingtheNewIndependentSalesDirectorEducationweek

designatedforherdebutingclasswhenshecompletestheSalesDirector-in-Qualificationprogram.

•IntheeventanyoneplacesanorderforaStarterKitand/orproductonbehalfofaBeautyConsultant,thefollowingapplies:➣ThepersonplacingtheordermusthavetheBeautyConsultant’sconsentpriorto

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

fundspriortoplacingtheorder.•TakingapostdatedcheckandplacinganorderforaBeautyConsultantwillnotcount.•ABeautyConsultantsellinganyone’sinventoryotherthanherown,thenplacingan

order,willnotcount.•TheDIQcannotsellherinventorytoaBeautyConsultantandtakeher/hismoneyto

placeanordertoreplacetheDIQ’sinventory.•IftheDIQuseshercreditcardtopayforaBeautyConsultant’sorder,theDIQmusthave

alreadyreceivedthecashfromtheBeautyConsultantbeforetheorderismailed,phonedin,placedonlineordeliveredtothebranch.

•TheDIQcannotplaceanorderforaBeautyConsultantwithher/hispromisetopaytheDIQback.


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

$4,000ormore 13%$0to$3,999 9%

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Special Considerations•ShouldaDIQsubmitacommitmentformthreetimeswithina12-monthperiod(each

timefailingtomeettherequirementstocompletetheprocess),shewillreceivealetterexplainingshehasonemoreopportunitytocompletetherequirements(herfourth).Afterreceivingtheletter,shemaydecidewhethertomakethatfourthattemptimmediately,afewmonthslateroryearslater,eitherunderhercurrentoranyfutureBeautyConsultantnumbers.Ifshedoesnotcompletetherequirementsonthefourthattempt,shewillhavetofollowatwo-monthbuildingplanasoutlinedinthelettershereceived.

•Thetwo-monthbuildingrequirementswillstillapplyshouldshechoosetoterminateherIndependentBeautyConsultantAgreementandbecomeanIndependentBeautyConsultantagainatsomefuturedate.

•IndependentBeautyConsultantswhoreturnmerchandisetotheCompanyforrepurchasearenoteligibletorejoinMaryKayasanIndependentBeautyConsultant.

•Formoreinformation,logontotheMaryKayInTouch®Websiteandselect“DIQProgram”underResources.


*ASalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.

1918

➣ ASalesDirectorisentitledtoaSalesDirectorUnitDevelopmentBonusof$500foreachmonthfiveormorequalified*newunitmembersareaddedtoherSalesUnit.

➣TheSalesDirectorUnitDevelopmentBonusisearnedinthemonthinwhichtheappropriatenumberofnewqualifiedunitmembers’initialminimum$600wholesaleSection1ordersarereceivedandacceptedbytheCompany.

• Star Consultant Bonus

➣ ASalesDirectorisentitledtoaStarConsultantBonusbasedonthenumberofStarConsultants**inherSalesUnitinacontestquarter:

number of star consultants** bonus

5to9 $30010to14 $40015+ $500

➣ InthecaseofanOffspringUnit,StarConsultantsintheOffspringUnitwillcountforboththeSeniorSalesDirectorandthenewSalesDirectorduringtheStarConsultantcontestquarterthatthedebuttakesplace.

Contest Bonus (effective through June 30, 2010)•ASalesDirectorisentitledtoacontestbonusof$1,000whensheachieves:

➣Cadillacqualificationorrequalification➣HigherCircleofAchievementorCircleofExcellencethanthepreviousyear(payable

withJulycommissionsreceivedinAugust).Forexample,ifyour2010unitcirclelevelishigherthanyour2009unitcirclelevel,you’llearnthebonus.

➣OntheMove➣Fabulous50sClub➣HonorsSociety

New Independent Sales Director Program Bonus•AnewSalesDirectorisentitledtoa$1,000NewSalesDirectorProgramBonuswhen

sheachieveseachNewSalesDirectorProgramchallenge.

• 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


*AqualifiedunitmemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesaleSection1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

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

Wellness Award Bonus Program •Aspecialcashawarddesignedtohelpoffsetexpensesassociatedwiththeneedsor

activitiesthatcontributetophysicalwellnessalthoughitcanbeusedinanywayyouchoose.➣ QualificationfortheWellnessAwardBonusisbasedonthepreviouscalendaryear’s

totalannualnetadjustedSection1unitwholesaleproduction.OnecheckwillbepaidinJanuaryofeachyear.SalesDirectorsmustqualifyeachyearforthisaward.

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

$60,000to$124,999 $750$125,000to$186,999 $1,200$187,000andabove $1,800

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•EligibletoqualifyforquarterlyStarSalesDirectorrecognitionandyearlongconsistency

prizes•EligibleforWellnessAwardBonusProgram•EligibleforTermLifeInsuranceAwardandDisabilityAwardPrograms•EligibletoattendLeadershipConference•EligibletoqualifyforTopSalesDirectorTrip•Opportunitytopersonallyrecruitindesignatedinternationalmarkets

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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 $4,000 wholesale per month.

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

independent sales director term life insurance award and disability award programs

• Sales Director Term Life Insurance Award Program

➣PaidlifeinsuranceisawardedtoqualifiedSalesDirectorsonJan.1ofeachyearbaseduponthepreviouscalendaryear’sannualnetadjustedunitwholesaleproduction.SalesDirectorsmustqualifyeachyearforthisaward.

➣Asanaward,thefairmarketvalueofSalesDirectorTermLifeInsuranceisincludedonIRSForm1099asincome.

sales director’s total annual net adjusted life insurance unit wholesale production coverage

$187,000andover $100,000$137,000to$186,999 $75,000$112,000to$136,999 $50,000$60,000to$111,999 $25,000$48,000to$59,999 $10,000

➣IndependentNationalSalesDirectorsreceive$200,000termlifeinsurancecoveragewith$100,000accidentaldeathanddismembermentcoverage.

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

disabilityawardfortotallyandpermanentlydisabledSalesDirectorsbasedontheSalesDirector’saveragemonthlytax-reportablecommissionsforthe12monthsprecedingthedateoftotalandpermanentdisability.AspartofeligibilityfortheDisabilityAwardProgram,theSalesDirectormustterminateherIndependentSalesDirectorandIndependentBeautyConsultantAgreements.

Note: This is a brief description of the Sales Director Term Life Insurance Award and Disability Award Programs. All Sales Directors eligible for the Term Life Insurance Award will receive a notification of coverage and certificate providing the provisions of coverage each calendar year upon qualification. For complete details and guidelines, please refer to the Term Life Insurance Award and Disability Award Program brochure.

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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$4,000to$11,999 OnetoThree 4.0% FourtoSix 4.5% Sevenormore 5.0%Tier2$12,000ormore OnetoThree 5.0% FourtoSix 5.5% Sevenormore 6.0%

Contest Bonus (effective through June 30, 2010)•ASeniorSalesDirectorisentitledtoacontestbonusof$500whenhernewoffspring

SalesDirectorachievesanyoneormoreofthefollowing:➣OntheMove➣Fabulous50sClub➣HonorsSociety

•TheSeniorSalesDirectormusthaveaminimumunitsizeof50atthetimeheroffspringSalesDirectorqualifiesforeachchallengetoreceivethebonus.(IfaSeniorSalesDirectordebutsoneormoreadditionaloffspringSalesDirectorsonetothree[1–3]monthspriortowhenheroffspringSalesDirectorreachesoneoftheseachievements,herunitmusthaveatleast30unitmembersatthetimetheoffspringSalesDirectorqualifiestoreceivethebonus.)

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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•GlobalLeadershipDevelopmentProgramoffspringsalesunitsareincludedforpurposes

ofcalculatingthenumberofoffspringunits.•ASeniorSalesDirector,FutureExecutiveSeniorSalesDirector,ExecutiveSeniorSales

DirectororanEliteExecutiveSeniorSalesDirectorshallbepaidattheTier2offspringcommissionratesforthreemonthsafterthedebutofanewU.S.offspringsalesunit.Thereafter,theSenior,FutureExecutiveSenior,ExecutiveSeniororEliteExecutiveSeniorSalesDirector’sU.S.personalsalesunit’smonthlywholesaleproductiondeterminesthetieratwhichoffspringsalesunitcommissionisearned.

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


2524

Independent National Sales Director*Qualification•IndependentEliteExecutiveSeniorSalesDirectorsmustpersonallycommunicatetheir

NationalSalesDirectorgoal/planwiththeirSalesDevelopmentDirectorpriortoenteringtheIndependentNationalSalesDirector-in-Qualification(NIQ)period.

•EliteExecutiveSeniorSalesDirectorsmustsubmitasignedNIQLetterofCommitmenttotheCompanyatthestartoftheirNIQperiod.

•InordertobeconsideredforacceptanceintotheNIQprogram,anIndependentEliteExecutiveSeniorSalesDirectormusthaveatotalof20offspringIndependentSalesDirectorshavingoneofthefollowingconfigurations:➣(12/3/8)12first-lineoffspringSalesDirectors,threeofwhomareSeniorSales

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

Directorsandatotalofninesecond-lineoffspringSalesDirectors;or➣(10/3/10)10first-lineoffspringSalesDirectors,threeofwhomareSeniorSales

Directorsandatotalof10second-lineoffspringSalesDirectors.➣Ineachofthefourconsecutivequalifyingmonths,thefirst-lineSalesDirectors

includingtheNIQ’spersonalunitmusthaveacombinedtotalofatleast$100,000inunitwholesaleproduction.TheNIQ’spersonalunitcancontributeupto$20,000unitwholesaleproductionofthe$100,000ineachofthefourqualifyingmonths.Unitwholesaleproductioninexcessof$100,000willcarryoverforonecalendarmonth.

➣Thesecond-lineunitsmusthaveacombinedtotalofatleast$50,000inunitwholesaleproductionineachofthefourqualifyingmonths.Allunitwholesaleproductioninexcessof$50,000willcarryoverforonecalendarmonth.

➣Eachofthe20qualifyingunits(12/8,11/9or10/10)ispermittedtofallbelowtheminimumunitwholesaleproductionrequirementof$4,000(ortheminimumunitproductionrequirementoftheirhomecountries,inthecaseofinternationaloffspringunits)onetimeduringthefour-monthqualifyingperiod.

➣Eachofthe20qualifyingunits(12/8,11/9or10/10)musthaveatleast30unitmembers(ortheminimumunitmembersbasedontheirhomecountryrequirements,inthecaseofinternationaloffspringunits)attheendofthefourthmonthoftheNIQperiod.

➣Anyadditionalfirst-orsecond-lineSalesDirectorsabovetherequirednumbermayalsocontributetotherequiredwholesaleproduction.

➣Internationaloffspringproduction(IOP)onfirst-orsecond-lineoffspringSalesDirectors/NationalSalesDirectorscancounttowardU.S.SalesDirectorswhoareenteringintoNIQ.IOPiscalculatedbasedonapercentageoftheamountfirst- orsecond-lineoffspringSalesDirectors/NationalSalesDirectorsinforeignmarketsdoabove(orbelow)theminimumproductionrequirementsasdefined bytheirhomecountries(i.e., actual local production ÷ local minimum unit production requirement = % of minimum unit production x U.S. minimum unit production = production credit in U.S. dollars).

Examplecalculation:125basicunits÷100basicunits=1.25x$4,000U.S.=$5,000U.S.

➣Eachofthequalifyingfirst-lineoffspringSalesDirectorsandsecond-lineoffspringSalesDirectorswillberequiredtomeetthefour-monthNIQqualificationrequirements,andeachqualifyingSeniorSalesDirectormusthaveatleastoneoffspringSalesDirectorthatwillberequiredtomeetthefour-monthNIQqualificationrequirementsasoutlinedabove.

Additional Qualification•TheNational-in-Qualificationperiodisfourconsecutivemonths.•YoumustbeeligibletoparticipateintheFamilySecurityProgram.TheFamilySecurity

ProgramprovidesprotectionforNSDsandtheirfamiliesthroughlifeinsurance,plusvaluableretirementanddisabilitybenefitstofurthersecurethefutureoftheNSDwhoelectstoparticipateandherfamily.➣YoumustdebutasanNSDbeforeyour60thbirthdayandremainanNSDfora

minimumoffiveyearstoqualifyfornormalorearlyretirementbenefits.➣IfyoudebutasanNSDonorafteryour60thbirthdayandbeforeyour65th

birthday,andremainanNSDforaminimumoffiveyears,youmayqualifyforlateretirementbenefits.

➣Youmayelecttoretireafter15yearsofNSDserviceandqualifyfornormalretirementbenefits.

sAfteroneyearofNSDservice,youmaybeeligiblefordisabilitybenefitsordeathbenefitsatareducedpercentage.

•WhenminimumrequirementstodebutasanIndependentNationalSalesDirectorhavebeenmet,appointmentisattheCompany’ssolediscretionafterreviewbytheNSDDebutReviewBoard.Appointmentisbasedonseveralfactors(e.g., Mary Kay image, ethics, integrity and loyalty to the Company, the programs and the marketing plan).

national sales director career pathnational sales director career path

*AnIndependentNationalSalesDirectorisanindependentcontractor,notanemployeeofMaryKayInc.,andwillnotbetreatedasanemployeeforfederaltaxpurposesorotherwise.

Special ConsiderationsDuringanyofthefourconsecutivequalifyingmonths,shouldthecombinedunitwholesaleproductionoftheNIQ’sfirst-lineoffspringSalesDirectorsand/orsecond-lineoffspringSalesDirectorsfallbelowtheminimumunitwholesaleproductionrequirement,theNIQhasnotqualifiedandmustexittheNIQprogram.Inordertobeconsideredforre-entryintotheNIQprogram,anIndependentEliteExecutiveSeniorSalesDirectormust:•PersonallycommunicatewiththeSalesDevelopmentDirectorassociatedwithher

Seminarareaherplantore-entertheNIQprogram.•BeingoodstandingwiththeCompany(whichincludes,butisnotlimitedto,compliance

withthetermsoftheIndependentBeautyConsultantAgreementandIndependentSalesDirectorAgreementandpayinginfullanyaccountsreceivableshemayhavewiththeCompanyundercurrentorpreviousBeautyConsultantnumbers).

•Haveatotalof20offspringIndependentSalesDirectorshavingoneoftheconfigurationsoutlinedunder“AdditionalQualification”(seePage25).

•InthemonthpriortoresubmittingasignedNIQLetterofCommitmenttotheCompany,eachofthe20qualifyingunits(12/8,11/9or10/10)musthaveatleast30unitmembersandaminimumunitwholesaleproductionrequirementof$4,000.

•Re-entryintoNIQisattheCompany’ssolediscretion.

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 program document “Mary Kay Inc. Family Security Program.” In the event of any conflict between the program document and this information, the program document shall prevail.

Compensation•Personal team commission of 4%, 9% or 13%

Forthe13%personalteamcommission,aNationalSalesDirectordoesnothaveanypersonalactivityrequirements,butisstillrequiredtohaveatleastfivepersonalteammemberseachplaceminimum$200wholesaleSection1orders.

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

➣NSDpersonalunitvolumecommissionof10% sAnNSDmayelecttokeepherpersonalunitatthetimeshedebutsorforma

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

26

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

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

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

nsd bonus

Debut bonus:PaidattimeofoffspringSalesDirector’sdebut $5,000*

s PaidonlyonceperindividualSalesDirector

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

s Tobeeligibleforthe$1,000first-lineSalesDirectoroffspringbonusbasedonwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000first-lineSalesDirectoroffspringbonusforthedebutofthesameoffspringSalesDirector.

NSD Star Consultant Bonus•IndependentNationalSalesDirectorsareentitledtoa$3,000StarConsultantBonusfor

theirfirst100StarConsultantsandeachadditionalaccumulated100StarConsultantsdevelopedfromherStarConsultantPool.“StarConsultantPool”meansanNSD’spersonalunitandherunaffiliated*first-,second-andthird-lineoffspringsalesunits.StarConsultantguidelinesapply.

Special Note: In the case of an offspring NSD, Star Consultants in the offspring NSD’s area who were previously in the Senior NSD’s Star Consultant Pool will count for both the Senior NSD and the new NSD during the Star Consultant contest quarter that the debut takes place and the next Star Consultant Quarter.

27


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

Top 10 Unaffiliated Fourth-Line and Beyond Sales Director Commission•A2%commissioncalculatedonthecombinedmonthlywholesalepurchasevolumeof

NSD’soffspringSalesDirectorsthatareunaffiliated*fourth-lineandbeyond.“Top10”meansthemonthlyranking1–10ofNSD’sunaffiliated*fourthlineandbeyondoffspringsalesunitsbasedonmonthlywholesalepurchasevolume.

Grand 5 Contest Bonus (effective through June 30, 2010)•ANationalSalesDirectorisentitledtoacontestbonusof$1,000whenanunaffiliated

U.S.SalesDirectorinherareaachievesanyoneormoreofthefollowing:➣Cadillacqualificationorrequalification➣HigherCircleofAchievementorCircleofExcellencethanthepreviousyear(payable

withJulycommissionsreceivedinAugust)➣OntheMove➣Fabulous50sClub➣HonorsSociety

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

nsd motivation account

AspecialallowanceispaidtoNSDstohelpdefraysomeoftheexpensesrelatedtoprizes,awards,newsletters,telephonecalls,etc.,whichareassociatedwithanNSD’sactivitywithherunaffiliatedfourth-lineSalesDirectorsandbeyond.ThisallowanceisdeterminedattheendofJuneandpaidinJulyofthesameyearaccordingtothefollowingschedule.OnlyunaffiliatedoffspringunitsfromtheU.S.andGlobalLeadershipDevelopmentProgramareconsideredforthisaccount.

number of fourth line and below payment

1to20 $1,200 21to50 $2,400 51to100 $3,600 101+ $12,000

rewards•EligibletowearNationalSalesDirectorsuit•National News Notes

•NSDbracelet•Eligibletoqualifyforannualluxurytripforselfandspouse•EarntheuseofaCadillacorchoosetheCashCompensationoptionatarateof$1,400

permonthinlieuofthecar•FamilySecurityProgram•Opportunitytopersonallyrecruitindesignatedinternationalmarkets•TermLifeInsuranceAwardProgram•DisabilityAwardProgram•GreatFuturesProgram•NSDTreeofLifepin•LimousineserviceatSeminarAwardsNight

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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➣ WhenanewoffspringNSDisdevelopedoutofanylineoftheNSD’sunaffiliated

area,theSeniorNSDisentitledtoa$10,000OffspringNSDDevelopmentBonusatthetimeofthenewoffspringNSD’sdebut,andannuallythereafterforsolongastheSeniorNSD’sAgreementisineffect.

➣ Thereshallonlybeone(1)recipientofthisbonus.Forpurposesofdeterminingtherecipientofthisbonus,theNSDofthenewoffspringNSDfour(4)monthspriortothenewoffspringNSD’sdebutreceivesthebonus.

Independent Elite Executive National Sales DirectorQualification• YoumusthaveatleastfiveoffspringNationalSalesDirectorsfromanylinewhodebuted

asIndependentNationalSalesDirectorssubsequenttoyourdebutandforwhoyouareeligibletoreceivetheOffspringNSDDevelopmentBonus.

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•WhenanIndependentNationalSalesDirectordebutsasaNationalSalesDirector

Emeritus,theIndependentBeautyConsultantsinherpersonalsalesunitaredispersedamongherfirst-lineSalesDirectors’units.TheydonotmoveupintoherIndependentSeniorNationalSalesDirectororSeniorSalesDirector’ssalesunit.Inaddition,anoffspringSalesDirectorofthedebutingNationalSalesDirectorEmerituswillnotreplacethedebutingNationalSalesDirectorEmeritusasafirst-lineoffspringsalesunitofherSeniorSalesDirectororSeniorNationalSalesDirector.

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

30 31


career path commissions at–a–glance

Advance

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

beauty consultants and above:

commission on combinedqualification wholesale orders

Youhavefiveormorepersonalteammemberswho eachplaceminimum$200wholesaleSection1 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

$4,000ormore 13%$0to$3,999 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.

➣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$4,000to$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.

34 35

*AqualifiedteammemberisonewhoseinitialorderwiththeCompanyis$600ormoreinwholesale Section1products,anditisreceivedandacceptedbytheCompanyinthesameorfollowingcalendar monththatherIndependentBeautyConsultantAgreementisreceivedandacceptedbytheCompany.

Offspring NSD Development Bonus

$10,000annualbonusonthedevelopmentofNSDoffspring

NSD Star Consultant Bonus

A$3,000bonuswillbepaidonNSD’spersonalunitandunaffiliated*first-,second-andthird-lineoffspringsalesunitsperStarConsultantcontestquarterforthefirst100StarConsultantsandeachadditionalaccumulated100StarConsultants.

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

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:Paidattimeofoffspring SalesDirector’sdebut $5,000 s PaidonlyonceperindividualSalesDirector

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

s Tobeeligibleforthe$1,000first-lineSalesDirectoroffspringbonusbased onwholesaleproduction,theNSDmusthavequalifiedtoearnthe$5,000 first-lineSalesDirectoroffspringbonusforthedebutofthesameoffspringSalesDirector.

36 37

career car / cash compensation option

Advance

Grand Achiever Program(Effective through October 2009)

rewards• Independent Beauty Consultants ➣GrandAchieverCareerCarorCashCompensation* ➣GrandAchieverkeychainpresentedatSeminar

• Independent Sales Directors ➣CashCompensation ➣GrandAchieverkeychainpresentedatSeminar

On-Target•Fiveormoreactivepersonalteammembers•$4,000combinedpersonal/teamwholesaleSection1productioninacalendarmonth.

(Remember,ittakesanaverageof$4,500overfourmonthstoachievetherequired$18,000productionrequirement.)

•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 qualification requirements, requalification requirements or maintenance requirements.)

Qualification•YoumayqualifyasaGrandAchieverinone,two,threeorfourmonths,basedonwhen

youachievethefollowing: ➣$18,000combinedpersonal/teamwholesaleSection1production ➣12activepersonalteammembers•Youmaycontributeupto$4,000inpersonalwholesaleSection1productiontowardthe

total$18,000requirement.•Yourteammustcontributeaminimumof$14,000wholesaleSection1production

towardthetotal$18,000requirement.

•Youmusthaveaminimumof$4,000combinedpersonal/teamwholesaleSection1productioneachmonthofthequalificationperiodwhilemaintainingfiveormoreactivepersonalteammembers.

•Youmustbeactive.

Maintenance Requirements•Teammaintenancestartsthemonthfollowingqualificationandcontinuesthroughthe

requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$4,500netadjustedteamwholesaleproductionpermonth•Minimumoffiveactivepersonalteammembers•RemaincurrentonmoniesowedtheCompany.•Receive$600carprogramcredittowardtherequired$4,500netadjustedteam

wholesaleproductionpermonthforeachnewqualifiedpersonalteammember.•Ifproductionfallsbelowtheminimummonthlymaintenancerequirement,youmaybe

allowedtomaintaintherewardaslongasyouhavefiveormoreactivepersonalteammembersandsteadyimprovementismadetowardtheminimummonthlyproductionrequirement.

Performance Account and Momentum Month•Performanceaccountisutilizedtooffsetproductionshortfallsbelowthemonthly

minimummaintenancerequirementof$4,500netadjustedteamwholesaleproductionpermonthanddoesnotcounttowardon-targetstatusorrequalificationrequirements.

•Performanceaccountisestablishedafterqualificationwith$4,500wholesalebalance.•Your first month after qualification is your momentum month,andallproductionin

thismonth,includingcarprogramcredit,willbedoubled.•Eachmonth,productioninexcessoftherequired$4,500addstotheperformance

account;lessthantherequired$4,500depletestheperformanceaccount.•Maximumperformanceaccountbalancethatcanbecarriedforwardfrommonthto

monthis$13,500.

Grand Achiever Career Car (Beauty Consultants only)•GrandAchieverCareerCarisinlieuofCashCompensation.•IfyouchoosetheGrandAchieverCareerCar,youwillbeeligibletostartPremier

ClubqualificationsixmonthsfollowingyourGrandAchieverqualificationmonthorbyachieving$75,000innetadjustedunitwholesaleproductionwithintwoconsecutivecalendarquarters.

•Co-opleasepaymentisdueiftheperformanceaccountisdepletedandproductionfallsshortoftherequired$4,500netadjustedteamwholesaleproduction.

•Theco-opleasepaymentamountisdeterminedbytheGrandAchieverCo-opLeasePaymentScheduleonthefollowingpageandisdeductedfromthefollowingmonth’scommissioncheck.

40 41

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

grand achiever career car / cash compensation optiongrand achiever career car / cash compensation option

➣Performanceaccountbalancefollowingrequalificationisre-establishedafterqualificationwitha$4,500wholesalebalanceorthecurrentperformanceaccountbalance,whicheverisgreater.

•IndependentSalesDirector ➣RequalificationstartsthesixthquarterofpossessionforSalesDirectorGrand

Achiever/PremierClub/Cadillac. s Thesixthquarterofpossessionisthecalendarquarterthatincludesthe21st

monthafterqualification. ➣ForSalesDirectorGrandAchiever/PremierClub/Cadillacqualificationrequirements,

seePages49and55. sIfPremierClub/Cadillacqualificationrequirementsarenotmetbytheendof

youreighthquarterofpossession,youmayqualifyforGrandAchieverstatus(CashCompensationonly)byusingthelastfourmonthsofyourseventhandeighthquarters(seePage48).

Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember. ➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1

productsandmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.

•Carprogramcreditappliestowardtherequiredmaintenancerequirementsandrequalificationrequirements.

Independent Sales Director Unit Maintenance Option•TheGrandAchieverUnitMaintenanceoptionisavailabletoIndependentSales

DirectorswhoareinmaintenanceoftheirGrandAchieverrewardanddoesnoteffectGrandAchieverrewardoptions,on-targetrequirements,qualificationrequirementsorrequalificationrequirements.

•OncetheIndependentSalesDirectorswitchestotheGrandAchieverUnitMaintenanceProgram,shewillnotbeeligibletoswitchbacktotheGrandAchieverTeamMaintenanceProgram.

•IndependentSalesDirectorswhoarequalifiedorqualifyasGrandAchieverswillbeallowedtoswitchatthebeginningofacalendarquarterfromtheGrandAchieverTeamMaintenanceProgramtotheGrandAchieverUnitMaintenanceProgram.

•OncetheIndependentSalesDirectorswitchestotheGrandAchieverUnitMaintenanceProgram,theperformanceaccountisnolongerapplicable.TheIndependentSalesDirector’snetadjustedunitwholesaleproductionduringthequarterwilldeterminetheamountofanymonthlyco-opleasepaymentsorcashcompensationpaymentsinthefollowingquarter.

•Minimumof$20,000netadjustedunitwholesaleproductionpercalendarquarter

•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalancemustbepaidtothebranchbythe21stofthecurrentmonth.

•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfutureeligibilityandrewardsundertheCareerCarprogram.

Grand Achiever Co-op Lease Payment Schedule (amounts subject to change)

monthly net adjusted team monthly lease wholesale production co-op payment

$4,500ormore -0-$3,500to$4,499 $93.75$2,500to$3,499 $187.50$1,500to$2,499 $281.25$0to$1,499 $375.00

Cash Compensation Option (Beauty Consultants and Sales Directors)•MonthlyCashCompensationisinlieuoftheGrandAchieverCareerCar.•FullCashCompensationispaideachmonthunlesstheperformanceaccountis

depletedandproductionfallsshortoftherequired$4,500netadjustedteamwholesaleproductionpermonth.

•TheCashCompensationpaymentamountisdeterminedbytheGrandAchieverCashCompensationPaymentSchedulebelowandpaidinthatmonth’scommissioncheckthatisreceivedinthemiddleofthefollowingmonth.

Grand Achiever Cash Compensation Payment Schedule (amounts subject to change)

monthly net adjusted team monthly cashwholesale production compensation

$4,500ormore $375.00$3,500to$4,499 $281.25$2,500to$3,499 $187.50$1,500to$2,499 $93.75$0to$1,499 -0-

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

Requalification•IndependentBeautyConsultant ➣Requalificationstartsthe21stmonthafterthequalificationmonth. ➣Sameasqualificationrules ➣$600carprogramcreditcountstowardrequiredproduction. ➣Performanceaccountbalancedoesnotcounttowardon-targetstatusor

requalificationrequirements.


42 43

Grand Achiever Unit Cash Compensation Payment Schedule (amounts subject to change)

quarterly net adjusted unit monthly cash wholesale production compensation payment

$19,500andover $375.00$16,500to$19,499 $337.50$14,500to$16,499 $300.00$12,500to$14,499 $262.50$10,500to$12,499 $187.50$8,000to$10,499 $112.50$0to$7,999 -0-

Net Adjusted Team Wholesale Production•GrandAchievernetadjustedteamwholesaleproductionincludespersonalandteam

production,pluscarprogramcredit,plusanyamountsborrowedfromtheperformanceaccountbalance,lessanychargebacks.

Net Adjusted Unit Wholesale Production•AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunit

wholesaleproduction,pluscarprogramcredit,lessanychargebacks.

Beauty Consultant Grand Achiever Program (Effective November 2009)

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 qualification requirements, requalification requirements or maintenance requirements.)

•Productioninexcessof$20,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

•$600carprogramcreditcountstowardrequiredproduction.•RemaincurrentonmoniesowedtheCompany.•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmay

beallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.

Grand Achiever Career Car•Co-opleasepaymentisdueifproductionfallsbelow$19,000netadjustedunit

wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheGrand

AchieverCareerCarUnitCo-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

$19,500andover -0-$16,500to$19,499 $37.50$14,500to$16,499 $75.00$12,500to$14,499 $112.50$10,500to$12,499 $187.50$8,000to$10,499 $262.50$0to$7,999 $375.00

Cash Compensation Option•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet

adjustedunitwholesaleproductionandtheGrandAchieverCashCompensationUnitPaymentScheduleonthenextpage.


44 45


Performance Account and Momentum Month•Performanceaccountisutilizedtooffsetproductionshortfallsbelowthemonthly

minimummaintenancerequirementof$5,000netadjustedteamwholesaleproductionpermonthanddoesnotcounttowardon-targetstatusorrequalificationrequirements.

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

inthismonth,includingcarprogramcredit,willbedoubled.•Eachmonth,productioninexcessoftherequired$5,000addstotheperformance

account;lessthantherequired$5,000depletestheperformanceaccount.•Maximumperformanceaccountbalancethatcanbecarriedforwardfrommonthto

monthis$15,000.

Grand Achiever Career Car•GrandAchieverCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueiftheperformanceaccountisdepletedandproductionfalls

shortoftherequired$5,000netadjustedteamwholesaleproduction.•Theco-opleasepaymentamountisdeterminedbytheGrandAchieverCo-opLease

PaymentSchedulebelowanddeductedfromthefollowingmonth’scommissioncheck.•Ifthecommissioncheckisnotsufficienttocovertheco-opleasepayment,thebalance

mustbepaidtothebranchbythe21stofthecurrentmonth.•ReturnofaCareerCarpriortotheendofthemaintenanceperiodmayimpactfuture

eligibilityandrewardsundertheCareerCarprogram.

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

Cash Compensation Option•MonthlyCashCompensationisinlieuoftheGrandAchieverCareerCar.•FullCashCompensationispaideachmonthunlesstheperformanceaccountis

depletedandproductionfallsshortoftherequired$5,000netadjustedteamwholesaleproductionpermonth.

•TheCashCompensationpaymentamountisdeterminedbytheGrandAchieverTeamCashCompensationPaymentScheduleonthefollowingpageandpaidinthatmonth’scommissioncheckthatisreceivedinthemiddleofthefollowingmonth.

Qualification•YoumayqualifyasaGrandAchieverinone,two,threeorfourmonths,basedonwhen

youachievethefollowing:➣$20,000combinedpersonal/teamwholesaleSection1production➣14activepersonalteammembers

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

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

•Youmusthaveaminimumof$5,000combinedpersonal/teamwholesaleSection1productioneachmonthofthequalificationperiodwhilemaintainingfiveormoreactivepersonalteammembers.

•Youmustbeactive.

Maintenance Requirements•Teammaintenancestartsthemonthfollowingqualificationandcontinuesthroughthe

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

wholesaleproductionpermonthforeachnewqualifiedpersonalteammember.•Ifproductionfallsbelowtheminimummonthlymaintenancerequirement,youmaybe

allowedtomaintaintherewardaslongasyouhavefiveormoreactivepersonalteammembersandsteadyimprovementismadetowardtheminimummonthlyproductionrequirement.

Independent Sales Director Unit Maintenance Option•AnIndependentSalesDirectorswhoqualifiesundertheBeautyConsultantGrand

AchieverProgramwillbeallowedtoswitchatthebeginningofacalendarquarterfromBeautyConsultantGrandAchieverTeamMaintenancetoSalesDirectorGrandAchieverUnitMaintenance.

•AnIndependentSalesDirectorwhoswitchestoSalesDirectorGrandAchieverUnitMaintenanceisnoteligibletoswitchbacktoBeautyConsultantGrandAchieverTeamMaintenance.

•ForcompleteSalesDirectorGrandAchieverUnitMaintenancerequirements,see Page49.


46 47

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.

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

requirements.•Performanceaccountbalancefollowingrequalificationisre-establishedafter

qualificationwitha$5,000wholesalebalanceor thecurrentperformanceaccountbalance,whicheverisgreater.

Car Program Credit•Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.

➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1productsandmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.

•Carprogramcreditappliestowardtherequiredmaintenancerequirementsandrequalificationrequirements.

Sales Director Grand Achiever Program (Effective November 2009)

rewards ➣GrandAchieverCareerCarorCashCompensation* ➣GrandAchieverkeychainpresentedatSeminar

On-Target•$19,500netadjustedunitwholesaleproductioninonecalendarquarter.

Qualification•$39,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar

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

•$600carprogramcreditcountstowardrequiredproduction.

Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour

requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$19,500netadjustedunitwholesaleproductionpercalendarquarter•Excessproductionfromthetwoqualifyingquartersover$39,000willcarryforward

tothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.


•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensation

foreightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.

•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintherewardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.

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

wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheGrand

AchieverUnitCareerCarCo-opLeasePaymentScheduleonthefollowingpagedeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



48 49



Car Program Credit •Receive$600carprogramcreditforeachnewqualifiedpersonalteammember.

➣ InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.

•Carprogramcreditappliestowardtherequiredqualificationrequirements,maintenancerequirementsandrequalificationrequirements.

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

net adjusted unit wholesale production

AnIndependentSalesDirector’snetadjustedunitwholesaleproductionincludesunitwholesaleproduction,pluscarprogramcredit,lessanychargebacks.

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 $375.00

Cash Compensation Option •CashCompensationisinlieuoftheGrandAchieverCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet

adjustedunitwholesaleproductionandtheGrandAchieverUnitCashCompensationPaymentSchedulebelow.

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 •$39,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersof

possessionorduringtheseventhandeighthquartersofpossession•$600carprogramcreditcountstowardrequiredproduction.•IfaSalesDirectorhasnotqualifiedbytheendofhereighthquarterofpossession,but

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

sales director career car / cash compensation optionsales director career car / cash compensation option

50 51

Premier Club ProgramEffective through October 2009

rewards•PremierClubCareerCar*orCashCompensation•PremierClubkeychainpresentedatSeminar

On-Target• $24,000netadjustedunitwholesaleproductioninonecalendarquarter

Qualification• $48,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar

quarters.EXAMPLES:

Calendar Quarter 1 Quarter 2 Total NetWholesale$24,000 + $24,000 = $48,000 NetWholesale$21,000 + $27,000 = $48,000

• $600carprogramcreditcountstowardrequiredproduction.

Maintenance• Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour

requalificationperiodaslongasminimummaintenancerequirementsaremet.• Minimumof$24,000netadjustedunitwholesaleproductionpercalendarquarter• Excessproductionfromthetwoqualifyingquartersover$48,000willcarryforward


• Productioninexcessof$24,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

• RemaincurrentonmoniesowedtheCompany.• $600carprogramcreditcountstowardrequiredproduction.• MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensation

foreightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.


Premier Club Career Car•PremierClubCareerCarisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$23,000netadjustedunit

wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandthePremier

ClubCareerCarCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



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

quarterly net adjusted unit monthly leasewholesale production co-op payment

$23,000andover -0-$20,000to$22,999 $50$17,000to$19,999 $100$14,000to$16,999 $150$11,000to$13,999 $250$8,000to$10,999 $350$0to$7,999 $500

Cash Compensation Option •CashCompensationisinlieuofthePremierClubCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet

adjustedunitwholesaleproductionandthePremierClubCashCompensationPaymentSchedulebelow.

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

quarterly net adjusted unit monthly cashwholesale production compensation

$23,000andover $500$20,000to$22,999 $450$17,000to$19,999 $400$14,000to$16,999 $350$11,000to$13,999 $250$8,000to$10,999 $150$0to$7,999 -0-Note: Cash Compensation payments begin with the final commission check received in the fourth month following qualification.


52 53

*ToselectthePremierClubCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaPremierClubCareerCar.

Requalification•$48,000netadjustedunitwholesaleproductionduringthesixthandseventhquartersof


didachieve$24,000netadjustedunitwholesaleproductioninhereighthquarter(i.e.,ison-target),shemaycombinehereighthandninthquarterstorequalify.

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


➣InitialorderwiththeCompanymustbe$600ormoreinwholesaleSection1products,anditmustbereceivedandacceptedbytheCompanyinthesameorfollowingcalendarmonththattheIndependentBeautyConsultantAgreementwasreceivedandacceptedbytheCompany.


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



Premier Club (Effective November 2009)

rewards•PremierClubCareerCar*orCashCompensation•PremierClubkeychainpresentedatSeminar

On-Target• $27,000netadjustedunitwholesaleproductioninonecalendarquarter

Qualification• $54,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar

quartersEXAMPLES:

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

• $600carprogramcreditcountstowardrequiredproduction.

Maintenance• Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour

requalificationperiodaslongasminimummaintenancerequirementsaremet.• Minimumof$27,000netadjustedunitwholesaleproductionpercalendarquarter• Excessproductionfromthetwoqualifyingquartersover$54,000willcarry

forwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

• Productioninexcessof$27,000ineachquarterwillcarryforwardtothenextquartertooffsetanyproductionshortfallbelowthequarterlymaintenancerequirements.

• RemaincurrentonmoniesowedtheCompany.• $600carprogramcreditcountstowardrequiredproduction.• MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCash

Compensationforeightcalendarquarters,dependinguponthenetadjustedunitwholesaleproductionfromthepriorquarter.



54 55

*ToselectthePremierClubCareerCarreward,youmustmeettherequirementsoftheCareerCarInsuranceProgram.Inaddition,atthetimeofqualification,youmustpossessavalidU.S.driver’slicenseandeitheraSocialSecuritycardorIndividualTaxpayerIdentificationNumber(ITIN).IndependentSalesDirectorsinGuam,PuertoRicoortheU.S.VirginIslandswillreceiveCashCompensationonlyandwillnothavetheoptiontochoosetheuseofaPremierClubCareerCar.








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



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

wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandthePremier

ClubCarCo-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



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

quarterly net adjusted unit monthly leasewholesale production co-op payment


Cash Compensation Option •CashCompensationisinlieuofthePremierClubCareerCar.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarternet

adjustedunitwholesaleproductionandthePremierClubCashCompensationPaymentSchedulebelow.

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.

sales director career car / cash compensation option sales director career car / cash compensation option

56 57

Pink Cadillac Programrewards•CadillacCareerCar*orCashCompensation•CadillackeychainpresentedatSeminar

On-Target•$48,000netadjustedunitwholesaleproductioninonecalendarquarter

Qualification•$96,000netadjustedunitwholesaleproductionwithintwoconsecutivecalendar

quarters. EXAMPLES:

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

Maintenance•Maintenancestartsthequarterfollowingqualificationandcontinuesthroughyour

requalificationperiodaslongasminimummaintenancerequirementsaremet.•Minimumof$48,000netadjustedunitwholesaleproductionpercalendarquarter.•Excessproductionfromthetwoqualifyingquartersover$96,000willcarryforward



•RemaincurrentonmoniesowedtheCompany.•$600carprogramcreditcountstowardrequiredproduction.•MaryKayInc.willpayallorpartofthemonthlyleasingcostsorCashCompensationfor

eightcalendarquarters,dependingupontheIndependentSalesDirector’snetadjustedunitwholesaleproductionfromthepriorquarter.

•Ifproductionfallsbelowtheminimumquarterlymaintenancerequirement,youmaybeallowedtomaintaintheawardaslongassteadyimprovementismadetowardtheminimumquarterlyproductionrequirements.

Cadillac Career Car •CadillacisinlieuofCashCompensation.•Co-opleasepaymentisdueifproductionfallsbelow$45,000netadjustedunit

wholesaleproductionpercalendarquarter.•Thepriorcalendarquarter’snetadjustedunitwholesaleproductionandtheCadillac

Co-opLeasePaymentSchedulebelowdeterminethemonthlyco-opleasepaymentamountdueforthecurrentquarter.



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


Cash Compensation Option •CashCompensationisinlieuoftheCadillac.•CashCompensationispaideachmonthofaquarterbasedonthepreviousquarter’s

netadjustedunitwholesaleproductionandtheCadillacCashCompensationPaymentSchedulebelow.

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

$45,000andover $900$42,000to$44,999 $810$39,000to$41,999 $720$35,000to$38,999 $630$31,000to$34,999 $450$27,000to$30,999 $270$0to$26,999 -0-

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

sales director career car / cash compensation option

58 59

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








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