Advance Brochure Finding Your Way Along the Path to Success 1

Advance Brochure Finding Your Way Along the Path to Success 1

Visualise a year filled with accomplishments and the realisation of your goals. Map out your plan. Keep your mind filled with positive expectancy and focus on your plan. Remember that every big accomplishment results from a series of little ones. By achieving your daily goals, you ll be working toward your yearlong goals. Mary Kay Ash This is a brief description of the incentive programmes in effect as of August 2016. The Company reserves the right to alter, modify or change the commissions, bonuses or any terms of the incentive programmes described herein at any time and in its sole discretion. 2

Table of Contents This guide details each of the steps along the career path for your Independent Mary Kay business, including requirements, compensation potential, available rewards and recognition opportunities. And remember, you have ongoing support from fellow team members, your Team Leader, your Independent Sales Director and the Company along your journey! 04 Journey of Success 06 Star Consultant Programme 08 Start Your Path to Success Includes: Independent Beauty Consultant Senior Beauty Consultant Star Recruiter Team Leader Future Independent Sales Director 10 Independent Sales Director-in-Qualification 12 Independent Sales Director to Future Executive Senior Sales Director 13 Executive Senior & Elite Executive Senior Sales Director 14 Independent National Sales Director-in-Qualification 16 Independent National Sales Director 17 Independent Senior National Sales Director & Independent Executive National Sales Director 18 Career Car & Cash Compensation Programmes 20 Glossary & Guidelines 3

Journey of Sucess When you help others reach their goals of becoming an Independent Beauty Consultant, you can move up the career path and achieve your own goals. And, as you advance, your potential for income, rewards and recognition can continue to grow! Consider checking off each step as you advance along the career path. Bee-lieve & Achieve Use skincare parties in your first 90 days to create orders and receive rewards! Courts Make your way across the stage at Seminar to receive the ultimate recognition for sharing quality products along with a great Business Opportunity. Team Building Build your Team and work your way up to Team Leader with 5 or more recruits and you will be introduced to even more benefits! Commissions Start earning personal Team commission from each Team Member while still earning 30-40% on your personal sales. Director In Qualification (DIQ) Make the commitment to become a Director by entering DIQ and taking your Business to the next level. Director Congratulations! You can now direct your own Unit and earn even more in the way of Unit commissions and Unit Volume Bonus. New Director Programmes During your first year as a new Independent Sales Director, stay focused on success. Step up to these challenges and earn exciting rewards along the way. US Seminar Earn your place on this exciting and motivational trip to attend US Seminar and see where it all began over 50 years ago. Top Director Trip The ultimate chance to be recognised for your hard work and commitment to your Business. Open to all Sales Directors, there are two tiers to this all expenses paid trip. Car Programme Drive your way to success in your Mary Kay career car. 4

Perfect Start Build your Customer base, introduce your products and services by booking facials and skincare parties for your first pin. Upgrade to Power Start/Power Start Plus to sparkle even more. Red Jacket Programme Build your business with strong foundations and reap the rewards of building your very own Team. Directors Court of Sales/Sharing Pearls of Sharing Share the Opportunity with others and be rewarded with pearls! Star Consultant Programme Earn enough points each quarter and reward yourself with luxury gifts, vouchers and experience days. Once you have achieved Star Consultant status each quarter, you can receive additional rewards for consistency. Star Director Programme Earn even more rewards by working alongside your Unit Members to create more Star Consultants. Build on Success and your loyal Team. Offspring Identify your star performers and mentor them to DIQ and beyond. Creating Offspring will open up more opportunities for rewards! National Sales Director The ultimate Mary Kay position in the career path, empower women by leading your own Area! Unit Clubs Now is the time to start thinking about where you want your Unit to be at the end of this Seminar year. Top Tip: Use the Pink Lady graph on mybusiness to see what level you can reach for next.

Star Consultant Programme The Star Consultant Programme and the Ladder of Success programme helps Independent Beauty Consultants find balance in sales and team building. The programmes have been aligned so they may be more rewarding for you and your team members. Once you achieve a minimum of 2,000 Section 1 retail orders within the contest quarter, you may apply team-building credit. This not only helps you reach higher prize categories, but also to step up to the Ladder of Success recognition. When you achieve Sapphire Star Consultant ( 2,000 retail) status and you share the opportunity with someone whose Independent Beauty Consultant Agreement and cumulative 500 Section 1 retail orders are received within the same contest quarter, not only will you earn additional contest credit in the Star Consultant Quarterly Contest programme, but you also can earn additional contest credit toward the Ladder of Success jewellery! For example, when you place one or more Section 1 retail orders totalling at least 2,000 during the contest quarter and add two qualified* new personal team members during that same quarter, you will earn a Ruby Star for your Ladder of Success pin. 1st Example 2nd Example 3rd Example 4th Example 5th Example 2,000 Section 1 retail order 2,300 Section 1 retail order 2,400 Section 1 retail order 2,700 Section 1 retail order 4,000 Section 1 retail order 6

+ 1 2 + 3 + 2 + = qualified new personal team member (500 contest points) = qualified new personal team members (1000 contest points) = qualified new personal team members (1500 contest points) = qualified new personal team members (1000 contest points) = The SAPPHIRE Star (2,000 minimum) The RUBY Star (2,800 minimum) The DIAMOND Star (3,400 minimum) The EMERALD Star (4,200 minimum) The PEARL Star (5,000 minimum) * A qualified new personal team member is one whose Independent Beauty Consultant Agreement and a minimum of 500 in retail Section 1 orders are postmarked and accepted by the Company within the contest quarter. 7

Start Your Path to Success Career Status Requirements Compensation Potential Independent Beauty Consultant Maintain active status Up to 40% on everything you sell Senior Beauty Consultant Star Recruiter Team Leader Future Independent Sales Director** 1-2 active personal team members Maintain active status 3-4 active personal team members Maintain active status 5-7 active personal team members Maintain active status 8+ active personal team members Maintain active status Up to 40% on everything you sell Up to 40% on everything you sell + 4% personal team-building commission* Up to 40% on everything you sell + 8% or 12% personal team-building commission* Up to 40% on everything you sell + 8% or 12% personal team-building commission* The 40 percent gross profit calculation is based on suggested retail prices. See Glossary and Guidelines for the full Discount Schedule. * Personal team-building commissions are paid on the monthly wholesale value of your personal team members orders received and accepted by the Company. Twelve percent personal team-building commissions are paid when a personal minimum 500 Section 1 retail order is placed and accepted by the Company in the same month that at least five personal team members each place a minimum 200 Section 1 retail order. 8

Earning Opportunities Selling On the Go Selling In Person Holding Parties Team-Building Commissions As you continue to sell, hold parties and grow your business, remember that building your team can significantly increase your income potential! Rewards & Recognition Mary Kay pin Applause magazine Eligible to attend Seminar and Career Conference Eligible to qualify for quarterly Star Consultant recognition and prizes Senior Beauty Consultant pin enhancer Star Recruiter pin enhancer Eligible to wear the Red Jacket Eligible to attend Red Jacket training and events Team Leader pin enhancer + + + + Future Independent Sales Director pin enhancer Eligible to submit Sales Director-in-Qualification commitment form Must have 12 or more active personal team members; refer to the Independent Sales Director-in- Qualification section for details ** Achieving Future Independent Sales Director recognition status does not guarantee you will become an Independent Sales Director. In order to become an Independent Sales Director, you must successfully complete the Independent Sales Director qualification requirements as set forth by the Company. An Independent Sales Director is an independent contractor, not an employee of Mary Kay Cosmetics (UK) Ltd., and will not be treated as an employee for tax purposes or otherwise. The Independent Sales Director position is appointed at the sole discretion of Mary Kay Cosmetics (UK) Ltd. 9

Independent Sales Director-in-Qualification Earning OpportUnities Team-Building Commissions Selling On the Go Selling In Person Holding Parties Compensation Potential Up to 40 percent on everything you sell 8% or 12% personal team-building commission paid on the monthly wholesale value of the personal team members orders received and accepted by the Company. Prior to Entering the Qualification Programme In order to submit a commitment form to the Company stating intent to begin the Independent Sales Director-in-Qualification (DIQ) Programme, an IBC must: Have started her Mary Kay business at least two months before submitting the DIQ commitment form. Be active and have twelve or more active personal team members the month prior to the first month of qualification. To count toward this requirement, none of the team members can be any of the following: the spouse of any IBC, the DIQ s spouse, a personal team member submitting her commitment form in the same month as the DIQ, a current DIQ or a current Independent Sales Director. If one of her personal team members submits a commitment form in the same month as the DIQ, the DIQ will need to replace her and have at least thirteen active personal team members in the month prior to the first month of entering DIQ. Be in good standing with the Company based on the terms of the Independent Beauty Consultant Agreement (including, but not limited to, paying in full any accounts receivable with the Company under current or previous Consultant numbers). Submit an original commitment form by the 5th of the month. Example: If a DIQ wishes to begin Sales Directorin-Qualification on 1st June, her commitment form should be received by the Company by 5th June at the latest. During Qualification A DIQ may qualify as an Independent Sales Director in one, two, three or four months, based on when she achieves the following: 24,400 cumulative retail Unit production. 28 total active Unit members (including the DIQ). (To count toward this requirement, none of the DIQ s team members can be any of the following: the spouse of any IBC, the DIQ s spouse, a current DIQ [during the DIQ s qualification] or a current Independent Sales Director.) The DIQ Unit must recruit a minimum of three Active Team Members in each month of the DIQ period. One of which must have been recruited by a DIQ Unit member (other than the DIQ herself). Minimum 6,100 Unit retail production in every month. The DIQ s Unit members must contribute at least 18,300 toward the 24,400 retail Unit production requirement. A DIQ may contribute up to 6,100 in personal retail Section 1 production toward the 24,400 cumulative retail Unit production during the qualification period. The qualifying Unit is comprised of: The DIQ and her personal team members, regardless of their Unit affiliation (Exception: personal team members who already may be Independent Sales Directors or in qualification to become Independent Sales Directors). Team members recruits whose Independent Beauty Consultant Agreements are accepted by the Company on or after the first day of the month in which the DIQ begins Independent Sales Director qualification will be members of the new qualifying Unit. Team members recruits whose Independent Beauty Consultant Agreements were accepted by the Company prior to her first month of qualification remain in the parent Unit. Spouses do not count toward any programme except Unit production and commission. Once one spouse becomes an Independent Sales Director, the other spouse is not eligible to become an Independent Sales Director. There may be only one Independent Sales Director per husband and wife. The Independent Sales Director commission will be paid on the spouse s orders. 10

Should the DIQ s qualifying Unit fail to reach 28 active members and/or the required retail Unit production amounts, the DIQ has not qualified and must submit a new commitment form to begin qualification again (she may do so immediately if she chooses and is eligible). The DIQ s team members recruits will remain in the parent Unit. An Independent Sales Director is an independent contractor and not an employee of Mary Kay Cosmetics (UK) Ltd. Upon acceptance, the DIQ will re-enter the programme with her personal team only. All other recruits formerly associated with the DIQ s previous attempt will remain with the parent Unit. The DIQ Understands: The importance of attending the New Independent Sales Director Education Day within 6 months of her debut as a Independent Sales Director. A DIQ cannot place an order on behalf of an Independent Beauty Consultant. An Independent Beauty Consultant selling the DIQ s inventory and then placing an order will not count. The DIQ cannot sell her inventory to an Independent Beauty Consultant and take her money to place an order to replace the DIQ s inventory. The DIQ cannot place an order for an Independent Beauty Consultant with her promise to pay the DIQ back. If the DIQ uses her credit card to pay for a Independent Beauty Consultant s order, the DIQ must have already received the funds from the Independent Beauty Consultant before the order is placed online. Taking a postdated cheque and placing an order for an Independent Beauty Consultant will not count. An Independent Beauty Consultant selling anyone s inventory other than her own, then placing an order, will not count. Special Considerations Should a DIQ submit a DIQ commitment form three times within a 12-month period and each time fail to meet the requirements to complete the process, she will receive a letter explaining she has one more opportunity to complete the requirements. If she does not complete the requirements on the fourth attempt, she will have to follow a four-month rebuilding plan as outlined in the letter she receives. Acceptance in the Independent Sales Director-in-Qualification Programme is at the Company s sole discretion. The 40 percent gross profit calculation is based on suggested retail prices. See Glossary and Guidelines for the full Discount Schedule. 11

Independent Sales Director Earning Opportunities Team-Building Commissions Selling On the Go Selling In Person Holding Parties Rewards & Recognition An Independent Sales Director maybe eligible to: Wear the Sales Director suit Receive Mary Kay Matters newsletter Receive the Sales Director pin and enhancer Earn the use of a Sales Director Career Car or receive financial compensation (Please refer to the Career Car Programme details located on InTouch). Attend Leadership Conference Attend Sales Director meetings Eligible to achieve the Top Sales Director Trip Eligible to achieve the US Dallas Seminar Trip Eligible to achieve the Star Director Programme Eligible to achieve the Global Leadership Development Programme (GLDP) for the opportunity to personally team-build in designated international markets Unit Volume Bonus Schedule Monthly Unit Production UVB ( ) 0 to 7,599 0 7,600 to 9,999 220 10,000 to 14,999 350 15,000 to 19,999 500 20,000 to 24,999 700 25,000 to 29,999 1,000 30,000 to 34,999 1,300 35,000 to 39,999 1,600 40,000 to 44,999 2,000 45,000 to 49,999 2,500 50,000+ 3,000 Compensation Potential 4%, 8%, 12% personal team commission paid on the monthly wholesale value of the personal team members orders received by the Company. Sales Director Unit Volume Commission Schedule Monthly Unit Production (Retail) Commission Paid on Wholesale Value 0-6,099 5% 6,100 to 8,399 10% 8,400 to 13,999 11% 14,000 to 22,499 12% Business Guidelines Independent Sales Director commissions and Independent Sales Director Bonuses are based on the wholesale of retail orders placed online by midnight on the last day of the month. It is expected that an Independent Sales Director maintains minimum Unit production of 6,100 retail per month. 22,500 plus 13% To obtain an estimate wholesale value equivalent, multiply retail amount by 0.458 (assumes a 40% discount level) 12

Independent Senior, Future Executive Senior, Executive Senior and Elite Executive Senior Sales Director Qualifications Senior Sales Director - Has 1-2 active first-line offspring Sales Directors Future Executive Senior Sales Director - Has 3-4 active first-line offspring Sales Directors Executive Senior Sales Director - Has 5-7 active first-line offspring Sales Directors Elite Executive Senior Sales Director - Has 8+ active first-line offspring Sales Directors An Independent Senior Sales Director or Independent Executive Senior Sales Director is paid at the Tier 3 offspring commission rates for three months after the debut of a new offspring unit. Thereafter, the Independent Senior Sales Director s or Independent Executive Senior Sales Director s personal Unit monthly retail production determines the tier at which the offspring commission is earned. Compensation Potential Offspring Commission Schedule Personal Unit Monthly Production Number of Offspring Commission Paid on Wholesale Value Tier 1 0-6,099 Offspring Units 2.0% Tier 2 6,100-22,499 One or more 4.0% One to Three 4.5% Four to Six 5.0% Tier 3 22,500 or more Seven or more 5.0% One to Three 5.5% Four to Six 6.0% An Independent Sales Director is an independent contractor, not an employee of Mary Kay Cosmetics (UK) Ltd., and will not be treated as an employee for tax purposes or otherwise. * Wholesale is retail minus discount minus VAT (calculated on retail amount). 13

Independent National Sales Director-in-Qualification Prior to Entering the Qualification Programme In order to be considered for acceptance into the Independent National Sales Directorin-Qualification (NIQ) Programme, an Elite Executive Senior Sales Director must have 18 offspring Sales Directors, each with one of the following configurations: (12/6) Twelve (12) first-line offspring Sales Directors, six (6) of whom are Senior Sales Directors OR (11/7) Eleven (11) first-line offspring Sales Directors, seven (7) of whom are Senior Sales Directors OR (10/8) Ten (10) first-line offspring Sales Directors, eight (8) of whom are Senior Sales Directors Elite Executive Senior Sales Directors must personally communicate their National Sales Director goal/plan with the Sales Development Manager prior to entering the NIQ period. Please note: GLDP offspring sales Units are included for purposes of calculating the number of offspring units. During Qualification The NIQ period is four consecutive months. Elite Executive Senior Sales Directors must submit a signed NIQ Letter of Commitment to the Company at the start of their NIQ period. At the end of the fourth month, each of the 18 qualifying offspring units (12/6, 11/7 or 10/8) and the NIQ s personal Unit must have at least 28,000 in retail Unit production, AND all of the same 18 Units and the NIQ s personal Unit must have at least 28 active Unit members. Please note: a maximum of 10,600 per month in Section 1 retail production can count toward the 28,000 total retail requirement. Special Considerations When minimum NIQ requirements have been met, appointment is at the Company s sole discretion after review by the Independent National Sales Director (NSD) Debut Review Board and is based on several factors (e.g. Mary Kay image, ethics, integrity and loyalty to the Company, programmes and the marketing plan). 14

Preparing for National-in- Qualification (NIQ) Global Leadership Development Programme (GLDP) Offspring Sales Units are included for purposes of calculating the number of Offspring Units. When an Elite Executive Senior Sales Director achieves this Career Path level, the Sales Development Department will send her the potential NIQ Package. The potential NIQ package consists of : NIQ letter of commitment Template of a Business Plan NIQ questionnaire The potential NIQ must also send the Sales Development Department her portrait photo, photos of her events, office if she has one and her Unit members. In order to start the NIQ programme, an Elite Executive Senior Sales Director must have all of the necessary Sales Directors in place to meet the NIQ programme requirements at least 3 months before the planned NIQ start date. Once accepted, the NIQ will be notified. There will be NO exceptions made to the NIQ requirements for anyone. To maintain consistency and to ensure a strong area, the NIQ must meet all qualification requirements to become an NSD. * An Independent National Sales Director is an independent contractor, not an employee of Mary Kay Cosmetics (UK) Ltd, and will not be treated as an employee for tax purposes or otherwise. 15

Independent National Sales Director Earning Opportunities Area Development Team-Building Commissions Selling On the Go Selling In Person Holding Parties Rewards & Recognition An Independent National Sales Director (NSD) may be eligible to: Wear the NSD suit Attend the annual NSD Assembly Qualify for annual luxury trip for self and spouse (NSD Summit) Qualify for the US Dallas Seminar Trip Earn the use of an NSD Career Car Participate in the GLDP for the opportunity to personally team-build in designated international markets Compensation Potential Personal team-building commission of 4%, 8% or 12%. Please note: For the 12% personal team-building commission, an NSD does not have any personal activity requirement but is still required to have at least five active personal team members who each place a minimum 200 retail Section 1 order(s). Independent Sales Director personal Unit volume commission of 13%. NSD Unit volume commission of 5%. Please note: An NSD will earn 5% commission on her personal Unit s wholesale volume in addition to a 13% Independent Sales Director commission on that Unit s wholesale production. Independent National Sales Director Commission Schedule Based on Monthly Retail Production of Each First-Line Offspring Unit NSD Commission paid on net monthly wholesale purchase volume excluding VAT 0 to 6,099.99 5% 6,100 to 15,249.99 6% 15,250 to 27,449.99 7% 27,450 or more 8% Second-line unaffiliated and affiliated offspring sales units' combined monthly purchase volume 3% Third-line unaffiliated and affiliated offspring sales units' combined monthly purchase volume 2% At time of offspring Independent Sales Director s debut On the annual anniversary of the same unit s debut when the offspring Independent Sales Director generates retail production of 91,500 or more within the last 12 months 3,500 Bonus 700 Bonus 16

Independent Senior National Sales Director and Independent Executive National Sales Director Qualifications Independent Senior National Sales Director Has one offspring NSD in any line regardless of debut sequence. Independent Executive National Sales Director Has at least three offspring NSDs from any unaffiliated line who debuted as NSDs subsequent to her debut and without any NSDs in between. Independent Elite National Sales Director Has at least five offspring NSDs from any unaffiliated line who debuted as NSDs subsequent to her and without any NSDs in between. Compensation Potential Offspring NSD Development Bonus Schedule When a new offspring NSD is developed out of any line of the NSD s unaffiliated area, the Senior NSD* is entitled to a 6,000 offspring NSD debut bonus at the time of the new offspring NSD s debut and annually thereafter for so long as both Independent National Sales Directors Agreements are in effect. Senior NSD Commission Schedule Commission is payable on the wholesale Unit production of the personal Unit of offspring NSDs according to the following schedule: Senior National Sales Director Offspring First-line offspring Independent Sales Directors who become NSDs Second-line offspring Independent Sales Directors who become NSDs Third-line offspring Independent Sales Directors who become NSDs Fourth-line offspring Independent Sales Directors** NSD Commission 5% 3% 2% 0.5 if 5+, or 1% if 10+, bonused offspring NSDs These personal Unit commissions are payable regardless of debut sequence, even if the offspring NSD debuted prior to the Senior NSD. Likewise, it does not matter if another NSD exists between the Senior NSD and the offspring NSD. * NSD is eligible for the bonus once International Levels have been reached: 12/6 12 first-line Offspring Sales Directors, 6 of whom are Senior Sales Directors; or 11/7 11 first-line Offspring Sales directors, 7 of whom are Senior Sales Directors; or 10/8 10 first-line Offspring Sales Directors, 8 of whom are Senior Sales Directors. ** See NSD Agreement Schedule of Commissions and Bonuses for complete details 17

Career Car & Financial Compensation Programmes Rewards Earn the use of an Independent Sales Director Mini Cooper or Top Independent Sales Director Mercedes Career Car* OR financial compensation. Application The applicant must: Be an active Mary Kay Independent Sales Director. Possess a full UK Driver s Licence and be over 25 years of age. Submit a Car Tracking Application to the Car Programme Administrator on or prior to the 15th of the second month in which she wishes to begin the tracking period. Agree to the qualification requirements set by the Company. Agree to terms and conditions. Car Qualification Requirements Tracking Requirements To qualify to earn the use of the Sales Director Career Car, the tracking Unit must achieve a minimum of 90,000 in adjusted Unit retail production over six consecutive months with an average of 15,000 retail per month, ( 45,000 retail quarterly). To qualify to earn the use of the Top Sales Director Career Car, the tracking Unit must achieve a minimum of 168,000 in adjusted Unit retail production over six consecutive months with an average of 28,000 retail per month, ( 84,000 retail quarterly). Qualifying Independent Sales Directors ( Car Qualifier ) must agree in writing to all Terms and Conditions and meet the Company Insurer s requirements; Possess a full UK Driver s Licence, be over 25 years of age Car Qualifier Production Requirements Sales Director Car Qualifiers must maintain a minimum adjusted Unit retail production of 45,000 per quarter. Top Sales Director Car Qualifiers must maintain a minimum adjusted Unit retail production of 84,000 per quarter. Please note: Mary Kay Cosmetics (UK) Ltd reserves the right to remove a Career Car Qualifier from the Car Programme if adjusted Unit retail production falls below 6,100 per month. Car Driver Maintenance The Car Qualifier may use the Career car for a period of three (3) years from the date of delivery, provided they continue to meet quarterly car qualifier production requirements. Maintenance starts the quarter following qualification and continues through re-qualification. Calculations The Sales Director car production requirement of 45,000 retail (per quarter) is based on the Car Qualifier s adjusted Unit retail production for the preceding quarter. The Top Sales Director car production requirement of 84,000 retail (per quarter) is based on the Car Qualifier s adjusted Unit retail production for the preceding quarter. Should the Car Qualifier fall short of maintaining the minimum quarterly adjusted Unit retail production requirements during the three (3) year period, the Car Qualifier will be required to contribute to the monthly car maintenance cost ( car co-op payment ).* Maintaining the Car Qualifier production requirement per quarter will ensure the Career Car Qualifier will not have a monthly car co-op payment. The current monthly car maintenance cost car co-op payment for the Mini Cooper Career Car is a maximum 350. The current monthly car maintenance cost car co-op payment for the Mercedes Career Car is a maximum 600. *If the Career Car qualifier requires an automatic transmission she must agree to cover the additional leasing costs for the duration of the lease. This must be requested at the time of qualification. 18

Financial Compensation Option The Car Qualifier may opt to receive financial compensation for a period of three (3) years beginning the month after qualification has been completed, provided they continue to meet quarterly Car Qualifier production requirements. Should the Car Qualifier fall short of maintaining the minimum adjusted Unit retail production requirements during the three year period, the Car Qualifier will be entitled to a percentage of the compensation.* If the use of the Career Car is declined, the Car Qualifier may opt to receive financial compensation for a period of three years beginning the month after qualification has been completed, provided she continues to meet quarterly car production requirements. Should the Car Qualifier fall short of maintaining the minimum adjusted Unit retail production requirements during the three year period, the Car Qualifier will be entitled to a percentage of the compensation.** Re-Qualification After 26 months of Career Car usage, requalification begins (to allow time for ordering/ delivery/timing of new car). In the case of financial compensation, re-qualification begins after 29 months. The Car Qualifier must qualify again to earn the use of a Career Car after each three-year term. If the Independent Sales Director does not meet the minimum requirements to earn the use of the Career Car, Mary Kay Cosmetics (UK) Ltd. reserves the right to recall the car with two weeks notice. In the case of car compensation, Mary Kay Cosmetics (UK) Ltd. reserves the right to discontinue compensation payments. Once the Independent Sales Director has chosen financial compensation, she must wait until the next qualification period to choose the Career Car, subject to meeting the qualification requirements. In the event of early termination of the lease, the Car Qualifier will not then be eligible to receive the equivalent financial compensation for the remainder of the lease and will be liable for early termination costs. Please note: Mary Kay Cosmetics (UK) Ltd. reserves the right to remove a Career Car Qualifier from the Car Programme if adjusted Unit retail production falls below 6,100 per month. * See Career Car Programme literature and Terms and Conditions for specific payment and percentage details. Details of the Career Car Programme can also be found on InTouch under My Career. ** Republic of Ireland Career Car qualifiers are eligible to receive financial compensation only. 19

Glossary & Guidelines For career path status and compensation purposes, the following definitions are given: Commissions On reaching Star Recruiter status (3-4 active personal team members), an active IBC earns a 4% commission on the monthly wholesale order value of her personal team members orders accepted and received by the Company. On reaching Team Leader status (5-7 active personal team members), an active IBC earns 8% commission on the monthly wholesale order value of her personal team members orders accepted and received by the Company. Independent Beauty Consultant An Independent Beauty Consultant (IBC) at any level of her career path is an independent contractor, not an employee of Mary Kay Cosmetics (UK) Ltd. and will not be treated as an employee for tax purposes or otherwise. Active Order An active order is an order in which the retail value meets or exceeds 200, including VAT. Active Status To be considered active, an IBC must have placed a minimum of one active order ( 200 retail minimum) within the most recent three calendar months. Example: An IBC places an active order in the month of January. She is therefore considered active for the months of January, February and March. Affiliated The National Sales Director s (NSD) personal area plus any NSD offspring areas she may have in her down line. With 5 or more active personal team members, the Team Leader would receive 8% commission. This increases to 12% when the Team Leader herself personally places a 500 retail Section 1 order in the same month that at least 5 personal team members each place a minimum 200 retail Section 1 order. An Independent Sales Director is entitled to monthly commissions and bonuses based on the total net retail production of her Unit, including her net personal orders. Commission levels are based on net Unit retail production; however, they are paid on the wholesale value equivalent of that production less VAT. Discount A discount is available on the retail value of a Section 1 order. Retail value is defined as the recommended retail price including VAT of all items for resale to customers (Section 1 of the Consultant order form). Unaffiliated The NSD s personal area only; sometimes referred to as the pure area or rather unaffiliated to any other NSD area. Company Mary Kay Cosmetics (UK) Ltd. 20

Discount Schedule Section 1 Retail Value of Order Discount 0-199.99 none 200-379.99 30% 380 or more 40% Initial Order Due to the seven-day cooling off period, the Company cannot accept an investment order totaling 200 or more from a new IBC until seven days have lapsed from the signing of her Independent Beauty Consultant Agreement. Discount Order An IBC who orders more than once in a calendar month will have the subsequent order(s) aggregated with earlier orders for calculation of the applicable discount percentage on the subsequent order(s). Example: An order placed on 17th October for 200 earns the 30% discount and an order placed on 31st October for 180 earns the 40% discount. Personal Team Members Personal team members are those personally recruited by the IBC. 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 an Independent Beauty Consultant must be recruited by that IBC. The personal team commission and teambuilding bonus normally paid on team members will not be paid when an IBC recruits his/ her spouse. The spouse will not count in any way toward Independent Sales Director qualification or any Company promotions or awards. Qualified Team Member for All Other Incentive Programmes An IBC is considered qualified for incentive programmes when her Independent Beauty Consultant Agreement and her cumulative 200 Section 1 retail order(s) are received and accepted by the Company within the same or following calendar month. Contest Qualified for the Court of Sharing An IBC is considered Contest Qualified when the IBC Agreement and cumulative 500 Section 1 Order is received and accepted by the Company within the Seminar Year. Qualified Team Member for the Star Consultant Programme A new, qualified personal team member is an IBC who signs her Independent Beauty Consultant Agreement and places her cumulative 500 Section 1 retail order(s) within the same quarter. 1. It is illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join the scheme. 2. Do not be misled by claims that high earnings are easily achievable. NB. 500 not inclusive of a Starter Kit. 21

Notes Mary Kay Cosmetics (UK) Ltd. 163 Eversholt Street, London, NW1 1BU www.marykay.co.uk 22

The dream I have for you soars on silver wings. You must embrace your dream with all your might and work at it every single day with love-filled intensity. We do have a mission to share our love and our energies, our hopes, our dreams, our superior products and our beautiful, abundant way of life. In doing so, you will be blessed beyond measure with all the riches of life. That s living the Mary Kay dream. Mary Kay Ash 23

Stay InTouch Mary Kay InTouch is the website for Independent Beauty Consultants at every career status. You can manage all aspects of your Mary Kay business with these features: Convenient online ordering Late-breaking news Limited-time offers for growing your business Interactive online lessons and tutorials Promotional fliers for your customers Business tools to help you manage your growing customer base And much, much more! mybusiness This tool gives you a real-time overview of your business and helps you to: View your monthly sales and recruiting activities See what action needs to be taken to achieve the next Career Level See what programmes and incentives you are on track for Manage your business on the go with the Mobile InTouch App Gain easy access to mybusiness, keep an eye on the programmes you are tracking for and get alerts from Mary Kay UK all on your tablet or phone! Personal Website Open your 24/7 Online website today! Consultant Locator helps customers find you Manage customer details and orders with mycustomers! Online payment gateway now available For more information visit intouch 10-080594 MK / Mary Kay / 2016 Mary Kay Inc. Printed in United Kingdom