This is the commission schedule for Mary Kay national sales directors as of July 1, 2007.

Compensation

• Personal team commission of 4%, 9% or 13%
• For the 13% personal team commission, a National Sales Director does not have any personal activity requirements, but is still required to have at least five personal team members each place minimum $200 wholesale Section 1 orders.
• Sales Director personal unit volume commission of 13%
• National Sales Director Commission
• NSD personal unit volume commission of 10%
• An NSD may elect to keep her personal unit at the time she debuts or form a personal unit at a later date in order to develop additional first-line offspring units. She will earn a 10% NSD commission on her personal unit’s wholesale volume in addition to a 13% Sales Director commission on that unit’s wholesale production.

Independent National Sales Director Commission Schedule

Based on Combined Monthly Wholesale Purchase Volume NSD Commission

First-line offspring sales units – 9% commission
Second-line offspring sales units – 4% commission
Third-line offspring sales units – 2% commission

First-line new offspring Sales Director Bonus

Bonuses will be paid for the development of Sales Directors from NSD’s personal unit according to the following schedule:

• At time of offspring Sales Director’s debut – $5,000 bonus
• At annual anniversary of same unit’s debut when offspring Sales Director generates wholesale production of $60,000 or more within last 12 months – $1,000 bonus

To be eligible for the first-line new offspring Sales Director Bonus, the NSD must have qualified to earn the first-line offspring bonus at the time of the offspring Sales Director’s debut.

NSD Star Consultant Bonus

Independent National Sales Directors are entitled to a $3,000 Star Consultant Bonus for their first 100 Star Consultants and each additional accumulated 100 Star Consultants developed from her Star Consultant Pool. “Star Consultant Pool” means an NSD’s personal unit and her unaffiliated** first-, second- and third-line offspring sales units. Star Consultant guidelines apply.

Special Note: In the case of an Offspring 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.

Top 10 Unaffiliated Fourth-Line and Beyond Sales Director Commission

A 2% commission calculated on the combined monthly wholesale purchase volume of NSD's offspring Sales Directors that are unaffiliated** fourth-line and beyond. "Top 10" means the monthly ranking 1-10 of NSD's unaffiliated* fourth-line and beyond offspring sales units based on monthly wholesale purchase volume.

Grand 5 Contest Bonus (effective through June 30, 2008)

A National Sales Director is entitled to a contest bonus of $1,000 when an unaffiliated U.S. Sales Director in her area achieves any one or more of the following:

• Cadillac qualification or requalification
• Higher Circle of Achievement or Circle of Excellence than the previous year (payable with July commissions received in August)
• On the Write Track
• Fabulous 50s Club
• Honors Society

NSD Motivation Account

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

NUMBER OF FOURTH-LINE AND BELOW
1 to 20 – $1,200 payment
21 to 50 – $2,400 payment
51 to 100 – $3,600 payment
100 + – $12,000 payment

REWARDS

• Eligible to wear National Sales Director suit
• National News Notes
• NSD bracelet
• Annual luxury trip for self and spouse
• Earn the use of a Cadillac or choose the Cash Compensation option at a rate of $1,400 per month in lieu of the car
• Family Security Program
• Opportunity to personally recruit in designated international markets
• Term Life Insurance Award Program
• Disability Award Program
• Great Futures Program
• NSD Tree of Life pin
• Limousine Service at Seminar Awards Night