Robin Blackmon-Dunda Termination Letter

From the lawsuit filed by Robin Blackmon Dunda against Mary Kay, this is the August 10, 2006 letter that Mary Kay Inc. sent to Robin, terminating her directorship and consultancy.

Dear Robin:

As you know, under the terms of the Mary Kay Independent Beauty Consultant Agreement and Independent Sales Director Agreement, either party to the Agreement has the right to terminate these Agreements between the parties upon thirty (30) days prior written notice. After careful consideration, we have decided it would be in the best interest of both parties if the Independent Sales Director and Independent Beauty Consultant Agreements between us were terminated. Accordingly, this letter will constitute notice to you that both Agreements will be terminated effective thirty (30) days from the date of this letter, effective September 9, 2006.

It is not our intention to cause anyone a financial hardship when an Agreement is terminated. Therefore, the Company offers to repurchase all repurchasable company products according to the terms and conditions of the Independent Beauty Consultant Agreement, specifically Section 6-8 of the second part of the Agreement. Under these provisions, the Company agrees to purchase, upon termination of the Agreement, at ninety percent (90%) of the Consultant’s original net cost, new and unused showcase and Section 1 products provided they were purchased by the Consultant from the Company within one (1) year prior to return. Eligible showcase and Section 1 products must be shipped freight prepaid and accompanied by a Request for Repurchase form to our Repurchase Department, 1330 Regal Row, Dallas, Texas 75247. You should note that the Company’s cost of any prizes or product bonuses awarded to a Consultant, because of an original purchase and any indebtedness the Consultant owes the Company will be deducted from the repurchase amount according to the terms of the Agreement.

We wish you well in your future endeavors.

Sincerely,

Laura M. Beitler

cc: Jo Ann Blackmon, Independent National Sales Director
Judy Musser, Consultant Records Department
Leah Cardinal, Consultant Records Department