Inaugural Incentive Trip

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Quick Reference Chart Points Needed to Earn The Incentive Trip TOTAL Minimum Points Needed to Be In The Running Inaugural Incentive Trip Minimum Points of the total that must be earned through Sponsoring 20,000 5,000 10,000 Minimum Points of the total that must be earned through Personal Volume (PV) How to Earn Qualification Points Personal Volume $1 PV 1 qualification point Personally Sponsored Designer For each personally sponsored Designer who enrolls between October 1, 2017 and May 31, 2018 (by 11:59 pm MT), AND who earns at least 300 PV and is considered an active Designer by the end of the qualification period Title Promotion Leading Designer 500 Master Designer 500 Mentor 1,000 Leading Mentor 1,000 Master Mentor 1,000 Couturier, Executive Couturier, or Master Couturier 2,000 300 per qualifying new Designer

What is the incentive trip? The first inaugural incentive trip for Chalk Couture is a cruise to the Western Caribbean! It will be aboard the Royal Caribbean Adventure of the Seas cruise ship and includes 3 ports of call to George Town, Grand Cayman; Puerto Costa Maya, Mexico; and Cozumel, Mexico. What are the dates of the trip? October 21-27, 2018 What city does the Incentive Trip depart from? Departs from Fort Lauderdale, FL at 5:30 PM (ET) Day # Day of the Week Port Location Arrival Time Departure Time 1 Sunday Fort Lauderdale, FL 5:30 PM 2 Monday Cruising 3 Tuesday George Town, Grand Cayman 7:00 AM 3:30 PM 4 Wednesday Puerto Costa Maya, Mexico 11:00 AM 7:00 PM 5 Thursday Cozumel, Mexico 8:00 AM 5:00 PM 6 Friday Cruising 7 Saturday Fort Lauderdale, FL 5:30 AM *Above itinerary (port, dates & times) is subject to change What is included in the Incentive Trip? Depending on those who achieve the Incentive trip and the level earned, you will have a trip for you and a guest, including the cruise to the Western Caribbean aboard the Royal Caribbean Adventure of the Seas and potential airfare for you and your guest (up to $600 per person per ticket). How can I earn this Incentive Trip? Simply be one of the top achieving Designers with the most points as outlined in the plan below during the earning period. How many Designers will earn the trip? The top 30 Designers with the most points will earn the trip. The top point earner will receive an upgraded balcony stateroom for them and a guest. Top earners 2-15 will earn the cruise plus airfare for two. The next 15 Designers (earners 16-30) will earn the cruise only for two, and will need to provide their own transportation to the port for them and their guest. Inaugural Incentive Trip Page 2

Who is eligible to earn the Incentive Trip? All active Designers are eligible to participate in earning one of the 30 spots on the Incentive Trip. You must be an active Designer to qualify and an active Designer at the time of the cruise to attend. When does the earning period start and end? The earning period begins on October 1, 2017, and ends on May 31, 2018. When will the Final Achievers be announced? Cruise earners will be announced after the commissions for May 2018 are calculated, approximately June 15, 2018. How can I track my points during the earning period? A leaderboard will show who our top 60 point earners are each month along with their total qualification points so you can compare your progress to the points shown. Leaderboard will be updated only once a month following commission calculation (Leaderboard will be updated on approximately the 20th of each month). The total points will include pending points for Sponsoring. Pending points will not be finalized until the end of the entire qualification period (June 15 commission calculation). Any Sponsoring points awarded for a new team member who is not active at the end of the qualification period will be deleted from the total points at the end of the program period (June 15). We encourage every Designer to track their own progress for real-time pacing. Where can I find that Leaderboard? A leaderboard will be made available for you to view with a listing of the top achievers month to month. Watch the weekly email for more details on when the leaderboard will be available to view. When is the qualification period? Earn incentive trip qualification points between October 1, 2017, and May 31, 2018. The deadline to earn Personal Volume (PV) is May 31, 2018, at 11:59 pm (MT). The qualification deadline for Sponsoring is also May 31, 2018, and your personally sponsored Designer must earn at least 300 PV and be considered an active Designer by May 31, 2018 at 11:59pm (MT) for them to count toward your qualification point totals. Qualification totals will be finalized when commissions are totaled and are subject to change until that time. How many qualification points do I need to earn? To be in the running for earning the trip, you need to earn at least the following minimum points: TOTAL Minimum Points Needed to Be In The Running Minimum Points of the total that must be earned through Sponsoring 20,000 5,000 10,000 Minimum Points of the total that must be earned through Personal Volume (PV) Inaugural Incentive Trip Page 3

The top 30 Designers with the most points at the end of the qualification period will earn the trip as described above. Designers must earn the minimum points with a portion as noted above from activities other than just personal sales (PV) or just sponsoring to be eligible. How do I earn the cruise? A combination of sales (PV), sponsoring and building your team, and title promotion. Monthly Sales: For every point you earn in PV, you will earn one qualification point toward the incentive trip. Personal Volume Qualification Points $1 PV 1 qualification point Building a Team/Personally Sponsoring Designers must be personally sponsored by you. See chart below for more details: Personally Sponsored Designer For each personally sponsored Designer who enrolls between October 1, 2017 and May 31, 2018 (by 11:59 pm MT), AND who earns at least 300 PV and is considered an active Designer by the end of the qualification period Qualification Points 300 per qualifying new Designer Title Promotion When you personally promote to the following titles for the first time during the qualification period, you will receive the following qualification points: Title Promotion Leading Designer 500 Master Designer 500 Mentor 1,000 Leading Mentor 1,000 Master Mentor 1,000 Couturier, Executive Couturier, or Master Couturier 2,000 Qualification Points You may receive points for every first-time title promotion you receive during the qualification period. For example: Jenny promotes to Master Designer in December and Mentor in February, earning a total of 1,500 trip qualification points during the period. Inaugural Incentive Trip Page 4

FAQs About the Qualification Points If I achieve a title, lose it, and then achieve it again during the qualification period, do i earn points for the trip? Yes. Only the first time you achieve the title during the qualification period you will earn qualification points for the incentive trip. Can a new Designer earn the cruise? Yes! Just as long as the new Designer is active and has earned the minimum required points to achieve the incentive trip they have the potential to earn the cruise through being one of the top 30 qualifiers. Can qualification points be transferred from one Designer to another? No. The qualification points are non-transferrable. If I have a team roll up to me will they count as new sponsored Designer? No. What if a Designer who earns the trip is unable to go? If one of the top 30 Designers who earns the trip is unable to attend, then the Designer with the next highest points earned will be invited to attend. Can I earn all of my points for the Incentive Trip through Personal Volume (PV)? Or just for Sponsoring? No. A portion of the points must each be earned for Sponsoring and a portion of the points for Personal Volume (a minimum of 5,000 points for Sponsoring, and 10,000 points for PV). FAQs About the Incentivc Trip What is covered in the trip? If you earn the trip for yourself and a guest, Chalk Couture will cover the cost of airfare for you and your guest (up to $600 per person), two fares aboard the Royal Caribbean cruise ship (ocean view), and transportation for you and your guest to and from the airport and the cruise ship. If you earn the trip without airfare, Chalk Couture will cover your fare aboard the Royal Caribbean cruise ship (ocean view cabin), but Airfare is the responsibility of the cruise earner. You may use the airport-port transfers arranged by Chalk Couture (provided your flights correspond with the arrival/departure dates and times of other cruisers and you have coordinated your flights with our travel agent partner.) The top point achiever will earn a trip for themselves and a guest, airfare for both (up to $600 per person), transportation for you and your guest to and from the airport and the cruise ship, and an upgraded balcony stateroom aboard the Royal Caribbean cruise ship. Inaugural Incentive Trip Page 5

Who am I allowed to bring with me as my guest? Anyone 18 years of age or older who is a non-chalk Couture Designer. Can I bring my children on the trip? This is an adult-only trip and children under the age of 18 will not be allowed to participate. In addition, for safety concerns, Royal Caribbean prohibits women who are 24 weeks pregnant or greater anytime during the cruise and infants six months of age or less passage on the ship. Will Chalk Couture cover the cost of a hotel stay in Fort Lauderdale, Florida? No. If you are interested in arriving a day before the cruise, or if the only available flight from your preferred home airport arrives after the cruise ship leaves the port, you may arrange to get a hotel for yourself (and guest) through our travel partner. Our travel partner will be negotiating a block of rooms at an affordable rate where many cruisers will choose to stay. However, you will be responsible to cover the cost of the hotel stay as well as transportation from your hotel to the cruise ship. Is a passport required for this Incentive Trip? Yes. You will need to have a current passport for you (and your guest) in order to take this incentive trip. If you do not have one, we recommend that you get one as soon as you think you might earn this trip. Passports can take anywhere from 60-90 days or more to secure. Designers are responsible for obtaining in time and the fees associated with getting a passport. Where can I learn more about the incentive trip cruise and the excursions? Our travel partner, Morris Meetings & Incentives, will provide a website that will showcase the amazing Royal Caribbean Cruise, the ports of call, the potential excursions you can take, and more details. You can begin viewing the website even before the earning period is over. That website will be available to view in late November 2017. Are excursions paid for as part of this trip? No. Cost of excursions are not covered by Chalk Couture. If you would like to do an excursion at each port of call you can arrange it through our travel partner at the time of your booking. Costs for any and all excursions must be covered by the Designer. Excursion information will be available on the Incentive Trip website when available. What if I can t attend the cruise, will I receive a payout instead? No. You will be recognized for earning the cruise, however, there is no cash value of earning and not attending. Instead, we will take the next Designer on the list with the most points on the cruise. If you are an earner and unable to attend the Incentive Trip, you must advise Chalk Couture no later than June 20 or commit to the trip by that date. What happens in case of inclement weather? While cases of inclement weather are rare, Royal Caribbean takes care to watch weather patterns via satellite well in advance. We will notify you as soon as possible if there are any changes to the travel itinerary because of inclement weather. Inaugural Incentive Trip Page 6

When can I begin booking my trip? We will notify the earners of the Incentive Trip following the May 2018 commission calculations (after approximately June 15). Once notified, the initial booking will require that you visit the Incentive Trip website, provided by our travel partner, and complete an initial setup. This requires information about you (and guest), passport info, and excursion preferences. Our travel partner, Morris Meetings & Incentives, will then contact each earner after receiving the initial information and begin the process of booking. Deadline to register for the Incentive Trip is July 30, 2018. No exceptions will be made for late registration. Can I choose which airline/airport I leave from and return to? Our Travel Agency will work with you to help select the best airport to travel to and from. However, airline will be determined by most economical and time-advantaged travel (for group arrival). You will not be able to select your airline, and all flights will be booked in coach/economy class and may not be upgraded for paid airfare earners. What if my flight costs more than $600? Chalk Couture covers the cost for each earner and for those who qualified to have a guest up to $600 per round-trip airfare. Any additional cost, including upgrades, will need to be covered by the Designer. What if my flight costs less than $600, will I be given the difference? No. Chalk Couture will cover the costs up to $600. If your flight is less, there is no cash refund. Chalk Couture and our travel partner reserves the right to select the lowest-price airfare even when multiple airlines offer fares at or below $600. Can I check a bag? The airfare allocated is to cover the cost of the flight. Checking bags will generally be an additional cost to the Designer and the cost to check a bag will depend on the airline selected. What type of room on the cruise ship will we have? Each earner will get to stay in an ocean view cabin on the ship with the exception being that our top earner will be in balcony stateroom. Can I upgrade to a different cabin on the ship? No. We have negotiated a great block of rooms that will also allow our group to be closer together. Will the Designer with the highest points earned receive an automatic upgrade to their room? YES! The Designer with the highest points earned will automatically be upgraded to a balcony stateroom. Is a beverage package included on this Incentive Trip? Designers will have the opportunity to purchase a beverage package for the trip at their own cost. This can be done on the ship or before with our travel partner. Inaugural Incentive Trip Page 7

Miscellaneous FAQs Will I be provided any documentation for tax purposes for earning this trip? You will receive a 1099 by January 31, 2019 that will include the value of the trip in the compensation box of the form. What should I look forward to while on this incentive trip? There is a lot to look forward to while on this incentive trip. Chalk Couture will host an opening social the night you board the ship, a business training presented by corporate staff, gifts sent to your room, mingling with other Designers and corporate staff, and more! Inaugural Incentive Trip Page 8