STEINER LEISURE LIMITED - Steiner Leisure Ltd.

The grant date fair value for each of these awards is the dollar amount recognized by the Company forfinancial statement reporting purposes for 2007 in accordance with FAS 123R (excluding forfeiture estimates). Themethodologies and assumptions utilized in the valuation of these equity awards are set forth in Note 2(n) to theConsolidated Financial Statements of Steiner Leisure Limited and its Subsidiaries, contained in the Company'sAnnual Report on Form 10-K for the year ended December 31, 2007.The Company and Mr. Schaverien have entered into an employment agreement that expires onDecember 31, 2009. That agreement provides for the payment of an annual base salary of not less thanapproximately $208,840 and a bonus comprised of three components for 2008, described below. Under the firstcomponent, Mr. Schaverien is entitled to receive a bonus of 15% of his base salary upon the attainment by Trainingof 90% of its budgeted operating income (subject to a specified adjustment) for the year in question, as approved bythe Compensation Committee, and additional bonuses based on Training’s exceeding that 90% threshold, up to amaximum bonus of 60% of base salary. For 2007, the above bonus component was based on the net income ofTraining. Under the second component, Mr. Schaverien is entitled to receive a bonus of five percent of his basesalary upon the attainment of 90% of the budgeted earnings per share of the Company, as approved by theCompensation Committee, for the year in question and additional bonuses based on the Company's exceeding that90% threshold, including exceeding its budgeted earnings per share. For 2007, the performance target was the sameas for 2008. Under the third component, Mr. Schaverien is entitled to receive an amount equal to five percent of hisbase salary upon the attainment of 90% of the budgeted net revenue of the Company's Maritime Division for theyear in question, as approved by the Compensation Committee, and additional bonuses based on that division’sexceeding that 90% threshold, including exceeding its budgeted net revenue. For 2007, the performance measurewas budgeted net income of the Maritime Division and the threshold amount of the bonus was 15% of base salary.The balance of Mr. Schaverien’s agreement has terms that are the same or similar to those of theemployment agreements in effect for the named executives. For 2008, Mr. Schaverien will receive a base salary ofapproximately $250,113 and other benefits similar to those described above.The compensation amounts for 2007 and for the employment agreement are based on the average BritishPounds Sterling to U.S. Dollar exchange rate for 2007. The compensation amount for 2008 and the minimum basesalary amount are based on the British Pounds Sterling to U.S. Dollar exchange rate on April 10, 2008. Because heis an executive officer of the Company, the compensation payable to Mr. Schaverien (including the targets uponwhich his bonus is based) is required to be approved by the Compensation Committee of the board of directors inaddition to the Audit Committee.Compensation of Patty FluxmanSince June 11, 2006, Patty Fluxman, the wife of Leonard I. Fluxman, President and Chief ExecutiveOfficer and a director of the Company, has served, pursuant to a two-year agreement with the Company approved bythe Audit Committee, as Senior Human Resources Specialist for the Company’s Steiner Management Services LLCsubsidiary. In that capacity, she receives an annual salary of $103,500 and is not entitled to any other compensationfrom the Company. Under her agreement with the Company, Ms. Fluxman coordinates the Company's equity awardprograms and otherwise provides assistance with respect to human resources matters as requested from time to timeby the Chief Financial Officer of the Company.Compensation of Michèle Steiner WarshawMichèle Steiner Warshaw serves as Executive Vice President of the Company's Cosmetics Limitedsubsidiary. That subsidiary owns rights with respect to a number of products sold by the Company. Ms. Warshaw isa member of the board of directors of the Company and is the wife of Clive E. Warshaw. Pursuant to a five-yearemployment agreement with the Company effective January 1, 2007, Ms. Warshaw is entitled to receive a basesalary of $80,000, a fee of $1,500 for each meeting of the board of directors and a committee thereof (where invitedby that committee) attended and an annual award under the Equity Plan of restricted shares of the Company in anamount determined by dividing $50,000 by the closing price of the Company’s common shares on the date of suchaward.This agreement also provides for a payment of one year’s base salary to Ms. Warshaw in the event sheterminates the agreement after a material breach thereof or reduction in compensation or benefits by the Company, a33Bowne ID # g12968-5.pdf 37 May 2, 2008 12:16:32