Exhibit 10.6

LETTER WAIVER
Dated as of July 31, 2012
To the holders of the Notes
(collectively, “you” or the “Holders”)
issued pursuant to the Note Purchase Agreement referred to below

Ladies and Gentlemen:
We refer to the Note Purchase Agreement, dated as of November 23, 2010 (the
“Note Purchase Agreement”), among Avon Products, Inc., a New York corporation
(“us” or “API”), and each of the Holders. Capitalized terms not otherwise
defined in this Letter Waiver have the same meanings as specified in the Note
Purchase Agreement.
As previously disclosed in API's annual report on Form 10-K for the year ended
December 31, 2011, in the fourth quarter of 2011, API recorded a non-cash charge
of $263 million to adjust good will and indefinite lived intangible assets
related to API's Silpada business (the “Silpada Non-cash Charge”). Due to the
Silpada Non-cash Charge, as of September 30, 2012, depending upon API's
financial result for the third quarter of 2012, API may be unable to comply with
the Interest Coverage Ratio covenant set forth in the Note Purchase Agreement.
Since it was incurred in the fourth quarter of 2011 and the Interest Coverage
Ratio under the Note Purchase Agreement is calculated based on a period of four
fiscal quarters ending on the date of determination, the Silpada Non-cash Charge
will not be relevant to calculations of the Interest Coverage Ratio for fiscal
quarters after the third quarter of 2012.
For purposes of Section 10.1 of the Note Purchase Agreement, we hereby request
that you waive, and by executing this Letter Waiver you hereby waive, the
requirement that we include in the calculation of Interest Coverage Ratio the
Silpada Non-cash Charge and permit us, solely for the calculation of the
Interest Coverage Ratio as of September 30, 2012, to add back to the
consolidated pre-tax income of API and its Consolidated Subsidiaries the Silpada
Non-cash Charge.
This Letter Waiver shall become effective as of the date first above written
when, and only when, the Holders shall have received counterparts of this Letter
Waiver executed by API, reaffirmed by the Subsidiary Guarantor and the Required
Holders, and a letter waiver under the Bank Credit Agreement executed by the
Required Banks (as defined in the Bank Credit Agreement) substantially in the
form attached hereto as Exhibit A.
The Note Purchase Agreement, the Subsidiary Guaranty and the Notes, except to
the extent of the waiver specifically provided above, are and shall continue to
be in full force and effect and are hereby in all respects ratified and
confirmed. Except as expressly provided herein, the execution, delivery and
effectiveness of this Letter Waiver shall not, operate as a waiver of any right,
power or remedy of any Holder under the Note Purchase Agreement or the
Subsidiary Guaranty, or constitute a waiver of any provision of the Note
Purchase Agreement or the Subsidiary Guaranty.
API and the Subsidiary Guarantor represent and warrant that no Default or Event
of Default has occurred and is continuing under the Note Purchase Agreement as
of the date hereof and after giving effect to this Letter Waiver.

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If you agree to the terms and provisions of this Letter Waiver, please evidence
such agreement by executing and returning at least two counterparts of this
Letter Waiver to David McMullen, Chapman and Cutler LLP, 595 Market Street, 26th
Floor, San Francisco, CA 94109.

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This Letter Waiver may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Letter Waiver by telecopier or other electronic means
shall be effective as delivery of a manually executed counterpart of this Letter
Waiver.
This Letter Waiver shall be governed by, and construed in accordance with, the
laws of the State of New York, excluding choice-of-law principles of the law of
such State that would prohibit the application of the laws of a jurisdiction
other than such State.
Very truly yours,
 
 
AVON PRODUCTS, INC.
 
 
 
 
 
 
 
By:
/s/ Richard J. Valone
 
 
 
 
Name: Richard J. Valone
 
 
 
Title: Vice President & Treasurer
 
 
 
 
 
 
 
AVON CAPITAL CORPORATION
 
 
 
 
 
 
 
By:
/s/ Richard J. Valone
 
 
 
 
Name: Richard J. Valone
 
 
 
Title: Vice President & Treasurer

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
METROPOLITAN LIFE INSURANCE COMPANY
 
 
on behalf of itself and as investment manager of:
 
 
 
 
 
METLIFE INSURANCE COMPANY OF CONNECTICUT
 
 
MISSOURI REINSURANCE (BARBADOS), INC.
 
 
 
 
 
 
 
By:
/s/ Judith A. Gulotta
 
 
 
 
Name: Judith A. Gulotta
 
 
 
Title: Managing Director

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
THE NORTHWESTERN MUTUAL LIFE INSURANCE
 
 
COMPANY
 
 
 
 
 
By:
/s/ Timothy S. Collins
 
 
 
 
Name: Timothy S. Collins
 
 
 
Title: Its Authorized Representative
 
 
 
 
 
 
 
THE NORTHWESTERN MUTUAL LIFE INSURANCE
 
 
COMPANY FOR ITS GROUP ANNUITY SEPARATE
 
 
ACCOUNT
 
 
 
 
 
 
 
By:
/s/ Timothy S. Collins
 
 
 
 
Name: Timothy S. Collins
 
 
 
Title: Its Authorized Representative

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
 
 
 
 
 
By:
/s/ Ward Clayton Argust III
 
 
 
 
Name: Ward Clayton Argust III
 
 
 
Title: Manager, Investments
 
 
 
 
 
 
 
By:
/s/ Tad Anderson
 
 
 
 
Name: Tad Anderson
 
 
 
Title: AVP, Investment
 
 
 
 
 
 
 
THE GREAT-WEST LIFE ASSURANCE COMPANY
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
NEW YORK LIFE INSURANCE COMPANY
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
NEW YORK LIFE INSURANCE AND ANNUITY
 
 
CORPORATION
 
 
 
 
 
 
 
 
 
By: New York Life Investment Management
 
 
 
LLC, Its Investment Manager
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
NEW YORK LIFE INSURANCE AND ANNUITY
 
 
CORPORATION INSTITUTIONALLY OWNED LIFE
 
 
INSURANCE SEPARATE ACCOUNT (BOLI 30C)
 
 
 
 
 
 
 
 
By: New York Life Investment Management
 
 
 
LLC, Its Investment Manager
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
NEW YORK LIFE INSURANCE AND ANNUITY
 
 
CORPORATION INSTITUTIONALLY OWNED LIFE
 
 
INSURANCE SEPARATE ACCOUNT (BOLI 30E)
 
 
 
 
 
 
 
 
By: New York Life Investment Management
 
 
 
LLC, Its Investment Manager
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
FORETHOUGHT LIFE INSURANCE COMPANY
 
 
 
 
 
 
By: New York Life Investment Management
 
 
 
LLC, Its Investment Manager
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
RGA REINSURANCE COMPANY, a Missouri corporation
 
 
 
 
 
By: Principal Global Investors, LLC, a Delaware
 
 
 
limited liability company, its authorized
 
 
 
signatory
 
 
 
 
 
 
 
 
By:
/s/ Adrienne L. McFarland
 
 
 
 
Name: Adrienne L. McFarland
 
 
 
Title: Counsel
 
 
 
 
 
 
 
By:
/s/ James C. Fifield
 
 
 
 
Name: James C. Fifield
 
 
 
Title: Assistant General Counsel
 
 
 
 
 
 
 
SYMETRA LIFE INSURANCE COMPANY, a Washington
 
 
corporation
 
 
 
 
 
By: Principal Global Investors, LLC, a Delaware
 
 
limited liability company, its authorized signatory
 
 
 
 
 
 
 
By:
/s/ Adrienne L. McFarland
 
 
 
 
Name: Adrienne L. McFarland
 
 
 
Title: Counsel
 
 
 
 
 
 
 
By:
/s/ James C. Fifield
 
 
 
 
Name: James C. Fifield
 
 
 
Title: Assistant General Counsel

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
NATIONWIDE LIFE INSURANCE COMPANY
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
 
 

 
 
By: Babson Capital Management LLC, as Investment Advisor
 
 

 
 
 
 
 
 
 
By:
/s/ Elisabeth A. Perenick
 
 
 
 
Name: Elisabeth A. Perenick
 
 
 
Title: Managing Director

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
MONY LIFE INSURANCE COMPANY
 
 

 
 
By:
/s/ Amy Judd
 
 
 
 
Name: Amy Judd
 
 
 
Title: Investment Officer
 
 
 
 
 
AXA EQUITABLE LIFE INSURANCE COMPANY
 
 

 
 
By:
/s/ Amy Judd
 
 
 
 
Name: Amy Judd
 
 
 
Title: Investment Officer

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
UNITED OF OMAHA LIFE INSURANCE COMPANY
 
 

 
 
 
 
 
 
 
By:
/s/ Justin P. Kavan
 
 
 
 
Name: Justin P. Kavan
 
 
 
Title: Vice President

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
THE OHIO NATIONAL LIFE INSURANCE COMPANY
 
 

 
 
By:
/s/ Jed R. Martin
 
 
 
 
Name: Jed R. Martin
 
 
 
Title: Vice President, Private Placements
 
 

 
 
OHIO NATIONAL LIFE ASSURANCE CORPORATION
 
 
 
 
 
 
 
By:
/s/ Jed R. Martin
 
 
 
 
Name: Jed R. Martin
 
 
 
Title: Vice President, Private Placements

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
TRANSAMAERICA LIFE INSURANCE COMPANY
 
 

 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
TRANSAMERICA PACIFIC INSURANCE COMPANY LTD
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
 
 
 
 
 
By: CIGNA Investments, Inc. (authorized agent)
 
 
 
 
 
By:
/s/ Deborah B. Wiacek
 
 
 
 
Name: Deborah B. Wiacek
 
 
 
Title: Senior Managing Director
 
 
 
 
 
 
 
LIFE INSURANCE COMPANY OF NORTH AMERICA
 
 
 
 
 
By: CIGNA Investments, Inc. (authorized agent)
 
 
 
 
 
 
 
By:
/s/ Deborah B. Wiacek
 
 
 
 
Name: Deborah B. Wiacek
 
 
 
Title: Senior Managing Director

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
FARM BUREAU LIFE INSURANCE COMPANY
 
 

 
 
By:
/s/ Herman L. Riva
 
 
 
 
Name: Herman L. Riva
 
 
 
Title: Securities Vice President
 
 
 
 
 
 
 
EQUITRUST LIFE INSURANCE COMPANY
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
AMERITAS LIFE INSURANCE CORP.
 
 
ACACIA LIFE INSURANCE COMPANY
 
 
THE UNION CENTRAL LIFE INSURANCE COMPANY
 
 

 
 
By: Summit Investment Advisors Inc., as Agent
 
 
 
 
 
 
 
By:
/s/ Andrew S. White
 
 
 
 
Name: Andrew S. White
 
 
 
Title: Managing Director - Private Placements

[SIGNATURE PAGE FOR LETTER WAIVER]