Execution Version
LETTER WAIVER
Dated as of December 29, 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, as
amended by that certain First Amendment to Note Purchase Agreement, dated as of
August 15, 2012 (the “Note Purchase Agreement”), among Avon Products, Inc., a
New York corporation (“us” or “API”), and each of the Purchasers. Capitalized
terms not otherwise defined in this Letter Waiver have the same meanings as
specified in the Note Purchase Agreement.
We hereby request that you temporarily waive until January 31, 2013, and by
executing this Letter Waiver you hereby temporarily waive until January 31,
2013, any Default or Event of Default that may arise as of December 31, 2012 as
a result of API's inability to comply with the Interest Coverage Ratio set forth
in Section 10.1 of the Note Purchase Agreement.
This Letter Waiver shall become effective as of the date first above written
when (i) each Holder shall have received from API payment in respect of the
waiver contemplated hereby, on or before December 31, 2012, in an amount equal
to 0.125% (12.5 basis points) of the principal amount of Notes held by such
Holder, and (ii) Bingham McCutchen LLP, on behalf of each Holder, shall have
received counterparts of this Letter Waiver executed by API, reaffirmed by the
Subsidiary Guarantor and executed by Holders constituting the Required Holders.
In consideration of the payment to the Holders pursuant to this Letter Waiver
(and so long as same are paid), API and the Holders agree that, for all purposes
of Section 10.8(a) of the Note Purchase Agreement, payments of fees, except to
the extent in excess of 12.5 basis points (0.125%) expressed as a percentage of
the outstanding principal amount (in the case of term loans) or commitments (in
the case of revolving commitments), may be paid substantially concurrently
herewith in connection with amendments to the Principal Credit Facilities
outstanding on the date hereof without requiring any payment of fees to Holders
pursuant to Section 10.8(a) (and for purposes thereof such fees, except to the
extent in excess of 12.5 basis points (0.125%) as described above, shall be
ignored).
In consideration of the Holders entering into this Letter Waiver, API agrees
that, prior to January 31, 2013 (a) it shall not enter into or give effect to a
refinancing or other voluntary repayment, repurchase or material reduction of
amounts outstanding in respect of its term loan agreement dated as of June 29,
2012, as amended, and (b) if a Responsible Officer becomes aware of any event or
occurrence which would constitute a Default or Event of Default in respect of
the Interest Coverage Ratio set forth in Section 10.1 of the Note Purchase
Agreement (for this purpose, determined as if the waiver evidenced hereby was
not in effect), it shall promptly (and in any event within five Business Days
following a Responsible Officer becoming aware of same) provide Bingham
McCutchen LLP on behalf of the Holders notice thereof.
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

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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, the Subsidiary Guaranty or the Notes, or constitute a waiver of any
provision of the Note Purchase Agreement, the Subsidiary Guaranty or the Notes
except as and for the period specified herein. The entry into this Letter Waiver
for the benefit of API shall not be construed to imply that any future
amendment, consent or waiver will be granted by the Holders; the Holders reserve
all of their rights and remedies under the Note Purchase Agreement, the
Subsidiary Guaranty and the Notes, whether pursuant to contract, at law or in
equity.
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.
If you agree to the terms and provisions of this Letter Waiver, please evidence
such agreement by executing and returning a counterpart of this Letter Waiver to
Scott A. Falk, Bingham McCutchen LLP, One State Street, Hartford, CT 06103-3178
(E-mail: scott.falk@bingham.com) via physical or electronic delivery.
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.

    

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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/ Shalabh Gupta
 
 
 
Name: Shalabh Gupta
 
 
 
Title: Vice President and Treasurer

 
 
AVON CAPITAL CORPORATION
 
 
By:
/s/ Shalabh Gupta
 
 
 
Name: Shalabh Gupta
 
 
 
Title: Vice President and Treasurer

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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, INC. (F/K/A MISSOURI
 
 
REINSURANCE (BARBADOS), INC.
 
 
 
 
 
 
 
By:
/s/ Ronald D. Nirenberg
 
 
 
 
Name: Ronald D. Nirenberg
 
 
 
 
Title: Director

[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/ Eve Hampton
 
 
 
 
Name: Eve Hampton
 
 
 
Title: Vice President, Investments
 
 
 
 
 
 
 
By:
/s/ Ward Argust
 
 
 
 
Name: Ward Argust
 
 
 
Title: Manager, Investments
 
 
 
 
 
 
 
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:

 
 
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
THE GREAT-WEST LIFE ASSURANCE COMPANY
 
 
 
 
 
 
 
By:
/s/ B.R. Allison
 
 
 
 
Name: B.R. Allison
 
 
 
Title: Executive Vice-President
 
 
 
          Chief Investment Officer
 
 
 
 
 
 
 
 
By:
/s/ D.B. E. Ayers
 
 
 
 
Name: D.B. E. Ayers
 
 
 
Title: Director
 
 
 
          Bond Investments
 

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
NEW YORK LIFE INSURANCE COMPANY
 
 
 
 
 
By:
/s/ A. Post Howland
 
 
 
 
Name: A. Post Howland
 
 
 
Title: Corporate Vice President
 
 
 
 
 
 
 
NEW YORK LIFE INSURANCE AND ANNUITY
 
 
CORPORATION
 
 
 
 
 
 
 
 
 
By: New York Life Investment Management
 
 
 
LLC, Its Investment Manager
 
 
 
 
 
 
 
 
By:
/s/ A. Post Howland
 
 
 
 
Name: A. Post Howland
 
 
 
Title: Senior Director
 
 
 
 
 
 
 
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:
/s/ A. Post Howland
 
 
 
 
Name: A. Post Howland
 
 
 
Title: Senior Director
 
 
 
 
 
 
 
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:
/s/ A. Post Howland
 
 
 
 
Name: A. Post Howland
 
 
 
Title: Senior Director

  
[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
FORETHOUGHT LIFE INSURANCE COMPANY
 
 
 
 
 
By:
Prudential Private Placement Investors,
 
 
 
L.P. (as Investment Advisor)
 
 
 
 
 
 
By:
Prudential Private Placement Investors,
 
 
 
Inc. (as its General Partner)
 
 
 
 
 
 
 
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/ Alan P. Kress
 
 
 
 
Name: Alan P. Kress
 
 
 
Title: Counsel
 
 
 
 
 
 
 
By:
/s/ Clint Woods
 
 
 
 
Name: Clint Woods
 
 
 
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/ Alan P. Kress
 
 
 
 
Name: Alan P. Kress
 
 
 
Title: Counsel
 
 
 
 
 
 
 
By:
/s/ Clint Woods
 
 
 
 
Name: Clint Woods
 
 
 
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:

 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
AXA EQUITABLE LIFE INSURANCE COMPANY
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

 

[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:

 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
OHIO NATIONAL LIFE ASSURANCE CORPORATION
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
TRANSAMAERICA LIFE INSURANCE COMPANY
 
 
By: AEGON USA INVESTMENT MANAGEMENT,
 
 
LLC, ITS INVESTMENT MANAGER
 
 
 
 
 
By:

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

 
 
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
 
 
 
 
 
 
By: CIGNA Investments, Inc. (authorized agent)
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:
 
 
 
 
 
 
 
LIFE INSURANCE COMPANY OF NORTH AMERICA
 
 

 
 
 
By: CIGNA Investments, Inc. (authorized agent)
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:

 
 
ENSIGN PEAK ADVISORS, INC.
 
 
 
 
 
 
 
 
 
 
By:
/s/ Matthew D. Dall
 
 
 
 
Name: Matthew D. Dall
 
 
 
Title: Senior Portfolio Manager

[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]

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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:

 
 
S.A.C. CAPITAL ASSOCIATES, LLC
 
 
 
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]

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Agreed as of the date first above written:
 
 
CIG & CO.
 
 
 
 
 
 
 
 
 
 
By:

 
 
 
 
Name:
 
 
 
Title:

[SIGNATURE PAGE FOR LETTER WAIVER]