Document:

Exhibit

Exhibit 10.3

[Avon Letterhead]
Mr. Jan Zijderveld
Chief Executive Officer
Avon Products, Inc.
Dear Jan:
In accordance with your contract of employment, dated as of February 3, 2018, with Avon Cosmetics Limited (the “Employment Contract”), Avon Products, Inc. (the “Company”) has granted you a sign-on award of performance-contingent restricted stock units (the “PRSUs”), effective March 27, 2018 (the “Grant Date”).  The PRSUs are subject to the terms and conditions set forth in this Sign-On Performance-Contingent Restricted Stock Unit Award Agreement (this “Agreement”) and the accompanying grant notifications (the “Grant Notifications”).  Please indicate your acceptance of this award by signing this Agreement and returning your signature to the General Counsel of the Company.
		
	1.
	Grant of Performance-Contingent Restricted Stock Unit Award.  The target number of PRSUs granted hereunder is 600,000.  The actual number of PRSUs that are delivered to you will depend on the satisfaction of the service-vesting and performance-vesting conditions described below.  Each PRSU represents the right to receive one share of Stock (“Share”), upon satisfaction of the vesting and other terms and conditions of this Agreement.  The PRSUs are being awarded to you hereunder outside of the Company’s 2016 Omnibus Incentive Plan (the “Plan”). Notwithstanding that this award is made outside of the Plan, except as otherwise expressly provided in this Agreement and other than as to the Share limitations of Section 5 of the Plan, this Agreement will be interpreted in a manner consistent with the terms of the Plan and all such terms will be deemed to be incorporated into and made a part of this Agreement.  All capitalized terms used in this Agreement shall have the meaning set forth in the Plan, unless otherwise defined herein.

2.Nature of PRSUs; Issuance of Shares.  
As described above, the PRSUs represent a right to receive Shares on the Settlement Date (as defined below) but do not represent a current interest in the Shares.  If all the terms and conditions of this Agreement and the Grant Notifications are met, then you shall be issued Shares on the Settlement Date.  Notwithstanding the foregoing, the Committee reserves the right to determine to settle all or a portion of your vested PRSUs in cash, in lieu of Shares.  Any such cash payment will equal (x) the Fair Market Value of a Share as of the Settlement Date multiplied by (y) the number of vested PRSUs the Committee determines to settle in cash.

Exhibit 10.3

You should be aware that vesting of the PRSUs will, to the extent settled in Shares, result in the ownership of Shares and will require you to open and use a U.S. brokerage account.  You will personally be responsible for any local compliance requirements in relation to all of the above transactions.  These requirements may change from time to time, and the Company cannot guarantee that you will be able to receive Shares on the Settlement Date.  Moreover, the Company is not liable for any decrease of value of the Shares.
		
	1.
	Restrictions on Transfer of PRSUs.  The PRSUs may not be sold, tendered, assigned, transferred, pledged or otherwise encumbered.

2.Vesting of PRSUs; Voting; Dividends.
(a)Vesting of the PRSUs is contingent on (i) subject to Section 5, your continuous employment by the Company or any of its Subsidiaries through December 31, 2020 and (ii) satisfaction of the performance objectives described in your Grant Notifications (the “Performance Objectives”) in respect of calendar years 2018, 2019 and 2020 (each, a “Performance Period”), as described further below.
		
	(i)
	One-third of the target number of PRSUs granted hereunder shall be allocated to each Performance Period (i.e., 200,000 target PRSUs shall be allocated to 2018; 200,000 target PRSUs shall be allocated to 2019; and 200,000 target PRSUs shall be allocated to 2020).  You will have an opportunity to earn up to 150% of the target PRSUs allocated to each Performance Period, based on achievement of the Performance Objectives relating to such Performance Period. 

		
	(ii)
	In the first quarter of each Performance Period, the Committee will establish the Performance Objectives for that Performance Period.  You will be issued a Grant Notification for each of 2018, 2019 and 2020, which will set forth the Performance Objectives for that Performance Period.  

		
	(iii)
	The determination of achievement of the Performance Objectives for any Performance Period shall be subject to the Committee’s certification of such results.  

(b)Provided that you remain in continuous employment by the Company or any of its Subsidiaries through December 31, 2020, the aggregate number of PRSUs determined by the Committee to be earned in respect of each Performance Period shall be delivered to you within the first 60 days of calendar year 2021 (and in no event later than March 15, 2021) (such date, the “Settlement Date”), in the form of cash or Shares as described in Section 2. 
(c)You do not have the right to vote any of the Shares underlying your PRSUs or to receive dividends on them prior to the date such Shares are issued to you pursuant to the terms hereof.

3.Termination of Employment.  This Section 5 sets forth the treatment of your PRSUs upon the termination of your employment with the Company and its Subsidiaries.  For purposes of this Agreement, “Employer” means the Company and its Subsidiaries (including Avon Cosmetics Limited, which is the Company’s wholly-owned Subsidiary that employs you as of the date hereof).
(a)Qualifying Termination; Disability; Death.  If, prior to December 31, 2020, your employment with the Company and its Subsidiaries is terminated (x) due to a Qualifying Termination (as defined in the Employment Contract), (y) by the Company and its Subsidiaries due to Disability (as defined in the Employment Contract) or (z) due to your death, then a number of PRSUs will vest, equal to the sum of (i) with respect to any Performance Period ending prior to the termination date, the target PRSUs allocable to such Performance Period as adjusted for actual achievement of the Performance Objectives applicable to such Performance Period, as determined by the Committee in accordance with Section 4, and (ii) with respect to the Performance Period in which such termination occurs and any subsequent Performance Period, a number of PRSUs equal to (A) the target PRSUs allocable to such Performance Period(s) (i.e., assuming target level performance) multiplied by (B) a fraction, the numerator of which is the number of completed months in the Performance Period in which such termination occurs that you worked prior to such termination, and the denominator of which is the total number of months in the Performance Period in which such termination occurs and any subsequent Performance Periods.  Such vested PRSUs shall be settled in cash or Shares in the manner set forth in Section 2, within sixty (60) days after such termination.
(b)Terminations Causing Forfeiture.  All PRSUs are immediately forfeited upon (i) an involuntary termination of your employment by the Employer for Cause prior to December 31, 2020 or (ii) a voluntary resignation by you (other than for Good Reason (as defined in the Employment Contract)) prior to December 31, 2020.
(c)Change in Control.  Notwithstanding any other provision of this Agreement, in the event of a Change in Control, the vesting and settlement of the PRSUs shall be governed by the provisions of the Plan regarding a Change in Control (as in effect on the date hereof) as if the PRSUs were granted under the Plan, and such provisions of the Plan are incorporated herein by reference; provided, however, that for purposes of the PRSUs, the definition of “Good Reason” in the Employment Contract shall apply in lieu of the definition of “Change in Control Good Reason” set forth in the Plan.
(d)Paid or Unpaid Leave of Absence.  For purposes of determining the vesting of PRSUs under this Agreement, a paid or unpaid leave of absence that has been approved by the Committee shall not constitute a termination of your employment with the Company and its Subsidiaries; provided, if the Company elects to place you on Garden Leave during any 

Exhibit 10.3

mandatory notice period under the Employment Contract, your PRSUs shall cease to vest as of the date immediately prior to such Garden Leave.  During such paid or unpaid leave of absence, until a termination of your employment with the Company and its Subsidiaries occurs, the PRSUs shall continue to vest as set forth in this Agreement and the Grant Notifications.

4.Non-Competition/Non-Solicitation/Non-Disclosure.  
You agree that, during your employment and for a period of one year after your termination of employment with the Company and its Subsidiaries for any reason whatsoever (including Retirement or Disability), you shall not, without the prior written consent of the Committee, engage in any of the following activities:
(a)directly or indirectly engage or otherwise participate in any business which is competitive with any significant business of the Company or any Subsidiary, including without limitation, your acceptance of employment with, entrance into a consulting or advisory arrangement with, rendering services to or otherwise facilitating the business of Amway Corp./Alticor Inc., Amore Pacific, Arabela, Arbonne, Beiersdorf (Nivea), COTY, De Millus S.A., Ebel Int’l/Belcorp Corp., Elizabeth Arden, Faberlic, Herbalife Ltd., Inter Parfums, Jequiti, Lady Racine/LR Health & Beauty Systems GmbH, LG Health & Household, L’Occitane, L’Oréal Group/Cosmair Inc., Mary Kay Inc., Mistine/Better Way (Thailand) Co. Ltd., Natura Cosmetics S.A., Neways Int’l, NuSkin Enterprises Inc., O Boticário, Oriflame Cosmetics S.A., Origami Owl, Reckitt Benckiser PLC, Revlon Inc., Rodan & Fields, Shaklee Corp., Shiseido, Stella & Dot, Silpada, The Body Shop Int’l PLC, The Estée Lauder Companies Inc., The Procter & Gamble Company, Tupperware Corp., Unilever Group (N.V. and PLC), Vorwerk & Co. KG/Jafra Worldwide Holdings (Lux) S.à.R.L. Inc., Yanbal Int’l (Yanbal, Unique), Younique or any of their affiliates; or
(b)solicit or aid in the solicitation of any employees of the Company or any Subsidiary to leave their employment.
In addition, you shall not, unless compelled pursuant to an order of a court or other body having jurisdiction over such matter, communicate or divulge any secret or confidential information, knowledge or data, including without limitation any trade secrets, relating to the Company or a Subsidiary, and their respective businesses, obtained by you during your employment by the Company or a Subsidiary and which is not otherwise publicly known (other than by reason of an unauthorized act by you), to anyone other than the Company and those designated by it.
In the event the Company determines that you have breached any term of this Section 6 or any non-disclosure, non-compete or non-solicitation covenant set forth in any individual agreement between you and the Company or one of its Subsidiaries, or any Company policy, then in addition to any other remedies the Company may have available to it, unless otherwise determined by the Committee:  (i) all unvested PRSUs granted hereunder shall be forfeited;  (ii) all vested but not yet settled PRSUs granted hereunder shall be forfeited; (iii) if Shares have been issued to you in respect of all or a portion of the vested PRSUs hereunder, then you shall forfeit all such Shares so issued to you hereunder; and (iv) if cash has been paid to you in lieu of Shares in respect of all or a portion of the vested PRSUs hereunder, then you shall pay to the Company all such cash so paid; provided, however, that if you no longer hold Shares issued to you hereunder, then you shall pay to the Company in cash the Fair Market Value of the Shares issued to you hereunder, determined as of the date of such issuance.
Notwithstanding anything in this Section 6 to the contrary, this Agreement is not intended to, and shall be interpreted in a manner that does not, limit or restrict you from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the U.S. Securities Exchange Act of 1934).
		
	5.
	Recoupment.  Except where void by law and unless otherwise determined by the Committee, the PRSUs, and any Shares or cash issued upon settlement of any vested PRSUs, are subject to forfeiture and/or recoupment in the event that you have engaged in misconduct, including:  (x) a serious violation of the Company’s Code of Conduct; or (y) a violation of law within the scope of your employment with the Company and its Subsidiaries.  All PRSUs hereunder are also subject to the Company’s Compensation Recoupment Policy.

6.Service Acknowledgments.  
You acknowledge and agree as follows:
(a)The execution and delivery of this Agreement and the granting of the PRSUs hereunder shall not constitute or be evidence of any agreement or understanding, express or implied, on the part of the Company or its Subsidiaries to employ you for any specific period.
(b)The award of the PRSUs hereunder is a voluntary one-time grant, and does not entitle you to any benefit other than that specifically granted under this Agreement, or to any future grants or other benefits under the Plan or any similar plan, even if PRSUs have ever been granted in the past or have repeatedly been granted in the past. Any benefits granted under this Agreement and under the Plan are extraordinary and not part of your ordinary or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service 

Exhibit 10.3

payments, bonuses, long-service awards, pension, welfare or retirement benefits or similar payments, and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any of its Subsidiaries.
(c)Nothing in this Agreement shall confer upon you any right to continue in the service of the Company or a Subsidiary or interfere in any way with any right of the Company or a Subsidiary to terminate your employment at any time, subject to applicable law.
(d)You are accepting the PRSUs and entering into this Agreement voluntarily.
(e)The Plan may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan.
(f)All decisions with respect to future PRSUs or other grants will be at the sole discretion of the Committee, subject to the terms of the Employment Contract.
(g)The future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty.  The value of the Shares may increase or decrease.
(h)Neither the Company nor any Subsidiary is providing any tax, legal or financial advice or making any recommendations regarding this award.
(i)In consideration of the grant of the PRSUs, (i) you shall have no claim or entitlement to compensation or damages arising from (x) forfeiture of the PRSUs resulting from termination of your service (for any reason whether or not in breach of local law) or otherwise pursuant to the terms of this Agreement or (y) diminution in value of the PRSUs or Shares issued upon settlement of the PRSUs and (ii) you irrevocably release the Company and its Subsidiaries from any such claim that may arise.  If, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen then, by accepting the PRSUs, you shall be deemed irrevocably to have waived your entitlement to pursue such a claim.
(j)Any notice period mandated under applicable law shall not be treated as service for the purpose of determining satisfaction of the service-vesting conditions of the PRSUs, and your right to vesting of Shares in settlement of the PRSUs after termination of service, if any, will be measured by the date of termination of your active service and will not be extended by any notice period mandated under applicable law.  In contrast, any notice period mandated under the Employment Contract shall be treated as service for the purpose of determining the service-vesting conditions of the PRSUs; provided, if the Company elects to place you on Garden Leave during such notice period, your PRSUs shall cease to vest as to service-vesting conditions as of the date immediately prior to such Garden Leave.  Subject to the foregoing and the provisions of the Plan which are incorporated herein by reference, the Company, in its sole discretion, shall determine whether your service has terminated and the effective date of such termination.
(k)The grant of PRSUs will not be interpreted to form an employment contract or employment relationship with the Company or any of its Subsidiaries that does not otherwise exist.

7.Data Privacy Acknowledgment and Consent.  
By signing this Agreement, you acknowledge and agree that in order to implement, manage and administer this award and/or in connection with tax or other governmental and regulatory compliance activities directly or indirectly related to the PRSUs, the Company and/or an entity belonging to the Company’s group of companies (including your employer) may need to process your personal data (electronically or otherwise), including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or other equity securities or directorships held in the Company, details of all PRSUs or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding in your favor (the “Personal Data”).  The transfer of Personal Data to and collection by third-party service providers outside the Company’s group of companies, such as the Company’s authorized agent, may also be necessary in order to implement, manage and administer this award.
You expressly and unambiguously consent to the collection, use and processing of Personal Data by the Company, entities belonging to the Company’s group of companies, and third-party service providers.  You understand that the Company may transfer your Personal Data to the United States, or other countries which may have a different or lower level of data protection law than your home country and which are not considered by the European Commission to have data protection laws equivalent to the laws in your country.  The Company therefore maintains an EU-US Privacy Shield certification to protect your data consistent with data protection laws of the European Union. 
In addition, you expressly and unambiguously consent to the disclosure of Personal Data to, and processing by, a third party in the event of any potential or actual reorganization, merger, sale, joint venture, assignment, transfer or other disposition of all or any portion of the Company’s  business, assets or stock (including in connection with any bankruptcy or similar proceedings); and as the Company believes necessary or appropriate: (a) under applicable law, including laws outside of your country; (b) to comply with legal processes;  and (c) to respond to requests from public and government authorities including public and government authorities outside of your country.

Exhibit 10.3

You authorize the recipients to receive, possess, use, retain and transfer the Personal Data, in electronic or other form, for the purposes of implementing, managing and administering this award, including any requisite transfer of such Personal Data as may be required to a broker or other third party with whom you may elect to deposit any Shares acquired upon settlement of the PRSUs.  You understand that Personal Data will be held only as long as is necessary to implement, manage and administer this award unless a longer retention period is required by applicable laws, regulations, rules or valid requests or orders of a court or other dispute resolution forums or of a governmental or public authority, in each case, including those of a court or other dispute resolution forums or of a governmental or public authority outside of your country.  You understand that you may, at any time, view Personal Data, request additional information about the storage and processing of Personal Data, require any necessary amendments to Personal Data or refuse or withdraw the consents herein , in any case without cost, by contacting in writing your local stock program coordinator.
If you do not consent, or if you later seek to revoke your consent, your employment status or career with the Company or Subsidiary will not be adversely affected; the only adverse consequence of refusing or withdrawing your consent is that the Company would not be able to grant this award or other equity awards, or manage or administer such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to receive equity awards.  For more information on the consequences of your refusal to consent or withdrawal of consent, you may contact your local stock program coordinator.
The Company will take reasonable measures to keep the Personal Data private, confidential and accurate. You may obtain details with respect to the collection use, processing and transfer of your Personal Data in relation to this award and may also request a list with names and addresses of potential recipients of the Personal Data and/or access to and updates of such Personal Data, if needed, by contacting your local stock program coordinator.
		
	8.
	Responsibility for Taxes.  

By accepting this grant, you hereby irrevocably elect to satisfy any taxes and social insurance contribution withholding required to be withheld by the Company or its Subsidiaries on the date of grant or vesting of the PRSUs or the date of delivery or sale of any Shares hereunder or on any earlier date on which such taxes or social insurance contribution withholding may be due (“Tax Liability”) by authorizing the Company and any of its Subsidiaries to withhold a sufficient number of Shares that would otherwise be deliverable to you upon settlement of the PRSUs (or, if the PRSUs are settled in cash in lieu of Shares, an amount of cash sufficient to satisfy the Tax Liability).  If, for any reason, the Shares or cash that would otherwise be deliverable to you upon settlement of the PRSUs would be insufficient to satisfy the Tax Liability, the Company and any of its Subsidiaries are authorized to withhold an amount from your wages or other compensation sufficient to satisfy the Tax Liability. Furthermore, you agree to pay the Company or its Subsidiaries any amount of the Tax Liability that cannot be satisfied through one of the foregoing methods.
Notwithstanding the foregoing, if, on the applicable Settlement Date or on any earlier date on which the Tax Liability may be due, the delivery of Shares is not made for any reason, you hereby irrevocably elect to satisfy such Tax Liability by delivering cash to the Company in an amount sufficient to satisfy such Tax Liability.
Apart from any withholding obligations that may apply to the Company and/or its Subsidiaries, you acknowledge and agree that the ultimate responsibility for the Tax Liability is and remains with you.  You further acknowledge that:  (x) the Company and its Subsidiaries make no representations or undertakings regarding the Tax Liability; (y) the Company and its Subsidiaries do not commit to structure the terms of the grant or any other aspect of the PRSUs to reduce or eliminate the Tax Liability; and (z) you should consult a tax adviser regarding the Tax Liability.
You acknowledge that the Company and its Subsidiaries shall have no obligation to deliver Shares until the Tax Liability has been fully satisfied by you.
		
	9.
	U.S. Internal Revenue Code Section 409A.  If you are subject to U.S. Internal Revenue Code Section 409A (“Section 409A”), then the following provisions shall apply: 

(a)Any provision, application or interpretation of this Agreement that is inconsistent with Section 409A shall be disregarded.  In no event shall the Company, any of its affiliates, any of its agents, or any member of the Board have any liability for any taxes, interests or penalties imposed in connection with a failure of this Agreement to comply with Section 409A.
(b)If (i) any payment hereunder is a non-exempt amount payable under a “nonqualified deferred compensation plan” (as defined in Section 409A) upon a “separation from service” (as defined in Section 409A) (other than death), and (ii) you are a “specified employee” (as that term is defined in Section 409A and pursuant to procedures established by the Company) on the date of such separation from service, then any Shares or cash payable pursuant to the PRSUs on account of such separation from service (other than death) will not be paid to you during the six-month period immediately following such 

Exhibit 10.3

separation from service.  Instead, the Shares or cash that would have been payable pursuant to the PRSUs on account of your separation from service shall be paid no earlier than the first day of the seventh month following your separation from service.

10.United Kingdom Specific Provisions.  The following provisions apply to you as a resident of the United Kingdom.  Please appreciate that the information contained in this Section 12 is general in nature and may not apply to your particular situation, and the Company is not in a position to assure you of any particular result.  Accordingly, you are advised to seek appropriate professional advice as to how the relevant laws of your home country may apply to your situation.  You further understand and agree that if you are a citizen or resident of a country other than the one in which you are currently working, or if your employment transfers after the grant of the PRSUs, or if you are considered a resident of another country for local law purposes, the information contained herein may not apply to you, and the Company shall, in its discretion, determine to what extent the terms and conditions contained herein shall apply, or determine that other terms and conditions are necessary or advisable in order to comply with local law or to facilitate the administration of this Agreement.
(a)Tax and National Insurance Contributions.  If the Company determines that it is required to account to HM Revenue & Customs for the Tax Liability and any Secondary NIC Liability or to withhold any other tax as a result of the PRSUs, you, as a condition to the vesting of the PRSUs, shall make arrangements satisfactory to the Company to enable it to satisfy all withholding liabilities.  You shall also make arrangements satisfactory to the Company to enable it to satisfy any withholding requirements that may arise in connection with the vesting of the PRSUs or disposition of Shares acquired pursuant to the PRSUs.  As a further condition of the vesting of the PRSUs, you may, at the Company’s discretion, be directed to join with the Company, or if and to the extent that there is a change in the law, any of its Subsidiaries or person who is or becomes a Secondary Contributor, in making a Joint Election which has been approved by HM Revenue & Customs, for the transfer of the whole Secondary NIC Liability.  To the extent permitted by law, you hereby agree to indemnify and keep indemnified the Company and its Subsidiaries for any Tax Liability.
(b)Securities Disclosure.  This Agreement is not an approved prospectus for the purposes of section 85(1) of the Financial Services and Markets Act 2000 (“FSMA”) and no offer of transferable securities to the public (for the purposes of section 102B of FSMA) is being made in connection herewith.  This Agreement and the PRSUs are exclusively available to you as a bona fide employee of the Employer in the UK.

11.Notice.  Any notice required to be given hereunder to you shall be addressed to you at your current address shown on the Company’s records.  Notice shall be sent by mail, express delivery or, if practical, by electronic delivery or hand delivery.

12.Acknowledgment.  The Company and you agree that the PRSUs are granted under, and governed by, the Grant Notifications, this Agreement and by those provisions set forth in the Plan that are incorporated herein by reference.  You: (x) acknowledge receipt of a copy of the Grant Notifications, this Agreement, the Plan and the prospectus relating to this award; (y) represent that you have carefully read and are familiar with their provisions; and (z) hereby accept the PRSUs subject to all of the terms and conditions set forth in the Grant Notifications and this Agreement, including those provisions set forth in the Plan that are incorporated herein by reference.

13.Compliance with Laws and Regulations.  The granting of the PRSUs and the delivery of Shares hereunder shall be subject to all applicable laws, rules and regulations. The issuance of Shares will be subject to and conditioned upon compliance by the Company and you with all applicable laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Shares may be listed or quoted at the time of such issuance or transfer.  If any provision of this Agreement conflicts with applicable mandatory law, the provisions of such law shall govern.

14.Additional Conditions to Issuance of Shares.  If, at any time the Company determines, in its discretion, that as a condition to the issuance of Shares to you (or your estate) hereunder, it is necessary or desirable to (i) list, register, qualify or comply with the rules of any securities exchange, (ii) qualify or comply with any applicable state, federal or foreign law, including the applicable tax code and related regulations, or (iii) obtain the consent or approval of any governmental regulatory authority or securities exchange, then such issuance will not occur unless and until such listing, registration, qualification, rule compliance, consent or approval is completed, effected or obtained free of any conditions not acceptable to the Company.  Where the Company determines that the delivery of Shares hereunder will violate federal securities laws or other applicable law, the Company will defer delivery until the earliest date on which the Company reasonably anticipates that the delivery of Shares hereunder will no longer cause such violation.  The Company will make all reasonable efforts to meet the requirements of any such state, federal or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange.

15.Foreign Exchange.  Where applicable, you acknowledge and agree that it is your sole responsibility to investigate and comply with any applicable exchange control laws in connection with the issuance and delivery of the Shares pursuant to the vesting of the PRSUs and that you shall be responsible for any reporting of inbound international fund transfers required under applicable law.  You are advised to seek appropriate professional advice as to how the exchange control regulations apply to 

Exhibit 10.3

your specific situation.  You acknowledge and agree that neither the Company nor any Subsidiary shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the PRSUs, or of any amounts due to you pursuant to the settlement of the PRSUs or the subsequent sale of any Shares acquired upon settlement.

16.Miscellaneous.  No provision of this Agreement may be modified, waived, discharged or amended unless such modification, waiver, discharge or amendment is agreed to in writing and signed by the party against whom such modification, waiver, discharge or amendment is asserted.  No waiver by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  All amounts credited in respect of the PRSUs to the book-entry account under this Agreement shall continue for all purposes to be part of the general assets of the Company.  Your interest in such account shall make you only a general, unsecured creditor of the Company.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.  In lieu of issuing a fraction of a Share resulting from an adjustment of the PRSUs pursuant to Section 9 of the Plan or otherwise, the Company shall be entitled to pay to you an amount equal to the Fair Market Value of such fractional Share.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and to the benefit of you and your beneficiaries, executors, administrators, heirs and successors.  The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

17.Entire Agreement.  This Agreement (including those provisions set forth in the Plan that are incorporated herein by reference) and the Grant Notifications contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto (including those provisions of the Employment Contract describing this award).

18.Applicable Law.  This Agreement (including those provisions set forth in the Plan that are incorporated herein by reference) and the Grant Notifications, and all actions taken hereunder or under the Plan shall be governed by, and construed in accordance with, the laws of the State of New York without regard to the conflict of law principles thereof.

19.Electronic Delivery and Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to the PRSUs or any future awards that may be awarded under the Plan by electronic means, or request your consent to participate in the Plan by electronic means.  Such means of electronic delivery may include, but do not necessarily include, the delivery of a link to a Company intranet or the Internet site of a third party involved in administering this award or the Plan, the delivery of the document via electronic mail or such other means of electronic delivery specified by the Company.  You consent to the electronic delivery of the Grant Notifications, this Agreement, the Plan and the prospectus relating to this award.  You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically, at no cost to you, by contacting the Company by telephone or in writing.  You further acknowledge that you will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, you understand that you must provide the Company or any designated third-party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails.  You may revoke your consent to the electronic delivery of documents (or may change the electronic mail address to which such documents are to be delivered to you) at any time by notifying the Company of such revoked consent or revised electronic mail address by telephone, postal service or electronic mail.  Finally, you understand that you are not required to consent to electronic delivery of documents.

20.No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations or assessments regarding your acceptance of this award, or your acquisition or sale of the underlying Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your acceptance of this award.

21.Counterparts.  This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each party and delivered to the other party.

WEST\278947967.3
[[NYCORP:3708147v2:03/21/2018--05:00 PM]]

Exhibit 10.3

IN WITNESS WHEREOF, the Company, by its duly authorized officer, and you have executed this Agreement as of the Grant Date.
By your acceptance of this Agreement, you and the Company agree that the PRSUs are granted under and governed by the terms and conditions of the Grant Notifications, this Agreement, including those provisions set forth in the Plan that are incorporated herein by reference.  You have reviewed the Grant Notifications, this Agreement, the Plan and the prospectus relating to this award in their entirety, and fully understand all provisions thereof.  You have had an opportunity to obtain the advice of counsel prior to executing this Agreement.  You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Grant Notifications, this Agreement, the Plan and the prospectus relating to this award.  You further agree to notify the Company upon any change in your residence address.

	
			
	AVON PRODUCTS, INC.
	 
	GRANTEE

	/s/ Susan Ormiston
Susan Ormiston, Senior Vice President, Human Resources and Chief Human Resources Officer
	 
	/s/ Jan Zijderveld
Jan ZijderveldExhibit

Exhibit 10.4

[Avon Letterhead]

Personal & Confidential
Ms. Sherilyn McCoy
Chief Executive Officer
Avon Products, Inc.

Re:    Severance Benefit Letter Agreement and General Release of Claims
Dear Sheri:

Pursuant to the letter dated August 2, 2017 regarding the terms of your transition and retirement as Chief Executive Officer of Avon Products, Inc. (“Avon” or the “Company”) (the “Retirement Letter”), this Severance Benefit Letter Agreement and General Release of Claims (this “Agreement”) sets forth the terms and conditions of your severance benefits consistent with the terms of the Avon Products, Inc. Severance Pay Plan (the “Severance Plan”) for Class A Employees.  However, because the Severance Plan limits total payouts to any participant to no more than $550,000 for separations that occur in 2018 (the “409A Limit”), and as a Class A Employee your total severance payments are in excess of the amount that would otherwise be provided under the Severance Plan, this Agreement will be provided to you in lieu of any benefits payable under the Severance Plan and you agree that you waive all your rights to benefits under the Severance Plan. 
The severance benefits being offered to you are a collection of benefits consisting of cash salary continuation plus certain other benefits as described below.  For clarity, this collection of severance benefits will be called the “Severance Benefits.”  The Severance Benefits are being offered to you in consideration of this Agreement.  
To be eligible for the Severance Benefits, as detailed below, you must:  (1) not resign before the Separation Date (defined in Paragraph 1); (2) timely sign this Agreement; and (3) allow this Agreement to become effective and irrevocable (by not revoking it within seven days of your signature).  See the Paragraph 25 entitled Permissible Time to Sign Agreement regarding the timing requirements for deciding whether to execute this document.  
Until this Agreement becomes effective, you are not eligible for and do not have a binding right to the Severance Benefits.  The below paragraphs briefly describe the treatment of your participation in Avon’s benefit plans after the Separation Date. Please 

Exhibit 10.4

note, however, that the actual written plan documents for the relevant benefit plans set forth the terms and conditions of benefits and control in the event of differences described herein.
		
	1.
	Last Day of Active Employment 

As provided for in the Retirement Letter, your last day of active employment with Avon is March 31, 2018 (the “Separation Date”). If you are entitled to any payment for accrued but unused paid time off benefits (e.g., vacation) through your last day of work, in accordance with applicable law, or the terms of an applicable Avon policy, you will receive a separate payment representing such amount(s), if any.  
		
	2.
	Salary Continuation

If you elect to receive the Severance Benefits by entering into this Agreement, you will receive salary continuation for 24 months immediately following the Separation Date (referred to as the “Salary Continuation Period”) based upon your annual base salary as in effect on the Separation Date.  Avon payroll will calculate the total amount of salary continuation payable, in accordance with Avon’s normal payroll practices.
Because you are one of the top 50 highest paid employees at Avon (a “specified employee”), under Internal Revenue Code Section 409A (“Section 409A”), the section which governs nonqualified deferred compensation (including separation agreements), certain limitations may apply on how the separation payments will be made to you if the total severance payments exceed the 409A Limit.  Since your total severance payments are expected to exceed the 409A Limit, you will receive your severance in two tranches:
		
	(a)
	The first tranche (“Tranche A”) will be equal to the 409A Limit, payable over the Salary Continuation Period in substantially equal, bi-weekly installments (less applicable deductions) on each of Avon’s regular payroll dates (it being understood that the first of such installments shall not be made unless and until this Agreement becomes effective and irrevocable (by your not revoking it within seven days of your signature) in accordance with Paragraph 25).   

		
	(b)
	The second tranche (“Tranche B”) will be equal to the remaining amount of salary continuation owed to you under this Agreement in excess of the 409A Limit, payable from the first administratively feasible Avon regular payroll date that occurs in the seventh (7th) month following the Separation Date through the end of the Salary Continuation Period, in substantially equal, bi-weekly installments (less applicable deductions) on each of Avon’s regular payroll dates.  

Where both tranches are being paid at the same time, there will be one check paid to you by Avon.  For the avoidance of doubt, payments under Tranche A are intended to be exempt from the requirements of Section 409A.  Payments under Tranche B are intended to either be exempt from the requirements of Section 409A or satisfy any applicable requirements of Section 409A for payments of nonqualified deferred compensation to specified employees.
The Severance Benefits are instead of any other severance benefits that may otherwise be contemplated under any agreement with Avon or any Avon plan, policy or program. 
During the Salary Continuation Period, as explained below, you will be eligible to continue to participate in certain of Avon’s benefit plans in accordance with the provisions of the relevant plan documents, including any amendments to those plans that may be enacted from time to time, and any applicable elections that you may have on file with Avon.  You will not, however, accrue any vacation days or be eligible for any other benefits provided to active employees during the Salary Continuation Period, other than those expressly provided for herein and/or as otherwise required by law.
Notwithstanding the foregoing, if you are receiving the Severance Benefits in the form of salary continuation but you accept a position with another business entity, Avon may elect, in its sole discretion, to pay any remaining cash severance payments to you in the form of a lump sum payment (except that any such election to accelerate payment will not apply to the extent that it would violate Section 409A), in which case your participation in all Avon benefit plans (for example, the active medical plan) will cease, and your “Salary Continuation Period” will cease. However, as used in Paragraphs 10(c), 10(d), or 10(e), below, the “Salary Continuation Period” shall mean the entire period of time that you would have received salary continuation payments under this Paragraph 2 had you not received all or a portion of your severance payments in the form of a lump sum payment as described in this paragraph.

Exhibit 10.4

		
	3.
	Retirement Plans

		
	a.
	Avon Products, Inc. Personal Retirement Account Plan (“PRA”)

If you enter into this Agreement and are eligible for the Severance Benefits, you will continue to be credited with service under the PRA during the Salary Continuation Period, pursuant to and in accordance with the terms of the PRA, including any amendments to the PRA that may be enacted from time to time.   This means that as a participant under the “cash balance” benefit formula set forth therein, you can only continue to accrue vesting service, if applicable, during the Salary Continuation Period.  In the month following the end of the Salary Continuation Period, you may take a distribution from the PRA in the form you then elect, in accordance with the terms of the PRA.
		
	b.
	Benefit Restoration Plan of Avon Products, Inc. (the “Restoration Plan”)

If you enter into this Agreement and are eligible for the Severance Benefits, your benefit under the Restoration Plan, if payable, will be calculated and paid taking into account the Salary Continuation Period in accordance with the terms of the Restoration Plan.  Because you are considered a specified employee under Section 409A at the time of the Separation Date, payments of benefits under the Restoration Plan will be subject to a six-month delay from the Separation Date, and so any benefits payable to you under the Restoration Plan will not commence until the seventh (7th) month following the Separation Date.
		
	4.
	Avon Personal Savings Account Plan:  With respect to the Avon Personal Savings Account Plan (the “PSA”), also known as the 401(k) Plan, you are considered a terminated employee on the Separation Date.  Even if you enter into this Agreement and are eligible for the Severance Benefits, you will not be entitled to participate in the PSA during the Salary Continuation Period.  Upon the Separation Date, you may take a distribution of your benefits immediately.  You may roll over the contents of your PSA account into an Individual Retirement Account or other tax-deferred savings account in accordance with the PSA and applicable tax rules.  Please consult with your accountant or tax advisor before doing so.  Any outstanding PSA loans you may have are payable within three (3) months after your Separation Date if you do not make arrangements to continue to make regular loan repayments after the Separation Date through the PSA third party administrator, Empower Retirement.  You should contact Empower Retirement if you have an outstanding plan loan.    

		
	5.
	Cash Incentive Award  

Regardless of whether or not you enter into this Agreement and are eligible for the Severance Benefits, your annual incentive award for 2017 will (if it has not already been paid to you as of the date hereof) be paid to you in accordance with the applicable annual incentive plan, as amended by the Retirement Letter.  Accordingly, your annual incentive award for 2017 is payable on the same basis and at the same time as such awards are paid to other senior executive officers, except that the amount of your award will be the greater of (i) the amount determined based solely on the level of attainment of existing performance conditions of such award and (ii) $900,000.   
Consistent with the Retirement Letter, you will not be eligible for an annual incentive award for any years after 2017.  As a reminder, all cash incentive awards are subject to Avon’s compensation recoupment policy.   
		
	6.
	Equity Awards

Regardless of whether or not you enter into this Agreement and are eligible for the Severance Benefits, each equity award (such as restricted stock units and stock options) will continue to be governed by the applicable equity agreement(s) and the applicable stock incentive plan(s).  As provided for in the Retirement Letter, for purposes of vesting and determining the amount of payment (including shares of stock) that may be due to you (but not the timing of any such payment), under those plans or arrangements, your separation from service will occur on the Separation Date (except if you are a Bad Leaver as defined in the Retirement Letter). For the avoidance of doubt, you are “retirement-eligible” for purposes of vesting, and for stock option exercise, under the terms of such incentive plans outstanding equity agreements.
Consistent with the Retirement Letter, you will not receive a long-term incentive plan or other equity based incentive award in any years after 2017.    
		
	7.
	Career Transition and Development Services 

If you enter into this Agreement and are eligible for the Severance Benefits, you will receive career transition and development services (outplacement services) provided by a vendor and program selected by Avon.  More information will be provided to you under separate cover closer to the Separation Date.  Your eligibility for outplacement services will begin on the day following the Separation Date and will continue for twelve (12) months following the Separation Date. If, at the conclusion of this initial career transition and development period, you have not found new employment, you may be eligible for a maximum of twelve (12) additional months of career transition and development services, to be granted in one-month increments at the sole discretion of Avon.

Exhibit 10.4

		
	8.
	Health and Welfare Plans 

If you enter into this Agreement and are eligible for the Severance Benefits, then provided that you are a participant in the applicable Avon plan as of the Separation Date, you generally will continue to be eligible to participate in the following benefit plans during the Salary Continuation Period:  Medical, Dental, Vision, Employee Assistance Program, Group Life Insurance, Supplemental Group Life Insurance, Group Accidental Death and Dismemberment (“AD&D”) and Supplemental Group AD&D.  For the avoidance of doubt, upon the end of your assignment in the United Kingdom, you will cease to be eligible for Avon’s international assignee medical plan, and upon your repatriation you will instead be eligible to enroll in the group health benefit programs for U.S. employees.  For those plans requiring premium payments, you will be required to pay the same portion of the total premium as an active associate pays.  If you elect to continue Medical, Dental and/or Vision coverage, your benefit coverage level will be provided at the benefit coverage level that you previously selected, subject to Avon’s right to amend, modify, or terminate such arrangements at any time.  But note, however, because you are considered one of the top 25% highest paid associates at Avon per Internal Revenue Service regulations, you will be paying your entire premiums on an after-tax basis and your Form W-2s will include imputed income equal to value of the subsidized premiums being provided by Avon, as required by the Internal Revenue Code.  Because of this required tax treatment, the cost to you of continuing coverage may be substantially higher than while you were actively employed.  You may wish to consult a tax advisor to see how this change may impact you. 
Also, in the event that during the Salary Continuation Period you should become employed by another employer and are provided with medical and/or dental insurance coverage, you may either drop your Avon coverage or continue your coverage under both plans.  Under the second alternative, your coverage will be coordinated between the two plans, with your new employer’s plan serving as the primary payer.  
In the event that your group health plan coverage ceases during the Salary Continuation Period due to a “qualifying event,” or due to the expiration of the Salary Continuation Period, you will then be entitled to elect continued coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) at your own expense, assuming you satisfy the requirements of COBRA.  
In addition, pursuant to Section 409A, the following rules apply to your continued receipt of the above welfare benefits to the extent those benefits are not exempt from the requirements of Section 409A:  (x) to the extent that any such benefit is provided via reimbursement to you, no such reimbursement will be made by Avon later than the end of the year following the year in which the underlying expense is incurred; (y) any such benefit provided by Avon in any year will not be affected by the amount of any such benefit provided by Avon in any other year; and (z) under no circumstances will you be permitted to liquidate or exchange any such benefit for cash or any other benefit.
Other Welfare Benefits
Regardless of whether or not you are eligible for the Severance Benefits, your participation in all other welfare programs, including but not limited to the Short-Term and Long-Term Disability plans, will cease following the Separation Date.  
Also, when your group life insurance coverage terminates at the end of the Salary Continuation Period, you may be entitled to convert the group coverage to individual life insurance coverage.  Please contact the group life insurance vendor (currently Liberty Mutual at 888-787-2129) before your group life insurance coverage terminates for details.
		
	9.
	Perquisites

		
	a.
	Executive Health Exam

If you enter into this Agreement and are eligible for the Severance Benefits, and if you have not already received your annual Executive Health Exam in the calendar year in which your Severance Date occurs, you may still receive the exam for up to the earlier of three (3) months following the Separation Date or the end of the calendar year in which the Separation Date occurs.  Note, however, that because you are considered a “specified employee” under Section 409A, reimbursements for an Executive Health Exam after the Separation Date will be subject to a six-month delay from the Separation Date, and so any such reimbursements will be payable to you no earlier than the seventh (7th) month following the Separation Date.  
		
	b.
	Repatriation Benefits

Exhibit 10.4

Consistent with the Retirement Letter, your international assignment benefits will cease on March 31, 2018, except as follows.  Following the end of your international assignment, you will receive the repatriation benefits as described in your International Assignment Letter Agreement with the Company, dated as of July 20, 2016 (the “Assignment Letter”).  For the avoidance of doubt, this will include tax assistance and tax equalization benefits for so long as you are subject to United Kingdom taxes on your Company compensation, and will include any lease termination fees and any other similar fees and penalties you may incur as a result of a termination of your international assignment prior to the originally scheduled date, provided that you will use your reasonable efforts to mitigate the amount of any such fees and penalties.  In addition, for the avoidance of doubt, the tax equalization benefits that you have been provided continues to be subject to the terms and conditions of the Company’s applicable tax equalization policies, which includes, but is not limited to, your obligation to cooperate with Avon and repay to Avon, as applicable, any tax balances or other amounts determined by Avon to be owed by you as a result of the finalization of the tax equalization process for any applicable tax years.
Payments or reimbursements provided to you under this Paragraph 9(b) that are not otherwise excludible from gross income are intended to be exempt from Section 409A, pursuant to Treas. Reg. § 1.409A-1(b)(9)(v)(A) or (C), and as such, (i) such payments or reimbursements shall be paid or provided to you only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second calendar year following the calendar year in which your “separation from service” occurs, and (ii) such expenses shall be reimbursed no later than the last day of the third calendar year following the calendar year in which your “separation from service” occurs. 
		
	c.
	Other Perquisites  

Regardless of whether or not you are eligible for the Severance Benefits, the following perquisites that you were eligible to receive while employed by Avon will cease on the Separation Date: (i) financial planning and tax preparation services that you were eligible to receive while employed by Avon, other than those described in Paragraph 9(b) above, (ii) home security services, and (iii) use of a car and driver and all other transportation services.  
To the extent that your receipt of the above perquisite(s) are subject to Section 409A, the following rules will apply:  (x) to the extent that any such perquisite is provided via reimbursement to you, no such reimbursement will be made by Avon later than the end of the year following the year in which the underlying expense is incurred; (y) any such perquisite provided by Avon in any year will not be affected by the amount of any such perquisite provided by Avon in any other year; and (z) under no circumstances will you be permitted to liquidate or exchange any such perquisite for cash or any other benefit. 
		
	10.
	Your Obligations to Avon 

In consideration for the Severance Benefits, you agree to the following:
		
	a.
	Confidentiality:  You agree to keep and hold in strict trust all Confidential Information (defined below) that you obtained or generated during or as a result of your employment at Avon.  You promise not to knowingly use, disclose, copy, distribute or reverse-engineer, directly or through persons interposed, without Avon’s prior written consent (which may only be provided by the Chairman of the Board of Directors of Avon (the “Chairman”)), as and from this date, and at any time, Avon’s Confidential Information.  For this purpose, “Confidential Information” means any secret, confidential, and/or proprietary information or knowledge relating to Avon or related to any of Avon’s affiliated companies, and/or their respective businesses, agents, employees, customers and independent sales representatives, that is not generally known to the public.  Such Confidential Information includes, but is not limited to, financial information and projections, marketing information and plans, product formulations, samples, processes, production methods, intellectual property and trade secrets, data, know-how, sales, market development programs and plans, and other types of information not generally known to the public, including non-public unpublished or pending patent applications and all related patent rights, techniques, formulae, processes, discoveries, improvements, ideas, conceptions, compilations of data, and developments, whether or not patentable and whether or not copyrightable.  Notwithstanding your confidentiality obligations, you are permitted to disclose Confidential Information that is required to be disclosed by you pursuant to judicial order or other legal mandate, provided that you have given Avon prompt notice of the disclosure requirement, and that you fully cooperate with any efforts by Avon to obtain and comply with any protective order imposed on such disclosure.  

In accordance with the Defend Trade Secrets Act of 2016, you are hereby notified by Avon that you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that:  (i) is made (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in 

Exhibit 10.4

a complaint or other document that is filed under seal in a lawsuit or other proceeding.  You are further notified by Avon that, if you file a lawsuit for retaliation by an employer for reporting a suspected violation of law, then you may disclose the employer’s trade secrets to your attorney and use the trade secret information in the court proceeding if you:  (A) file any document containing the trade secret under seal; and (B) do not disclose the trade secret, except pursuant to court order.

		
	b.
	Use of Confidential Information:  You agree that you will not use Avon’s Confidential Information in connection with any publicity, advertising, endorsement or other promotion.  You further agree not to use Avon’s trademarks, logos, service marks or other intellectual property in any form of advertising, publicity or release without Avon’s prior written approval.  You understand that nothing in this Agreement shall be construed to prevent lawful communications regarding working conditions, or other terms and conditions of employment protected under Section 7 of the National Labor Relations Act or applicable state law.

		
	c.
	Non-solicitation:  You will not, without Avon’s prior written consent (which may only be provided by the Chairman), during the Salary Continuation Period, directly or indirectly, or your own behalf or in the service of or on behalf of others, hire, solicit, attempt to hire or aid in the solicitation of, any employee of Avon or an affiliated company, including any solicitation or recruitment of such employee to take him or her away from or to leave his or her Avon (or affiliated company’s) employment to work for any other employer or other entity.

		
	d.
	Non-competition:  Notwithstanding anything else in this Agreement, you will not, during the Salary Continuation Period, without Avon’s prior written consent (which may only be provided by the Chairman), directly or indirectly, or your own behalf or in the service of or on behalf of others, accept employment with, or act as a consultant or independent contractor to, any company engaged in the direct selling business or beauty business within or without the United States including, but not limited to, the following: Amway Corp./Alticor Inc., Amore Pacific, Arabela, Arbonne, Beiersdorf (Nivea), COTY, De Millus S.A., Ebel Int’l/Belcorp Corp., Elizabeth Arden, Faberlic,  Herbalife Ltd., Inter Parfums, Jequiti, Lady Racine/LR Health & Beauty Systems GmbH, LG Health & Household, L’Occitane, L’Oréal Group/Cosmair Inc., Mary Kay Inc., Mistine/Better Way (Thailand) Co. Ltd., Natura Cosmetics S.A., Neways Int’l, NuSkin Enterprises Inc., O Boticário, Oriflame Cosmetics S.A., Origami Owl, Reckitt Benckiser PLC, Revlon Inc., Rodan & Fields, Shaklee Corp., Shiseido, Stella & Dot, Silpada, The Body Shop Int’l PLC, The Estée Lauder Companies Inc., The Procter & Gamble Company, Tupperware Corp., Unilever Group (N.V. and PLC), Vorwerk & Co. KG/Jafra Worldwide Holdings (Lux) S.à.R.L. Inc., Yanbal Int’l (Yanbal, Unique), Younique or any of their affiliates. 

		
	e.
	Cooperation:  By signing this Agreement, you are agreeing that you may be reasonably requested from time to time by Avon:  (x) to advise and consult on matters within or related to your expertise and knowledge in connection with the business of Avon; (y) to make yourself available to Avon to respond to requests for information concerning matters involving facts or events relating to Avon; and (z) to assist with pending and future litigation, investigations, arbitrations, and/or other dispute resolution matters.  You will receive reimbursement for reasonable out-of-pocket expenses incurred in connection with such assistance.  In addition, if you provide such post-termination assistance after the Salary Continuation Period ends, you will be paid for your time expended at the Company’s request on such matters at an hourly rate equal to your weekly rate of base salary in effect at the time of your termination, divided by 40 hours, subject to your submission to the Company of your monthly invoices.  For the avoidance of doubt, with respect to any post-termination cooperation you may provide under this section, you will not be an employee of, but rather an independent contractor to, the Company, and you will not be credited with compensation, service or age credit for purposes of eligibility, vesting or benefit accrual under any employee benefit plan of Avon (including the long-term incentive plan).

		
	f.
	By signing this Agreement, you acknowledge that you understand that violations of any of the preceding covenants are material and that any violations may result in a forfeiture, at Avon’s sole discretion, of your benefits and payments under this Agreement (including salary continuation, whether or not already paid), but do not relieve you of your continuing obligations under this Agreement.  You agree that Avon’s remedies at law for any breach by you of the preceding covenants will be inadequate and that Avon will also have the right to obtain immediate injunctive relief, without a bond, so as to prevent any continued breach of any of these covenants, in 

Exhibit 10.4

addition to any other available legal remedies.  It is understood that any remedy available at law or in equity shall be available to Avon should the preceding covenants be breached.  

		
	g.
	By signing this Agreement, to the fullest extent allowed by law, you agree not to commence, join, participate in, or assist any lawsuit, action, investigation or proceeding arising from or relating to any act or omission by any of the “Avon Released Parties” (as that term is defined in Paragraph 18 below) unless you are compelled by law to do so and you also agree not to  recover or seek to recover any damages, backpay or other monetary relief as part of any action or class action brought by any other individual, the EEOC, or any other civil rights or governmental agency.

		
	11.
	E-Mail and Voicemail:  You acknowledge and understand that your access to Avon’s e-mail and voicemail, as well as other communication systems, will be discontinued as of the Separation Date.

		
	12.
	Return of Avon Property:  On or before the Separation Date, you agree to promptly deliver to Avon, and not keep in your possession, duplicate, or deliver to any other person or entity, any and all property (whether in hard copy, physical form, or electronic form) that belongs to Avon or any of its affiliated companies, including, without limitation, automobiles, computer hardware and software, cell phones, Blackberrys, iPhones, Androids, other smartphones, iPads, other tablets, thumb drives, other electronic equipment, keys, credit cards, identification cards, records, files, data, and other documents and information, including any and all copies of the foregoing.

		
	13.
	Entire Agreement and Amendments to Agreement: You acknowledge that the only consideration for your execution and non-revocation of this Agreement (which includes a general release of claims) are the benefits which are expressly stated in this document.  All other promises or agreements of any kind, including but not limited to, your offer letter dated as of April 4, 2012, the Assignment Letter and the Retirement Letter, that have been made by or between the parties or by any other person or entity whatsoever that are related to the subject matter of this Agreement are superseded, revoked and cancelled by this Agreement, except as specifically provided for in this Agreement; provided, that any arbitration, nondisclosure, intellectual property protection, non-solicit, non-compete or classified information provisions and/or agreements with the Company continue to apply in accordance with their terms (and the greater protection to Avon applies in the event of any conflict between this Agreement and such other agreements) and any plans (such as the PRA), equity award agreements, or policies that are referenced in this Agreement as continuing to be applicable (including, without limitation, the Company’s “Associate Arbitration Policy”) are not superseded and will remain in effect. In addition, any compensation recoupment provisions, practices or policies, including the Company’s Amended & Restated Compensation Recoupment Policy, will continue to apply, as applicable.  Also, your entitlement to be indemnified for acts and omissions to act occurring while an officer, director or employee and for coverage as an insured under applicable directors and officers liability insurance continues to apply.  You agree that this Agreement may not be changed orally, by email, or by any other form of electronic communication, but only by a written agreement signed by both you and an authorized representative of Avon.

		
	14.
	Severability:  You agree that the provisions of this Agreement are severable.  If a provision or any part of a provision is held to be invalid under any law or ruling, all of the remaining provisions of this Agreement will remain in full force and effect and be enforceable to the extent allowed by law.  If any restriction contained in this Agreement is held to be excessively broad as to duration, activity, or scope, then you agree that such restriction may be construed, “blue-penciled” or judicially modified so as to be limited or reduced to the extent required to be enforceable under applicable law.  

		
	15.
	Voluntary Nature:  You are not required to enter into this Agreement.  Any election to do so by you is completely voluntary.  By signing this Agreement, you warrant and represent that you have read this entire Agreement, that you have had an opportunity to consult fully with an attorney, and that you fully understand the meaning and intent of this Agreement.  Further, you knowingly and voluntarily, of your own free will, without any duress, being fully informed, and after due deliberation, accept its terms and sign below as your own free act.  You understand that as a result of executing this Agreement, you will not have the right to assert that Avon or any other Avon Released Party (as defined in this Agreement in Paragraph 18 below) unlawfully terminated your employment or violated any of your rights in connection with your employment.

Exhibit 10.4

		
	16.
	Governing Law:  You agree that this Agreement (which includes a general release of claims) will be governed by and construed in accordance with the laws of the State of New York, without regard to its conflict of laws principles, and federal law where applicable.  Any legal action to enforce this Agreement, by either party, shall be subject to arbitration in accordance with Avon’s “Associate Arbitration Policy”.  To the extent that Avon is seeking equitable relief to enforce your obligations under this Agreement, Avon may seek such relief as provided in the Paragraph 10 entitled Your Obligations to Avon in any federal, state or local court in any jurisdiction.  

		
	17.
	Election Not to Accept the Severance Benefits:  Should you elect not to enter into this Agreement and reject the Severance Benefits, you will be provided only with the basic severance as defined under the Severance Plan (two weeks of base salary, less applicable withholdings) and continued coverage under certain Avon benefit plans during that two week period (or, for some plans, until the last day of the month in which such payments end, in accordance with the terms of such plans (which control in the event of any discrepancy herein)).  Following this two-week salary continuation period, you will be notified by a separate letter of your right to elect continued group health plan coverage, at your own expense, under COBRA, as applicable.  

		
	18.
	General Release of Claims

In consideration of the Severance Benefits and the other terms and conditions of this Agreement, you agree, on behalf of yourself and your heirs, executors, administrators, and assigns, to forever release, dismiss, and discharge (except as provided by this Agreement) Avon and its affiliated companies and each of their respective current and former officers, directors, associates, employees, agents, employee benefit plans, employee benefit plan fiduciaries, employee benefit plan trustees, employee benefit plan administrators, representatives, attorneys, shareholders, successors and assigns, each and all of them in every capacity, personal and representative (collectively referred to as the “Avon Released Parties”), from any and all actions, causes of action, claims, suits, losses, demands, judgments, charges, contracts, obligations, debts, and liabilities of whatever nature (“Claims”), that you and your heirs, executors, administrators, and assigns have or may hereafter have against the Avon Released Parties or any of them arising out of or by reason of any cause, matter, or thing whatsoever from the beginning of the world to the date hereof, including, without limitation:
		
	•
	All Claims arising from your employment relationship with Avon and the termination of such relationship;

		
	•
	All Claims arising under any federal, state, or local constitution, statute, rule, or regulation, or principle of contract law or common law;

		
	•
	All Claims for breach of contract, wrongful discharge, tort, breach of common-law duty, or breach of fiduciary duty;

		
	•
	All Claims for violation of laws prohibiting any form of employment discrimination or other unlawful employment practice, including without limitation, as applicable:

		
	◦
	The Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et seq.;

		
	◦
	Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e et seq.;

		
	◦
	The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”);

		
	◦
	The Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 et seq.;

		
	◦
	The Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.;

		
	◦
	The Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§ 2601 et seq.;

		
	◦
	The Genetic Information Nondiscrimination Act of 2008, as amended, 42 U.S.C. §§ 2000ff et seq.; 

		
	◦
	The National Labor Relations Act of 1935, as amended, 29 U.S.C. §§ 151 et seq. (the “NLRA”);

		
	◦
	the Fair Credit Reporting Act, as amended, 15 U.S.C. §§ 1681 et seq.;

		
	◦
	“Whistleblower” laws (other than as provided for in Paragraph 20 herein) and laws protecting “whistleblowers” from retaliation;

		
	◦
	The New York State Human Rights Law, as amended, N.Y. Exec. Law §§ 290 et seq.; the New York State Worker Adjustment and Retraining Notification Act, as amended, N.Y. Labor Law §§ 860 et seq.; Article 6 of the New York Labor Law, as amended, N.Y. Labor Law §§ 190 et seq.; the New York Nondiscrimination for Legal Actions Law, as amended, N.Y. Labor Law § 201-d; the New York State Fair Credit Reporting Act, as amended, N.Y. Gen. Bus. Law §§ 380 et seq.; Article 23-A of the New York State Corrections Law, as amended, N.Y. Correc. Law §§ 750 et seq.; the New York City Human Rights Law, as amended, N.Y.C. Admin. Code §§ 8-101 et seq.; the New York City Earned Sick Time Act, as amended, N.Y.C. Admin. Code §§ 20-911 et seq.; the New York City Stop 

Exhibit 10.4

Credit Discrimination in Employment Act, as amended, N.Y.C. Admin. Code §§ 8-102(29), 8-107(9)(d), 8-107(24); and the New York City Fair Chance Act, as amended, N.Y.C. Admin. Code §§ 8-102(5), 8-107(9) et seq.;
		
	◦
	Any other state’s and local government’s human rights laws, anti-discrimination laws, and “plant closing”/mini-WARN Act laws;

		
	◦
	Anti-retaliation laws, including without limitation retaliation claims under the New York State Workers’ Compensation Law, as amended, N.Y. Workers’ Comp. Law § 120, and the New York State Disability Benefits Law, as amended, N.Y. Workers’ Comp. Law § 241; 

		
	◦
	Any law of England and Wales, including, but not limited to the Employment Rights Act 1996, the Working Time Regulations 1998, the Equality Act 2010, the Human Rights Act 1998, the Data Protection Act 1998 and the Protection of Harassment Act 1997; and

		
	◦
	Any other federal, state, or local constitution, statute, rule, or regulation; 

in each case, as such laws may be amended or supplemented from time to time; provided, that you do not release or discharge the Avon Released Parties:  (x) from any Claims arising based on facts, circumstances, actions or inactions after the date on which you execute this Agreement; (y) from any Claims for a breach by Avon of its obligations under this Agreement; or (z) from any Claims that by law cannot be released or waived.  It is understood that the release herein does not release the Avon employee benefit plans from any claims for vested benefits that you have under the terms of any of Avon’s employee benefit plans applicable to you, and it does not release Avon of its obligations to indemnify you or cover you under its director and officer liability insurance policy with respect to your service as a director and officer of Avon, subject to and in accordance with Avon’s governing documents and policies.  It is further understood that nothing in this General Release of Claims shall preclude or prevent you from challenging the validity of this General Release of Claims solely with respect to any waiver of any Claims arising under the ADEA after the date on which you execute this General Release of Claims. 
Nothing in this Agreement is to be construed as an admission on behalf of the Avon Released Parties of any wrongdoing with respect to you, any such wrongdoing being expressly denied. 
You represent and warrant that you have not filed any complaint, charge, claim, or proceeding against any of the Avon Released Parties before any federal, state, or local agency, court, or other body relating to your employment and the cessation thereof or to any claim released in this Agreement, and that you are not currently aware of any facts or basis for filing such a complaint, charge, claim, or proceeding against any of the Avon Released Parties.  Except as otherwise provided in this Agreement, you agree that, if you or any other person or entity files an action, complaint, charge, claim, or proceeding against any of the Avon Released Parties, you will not seek or accept any monetary, equitable, or other relief in such action, complaint, charge, claim, or proceeding (including without limitation, relief that would provide you with reinstatement to employment with Avon) and that you will take all available steps/procedures to withdraw and/or dismiss the complaint, charge, claim or proceeding, regardless of who filed or initiated such complaint, charge, claim, or proceeding, whether pursued solely on your behalf or on behalf of a greater class of individuals.
If you are employed in, or, were formerly employed in the State of California, you additionally acknowledge that you are aware of and familiar with the provisions of Section 1542 of the California Civil Code, which provides as follows: 
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the general release which if known by him must have materially affected his settlement with the debtor.”
If you are employed in, or, were formerly employed in the State of California, by signing this Agreement, you hereby waive and relinquish all rights and benefits which you may have under Section 1542 of the California Civil Code and under the law of any other state or jurisdiction to the same or similar effect.  You represent and warrant that you have the authority to enter into this general release on your behalf individually and to bind all persons and entities claiming through you.
You acknowledge:  (w) that you are receiving valuable consideration in exchange for your execution of this Agreement that you would not otherwise be entitled to receive; (x) that you were given at least twenty-one (21) days in which to consider this Agreement; (y) that any changes made to this Agreement, whether material or immaterial, will not restart the twenty-one (21) day consideration period; and (z) that you are entitled to revoke this Agreement in writing, within seven (7) days after you sign each, respectively.  Such revocation must be delivered to the Company as provided herein within the applicable seven (7)-day period, in which case you will receive no benefits other than basic 

Exhibit 10.4

severance (as defined under the Severance Plan) and neither this Agreement, nor your eligibility to receive the Severance Benefits, will go into effect.
		
	19.
	Additional Representations 

		
	a.
	You acknowledge that you have been paid in full (or will be paid in full pursuant to the Company’s normal payroll practice policy) for all hours that you have worked for Avon, that you have properly reported all hours worked, and that other than what is provided for in this Agreement (and under the terms and conditions of the employee benefit plans and equity agreements and plans referenced herein), you have no other rights to any other compensation or benefits.

		
	b.
	You further acknowledge that you have not been denied any leave requested under the Family and Medical Leave Act (“FMLA”) or applicable state leave laws and that, to the extent applicable, you have been returned to your job, or an equivalent position, following any FMLA or state leave taken pursuant to the FMLA or state laws.

		
	c.
	You acknowledge, understand and agree that you have reported (or will timely report for occurrences that occur after the date that you sign this Agreement) to Avon any work related injury or illness that occurred up to and including the Separation Date.

		
	d.
	You acknowledge and certify that you have complied with Avon’s Code of Conduct and its principles.

		
	e.
	You acknowledge and agree that you have no additional employment rights against any of the Avon Released Parties as a result of your international assignment.

		
	20.
	Reservation of Certain Rights

You understand that nothing in this Agreement is intended, and nothing in this Agreement will be construed, to prevent, interfere with, or otherwise restrict communications or actions protected or required by applicable law, including the legitimate exercise of any Section 7 rights under the NLRA that you may have during your employment with Avon (such as discussing terms and conditions of employment and other workplace conditions).  
Protection of Whistleblower Rights:  This Agreement is not intended to, and shall be interpreted in a manner that does not, limit or restrict you from exercising any legally protected rights that you may have under any applicable statutes, regulations and rules intended to protect whistleblowers (including pursuant to Rule 21F under the Securities Exchange Act of 1934, as amended).  
		
	21.
	Compliance with Laws/Tax Treatment:  Avon will comply with all payroll/tax withholding requirements and will include in income these benefits as required by law.  Avon cannot guarantee the tax treatment of any of these benefits and makes no representation regarding the tax treatment.

		
	22.
	Internal Revenue Code Section 409A:  The parties hereto have a made a good faith effort to comply with current guidance under Section 409A.  The intent of the parties hereto is that payments and benefits under this Agreement comply with or be exempt from Section 409A and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith, including, without limitation, that references to “termination of employment” and like terms, with respect to payments and benefits that are provided under a “nonqualified deferred compensation plan” (as defined in Section 409A) that is not exempt from Section 409A, will be interpreted to mean “separation from service” (as defined in Section 409A).  In the event that amendments to this Agreement are necessary in order to comply with Section 409A or to minimize or eliminate any income inclusion and penalties under Section 409A (e.g., under any document or operational correction program), Avon and you agree to negotiate in good faith the applicable terms of such amendments and to implement such negotiated amendments, on a prospective and/or retroactive basis, as needed.  To the extent that any amount payable or benefit to be provided under this Agreement constitutes an amount payable or benefit to be provided under a “nonqualified deferred compensation plan” (as defined in Section 409A) that is not exempt from Section 409A, and such amount or benefit is payable or to be provided as a result of a “separation from service” (as defined in Section 409A), and you are a specified employee (as defined in Section 409A and determined pursuant to procedures adopted by Avon from time to time) on your 

Exhibit 10.4

separation from service date, then, notwithstanding any other provision in this Agreement to the contrary, such payment or benefit will not be made or provided to you during the six (6) month period following your separation from service.  Notwithstanding the foregoing, Avon makes no representation to you about the effect of Section 409A on the provisions of this Agreement and Avon shall have no liability to you in the event that you become subject to taxation under Section 409A (other than any tax reporting and/or withholding obligations that Avon may have under applicable law).

		
	23.
	Advice of Counsel:  You acknowledge that you have been and are hereby advised by Avon to consult with an attorney about this Agreement and its General Release of Claims prior to signing and you represent that you did so to the extent that you deemed appropriate or you knowingly and voluntarily waived your right to do so. You represent and warrant that you fully understand the terms of this Agreement and its General Release of Claims , and you knowingly and voluntarily, of your own free will, without any duress, being fully informed, and after due deliberation, accept its terms and sign below as your own free act.  You understand that, as a result of signing this Agreement you will not have the right to assert that Avon or any other Avon Released Party unlawfully terminated your employment or violated any of your rights in connection with your employment.

		
	24.
	Challenge to the Validity of the Agreement and Communication with Government Agency:  Nothing in this Agreement:  (x) limits or affects your right to challenge the validity of the General Release of Claims under the ADEA or the Older Workers Benefit Protection Act; or (y) precludes you from filing an administrative charge or otherwise communicating with any federal, state or local government office, official or agency.  However, you promise and agree never to seek or accept any damages or other legal remedies, or any equitable remedies or relief (including, without limitation, relief that would provide you with reinstatement to employment with Avon), and hereby waive any right to recovery of any such damages, remedies or other relief for you personally with respect to any claim released by Paragraph 18, regardless of whether another person or entity or you initiate the underlying action related to the Claim.  You also promise and agree not to voluntarily offer to be a witness and/or voluntarily provide evidence in support of any lawsuit brought by a third party (excluding governmental agencies) against Avon or the Avon Released Parties (as defined in the General Release of Claims above).

		
	25.
	Permissible Time to Sign Agreement.  In order to receive the Severance Benefits, you must sign and return this Agreement no earlier than the Separation Date and no later than thirty (30) days following the Separation Date.  If you do not sign and return the Agreement within this time period, then the offer of the Severance Benefits described herein will expire and you will not be entitled to any Severance Benefits.  As long as you sign and return this Agreement within this time period, you will have seven (7) days immediately after the date of your signature to revoke your decision by delivering, within the seven (7) day period, written notice of revocation to Avon’s Senior Vice President, General Counsel.  If you timely sign and return this Agreement and do not revoke it, then this Agreement will become effective on the eighth (8th) day immediately following the date of your signature.  

You understand that the present offer of the Severance Benefits is made without prejudice and is conditional upon its unqualified acceptance and compliance with the execution and delivery requirements described above for this Agreement.  Note that the Agreement includes an agreement regarding your ongoing obligation to protect and preserve the confidentiality of the Confidential Information obtained or accessed while you were in the employ of Avon.
Your signature below signifies your voluntary acceptance of the terms of this Agreement, its confidentiality clauses and your election to receive the Severance Benefits, which benefits you acknowledge you would not otherwise be entitled to receive
A duplicate copy of this Agreement is attached for your files.  Please sign and date both copies of this Agreement, in the spaces provided, returning one copy to Avon and retaining the other copy for your records.  If you elect not to enter into this Agreement and accept the Severance Benefits, please notify Avon, in writing, as soon as practicable of your decision.  Your failure to timely return the executed Agreement, will be treated as your rejection of the Severance Benefits.

Exhibit 10.4

Sheri, thank you again for your contributions to Avon.  We wish you the best in your future endeavors.  
Sincerely,

AVON PRODUCTS, INC.

By: /s/ Susan Ormiston __
          Susan Ormiston
          SVP, Chief Human Resources Officer

	
		
	 
	 

	 
	 

ACKNOWLEDGEMENT AND AGREEMENT
I have carefully reviewed, understood and agree with the terms and conditions specified in this Agreement above.  I have signed to indicate my acceptance thereof.

Date: 4/9/18________        By: /s/ Sherilyn McCoy ____
Sherilyn McCoy

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