Document:

Ex 10.28 2012-A

Exhibit 10.28
AVON PRODUCTS, INC.
COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS
(Amended and Restated as of January 1, 2013)

I. PURPOSE
1.1 The purpose of the Avon Products, Inc. Compensation Plan for Non-Employee Directors (this “Plan”) is to provide a comprehensive compensation program to attract and retain qualified individuals who are not employed by Avon Products, Inc. (the “Company”) or its subsidiaries to serve on the Company's Board of Directors.  In particular, this Plan aligns the interests of such directors with those of the Company's shareholders by providing that a significant portion of such directors' compensation is directly linked to the value of the Company's common stock.
 II. CASH RETAINERS
2.1 Annual Board Retainer. Each non-employee director shall be entitled to receive an annual cash retainer for his or her Board service, in such amount as determined by the Board of Directors from time to time, which shall be payable in quarterly installments.
2.2 Committee Retainer. A non-employee director appointed as a member of a standing committee of the Board of Directors shall receive an annual cash retainer in such amount as determined by the Board of Directors from time to time. Committee retainers shall be paid within thirty days following the annual organizational meeting occurring immediately after the Annual Meeting of Shareholders. These committee retainers are in addition to the annual retainer set forth in Section 2.1 above.
2.3 Retainer for Committee Chairs. A non-employee director appointed to chair a standing committee of the Board of Directors shall be paid an annual cash retainer in such amount as determined by the Board of Directors from time to time. Committee chair retainer fees shall be paid within thirty days following the annual organizational meeting occurring immediately after the Annual Meeting of Shareholders. These committee chair retainers are in addition to the retainers set forth in Sections 2.1 and 2.2 above.
2.4 Lead Independent Director or Chairman Retainer.  A non-employee director appointed as lead independent director or Chairman shall be paid an annual cash retainer in such amount as determined by the Board of Directors from time to time.  Such retainer shall be paid within thirty days following the annual organizational meeting occurring immediately after the Annual Meeting of Shareholders. Such retainer is in addition to the retainers set forth in Sections 2.1, 2.2 and 2.3 above.
2.5 Pro-Rata Retainer.  A non-employee director who commences service after the Annual Meeting of Shareholders shall be entitled to a pro-rated annual cash retainer as well as pro-rated annual committee, committee chair, and chairman or lead independent director retainers, as applicable, and as approved by the incumbent non-employee directors in such year.  The amount of the retainer(s) shall be determined based on the number of months during the year that a new non-employee director is in active service.  The pro-rated portion of the annual retainer, if any, is payable at the next regularly scheduled quarterly payment for the incumbent non-employee directors, and pro-

rated committee, committee chair and lead independent director or chairman retainers, as applicable, shall be paid within thirty days following the director's appointment. 
2.6 Deferred Cash Alternative. Each non-employee director annually may elect to have all or a part of his or her cash compensation under this Article II deferred for payment in accordance with the provisions of the Board of Directors of Avon Products, Inc. Deferred Compensation Plan (the “Director Deferral Plan”).
III. EQUITY AWARDS
3.1 Company's Stock Incentive Plan. Grants of equity awards made under this Plan shall be made under the Company's stock incentive plan that is in effect from time to time (“Stock Plan”).   The terms “Fair Market Value” and “Stock” used in this Article III shall have the meanings set forth in the Stock Plan.
3.2 Annual Retainer Grants. At the close of business on the date of each Annual Meeting of Shareholders, each non-employee director who then continues as a member of the Board of Directors may be granted restricted stock units in such amounts as determined by the Board of Directors from time to time. Notwithstanding the foregoing, the Board of Directors may grant any one or more of the awards set forth under the Stock Plan in such amounts and on such terms as determined by the Board of Directors from time to time.
3.3 Vesting Period. A non-employee director's restricted stock units shall vest on the date of the next Annual Meeting of Shareholders following the date of grant, provided that such non-employee director has served as a member of the Board of Directors for the entirety of his or her annual term. If the non-employee director ceases to be a member of the Board of Directors before the expiration of his or her annual term at the next Annual Meeting of Shareholders (except as provided in Section 3.5 below), then the restricted stock units shall be forfeited.  Forfeiture of restricted stock units, whether vested or unvested, will result with respect to a non-employee director who, without the Company's written consent and while serving as a member of the Board of Directors, becomes employed by, or provides consulting services to, a company substantially engaged in a business that is competitive with a principal business conducted by the Company.
3.4 Payment of Restricted Stock Units. A non-employee director's vested restricted stock units shall be paid to the non-employee director (or, if he or she is dead, to his or her estate) within 30 days after such non-employee director ceases to serve as a member of the Board of Directors (to the extent such cessation constitutes a “Separation from Service” under Section 409A of the Internal Revenue Code). Vested restricted stock units may be paid, as determined by the Board of Directors, in shares of Stock or in cash equal to the Fair Market Value of the shares of Stock on the date that the non-employee director ceases to serve as a member of the Board of Directors (to the extent such cessation constitutes a “Separation from Service” under Section 409A of the Internal Revenue Code).
3.5 Earlier Vesting and Payment. Notwithstanding anything in this Article III to the contrary, a non-employee director's restricted stock units shall immediately become vested in the event of, and will be paid within 30 days after such non-employee director's death. Such restricted stock units may be paid, as determined by the Board of Directors, in shares of Stock or in cash equal to the Fair Market Value of the shares of Stock on the date of the non-employee director's death.

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3.6 Voting and Dividends. A non-employee director does not have the right to vote any restricted stock units or to receive dividends on them prior to the date such restricted stock units are paid to the non-employee director in the form of shares of Stock. However, unless otherwise determined by the Board of Directors, prior to settlement of a restricted stock unit, a non-employee director shall be entitled to dividend equivalent rights so that the non-employee director will receive a cash payment in respect of the shares of Stock in amounts that would otherwise be payable as dividends with respect to such number of shares of Stock, when and as dividends are paid.
3.7 Pro-Rata Awards.  A non-employee director who commences service after the Annual Meeting of Shareholders will receive a pro-rated equity award at the next Annual Meeting of Shareholders based upon the Fair Market Value of the equity award granted to the incumbent non-employee directors in the year in which such director was appointed.  The amount of the award shall be determined based on the number of months during the year that a new non-employee director is in active service.
IV. OTHER BENEFITS
4.1 Life Insurance Coverage.  Each non-employee director is provided with group term life insurance coverage, in such amounts as may be determined by the Board of Directors from time to time.
4.2 Charitable Award Program.  Each non-employee director may participate in the matching charitable gift program available to Avon Associates.  
V. ADDITIONAL PROVISIONS
5.1 This Plan shall be administered by the Board of Directors, which shall have the power to interpret this Plan and amend it from time to time as it deems proper. To the fullest extent practicable, however, the terms and conditions of the Stock Plan shall be applicable to equity awards granted under this Plan.
5.2 This Plan may be suspended or terminated at any time by action of the Board of Directors. Notwithstanding any such suspension or termination, amounts deferred under Section 2.6 above shall continue to be payable in accordance with the terms of the Director Deferral Plan, and any outstanding equity awards under this Plan will continue to be governed by the terms of this Plan as in effect at the time of such suspension or termination, the Stock Plan or a prior stock plan, as applicable, and any applicable stock incentive award agreements.
5.3 Unless otherwise provided by the Board of Directors, the right to receive any compensation under this Plan, whether under new or outstanding equity awards, may not be transferred, assigned, or subject to attachment or other legal process.
5.4 To the extent any amounts paid under this Plan are subject to Section 409A of the Internal Revenue Code, this Plan will be interpreted in a manner to comply with the requirements of Section 409A of the Internal Revenue Code.
5.5 Subject to Sections 5.3 and 5.4 above, any outstanding equity awards under this Plan will continue to be governed by the terms of this Plan as in effect at the time such awards were granted.

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5.6 This Plan shall be governed by and subject to the laws of the State of New York and applicable Federal laws.
The Company has caused this Plan to be amended and restated as of January 1, 2013.

	
			
	AVON PRODUCTS, INC.

	By:
	 
	 /s/ Jeff Benjamin

	 
	 
	Name: Jeff Benjamin
Title: Senior Vice President, General Counsel and Chief Ethics & Compliance Officer
                                                                                     

	 
	 
	 

  

4Ex 10.41 2012-A

Exhibit 10.41
AVON PRODUCTS, INC.
AMENDED & RESTATED COMPENSATION RECOUPMENT POLICY
(Clawback Policy)
Section 1.  Purpose.  The Policy is designed to help deter actions that could potentially harm the financial position of Avon Products, Inc. (the “Corporation”) and its shareholders and to support the Corporation's pay-for-performance philosophy for executive compensation.

Section 2.  Definitions.  For purposes of this Policy, the following terms shall have the following meaning:

“Committee” means the Compensation Committee of the Board of Directors of the Corporation.
“Corporation” means Avon Products, Inc. and any successor thereto.
“Covered Persons” means those persons identified in Section 3.
“Effective Date” means January 14, 2013, which is the date that this Policy is effective.
“Financial Restatement” means a restatement of the Corporation's financial statements or a material incorrect calculation of performance metrics pursuant to which payment was made under a cash or equity incentive award (e.g., active representative growth).
“Misconduct” means unethical behavior, including (i) a serious violation of the Corporation's Code of Business Conduct & Ethics or (ii) a violation of law within the scope of employment with the Corporation.  
Section 3.  Persons Subject to this Policy.  The following employees are subject to this Policy:

(i)  Persons holding the title of Group Vice President or a more senior title (or who formerly held the title at the time of the event resulting in the Financial Restatement or Misconduct); 

(ii)  Persons serving as Controller, Assistant Controller, Treasurer, the head of Global Tax, and the head of Global Financial Planning & Analysis (including persons who formerly held such position at the time of the event resulting in the Financial Restatement or Misconduct); and

(iii)  Regional Finance Heads (including persons who formerly held such position at the time of the event resulting in the Financial Restatement or Misconduct).

Section 4.  Recoupment of Compensation.

(a)  In the event of a Financial Restatement on or after the Effective Date, the Committee may require (i) reimbursement of compensation granted, earned or paid under the Corporation's annual incentive and long-term incentive cash plans to Covered Persons and (ii) cancellation of outstanding equity awards and reimbursement of any gains realized on the exercise, settlement or sale of equity awards held by Covered Persons.  The total amount of performance-based compensation that the Committee may recoup under this paragraph (a) shall not exceed the difference between (i) the amount of incentive compensation calculated based upon the achievement of certain performance metrics or financial results that were subsequently adjusted due to a Financial Restatement less (ii) the lower payment that would have occurred based upon the Financial Restatement.  In addition, with respect to time-based equity compensation, the Committee may determine to recoup an appropriate amount to reflect the effect of the Financial Restatement on the Corporation's stock price with respect to the proceeds from any exercise, settlement, vesting or sale of such equity awards.

(b)  In the event that the Committee determines that a Covered Person has engaged in Misconduct occurring on or after the Effective Date, the Committee may require (i) reimbursement of compensation granted, earned or paid under the Corporation's annual incentive and long-term incentive cash plans to such Covered Person and (ii) cancellation of outstanding equity awards and reimbursement of any gains realized on the exercise, settlement, vesting or sale of equity awards held by such Covered Person.    

(c)  In order for compensation to be recouped under this Policy, the event resulting in the Financial Restatement must be discovered within three years of its occurrence.

(d)  Only the compensation described above under paragraphs (a) and (b) of this Section 4 are subject to recoupment and only to the extent granted, earned, paid or outstanding during the period covered by the Financial Restatement, as applicable.  Benefits other than annual incentive and long-term incentive payments and time-based and performance-based equity awards (such as retirement benefits and earnings under the Corporation's Deferred Compensation Plan) are not subject to recoupment under this Policy.

Section 5.  Administration.

(a)  The Committee will administer this Policy and have the full authority and discretion necessary to accomplish its purpose, including, without limitation, the 

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determination of the amount of, and manner in which, compensation is recovered, in accordance with applicable law, including, without limitation, by seeking repayment or by offsetting any salary or other compensation due under any compensation plan, program or arrangement maintained by the Corporation or any of its affiliates; provided that any offsets against amounts under nonqualified deferred compensation plans (as defined in Section 409A of the Internal Revenue Code) shall be made in compliance with Section 409A.  Any failure by the Committee to apply any provision of this Policy to any particular situation shall not represent a waiver of the Committee's authority to apply such provisions thereafter.  Every interpretation, choice, determination or other exercise of any power or discretion given either expressly or by implication to the Committee shall be conclusive and binding upon all parties covered by this Policy or otherwise directly or indirectly affected by such action, without restriction, however, on the right of the Committee to reconsider and redetermine such action.  The Committee may delegate to officers of the Corporation the enforcement of a determination by the Committee to recover compensation.

(b)  In determining whether to recoup compensation under this Policy, the Committee may consider (i) the reason for the Financial Restatement or Misconduct, (ii) cost to achieve recoupment of compensation compared to the amount recoverable, (iii) passage of time, (iv) the amount of compensation that would have been awarded to or earned by the Covered Person had there not been a Financial Restatement or Misconduct, (v) the conduct of the Covered Person, and (vi) any other facts and circumstances that the Committee may deem appropriate.

(c)  If the Committee seeks to cause recoupment of compensation under this Policy from a Covered Person, it shall provide a written notice to such Covered Person within one year of the discovery of the event resulting in the Financial Restatement or the conduct constituting Misconduct, which shall specify the amount of, and reason for, the recoupment.

Section 6.  Amendment and Termination.  This Policy may be amended or terminated by the Committee at any time.  In the event of a Change in Control (as defined in the Corporation's Change in Control Policy, or any successor thereto), this Policy shall immediately terminate; provided, however, that the terms and provisions of this Policy shall continue to apply to any pending Financial Restatement or Misconduct matters under consideration by the Committee at the time of the Change in Control.

Section 7.  Miscellaneous.

(a)  Any applicable award agreement or other document setting forth the terms and conditions of any compensation covered by the Policy shall be deemed to include the restrictions imposed herein and incorporate the Policy by reference and, in the event of any inconsistency, the terms of the Policy will govern.

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(b) If any provision of this Policy is determined to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by applicable law, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to conform to any limitations required under applicable law.

(c) Any notice, demand or other communication required or permitted under this Policy shall be effective only if it is in writing and delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid addressed (i) if to a Covered Person, at the address most recently on file with the Corporation or (ii) if addressed to the Corporation, at its principal executive office and addressed to the General Counsel.

(d)  This Policy shall be governed by and construed in accordance with the internal laws of the State of New York.

(e)  Any recoupment under this Policy may be in addition to any other remedies that may be available to the Corporation or to the Committee under the Corporation's policies as well as applicable law, including disciplinary actions, including but not limited to, termination of employment.

(f)  Covered Persons will be requested to sign the acknowledgment attached hereto as Exhibit A.  The failure to sign such acknowledgment, however, will not prevent the application of this Policy.

	
		
	 
	AVON PRODUCTS, INC.

	Date:  January 24, 2013
	By:  /s/ Gina Fitzsimons                                                       

	 
	        Name: Gina Fitzsimons

	 
	        Title:  VP, Global Compensation &

	 
	                   Benefits

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Exhibit A
Acknowledgment
I acknowledge that I received, read and understand the Avon Products, Inc. Compensation Recoupment Policy, which applies to any annual and long-term incentives and equity awards (including, without limitation, performance-based restricted stock units, time-based restricted stock units and stock options) (collectively, the “Compensation”).  Any applicable award agreement or other document setting forth the terms and conditions of any Compensation shall be deemed to include the restrictions imposed by the Policy and incorporate it by reference and, in the event of any inconsistency, the terms of the Policy will govern.  

___________________________________                
Name:
Date:                         

Acknowledgment - Clawback Policy

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