Document:

Exhibit

        

                                

March 11, 2016

[Address]

Dear Bob,

As a key member of Avon Products, Inc. (“Avon” or the “Company”), your ongoing commitment to our team and this Company is vital to our success.  Recognizing that your contributions have been and will continue be an asset to Avon, I am pleased to offer you the opportunity to enter into this bonus agreement (“Bonus Agreement”) pursuant to which you will be eligible to receive a special one-time bonus (“Bonus”).  The total gross amount of the Bonus will be US $450,000.

The Bonus will be delivered in two separate cash payments (each, a “Bonus Installment”) on the following dates (each such date, a “Bonus Payment Date”):  
		
	(i)
	the first Bonus Installment of US $225,000 on March 18, 2016, and

		
	(ii)
	the second Bonus Installment of US $225,000 on December 15, 2016;

    
provided that you will be eligible to receive a Bonus Installment only if you are actively employed by the Company on the applicable Bonus Payment Date and have not violated any confidentiality obligations as described below,.  In the event that you voluntarily terminate employment or are terminated for Cause on or before any Bonus Payment Date, you will not be eligible to receive the Bonus Installment that would otherwise be payable on such Bonus Payment Date.  Notwithstanding the foregoing, if you die, become disabled or are involuntarily terminated without Cause by the Company, you will be eligible to receive the full amount of any unpaid Bonus Installments within fifteen (15) business days following such event.  In no event will you receive payment of the Bonus if it is determined that you have violated the confidentiality obligations as set forth under the Company’s Code of Conduct, including the unauthorized sharing of information in connection with any strategic options that the Company may consider.

For purposes of this Bonus Agreement, a termination for “Cause” means a termination by Avon of you for any of the reasons set forth under the definition of “Cause” under the Stock Plan.  All determinations of whether any of the reasons set forth above have occurred and/or whether cause shall have occurred will be determined by Avon in its sole discretion.
This Bonus Agreement will be subject to any applicable Avon recoupment policy or procedures.  This Bonus Agreement shall not be construed as conferring upon you any right to continue in the employment of Avon or any of its subsidiaries or affiliates.  Like all of Avon’s other compensation and benefit plans and arrangements, nothing contained in this Bonus Agreement shall be construed to prevent Avon or any of its affiliates from 

Page 1 of 1

        

taking any corporate action which is deemed by Avon in its sole discretion to be appropriate or in its best interest, whether or not such action would have an adverse effect on this Bonus Agreement, you or your eligibility to receive a Bonus hereunder.  As such, you hereby acknowledge and agree that you have no claim, and hereby waive any potential claim that you may have in the future, against Avon or its affiliates as a result of any such corporate action. 
This Bonus Agreement is intended to be exempt from the requirements under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) and will be interpreted in a manner consistent therewith.  
The intent of Avon is that payment of the Bonus comply with applicable tax laws.  Avon will comply with all payroll/tax withholding requirements and will deduct or withhold from any amount payable under this Bonus Agreement such Federal, state, local, foreign or other taxes as are required to be withheld pursuant to any applicable law or regulation.  Avon cannot guarantee the tax treatment of the Bonus (including the tax treatment under Section 409A), and makes no representation regarding such tax treatment.
This Bonus Agreement sets forth the entire agreement between Avon and you regarding the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of Avon.    

The interpretation, construction and performance of this Bonus Agreement will be governed by the laws of the State of New York (without giving effect to its conflicts of law).
Thank you for your valuable service.

Best regards,

/s/ James Scully
James Scully
Executive Vice President, Chief Operating Officer and Chief Financial Officer

Accepted and agreed to:

/s/ Robert Loughran                3/18/16
________________________                       ________________________
Robert Loughran                      Date*

*Completed document must be returned to Ann Verillo, VP Global Compensation & Benefits, by March 18, 2016.

Page 2 of 2Exhibit

September 10, 2012

Jeff Benjamin
[Address]

Dear Jeff,

We are pleased to offer you the position of Senior Vice President, General Counsel for Avon Products, Inc. (“Avon”) reporting to Sheri McCoy, Chief Executive Officer.
    
Your annual base salary will be $625,000.  Although this salary is quoted on an annual basis, it does not imply a specific period of employment.    

You will be eligible to participate in Avon’s annual incentive program available to Senior Vice President level associates.  We will recommend to the Compensation and Management Development Committee (“Committee”) that your annual target award for each year of employment be 75% of your earned base salary, with the opportunity for a maximum payout of 200% of target.  Your 2012 annual bonus target will be pro-rated based on your start date with Avon. Annual awards are contingent on relevant individual and business performance goals being achieved.  Annual incentive program payments are generally made early in the year following the performance period, with the first such payment, if any, in 2013 for the 2012 plan year.

You will be eligible to participate in the long-term incentive program available to all Senior Vice President level associates.  Long-term incentives are currently delivered 70% in performance-based restricted stock units (“PRSUs”) and 30% in performance-based cash.  PRSUs are generally settled in shares of Avon common stock.  The number of PRSUs that vest and the payout percentage for performance cash are subject to performance against pre-set goals.  Cycles are generally three years in duration.  Your first award be granted in 2012 with a target value of 200% of salary ($1,250,000).  The payout of this award, if any, will be made in 2015 and based on the 2012-2014 performance period (pro-rated in accordance with the applicable award agreement to reflect the number of months elapsed in the performance cycle through your separation from service). Forms of award agreements for this award have previously been supplied to you.  We will also recommend to the Committee that you be granted a second award under the long-term incentive program in 2013, also with a target value of 200% of salary.  The payout under this award, if any, is expected to be made in 2016 based on the 2013-2015 performance period (pro-rated in accordance with the applicable award agreement to reflect the number of months worked during the performance cycle).  We will further recommend to the Committee that payouts under your long-term incentive awards, and 

Jeff Benjamin                                    
September 10, 2012
Page 2

under your annual bonus awards, be subject to discretionary reduction only to the extent that similar, or greater, percentage reductions are made for all other senior executives.  
You will also receive a one-time RSU award under the Avon Products, Inc. 2010 Stock Incentive Plan (the “Stock Plan”).  The award value will be $500,000, and the award will include cash dividend equivalent rights.  The award will be granted on your start date with Avon and will vest 100% on December 31, 2013.  Settlement is generally in shares of Avon stock. A form of award agreement for this award has previously been supplied to you.

You will be eligible to participate in the benefit programs generally available to all associates who satisfy certain eligibility requirements as of your date of hire.  Accordingly, you will be eligible for our health and welfare benefits such as medical, dental, vision and long-term disability plans as of your date of hire.  In addition, assuming you satisfy the eligibility requirements, the Avon Personal Savings Account Plan (Avon’s 401(k) plan) is available to you on your date of hire.  Also, assuming you are in an eligible class and you satisfy the eligibility requirements under the Avon Products, Inc. Personal Retirement Account Plan (the “PRA”), Avon’s retirement plan, we will automatically open a PRA account for you after you complete one year of service.  The PRA is a cash balance pension account designed to provide you with a source of retirement income if you should leave Avon at any time after becoming vested.  You will also be covered under other Avon compensation plans and policies in which similarly situated Avon executives participate, including Avon's change in control policy and compensation recoupment policy.

You will be eligible to participate in the Avon Products, Inc. Deferred Compensation Plan.  This plan allows you to defer a percentage of your base salary and your annual bonus beginning in the calendar year following the year you begin employment.  We will forward the plan brochure and enrollment instructions to you at the appropriate time.

You will be entitled to a transportation allowance equal to $11,000 per year and paid monthly (approximately $916.67 per month).  You will also be entitled to a financial planning allowance up to $12,500 per year which amount will not be pro-rated for calendar year 2012.  These benefits are in each case subject to the terms of Avon’s executive perquisite program as in effect from time to time.

You will be eligible for four weeks of vacation per year beginning in 2012 pro-rated based on your start date.

Upon submission of appropriate documentation, Avon agrees to reimburse you within thirty (30) days, for your legal fees incurred in connection with the negotiation and documentation of this agreement up to a maximum of $15,000.

In the event of your “involuntary termination” (as defined below)  on or prior to December 31, 2013, you will receive severance in the form of a lump sum payment equal to the lesser of 9 months base salary or the base salary payable between the effective date of your termination and December 31, 2013.  “Involuntary termination” means an involuntary termination of your employment by Avon other than due to “Cause” or “Disability,” each as defined in the Stock 

    

Jeff Benjamin                                    
September 10, 2012
Page 3

Plan.  You will not be covered by the Avon Products, Inc. Severance Pay Plan, but you will be covered by the Avon Products, Inc. Change in Control Policy.  Please note that payment of your severance will be in accordance with the provisions of IRC Section 409A, including any applicable six-month delay for certain payments made upon termination of employment.  In order to be eligible for severance, you will be required to sign a general release of all claims.

In the event that any amount or benefit paid or distributed to you by Avon or its affiliates, whether pursuant to this letter agreement or otherwise (collectively, the ‘Covered Payments”), is or becomes subject to the tax (the “Excise Tax”) imposed under IRC Section 4999, then the Covered Payments will be reduced to the extent necessary so that no portion of the Covered Payments is subject to the Excise Tax (the “Reduced Amount”); provided that such amounts shall not be so reduced if, without such reduction, you would be entitled to receive and retain, on a net after tax basis (including, without limitation, after any Excise Taxes), an amount that is greater than the amount, on a net after tax basis, that you would be entitled to retain upon receipt of the Reduced Amount.  If the determination made pursuant to this paragraph results in a reduction of the payments that would otherwise be paid to you except for the application of this paragraph, such reduction in payments will be first applied to reduce any cash severance payments that you would otherwise be entitled to receive and will thereafter be applied to reduce other payments and benefits in a manner that would not result in subjecting you to additional taxation under IRC Section 409A.

You represent and agree that your acceptance and execution of this offer does not conflict with or violate any of the terms, conditions or provisions of any existing contractual relations to which you are bound, and does not conflict with any duties owed or owing to your current employer. In addition, you have advised Avon, as a condition of its extending this offer, that you are not bound by any garden leave agreement.
    
Your employment at Avon is contingent upon your passing a satisfactory background investigation, reference checks, compliance with immigration law and passing a drug screening test.  As you may be aware, immigration law requires that Avon verify the employment authorization status of all new employees.  Therefore, on your first day you will be asked to provide documents which establish your identity and employment eligibility.  We will forward a list of acceptable documents for verification purposes in due course.

Avon maintains a drug free work environment and requires that all new hires pass a drug screen as a condition of employment.  The results of this test must be received prior to your date of employment; you should allow 3-4 business days for the results to be processed.  

Jeff, I very much look forward to your joining Avon on or about September 12, 2012.  If you have any questions, please feel free to call me at [phone number].

    

Jeff Benjamin                                    
September 10, 2012
Page 4

Sincerely,

/s/ Sheri McCoy

Sheri McCoy
Chief Executive Officer

cc:   Gina Fitzsimons, Vice President, Global Compensation and Benefits 

Accepted and Agreed to:

/s/ Jeff Benjamin                    9/10/2012

Jeff Benjamin                           Date

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