Document:

Exhibit

Susan Ormiston                    Page 1 of 11                    August 8, 2016

Exhibit 10.8
[Avon Letterhead]

Personal & Confidential  

August 8, 2016

Susan Ormiston
SVP HR & Chief HR Officer
Avon - USA

LONG TERM ASSIGNMENT TO THE UNITED KINGDOM

Dear Susan:

We are very pleased to confirm the terms and conditions relating to your relocation to London, United Kingdom (hereafter “Host Country”) as Senior Vice President HR & Chief HR Officer, reporting to Sheri McCoy, Chief Executive Officer.  The terms provided in this Letter of Assignment (“LOA”) are generally governed by the Avon Long Term International Assignment Policy - Tier 1.  This is an international assignment to Avon Cosmetics Limited in the Host Country.

The items in this LOA do not create a contract of employment, but simply seek to confirm the conditions that pertain to your transition to the Host Country. While you are on assignment, you will continue to be an employee of Avon Products, Inc. (“Avon” or the “Company”) under terms and conditions consistent with employment by Avon in New York, United States (hereafter “Home Country”).  

In the event of any change in circumstances, or additional matters not known at this time, Avon reserves the right to make adjustments to this LOA. You are required to notify Avon of any changes to your family status in order that any assignment allowances may be adjusted accordingly. The LOA will also be reviewed on an annual basis and any assignment allowances will be adjusted accordingly based on changes to your base salary. 

This letter is linked with Avon’s Long Term International Assignment Policy - Tier 1 (including the Global Tax Equalization Policy) (hereafter “the Policy”), as may be in effect from time to time. This letter summarizes key points in the Policy as it pertains to your relocation and may contain certain additional requirements and terms. The Policy may be changed from time to time as legal requirements may dictate, new practices may require, or for other reasons at the discretion of Avon. In terms of this specific assignment, local conditions and guidelines applicable to Avon international assignees in the Host Country will also govern your assignment. 

DETAILS

The following provisions will apply beginning on or about October 15, 2016, pending grant of your work permit/visa in the Host Country, and your acceptance of the terms and conditions of this letter.   

The terms outlined will apply for up to two (2) years, and is anticipated to be reviewed on or before October 31, 2018.  

Susan Ormiston                    Page 2 of 11                    August 8, 2016

The assignment may be less than two (2) years subject to the discretion of Avon.  The expected duration of this assignment is not a guaranteed term of employment or term of assignment, and your employment remains at-will meaning that your employment and/or assignment can be terminated at any time, with or without notice.  

In the event that your assignment exceeds the expected end date, and an extension assignment letter has not been issued, you have not been localized and/or you have not been repatriated, the terms and conditions in this LOA will continue to prevail.

COMPENSATION & BENEFITS OVERVIEW

Total Compensation  
Your total compensation includes your annual base salary, your annual incentive awards, your long term incentive plan awards, and any other bonuses or performance-related incentives received during this assignment. It also incorporates international assignment-related allowances and benefits as detailed throughout this letter. Your compensation will be subject to Home Country hypothetical tax and you will be paid the net amount, as described below. 

Base Salary 
As of your start date in the Host Country, your annual base salary will be US$ 519,000.00. Although this salary is quoted on an annual basis, it does not imply a specific period of employment.  Your salary will continue to be based upon your Home Country salary ranges. Your next salary review is scheduled for April 2017.

You will remain on the Avon USA payroll during your international assignment. You may, however, elect to receive a portion of your salary in the Host Country. Please refer to the Compensation Delivery section for more details. 

Annual Incentive Plan  
Your target award for 2016 is currently 60% of your earned eligible base salary, subject to and in accordance with Avon applicable annual incentive program for your level. 

Your annual bonuses, if any, will be paid via the Avon-USA payroll while you are on assignment.

Long Term Incentives
While on assignment, you will continue to be eligible to participate in the long-term incentive programs available for your level. 

Avon reviews the annual and long-term incentive programs from time to time and reserves the right to change the programs at its discretion.

Compensation Delivery
A balance sheet approach will be used to ensure that your purchasing power in the Host Country is similar to what it would be had you remained in the Home Country.

A copy of your balance sheet is attached. You will initially continue to receive your salary via your Home Country payroll. Should you decide to receive a portion of your salary in the Host Country during your assignment, please contact your EY Assignment Services contact (see Pre-Departure and Relocation Support section for further details) in writing with the desired home and/or host salary 

Susan Ormiston                    Page 3 of 11                    August 8, 2016

payments. However, you will not begin receiving funds in the Host Country until you confirm that you have opened a bank account in the Host Country. 

Associate Benefits
While on assignment, the Avon Home Country policies and benefit programs as in effect from time to time will govern your employment. The Avon Home Country payroll department will continue to handle any payroll deductions required for social security taxes, other mandated contributions and contributions to the Avon-sponsored benefit plans in your Home Country. 

International Medical Insurance
You and your eligible accompanying dependents will be enrolled in Avon’s international assignee medical plan while you are on assignment. This plan provides coverage for medical, dental, prescription drug, and medical evacuation. Additional details will be provided separately.  Avon reserves the right to amend, modify or terminate its benefit plans at any time.

Vacation & Holidays
Vacation eligibility is based on the Avon-USA vacation policy. Your public holidays will be based on the local Host Country holiday schedule.

TAXATION

Tax Equalization 
Under the terms of the Policy, Avon’s tax reimbursement policy applicable for your assignment is called ‘tax equalization’. The objective of tax equalization is to ensure that your tax liability while on assignment in the Host Country will be approximately the amount that would be payable if you were working and living in your Home Country. The tax equalization policy is limited to income tax and social taxes. In order to equalize the tax obligation of your foreign service, a hypothetical Home Country income tax is computed and deducted from your total salary. A tax equalization calculation/reconciliation will be prepared at the end of each calendar year to determine if the appropriate Home Country taxes were withheld on your total compensation during your foreign service through your hypothetical income tax deductions. This may result in a balance due to Avon or due to you. 

Payment of Assignment Allowances and Reimbursements
Unless otherwise stated, all assignment allowances/reimbursements will be paid net-of-tax.

Tax Assistance
You are required to attend a tax briefing with Avon’s preferred tax advisor; Ernst & Young LLP (hereafter “EY”) in your Home and Host Country to discuss the tax equalization policy and your Home Country and Host Country tax issues and obligations. The scope of the briefings will include any special tax rules applicable to you on your international assignment; including residency issues (and the requirement to complete special departure documentation) and personal tax concerns related to the international assignment.
 
EY will also be completing your income tax returns while you are on assignment. It is therefore imperative that you make contact with them to ensure that all necessary information is being compiled and that the tax process is in place to file your tax returns on a timely basis. Please contact EJ Kim of EY-United States. Contact information is as follows:
    
Telephone: [------]            Email: [------]

Susan Ormiston                    Page 4 of 11                    August 8, 2016

You should also contact EY-UK regarding your Host Country returns. Contact information is as follows:

Telephone: [------]         Email: [------]

Lorraine Williams, a Senior Manager at EY in the United States, is responsible for the day-to-day coordination of tax issues regarding Avon’s worldwide expatriates. She may be reached at [------] or via email at [------]. Jay Sternberg, a tax partner at EY in New York, is responsible for Avon’s worldwide expatriate tax work.

In the event of severance, tax treatment of any payments made to you will be reviewed and income tax withholding adjusted accordingly, if necessary. 

Hypothetical Tax
As stated above, a hypothetical Home Country tax will be deducted from your total compensation when it is paid to you which includes base salary, annual incentive awards, long term incentive plan awards and any other bonuses or performance-related incentives received during your assignment. Severance payments may also be subject to hypothetical tax. A determination will be made by Avon at the time of payment, in consultation with EY. 

Social Security
The hypothetical tax deduction does not cover your Home Country social security obligation. The Home Country payroll department should continue to handle this deduction while you are on assignment. You will not be responsible for any Host Country social taxes incurred while on assignment. These taxes will be paid on your behalf by Avon Cosmetics Limited 

PRE-DEPARTURE AND RELOCATION SUPPORT

Assignment Management
Avon has partnered with an external firm EY Assignment Administration, for assignment management services during your assignment. Your EY Assignment Services contact is Neepa Patel who can be reached via email at [------] or telephone at [------].

Your EY Assignment Services contact will have the overall responsibility to coordinate and guide support services such as your pre-assignment consultation and initiation of all vendor services.

Upon receipt of this signed LOA, EY will contact you for your pre-assignment consultation.

Weichert Workforce Mobility (Weichert)
Avon has partnered with a third-party relocation company, Weichert, to assist you in coordinating your relocation support. Your counselor will have the overall responsibility to coordinate and guide support services and expense reimbursement of all assignment related expenses. 

Expense Reimbursement 
Your Weichert Relocation Counselor will be responsible for expense reimbursement of all assignment related expenses. Assignment expenses are not to be submitted through the internal expense system or any local expense process for reimbursement without prior approval from Avon Global Mobility. Most assignment expenses are taxable and therefore Avon Global Mobility and your Weichert Relocation Counselor must process all assignment expenses to ensure proper tax 

Susan Ormiston                    Page 5 of 11                    August 8, 2016

compliance for Avon. Expenses must be submitted to Weichert for reimbursement within three (3) months of the date the expense was incurred.

Work Permit/Visa
You are required to meet the entry and visa/work permit requirements of the Host Country prior to your arrival. Avon will therefore arrange for all appropriate immigration documents, visas, and work permits to be obtained in order to facilitate your assignment. Your assignment terms and conditions are subject to this compliance, and as such you are not permitted to move to the Host Country and begin the role until you have obtained all necessary immigration documents.

Avon will cover the costs associated with you and your accompanying dependents obtaining the appropriate immigration documentation, including the costs of any medical examinations and police checks. While Avon will assist you in preparing your passport(s) and visa/work permit applications, you are responsible for taking all required action to secure these documents. You are also responsible for ensuring your passport and the passport of your accompanying dependents, as well as any necessary endorsements remain valid and up to date whilst on assignment. 

You are not permitted to work in the Host Country until you have obtained proper work authorization. You should consult with the Avon Global Mobility team and/or the Avon designated immigration services law firm prior to making plans for business travel or relocation to ensure that your plans are compatible with immigration regulations in the Host Country. Compliance is a very serious matter for Avon and Associates are expected to comply with the Host Country laws and regulations.

Pre-Assignment Trip
To prepare you for your upcoming assignment, Avon will provide you and your spouse a pre-assignment trip to the Host Country in order to view housing options. You should also use this visit to meet with future colleagues. The duration of the trip is a maximum of four (4) days/three (3) nights and includes air fare and accommodation as per the Avon Business Travel Policy, as well as reasonable meals and ground transportation. Your EY Assignment Services contact will arrange for a local Destination Services Provider to support you during this trip.

Destination Services 
To assist you in settling into your new environment, you are entitled to five (5) days of destination services in the Host Country which will be provided through outside consultants chosen by Avon. 
Destination services will include the following:

		
	•
	Home Search - including an assessment of your housing needs, home finding and viewings and standard lease negotiations

		
	•
	Area Orientation and Settling In - including city and area tour once housing is found, utility connection, location registration and bank account set up

Where possible, destination services should coincide with your Pre-Assignment Trip. 

Miscellaneous Relocation Allowance
You will receive a one-time net payment equivalent to one month’s base salary, not to exceed US$10,000. This will be paid to you upon your start date in the Host Country.

This allowance is designed to subsidize expenses not otherwise covered by the provisions of this letter, including but not limited to: house cleaning, membership cancellations, excess baggage, 

Susan Ormiston                    Page 6 of 11                    August 8, 2016

automobile registration, or purchase of special clothing and minor appliances (DVD player, toaster, tea kettle, blender, vacuum cleaner, etc.).  

Spousal/Partner Support
Since your spouse/partner will relocate with you, Avon will provide a one-time net allowance of US$5,000 at the beginning of your assignment, to contribute towards your spouse/partner’s career and personal development in order to help them better assimilate into daily life in the Host Country. Example of expenses the allowance is intended to cover includes maintaining professional skills, pursuing educational opportunities and participation in social groups/activities.  

Relocation Travel
Avon will provide you and your accompanying dependents with one-way, direct travel from New York, United States to London, United Kingdom on relocation. The mode and class of transportation will be in accordance with Avon’s business travel guidelines. You will need to submit your invoice for relocation travel to your Weichert Relocation Counselor for reimbursement. 

Temporary Living
If your permanent accommodation in the Host Country is not immediately available, or you are required to vacate your Home Country property prior to departure, you will be reimbursed for actual temporary living expenses (including lodging, meals, gratuities and incidental expenses) for up to a cumulative maximum of thirty (30) days. 

You should contact your Weichert Relocation Counselor before making any arrangements for temporary lodging.

You will also be reimbursed for the cost of one medium sized rental car for the period you are in temporary lodging. You will need to submit your invoice for car rental to your Weichert Relocation Counselor for reimbursement.

Shipment of Household Effects
Avon will make the necessary arrangements with an approved third party moving company to ship your household and personal effects from New York, United States to London, United Kingdom. The cost of shipping, insuring and clearing your goods through customs will be borne by Avon. You will be responsible for any duty on luxury items or goods that exceed duty free limits. You will be provided with the following maximum shipping allowance:

		
	•
	Air shipment of one container up to a maximum size of 2.6 cubic meters

		
	•
	In case of moving into unfurnished accommodation, sea/surface shipment of one standard 40ft container 

Insurance coverage will be arranged through a third party insurer, and you will be required to complete an Inventory of Household Goods to detail the estimated value of the items you are shipping. 

In general, in line with Host Country customs regulations, belongings will not be shipped until work permits, visas and all other required documents are secured. 

Please refer to the Policy for a detailed outline of shipping exclusions.

Susan Ormiston                    Page 7 of 11                    August 8, 2016

Major Appliances and Fixtures Allowance
Avon does not support the shipment of major appliances to or from the Host Country. As such, you will be reimbursed for the reasonable cost of purchasing major appliances that are not provided with your new residence in the Host Country, or available from prior assignees. The appliances remain the property of Avon. Please refer to the Policy for the definition of major appliances and consult your EY Assignment Services contact for pre-approval of your appliance purchases.

Storage
If your Home Country property is to be rented out whilst you are on assignment, Avon will pay for up to 30 days of storage and insurance for the goods that are not to be shipped to the Host Country. 

Avon will not cover any costs associated with the storage of personal and household effects in your Home Country.

DURING THE ASSIGNMENT

Goods and Services Differential  
The goods and services differential is calculated by taking the difference between the goods and services (hereafter “G&S”) index of your Host and Home location times the amount that someone at your income level and family size would typically on goods and services in the Home Country.  The portion of your salary used on goods and services in the Home Country is also referred to as your spendable income.  It is the Home Country spendable income, not total base salary that is protected from the higher costs of goods and services. 

The G&S differential will be determined at the start of your assignment however Avon’s independent data provider continually monitors exchange rates and movements in the rate of inflation for both countries.  As conditions change in the Home and/or Host Countries, the differential may be increased, decreased, or removed based on new survey data from the data provider. Your balance sheet will reflect changes, positive or negative, to your goods & services index and exchange rate only when there is an adjustment for inflation or new pricing surveys are available. Your balance sheet will be updated in April and October of each year.  The calculation of the G&S differential will utilize your current annual base salary, up to a maximum annual base salary of US$200,000.

You will begin to receive the G&S differential, if applicable, once you have moved out of temporary accommodation into permanent accommodation in the Host Country. Please notify your EY Assignment Services contact once you have secured permanent housing so that the applicable G&S differential can be implemented. The G&S differential will be paid in Host Country currency via the Host Country payroll.

Host Country Housing and Utilities Allowance
Avon will be assuming the full cost of your housing in the Host Country based on housing costs for individuals with your salary and family size in London per the information provided by the independent cost of living data provider. 

Your housing allowance is up to GBP 8,000 per month for furnished housing, and will be delivered via payroll. If your actual rent exceeds your housing allowance, any excess will be your own responsibility and not covered by Avon. If applicable, additional taxes and condo fees will be covered in addition to your housing allowance. 

Susan Ormiston                    Page 8 of 11                    August 8, 2016

A separate monthly allowance will also be provided to cover the cost of Host Country utilities (excluding telephone, cable television & internet service costs). This allowance will be reflected on your balance sheet and delivered via payroll. 

Host Country Leases: The decision as to whether you will reside in Company leased or individually leased quarters will be made by Avon after a review of the tax and legal implications involved and therefore final approval of your housing selection will be required from Avon Global Mobility. No lease commitment should be signed prior to this determination or prior to review of the lease by Avon Global Mobility.

When securing your housing, a security deposit may be required and therefore Avon may approve to provide an advance to assist in covering this cost. When the deposit is refunded at the end of the lease, this amount will be repayable to Avon.
 
Your Duty of Care: You are required to exercise due diligence while you inhabit and maintain the rental property in accordance with the terms and conditions of your rental agreement. You should understand the meaning of acceptable wear and tear in your host location. If liability for property damage (including cabinet or furniture damage) occurs due to the fault or negligence of you and/or your family, Avon will not reimburse for damages. You will be responsible for any and all repair and maintenance expenses throughout your assignment (including lawn care/garden maintenance and pool maintenance). Avon reserves the right to collect any amount withheld from the Company-paid security deposit from any amount you are due from Avon, including but not limited to: base salary, bonus, any incentive compensation awards, assignment allowances, expense reports, tax equalization calculations, etc. to the extent allowed by law.

Host Country Transportation
You will be provided with transportation support in the Host Country in accordance with local policy. 

Home Leave Allowance
Avon will provide you with an annual home leave allowance which is designed to give you the opportunity to renew ties with family, friends and work associates in your Home Country. The allowance will be calculated based upon a return airfare from London, UK to New York, USA, for you and your accompanying dependents via the most direct route available, plus the estimated cost of ground transportation to/from the airport. Class of travel is business class. Your home leave allowance will be paid as a lump sum once per year at the beginning of your assignment and on the following anniversaries of your assignment start date. 

You are expected to use vacation leave during home leave, and your final trip should not be scheduled within three (3) months of your anticipated assignment end date.   
        
Emergency Medical Assistance/Emergency Evacuation  
You and your accompanying dependents are also covered under Avon’s emergency evacuation policy through Travel Guard should such a situation arise. To contact Travel Guard, call toll-free [------] (International Collect: [------]) and reference Avon's Group Name and Policy Number: Avon Products Inc. - [------].  Please keep this information with you when you travel. You can also access the Travel Guard website: www.chartisinsurance.com/travelguardassistance to find travel resources and a complete list of recommended healthcare providers in various locations throughout the world.  You will be provided with a brochure and wallet card under separate cover.

Susan Ormiston                    Page 9 of 11                    August 8, 2016

Emergency Leave 
If you have to return to your Home Country because of death or serious injury to a member of your immediate family, direct return economy class airfare(s) and ground transportation will be reimbursed for you and your accompanying dependents. You will be allowed up to seven (7) paid days as emergency leave.   

SPECIAL PAYMENTS

In some locations, certain Host Country special payments and Host Country severance (termination indemnity) payments are required by local law. Should you qualify for and/or receive Host Country additional compensation required by local law, you understand that you are not entitled to these benefits under this LOA and you must turn over these benefits to Avon.  In some cases, such Home Country benefits, payments, allowances or differentials will automatically be offset for the Host Country special payments, at Avon's direction.

DATA PRIVACY

During the assignment, your personal information will be collected and stored electronically in order to process salary payments, track your assignment details and generate other reports. By signing this letter, you expressly consent to the transfer of any information by Avon to related companies. 

CERTAIN REIMBURSEMENTS AND PAYMENTS

Payments (including reimbursements) addressed in this letter may be subject to Section 409A of the U.S. Internal Revenue Code (“409A”) for international assignees who are subject to U.S. tax law.  In order to ensure compliance with 409A, please note the following:

Many of the benefits addressed in this letter are provided to you via reimbursement from Avon.  For tax reasons, in many cases (noted above), Avon commits to providing you with a reimbursement as soon as administratively possible but no later than March 15th of the year following the year in which the underlying expense is incurred.  However, in order for Avon to be able to reimburse you on a timely basis, you must submit the reimbursement request and the supporting documentation as soon as possible in accordance with normal expense reimbursement policy, but no later than January 31st of the year following the year in which the underlying expense is incurred.  Your failure to meet this deadline may lead to Avon being unable to reimburse you by the applicable March 15th (or other applicable date), in which case you could become subject to significant additional taxes and penalties under 409A, and Avon will not provide additional payments to you to cover any such additional taxes and penalties. Avon makes no representation about the effect of 409A on the provisions of this letter and Avon will not have any liability to you in the event that you become subject to taxation under 409A.

EMPLOYMENT CONSIDERATIONS

It is understood that in accepting this assignment, the terms and conditions are to be kept strictly confidential and to be the basis of your employment in the Host Country. It is also understood that you will continue to adhere to the spirit of Avon policies, and that Human Resources policies governing compensation and benefits as they relate to your particular case will be determined by reference 

Susan Ormiston                    Page 10 of 11                    August 8, 2016

to Avon’s practices rather than Avon Cosmetics Limited’s practices, as well as by reference to the Avon Long Term International Assignment Policy - Tier 1 and Global Tax Equalization Policy.  It is also understood that all of the items covered in this letter are subject to your continued satisfactory performance.

END OF THE TERM 

Upon successful completion of your assignment in the Host Country, it is Avon’s current intent to offer you a package to continue in your role.  Of course Avon’s business structure and other circumstances cannot be known at this time and as such, at the end of your assignment period, you may be offered repatriation back to your Home Country, an extension of your assignment in the Host Country, or localization in the Host Country. 

If you are repatriating back to your Home Country, you will be provided with repatriation assistance in accordance with Avon’s Long Term International Assignment Policy - Tier 1 in effect at the time. All applicable international on-assignment allowances will be discontinued upon the end of your assignment, or, if later, on the date that is six (6) months following the date that you are notified that your assignment will end.  

If it becomes necessary for Avon to initiate action resulting in the termination of your employment (except for cause) while on international assignment, you will be reimbursed for reasonable expenses related to repatriation in accordance with the Policy as in effect at that time, which may include:  repatriation airfare and return shipment to your Home Country of the household effects in the same amount as provided for during relocation and a Miscellaneous Relocation Allowance. To be eligible to receive these benefits, relocation to your Home Country must occur within 30 days of termination. 

If, while on assignment or immediately upon the conclusion of your assignment, your employment is terminated under circumstances that would trigger the payment of severance benefits under the Home Country’s severance plan as may be amended from time to time, then you will also be entitled to receive severance benefits.  Any severance benefits payable to you will be payable under such severance plan (or as if the benefits were payable thereunder) and subject to terms and conditions of such severance plan, including, for example, provisions requiring that you sign a general release of claims, non-competition and non-solicitation provisions and other specified covenants and provisions related to 409A (which may include any applicable six-month delay for certain payments made upon termination of employment).  Notwithstanding anything to the contrary, if your employment is terminated while on this assignment or anytime thereafter and you are otherwise eligible for severance benefits under the Home Country severance plan as described above or otherwise, any cash severance benefits that you are then entitled to will be no less than 24 months of base salary (subject to applicable taxes), in all cases subject to you signing a severance benefit agreement in such form as Avon determines, which shall include, for example, a general release of claims, non-competition and non-solicitation provisions and other covenants. In no case will severance be provided to you if you voluntarily resign or are terminated for cause (as determined by Avon in accordance with its plans and policies). 

This letter will be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to its conflict of laws principles.

Susan, we are very pleased you will be relocating to the United Kingdom to continue your important role with Avon.

Sincerely,

                            

Susan Ormiston                    Page 11 of 11                    August 8, 2016

	
				
	/s/ Sheri McCoy
	 
	8/8/16
	 

	Sheri McCoy
	 
	Date
	 

	Chief Executive Officer
	 
	 
	 

	 
	 
	 
	 

    
ACKNOWLEDGEMENT AND ACCEPTANCE

I hereby agree to and accept the foregoing terms and conditions.  I acknowledge that I have received the following documents: the Avon Long Term International Assignment Policy and Summary - Tier 1 and the Avon Global Tax Equalization Policy. I understand that Avon’s policies are subject to amendment and change as deemed appropriate by the company.  

	
				
	/s/ Susan Ormiston
	 
	8/16/16
	 

	Susan Ormiston
	 
	Date
	 

		
	cc:
	Gina Fitzsimons, GVP HR - Compensation and Benefits & Global Functions

Michelle Parczuk, ED HR - Western Europe
Pedro Conejos, ED Compensation and Benefits - International & Global Mobility
Lorraine Williams (EY)

NOTE:  All costs of this assignment will be charged to Corporate Human Resources cost center.Exhibit

Exhibit 10.9
[Avon Letterhead]

12 June 2017 

Private and Confidential 

Miguel Fernandez

Dear Miguel,

It is with great pleasure that I am able to offer you on behalf of Avon Cosmetics Limited ("the Company"), a wholly-owned subsidiary of Avon Products, Inc. ("Avon") the permanent position of Global President of Avon.  The Company is part of the Avon group of companies (“the Avon Group”).  You will report to Sheri McCoy, Chief Executive Officer of Avon, and your expected commencement date will be on or about 14 August, 2017.  This offer is subject to successful receipt of a UK Visa.

The terms and conditions of your employment are set forth herein and in your contract of employment, attached hereto and incorporated in all respects. 

Your annual base salary will be £530,000 payable in accordance with the Company's remuneration practices described in your contract of employment. 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 the annual incentive program available to similarly situated Executive Vice President-level Associates. Your annual target award in 2017 will be 80% of your earned eligible base salary, provided that your employment commences on or before 1 October, 2017. Annual awards are contingent on relevant individual and business performance goals being achieved and the terms and conditions of the applicable annual incentive program. Annual incentive program payments, if any, are generally made early in the year following the performance period.  For the 2017 year, the value of your annual incentive award shall be reduced pro-rata based on your employment commencement date (subject to applicable performance measures being achieved).  Please note that if your employment commences after 1 October, 2017 for any reason, you will not be eligible for a 2017 annual incentive program award.

You will be eligible to participate in the long-term incentive program (“LTIP”) available to similarly situated Executive Vice President-level Associates. Your first such regular LTIP award is expected to be granted on your start date, with an expected recommended target value of 260% of your eligible, annual base salary, subject to approval of the Compensation and Management Development Committee of Avon’s Board of Directors.  This assumes your employment commences no later than October 1, 2017.  Should your start date be after October 1, 2017, then you will not be eligible to receive a 2017 LTIP award and then your first award would be the regular 2018 award, planned to be granted in March, pursuant to the terms and conditions of the 2018 LTIP program available for similarly situated associates.  

Subsequent LTIP awards, if any, generally will be granted in March of each year, in the same form and subject to the same terms and conditions as LTIP awards for similarly situated Executive Vice President-level Associates. Long-term incentive awards for your level are currently delivered 1/3 in time-based Restricted Stock Units (RSUs), 1/3 in performance RSUs (PRSUs) and 1/3 in premium-priced Stock Options.  Avon reviews the annual and long-term incentive programs from time to time and reserves the right to change the applicable award mix and the design of the programs at its discretion. 

The Company believes strongly in a culture of ethics and compliance and you will be covered by and must comply with Avon's Code of Conduct and other policies. In particular, the Company expects all staff to respect the privacy of other individuals and protection of their personal data. This offer is subject to you agreeing and signing up to our data privacy terms, which are set out separately.

As a senior executive of Avon, you will also need to adhere to stock ownership guidelines, which encourage executive share ownership and align executive interests with those of shareholders. You will have an ownership target equal in value to three times base salary and will be expected to hold 50% of net shares acquired upon vesting of equity awards until this target has been satisfied. Additionally, you will be covered by Avon's Compensation Recoupment Policy and Avon’s Change in Control Policy. 

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.

Your employment is contingent upon you passing a satisfactory background investigation, reference checks and compliance with immigration law. As you may be aware, government regulations requires that the Company verify the employment authorisation status of all new employees. 

Once you sign your new contract we will send you some additional forms to complete:

		
	•
	Pension entitlement and enrollment

		
	•
	Bank details

		
	•
	Avon’s data privacy agreement

		
	•
	When you join Avon you will be required to access our HR system and update both your contact information and personal information.

		
	•
	You will also be required to bring a copy of your right to work documents on your first day at Avon 

Please contact Gina Fitzsimons if you have any queries.

In the meantime we look forward to you joining the Company. 

Yours sincerely,

/s/ Susan Ormiston
___________________
Susan Ormiston
Senior Vice President, Human Resources and Chief Human Resources Officer

cc: Gina Fitzsimons, Group Vice President, Human Resources, Global Compensation & Benefits & Global Functions,

Accepted and Agreed to:

/s/ Miguel Fernandez                            13/6/17
____________________________                    ________________________
Miguel Fernandez                            Date    

[Avon Letterhead]

Contract of Employment

This statement contains the main terms and conditions of your employment with Avon Cosmetics Limited (“The Company”), for the position of Global President of Avon.
    
Please ensure you read and understand this document.   If you have any queries relating to your employment please contact the Human Resources Department.

	
			
	Surname:
	Fernandez

	Forename:
	Miguel

	Address of Employee:
	TBC

	Post code:
	TBC

	Job Title:
	Global President

	Reporting to:
	Chief Executive Officer

	Grade:
	E02 (Executive Vice President)

	

Effective Date:

Continuity of Employment:

Salary:
	14 August 2017 (subject to successful receipt of a UK Visa)

No previous service counts towards your continuity of employment.

£530,000 per annum

	Annual Incentive Programme:
	As stated in your offer letter, you are eligible for the annual incentive programme available to similarly situated Executive Vice President-level associates, with a target level of 80% of earned eligible base salary.  The actual amount of bonus awarded is contingent on relevant individual and business performance goals being achieved and the terms and conditions of the applicable annual incentive program. The payment of bonus and the rules of the scheme are at Avon’s discretion and are subject to change. Details of the bonus scheme will be supplied annually.

	

One off bonus payments:

	The Company recognises that by joining the Company, you will forfeit a significant amount of long-term incentive value in your current role and so the Company will pay a one-time ‘sign on’ cash bonus in the sum equivalent to USD 1,400,000.

	
			
	

	Furthermore, the Company recognises that you have forfeited your 2017 annual bonus with your current employer and so the Company agrees to pay an additional one-off cash bonus payment in the sum the amount equivalent to USD 104,000.  

The above payments will be converted to GBP and made to you (less all relevant tax and other normal deductions) in March 2018.  These payments will be made provided that you are still actively employed with the Company on the date of payment.  Please note that “actively employed” means that you are still employed by the Company (or one of the companies within the Avon group) and are not working out your notice or on garden leave.

If you resign from your employment with the Company for any reason or your employment is terminated for cause (as defined below) within 12 months of your employment commencement date, then you agree to repay both of the bonuses described in this section in full. The Company reserves the right to deduct any amount owed from your salary or other payments made under this agreement.

	Long Term Incentive Plan:
	As stated in your offer letter, you are eligible to participate in the long-term incentive plan available for similarly situated associates at your level.   Further details of the scheme are available on request.  Please note the terms of the scheme are subject to change.

	Working hours:
	Weekly hours: 37.5 plus such additional hours as are necessary for the proper performance of your duties.  You acknowledge that you shall not receive further remuneration in respect of such additional hours.

	Location:
	You will be based at Avon’s corporate headquarters in Chiswick.
You may be required to work at other Avon sites from time to time.

	Remuneration:
	Method of Payment
You will be paid monthly in arrears by or on the last working day of each month by direct credit transfer to your bank or building society account.

Basic Pay Review
Your basic pay will be reviewed annually based on performance.

Deductions
The Company reserves the right to make deductions from your pay in the event of any monies owing to the Company but attributable to you.

	 
	 

	Normal Working Pattern:
	The Company operates in accordance with the Working Time Regulations 1998.  If you require further 

	
			
	 
	information please refer to the Company Working Hours Policy held electronically on the HR website.

	Flexibility:
	Avon will expect you to perform all reasonable tasks assigned to you during the course of your employment which it believes you are competent to perform; you will be required to be flexible in your job responsibilities and to react to the needs of the business.  This means that you may be required to:
1. vary your working hours
2. to travel on the Company's business (both within the United Kingdom or abroad) as may be required for the proper performance of your duties under the appointment
3. carry out duties which may be outside the scope of your normal responsibilities but which you are competent to perform.

The Company will give reasonable notice for any changes with regard to occasional travel that might affect you and will always strive at a very minimum to provide 48 hours’ notice. During your employment, you will not be required to work outside the United Kingdom for any continuous period of more than one month.

	Private Medical Insurance:
	You will be eligible for private medical cover for yourself and up to family cover, depending on your personal circumstances

If you wish to join the scheme you can do so by using our Flexible Benefits system, UP2U.  You will receive confirmation of the website and access details shortly after joining the Company.
Further changes to your PMI subscription can only be made once a year when the UP2U ‘window’ is opened to all eligible employees or if a ‘lifestyle event’ (marriage/divorce/birth of child) occurs.
Please note PMI is a benefit which is taxable at source.

	Life Assurance:
	4 times annual salary is paid on death in service (subject to a cap of £1.8 Million).

	Company Sick Pay:
	The Company operates a Company Sick Pay Scheme for the benefit of its employees which is in addition to Statutory Sick Pay entitlement. All payments made under this company scheme are at the sole discretion of the Company.  Please refer to the Company Sickness Absence Policy which outlines the circumstances in which Company sick pay may be withheld.

	 
	Service with Avon                                                        Entitlement
0-1 year                                                                        4 weeks
1-2 years                                                                       8 weeks
2-5 years                                                                      16 weeks
5+ years                                                                       26 weeks

	Pension Scheme:
	

Avon operates an employee contributory pension scheme which is open to all permanent and fixed term 

	
			
	 
	employees.  Under current Auto Enrolment legislation Avon is required to automatically enroll employees who meet certain criteria into a qualifying scheme. Full details of the current Avon Pension Scheme, the enrolment criteria and how Auto Enrolment is applied can be found in the enclosed pension documents.  
For tax purposes, the Pension Input Period in the Avon Cosmetics Pension Plan ends on 31st March each year.

	 
	 

	Company Car:
	You are eligible for a Company Car at the benchmark
level for your grade or an annual cash equivalent of
£15,252, subject to normal deductions. 
You will be provided separately with a copy of the Company Car policy.

Further details can be obtained from the Car Fleet department on [-].

	Holiday Entitlement:
	The Company’s holiday year runs from 1 January to 31 December.  You are entitled to 28 days holiday per year plus 8 public holidays.
An employee will accrue holiday from the day their employment with Avon starts.
At the conclusion of your employment, you will be paid for any accrued but untaken holiday.  
Holiday entitlement on termination will be calculated according to the percentage of the year worked i.e. as the number of days worked divided by 365 (366 for a leap year). 
Should you have taken in excess of your accrued entitlement the company may deduct the cash equivalent from your final salary.
At the Company’s discretion you may be required to reserve several days of your holiday entitlement.  You will be notified of any such requirement in advance on an annual basis.

	Flexible Benefits:
	The Company operates a self-service electronic flexible benefits scheme called UP2U. Shortly after joining the Company you will be sent details of Avon’s UP2U scheme which will allow you to opt into the Private Medical Scheme and to purchase childcare vouchers at that time. 
Following this there are annual enrolments for the flexible benefits scheme.  Enrolment details will be sent to you at this time.  

	Notice Period:
	In the event of involuntary termination (other than for cause) the Company agrees to pay you the equivalent of 24 months’ base salary and support the repatriation of your family to Mexico, on the basis that you enter into an appropriate settlement agreement with the Company which shall include for example a general release of claims, non-competition and non-solicitation provisions and other covenants. 

In all other circumstances, you are entitled to receive and are obliged to give 6 months’ notice to terminate your employment.

	
			
	 
	The Company reserves the right to pay salary in lieu of notice.  Alternatively the Company reserves the right to terminate your employment without notice or salary in lieu of notice in accordance with the Disciplinary Procedure.    

Should you wish to resign from the Company, a letter of your intended resignation should be sent to the Company. The Company requires you to work your notice period unless otherwise mutually agreed.  If you fail to give notice to the Company or give the incorrect notice, the Company shall be entitled to withhold a sum from any monies due to you equivalent to the value of the salary you would have been entitled to during the un-worked notice period. 

 For the purposes of this clause, a termination “for cause” shall mean a termination by the Company because of your (a) continued failure to perform substantially your duties; (b) your wilful failure to perform substantially your duties or other wilful conduct that is materially detrimental to the Company; (c) your personal dishonesty in the performance of your duties; (d) your breach of fiduciary duty involving personal profit; (e) your commission or conviction of a felony or misdemeanour or pleading guilty to a felony or misdemeanour; (f) your wilful or significant violation of any Avon rule or procedure, including without limitation, absenteeism, violation of safety rules or insubordination; or (g) violation of the Code of Conduct.  All determinations of whether any of the events above have occurred and/or whether cause shall have occurred will be determined by the Company in its sole discretion.

	

Garden Leave:

Company Equipment:
	 
The Company reserves the right to require you not to
 attend your place of work for all or part of your notice
 period, in its absolute discretion.  This period is referred to as “Garden Leave”.  During Garden Leave:
(a)  the Company shall be under no obligation to provide any work to you and may revoke any powers you hold on behalf of the Company (or any group company);
(b) the Company may require you to carry out alternative duties or to only perform such specific duties as are expressly assigned to you, at such location (including your home) as the Company may decide;
(c) you will be continue to receive your basic salary and normal contractual benefits in the usual way and subject to the terms of any benefit arrangement;
(d) you shall remain an employee of the Company and bound by the terms of this agreement (including any implied duties of good faith and fidelity); and
(e) the Company may exclude you from any premises of the Company (or any group company).

 Any accrued but unused holiday entitlement shall be deemed to be taken during any period of Garden Leave.

If you are allocated any Company equipment and your employment is terminated for whatever reason, unless otherwise agreed in writing, you must immediately return all company equipment in good working order as received by you.

	
			
	 
	Deductions may be made from any final payments for
any associated loss or damage.

	Code of Conduct:
	

Some examples are outlined below, however this is
not exhaustive and you should refer to the Code of
Conduct on the Avon Global Website for further
guidance.

	Code of Conduct - Gifts:
	

The exchange of gifts is often used as a way to enhance business relationships, and within the guidelines stated in Avon’s Code of Conduct and Ethics, this is an acceptable practice. Avon permits gifts only of “nominal value,” such as meals, fruit baskets, and bottles of wine, flowers, chocolates/candies, tickets to occasional sporting events or concerts, and other routine gifts. 

Any gifts of greater than nominal value or that otherwise exceed the common courtesies associated with ethical business practices could give the appearance of impropriety and must not be accepted. Examples of gifts that are not permitted include vendor-sponsored trips, vacations, luxury leather accessories, electronics or sporting equipment. Cash and/or loans of any amount are strictly prohibited at all times. 

These same standards apply to associates of all levels within the company. If there is any question as to whether or not the value of an offered gift is more than nominal, consult with your Manager or HR. 

	Code of Conduct - Conflict of Interest:
	

In line with Avon’s Code of Conduct and Ethics, employees have an obligation to act in the best interest of the Avon. Conflicts of interest are prohibited, which means that no employee should place himself or herself in a situation in which personal interest might conflict with the interest of the Avon. A breach of these rules may lead to disciplinary action.

A “conflict of interest” occurs when an associate’s private or family interest interferes in any way, or even appears to interfere, with the interest of the Avon. A conflict of interest can arise when an associate takes an action or has an interest that may make it difficult for him or her to perform his or her work objectively and effectively.

	Code of Conduct - Other Interests:
	You should not engage directly or indirectly in any business or employment if, in the reasonable opinion of the Company, this work may have an adverse effect upon the performance of your duties for the Avon Group.

	Inventions and Improvements:

	Any invention, design or improvement upon any existing invention, product or work during the course of your employment will belong to the Company.  This includes any computer programme or design whether or not it is capable of patent registered design, design right, database,

	
			
	 
	

copyright or any other similar protection, and whether you made or discovered it alone or in conjunction with anybody else.  You must immediately tell your Line Manager of any such invention or improvement.

If the Company asks you to do so, you must comply with any requests that it makes in order to ensure that the invention or improvement becomes or remains the property of the Company or its nominee.

	Confidential Information:
	You must not (at any time) either during or at any time after the termination of your employment:
-divulge, disclose or communicate any confidential Information to any person or persons, firm or company other than duly authorised employees of the Company
or
-use any confidential information for your own purposes or for any purposes other than those of the Company.

You must at all times exercise utmost care, attention and discretion in handling any confidential information relating to the Avon Group or personal information relating to an individual of which you are aware.

For the purposes of this clause, confidential information includes any of the below:
-information in whatever form relating to the organisation
-business plans
-finances
-transactions
-terms of business
-marketing strategies
-sales
-customers and prospective customers
-suppliers
-design and manufacturing process
-technical specifications
-private affairs of the Company
-personal information relating to an individual
-other information of a confidential nature

	Data Protection and Privacy:
	All information within the Avon Group is processed in accordance with the requirements of the Data Protection Act. The Company expects all staff to respect the privacy of other individuals and protection of their personal data.   Your offer of employment is subject to you agreeing and signing up to our data privacy terms.

	Right to Search:
	To help the Company provide a safe environment and
to deter criminal, obscene, pornographic or
defamatory acts.  While on Company premises or
while using company equipment, the Company has
the right to carry out:
       -Searches of your person, personal
       belongings and vehicle without notice in
       accordance with Company guidelines.

	
			
	 
	-Drug, drink and substance checks without
notice, in line with the Misuse of Drugs
and Alcohol policy.
-B32Video surveillance.
-Monitoring of electronic communications
 on private or public lines, such as email.

Failure to comply will lead to disciplinary action and may lead to dismissal.

	Key Company Policies:
	 The following policies are available on the HR website:
Grievance Policy
Performance Capability Policy
Misconduct Policy
Sickness Absence Policy

	Medical Examinations:
	The Company may require a medical report to enable it
to make decisions regarding your employment, e.g. in cases of ill-health.  The Company may require you to undergo a medical examination by its medical advisor.   In addition, you will be expected to provide the Company’s health professional with information about your medical condition as it may reasonably require.  This is in order to ensure your state of health enables the Company to act within both yours and the Company’s best interest.
  You may be asked in specific circumstances to consent
  to the Company contacting your doctor and to his or
  her discussing your medical condition and history with
  us or a doctor nominated by the Company.

	Collective Agreement:
	There is no collective agreement which directly affects
your employment.

	Variations to Terms and Conditions:
	The Company reserves the right to change the terms
and conditions of your employment from time to time to
take into account Company policy, the needs of the
business and/or new legislation.  This may include
implementation of new policies and procedures as they
become necessary to meet the needs of the business.  

Reasonable notice will be given when this occurs.

	 
	 

	Entire Agreement

Governing Law

	This agreement and the offer letter constitutes the entire agreement between the parties and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter.  Each party acknowledges that in entering into this agreement it does not rely on and shall have no remedies in respect of any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this agreement.

This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales.

	
			
	Jurisdiction

	 
	Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this agreement or its subject matter or formation.

I confirm that I agree with the terms and conditions set out in this Contract of Employment and agree to be bound by the rules of the Company and Avon policies:

Name: Miguel Fernandez

  /s/ Miguel Fernandez
Signed: _______________________________

Date: __13/6/17_________________________

Signed on Behalf of the Company 

Name: _Susan Ormiston__________________

Signed: __/s/ Susan Ormiston_____________

Date: ___12/6/17_________________________

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