http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=3980959-24727-68729&SessionID=KBRPFWfPE63E1l7 http://google.brand.ed

http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=3980959-24727-68729&SessionID=KBRPFWfPE63E1l7 http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?Fe... "Avon Products Foundation, Inc. (the “Foundation”) has been a defendant in an arbitration proceeding brought by Pallotta TeamWorks (“Pallotta”) in September 2002, before Judicial Arbitration and Mediation Services, Inc. Pallotta asserted claims arising out of the Foundation’s decision to use another party to conduct breast cancer fundraising events. In July 2005 the arbitrator issued a Partial Final Award in this matter, awarding Pallotta $3.0 [million ] in net damages, after an offset for Foundation counterclaims. The arbitrator also instructed the parties to reach agreement on three outstanding issues: (i) pre-award interest; (ii) costs and attorney’s fees; and (iii) possible liabilities under Pallotta lease agreements. In October 2005 the Foundation entered into a settlement with Pallotta and paid Pallotta $7.5 [million] in exchange for a release of Pallotta’s claims. The Foundation is a registered 501(c)(3) charity and is a distinct entity from Avon Products, Inc., which has not been a party to these proceedings. The Company has not determined whether to make a contribution to the Foundation to cover all or part of the settlement.