Retirement Savings Plan

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Distributions After You Leave the Company Your before-tax contributions, Company-matching, profitsharing and retirement contributions and all investment earnings are fully taxable as ordinary income when you receive them. Government regulations require that 20% of your distribution be withheld automatically, unless you directly roll over the amount to an IRA or other eligible retirement plan that accepts the direct rollover. The amount withheld will be applied toward your income taxes for the year in which you receive the distribution. In addition, if you leave the Company and receive a distribution before age 59½, your payment may be subject to the additional 10% penalty tax, as described below, as well as ordinary income taxes. Your aftertax contributions are not taxed or subject to income tax withholding. In some cases, you may be able to roll this portion of your account over to another plan. Penalty Tax on Distributions If you receive a payment from the Plan before you reach age 59½ and you do not roll it over, then, in addition to regular income tax, you may have to pay an extra tax equal to 10% of the taxable portion of the payment. Generally, the additional 10% tax does not apply to your payment if it is: • paid to your beneficiary (or to your estate) due to your death; • paid because you retire due to disability; • paid to you as equal (or almost equal) payments over your life or life expectancy (or your and your beneficiary’s lives or life expectancies); • paid to you after termination of employment after you reach age 55; • used to pay certain extraordinary, unreimbursed tax-deductible medical exenses that exceed 7½% of your adjusted gross income; or • paid to an alternate payee under a qualified domestic relations order. See IRS Form 5329 for more information on the additional 10% tax. Rollovers If you would like to continue deferring taxes on your distribution, you may elect to have any eligible rollover distribution from the Plan transferred directly from the Trustee of the Plan to the trustee of an IRA or another eligible retirement plan that accepts rollovers. You must provide your election to the Coty Benefits Center to direct your distribution to be rolled over directly into an IRA (or another eligible employer plan that accepts rollovers) to avoid the 20% withholding. An eligible retirement plan means an employer plan that is qualified under Code Section 401(a), a Code Section 403(a) annuity, a Code Section 403(b) tax-sheltered annuity plan and certain governmental 457 plans of deferred compensation, an individual retirement annuity account described in Code Section 408(a) or an individual retirement annuity described in Code Section 408(b) (other than an endowment contract). You may also roll over a distribution of your after-tax contributions to a traditional IRA or another eligible retirement plan (other than a governmental 457 plan), provided that the receiving IRA or 22
other eligible retirement plan accepts after-tax contributions and can separately account for them. [A traditional IRA does not include a Roth IRA, a Coverdell Savings Account or a SIMPLE IRA.] If you roll over your after-tax contributions to a traditional IRA, it is your responsibility to keep track of, and report to the IRS on the applicable forms, the amount of these after-tax contributions. This will enable the nontaxable amount of any future distributions from the traditional IRA to be determined. Once you roll over your after-tax contributions to a traditional IRA, those amounts cannot be rolled over to an employer plan. If you do not direct the Plan to roll over your distribution directly to an IRA or other qualified plan, your distribution may still be rolled over tax-free into an IRA or other qualified plan, provided you do so within 60 days of the distribution. However, in order to roll over your entire taxable distribution, you will need to make up the 20% withholding that will be initially deducted from your distribution by contributing money from another source, such as personal savings. In this case, you may be entitled to a refund from the IRS of the amount withheld when you file your federal income tax return. Certain plan payments cannot be rolled over. If you receive installment payments from the Plan over a period of ten years or more, or a distribution that is made to correct a failed nondiscrimination test or because the legal limits on certain contributions were exceeded, they cannot be rolled over. Unless you have reached age 59½, you cannot make a direct rollover of the portion of any hardship withdrawal that consists of before-tax contributions. The amount of a plan loan that becomes a taxable deemed distribution because of a default, cannot be rolled over. Finally, if you have reached age 70½ and are no longer employed by the Company, a portion of any distribution will be considered a “minimum required distribution” and cannot be rolled over. You will not pay taxes until you take the money out of the IRA or eligible retirement plan, at which time you’ll pay ordinary income tax (and, if applicable, the additional 10% penalty tax for premature distributions) on the money you receive. If you were born before January 1, 1936, you may be able to make a one-time election to figure the tax on the payment by using “10-year averaging” (using 1986 tax rates), provided you have five years of participation in the Plan and you receive the entire balance of your account under the Plan in one taxable year. Check with your tax advisor. State & Local Income Taxes Tax on Contributions – While before-tax contributions are generally treated by most states the same way as by the federal government, some states and cities may tax these amounts. Check with your tax advisor to see how the states or cities in which you work and live treat before-tax contributions. Your after-tax contributions come out of your compensation after having already been taxed by your state or local government. You do not pay state or local taxes on Company-matching and retirement contributions and any earnings as long as they remain in the Plan. 23
Page 1 and 2: Effective January 1, 2008 Retiremen
Page 3 and 4: COTY RETIREMENT SAVINGS PLAN SUMMAR
Page 5 and 6: II. ELIGIBILITY, ENROLLMENT AND PAR
Page 7 and 8: acknowledge the effect of the desig
Page 9 and 10: from other tax-qualified plans. How
Page 11 and 12: compensated employees. For 2008, hi
Page 13 and 14: For purposes of this example only,
Page 15 and 16: If you return to work for the Compa
Page 17 and 18: • matching contributions and earn
Page 19 and 20: Default If you terminate or retire
Page 21: of your benefits not awarded to you
Page 25 and 26: How to Obtain Additional Informatio
Page 27 and 28: • Reason for the Denial - the spe
Page 29 and 30: XVI. PLAN INFORMATION Answers to mo
Page 31: If it should happen that the Plan f

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