Document:

Exhibit 10.4

Each of the Stock Plan Subcommittee of the Compensation
Committee and the Compensation Committee of the Board of Directors of The Estée
Lauder Companies Inc. reserves the right to change provisions of this Agreement
to comply with the American Jobs Creation Act of 2004.

Performance
Share Unit Award Agreement

Under

The
Estée Lauder Companies Inc.

Amended
and Restated Fiscal 2002 Share Incentive Plan (the “Plan”)

This PERFORMANCE SHARE UNIT AWARD AGREEMENT (“Agreement”)
provides for the granting of performance share unit awards by The Estée Lauder
Companies Inc., a Delaware corporation (the “Company”), to the participant, an
employee of the Company or one of its subsidiaries (the “Participant”),
representing a notional account equal to a corresponding number of shares of
the Company’s Class A Common Stock, par value $0.01 (the “Shares”), subject to
the terms below (the “Performance Share Units”).  The name of the “Participant,” the “Grant
Date,” the aggregate number of Shares representing the Target Award, and the
Plan Achievement (as defined below) goals are stated in the attached “Notice of
Grant,” and are incorporated by reference. 
The other terms of this Performance Share Unit Award are stated in this
Agreement and in the Plan. Terms not defined in this Agreement are defined in
the Plan, as amended.

1.     Award Grant. The Company
hereby awards to the Participant a target award of Performance Share Units in
respect of the number of Shares set forth in the Notice of Grant (the “Target
Award”), representing a Stock Unit and Performance-Based Award under the terms
of the Plan.

2.     Right to Payment of Performance Share Units.
It is understood that the percentage of the Target Award earned and paid will
be established by the Committee based on the plan achievement (the “Plan
Achievement”) during the period specified in the Notice of Grant (the “Award
Period”).  The Plan Achievement
comprises, and is measured separately with respect to, the following two
components:

(a)                            Net
Sales Cumulative Annual Growth Rate (which shall represent 50% of the Target
Award); and

(b)                           Earnings
Per Share Cumulative Annual Growth Rate (which shall represent 50% of the
Target Award).

For
purposes of this Performance Share Unit Award Agreement, “Net Sales” has the
meaning utilized by the Company in its consolidated financials in accordance
with generally accepted accounting principles as in effect on the first day of
the Award Period, 

excluding
the impact of foreign currency fluctuations and “Earnings Per Share” means “diluted
earnings per share” as utilized by the Company in its consolidated financials.
Actual payment of the Performance Share Units awarded will be determined for
each component in accordance with the table attached hereto as Schedule “A.”

3.     Payment of Awards. Payments
under this Agreement will be made in the number of Shares that is equivalent to
the number of Performance Share Units earned and payable to the Participant
pursuant to paragraph 2 above. Except as otherwise provided in paragraph 4
below, payments will be made as soon as practicable after the Award Period
ends, but in no event later than 2 and 1/2 months following the last day of the
calendar year in which the Award Period ends. The form of payout will be in
Shares.  In addition, each Performance
Share Unit that becomes earned and payable pursuant to paragraph 2 above
carries a Dividend Equivalent Right, payable in cash at the same time as the
payment of Shares in accordance with this paragraph 3 and paragraph 4.

Upon a Change in Control,
each Performance Share Unit will become payable to the Participant with the
total number of Shares to be paid equal to the Target Award.  Payments upon a Change in Control will be
made within two weeks following the Change in Control.  If the Shares cease to be outstanding
immediately after the Change in Control (e.g., due to a merger with and into
another entity), then the consideration to be received per Share will equal the
consideration paid to each stockholder per Share generally upon the Change in
Control.

4.     Termination of Employment.
If the Participant’s employment terminates during the Award Period, payouts
will be as follows:

(a)                      Death.  If the Participant dies, the Performance
Share Units will be paid as a pro rata Target Award for the number of full
months employed during the Award Period (i.e.,
the proration of the Target Award equals a fraction, the numerator of which is
the number of full calendar months of service completed during the Award Period
through the Participant’s death and the denominator of which is the number of
full calendar months in the Award Period). 
Payment will occur as soon as practicable following the Participant’s
death and in accordance with any applicable laws or Company procedures
regarding the payments.

(b)                     Retirement.  If the Participant formally retires under the
terms of The Estée Lauder Companies Retirement Growth Account Plan (or an
affiliate or a successor plan or program of similar purpose), the Performance
Share Unit Award will continue through the Award Period and the Participant
will be paid based on actual Plan Achievement, at the same time the awards are
paid to active employees.

(c)                      Disability.  If the Participant becomes totally and
permanently disabled (as determined under the Company’s long-term disability
program), the Performance Share Unit Award will continue through the Award
Period and 

 2
 

the Participant
will be paid a pro rata amount for the number of full months employed during
the Award Period (determined under the proration methodology in paragraph 4(a))
based on actual Plan Achievement. 
Payment will occur at the same time the awards are paid to active
employees.

(d)                     Termination
of Employment Without Cause.  If the
Participant’s employment is terminated at the instance of the Company or
relevant subsidiary without Cause (as defined below) on or prior to the end of
the first year of the Award Period, the Performance Share Unit Award will be
forfeited.  If such termination occurs
after the end of the first year of the Award Period, the Performance Share Unit
Award will continue through the Award Period and the Participant will be paid a
pro rata amount for the number of full months employed during the Award Period
(determined under the proration methodology in paragraph 4(a)) based on actual
Plan Achievement.  Payment will occur at
the same time the awards are paid to active employees.

(e)                      Termination
of Employment By Employee.  If the
Participant terminates his or her employment (e.g.,
by voluntary resigning) other than by retirement, which is subject to paragraph
4(b) above, the Performance Share Unit Award will be forfeited.

(f)                      Termination
of Employment With Cause.  If the
Participant is terminated for Cause, the Performance Share Unit Award will be
forfeited.  For this purpose, “Cause” is
defined in the employment agreement in effect between the Participant and the
Company or any subsidiary, including any employment agreement entered into
after the Grant Date.  In the absence of
an employment agreement, “Cause” means any breach by the Participant of any of
his or her material obligations under any Company policy or procedure,
including, without limitation, the Code of Conduct.

(g)                     Post
Employment Conduct.  Payout of any
Performance Share Unit Award after termination of employment is subject to
satisfaction of the conditions precedent that the Participant neither (i)
competes with, takes employment with, or renders services to a competitor of
the Company, its subsidiaries, or affiliates without the Company’s written
consent, nor (ii) conducts himself or herself in a manner adversely affecting
the Company.

If the Participant’s employment terminates after the expiration of the
Award Period but prior to payout, payout will be subject to the above.

5.     No Rights of Stock Ownership.
This grant of Performance Share Units does not entitle the Participant to any
interest in or to any voting or other rights normally attributable to Share
ownership other than the Dividend Equivalent Rights granted under paragraph 3
above.

 3
 

6.     Withholding. Regardless of
any action the Company or the Participant’s employer (the “Employer”) takes
with respect to any or all income tax, social security, payroll tax, or other
tax-related withholding (“Tax-Related Items”), Participant acknowledges that
the ultimate liability for all Tax-Related Items legally due by Participant is
and remains his or her responsibility. 
Furthermore, Participant acknowledges that the Company and/or the
Employer (i) make no representations or undertakings regarding the treatment of
any Tax-Related Items in connection with any aspect of the Performance Share
Units, including the grant of the Performance Share Units, the vesting of the
Performance Share Units, the delivery of Shares, the subsequent sale of Shares
acquired under the Plan and the receipt of any dividends; and (ii) do not
commit to structure the terms of the grant of the Performance Share Units or
any aspect of Participant’s participation in the Plan to reduce or eliminate
his or her liability for Tax-Related Items.

Prior
to the relevant taxable event, Participant shall pay or make adequate
arrangements satisfactory to the Company and/or the Employer to satisfy all
withholding obligations of the Company and/or the Employer.  In this regard, Participant authorizes the
Company and/or the Employer to withhold all applicable Tax-Related Items
legally payable by Participant from his or her wages or other cash compensation
paid by the Company and/or the Employer or from proceeds of the sale of the
Shares acquired under the Plan.  Alternatively,
or in addition, the Company may (i) sell or arrange for the sale of Shares that
Participant acquires under the Plan to meet the withholding obligation for the
Tax-Related Items, and/or (ii) withhold in Shares, provided that the Company
only withholds the amount of Shares necessary to satisfy the minimum
withholding amount.  If the Company
satisfies the Tax-Related Item withholding obligation by withholding a number
of Shares as described herein, Participant will be deemed to have been issued
the full number of Shares due to Participant at vesting, notwithstanding that a
number of the Shares is held back solely for purposes of such Tax-Related
Items.

Finally, Participant shall pay to the Company or the
Employer any amount of Tax-Related Items that the Company or the Employer may
be required to withhold as a result of his or her participation in the Plan
that cannot be satisfied by the means previously described.  The Company may refuse to issue Shares under
the Plan and refuse to deliver the Shares if Participant fails to comply with
his or her obligations in connection with the Tax-Related Items as described in
this paragraph.

7.     Nonassignability. This
award may not be assigned, pledged, or transferred except, if the Participant
dies, to a designated beneficiary or by will or by the laws of descent and
distribution. The foregoing restrictions do not apply to transfers under a
court order, including, but not limited to, any domestic relations order.

8.     Effect Upon
Employment. The Participant’s right to continue to serve the
Company or any of its subsidiaries as an officer, employee, or otherwise, is
not enlarged or otherwise affected by an award under this Agreement.  Nothing in this Agreement or
the Plan gives the Participant any right to continue in the employ of the
Company or any of its subsidiaries or to interfere in any way with any right
the Company or any subsidiary 

 4
 

may have to terminate
his or her employment at any time. 
Payment of Shares is not secured by a trust, insurance contract or other
funding medium, and the Participant does not have any interest in any fund or
specific asset of the Company by reason of this Award or the account
established on his or her behalf.  A
Performance Share Unit confers no rights as a shareholder of the Company until
Shares are actually delivered to the Participant.

9.     Notices.  Any notice required or permitted under this
Performance Share Unit Award Agreement is deemed to have been duly given if
delivered, telecopied, mailed (certified or registered mail, return receipt
requested), or sent by internationally-recognized courier guaranteeing next day
delivery (a) to the Participant at the address on file in the Company’s (or
relevant subsidiary’s) personnel records or (b) to the Company, attention Stock
Plan Administration at its principal executive offices, which are currently
located at 767 Fifth Avenue, New York, NY 10153.

10.  Disclosure
and Use of Information.

a.     By
signing and returning the attached Notice of Grant, and as a condition of the
grant of the Performance Share Units, the Participant hereby expressly and
unambiguously consents to the collection, use, and transfer of personal data as
described in this paragraph by and among, as necessary and applicable, the
Employer, the Company and its subsidiaries and by any agent of the Company or
its subsidiaries for the exclusive purpose of implementing, administering and
managing Participant’s participation in the Plan.

b.     The
Participant understands that the Employer, the Company and/or its other  subsidiaries holds, by means of an automated
data file or otherwise, certain personal information about the Participant,
including, but not limited to, name, home address and telephone number, date of
birth, social insurance number, salary, nationality, job title, any shares or
directorships held in the Company, details of all Performance Share Units or
other entitlement to shares awarded, canceled, exercised, vested, unvested, or
outstanding in the Participant’s favor, for purposes of managing and
administering the Plan (“Data”).

c.     The
Participant also understands that part or all of his or her Data may be held by
the Company or its subsidiaries in connection with managing and administering
previous award or incentive plans or for other purposes, pursuant to a
prior  transfer made with the Participant’s
consent in respect of any previous grant of performance share units or other
awards.

d.     The
Participant further understands that the Employer may transfer Data to the
Company or its subsidiaries as necessary to implement, administer, and manage
his or her participation in the Plan. 
The Company and its subsidiaries may transfer data among themselves, and
each, in turn, may further transfer Data to any third parties assisting the
Company in the implementation, administration, and management of the Plan (“Data
Recipients”).

 5
 

e.     The
Participant understands that the Company, its subsidiaries, and the Data
Recipients are or may be located in his or her country of residence or
elsewhere. The Participant authorizes the Employer, the Company, its
subsidiaries, and the Data Recipients to receive, possess, use, retain, and
transfer Data in electronic or other form to implement, administer, and manage
his or her participation in the Plan, including any transfer of Data that the
Administrator deems appropriate for the administration of the Plan and any
transfer of Shares on his or her behalf to a broker or third party with whom
the Shares may be deposited.

f.      The
Participant understands that he or she may request a list with the names and
addresses of any potential recipients of the Data by contacting his or her
local human resources representative.

g.     The
Participant understands that Data will be held as long as is reasonably
necessary to implement, administer and manage his or her participation in the
Plan and he or she may oppose the processing and transfer of his or her Data
and may, at any time, review the Data, request that any necessary amendments be
made to it, or withdraw his or her consent by notifying the Company in writing.
The Participant further understands that withdrawing consent may affect his or
her ability to participate in the Plan.

11.  Discretionary
Nature and Acceptance of Award.  By accepting this Award, the

Participant agrees to be bound by the terms of this
Agreement and acknowledges that:

a.     The Plan is
established voluntarily by the Company, it is discretionary in nature, and it
may be modified, amended, suspended or terminated by the Company at any time,
unless otherwise provided in the Plan and this Agreement;

b.     The award
of Performance Share Units is voluntary and occasional, and does not create any
contractual or other right to receive future awards of Performance Share Units,
or benefits in lieu of Performance Share Units, even if Performance Share Units
have been awarded repeatedly in the past.

c.     All
decisions with respect to future awards, if any, will be at the sole discretion
of the Company;

d.     Participant’s
participation in the Plan is voluntary;

e.     Participant’s
participation in the Plan shall not create a right to further employment with
the Employer and shall not interfere with the ability of the Company or the
Employer to terminate Participant’s employment at any time;

f.      Performance
Share Units are an extraordinary item that does not constitute compensation of
any kind for services of any kind rendered to the Company or any subsidiary,
and which is outside the scope of Participant’s employment or service contract,
if any;

 6
 

g.     The
Performance Share Units are not part of normal or expected compensation or
salary for any purposes, including, but not limited to, calculating any
severance, resignation, termination, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement or welfare benefits or
similar payments and in no event should be considered as compensation for, or
relating in any way to, past services for the Company or any subsidiary;

h.     In the
event the Participant is not an employee of the Company, the Performance Share
Units and Participant’s participation in the Plan will not be interpreted to
form an employment or service contract or relationship with the Company; and
furthermore, the Performance Share Units and Participant’s participation in the
Plan will not be interpreted to form an employment or service contract with any
subsidiary of the Company;

i.      The
future value of the underlying Shares is unknown and cannot be predicted with
certainty;

j.      In
consideration of the award of the Performance Share Units, no claim or
entitlement to compensation or damages shall arise from termination of the
Performance Share Units or diminution in value of the Performance Share Units,
or Shares acquired upon vesting of the Performance Share Units, resulting from
termination of Participant’s employment by the Company or any subsidiary (for
any reason whatsoever and whether or not in breach of local labor laws) and in
consideration of the award of the Performance Share Units, Participant
irrevocably releases the Company and any subsidiary from any such claim that
may arise; if, notwithstanding the foregoing, any such claim is found by a
court of competent jurisdiction to have arisen, then, by signing the Notice of
Grant, Participant shall be deemed irrevocably to have waived his or her right
to pursue or seek remedy for any such claim or entitlement;

k.     In the
event of termination of Participant’s employment (whether or not in breach of
local labor laws), Participant’s right to receive Performance Share Units under
the Plan and to vest in such Performance Share Units, if any, will terminate
effective as of the date that Participant is no longer actively employed and
will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden
leave” or similar period pursuant to local law); the Administrator shall have
the exclusive discretion to determine when Participant is no longer actively
employed for purposes of this Agreement;

l.      The
Company is not providing any tax, legal or financial advice, nor is the Company
making any recommendations regarding Participant’s participation in the Plan or
Participant’s acquisition or sale of the underlying Shares; and

m.    Participant
is hereby advised to consult with Participant’s own personal tax, legal and
financial advisors regarding Participant’s participation in the Plan before taking
any action related to the Plan.

 7
 

12.  Failure to Enforce Not a Waiver.  The Company’s failure to enforce at any time
any provision of this Agreement does not constitute a waiver of that provision
or of any other provision of this Agreement.

13.  Governing Law.  The Performance Share Unit Award Agreement is
governed by and is to be construed according to the laws of the State of New
York that apply to agreements made and performed in that state, without regard
to its choice of law provisions.  For
purposes of litigating any dispute that arises under the Performance Share
Units or this Agreement, the parties hereby submit to and consent to the
jurisdiction of the State of New York, and agree that such litigation will be
conducted in the courts of New York County, New York, or the federal courts for
the United States for the Southern District of New York, and no other courts,
where the Performance Share Units are made and/or to be performed.

14.  Partial Invalidity.  The invalidity or illegality of any provision
of the Agreement will be deemed not to affect the validity of any other
provision.

15.  Section
409A Compliance.  This
Agreement is intended to comply with section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), and any regulations, rulings, or guidance
provided thereunder.  The Company
reserves the unilateral right to amend this Agreement upon written notice to
the Participant to prevent taxation under Code section 409A.

16.  Electronic
Delivery.  The Company
may, in its sole discretion, decide to deliver any documents related to
Performance Share Units awarded under the Plan or future Performance Share
Units that may be awarded under the Plan by electronic means or request
Participant’s consent to participate in the Plan by electronic means.  Participant hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through
any on-line or electronic system established and maintained by the Company or
another third party designated by the Company.

	
  

  	
  The Estée Lauder
  Companies Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Amy DiGeso

  
	
   

  	
  Executive Vice
  President,

  
	
   

  	
  Global Human
  Resources

  

 8
 

Schedule
“A”

For Net Sales Cumulative Annual Growth Rate:

	
   

  	
   

  	
  Component Plan Achievement

  	
   

  	
  Component Payout (Percentage of Target
  Award)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  High

  	
   

  	
  (*)

  	
   

  	
  (*)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (*)

  	
   

  	
  (*)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Low

  	
   

  	
  (*)

  	
   

  	
  (*)

  

 

For Net Earnings Per Share Cumulative Annual Growth
Rate:

	
   

  	
   

  	
  Component
  Plan Achievement

  	
   

  	
  Component
  Payout (Percentage of Target Award)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  High

  	
   

  	
  (*)

  	
   

  	
  (*)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (*)

  	
   

  	
  (*)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Low

  	
   

  	
  (*)

  	
   

  	
  (*)

  

 

Payout amount for levels
of Plan Achievement between the high and low achievement shall be interpolated
on a straight line basis (rounded up to the nearest integer).  In no event shall the Participant receive a
payout in excess of 150% of the Target Award for any component.  No payout shall be made in the event of
component Plan Achievement less than low achievement.  Notwithstanding anything to the contrary
stated above, the Committee may reduce the payment based on other factors at
the discretion of the Committee unless a Change of Control has occurred.

In measuring Plan
Achievement, financial performance measures (e.g., “Earnings Per Share” and “Net
Sales”) will be calculated without regard to the following:

·                  Changes in
accounting principles (i.e., cumulative effect of GAAP changes)

·                  Extraordinary
items as defined in accordance with US GAAP or which are the result of a change
in the law or the Company’s response thereto

·                  Income/loss from
discontinued operations and income/loss on sale of discontinued operations

 9
 

·                  Non-recurring
operating income/expenses (separately stated and disclosed in the financial
statements — e.g., restructuring charges, legal settlement charges, goodwill
write-off)

·                  Impairment of intangibles

In calculating net sales
during the Award Period, net sales in currencies other than U.S. dollars shall
be translated into U.S. dollars at the Company’s budget exchange rate at the
beginning of the Award Period.

Earnings Per Share will
be calculated based on the weighted average number of Shares outstanding as of
the measurement date and will be adjusted to eliminate the effect of material
changes in the number or type of outstanding Shares due to events such as:

·                  Stock splits

·                  Stock dividends

·                  Recapitalizations

·                  Acquisitions involving stock of the
Company

No adjustment will be
made for the impact of stock repurchases under any plans approved by the Board.

 10

Notice of Grant

Under

The Estée Lauder Companies Inc.

Amended and Restated Fiscal 2002
Share Incentive Plan (The “Plan”)

This is to confirm that
you were awarded a grant of Performance Share Units at the most recent meeting
of the Stock Plan Subcommittee of the Compensation Committee of the Board of
Directors representing the right to receive shares of Class A Common Stock of
The Estée Lauder Companies Inc. (the “Shares”), subject to the terms of the
Plan and the Performance Share Unit Award Agreement.  This award was made in recognition of the
significant contributions you have made as a key employee of the Company, and
to motivate you to achieve future successes by aligning your interests more
closely with those of our stockholders. 
This Performance Share Unit Award is granted under and governed by the
terms and conditions of the Plan and the Performance Share Unit Award Agreement
(the “Agreement”) made part hereof.  The
Agreement and Summary Plan Description are being sent to you in a separate
email.  Please read these documents and keep them for future
reference.  The specific terms of your
award are as follows:

Participant:    (LAST NAME,
FIRST NAME)

SSN or Tax ID:   (*)

Employee
Idtenification Number:  (*)

Grant Date:            (*)

Award Period:       (*)

Type of Award:  Stock Unit and Performance-Based Award
(referred to herein as a “Performance Share Unit”)

Target Award:                       shares
of Class A Common Stock.  See Schedule “A”
to the Agreement for actual payouts depending upon level of performance.

Plan Achievement goal at
100% for Award Period:

Net Sales Cumulative
Annual Growth Rate

(*)

Earnings
Per Share Cumulative Annual Growth Rate

(*)

Questions regarding the
award can be directed to  (*).

If you wish to accept
this grant, please sign this Notice of
Grant and return immediately to:

Compensation Department

767 Fifth Avenue, 43rd
Floor

New York, New York 10153

Attention:   (*)

The undersigned hereby
accepts, and agrees to, all terms and provisions of the Agreement, including
those contained in this Notice of Grant.

	
  By

  	
   

  	
  DateExhibit 10.5

Each
of the Stock Plan Subcommittee of the Compensation Committee and the
Compensation Committee of the Board of Directors of The Estée Lauder Companies
Inc. reserves the right to change provisions of this Agreement to comply with
the American Jobs Creation Act of 2004.

Restricted Stock Unit Agreement Under

The Estée Lauder Companies Inc.

Amended and
Restated Fiscal 2002 Share Incentive Plan (the “Plan”)

This RESTRICTED STOCK UNIT AGREEMENT (“Agreement”)
provides for the granting by The Estée Lauder Companies Inc., a Delaware
corporation (the “Company”), to the participant, an employee of the
Company or one of its subsidiaries (the “Participant”), of Stock Units
under the Plan representing a notional account equal to a corresponding number
of shares of the Company’s Class A Common Stock, par value $0.01 (the “Shares”),
subject to the terms below (the “Restricted Stock Units”).  The name of the “Participant,” the “Grant
Date,” the “Number of Restricted Stock Units,” the “Vesting Commencement Date,”
the “Vesting Schedule,” and the “Vesting Period” are stated in the attached “Notice
of Grant” and are incorporated by reference. 
The other terms of this award are stated in this Agreement and in the
Plan. Terms not defined in this Agreement are defined in the Plan, as amended.

1.     Award Grant. The Company
hereby awards to the Participant an award of Restricted Stock Units in respect
of the number of Shares set forth in the Notice of Grant.

2.     Vesting.  The
Restricted Stock Units granted to the Participant will vest and become payable
in accordance with the Vesting Schedule in the Notice of Grant.  This schedule indicates the vesting date upon
which the Participant will be entitled to receive Shares.  Except as otherwise provided in this
Agreement, any Restricted Stock Units that are unvested when the Participant
terminates employment with the Company will be forfeited.

3.     Payment of Awards.  Each Restricted Stock Unit represents the
right to receive one Share when the Restricted Stock Unit vests.

In addition, each Restricted Stock Unit carries a
Dividend Equivalent Right, payable in cash at the same time as payment of
Restricted Stock Units in Shares in accordance with this paragraph 3 and
paragraph 4.  Dividend Equivalent Rights
are deemed part of the related Restricted Stock Units under this Agreement.

Upon a Change in Control, each Restricted Stock Unit
will vest and become payable to the Participant.  Payments upon a Change in Control will be
made within two weeks following the Change in Control.  If the Shares cease to be outstanding
immediately after the Change in Control (e.g., due to a merger with and into
another entity), then the consideration to be received per Share will equal the
consideration paid to each stockholder per Share generally upon the Change in
Control.

4.     Termination of Employment.
If the Participant’s employment terminates during the Vesting Period, all
Restricted Stock Units will be forfeited except as follows:

(a)                      Death.  If the Participant dies, the Restricted Stock
Units will vest pro rata for the number of full months the Participant was
employed during the Vesting Period (i.e., the proration equals a fraction, the
numerator of which is the number of full calendar months of service completed
during the Vesting Period through the Participant’s death and the denominator
of which is the number of full calendar months in the Vesting Period).  Payment of the Restricted Stock Units will
occur as soon as practicable following the Participant’s death and in
accordance with any applicable laws or Company procedures regarding the
payments.

(b)                     Retirement.  If the Participant formally retires under the
terms of The Estée Lauder Companies Retirement Growth Account Plan (or an
affiliate or a successor plan or program of similar purpose), the unvested
Restricted Stock Units will continue to vest and be paid in accordance with the
Vesting Schedule.

(c)                      Disability.  If the Participant becomes totally and
permanently disabled (as determined under the Company’s long-term disability
program), the Restricted Stock Units will vest pro rata for full months
employed during the Vesting Period (determined under the proration methodology
in paragraph 4(a)).  The Restricted Stock
Units will be paid in accordance with the Vesting Schedule.

(d)                     Termination
of Employment Without Cause.  If the
Participant’s employment is terminated at the instance of the Company or
relevant subsidiary without Cause (as defined below), any unvested Restricted
Stock Units will vest pro rata for full months employed during the Vesting
Period (determined under the proration methodology in paragraph 4(a)) on the
next vesting date during the Vesting Period. Restricted Stock Units will be
paid in accordance with the Vesting Schedule.

(e)                      Termination
of Employment By Employee.  If the
Participant voluntarily terminates his or her employment (e.g., by voluntary resigning) other than by
retirement, which is subject to paragraph 4(b) above, all Restricted Stock
Units that are not vested as of the effective date of resignation will be
forfeited.

(f)                      Termination
of Employment With Cause.  If the
Participant is terminated for Cause, all Restricted Stock Units that are not
vested as of the effective date of termination will be forfeited.  For this purpose, “Cause” is defined in the
employment agreement in effect between the Participant and the Company or any
subsidiary, including an employment agreement entered into after the Grant
Date. In the absence of an employment agreement, “Cause” means any breach by
the Participant of any of his or her material obligations under any Company
policy or procedure, including, without limitation, the Code of Corporate
Conduct.

(g)                     Post
Employment Conduct.  Payment in
respect of any Restricted Stock Unit after termination of employment is subject
to satisfaction of the conditions precedent that the Participant neither (i)
competes with, takes employment with, or renders services to a competitor of
the Company, its subsidiaries, or affiliates without the Company’s written
consent, nor (ii) conducts himself or herself in a manner adversely affecting
the Company.

 2
 

5.     No Rights of Stock Ownership.
This grant of Restricted Stock Units does not entitle the Participant to any
interest in or to any voting or other rights normally attributable to Share
ownership other than the Dividend Equivalent Rights granted under paragraph 3
above.

6.     Withholding. Regardless of
any action the Company or the Participant’s employer (the “Employer”) takes
with respect to any or all income tax, social security, payroll tax, or other
tax-related withholding (“Tax-Related Items”), Participant acknowledges that
the ultimate liability for all Tax-Related Items legally due by Participant is
and remains his or her responsibility. 
Furthermore, Participant acknowledges that the Company and/or the Employer
(i) make no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the Restricted Stock Units,
including the grant of the Restricted Stock Units, the vesting of the
Restricted Stock Units, the delivery of Shares, the subsequent sale of Shares
acquired under the Plan and the receipt of any dividends; and (ii) do not
commit to structure the terms of the grant of the Restricted Stock Units or any
aspect of Participant’s participation in the Plan to reduce or eliminate his or
her liability for Tax-Related Items.

Prior
to the relevant taxable event, Participant shall pay or make adequate
arrangements satisfactory to the Company and/or the Employer to satisfy all
withholding obligations of the Company and/or the Employer.  In this regard, Participant authorizes the
Company and/or the Employer to withhold all applicable Tax-Related Items
legally payable by Participant from his or her wages or other cash compensation
paid by the Company and/or the Employer or from proceeds of the sale of the
Shares acquired under the Plan. 
Alternatively, or in addition, the Company may (i) sell or arrange for
the sale of Shares that Participant acquires under the Plan to meet the withholding
obligation for the Tax-Related Items, and/or (ii) withhold in Shares, provided
that the Company only withholds the amount of Shares necessary to satisfy the
minimum withholding amount.  If the
Company satisfies the Tax-Related Item withholding obligation by withholding a
number of Shares as described herein, Participant will be deemed to have been
issued the full number of Shares due to Participant at vesting, notwithstanding
that a number of the Shares is held back solely for purposes of such
Tax-Related Items.

Finally, Participant shall pay to the Company or the
Employer any amount of Tax-Related Items that the Company or the Employer may
be required to withhold as a result of his or her participation in the Plan
that cannot be satisfied by the means previously described.  The Company may refuse to issue Shares under
the Plan and refuse to deliver the Shares if Participant fails to comply with
his or her obligations in connection with the Tax-Related Items as described in
this paragraph.

7.     Nonassignability. This
award may not be assigned, pledged, or transferred, except, if the Participant
dies, to a designated beneficiary or by will or by the laws of descent and
distribution. The foregoing restrictions do not apply to transfers under a
court order, including, but not limited to, any domestic relations order.

8.     Effect Upon Employment. The
Participant’s right to continue to serve the Company or any of its subsidiaries
as an officer, employee, or otherwise, is not enlarged or otherwise affected by
an award under this Agreement.  Nothing
in this Agreement or the Plan gives the Participant any right to continue in
the employ of the Company or any of its subsidiaries or to interfere in any way
with any right the Company or any subsidiary may have to terminate his or her
employment at any time.  Payment of

Shares is not secured by a trust, insurance contract
or other funding medium, and the Participant does not have any interest in any
fund or specific asset of the Company by reason of this Award or the 

 3
 

account established on his or her behalf.  A Restricted Stock Unit award confers no
rights as a shareholder of the Company until Shares are actually delivered to
the Participant.

9.     Notices. Any notice
required or permitted under this Agreement is deemed to have been duly given if
delivered, telecopied, or mailed (certified or registered mail, return receipt
requested), or sent by internationally-recognized courier guaranteeing next day
delivery (a) to the Participant at the address on file in the Company’s (or
relevant subsidiary’s) personnel records, or (b) to the Company, attention
Stock Plan Administration at its principal executive offices, which are
currently located at 767 Fifth Avenue, New York, NY 10153.

10.  Disclosure and Use
of Information.

a.     By
signing and returning the attached Notice of Grant, and as a condition of the
grant of the Restricted Stock Units, the Participant hereby expressly and
unambiguously consents to the collection, use, and transfer of personal data as
described in this paragraph by and among, as necessary and applicable, the
Employer, the Company and its subsidiaries and by any agent of the Company or
its subsidiaries for the exclusive purpose of implementing, administering and
managing Participant’s participation in the Plan.

b.     The
Participant understands that the Employer, the Company and/or its other  subsidiaries holds, by means of an automated
data file or otherwise, certain personal information about the Participant,
including, but not limited to, name, home address and telephone number, date of
birth, social insurance number, salary, nationality, job title, any shares or
directorships held in the Company, details of all Restricted Stock Units or
other entitlement to shares awarded, canceled, exercised, vested, unvested, or
outstanding in the Participant’s favor, for purposes of managing and
administering the Plan (“Data”).

c.     The
Participant also understands that part or all of his or her Data may be held by
the Company or its subsidiaries in connection with managing and administering
previous award or incentive plans or for other purposes, pursuant to a
prior  transfer made with the Participant’s
consent in respect of any previous grant of restricted stock units or other
awards.

d.     The
Participant further understands that the Employer may transfer Data to the
Company or its subsidiaries as necessary to implement, administer, and manage
his or her participation in the Plan. 
The Company and its subsidiaries may transfer data among themselves, and
each, in turn, may further transfer Data to any third parties assisting the
Company in the implementation, administration, and management of the Plan (“Data
Recipients”).

e.     The
Participant understands that the Company, its subsidiaries, and the Data
Recipients are or may be located in his or her country of residence or
elsewhere. The Participant authorizes the Employer, the Company, its
subsidiaries, and the Data Recipients to receive, possess, use, retain, and
transfer Data in electronic or other form to implement, administer, and manage
his or her participation in the Plan, including any transfer of Data that the
Administrator deems appropriate for the administration of the Plan and any
transfer of Shares on his or her behalf to a broker or third party with whom
the Shares may be deposited.

f.      The
Participant understands that he or she may request a list with the names and
addresses of any potential recipients of the Data by contacting his or her
local human resources representative.

 4
 

g.     The
Participant understands that Data will be held as long as is reasonably necessary
to implement, administer and manage his or her participation in the Plan and he
or she may oppose the processing and transfer of his or her Data and may, at
any time, review the Data, request that any necessary amendments be made to it,
or withdraw his or her consent by notifying the Company in writing. The
Participant further understands that withdrawing consent may affect his or her
ability to participate in the Plan.

11.  Discretionary Nature and
Acceptance of Award.  By accepting
this Award, the Participant agrees to be bound by the terms of this Agreement
and acknowledges that:

a.     The Plan
is established voluntarily by the Company, it is discretionary in nature, and
it may be modified, amended, suspended or terminated by the Company at any
time, unless otherwise provided in the Plan and this Agreement;

b.     The award
of Restricted Stock Units is voluntary and occasional, and does not create any
contractual or other right to receive future awards of Restricted Stock Units,
or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units
have been awarded repeatedly in the past.

c.     All
decisions with respect to future awards, if any, will be at the sole discretion
of the Company;

d.     Participant’s
participation in the Plan is voluntary;

e.     Participant’s
participation in the Plan shall not create a right to further employment with
the Employer and shall not interfere with the ability of the Company or the
Employer to terminate Participant’s employment at any time;

f.      Restricted
Stock Units are an extraordinary item that does not constitute compensation of
any kind for services of any kind rendered to the Company or any subsidiary,
and which is outside the scope of Participant’s employment or service contract,
if any;

g.     The
Restricted Stock Units are not part of normal or expected compensation or
salary for any purposes, including, but not limited to, calculating any
severance, resignation, termination, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement or welfare benefits or
similar payments and in no event should be considered as compensation for, or
relating in any way to, past services for the Company or any subsidiary;

h.     In the
event the Participant is not an employee of the Company, the Restricted Stock Units
and Participant’s participation in the Plan will not be interpreted to form an
employment or service contract or relationship with the Company; and
furthermore, the Restricted Stock Units and Participant’s participation in the
Plan will not be interpreted to form an employment or service contract with any
subsidiary of the Company;

i.      The
future value of the underlying Shares is unknown and cannot be predicted with
certainty;

j.      In
consideration of the award of the Restricted Stock Units, no claim or entitlement
to compensation or damages shall arise from termination of the Restricted Stock
Units or diminution in 

 5
 

value of the Restricted Stock Units, or Shares
acquired upon vesting of the Restricted Stock Units, resulting from termination
of Participant’s employment by the Company or any subsidiary (for any reason
whatsoever and whether or not in breach of local labor laws) and in
consideration of the award of the Restricted Stock Units, Participant
irrevocably releases the Company and any subsidiary from any such claim that
may arise; if, notwithstanding the foregoing, any such claim is found by a
court of competent jurisdiction to have arisen, then, by signing the Notice of
Grant, Participant shall be deemed irrevocably to have waived his or her right to
pursue or seek remedy for any such claim or entitlement;

k.     In the
event of termination of Participant’s employment (whether or not in breach of
local labor laws), Participant’s right to receive Restricted Stock Units under
the Plan and to vest in such Restricted Stock Units, if any, will terminate
effective as of the date that Participant is no longer actively employed and
will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden
leave” or similar period pursuant to local law); the Administrator shall have
the exclusive discretion to determine when Participant is no longer actively
employed for purposes of this Agreement;

l.      The
Company is not providing any tax, legal or financial advice, nor is the Company
making any recommendations regarding Participant’s participation in the Plan or
Participant’s acquisition or sale of the underlying Shares; and

m.    Participant
is hereby advised to consult with Participant’s own personal tax, legal and
financial advisors regarding Participant’s participation in the Plan before
taking any action related to the Plan

12.  Failure to Enforce Not a Waiver.  The Company’s failure to enforce at any time
any provision of this Agreement does not constitute a waiver of that provision
or of any other provision of this Agreement.

13.  Governing Law.  This Agreement is governed by and is to be
construed according to the laws of the State of New York that apply to
agreements made and performed in that state, without regard to its choice of
law provisions.  For purposes of
litigating any dispute that arises under the Restricted Stock Units or this
Agreement, the parties hereby submit to and consent to the jurisdiction of the
State of New York, and agree that such litigation will be conducted in the
courts of New York County, New York, or the federal courts for the United
States for the Southern District of New York, and no other courts, where the
Restricted Stock Units are made and/or to be performed.

14.  Partial Invalidity.  The invalidity or illegality of any provision
of this Agreement will be deemed not to affect the validity of any other
provision.

15.  Section  409A Compliance. This Agreement is intended
to comply with section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), and any regulations, rulings, or guidance provided thereunder.
The Company reserves the unilateral right to amend this Agreement upon written
notice to the Participant to prevent taxation under Code section 409A.

16.  Electronic
Delivery.  The Company
may, in its sole discretion, decide to deliver any documents related to
Restricted Stock Units awarded under the Plan or future Restricted Stock Units
that may be awarded under the Plan by electronic means or request Participant’s
consent to participate in the Plan by electronic means.  Participant hereby consents to receive such
documents by electronic delivery and 

 6
 

agrees
to participate in the Plan through any on-line or electronic system established
and maintained by the Company or another third party designated by the Company.

	
   

  	
  The Estée Lauder Companies
  Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Executive Vice
  President,

  
	
   

  	
  Global Human
  Resources

  

 

 7

Notice of Grant Under

The Estée Lauder Companies Inc.

Amended and Restated Fiscal 2002
Share Incentive Plan (The “Plan”)

This is to confirm that
you were awarded a grant of Restricted Stock Units at the most recent meeting
of the Stock Plan Subcommittee of the Compensation Committee of the Board of
Directors representing the right upon vesting of such units to receive shares
of Class A Common Stock of The Estée Lauder Companies Inc. (the “Shares”),
subject to the terms of the Plan and the Restricted Stock Unit Agreement.  This award was made in recognition of the
significant contributions you have made as a key employee of the Company, and
to motivate you to achieve future successes by aligning your interests more
closely with those of our stockholders. 
This Restricted Stock Unit award is granted under and governed by the
terms and conditions of the Plan and the Restricted Stock Unit Agreement (the “Agreement”)
made part hereof.  The Agreement and
Summary Plan Description are being sent to you in a separate email.  Please read these documents and keep them for
future reference.  The specific terms of
your award are as follows:

Participant:    (LAST NAME, FIRST NAME)

SSN or Global
Identification Number:   (*)

Employee Identification Number: (*)

Number of Restricted
Stock Units:  (*)

Grant Date:                                            (*)

Vesting
Commencement Date:           (*)

	
  Vesting Schedule:

  	
   

  	
  Subject to Participant’s continuous employment, this

  
	
   

  	
   

  	
  Restricted Stock Unit grant shall vest as to the
  number of Shares set forth below:

  

 

	
  Shares

  	
   

  	
  Vesting Date

  
	
   

  	
   

  	
   

  
	
  (*)

  	
   

  	
  (*)

  
	
  (*)

  	
   

  	
  (*)

  
	
  (*)

  	
   

  	
  (*)

  

 

Vesting Period:    The
Vesting Commencement Date through and including the applicable date set forth
in the Vesting Schedule

Questions regarding the
award can be directed to (*)

 If you wish to accept this grant, please sign this Notice of Grant and return
immediately to:

Compensation Department

767 Fifth Avenue, 43rd
Floor

New York, New York 10153

Attention:
(*)

The undersigned hereby
accepts, and agrees to, all terms and provisions of the Agreement, including
those contained in this Notice of Grant.

	
  By

  	
   

  	
   

  	
  Date

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