Document:

Exhibit
10.10d

 

May 18, 2004

 

 

Mr. Fred H. Langhammer

[address]

[address]

 

Dear Fred:

 

This letter sets out the arrangements for your
continuing association with The Estee Lauder Companies Inc. (the “Company”) in
a senior consultative capacity after your retirement on June 30, 2004.

 

1.                     As of
June 30, 2004, you will have resigned from your position as Chief
Executive Officer and Member of the Board of Directors of the Company, and from
all positions of organizational authority that you presently hold in the
Company’s affiliates and subsidiaries.

 

2.                     From and after
July 1, 2004, you have agreed to serve in the position of Chairman, Global
Affairs.  In this role you shall hold
yourself available for consultation and senior level representation of the
Company regarding business development in both existing and potential market
environments.

 

3.                     Your appointment
to the position of Chairman, Global Affairs and your acting in such capacity is
not intended to, and does not, continue your status as an executive officer of
the Company, and while functioning in such position you shall have neither the
responsibility nor the organizational authority of an executive officer.

 

 

4.                     The initial term
of this agreement shall be for the two year period commencing July 1, 2004
and continuing through June 30, 2006. 
Thereafter, this agreement shall be renewed on a year to year basis
unless, prior to December 31, 2005 or any December 31 thereafter you
or the Company determine that this agreement shall be terminated as of the next
occurring June 30.

 

5.                     Subject to
adjustment as set out at Paragraph 8, below, the Company shall compensate you
for your services as Chairman, Global Affairs in the gross amount of $500,000
per year, payable quarterly in advance during the continued term of this
agreement.

 

6.                     To assist in your
performance of services hereunder, the Company shall provide to you an office
appropriate to your senior consultative status at its headquarters location and
the services of an administrative assistant during the continued term of this
agreement.

 

7.                     As currently
contemplated, your activity as Chairman, Global Affairs will best be supported
by your travel and interactions in the Asia/Pacific region approximately two
times each year, with a similar commitment to the European area.  All air travel, land arrangements and
business related entertainment will be provided and/or reimbursed in a manner
consistent with that afforded to senior executives of the Company.  Additionally, travel related expenses of
Mrs. Langhammer will be reimbursed by the Company in those instances in which
her accompaniment is appropriate to business need and convenient to her
schedule.

 

8.                     In the event that
during any fiscal year of the Company you shall devote more than fifty days (or
full day equivalents, inclusive of days of travel of more than four hours) the
Company shall pay to you, in addition to the amount set out at Paragraph 5,
above, the gross amount of $5,000 for each day in excess of fifty.  This amount, if any, shall be payable annually
in arrears, upon your submission of a claim therefor in a form reasonably
acceptable to the Company.

 

 

9.                     Your appointment
as Chairman, Global Affairs and your acting in such capacity shall not be
deemed eligible service for purposes of the Company’s employee benefit plans,
and such service shall have no effect on your retirement benefits or the
continuation of your retiree medical benefits, all of which have been set out
in your prior employment agreements. 
During the term of this agreement, however, you shall be deemed a senior
business invitee of the Company for purposes of Business Travel Accident
Insurance arrangements provided by the Company.

 

10.               You acknowledge
that for all purposes of this agreement you are an independent contractor and
shall be solely liable for all income, self employment, personal service,
unincorporated business or other similar tax imposed by any jurisdiction in
connection with this agreement or your performance of services hereunder.

 

Please acknowledge your agreement to all of the
foregoing by executing the enclosed copy of this letter and returning it to the
undersigned.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Andrew J. Cavanaugh

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Andrew J. Cavanaugh

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Senior Vice President

  Global Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Acknowledged and Agreed to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Fred H. Langhammer

  	
   

  	
   

  
	
  Fred H. Langhammer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  30-6-2004

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cc: Leonard A. Lauder

  	
   

  	
   

  
	
  Richard D. Parsons

  	
   

  	
   

  
	
  William P. LauderExhibit 10.16a

 

Form of

Stock Option
Agreement for Annual Stock Options

Under

The Estée Lauder Companies Inc.

Non-Employee Director Share Incentive
Plan (the “Plan”)

 

This STOCK OPTION
AGREEMENT provides for the granting of Stock Options (“Options”) by The Estée
Lauder Companies Inc., a Delaware corporation (the “Company”), to the
participant, a Non-Employee Director of the Company (a “Non-Employee
Director”), to purchase shares of the Company’s Class A Common Stock, par value
$0.01 (the “Shares”), on the terms and subject to the conditions hereinafter
provided.  The Stock Options described
herein are being granted pursuant to Section 6(a) of the Company’s
Non-Employee Director Share Incentive Plan, as may be amended or restated from
time to time (the “Plan”), and are subject in all respects to the provisions of
the Plan.  The Stock Options granted
hereunder are not Incentive Stock Options (as defined in Section 422(b) of
the Internal Revenue Code of 1986, as amended (the “Code”)).  This Stock Option Agreement incorporates and
is subject to all terms, conditions, limitations and restrictions contained in
the Plan, which shall be controlling in the event of any conflicting or
inconsistent provisions.  Capitalized
terms not defined herein shall have the meanings ascribed thereto in the Plan.

 

The name of the
“Non-Employee Director”, the “Grant Date”, the aggregate number of Shares that
may be purchased pursuant to this agreement, and the “Exercise Price” per Share
are stated in the attached “Notice of Grant”, and incorporated herein by
reference.  The other terms and
conditions of the Options are stated in this agreement and in the Plan.

 

1.  Payment of Exercise Price.  The Company will provide and communicate to the
Non-Employee Director various methods of exercise.  These methods may include the ability to receive Shares of Class
A Common Stock of the Company or cash at exercise.  To facilitate exercise, the Company may enter into agreements for
coordinated procedures with one or more brokerage firms or financial
institutions.

 

2.  Exercise Period.

 

(i).  General. Each Stock
Option granted to a Non-Employee Director hereunder shall become exercisable
beginning on the first anniversary of the date of grant provided that the
Non-Employee Director continues to serve as a director of the Company on such
anniversary date; provided, however, any such Stock Option granted to
a Non-Employee Director shall become immediately exercisable in the event of
(A) a Change in Control of the Company or (B) the death of the Non-Employee
Director.  Each Stock Option shall
terminate on the tenth anniversary of the date of grant unless terminated
earlier pursuant to the Plan or later pursuant to Section 2(d)(iii)
hereof.  If a Non-Employee Director
ceases to serve as a director of the Company for any reason other than as a
result of a Change in Control or his or her death, each Stock Option granted to
such person less than one year prior to cessation of service shall immediately
terminate and become null and void upon such cessation of service.

 

(ii).  Termination of
Directorship.  If a Non-Employee
Director ceases to serve as a director of the Company, any exercisable
outstanding Stock Option previously granted to such Non-Employee Director
shall, to the extent not theretofore exercised, remain exercisable at any time
up to and including a date that is five years after the date of such cessation
of service, except as set forth in Section 2(d)(iii) hereof, at which time
such Stock Option shall terminate and become null and void; provided,
however,
that no Stock Option shall be exercisable later than ten years after the date
of grant (except as set forth in Section 2(d)(iii) hereof); provided,
further,
however,
if the service of a Non-Employee Director ceases by reason other than (A)
death, (B) disability (as described in Section 22(e)(3) of the Code), (C)

 

1

 

voluntary
retirement from service as a director of the Company, or (D) the failure of the
Company to nominate for re-election such Non-Employee Director who is otherwise
eligible, unless such failure to nominate for re-election is due to any act of
(1) fraud or intentional misrepresentation or (2) embezzlement,
misappropriation or conversion of assets or opportunities of the Company or any
subsidiary, in which case such Stock Option shall immediately terminate and
become null and void.

 

(iii) Extension of Term. 
The term of exercise of all outstanding Stock Options held by a
Non-Employee Director that have a remaining term of less than one year on the
date of such Non-Employee Director’s death shall automatically be extended to
the first anniversary of the date of death.

 

3.  Post-Directorship Exercises.  The exercise of any Stock Option after a
Non-Employee Director ceases to serve as a director shall be subject to
satisfaction of the conditions precedent that the former Non-Employee Director
neither (i) competes with, or takes employment with or renders services as a
director or in any other capacity to a competitor of, the Company, its subsidiaries
or affiliates without the written consent of the Company, nor (ii) conducts
himself or herself in a manner adversely affecting the Company.  If a Stock Option shall be exercised by the
legal or personal representative of a deceased Non-Employee Director or former
Non-Employee Director, or by a person who acquired a Stock Option granted
hereunder by bequest or inheritance or by reason of the death of any
Non-Employee Director or former Non-Employee Director, written notice of such
exercise shall be accompanied by a certified copy of letters testamentary or
equivalent proof of the right of such legal representative or other person to
exercise such Stock Option.

 

4.  Withholding.  All payments or distributions made hereunder of Shares covered by
Stock Options shall be net of any amounts required to be withheld pursuant to
applicable federal, national, state and local tax withholding requirements
imposed by each taxing authority having jurisdiction.  The Company may require the Non-Employee Director to remit to it
an amount sufficient to satisfy such tax withholding requirements prior to the
delivery of any certificates for such Shares. 
The Company may, in its discretion and subject to such rules as it may
adopt (including any as may be required to satisfy applicable tax and/or
non-tax regulatory requirements), permit the Non-Employee Director pay the
minimum amount of the federal, national, state and local withholding taxes
arising in connection with any Stock Option by electing to have the Company withhold
Shares of Class A Common Stock having a Market Value equal to the amount to be
withheld.

 

5.  Nontransferability. 
The Stock Options granted hereby are not transferable except
by will or the laws of descent and distribution.  Notwithstanding the preceding sentence, the Stock Options granted
hereby may be transferred by the Non-Employee Director for no consideration,
upon ten business days prior written notice to the Company, solely to the
Non-Employee Director’s spouse, siblings, parents, children and/or
grandchildren, or to trusts for the benefit of such persons, or to
partnerships, corporations, limited liability companies or other entities owned
solely by such persons, including trusts for such persons, subject to all
restrictions included in this Stock Option Agreement and subject to the
Non-Employee Director and permitted transferee executing an agreement of
transfer satisfactory to the Board in its sole discretion.

 

6.  Tenure.
A Non-Employee Director’s right, if any, to continue to serve as a director of
the Company or any of its subsidiaries or affiliates shall not be enlarged or
otherwise affected by his or her designation as a participant under this Plan.

 

7.  Notices. 
Any notice required or permitted under this Stock Option Agreement shall
be deemed to have been duly given if delivered, telecopied or mailed, certified
or registered mail, return receipt requested (a) to the Non-Employee Director
at such address as the Company shall maintain for the Non-Employee Director and
(b) to the Company to the Senior Vice President, General Counsel and Secretary
at the Company’s principal executive office.

 

2

 

8.  Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any
time any provision of this Stock Option Agreement shall in no manner be
construed to be a waiver of such provision or of any other provision hereof.

 

9.  Governing Law.  The Stock Option Agreement shall be governed by and construed
according to the laws of the State of New York, applicable to agreements made
and performed in that state.

 

10.  Partial Invalidity.  The invalidity or illegality of any
provision herein shall not be deemed to affect the validity of any other
provision.

 

	
   

  	
  The Estée Lauder
  Companies Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

3

 

Notice
of Grant for Annual Stock Options

Under

The Estée Lauder Companies Inc.

Non-Employee Director Share Incentive
Plan (the “Plan”)

 

This is to confirm that
you were awarded options to purchase shares of Class A Common Stock of The
Estee Lauder Companies Inc. (the “Shares”) in accordance with the Plan.  These options are granted under and governed
by the terms and conditions of the Plan and the Stock Option Agreement (the
“Agreement”) attached hereto and made part hereof.  A Summary Plan Description is also attached.  Please read these documents and keep them
for future reference.  The specific
terms of your award are as follows:

 

Non-Employee Director:

 

SSN or Tax ID:

 

Grant Date:

 

Type of Award:  Non-Qualified Stock Options

 

Exercise Price per Share:

 

Aggregate number of
Shares subject to your options:

 

Exercise Period: Your options
shall become exercisable on the following dates (or in the event of a “Change
in Control” of the Company or upon death, disability, if these occurrences are
earlier), but are subject to termination or forfeiture as per the Agreement:

 

	
  Number of Shares

  	
   

  	
  Date
  Exercisable

  	
   

  	
  Expiration
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Questions regarding the
stock option program can be directed to
             
at
               
or              at
             .  If you wish to accept this grant, please
sign this Notice and return within the next two weeks to:

 

Compensation Department

767 Fifth Avenue, 41st
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

  	
   

  	
   

  

 

4

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