Document:

Exhibit
10.2

THE ESTÉE LAUDER COMPANIES INC.

AMENDED
AND RESTATED FISCAL 2002 SHARE INCENTIVE PLAN

1.     Purpose. The Estée Lauder
Companies Inc. Amended and Restated Fiscal 2002 Share Incentive Plan (the “Plan”)
is intended to provide incentives which will attract, retain, motivate and
reward highly competent people as officers and key employees of, and
consultants to, The Estée Lauder Companies Inc. (the “Company”) and its
subsidiaries and affiliates, by providing them opportunities to acquire shares
of the Class A Common Stock, par value $.01 per share, of the Company (“Class A
Common Stock”) or to receive monetary payments based on the value of such
shares pursuant to the Benefits (as defined below) described herein.
Additionally, the Plan is intended to assist in further aligning the interests
of the Company’s officers, key employees and consultants to those of its other
stockholders.

2.               Administration.

(a) The Plan will
be administered by a committee (the “Committee”) appointed by the Board of
Directors of the Company from among its members (which may be the Compensation
Committee or the Stock Plan Subcommittee) and shall be comprised, unless
otherwise determined by the Board of Directors, solely of not less than two
members who shall be (i) “Non-Employee Directors” within the meaning of Rule
16b-3(b)(3) (or any successor rule) promulgated under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and (ii) “outside directors”
within the meaning of Treasury Regulation Section 1.162-27(e)(3) under Section
162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). The
Committee is authorized, subject to the provisions of the Plan, to establish
such rules and regulations as it deems necessary for the proper administration
of the Plan and to make such determinations and interpretations and to take
such action in connection with the Plan and any Benefits (as defined below)
granted hereunder as it deems necessary or advisable, including the right to
establish the terms and conditions of Benefits, to accelerate the vesting or
exercisability of Benefits and to cancel Benefits. The Committee may determine
the extent to which any Benefit under the Plan is required to comply, or not
comply, with Section 409A of the Code. All determinations and interpretations
made by the Committee shall be binding and conclusive on all participants and
their legal representatives. No member of the Committee and no employee of the
Company shall be liable for any act or failure to act hereunder, except in
circumstances involving his or her bad faith, gross negligence or willful
misconduct, or for any act or failure to act hereunder by any other member or
employee or by any agent to whom duties in connection with the administration
of the Plan have been delegated. The Company shall indemnify members of the
Committee and any agent of the Committee who is an employee of the Company, a
subsidiary or an affiliate against any and all liabilities or expenses to which
they may be subjected by reason of any act or failure to act with respect to
their duties on behalf of the Plan, except in circumstances involving such
person’s bad faith, gross negligence or willful misconduct.

(b) The Committee
may delegate to one or more of its members, or to one or more agents, such
administrative duties as it may deem advisable, and the Committee, or any
person to whom it has delegated duties as aforesaid, may employ one or more
persons to render advice with respect to any responsibility the Committee or
such person may have under the Plan. The Committee may employ such legal or
other counsel, consultants and agents as it may deem desirable for the
administration of the Plan and may rely upon any opinion or computation
received from any such counsel, consultant or agent. Expenses incurred by the
Committee in the engagement of such counsel, consultant or agent shall be paid
by the Company, or the subsidiary or affiliate whose employees have benefited
from the Plan, as determined by the Committee.

3.     Participants. Participants will
consist of such officers and key employees of, and such consultants to, the
Company and its subsidiaries and affiliates as the Committee in its sole
discretion determines to be significantly responsible for the success and
future growth and profitability of the Company and whom the Committee may
designate from time to time to receive Benefits under the Plan. Designation of
a participant in any year shall not require the Committee to designate such
person to receive a Benefit in any other year or, once designated, to receive
the same type or amount of Benefit as granted to the participant in any other
year. The Committee shall consider such factors as it deems pertinent in
selecting participants and in determining the type and amount of their
respective Benefits.

4.     Type of Benefits. Benefits under
the Plan may be granted in any one or a combination of the following
(collectively, “Benefits”): (a) Stock Options, (b) Stock Appreciation Rights,
(c) Stock Awards, (d) Performance Awards and (e) Stock Units (each as described
below). Stock Awards, Performance Awards, and Stock Units may, as determined by
the Committee in its discretion, constitute Performance-Based Awards, as
described in Section 11 hereof. Benefits shall be evidenced by agreements
(which need not be identical) in such forms as the Committee may from time to
time approve (each a “Benefit Agreement”); provided, however, that in the event of any conflict between the
provisions of the Plan and any Benefit Agreement and subject to Section 12, the
provisions of the Plan shall prevail.

5.               Common Stock Available Under the Plan.

(a) Subject to the
provisions of this Section 5 and any adjustments made in accordance with
Section 13 hereof, the maximum number of shares of Class A Common Stock that
may be delivered to participants (including permitted assignees) and their
beneficiaries under this Plan shall be equal to the sum of: (i) 22,000,000
shares of Class A Common Stock, which may be authorized and unissued or
treasury shares; and (ii) up to 10,000,000 shares of Class A Common Stock that
are represented by awards granted or to be granted under any prior plan of the
Company or under any employment agreement with the Company, which are
forfeited, expire or are cancelled without the delivery of shares of Class A
Common Stock or which result in the forfeiture of shares of Class A Common
Stock back to the Company. Any shares of Class A Common Stock covered by a
Benefit (or portion of a Benefit) granted under the Plan, which is forfeited or
canceled, expires or, in the case of a Benefit other than a Stock Option, is
settled in cash, shall be deemed not to have been delivered for purposes of
determining the maximum number of shares of Class A Common Stock available for
delivery under the Plan. The preceding sentence shall apply only for purposes
of determining the aggregate number of shares of Class A Common Stock subject
to Benefits but shall not apply for purposes of determining the maximum number
of shares of Class A Common Stock with respect to which Benefits (including the
maximum number of shares of Class A Common Stock subject to Stock Options and
Stock Appreciation Rights) may be granted to an individual participant under
the Plan.

(b) If any Stock
Option is exercised by tendering shares of Class A Common Stock, either actually
or by attestation, to the Company as full or partial payment in connection with
the exercise of a Stock Option under this Plan or any prior plan of the
Company, only the number of shares of Class A Common Stock issued net of the
shares of Class A Common Stock tendered shall be deemed delivered for purposes
of determining the maximum number of shares of Class A Common Stock available
for delivery under the Plan. Further, shares of Class A Common Stock delivered
under the Plan in settlement, assumption or substitution of outstanding awards
(or obligations to grant future awards) under the plans or arrangements of
another entity shall not reduce the maximum number of shares of Class A Common
Stock available for delivery under the Plan, to the extent that such
settlement, assumption or substitution is as a result of the Company or its
subsidiaries or affiliates acquiring another entity (or an interest in another
entity). This Section 5(b) shall apply only for purposes of determining the
aggregate number of shares of Class A Common Stock subject to Benefits but
shall not apply for purposes of determining (x) the maximum number of shares of
Class A Common Stock with respect to which Benefits (including the maximum
number of shares of Class A Common Stock subject to Stock Options and Stock
Appreciation Rights) may be granted to an individual participant under the Plan
or (y) the maximum number of shares of Class A Common Stock that may be
delivered through Stock Options under the Plan.

(c) Subject to any
adjustments made in accordance with Section 13 hereof, the following additional
aggregate and individual maximums are imposed under the Plan. The aggregate
number of shares of Class A Common Stock that may be delivered through Stock
Options shall be the lesser of (i) 32,000,000 and (ii) the maximum number of
shares of Class A Common Stock that may be delivered under the Plan, as
specified in Section 5(a) hereof. The number of shares of Class A Common Stock
with respect to which Benefits may be granted to an individual participant
under the Plan in any fiscal year of the Company shall not exceed 2,000,000.

6.     Stock Options. Stock Options will
consist of awards from the Company that will enable the holder to purchase a
number of shares of Class A Common Stock at set terms. Stock Options may be “incentive
stock options” within the meaning of Section 422 of the Code (“Incentive Stock
Options”), or Stock Options which do not constitute Incentive Stock Options (“Nonqualified
Stock Options”). The Committee will have the authority to grant to any
participant one or more Incentive Stock Options, Nonqualified Stock Options, or
both types of Stock Options (in each case with or without Stock Appreciation
Rights). Each Stock Option shall be subject to such terms and 

 2
 

conditions consistent
with the Plan as the Committee may impose from time to time, subject to the
following limitations:

(a) Exercise Price.
Each Stock Option granted hereunder shall have such per-share exercise price as
the Committee may determine at the date of grant; provided,
however, subject to subsection (d)
below, that the per-share exercise price shall not be less than 100% of the
Fair Market Value (as defined below) of the Class A Common Stock on the date
the Stock Option is granted.

(b) Payment of Exercise Price.
The exercise price may be paid in cash or, in the discretion of the Committee,
by the delivery of shares of Class A Common Stock of the Company then owned by
the participant, by the withholding of shares of Class A Common Stock for which
a Stock Option is exercisable or by a combination of these methods. In the
discretion of the Committee, payment also may be made by delivering a properly
executed exercise notice to the Company together with a copy of irrevocable
instructions to a broker to deliver promptly to the Company the amount of sale
or loan proceeds to pay the exercise price. To facilitate the foregoing, the
Company may enter into agreements for coordinated procedures with one or more
brokerage firms. The Committee may prescribe any other method of paying the
exercise price that it determines to be consistent with applicable law and the
purposes of the Plan, including, without limitation, in lieu of the exercise of
a Stock Option by delivery of shares of Class A Common Stock of the Company
then owned by a participant, providing the Company with a notarized statement
attesting to the number of shares owned, in which case upon verification by the
Company, the Company would issue to the participant only the number of
incremental shares to which the participant is entitled upon exercise of the
Stock Option. In determining which methods a participant may utilize to pay the
exercise price, the Committee may consider such factors as it determines are
appropriate.

(c) Exercise Period.
Stock Options granted under the Plan shall be exercisable at such time or times
and subject to such terms and conditions as shall be determined by the
Committee; provided, however,
that no Stock Option shall be exercisable later than ten years after the date
it is granted except, for Stock Options granted before April 10, 2007, in the
event of a participant’s death, the exercise period of such participant’s Stock
Options may be extended beyond such period but no longer than one year after
the participant’s death. All Stock Options shall terminate at such earlier
times and upon such conditions or circumstances as the Committee shall in its
discretion set forth in the Benefit Agreement relating to the option grant.

(d) Limitations on Incentive
Stock Options. Incentive Stock Options may be granted only to
participants who are employees of the Company or one of its subsidiaries
(within the meaning of Section 424(f) of the Code) at the date of grant. The
aggregate Fair Market Value (determined as of the time the Stock Option is
granted) of the Class A Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by a participant during any calendar
year (under all option plans of the Company and of any parent corporation or
subsidiary corporation (as defined in Sections 424(e) and (f) of the Code,
respectively)) shall not exceed $100,000. For purposes of the preceding
sentence, Incentive Stock Options will be taken into account in the order in
which they are granted. The per-share exercise price of an Incentive Stock
Option shall not be less than 100% of the Fair Market Value of the Class A
Common Stock on the date of grant, and no Incentive Stock Option may be
exercised later than ten years after the date it is granted; provided, however, that
Incentive Stock Options may not be granted to any participant who, at the time
of grant, owns stock possessing (after the application of the attribution rules
of Section 424(d) of the Code) more than 10% of the total combined voting power
of all classes of stock of the Company or any parent or subsidiary corporation
of the Company, unless the exercise price is fixed at not less than 110% of the
Fair Market Value of the Class A Common Stock on the date of grant and the
exercise of such option is prohibited by its terms after the expiration of five
years from the date of grant of such option.

(e) Post-Employment Exercises.
The exercise of any Stock Option after termination of employment
shall be subject to satisfaction of the conditions precedent that the
participant neither (i) competes with, or takes employment with or renders
services 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.

 3
 

7.               Stock Appreciation Rights.

(a) The Committee
may, in its discretion, grant Stock Appreciation Rights to the holders of any
Stock Options granted hereunder. In addition, Stock Appreciation Rights may be
granted independently of, and without relation to, Stock Options. A Stock
Appreciation Right is a right to receive a payment in cash, Class A Common
Stock or a combination thereof, in an amount equal to the excess of (x) the
Fair Market Value, or other specified valuation (which shall be no less than the
Fair Market Value), of a specified number of shares of Class A Common Stock on
the date the right is exercised over (y) the Fair Market Value, or other
specified valuation (which shall be no less than the Fair Market Value) of such
shares of Class A Common Stock on the date the right is granted, all as
determined by the Committee; provided, however, that if a Stock Appreciation Right is granted in
tandem with or in substitution for a Stock Option, the Fair Market Value
designated in the Benefit Agreement may be the Fair Market Value on the date
such Stock Option was granted. Each Stock Appreciation Right shall be subject
to such terms and conditions as the Committee shall impose from time to time.

(b) Stock
Appreciation Rights granted under the Plan shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee; provided, however,
that no Stock Appreciation Right shall be exercisable later than ten years
after the date it is granted except, for Stock Appreciation Rights granted
before April 10, 2007, in the event of a participant’s death, the exercise
period of such participant’s Stock Appreciation Rights may be extended beyond
such period but no longer than one year after the participant’s death. All
Stock Appreciation Rights shall terminate at such earlier times and upon such
conditions or circumstances as the Committee shall in its discretion set forth
in such right.

(c) The exercise
of any Stock Appreciation Right after termination of employment shall be
subject to satisfaction of the conditions precedent that the participant
neither (i) competes with, or takes other employment with or renders services
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.

8.     Stock Awards. The Committee may,
in its discretion, grant Stock Awards (which may include mandatory payment of
bonus incentive compensation in stock) consisting of Class A Common Stock
issued or transferred to participants with or without payments therefor. Stock
Awards may be subject to such terms and conditions as the Committee determines
to be appropriate, including, without limitation, restrictions on the sale or
other disposition of such shares and the right of the Company to reacquire such
shares for no consideration upon termination of the participant’s employment
within specified periods, and may constitute Performance-Based Awards, as
described in Section 11 hereof. The Committee may require the participant to
deliver a duly signed stock power, endorsed in blank, relating to the Class A
Common Stock covered by a Stock Award. The Committee also may require that the
stock certificates evidencing such shares be held in custody or bear
restrictive legends until the restrictions thereon shall have lapsed. The Stock
Award shall specify whether the participant shall have, with respect to the
shares of Class A Common Stock subject to a Stock Award, all of the rights of a
holder of shares of Class A Common Stock of the Company, including the right to
receive dividends and to vote the shares.

9.               Performance Awards.

(a) Performance
Awards may be granted to participants at any time and from time to time, as
shall be determined by the Committee. Performance Awards may constitute
Performance-Based Awards, as described in Section 11 hereof. The Committee
shall have complete discretion in determining the number, amount and timing of
awards granted to each participant; provided, that for Performance Awards
subject to Section 409A of the Code, these determinations must be made on or
before the date of grant of the Performance Award. Such Performance Awards may
be in the form of shares of Class A Common Stock or Stock Units. Performance
Awards may be awarded as short-term or long-term incentives. Performance
targets may be based upon Company-wide, divisional and/or individual
performance, or other factors as determined by the Committee.

(b) With respect
to those Performance Awards that are not intended to constitute
Performance-Based Awards, the Committee shall have the authority at any time to
make adjustments to performance targets for any outstanding Performance Awards
which the Committee deems necessary or desirable unless at the time of
establishment of such targets the Committee shall have precluded its authority
to make such adjustments, provided that, for Performance Awards that are
subject to Section 409A of the Code, the adjustments are compliant with Section
409A of the Code and the regulations thereunder.

 4
 

(c) Payment of
earned Performance Awards shall be made in accordance with terms and conditions
prescribed or authorized by the Committee. The participant may elect to defer,
or the Committee may require or permit the deferral of, the receipt of
Performance Awards upon such terms as the Committee deems appropriate, provided
that, for Performance Awards that vest on or after January 1, 2005, any
election and deferral is compliant with the requirements of Section 409A of the
Code and the regulations thereunder.

10.         Stock Units.

(a)
The Committee may, in its discretion, grant Stock Units to participants
hereunder. A “Stock Unit” means a notional account representing one share of
Class A Common Stock. The Committee shall determine the criteria for the
vesting of Stock Units. Stock Units may constitute Performance-Based Awards, as
described in Section 11 hereof. A Stock Unit granted by the Committee shall
provide for payment in shares of Class A Common Stock at such time as the
Benefit Agreement shall specify. Shares of Class A Common Stock issued pursuant
to this Section 10 may be issued with or without payments or other
consideration therefor, as may be required by applicable law or as may be
determined by the Committee. On or before the grant date, the Committee shall
determine whether a participant granted a Stock Unit shall be entitled to a
Dividend Equivalent Right. A “Dividend Equivalent Right” means the right to
receive the amount of any dividend paid on the share of Class A Common Stock
underlying a Stock Unit, which shall be payable in cash or in the form of
additional Stock Units.

(b) Upon vesting
of a Stock Unit, unless the Committee has determined to defer payment with
respect to such unit or a participant has elected to defer payment under
subsection (c) below, Class A Common Stock shall be distributed to the
participant in respect of the Stock Units unless, for Stock Units that vested
before January 1, 2005, the Committee, with the consent of the participant, provides
for the payment of the Stock Unit in cash or partly in cash and partly in
shares of Class A Common Stock equal to the value of the shares of Class A
Common Stock which would otherwise be distributed to the participant.

(c) The Committee
may permit a participant to elect not to receive Class A Common Stock upon the
vesting of such Stock Unit and for the Company to continue to maintain the
Stock Unit on its books of account. In such event, the value of a Stock Unit
shall be payable in shares of Class A Common Stock pursuant to the agreement of
deferral.  For Stock Units that vest on
or after January 1, 2005, any such election must comply with the requirements
of Section 409A of the Code and the regulations thereunder.

11.   Performance-Based Awards. Certain
Benefits granted under the Plan may be granted in a manner such that the
Benefits qualify for the performance-based compensation exception to Section
162(m) of the Code (“Performance-Based Awards”). As determined by the Committee
in its sole discretion, either the granting or vesting of such
Performance-Based Awards shall be based on achievement of hurdle rates and/or
growth rates in one or more business criteria that apply to the individual
participant, one or more business units or the Company as a whole. The business
criteria shall be as follows, individually or in combination: (i) net earnings;
(ii) earnings per share; (iii) net sales; (iv) market share; (v) net operating
profit; (vi) expense targets; (vii) working capital targets relating to
inventory and/or accounts receivable; (viii) operating margin; (ix) return on
equity; (x) return on assets; (xi) planning accuracy (as measured by comparing
planned results to actual results); (xii) market price per share; (xiii) gross
margin; and (xiv) total return to stockholders. 
In addition, Performance-Based Awards may include comparisons to the
performance of other companies, such performance to be measured by one or more
of the foregoing business criteria. Furthermore, the measurement of performance
against goals may exclude or adjust for the impact of certain events or
occurrences that were not budgeted or planned for in setting the goals,
including, among other things, restructurings, discontinued operations, changes
in foreign currency exchange rates, extraordinary items and other unusual or
non-recurring items, and the cumulative effects of accounting changes.  With respect to Performance-Based Awards, (i)
the Committee shall establish in writing (x) the performance goals applicable
to a given period specifying in terms of an objective formula or standard the
method for computing the amount of compensation payable to the participant if
such performance goals are achieved and (y) the individual employees or class
of employees to which such performance goals apply no later than 90 days after
the commencement of such period (but in no event after one-quarter of such
period has elapsed) and (ii) no Performance-Based Awards shall be payable to or
vest with respect to any participant for a given period until the Committee
certifies in writing that the objective performance goals (and any other
material terms) applicable to such period have been satisfied. With respect to
any Benefits intended to qualify as Performance-Based Awards, after 

 5
 

establishment of a
performance goal, the Committee shall not revise such performance goal or
increase the amount of compensation payable thereunder (as determined in
accordance with Section 162(m) of the Code) upon the attainment of such
performance goal.  Notwithstanding the
preceding sentence, and unless restricted by the applicable Benefit Agreement,
the Committee may reduce or eliminate the number of shares of Class A Common
Stock or cash granted or the number of shares of Class A Common Stock vested
upon the attainment of such performance goal.

12.   Foreign Laws. The
Committee may grant Benefits to individual participants who are subject to the
tax laws of nations other than the United States, which Benefits may have terms
and conditions which the Committee determines to be necessary to comply with
applicable foreign laws. The Committee may take any action which it deems
advisable to obtain approval of such Benefits by the appropriate foreign
governmental entity; provided, however, that no Benefits may be granted pursuant to this Section
12 and no action may be taken which would result in a violation of the Exchange
Act, the Code or any other applicable law.

13.         Adjustment
Provisions; Change in Control.

(a) If there is
any change in the Class A Common Stock of the Company, through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
reverse stock split, split up, spin-off, combination of shares, exchange of
shares, dividend in kind or other like change in capital structure or
distribution (other than normal cash dividends) to stockholders of the Company,
the Committee will adjust, in a fair and equitable manner, the Plan and each
outstanding Benefit under the Plan to prevent dilution or enlargement of
participants’ rights under the Plan.  The
Committee will make this adjustment each time one of the changes identified
above occurs by either (i) adjusting the number of shares of Class A Common
Stock and/or kind of shares of common stock of the Company or other securities
that may be issued under the Plan, the number of shares of Class A Common Stock
and/or kind of shares of common stock of the Company or other securities that
are subject to outstanding Benefits, and/or where applicable, the exercise
price or purchase price applicable to outstanding Benefits, (ii) granting a
right to receive one or more payments of securities, cash and/or property
(which right may be evidenced as an additional Benefit under this Plan) in
respect of any outstanding Benefit, or (iii) providing for the settlement of
any outstanding Benefit (other than a Stock Option or Stock Appreciation Right)
in such securities, cash and/or property as would have been received had the
Benefit been settled in full immediately prior to the change.  However, any adjustment or change or other
action under this Section 13 shall comply with or otherwise ensure exemption
from Section 409A of the Code, as applicable. Appropriate adjustments also may
be made by the Committee to the terms of any Benefits under the Plan to reflect
such changes or distributions (and any extraordinary dividend or distribution
of cash or other assets) and to modify any other terms of outstanding Benefits
on an equitable basis, including modifications of performance targets and
changes in the length of performance periods (except that Benefits intended to
constitute Performance-Based Awards shall only be adjusted to the extent
permitted under Section 11 hereof, and all Benefits will only be adjusted to
ensure compliance with, or exemption from, Section 409A of the Code).  In addition, other than with respect to Stock
Options, Stock Appreciation Rights, and other awards intended to constitute
Performance-Based Awards, the Committee is authorized to make adjustments to
the terms and conditions of, and the criteria included in, Benefits in
recognition of unusual or nonrecurring events affecting the Company or the
financial statements of the Company, or in response to changes in applicable
laws, regulations, or accounting principles.

(b)
Notwithstanding any other provision of this Plan, in the event of a Change in
Control (as defined below), the Committee, in its discretion, may take such
actions as it deems appropriate with respect to outstanding Benefits,
including, without limitation, accelerating the exercisability or vesting of such
Benefits, or such other actions provided in an agreement approved by the Board
in connection with a Change in Control and such Benefits shall be subject to
the terms of such agreement as the Committee, in its discretion, shall
determine, provided that all such actions ensure Benefits are compliant with,
or otherwise exempt from, Section 409A of the Code.  The Committee, in its discretion, may
determine that, upon the occurrence of a Change in Control, each Stock Option
and Stock Appreciation Right outstanding hereunder shall terminate within a
specified number of days after notice to the holder, and such holder shall
receive, with respect to each share of Common Stock subject to such Stock
Option or Stock Appreciation Right, an amount equal to the excess of the Fair
Market Value of such shares of Common Stock immediately prior to the occurrence
of such Change in Control over the exercise price per share of such Stock
Option or Stock Appreciation Right; such amount to be payable in cash, in one
or more kinds of property (including the property, if any, payable in the
transaction) or in a combination thereof, as the Committee, in its discretion,
shall 

 6
 

determine. For purposes
of this Section 13(b), a “Change in Control” of the Company shall be deemed to
have occurred upon any of the following events:

(i) On or after the date there are no shares of Class B Common Stock, par
value $.01 per share, of the Company outstanding, any person as such term is
used in Section 13(d) of the Exchange Act or person(s) acting together which
would constitute a “group” for purposes of Section 13(d) of the Exchange Act
(other than the Company, any subsidiary, any employee benefit plan sponsored by
the Company or any member of the Lauder family or any family-controlled
entities) acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person(s)) and “beneficially owns”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, at
least 30% of the total voting power of all classes of capital stock of the
Company entitled to vote generally in the election of the Board; or

(ii) During any period of twelve consecutive months, either (A) the
individuals who at the beginning of such period constitute the Company’s Board
of Directors or any individuals who would be “Continuing Directors” (as defined
below) cease for any reason to constitute at least a majority thereof (B) at
any meeting of the shareholders of the Company called for the purpose of
electing directors, a majority of the persons nominated by the Board for
election as directors fail to be elected; or

(iii) Consummation of a sale or other disposition (in one transaction or a
series of transactions) of all or substantially all of the assets of the
Company; or

(iv) Consummation of a merger or consolidation of the Company (A) in which
the Company is not the continuing or surviving corporation (other than a
consolidation or merger with a wholly-owned subsidiary of the Company in which
all shares of the Company’s common stock outstanding immediately before the
effectiveness of that consolidation or merger are changed into or exchanged for
common stock of the subsidiary) or (B) in which all shares of the Company’s
common stock are converted into cash, securities or other property, except in
either case, a consolidation or merger of the Company in which the holders of
the shares of Common Stock immediately prior to the consolidation or merger
have, directly or indirectly, at least a majority of the shares of Common Stock
of the continuing or surviving corporation immediately after such consolidation
or merger or in which the Board immediately prior to the merger or
consolidation would, immediately after the merger or consolidation, constitute
a majority of the board of directors of the continuing or surviving
corporation.

Notwithstanding the
foregoing, none of the following shall constitute a Change in Control:  (A) changes in the relative beneficial
ownership among members of the Lauder family and family-controlled entities,
without other changes that would constitute a Change in Control; or (B) any
spin-off of a division or subsidiary of the Company to its stockholders.

For purposes of this
Section 13(b), “Continuing Directors” shall mean (x) the directors of the
Company in office on the Effective Date (as defined below) and (y) any
successor to any such director and any additional director who after the
Effective Date whose appointment or election is endorsed by a majority of the
Continuing Directors at the time of his or her nomination or election.

14.   Nontransferability.
Each Benefit granted under the Plan to a participant shall not be transferable
otherwise than by will or the laws of descent and distribution, and shall be
exercisable, during the participant’s lifetime, only by the participant. In the
event of the death of a participant, each Stock Option or Stock Appreciation
Right theretofore granted to him or her shall be exercisable during such period
after his or her death as the Committee shall in its discretion set forth in
such option or right at the date of grant and then only by the executor or
administrator of the estate of the deceased participant or the person or
persons to whom the deceased participant’s rights under the Stock Option or
Stock Appreciation Right shall pass by will or the laws of descent and
distribution. Notwithstanding the foregoing, at the discretion of the
Committee, an award of a Benefit other than an Incentive Stock Option may
permit the transferability of a Benefit by a participant solely to the
participant’s spouse, siblings, parents, children and grandchildren or trusts
for the benefit of such persons or partnerships, corporations, limited
liability companies or other entities owned solely by such persons, including
trusts for such persons, subject to any restriction included in the award of
the Benefit.

 7
 

15.   Other Provisions.
The award of any Benefit under the Plan also may be subject to such other
provisions (whether or not applicable to a Benefit awarded to any other
participant) as the Committee determines appropriate, including, without
limitation, for the installment purchase of Class A Common Stock under Stock
Options, for the installment exercise of Stock Appreciation Rights, for the
forfeiture of, or restrictions on resale or other disposition of, Class A
Common Stock acquired under any form of Benefit, for the acceleration of
exercisability or vesting of Benefits that are exempt from Section 409A of the
Code in the event of a change of control (whether or not a Change in Control)
of the Company, for the payment of the value of Benefits that are exempt from
Section 409A of the Code to participants in the event of a change of control
(whether or not a Change in Control) of the Company, or to comply with federal
and state securities laws, or understandings or conditions as to the
participant’s employment in addition to those specifically provided for under
the Plan. The award of any Benefit under the Plan shall be subject to the
receipt of the Company of consideration required under applicable state law.

16.   Fair Market Value.
For purposes of this Plan and any Benefits awarded hereunder, Fair Market Value
shall be the closing price of the Class A Common Stock on the date of
calculation (or on the last preceding trading date if Class A Common Stock was
not traded on such date) if the Class A Common Stock is readily tradeable on a
national securities exchange or other market system.  If the Class A Common Stock is not readily
tradeable, Fair Market Value shall mean the amount determined in good faith by
the Committee as the fair market value of the Class A Common Stock; provided
that, for Stock Options and Stock Appreciation Rights that vested on and after
January 1, 2005, Fair Market Value will be determined in accordance with the
requirements of Section 409A and the regulations thereunder.

17.   Withholding.
All payments or distributions of Benefits made pursuant to the Plan shall be
net of any amounts required to be withheld pursuant to applicable federal,
state and local tax-withholding requirements at the minimum statutory
withholding rates. Notwithstanding the foregoing, if the Company proposes or is
required to distribute Class A Common Stock pursuant to the Plan, it may
require the recipient to remit to it or to the corporation that employs such
recipient an amount sufficient to satisfy such tax-withholding requirements
prior to the delivery of any certificates for such Class A Common Stock. In
lieu thereof, the Company or the employing corporation shall have the right to
withhold the amount of such taxes from any other sums due or to become due from
such corporation to the recipient as the Committee shall prescribe. The
Committee 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 an optionee or award or right holder to pay
all or a portion of the federal, state and local withholding taxes arising in
connection with any Benefit consisting of shares of Class A Common Stock by
electing to have the Company withhold shares of Class A Common Stock having a
fair market value, determined based on the average of the high and low trading
prices of Class A Common Stock on the date of vesting (or if the date of
vesting does not fall on a trading day, such average price on the next trading
day after the date of vesting), equal to the amount of tax to be withheld at
the minimum statutory withholding rates.

18.   Tenure. A
participant’s right, if any, to continued employment with the Company or any of
its subsidiaries or affiliates as an officer, employee, or otherwise, shall not
be enlarged or otherwise affected by his or her designation as a participant
under the Plan.

19.   Unfunded Plan.
Participants shall have no right, title, or interest whatsoever in or to any
investments that the Company may make to aid it in meeting its obligations
under the Plan. Nothing contained in the Plan, and no action taken pursuant to
its provisions, shall create or be construed to create a trust of any kind, or
a fiduciary relationship between the Company and any participant, beneficiary,
legal representative or any other person. To the extent that any person
acquires a right to receive payments from the Company under the Plan, such
right shall be no greater than the right of an unsecured general creditor of
the Company. All payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be established and
no segregation of assets shall be made to assure payment of such amounts except
as expressly set forth in the Plan.

20.   No Fractional Shares.
No fractional shares of Class A Common Stock shall be issued or delivered
pursuant to the Plan or any Benefit.  On
or before the date of grant of any Benefit under the Plan that is subject to
Section 409A of the Code, the Committee shall determine whether cash, or
Benefits, or other property shall be issued or paid in lieu of fractional
shares or whether such fractional shares or any rights thereto shall be forfeited
or otherwise eliminated with respect to that Benefit.

 8
 

21.   Duration, Amendment and
Termination. No Benefit shall be granted more than ten years after
the Effective Date. The Committee may amend the Plan from time to time or
suspend or terminate the Plan at any time. No amendment of the Plan may be made
without approval of the stockholders of the Company if the amendment will: (a)
disqualify any Incentive Stock Options granted under the Plan; (b) increase the
aggregate number of shares of Class A Common Stock that may be delivered
through Stock Options under the Plan; (c) increase the maximum amount which can
be paid to an individual participant under the Plan as set forth in the third
sentence of Section 5(c) hereof; (d) change the types of business criteria on
which Performance-Based Awards are to be based under the Plan; (e) modify the
requirements as to eligibility for participation in the Plan or (f) allow for
the repricing of Stock Options or Stock Appreciation Rights. Notwithstanding
anything to the contrary contained herein, the Committee may amend the terms of
any outstanding Benefit or any provision of the Plan as the Committee deems
necessary to ensure compliance with Section 409A of the Code.

22.   Governing Law.
This Plan, Benefits granted hereunder and actions taken in connection herewith
shall be governed and construed in accordance with the laws of the State of New
York (regardless of the law that might otherwise govern under applicable New
York principles of conflict of laws).

23.   Effective Date.
The Plan shall be effective on the date it is approved by the stockholders of
the Company at an annual meeting or any special meeting of stockholders of the
Company (the “Effective Date”).

 9Exhibit
10.3

DOMESTIC

Stock
Option Agreement

Under

The Estée Lauder Companies Inc.

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

This
STOCK OPTION AGREEMENT (the “Agreement”) provides for the granting of options
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 “Employee”
or the “Participant”), to purchase shares of the Company’s Class A Common
Stock, par value $0.01 (the “Shares”), subject to the terms below (the “Stock
Options” or “Options”).  The name of the “Participant,”
the “Grant Date,” the aggregate number of Shares that may be purchased pursuant
to this Agreement, and the “Exercise Price” per Shares are stated in the
attached “Notice of Grant,” and are incorporated by reference.  The other terms of the Options are stated in
this Agreement and in the Plan.  Terms
not defined in this Agreement are defined in the Plan, as amended.

The Stock Options
described in this Agreement are granted pursuant to the Company’s Amended and
Restated Fiscal 2002 Share Incentive Plan, as may be amended from time to time
(the “Plan”), and are subject in all respects to the provisions of the
Plan.  The Stock Options granted under
this Agreement are not Incentive Stock Options (as defined in Section 422(b) of
the Internal Revenue Code of 1986, as amended (the “Code”)).

1.     Payment of Exercise Price.  The
Company will provide and communicate to the Employee various methods of
exercise.  In all cases, upon exercise, the Employee must deliver or cause
to be delivered to the Company (or its agent designated for the purpose) upon
settlement of the exercise sufficient cash or sufficient number of Shares with
value equal to or exceeding the Exercise Price per Share.  The Employee
also is required to deliver or cause to be delivered sufficient cash to cover
the applicable tax withholding in accordance with Section 5 of this Agreement
and fees in connection with the 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.

a.     General.  Subject to other provisions contained in this
Agreement and in the Plan, Stock Options granted under this Agreement will be
exercisable in installments as specified under “Exercise Period” in the
attached “Notice of Grant”.

Stock
Options awarded under this Agreement are exercisable until the close of
business on the tenth anniversary of the Grant Date; after this date, the Stock
Options expire.

b.     Death
or Disability.  If the Employee dies
or becomes totally and permanently disabled (as determined under the Company’s
long term disability program), each Stock Option awarded but not yet
exercisable as of the Employee’s date of death or disability determination will
become immediately exercisable.  The
period during which the Stock Option may be exercised will commence on the day
after the Employee’s date of death or disability determination and end on the
earlier of the close of business on the date of (i) the first anniversary of
the Employee’s death or disability determination or (ii) the tenth anniversary
of the Grant Date.

c.     Retirement.  Subject to Section 3, if the Employee
formally retires under the terms of the Estée Lauder Inc. Retirement Growth
Account Plan (or an affiliate or a successor plan or program of similar
purpose), each Stock Option awarded but not yet exercisable as of the date of
retirement will become immediately exercisable. Each Stock Option awarded may
thereafter be exercised until the close of business on the date of the tenth
anniversary of the Grant Date.

d.     Termination
of Employment Without Cause.

(1)
Subject to Section 3, if the Employee is terminated at the instance of the
Employee (e.g., resigns voluntarily), each Stock Option exercisable but
unexercised as of the effective date of such termination may be exercised until
the close of business on the date first to occur of (i) ninety (90) days after
the effective date of such termination and (ii) the tenth anniversary of the
Grant Date.  Each Stock Option awarded
but unexercisable as of the date of such termination will be forfeited.

(2)
Subject to Section 3, if the Employee is terminated at the instance of the
Company or relevant subsidiary without Cause (as defined below), each Stock
Option awarded but unexercisable as of the date of termination will become
immediately exercisable.  Each Stock
Option awarded may be exercised until the close of business on the date first
to occur of (i) ninety (90) days after the effective date of such termination
and (ii) the tenth anniversary of the Grant Date.  For this purpose, “Cause” is defined in the
employment agreement in effect between the Employee 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 Employee of any of his or her
material obligations under any Company policy or procedure, including, without
limitation, the Code of Corporate Conduct and the Policy on Avoidance of
Insider Trading.

3.     Post-Employment Exercises. 
No Stock Option represented by this Agreement may be exercised after
termination of the Employee’s employment with the Company (or any of its
subsidiaries) unless as provided for in Section 2b, 2c or 2d hereof.  The exercise of any Stock Option after
termination of the Employee’s employment by reason of retirement in accordance
with Section 2c, or due to termination by the Employee or termination by the Company
or relevant subsidiary without Cause in accordance with Section 2d, is subject
to satisfaction of the conditions precedent that the Employee neither (i)
competes with, takes other employment with, or renders services to a competitor
of the Company, its subsidiaries, or affiliates without the Company’s written
consent, nor (ii) conducts herself or himself in a manner adversely affecting
the Company.  All Stock Options that
cannot be exercised after termination of the Employee’s employment will be
forfeited.

4.     Adjustment Provisions; Change in Control.

a.     If there
shall be any change in the Class A Common Stock of the Company, through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
reverse stock split, split up, spin-off, combination of Shares, exchange of
Shares, dividend in kind or other like change in capital structure or
distribution (other than normal cash dividends) to stockholders of the Company,
the Company shall adjust, in a fair and equitable manner, the Plan and each
outstanding Stock Option to prevent dilution or enlargement of Participant’s
rights under the Plan.  The Company will
make this adjustment each time one of the changes identified above occurs by
either adjusting the number of shares of Class A Common Stock and/or kind of
shares of common stock of the Company or other securities that may be issued
with respect to any Stock Option under the Plan, adjusting the number of Class
A Common Stock and/or kind of shares of common stock of the Company or other
securities that are subject to outstanding Stock Options, and/or where
applicable, adjusting the exercise price or purchase price applicable to
outstanding Stock Options.  Appropriate
adjustments may also be made by the Company to the terms of any Stock Options
to reflect such changes or distributions (and any extraordinary dividend or
distribution of cash or other assets) and to modify any other terms of
outstanding Stock Options on an equitable basis.  In addition, the Company is authorized to
make adjustments to the terms and conditions of Stock Options, in recognition
of unusual or nonrecurring events affecting the Company or the financial
statements of the Company, or in response to changes in applicable laws,
regulations, or accounting principles.  However, no adjustment or change can be made
to the terms of a Stock Option that will cause that Stock Option to fail to be
exempt from Code Section 409A.  For
purposes of this Section 4, the Market Value of the Shares shall be equal to
100% of the closing price of the Class A Common Stock on the New York Stock
Exchange (or, if not traded thereon, then on any other national securities
exchange or other market system on which the Class A Common Stock is then
traded) as reported by the Wall Street Journal for the date on which such
Market Value is being fixed, or, if there shall be no trading on such date, the
date next preceding on which trading occurred.

 2
 

b.     Notwithstanding
any other provision hereunder, in the event of a Change in Control (as defined
below), the Committee, in its discretion, may take such actions as it deems
appropriate with respect to outstanding Benefits, including, without
limitation, accelerating the exercisability or vesting of such Benefits, or
such other actions provided in an agreement approved by the Board in connection
with a Change in Control and such Benefits shall be subject to the terms of
such agreement as the Committee, in its discretion, shall determine.  The Committee, in its discretion, may
determine that, upon the occurrence of a Change in Control of the Company each
Stock Option outstanding hereunder shall terminate within a specified number of
days after notice to the holder, and such holder shall receive, with respect to
each share of Common Stock subject to such Stock Option an amount equal to the
excess of the Market Value of such shares of Common Stock immediately prior to
the occurrence of such Change in Control over the exercise price per share of
such Stock Option such amount to be payable in cash, in one or more kinds of
property (including the property, if any, payable in the transaction) or in a
combination thereof, as the Committee, in its discretion, shall determine.  For purposes of this Section 4b, a “Change in
Control” of the Company shall be deemed to have occurred upon any of the
following events:

(i)            On or after the date there are no
shares of Class B Common Stock, par value $.01 per share, of the Company
outstanding, any person as such term is used in Section 13(d) of the Exchange
Act or person(s) acting together which would constitute a “group” for purposes
of Section 13(d) of the Exchange Act (other than the Company, any subsidiary,
any employee benefit plan sponsored by the Company or any member of the Lauder
family or any family-controlled entities (collectively, the “Lauder Family”))
shall acquire (or shall have acquired during the 12-month period ending on the
date of the most recent acquisition by such person(s)) and shall “beneficially
own” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
at least 30% of the total voting power of all classes of capital stock of the
Company entitled to vote generally in the election of the Board; or

(ii)           During any period of twelve
consecutive months, either (A) the individuals who at the beginning of such
period constitute the Board of Directors or any individuals who would be “Continuing
Directors” (as hereinafter defined) cease for any reason to constitute at least
a majority thereof (B) at any meeting of the shareholders of the Company called
for the purpose of electing directors, a majority of the persons nominated by
the Board for election as directors shall fail to be elected; or

(iii)             Consummation of a sale or other
disposition (in one transaction or a series of transactions) of all or substantially
all of the assets of the Company; or

(iv)          Consummation of a merger or
consolidation of the Company (A) in which the Company is not the continuing or
surviving corporation (other than a consolidation or merger with a wholly-owned
subsidiary of the Company in which all shares of the Company’s common stock
outstanding immediately prior to the effectiveness thereof are changed into or
exchanged for common stock of the subsidiary) or (B) pursuant to which all
shares of the Company’s common stock are converted into cash, securities or
other property, except in either case, a consolidation or merger of the Company
in which the holders of the shares of Common Stock immediately prior to the
consolidation or merger have, directly or indirectly, at least a majority of
the shares of Common Stock of the continuing or surviving corporation
immediately after such consolidation or merger or in which the Board
immediately prior to the merger or consolidation would, immediately after the
merger or consolidation, constitute a majority of the board of directors of the
continuing or surviving corporation.

Notwithstanding
the foregoing, none of the following shall constitute a Change in Control of
the Company: (A) changes in the relative beneficial ownership among members of
the Lauder Family, without other changes that would constitute a Change in
Control; or (B) any spin-off of a division or subsidiary of the Company to its
stockholders.

 3
 

For
purposes of this Section 4(b), “Continuing Directors” shall mean (x) the directors
of the Company in office on November 10, 2005 and (y) any successor to any such
director and any additional director who after the Effective Date whose
appointment or election is endorsed by a majority of the Continuing Directors at
the time of his or her nomination or election.

5.     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 Stock Options, including the grant of the Stock Options, the exercise of
the Stock Options, 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 Stock Options 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 exercise,
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 Section.

6.     Transferability. Stock Options granted under this Agreement
may be transferred under laws of descent and distribution or, during Employee’s
lifetime, solely to the Employee’s spouse, siblings, parents, children and
grandchildren or trusts for the benefits of such persons, or partnerships,
corporations, limited liability companies, or other entities owned solely by
such persons, including trusts for such persons.  Any transfer of Stock Options will have no
effect until written notice (providing sufficient details relating to the
proposed transfer, as required by the Company at that time) is received and
confirmed by the Company.  The Employee
will remain liable for all obligations of Employee and his or her transferee or
transferees.  Each transferee will also
be subject the Employee’s obligations under this Agreement relating to the
Stock Options transferred to him or her.

7.     Limitations.  The Employee’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 Employee any right to continue in the employ of the Company or any of its
subsidiaries or to interfere in any way with the right of the Company or any
subsidiary to terminate his or her employment at any time.  Stock Options are not secured by a trust,
insurance contract or other funding medium, and the Employee 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 Stock Option award confers no rights as a
shareholder of the Company until Shares are actually delivered to the Employee.

 4
 

8.     Specific Restrictions Upon Option Shares.  The Employee and the Company agree
to each of the following:

a.     The
Employee will acquire Shares hereunder for investment purposes only and not
with a view to reselling or otherwise distributing  the Shares to the public in violation of the
United States Securities Act of 1933, as amended (the “1933 Act”), and will not
dispose of any such Shares in transactions which, in the opinion of counsel to
the Company, violate the 1933 Act or the rules and regulations thereunder, or
any applicable state or national securities or “blue sky” laws.

b.     If any
Shares are registered under the 1933 Act, no public offering (other than on a
national securities exchange, as defined in the United States Securities
Exchange Act of 1934, as amended) of any Shares acquired under this Agreement
will be made by the Employee (or any other person) under circumstances where he
or she (or such person) may be deemed an underwriter, as defined in the 1933
Act.

c.     The
Employee agrees that the Company has the authority to endorse upon the
certificate or certificates representing the Shares acquired under this
Agreement any legends referring to the restrictions described under this
Section 8 and any other application restrictions, as the Company may deem
appropriate.

9.     Notices.  Any notice
required or permitted under this 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 Employee 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 Stock Options, the Employee hereby expressly and unambiguously consents to
the collection, use, and transfer of personal data as described in this Section
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 Employee’s
participation in the Plan.

b.     The
Employee 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 Employee,
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 Stock Options or other
entitlement to shares awarded, canceled, exercised, vested, unvested, or
outstanding in the Employee’s favor, for purposes of managing and administering
the Plan (“Data”).

c.     The
Employee 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 Employee’s consent in respect of any previous grant of
stock options or other awards.

d.     The
Employee 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
Employee 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 Employee authorizes the Employer, the Company, its subsidiaries,
and 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 

 5
 

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
Employee 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
Employee 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
Employee 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 Employee 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 the Stock
Options is voluntary and occasional, and does not create any contractual or
other right to receive future grants of Stock Options, or benefits in lieu of
Stock Options, even if Stock Options have been granted repeatedly in the past;

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

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

e.     Employee’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 Employee’s employment at any time;

f.      The Stock Option is 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 Stock Option is 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 Stock Option 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 Stock Option 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 Shares is unknown and cannot be
predicted with certainty;

j.      If the Shares decrease in value, the Stock Option will have no
value;

 6
 

k.     If Participant exercises the Stock Option and obtains Shares,
the value of the Shares obtained upon exercise may increase or decrease in
value, even below the Exercise Price;

l.      In consideration of the award of the Stock Option, no claim or
entitlement to compensation or damages shall arise from termination of the
Stock Option or diminution in value of the Stock Option, or Shares purchased
through exercise of the Stock Option, 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 grant
of the Stock Option, 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;

m.    In the event of termination of Participant’s employment (whether
or not in breach of local labor laws), Participant’s right to receive Stock
Options under the Plan and to vest in such Stock Options, 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);
furthermore, in the event of termination of 
Participant’s employment (whether or not in breach of local labor laws),
Participant’s right to exercise the Stock Options after termination of
employment, if any, will be measured by the date of termination of active
employment and will not be extended by any notice period mandated under local
law; the Administrator shall have the exclusive discretion to determine when
Participant is no longer actively employed for purposes of this Agreement;

n.     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

o.     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 this Stock
Option 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 this Stock Option is 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.  The
Stock Options are intended to be exempt from Code Section 409A.  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
Stock Options awarded under the Plan or future Stock Options that may be
awarded under the Plan by electronic means or request Employee’s consent to
participate in the Plan by electronic means. 
Employee hereby consents to receive such documents by electronic
delivery and agrees to 

 7
 

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

Options Domestic

Notice of Grant

Under

The Estee Lauder Companies Inc.

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

This is to confirm that,
upon the recommendation of your management, you were awarded options to
purchase shares of Class A Common Stock of The Estee Lauder Companies Inc.
(the “Shares”) at the most recent meeting of the Stock Plan Subcommittee of the
Compensation Committee of the Board of Directors.  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. 
These options are granted under and governed by the terms and conditions
of the Plan and the Stock Option 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
Identification Number:   (*)

Grant Date:   (*)

Type of Award:  Non-Qualified
Stock Options

Exercise Price per Share:    (*)  (Closing trading price on
NYSE of the Class A Common Stock on the date of grant)

Aggregate number
of Shares subject to your options:   (*)

Exercise Period: Your options shall become exercisable on the following
dates (or upon death, disability, retirement, or involuntary termination of
employment if these occurrences are earlier), but are subject to termination or
forfeiture as per Paragraphs 2 and 3 of the Agreement:

	
  Number of Shares

  	
   

  	
  Date Exercisable

  	
   

  	
  Expiration Date

  
	
  (*)

  	
   

  	
  (*)

  	
   

  	
  (*)

  
	
  (*)

  	
   

  	
  (*)

  	
   

  	
  (*)

  
	
  (*)

  	
   

  	
  (*)

  	
   

  	
  (*)

  

 

Questions regarding the
stock option program 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

  	
   

  	
   

  

 

Enclosures:

Stock Option Q&A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]