Document:

EXHIBIT 10.1

                             STOCKHOLDERS' AGREEMENT

                     STOCKHOLDERS' AGREEMENT (this "Agreement"), dated November
22, 1995, by and among Leonard A. Lauder ("LAL"), Ronald S. Lauder ("RSL"),
William P. Lauder ("WPL"), Gary M. Lauder ("GML"), Aerin Lauder ("AL"), Jane
Lauder ("JL"), LAL Family Partners L.P., Lauder & Sons L.P., a Delaware limited
partnership, and the trustees of the various trusts set forth on the signature
pages hereof (hereinafter referred to, together with each other Family Member
(as defined below) that hereafter acquires Shares (as defined below), as the
"Stockholders"), and THE ESTEE LAUDER COMPANIES INC., a corporation organized
under the laws of the State of Delaware (the "Corporation").

                              W I T N E S S E T H :

                     WHEREAS, the Stockholders collectively own (a) 42,531,618
shares of the Corporation's outstanding Class A Common Stock, par value $.01 per
share (the "Class A Common Stock"), and (b) 56,839,667 shares of the
Corporation's outstanding Class B Common Stock, par value $.01 per share (the
"Class B Common Stock" and, together with the Class A Common Stock, the
"Shares"); and

                     WHEREAS, the Stockholders and the Corporation are agreed
that it would be in the best interests of each Stockholder and the Corporation
to assure the continued management of the Corporation by restricting the
privilege of ownership of the common stock of the Corporation and, except as
hereinafter provided, to provide each of the Stockholders with the opportunity
to acquire additional Shares pursuant to the provisions hereof; and

                     WHEREAS, the Stockholders and the Corporation desire to
terminate the Amended and Restated Shareholder Agreement, dated June 2, 1994, as
amended on June 29, 1995 (the "Old Shareholder Agreement"), among Mrs. Estee
Lauder, LAL, RSL, WPL, GML, the trustees of the various trusts set forth on the
signature pages thereof, and the Corporation, and replace such agreement in its
entirety with this Agreement.

                     NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein contained, the parties hereto agree as follows:

                     Article 1.Restriction on Transfer. Each of the Stockholders
hereby agrees that he, she or it shall not sell, assign, give, bequeath,
transfer, distribute, pledge, hypothecate or otherwise encumber or dispose of
(collectively, "Transfer") any Shares owned by him, her or it (whether now owned
or hereafter acquired) except as otherwise provided by this Agreement. Any
attempted or purported Transfer of any Shares by any Stockholder in violation or
contravention of the terms of this Agreement shall be void. The Corporation
shall, and shall instruct its transfer agent to, reject and refuse to transfer
on its books any Shares which may have been Transferred in violation or
contravention of any of the provisions of this Agreement, and shall not
recognize any person or persons, estates, executors, administrators, firms,
associations or corporations holding such shares as a stockholder, and such

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person shall not have any rights as a stockholder. No dividend shall be paid on,
nor any distribution made on, any Shares Transferred in breach of this
Agreement.

                     Article 2.Permitted Transfers. The Stockholders shall be
permitted to Transfer Shares as provided in Article 3 hereof and, in addition,
as follows:

                     2.1. Public Sales and Certain Gifts, Bequests and
Distributions. Any Stockholder may Transfer shares of Class A Common Stock
pursuant to a widely distributed public offering of such shares registered under
the Securities Act of 1933, as amended (the "Securities Act"), or pursuant to
Rule 144 (including subsection (k) thereof) (or any successor rule or regulation
to Rule 144) under the Securities Act, without regard to the limitations imposed
by this Agreement. In addition, any Stockholder may Transfer to persons who are
not Family Members (as defined below) shares of Class A Common Stock by gift,
bequest or, in the case of Stockholders who are the trustees of a Family
Controlled Trust (as defined below) or the executors of the estate of a Lauder
Descendant (as defined below), by distribution from such Family Controlled Trust
or such estate to one or more beneficiaries thereof who are not Family Members
without regard to the limitations imposed by this Agreement; provided, however,
that the amount of shares of Class A Common Stock so Transferred by any one
Stockholder to all such transferees in a 90-day period may not exceed 1% of the
outstanding Shares. When two or more Stockholders act in concert for the purpose
of making gifts or distributions of shares of Class A Common Stock to a person
who is not a Family Member (including his, her or its affiliates), such shares
shall be aggregated for the purposes of the limitation in the immediately
preceding sentence. For purposes of this Section 2.1, the trustees of a Family
Controlled Trust in their capacity as trustees of such Family Controlled Trust
shall be deemed to be a single Stockholder and the executors of the estate of a
Lauder Descendant in their capacity as executors of such estate shall be deemed
a single stockholder.

                     2.2. Intra-Family Transfers. Any Stockholder may Transfer
Shares to one or more Family Members without regard to the limitations imposed
by this Agreement; provided, however, that, as a condition to such Transfer, any
Family Member to whom the Shares are Transferred that is not a party to this
Agreement executes and delivers to the Corporation an undertaking in
substantially the form attached hereto as Exhibit A.

                     2.3. Pledges to Institutions. Any Stockholder may grant a
lien or security interest in, pledge, hypothecate or encumber (collectively, a
"Pledge") any Shares beneficially owned by him, her or it to a nationally or
internationally recognized financial or lending institution with assets of not
less than $10,000,000,000 (an "Institution"); provided, however, that the
Institution must agree in writing at or prior to the time such Pledge is made
that (i) no Transfer of Shares in connection with a foreclosure, forfeiture or
similar proceeding arising from the operation of such Pledge shall be made
except as provided in the immediately following sentence and (ii) if such
Institution itself should acquire ownership of Shares in connection with a
foreclosure, forfeiture or similar proceeding arising from the operation of such
Pledge, it will thereafter Transfer such Shares only in a manner that a

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Stockholder would be permitted to do pursuant to Section 2.1, 2.2 or 2.4 hereof.
An Institution that has been granted a Pledge of Shares may Transfer Shares in
connection with a foreclosure, forfeiture or similar proceeding arising from the
operation of such Pledge (a) to such Institution, (b) in a manner a Stockholder
would be permitted to do pursuant to Section 2.1, 2.2 or 2.4 hereof or (c) in
any other public or private sale so long as (i) the Stockholders are given at
least 45 days prior written notice of the time and place initially fixed for
such sale (which may be adjourned from time to time to any such time and place
as is announced at the time and place theretofore fixed for such sale) and (ii)
each Stockholder is entitled to bid to purchase such Shares at such sale subject
only to whatever limitations and conditions of general applicability are
generally established by such Institution in connection with such sale
(including, without limitation, limitations and conditions to assure compliance
with the Securities Act of 1933, as amended) (a "Foreclosure Sale"). Shares
Pledged to an Institution that are acquired by it in connection with a
foreclosure, forfeiture or similar proceeding arising from a Pledge of such
Shares may be transferred to the parent corporation of such institution or any
affiliated entity controlled by its parent corporation without regard to the
limitations imposed by this Agreement so long as the transferee agrees to be
bound by the provisions of this Agreement to the same extent such Institution is
bound.

                     2.4. Right of First Offer. (a) Any Stockholder (the
"Offering Stockholder") may Transfer any Shares to any person other than a
Family Member provided such Offering Stockholder first offers the Shares to be
Transferred (the "Offered Shares") to all Family Members who are then parties to
this Agreement as provided below (the "Right of First Offer").

                     (b) In order to offer any Offered Shares, the Offering
Stockholder shall give written notice (an "Offer Notice") of the proposed
Transfer to all Family Members who then are parties to this Agreement setting
forth, in reasonable detail, the Offering Stockholder's intent to make such
proposed Transfer, the number or amount of Offered Shares, the proposed date of
consummation of such Transfer (if known), the proposed purchase price per Share
(including, if known, the amount of cash or other property or consideration to
be received upon the consummation of the sale) (the "Offered Price Per Share"),
any proposed sales commission or advisory fees, and any other material terms and
conditions of the proposed Transfer to the extent then known. If the Transfer is
not for value, such as in the case of a gift, bequest or distribution, the
Offered Price Per Share shall equal the closing sales price per share of the
shares of Class A Common Stock on the last trading day prior to the date the
Offer Notice is sent.

                     (c) Each Family Member who is a party to this Agreement
shall then have the irrevocable right, exercisable within thirty (30) days after
the Offer Notice is given in accordance with Section 8.2 (the "Notice Period"),
to purchase such portion of the Offered Shares as the number of Shares owned by
such Family Member bears to the total number of Shares owned by all such Family
Members (excluding Shares owned by the Offering Stockholder), at a price per
Share equal to the Offered Price Per Share and on the payment terms specified in
the Offer Notice; provided, however, that the Offered Price Per Share for the
Offered Shares shall be reduced by the difference (if positive) between (i) the

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per Share amount of proposed sales commissions and advisory fees specified in
the Offer Notice and (ii) the per Share amount of any placement, investment
advisory or other similar fees (in the aggregate amount not to exceed 1% of the
gross purchase price for the Offered Shares) payable by the Offering Stockholder
in respect of the sale of the Offered Shares to Family Members. Each Family
Member who is a party to this Agreement may exercise his, her or its Right of
First Offer by delivering to the Offering Stockholder notice of such exercise
(an "Exercise Notice") within the Notice Period. If any Family Member wishes to
purchase less than all of his, her or its proportionate share of the Offered
Shares, he, she or it shall specify the amount of Offered Shares he, she or it
wishes to purchase in the Exercise Notice. Any Offered Shares that Family
Members shall have not elected to purchase during the Notice Period shall be
reoffered thereafter to all Family Members who have elected to purchase the full
amount of Shares offered to them. Such reoffer shall remain open for ten (10)
days commencing on the date on which written notice of such reoffer is given in
accordance with Section 8.2. Each such Family Member shall notify the Offering
Stockholder in writing within such ten (10) day period of the number of such
reoffered Offered Shares such Family Member desires to purchase (such Family
Member's "Designated Shares") and shall be entitled to purchase that number of
such reoffered Offered Shares equal to the lesser of (x) such Family Member's
Designated Shares and (y) the total number of such reoffered Offered Shares
multiplied by a fraction the numerator of which is such Family Member's
Designated Shares and the denominator of which is the aggregate Designated
Shares of all Family Members.

                     (d) The closing of the purchase and sale of the Offered
Shares shall occur on a date (not later than sixty (60) days after the date on
which the Exercise Notice is given or such later date as is the earliest date on
which the purchase may be completed in compliance with all applicable laws), and
at a time and place provided for in the Offer Notice.

                     (e) If any Offered Shares are not to be so purchased by
Family Members exercising their rights during such thirty (30) day and/or ten
(10) day periods, as the case may be, then, for a period of sixty (60) days
commencing on the day after the last day of such ten (10) day period or, if
there is no reoffer, the last day of such thirty (30) day period (the "Third
Party Sale Period"), the Offering Stockholder shall be entitled to Transfer such
Shares to one or more third parties for a gross price (or, in the case of a
Block Sale (as defined below), a price net of any sales commissions and advisory
fees) which is at least 95% of the Offered Price Per Share, and otherwise on
terms substantially similar to those described in the Offer Notice; provided,
however, that any Transfer of Shares proposed to be made by such Offering
Stockholder after the Third Party Sale Period or for a price per Share below the
price per Share specified in this sentence shall again be subject to the
provisions of this Article 2. The Offering Stockholder shall promptly notify the
Family Members who are parties to this Agreement of the sale (including the
final sale price) of any such Offered Shares to any third party during the Third
Party Sale Period. As used in this Agreement, a "Block Sale" means any sale,
transfer or other disposition, directly or indirectly, in a single transaction
or a series of transactions, of Offered Shares in any Third Party Sale Period in
which beneficial ownership of 80% or more of the aggregate amount of such

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Offered Shares is acquired by one or two groups of two or more persons who are
(i) "affiliates" (as such term is defined in Rule 12b-2 under the Exchange Act)
of each other or one another or (ii) "associates" (as such term is defined in
Rule 12b-2 under the Exchange Act) of each other or one another or (iii) members
of a group within the meaning of Section 13(d) of the Exchange Act.

                     (f) Any Pledge of Shares beneficially owned by a
Stockholder to an Institution shall not give the Family Members any right to
acquire such Shares pursuant to this Section 2.4. However, any proposed Transfer
of such Shares in connection with a foreclosure, forfeiture or similar
proceeding arising from the operation of any Pledge (other than a Transfer (a)
to the Institution to which such Pledge has been granted, (b) pursuant to
Section 2.1 or 2.2 hereof or (c) pursuant to a Foreclosure Sale) shall
constitute a Transfer subject to the provisions of this Section 2.4.

                     2.5. Family Members. For purposes of this Agreement, the
following terms shall have the following meanings:

                      (a) "Family Member" or "Family Members" shall mean the
           following persons: (i) Mrs. Estee Lauder and her estate, guardian,
           conservator or committee; (ii) each descendant of Mrs. Estee Lauder
           (a "Lauder Descendant") and their respective estates, guardians,
           conservators or committees; (iii) each Family Controlled Entity; and
           (iv) the trustees, in their respective capacities as such, of each
           Family Controlled Trust.

                      (b) "Family Controlled Entity" shall mean the following
           entities: (i) any not-for-profit corporation if at least 80% of its
           board of directors is composed of Mrs. Estee Lauder and/or Lauder
           Descendants; (ii) any other corporation if at least 80% of the value
           of its outstanding equity is owned by Family Members; (iii) any
           partnership if at least 80% of the value of its partnership interests
           are owned by Family Members; and (iv) any limited liability or
           similar company if at least 80% of the value of the company is owned
           by Family Members.

                      (c) "Family Controlled Trust" shall mean the following
           trusts: (i) the trusts set forth on Schedule A hereto and (ii) any
           trust the primary beneficiaries of which are Mrs. Estee Lauder,
           Lauder Descendants, Spouses of Lauder Descendants and/or charitable
           organizations (collectively, "Lauder Beneficiaries"), provided, that,
           if the trust is a wholly charitable trust, at least 80% of the
           trustees of such trust consist of Mrs. Estee Lauder and/or Lauder
           Descendants. For purposes of this provision, the primary
           beneficiaries of a trust will be deemed to be Lauder Beneficiaries
           if, under the maximum exercise of discretion by the trustee in favor
           of persons who are not Lauder Beneficiaries, the value of the
           interests of such persons in such trust, computed actuarially, is 20%
           or less. The factors and methods prescribed in section 7520 of the
           Internal Revenue Code of 1986, as amended, for use in ascertaining
           the value of certain interests shall be used in determining a
           beneficiary's actuarial interest in a trust for purposes of applying
           this provision. For purposes of this provision, the actuarial value

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           of the interest in a trust of any person in whose favor a
           testamentary power of appointment may be exercised shall be deemed to
           be zero. For purposes of this provision, in the case of a trust
           created by a Lauder Descendant, the actuarial value of the interest
           in such trust of any person who may receive trust property only at
           the termination of the trust and then only in the event that, at the
           termination of the trust, there are no living issue of such Lauder
           Descendant shall be deemed to be zero.

                      (d) "Spouses of Lauder Descendants" shall mean those
           individuals who at any time were married to any Lauder Descendant
           whether or not such marriage is subsequently dissolved by death,
           divorce, or by any other means.

                     Article 3. Transfer Upon Involuntary Transfer. If Shares of
a Stockholder are Transferred by operation of law to any person other than a
Lauder Family Member, including without limitation, the trustee in bankruptcy of
a Stockholder or a purchaser at any creditor's or judicial sale (but not
including (a) any Transfer pursuant to the penultimate sentence of Section 2.3
hereof, (b) any Transfer to the guardian, conservator or committee of an
incompetent Stockholder or (c) any Transfer in a bankruptcy of Shares that are
pledged to an Institution), or if any Stockholder holding Shares ceases to be a
Family Member, then, in each case, such Stockholder shall be deemed to have
offered all of his, her or its Shares to all Family Members who are parties to
this Agreement in the manner described in Section 2.4 hereof, except that the
period of time in which the Family Members have the option to purchase such
Shares shall be from the date of receipt by the Corporation of notice of such
involuntary Transfer or such Stockholder ceasing to be a Family Member, as the
case may be, and the Offered Price Per Share shall equal the closing sales price
per share of the shares of Class A Common Stock on the last trading day prior to
such date. The Corporation shall notify the appropriate Stockholders of the
occurrence of such involuntary Transfer or Stockholder ceasing to be a Family
Member as soon as practicable after it is notified of the same.

                     Article 4. Board of Directors. (a) Each of the Stockholders
(or his, her or its representative) shall vote his, her or its Shares for the
election of LAL, RSL and a designee of each as directors of the Corporation;
provided, however, that in the event that either LAL (including descendants of
LAL) or RSL (including descendants of RSL), as the case may be, directly or
indirectly beneficially owns (other than by reason of this Agreement) Shares
representing less than 10% but at least 5% of the total voting power of the
Corporation, the Stockholders shall not be required to vote their Shares for the
election of LAL's or RSL's designee, as the case may be; and, provided further,
that in the event that either LAL (including descendants of LAL) or RSL
(including descendants of RSL), as the case may be, directly or indirectly
beneficially owns (other than by reason of this Agreement) Shares representing
less than 5% of the total voting power of the Corporation, the Stockholders
shall not be required to vote their Shares for the election of either LAL and
his designee or RSL and his designee, as the case may be.

                     (b) In the event that the designee of LAL or RSL ceases to
be a member of the Board of Directors by virtue of resignation, removal, death
or disability, then the Stockholder who designated such person, so long as he

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has the right to designate a nominee, shall designate another person to fill
that vacancy.

                     (c) In the event that LAL shall cease to be a member of the
Board of Directors by virtue of his death or disability, then WPL and GML shall
succeed to LAL's rights under this Article 4. If both WPL and GML are serving as
directors, GML shall be considered LAL's nominee. If either WPL or GML are
unable to serve by reason of death or disability, the other will have the right
to designate a nominee.

                     (d) In the event that RSL shall cease to be a member of the
Board of Directors by virtue of his death or disability, then AL and JL shall
succeed to RSL's rights under this Article 4. If both AL and JL are serving as
directors, JL shall be considered RSL's nominee. If either AL or JL are unable
to serve by reason of death or disability, the other will have the right to
designate a nominee.

                     Article 5.Legend on Certificates. All Shares now or
hereafter owned by the Stockholders shall be subject to the provisions of this
Agreement and the certificates representing such Shares shall bear the following
legend:

          THE SALE, ASSIGNMENT, GIFT, BEQUEST, TRANSFER, DISTRIBUTION,
          PLEDGE, HYPOTHECATION, OR OTHER ENCUM

BRANCE OR DISPOSITION OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED BY THE TERMS OF A STOCKHOLDERS' AGREEMENT AMONG CERTAIN MEMBERS OF
THE LAUDER FAMILY, CERTAIN FAMILY CONTROLLED ENTITIES, TRUSTEES OF CERTAIN
FAMILY CONTROLLED TRUSTS AND THE CORPORATION, A COPY OF WHICH MAY BE EXAMINED AT
THE OFFICE OF THE CORPORATION.

                     Article 6.Termination. (a) The rights and obligations under
this Agreement shall terminate automatically with respect to each Stockholder
upon the earliest to occur of (i) the execution of a written instrument to that
effect by the Corporation and each Stockholder who then owns Shares; (ii) the
merger or consolidation of the Corporation with a corporation upon consummation
of which all Stockholders immediately thereafter own in the aggregate less than
10% of the total voting power of the surviving or resulting corporation and
(iii) the sale, disposition or other transfer of Shares by any Stockholder that
causes all Stockholders immediately after such transaction to own in the
aggregate less than 10% of the total voting power of the Corporation.

                     (b) The rights and obligations under Article 4 of this
Agreement shall terminate automatically at such time as (i) LAL, WPL and GML are
unable to serve as directors by reason of death or disability and (ii) RSL, AL
and JL are unable to serve as directors by reason of death or disability.

                     Article 7.Termination of the Old Shareholder Agreement. The
Corporation, Mrs. Estee Lauder, the trustees of the Ronald S. Lauder 1992
Grantor Trust and the Stockholders (other than AL and JL) constitute all the
parties to the Old Shareholder Agreement. The Corporation, Mrs. Lauder, the

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trustees of the Ronald S. Lauder 1992 Grantor Trust and the Stockholders hereby
agree that upon the execution and delivery of this Agreement, the Amended and
Restated Shareholder Agreement shall be terminated immediately and shall be of
no further force or effect.

                     Article 8.General Provisions

                     8.1. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.

                     8.2. Notices. Any notices and other communications given
pursuant to this Agreement shall be in writing and shall be effective upon
delivery by hand or on the fifth day after deposit in the mail if sent by
certified or registered mail (postage prepaid and return receipt requested) or
on the next business day if sent by a nationally recognized overnight courier
service (appropriately marked for overnight delivery) or upon transmission if
sent by facsimile (with request for immediate confirmation of receipt in a
manner customary for communications of such type and with physical delivery of
the communication being made by one of the other means specified in this Section
8.2 as promptly as practicable thereafter). Notices are to be addressed as
follows:

                               (i)   If to the Company:

                                     The Estee Lauder Companies Inc.
                                     767 Fifth Avenue
                                     New York, New York  10153
                                     Attention:  President
                                     Telecopy:  (212) 572-6745

                                     With a copy to:

                                     The Estee Lauder Companies Inc.
                                     767 Fifth Avenue
                                     New York, New York  10153
                                     Attention:  Secretary
                                     Telecopy:  (212) 572-3989

                                               and

                                     Weil, Gotshal & Manges
                                     767 Fifth Avenue
                                     New York, New York 10153
                                     Attention: Jeffrey J. Weinberg, Esq.
                                     Telecopy: (212) 310-8007

                               (ii)  If to a Stockholder, then as set forth in
                                     the second column of Schedule B hereto with
                                     a copy to the person or persons listed in
                                     the third column of Schedule B hereto.

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All notices to a party hereto shall be deemed to have been duly given for all
purposes of this Agreement if given to such party (with a copy to such person or
persons as specified) in accordance with the first sentence of this Section 8.2
at (a) until notice is given pursuant to this Section 8.2 of a different
address, the address provided above or, in the case of any Family Member that
hereafter becomes a Stockholder, the address specified in the undertaking
delivered pursuant to section 2.2, or (b) after notice has been given pursuant
to this Section 8.2 of a different address, the address specified in such
notice. No notices hereunder shall be required to be given to any Family Member
that hereafter becomes a Stockholder until notice of such Family Member becoming
a Stockholder (including a copy of such Family Member's undertaking given
pursuant to Section 2.2) is given to the Corporation and to each Stockholder
(with a copy to such person or persons as specified) pursuant to this Section
8.2.

                     8.3. Headings. The headings of the various Articles and
Sections of this Agreement have been inserted for convenience only and shall not
be deemed to be part of this Agreement.

                     8.4. Binding Effect. This Agreement will be binding upon
and inure to the benefit of the Corporation, its successors and assigns and to
the Stockholders and their respective heirs, personal representatives,
successors and assigns.

                     8.5. No Oral Change. This Agreement may not be changed
orally, but only by an agreement in writing as signed by the party against whom
enforcement of any waiver, change, modification or discharge is sought.

                     8.6. Entire Understanding. This Agreement sets forth the
entire agreement and understanding of the parties hereto in respect of the
subject matter hereof and the transactions contemplated hereby and supersedes
all prior written and oral agreements, arrangements and understandings relating
to the subject matter hereof.

                     8.7. Remedies. (a) The parties acknowledge that money
damages are not an adequate remedy for violations of this Agreement and that any
party may, in such party's sole discretion, apply to any court of competent
jurisdiction for specific performance or injunctive or such other relief as such
court may deem just and proper in order to enforce this Agreement or prevent any
violation hereof and, to the extent permitted by applicable law, each party
waives any objection to the imposition of such relief.

                     (b) All rights, powers and remedies provided under this
Agreement or otherwise available in respect hereof at law or in equity shall be
cumulative and not alternative, and the exercise or beginning of the exercise of
any thereof by any party shall not preclude the simultaneous or later exercise
of any other such right, power or remedy by such party.

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                     8.8. Trustees' Capacity. With respect to obligations of
trustees who are parties hereto in their capacity as trustees of one or more
trusts, this Agreement shall be binding upon such trustees only in their
capacities as trustees, not individually and not with respect to any Shares
other than Shares held by them in their capacity as trustees of such trusts.

                     8.9. Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original, but all
of which together shall constitute one instrument. Each counterpart may consist
of a number of copies each signed by less than all, but together signed by all,
the parties hereto.

                     8.10. Application of Agreement to After-Acquired Shares.
All the provisions of this Agreement shall apply to all of the Shares of the
Corporation owned by a person at the time he, she or it is or becomes a party
hereto or which may be issued or transferred hereafter to a Stockholder in
consequence of any additional issuance, purchase, exchange or reclassification
of shares, corporate reorganization, or any other form of recapitalization, or
consolidation, or merger, or share split, or share dividend, or which are
acquired by a Stockholder in any other manner.

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                     IN WITNESS WHEREOF, the parties hereto have duly executed
and delivered this Agreement as of the date first above written.

                                            THE ESTEE LAUDER COMPANIES INC.

                                            By: /s/ Leonard A. Lauder
                                                --------------------------------
                                            Name: Leonard A. Lauder
                                            Title: Chairman and
                                                   Chief Executive Officer

                                            /s/ Leonard A. Lauder
                                            ------------------------------------
                                            Leonard A. Lauder, (a) individually,
                                            (b) as Managing Partner of LAL
                                            Family Partners L.P., (c) as Trustee
                                            of The Estee Lauder 1994 Trust, (d)
                                            as a Class B General Partner of
                                            Lauder & Sons L.P. and (e) as
                                            Trustee of The 1995 Estee Lauder LAL
                                            Trust (a Class B General Partner of
                                            Lauder & Sons L.P.)

                                            /s/ Ronald S. Lauder
                                            ------------------------------------
                                            Ronald S. Lauder, (a) individually,
                                            (b) as Trustee of The Descendents of
                                            RSL 1966 Trust, (c) as Trustee of
                                            The Estee Lauder 1994 Trust, (d) as
                                            a Class B General Partner of Lauder
                                            & Sons L.P. and (e) as Trustee of
                                            The 1995 Estee Lauder RSL Trust (a
                                            Class B General Partner of Lauder &
                                            Sons L.P.)

                                            /s/ William P. Lauder
                                            ------------------------------------
                                            William P. Lauder, (a) individually
                                            and (b) as Trustee of the 1992
                                            Leonard A. Lauder Grantor Retained
                                            Annuity Trust

                                            Gary M. Lauder, by
                                            Theodore A. King, Attorney-in-fact
                                            ------------------------------------
                                            Gary M. Lauder, (a) individually and
                                            (b) as Trustee of the 1992 Leonard
                                            A. Lauder Grantor Retained Annuity
                                            Trust

                                            /s/ Aerin Lauder
                                            ------------------------------------
                                            Aerin Lauder

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                                            /s/ Jane Lauder
                                            ------------------------------------
                                            Jane Lauder

                                            /s/ Joel S. Ehrenkranz
                                            ------------------------------------
                                            Joel S. Ehrenkranz, (a) as Trustee
                                            of the 1992 Leonard A. Lauder
                                            Grantor Retained Annuity Trust, (b)
                                            as Trustee of the Trust f/b/o Gary
                                            M. Lauder and William P. Lauder
                                            u/a/d December 15, 1976, created by
                                            Leonard Lauder, as Grantor and (c)
                                            as Trustee of The 1995 Estee Lauder
                                            LAL Trust (a Class B General Partner
                                            of Lauder & Sons L.P.)

                                            /s/ Carol S. Boulanger
                                            ------------------------------------
                                            Carol S. Boulanger, as Trustee of
                                            the Trust f/b/o Gary M. Lauder and
                                            William P. Lauder u/a/d December 15,
                                            1976, created by Leonard Lauder, as
                                            Grantor

                                            /s/ Richard D. Parsons
                                            ------------------------------------
                                            Richard D. Parsons, (a) as Trustee
                                            of the Trust f/b/o Aerin Lauder and
                                            Jane Lauder u/a/d December 15, 1976,
                                            created by Estee Lauder and Joseph
                                            H. Lauder, as Grantors, (b) as
                                            Trustee of the Trust f/b/o Aerin
                                            Lauder and Jane Lauder u/a/d
                                            December 15, 1976, created by Ronald
                                            S. Lauder, as Grantor and (c) as
                                            Trustee of The 1995 Estee Lauder RSL
                                            Trust (a Class B General Partner of
                                            Lauder & Sons L.P.)

                                            /s/ Ira T. Wender
                                            ------------------------------------
                                            Ira T. Wender, (a) as Trustee of The
                                            Estee Lauder 1994 Trust, (b) as
                                            Trustee of The 1995 Estee Lauder LAL
                                            Trust (a Class B General Partner of
                                            Lauder & Sons L.P.) and (c) as
                                            Trustee of The 1995 Estee Lauder RSL
                                            Trust (a Class B General Partner of
                                            Lauder & Sons L.P.)

                                            Agreed and accepted solely as to
                                            Article 7 hereof:

                                            /s/ Ronald S. Lauder
                                            ------------------------------------
                                            Estee Lauder, by Ronald S. Lauder as
                                            attorney-in-fact

                                       12

<PAGE>

                                            /s/ Ronald S. Lauder
                                            ------------------------------------
                                            Ronald S. Lauder, as Trustee of the
                                            Ronald S. Lauder 1992 Grantor Trust

                                            /s/ Leonard A. Lauder
                                            ------------------------------------
                                            Leonard A. Lauder, as Trustee of the
                                            Ronald S. Lauder 1992 Grantor Trust

                                            Morgan Guaranty Trust Company of New
                                            York, as Trustee of The Ronald S.
                                            Lauder 1992 Grantor Trust

                                            By: /s/
                                                --------------------------------
                                                Name:
                                                Title: As its Vice President

                                       13

<PAGE>

                                                                      Schedule A

                        Certain Family Controlled Trusts

           1. Descendants of Leonard Lauder 1966 Trust u/a/d June 14, 1966,
between Estee Lauder, as Settlor, and Leonard A. Lauder, as Trustee, for the
benefit of the descendants of Leonard A. Lauder.

           2. Descendants of Ronald Lauder 1966 Trust u/a/d June 14, 1966,
between Estee Lauder, as Settlor and Ronald S. Lauder, as Trustee, for the
benefit of the descendants of Ronald S. Lauder.

           3. Trust u/a/d December 15, 1976, between Estee Lauder and Joseph H.
Lauder, as Grantors, and Leonard A. Lauder, as Trustee, for the benefit of Gary
Lauder and William Lauder.

           4. Trust u/a/d December 15, 1976, between Estee Lauder and Joseph H.
Lauder, as Grantors, and Ronald S. Lauder, as Trustee, for the benefit of Aerin
Lauder and Jane Lauder.

           5. Trust u/a/d December 15, 1976, between Leonard A. Lauder, as
Grantor, and Leonard A. Lauder and Ronald S. Lauder, as Trustees, for the
benefit of Gary Lauder and William Lauder.

           6. Trust u/a/d December 15, 1976, between Ronald S. Lauder, as
Grantor, and Ronald S. Lauder and Leonard A. Lauder, as Trustees, for the
benefit of Aerin Lauder and Jane Lauder.

           7. Trust u/a/d August 13, 1982, between Estee Lauder and Joseph H.
Lauder, as Grantors, and Leonard A. Lauder, as Trustee, for the benefit of Gary
Lauder and William Lauder.

           8. Leonard A. Lauder Generation-Skipping Securities Trust u/a/d
December 23, 1992, between Leonard A. Lauder, as Grantor, and Joel S.
Ehrenkranz, as Trustee.

           9. Leonard A. Lauder Grantor Retained Annuity Trust u/a/d November
30, 1992, between Leonard A. Lauder, as Grantor, and Joel S. Ehrenkranz, as
Trustee.

           10. Gary Lauder 1994 Family Trust u/a/d as of December 16, 1994,
between Gary Lauder, as Settlor, and Leonard A. Lauder and Laura Lauder, as
Trustees.

           11. William Lauder 1994 Family Trust u/a/d as of December 14, 1994,
between William Lauder, as Settlor, and Leonard A. Lauder and Karen Lauder, as
Trustees.

                                       14

<PAGE>

           12. Trust u/a/d June 2, 1994, as amended, between Estee Lauder, as
Grantor, and Leonard A. Lauder, Ronald S. Lauder and Ira T. Wender, as Trustees.

                                       15

<PAGE>

                                                                      Schedule B

                                  STOCKHOLDERS

<TABLE>
<CAPTION>

Name of Stockholder                                   Notice Address                            Copies to
-------------------                                   --------------                            ---------
<S>                                         <C>                                    <C>
Leonard A. Lauder                           767 Fifth Avenue                       Weil, Gotshal & Manges
                                            New York, New York  10153              767 Fifth Avenue
                                            Telecopy:  (212) 572-6745              New York, NY  10153
                                                                                   Attn: Jeffrey J. Weinberg, Esq.
                                            Telecopy:  (212) 310-8007

Ronald S. Lauder                            767 Fifth Avenue                       Debevoise & Plimpton
                                            New York, New York  10153              875 Third Avenue
                                            Telecopy:  (212) 572-4046              New York, New York  10022
                                                                                   Attn:  Alan H. Paley, Esq.
                                                                                   Telecopy:  (212) 909-6836

                                                                                   Morgan Guaranty Trust
                                                                                   Company of New York, as
                                                                                   pledgee of
                                                                                   Ronald S. Lauder
                                                                                   9 West 57th Street
                                                                                   8th Floor
                                                                                   New York, NY 10019
                                                                                   Attn:  Ms. Willa Baynard
                                                                                   Telecopy:  (212) 980-6850

                                                                                   Davis Polk & Wardwell
                                                                                   450 Lexington Avenue
                                                                                   New York, NY 10017
                                                                                   Attn:  John Fouhey, Esq.
                                                                                   Telecopy:  (212) 450-4800

Trustees of The Estee Lauder 1994           Leonard A. Lauder                      Cravath, Swaine & Moore
Trust                                       767 Fifth Avenue                       825 Eighth Avenue
                                            New York, New York  10153              New York, NY  10019
                                            Telecopy:  (212) 572-6745              Attn:  Daniel L. Mosley, Esq.
                                                                                   Telecopy:  (212) 474-3700

                                            Ronald S. Lauder
                                            767 Fifth Avenue
                                            New York, New York  10153
                                            Telecopy:  (212) 572-4046

                                            Ira T. Wender, Esq.
                                            Patterson, Belknap, Webb & Tyler
                                            1133 Avenue of the Americas
                                            New York, New York  10036
                                            Telecopy:  (212) 336-2222
</TABLE>

                                       16

<PAGE>

<TABLE>
<CAPTION>
Name of Stockholder                                  Notice Address                             Copies to
-------------------                                  --------------                             ---------

<S>                                        <C>                                     <C>
William P. Lauder                          767 Fifth Avenue                        Debevoise & Plimpton
                                           New York, NY  10153                     875 Third Avenue
                                           Telecopy:  (212) 572-6967               New York, NY  10022
                                                                                   Attn:  Theodore A. Kurz, Esq.
                                                                                   Telecopy: (212) 909-6836

Gary M. Lauder                             88 Mercedes Lane                        Debevoise & Plimpton
                                           Atherton, CA  94027                     875 Third Avenue
                                           Telecopy:  (415) 323-2171               New York, NY  10022
                                                                                   Attn:  Theodore A. Kurz, Esq.
                                                                                   Telecopy: (212) 909-6836

Aerin Lauder                               203 East 72nd Street                    Judah Gribetz, Esq.
                                           New York, NY  10021                     180 Maiden Lane
                                           Telecopy:  None                         New York, NY  10038
                                                                                   Telecopy:  (212) 248-2655

Jane Lauder                                2609 California Street                  Judah Gribetz, Esq.
                                           San Francisco, CA 94115                 180 Maiden Lane
                                           Telecopy:  [to be supplied]             New York, NY  10038
                                                                                   Telecopy:  (212) 248-2655

LAL Family Partners L.P.                   c/o Leonard A. Lauder                   Boulanger, Hicks & Churchill
                                           767 Fifth Avenue                        135 East 57th Street
                                           New York, NY  10153                     New York, NY 10022
                                           Telecopy:  (212) 572-6745               Attn:  Carol S. Boulanger, Esq.
                                                                                   Telecopy:  (212) 753-6971

Trustees of the Trust f/b/o Gary M.        Joel S. Ehrenkranz                      Debevoise & Plimpton
Lauder and William P. Lauder u/a/d         375 Park Avenue                         875 Third Avenue
December 15, 1976, created by Leonard      New York, NY  10152                     New York, NY  10022
Lauder, as Grantor                         Telecopy:  (212) 754-1905               Attn:  Theodore A. Kurz, Esq.
                                                                                   Telecopy:  (212) 909-6836

                                           Carol S. Boulanger
                                           135 East 57th Street
                                           New York, NY 10022
                                           Attn:  Carol Boulanger
                                           Telecopy:  (212) 753-6971

Trustee of the Trust f/b/o Aerin           Richard D. Parsons                      Patterson, Belknap, Webb & Tyler
Lauder and Jane Lauder u/a/d December      75 Rockefeller Plaza                    1133 Avenue of the Americas
15, 1976, created by Estee Lauder and      New York, NY 10019                      New York, NY  10036
Joseph H. Lauder, as Grantors              Telecopy: (212) 275-3085                Attn: Christopher Angell, Esq.
                                                                                   Telecopy: (212) 336-2222

Trustee of the Trust f/b/o Aerin           Richard D. Parsons                      Patterson, Belknap, Webb & Tyler
Lauder and Jane Lauder u/a/d December      75 Rockefeller Plaza                    1133 Avenue of the Americas
15, 1976, created by Ronald S.             New York, NY 10019                      New York, NY 10036
Lauder, as Grantor                         Telecopy: (212) 275-3085                Attn: Christopher Angell, Esq.
</TABLE>

                                       17

<PAGE>

<TABLE>
<CAPTION>
Name of Stockholder                                  Notice Address                             Copies to
-------------------                                  --------------                             ---------
<S>                                        <C>                                     <C>
                                                                                   Telecopy: (212) 336-2222
Trustees of the 1992 Leonard A.            William P. Lauder                       Boulanger, Hicks & Churchill
Lauder Grantor Retained Annuity Trust      767 Fifth Avenue                        135 East 57th Street
                                           New York, NY  10153                     New York, NY 10022
                                           Telecopy:  (212) 572-6967               Attn:  Carol S. Boulanger, Esq.
                                                                                   Telecopy:  (212) 753-6971

                                           Gary M. Lauder
                                           88 Mercedes Lane
                                           Atherton, CA  94027
                                           Telecopy:  (415) 323-2171

                                           Joel S. Ehrenkranz
                                           375 Park Avenue
                                           New York, NY  10152
                                           Telecopy:  (212) 754-1905

Trustee of The Descendants of RSL          Ronald S. Lauder                        Debevoise & Plimpton
1966 Trust                                 767 Fifth Avenue                        875 Third Avenue
                                           New York, New York  10153               New York, New York  10022
                                           Telecopy:  (212) 572-4046               Attn:  Alan H. Paley, Esq.
                                                                                   Telecopy:  (212) 909-6836

Lauder & Sons L.P.                         Leonard A. Lauder                       Weil, Gotshal & Manges
                                           767 Fifth Avenue                        767 Fifth Avenue
                                           New York, NY 10153                      New York, NY 10153
                                           Telecopy: (212) 572-6745                Attn: Jeffrey J. Weinberg, Esq.
                                                                                   Telecopy: (212) 310-8577

                                           Ronald S. Lauder
                                           767 Fifth Avenue                        Debevoise & Plimpton
                                           New York, NY  10153                     875 Third Avenue
                                           Telecopy: (212) 572-4046                New York, NY 10022
                                                                                   Attn: Alan H. Paley, Esq.
                                           Joel S. Ehrenkranz                      Telecopy: (212) 909-6836
                                           375 Park Avenue
                                           New York, NY  10152                     Patterson, Belknap, Webb & Tyler
                                           Telecopy: (212) 754-1905                1133 Avenue of the Americas
                                                                                   New York, NY 10036

                                           Richard D. Parsons                      Attn: Christopher Angell, Esq.
                                           75 Rockefeller Plaza                    Telecopy: (212) 336-2222
                                           New York, NY  10019
                                           Telecopy: (212) 275-3085                Cravath, Swaine & Moore
                                                                                   825 Eighth Avenue

                                           Ira T. Wender, Esq.                     New York, NY  10019
                                           Patterson, Belknap, Webb & Tyler        Attn:  Daniel L. Mosley, Esq.
                                           1133 Avenue of the Americas             Telecopy:  (212) 474-3700
                                           New York, New York  10036
                                           Telecopy:  (212) 336-2222
</TABLE>

                                       18

<PAGE>

                                                                       Exhibit A

                                     [DATE]

The Estee Lauder Companies Inc.
767 Fifth Avenue
New York, New York  10153

Ladies and Gentlemen:

                     Reference is made to that certain Stockholders' Agreement
(the "Agreement"), dated [o], 1995, by and among Leonard A. Lauder, Ronald S.
Lauder, William P. Lauder, Gary M. Lauder, Aerin Lauder, Jane Lauder, LAL Family
Partners, L.P., Lauder & Sons L.P., the trustees of the various trusts set forth
on Schedule A thereto, and The Estee Lauder Companies Inc. Capitalized terms
used herein shall have the meanings ascribed to them in the Agreement.

                     Pursuant to Section 2.2 of the Agreement, the undersigned
hereby agrees that as a condition to the Transfer of Shares to the undersigned,
the undersigned shall be bound by all of the terms of the Agreement, as amended
through the date hereof, to the same extent as a Stockholder, and the
undersigned shall hereafter be a Stockholder under the Agreement. Set forth
[below][on the attached schedule] are the names and addresses for notices and
copies which should be added to Schedule B to the Agreement.

                                          Very truly yours,

                                          ---------------------------
                                          [NAME]

                                       19EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

                  Registration Rights Agreement, dated November 22, 1995 (this
"Agreement"), by and between The Estee Lauder Companies Inc., a Delaware
corporation (the "Company"), Leonard A. Lauder ("LAL"), Ronald S. Lauder
("RSL"), William P. Lauder ("WPL"), Gary M. Lauder ("GML"), Aerin Lauder, Jane
Lauder, LAL Family Partners L.P., Lauder & Sons L.P., a Delaware limited
partnership, LAL, RSL and Ira T. Wender, as trustees (the "EL Trustees"), u/a/d
as of June 2, 1994, as amended, between Estee Lauder, as settlor, and the EL
Trustees, and known as "The Estee Lauder 1994 Trust Agreement" (the "EL Trust"),
LAL and Joel S. Ehrenkranz, as trustees (the "LAL Trustees"), u/a/d as of
November 16, 1995, between Estee Lauder, as settlor, and the LAL Trustees, and
known as the "The LAL 1995 Preferred Stock Trust" (the "LAL Trust"), the
trustees of the various other trusts set forth on the signature pages hereof and
Morgan Guaranty Trust Company of New York in its capacity as pledgee of RSL
("Morgan").

                              W I T N E S S E T H:

                  WHEREAS, the Company and the other parties hereto wish to
agree upon the manner in which the Company shall provide registration rights to
such other parties for their Registrable Class A Common Stock (as defined below)
after consummation of an initial public offering in the United States and abroad
(collectively, the "Offerings") of the Company's Class A Common Stock, par value
$.01 per share (the "Class A Common Stock"), and Registrable Preferred Stock (as
defined below); and

                  WHEREAS, the Company and the EL Trust have entered into that
certain Preferred Stock Registration Rights Agreement (as defined below) which
currently provides registration rights to the EL Trust for its Registrable
Preferred Stock; and

                  WHEREAS, the Company and the EL Trust desire to terminate the
Preferred Stock Registration Rights Agreement upon the consummation of the
Offerings and replace such agreement in its entirety with this Agreement.

                  NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants herein contained, the parties hereto hereby agree as follows:

                  1. DEFINITIONS. As used in this Agreement, the following
capitalized terms shall have the following meanings:

                  BUSINESS DAY: any day on which commercial banks are open for
          business in New York, New York.

                  COMMON STOCK DEMAND HOLDER: each of the EL Trust, LAL and RSL
          (or, if applicable, their respective assigns) and Morgan.

                  Common Stock Demand Registration:  see Section 3(a) hereof.

<PAGE>

                  Common Stock Requesting Holder:  see Section (3)(a) hereof.

                  DEMAND REGISTRATION: a Preferred Stock Demand Registration or
a Common Stock Demand Registration, as the case may be.

                  EXCHANGE ACT: the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

                  EXCHANGE AGREEMENT: that certain Exchange Agreement, dated as
of June 29, 1995, between the Company and the EL Trust.

                  HOLDERS:  the persons or entities set forth on Schedule A.

                  PARTICIPATING HOLDER:  see Section 4(a) hereof.

                  PERSON: an individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof or other entity.

                  PIGGYBACK REGISTRATION:  see Section 4(a) hereof.

                  PREFERRED STOCK: the Company's $6.50 cumulative redeemable
preferred stock, par value $0.01 per share, issued by the Company to the EL
Trust in exchange for certain shares of the Company's Class B Non voting Common
Stock, no par value per share, pursuant to the Exchange Agreement.

                  PREFERRED STOCK DEMAND EXERCISE PERIOD: the period, if any,
beginning on the date hereof and ending on the date Mrs. Lauder dies; PROVIDED,
HOWEVER, that if Mrs. Lauder is alive on June 30, 2000, then the Preferred Stock
Demand Exercise Period for the EL Trust shall end on June 30, 2000.

                  Preferred Stock Demand Registration:  see Section 2(a) hereof.

                  PREFERRED STOCK REGISTRATION RIGHTS AGREEMENT: that certain
Registration Rights Agreement, dated as of June 30, 1995, between the Company
and the EL Trust.

                  Preferred Stock Requesting Holder:  see Section 2(a) hereof.

                  PROSPECTUS: the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus.

                  REGISTRABLE CLASS A COMMON STOCK: the Class A Common Stock
held by each Holder (or, if the Holder is Morgan or an EL Trust Pledgee, all or
part of the Registrable Class A Common Stock then pledged to, or owned as a
result of foreclosure thereon by, such Holder), and any securities of the
Company that may be issued or distributed with respect to, or in exchange for,
such Class A Common Stock (or other

                                       2
<PAGE>

Registrable Class A Common Stock that can be traced directly or indirectly to
such Class A Common Stock), pursuant to a stock dividend or distribution, stock
split, merger, consolidation, reorganization, recapitalization,
reclassification, conversion right or otherwise, including without limitation,
shares of Class A Common Stock issued or issuable upon conversion of shares of
Class B Common Stock, par value $.01 per share, of the Company.

                  REGISTRABLE PREFERRED STOCK: the Preferred Stock held by
either the EL Trust or the LAL Trust and any Preferred Stock pledged to, or
owned as a result of foreclosure thereon by, an EL Trust Pledgee and any
securities of the Company that may be issued or distributed with respect to, or
in exchange for, such Preferred Stock (or other Registrable Preferred Stock that
can be traced directly or indirectly to such Preferred Stock), pursuant to a
stock dividend or distribution, stock split, merger, consolidation,
reorganization, recapitalization, reclassification, conversion right or
otherwise.

                  REGISTRABLE SECURITIES: the Registrable Preferred Stock and
the Registrable Class A Common Stock.

                  REGISTRATION STATEMENT: any registration statement of the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Agreement, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits and
all material incorporated by reference in such Registration Statement.

                  REQUESTING HOLDER: a Common Stock Requesting Holder or a
Preferred Stock Requesting Holder, as the case may be.

                  SEC:  the Securities and Exchange Commission.

                  SECURITIES ACT: the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

                  UNDERWRITTEN REGISTRATION or UNDERWRITTEN OFFERING: a
registration in which securities of the Company are sold to an underwriter for
reoffering to the public.

                  2. PREFERRED STOCK DEMAND REGISTRATION.

                  (a) Except as provided herein, during the Preferred Stock
Demand Exercise Period, the EL Trust, the LAL Trust or, subject to Section 2(b),
an EL Trust Pledgee (the "Preferred Stock Requesting Holder") may make a written
request to the Company for registration under the Securities Act of all or part
of the Registrable Preferred Stock it then owns (or, if the Preferred Stock
Requesting Holder is an EL Trust Pledgee, all or part of the Registrable
Preferred Stock then pledged to, or owned as a result of foreclosure thereon by,
such Preferred Stock Requesting Holder) (a "Preferred Stock Demand
Registration"); PROVIDED, HOWEVER, that the Company shall not be obligated to
register any Registrable Preferred Stock if the aggregate value (as determined
in good faith by the Company's Board of Directors) of the Registrable Preferred
Stock subject to the request of the Preferred Stock Requesting Holder is less

                                       3
<PAGE>

than $50 million. Any such request by the Preferred Stock Requesting Holder
shall specify the aggregate amount of Registrable Preferred Stock to be
registered and also shall specify the intended method of disposition thereof.
Within ten Business Days after receipt of such registration request, the Company
shall commence the preparation of the registration of the specified number of
shares of Registrable Preferred Stock; PROVIDED, HOWEVER, that the Company may,
upon written notice to the Preferred Stock Requesting Holder given within such
ten Business Day period, delay such commencement for a reasonable period of
time, but not for more than 90 calendar days from the Company's receipt of the
request for such Preferred Stock Demand Registration, (x) as is necessary to
prepare audited financial statements of the Company for its most recently
completed fiscal year or other audited financial statements reasonably required
in the Registration Statement or (y) if the Company would be required to
disclose in such Registration Statement the existence of any fact relating to a
proposed acquisition, financing or other material corporate development not
otherwise required to be disclosed and the Board of Directors of the Company
shall have in good faith determined that such disclosure would be materially
adverse to the Company. Such notice of delay shall explain, in reasonable
detail, the reasons for such delay. If the Company shall so delay commencement
of the preparation of such Preferred Stock Demand Registration, the Preferred
Stock Requesting Holder may, within 30 calendar days after receipt of the notice
of delay, notify the Company that it is withdrawing its request for registration
and such Preferred Stock Demand Registration shall be deemed to be withdrawn and
such request shall be deemed not to have been exercised for purposes hereof. In
addition, if the Preferred Stock Requesting Holder so notifies the Company of
its determination to withdraw its request for registration and, within the 60
calendar days immediately following the end of the 90-day deferral period, makes
a written request to the Company for registration of Registrable Preferred Stock
that was subject to the registration withdrawn pursuant to the preceding
sentence, the Company shall have no right to defer such registration pursuant to
this Section 2(a).

                  (b) Except as provided by Section 2(d) below and subject to
the hold-back restrictions set forth in Section 5 hereof, the EL Trust shall be
entitled to six Preferred Stock Demand Registrations (three of which may only be
used by a pledgee of the EL Trust (an "EL Trust Pledgee") assigned such rights
by the EL Trust hereunder) and the LAL Trust shall be entitled to one Preferred
Stock Demand Registration; PROVIDED, HOWEVER, that only one Preferred Stock
Demand Registration may be requested by a Preferred Stock Requesting Holder in
any three-month period; PROVIDED FURTHER, HOWEVER, that an EL Trust Pledgee may
only request a Preferred Stock Demand Registration after a default by the EL
Trust in respect of its obligations to the EL Trust Pledgee secured by
Registrable Preferred Stock.

                  (c) The offering of the Registrable Preferred Stock sought to
be registered pursuant to any such Preferred Stock Demand Registration shall be
in the form of an Underwritten Offering if requested by the Preferred Stock
Requesting Holder. If the managing underwriter or underwriters unanimously
determine in good faith that the total number of shares of Registrable Preferred
Stock proposed to be included in such offering is such as to materially
adversely affect the success of such offering, then the

                                       4
<PAGE>

number of shares of Registrable Preferred Stock shall be reduced or limited to
the number that, in the reasonable opinion of such managing underwriter or
underwriters, can be sold without materially adversely affecting the success of
such offering.

                  (d) If (i) more than one-third of the Preferred Stock
Requesting Holder's Registrable Preferred Stock sought to be registered in the
Preferred Stock Demand Registration is not included in such registration
pursuant to Section 2(c) hereof, (ii) a Preferred Stock Demand Registration is
delayed pursuant to Section 2(a) hereof and the Registration Statement filed
following such delay does not become effective within 120 days following the 90
days referred to in Section 2(a) hereof, (iii) a Preferred Stock Demand
Registration is not delayed pursuant to Section 2(a) hereof and the Registration
Statement filed in respect of such Preferred Stock Demand Registration does not
for any reason become effective within 120 days after such demand for
registration hereunder, (iv) such Registration Statement, after it has become
effective, is interfered with by any stop order, injunction or other order or
requirement of the SEC or other governmental agency or court by reason of an act
or omission by the Company or any of its subsidiaries or (v) the conditions to
closing specified in the purchase agreement or underwriting agreement entered
into in connection with such registration are not satisfied because of an act or
omission by the Company or any of its subsidiaries (other than by reason of
facts or circumstances not within the control of the Company or any such
subsidiary), then in each such case such Preferred Stock Demand Registration
shall not be counted for purposes of calculating the number of demand rights
exercised by the EL Trust, the EL Trust Pledgee or the LAL Trust, as the case
may be, in Section 2(b) hereof.

                  (e) Nothing in this Section 2 or in Section 4 hereof shall
create any right in the EL Trust, the LAL Trust or an EL Trust Pledgee to
require the Company to register any securities other than the Registrable
Preferred Stock and in the case of Section 4 hereof, Registrable Class A Common
Stock, under the Securities Act.

                  3. COMMON STOCK DEMAND REGISTRATION.

                  (a) Except as provided herein, following the consummation of
the Offerings, any Common Stock Demand Holder (a "Common Stock Requesting
Holder") may make a written request to the Company for registration under the
Securities Act of all or part of the Registrable Class A Common Stock he, she or
it then owns (or, if the Common Stock Demand Holder is Morgan or an EL Trust
Pledgee, all or part of the Registrable Class A Common Stock then pledged to, or
owned as a result of foreclosure thereon by, such Common Stock Demand Holder) (a
"Common Stock Demand Registration"); PROVIDED, HOWEVER, that the Company shall
not be obligated to register any Registrable Class A Common Stock if the
aggregate value (as determined in good faith by the Company's Board of
Directors) of the Registrable Class A Common Stock subject to the Common Stock
Requesting Holder's request is less than $50 million. Any such request by a
Common Stock Requesting Holder shall specify the aggregate amount of Registrable
Class A Common Stock to be registered and also shall specify the intended method
of disposition thereof. Within ten Business Days after receipt of such
registration request, the Company shall commence the preparation of the
registration of the specified number of shares of Registrable Class A Common
Stock; PROVIDED, HOWEVER, that the

                                       5
<PAGE>

Company may, upon written notice to the Common Stock Requesting Holder given
within such ten Business Day period, delay such commencement for a reasonable
period of time, but not for more than 90 calendar days from the Company's
receipt of the request for such Common Stock Demand Registration, (x) as is
necessary to prepare audited financial statements of the Company for its most
recently completed fiscal year or other audited financial statements reasonably
required in the Registration Statement or (y) if the Company would be required
to disclose in such Registration Statement the existence of any fact relating to
a proposed acquisition, financing or other material corporate development not
otherwise required to be disclosed and the Board of Directors of the Company
shall have in good faith determined that such disclosure would be materially
adverse to the Company. Such notice of delay shall explain, in reasonable
detail, the reasons for such delay. If the Company shall so delay commencement
of the preparation of such Common Stock Demand Registration, the Common Stock
Requesting Holder may, within 30 calendar days after receipt of the notice of
delay, notify the Company that it is withdrawing its request for registration
and such Common Stock Demand Registration shall be deemed to be withdrawn and
such request shall be deemed not to have been exercised for purposes hereof. In
addition, if the Common Stock Requesting Holder so notifies the Company of his,
her or its determination to withdraw its request for registration and, within
the 60 calendar days immediately following the end of the 90-day deferral
period, makes a written request to the Company for registration of Registrable
Class A Common Stock that was subject to the registration withdrawn pursuant to
the preceding sentence, the Company shall have no right to defer such
registration pursuant to this Section 3(a).

                  (b) Except as provided by Section 3(d) below and subject to
the hold-back restrictions set forth in Section 5 hereof, the EL Trust shall be
entitled to six Common Stock Demand Registrations (three of which may only be
used by one or more EL Trust Pledgees assigned such rights by the EL Trust
hereunder) and LAL, RSL and Morgan shall be entitled to three Common Stock
Demand Registrations each; PROVIDED, HOWEVER, that the Company shall not be
required to comply with this Section 3(b) more than once in any 12 calendar
month period; PROVIDED FURTHER, HOWEVER, that an EL Trust Pledgee may only
request a Common Stock Demand Registration after a default by the EL Trust in
respect of its obligations to the EL Trust Pledgee secured by Registrable Class
A Common Stock and Morgan may only request a Common Stock Demand Registration
after a default by RSL in respect of his obligations to Morgan secured by
Registrable Class A Common Stock.

                  (c) The offering of the Registrable Class A Common Stock
sought to be registered pursuant to any such Common Stock Demand Registration
shall be in the form of an Underwritten Offering if requested by the Common
Stock Requesting Holder. If the managing underwriter or underwriters unanimously
determine in good faith that the total number of shares of Registrable Class A
Common Stock proposed to be included in such offering is such as to materially
adversely affect the success of such offering, then the number of shares of
Registrable Class A Common Stock shall be reduced or limited to the number that,
in the reasonable opinion of such managing underwriter or underwriters, can be
sold without materially adversely affecting the success of such offering.

                                       6
<PAGE>

                  (d) If (i) more than one-third of any Common Stock Requesting
Holder's Registrable Class A Common Stock sought to be registered in the Common
Stock Demand Registration is not included in such registration pursuant to
Section 3(c), (ii) a Common Stock Demand Registration is delayed pursuant to
Section 3(a) hereof and does not become effective within 120 days following the
90 days referred to in Section 3(a) hereof, (iii) a Common Stock Demand
Registration is not delayed pursuant to Section 3(a) hereof and the Registration
Statement filed in respect of such Common Stock Demand Registration does not for
any reason become effective within 120 days after such Common Stock Requesting
Holder's demand for registration hereunder, (iv) such Registration Statement,
after it has become effective, is interfered with by any stop order, injunction
or other order or requirement of the SEC or other governmental agency or court
by reason of an act or omission by the Company or any of its subsidiaries or (v)
the conditions to closing specified in the purchase agreement or underwriting
agreement entered into in connection with such registration are not satisfied
because of an act or omission by the Company or any of its subsidiaries (other
than by reason of facts or circumstances not within the control of the Company
or any such subsidiary), then in each such case such Common Stock Demand
Registration shall not be counted for purposes of calculating the number of
demand rights exercised by such Common Stock Requesting Holder in Section 3(b).

                  (e) Nothing in this Section 3 or in Section 4 hereof shall
create any right in the EL Trust, LAL, RSL, an EL Trust Pledgee or Morgan to
require the Company to register any securities other than the Registrable Class
A Common Stock under the Securities Act.

                  4. PIGGYBACK REGISTRATION.

                  (a) If the Company at any time proposes to issue and register
shares of its equity securities on its own behalf or to register equity
securities on behalf of any holder of its equity securities under the Securities
Act (other than a registration effected solely to implement an employee benefit
plan, a transaction to which Rule 145 promulgated under the Securities Act is
applicable or a transaction eligible to be registered on Form S-4 or any
successor form), the Company shall give written notice each such time to each
Holder of its intention to do so (which notice shall include the anticipated
filing date of the Registration Statement and the number of its equity
securities proposed to be included in the Registration Statement). Upon the
written request of any Common Stock Demand Holder or any other Holder (a
"Participating Holder") given within 15 Business Days after receipt of any such
notice by such Participating Holder (stating the number of Registrable
Securities to be disposed by such Participating Holder (or, if the Participating
Holder is Morgan or an EL Trust Pledgee, the number of Registrable Securities
then pledged to such Participating Holder and to be disposed by the pledgor of
such Registrable Securities or owned by such Participating Holder as a result of
foreclosure thereon and to be disposed by such Participating Holder) and the
intended method of disposition), the Company shall include the Registrable
Securities intended to be disposed of in a Registration Statement under the
Securities Act so as to permit disposition (in accordance with the reasonable
methods in such request) by such Participating Holder (a "Piggyback
Registration").

                                       7
<PAGE>

                  (b) Notwithstanding any provision of this Section 4, if the
registration of which the Company gives notice pursuant to Section 4(a) is for
an Underwritten Offering and the managing underwriter or underwriters determine
in good faith that the total number of Registrable Securities proposed to be
included in such offering is such as to materially adversely affect the success
of such offering, then priority for inclusion shall be (1) first to any
Requesting Holder exercising demand registration rights, (2) second to the
Company for securities being sold for its own account, and (3) third to those
Participating Holders exercising piggyback registration rights; PROVIDED,
HOWEVER, that the amount of securities of any Participating Holder and such
other holders (other than a Requesting Holder exercising demand registration
rights) shall be reduced or limited PRO RATA among such Participating Holders
and such other holders in proportion to the amount (by value) of securities
sought to be registered by each, to the extent necessary to reduce the total
amount of Registrable Securities to be included in such offering to the amount
that, in the reasonable opinion of such managing underwriter or underwriters,
can be sold without materially adversely affecting the success of such offering;
and PROVIDED FURTHER, HOWEVER, that if it is necessary for the EL Trust to
participate in the Underwritten Offering for the purpose of raising cash to pay
for estate and inheritance taxes, the EL Trust's participation in the
Underwritten Offering shall not be reduced or limited to the extent that the
trustees of the EL Trust certify that the proceeds from the sale of Registrable
Securities included in the applicable registration are used to pay estate,
inheritance and succession taxes, and all generation-skipping transfer taxes
imposed on any direct skip as defined in Section 2612(c) of the Internal Revenue
Code of 1986, as amended (but not including any generation-skipping transfer
taxes imposed on any direct skip resulting from a disclaimer or exercise of a
power of appointment), including all interest in respect of any such taxes,
payable by reason of the death of Mrs. Estee Lauder ("Mrs. Lauder") in respect
of any property whether or not passing under her will (collectively, "Death
Taxes") and all funeral expenses, debts (incurred for the purposes of
administering the estate or the payment of taxes) and expenses of administering
the estate of Mrs. Lauder (collectively, "Administration Expenses"); PROVIDED
FURTHER, HOWEVER, that if such proceeds will not be so used, then the EL Trust's
participation may be reduced or limited as provided herein first in respect of
the Registrable Class A Common Stock and thereafter in respect of the
Registrable Preferred Stock.

                  (c) If any Participating Holder elects not to participate in
any underwriting in which it had previously requested the registration described
in Section 4(a), the Participating Holder may elect to withdraw therefrom by
delivering written notice to the Company and the managing underwriter or
underwriters, if any, at least 30 days prior to the planned effective date of
such Piggyback Registration.

                  (d) Notwithstanding anything to the contrary contained herein
(i) an EL Trust Pledgee may only participate in a Piggyback Registration after a
default by the EL Trust in respect of its obligations to the EL Trust Pledgee
secured by Registrable Securities and (ii) Morgan may only participate in a
Piggyback Registration after a default by RSL in respect of his obligations to
Morgan secured by Registrable Securities.

                                       8
<PAGE>

                  5. HOLD-BACK AGREEMENTS; PRESS RELEASES.

                  (a) If any of the Registrable Securities beneficially owned by
any Requesting Holder or Participating Holder (or, if the Requesting Holder or
Participating Holder, as the case may be, is Morgan or an EL Trust Pledgee, all
or part of the Registrable Class A Common Stock then pledged to, or owned as a
result of foreclosure thereon by, such Requesting Holder or Participating
Holder) are covered by a Registration Statement filed pursuant to Section 2, 3
or 4 hereof, such Requesting Holder or Participating Holder agrees not to effect
any public sale or distribution of Registrable Securities of the Company,
including a sale pursuant to Rule 144 under the Securities Act (except as part
of such Underwritten Registration), during the 30 calendar day period prior to,
and during the 180 calendar day period beginning on, the closing date of each
Underwritten Offering made pursuant to such Registration Statement, unless the
managing underwriter or underwriters agree in writing to waive or shorten any
such period for all sellers of the Company's securities. This provision shall
not apply to the Requesting Holder or Participating Holder if there is a public
sale or distribution of Registrable Securities prior to expiration of such
holding period or if such Requesting Holder or Participating Holder is prevented
by applicable statute or regulation from entering into any such agreement;
PROVIDED, HOWEVER, that the Requesting Holder or Participating Holder shall
undertake, in its request to participate in any such Underwritten Offering, not
to effect any public sale or distribution of Registrable Securities commencing
on the date of such offering unless it has provided 180 calendar days prior
written notice of such sale or distribution to the managing underwriter or
underwriters (or such fewer number of days as then remains in the 180-day period
commencing on the closing date of such offering). The Company agrees to be bound
by the foregoing hold-back agreement and to cause each person to which it grants
registration rights to be so bound to the same extent as the Requesting Holder
or Participating Holder.

                  (b) Before any Requesting Holder or Participating Holder shall
disseminate or announce publicly any information concerning a proposed offering
pursuant to Section 2, 3 or 4 hereof that is intended for or may result in
public knowledge thereof, such holder shall so advise the Company and shall not
disseminate or announce publicly such information without the Company's consent,
unless such information is otherwise publicly available or the dissemination
thereof is required by applicable law.

                  (c) Notwithstanding anything to the contrary contained herein,
the parties hereto agree not to exercise any registration rights provided herein
without the prior written consent of Goldman, Sachs & Co. until 185 days after
the date of the prospectus used in connection with the Offerings.

                  6. REGISTRATION PROCEDURES. In connection with the Company's
Demand Registration and Piggyback Registration obligations pursuant to Sections
2, 3 and 4 hereof, the Company will use its reasonable efforts to effect such
Demand Registration or Piggyback Registration to permit the sale of Registrable

                                       9
<PAGE>

Securities in accordance with the intended method or methods of distribution
thereof, and pursuant thereto the Company will:

                           (a) prepare and file with the SEC, as soon as
                  practicable after receipt of the registration request referred
                  to in Section 2, 3 or 4 hereof, and use its best efforts to
                  have declared effective, a Registration Statement relating to
                  the Demand Registration or Piggyback Registration on any
                  appropriate form under the Securities Act, which form shall be
                  available for the sale of the Registrable Securities in
                  accordance with the intended method or methods of distribution
                  thereof and shall include all financial statements required by
                  the SEC to be filed therewith, and cooperate and assist in any
                  filings required to be made with any national stock exchange
                  or national computerized market system on which the
                  Registrable Securities sought to be registered are to be
                  listed or quoted; PROVIDED, HOWEVER, that, before filing a
                  Registration Statement or Prospectus or any amendments or
                  supplements thereto, the Company shall furnish to each
                  Requesting Holder and Participating Holder and the managing
                  underwriter or underwriters, if any, copies of all such
                  documents proposed to be filed, which documents shall be
                  subject to the reasonable review of such Holder and the
                  managing underwriter or underwriters, if any, and the Company
                  shall not file any Registration Statement or amendment thereto
                  or any Prospectus or any supplement thereto to which the
                  managing underwriter or underwriters, if any, or such Holders
                  shall reasonably object in writing;

                           (b) cause the Prospectus to be supplemented by any
                  required Prospectus supplement, and as so supplemented to be
                  filed pursuant to Rule 424 under the Securities Act and comply
                  with the provisions of the Securities Act with respect to the
                  disposition of all the Registrable Securities covered by such
                  Registration Statement during the applicable period in
                  accordance with the intended method or methods of distribution
                  by the Requesting Holder or Participating Holder set forth in
                  such Registration Statement or supplement to the Prospectus;
                  PROVIDED, HOWEVER, that any actions taken by the Company in
                  good faith and for valid business reasons, including, without
                  limitation, the acquisition or divestiture of assets, shall
                  not violate the foregoing so long as the Company promptly
                  thereafter complies with the requirements of Section 6(k)
                  hereof, if applicable;

                           (c) notify each Requesting Holder and Participating
                  Holder and the managing underwriter or underwriters, if any,
                  and (if requested by any such Person) confirm such notice in
                  writing: (1) when the Registration Statement or any amendment
                  thereto or the Prospectus or any Prospectus supplement or
                  post-effective amendment has been filed, and, with respect to
                  the Registration Statement or any post-effective amendment,
                  when the same has become effective, and to furnish each such
                  Holder and underwriter with copies thereof, (2) of any request
                  by the SEC for amendments or supplements to the Registration
                  Statement or the

                                       10
<PAGE>

                  Prospectus or for additional information, (3) of the issuance
                  by the SEC of any stop order or similar order suspending the
                  effectiveness of the Registration Statement or the use of any
                  preliminary Prospectus or Prospectus or the initiation or
                  threatening of any proceedings for that purpose, (4) if at any
                  time the representations and warranties of the Company
                  contemplated by Section 6(l) below cease to be true and
                  correct, (5) of the receipt by the Company of any notification
                  with respect to the suspension of the qualification of the
                  Registrable Securities for offering or sale in any
                  jurisdiction or the initiation or threatening of any
                  proceeding for such purpose and (6) of the happening of any
                  event that makes any statement made in the Registration
                  Statement, the Prospectus or any document incorporated therein
                  by reference untrue or that requires the making of any changes
                  in the Registration Statement, the Prospectus or any document
                  incorporated therein by reference in order to make the
                  statements therein not misleading;

                           (d) make every reasonable effort to obtain the
                  withdrawal of any stop order or other order suspending the
                  effectiveness of the Registration Statement or the use of any
                  preliminary Prospectus or Prospectus, at the earliest possible
                  moment;

                           (e) if requested by any Requesting Holder or
                  Participating Holder or the managing underwriter or
                  underwriters, if any, incorporate in a Prospectus supplement
                  or post-effective amendment such information as such Holder or
                  the managing underwriter or underwriters, if any, reasonably
                  agree should be included therein relating to the plan of
                  distribution with respect to the Registrable Securities; and
                  make all required filings of such Prospectus supplement or
                  post-effective amendment as soon as notified of the matters to
                  be incorporated in such Prospectus supplement or
                  post-effective amendment; PROVIDED, HOWEVER, that the Company
                  shall not be required to take any actions in this Section 6(e)
                  that will not, in the written opinion of counsel for the
                  Company delivered to each Requesting Holder and Participating
                  Holder, in compliance with applicable law;

                           (f) furnish to each Requesting Holder and
                  Participating Holder and each managing underwriter or
                  underwriters, if any, without charge, at least one executed
                  copy and as many conformed copies as they may reasonably
                  request of the Registration Statement and any post-effective
                  amendments thereto, including financial statements and
                  schedules, all documents incorporated therein by reference and
                  all exhibits (including those incorporated by reference);

                           (g) deliver to each Requesting Holder and
                  Participating Holder and the managing underwriter or
                  underwriters, if any, without charge, as many copies of the
                  Prospectus (including each preliminary prospectus) and any
                  amendment or supplement thereto as such Persons may

                                       11
<PAGE>

                  reasonably request; it being understood and agreed that the
                  Company consents to the use of the Prospectus or any amendment
                  or supplement thereto by each such Holder and the managing
                  underwriter or underwriters, if any, in connection with the
                  offering and sale of the Registrable Securities covered by the
                  Prospectus or any amendment or supplement thereto;

                           (h) prior to any public offering of Registrable
                  Securities covered by a Registration Statement, use its best
                  efforts to register or qualify, and cooperate with each
                  Requesting Holder and Participating Holder, the managing
                  underwriter or underwriters, if any, and respective counsel in
                  connection with the registration or qualification of, such
                  Registrable Securities for offer and sale under the securities
                  or blue sky laws of such jurisdictions as each such Holder or
                  underwriter reasonably requests in writing and do any and all
                  other acts or things necessary or advisable to enable the
                  disposition in such jurisdictions of the Registrable
                  Securities covered by the Registration Statement; PROVIDED,
                  HOWEVER, that the Company shall not be required: (1) to
                  qualify generally to do business in any jurisdiction where it
                  is not then so qualified or (2) to take any action that would
                  subject it to general service of process in any such
                  jurisdiction where it is not then so subject or subject the
                  Company to any tax in any such jurisdiction where it is not
                  then so subject;

                           (i) (1) cooperate with each Requesting Holder and
                  Participating Holder and the managing underwriter or
                  underwriters, if any, to facilitate the timely preparation and
                  delivery of certificates representing the Registrable
                  Securities covered by a Registration Statement to be sold; and
                  (2) enable the Registrable Securities covered by a
                  Registration Statement to be in such denominations and
                  registered in such names as the managing underwriter or
                  underwriters may request at least two Business Days prior to
                  any sale of such Registrable Securities to the underwriters;

                           (j) use its best efforts to cause the Registrable
                  Securities covered by the applicable Registration Statement to
                  be registered with or approved by such other governmental
                  agencies or authorities as may be necessary to enable each
                  Requesting Holder and Participating Holder or the managing
                  underwriter or underwriters, if any, to consummate the
                  disposition of such Registrable Securities; PROVIDED, HOWEVER,
                  that the Company shall not be required to register the
                  Registrable Securities covered by a Registration Statement in
                  any jurisdiction where such registration would subject the
                  Company to general service of process where it is not then so
                  subject, or subject the Company to any tax in any such
                  jurisdiction where it is not then so subject;

                           (k) upon the occurrence of any event contemplated by
                  clause (6) of Section 6(c) above, prepare a supplement or
                  post-effective amendment to the Registration Statement or the
                  related Prospectus or any

                                       12
<PAGE>

                  document incorporated therein by reference or file any other
                  required document so that, as thereafter delivered to the
                  purchasers of the Registrable Securities covered by a
                  Registration Statement, the Prospectus will not contain an
                  untrue statement of a material fact or omit to state any
                  material fact necessary to make the statements therein not
                  misleading;

                           (l) enter into such customary agreements (including
                  an underwriting agreement) on terms reasonably acceptable to
                  the Company and use its best efforts to take all such other
                  actions in order to facilitate the disposition of the
                  Registrable Securities covered by the Registration Statement
                  and in such connection, whether or not an underwriting
                  agreement is entered into and whether or not the registration
                  is an underwritten registration: (1) make such representations
                  and warranties to each Requesting Holder and Participating
                  Holder and the managing underwriter or underwriters, if any,
                  in form, substance and scope, as are customarily made by
                  issuers to underwriters in similar underwritten offerings; (2)
                  obtain opinions of counsel to the Company and updates thereof
                  (which counsel and opinions (in form, scope and substance)
                  shall be reasonably satisfactory to the managing underwriter
                  or underwriters, if any, and not objected to by any Requesting
                  Holder or Participating Holder) addressed to each Requesting
                  Holder and Participating Holder and the managing underwriter
                  or underwriters, if any, covering the matters customarily
                  covered in opinions requested in underwritten offerings and
                  such other matters as may be reasonably requested by any such
                  Holder and the underwriters; (3) obtain "cold comfort" letters
                  and updates thereof from the Company's independent certified
                  public accountants addressed to each Requesting Holder and
                  Participating Holder and the managing underwriter or
                  underwriters, if any, such letters to be in customary form and
                  covering matters of the type customarily covered in "cold
                  comfort" letters by accountants in connection with
                  underwritten offerings; (4) if an underwriting agreement is
                  entered into, the same shall set forth certain indemnification
                  provisions and procedures with respect to all parties to be
                  indemnified pursuant thereto, which provisions and procedures
                  shall be normal and customary in the investment banking and/or
                  financial services industry; and (5) deliver such documents
                  and certificates as may be reasonably requested by each
                  Requesting Holder and Participating Holder and the managing
                  underwriter or underwriters, if any, to evidence compliance
                  with Section 6(k) above and with any customary conditions
                  contained in the underwriting agreement or other agreement
                  entered into by the Company. Each of the above shall be done
                  at each closing under such underwriting or similar agreement
                  or as and to the extent required thereunder;

                           (m) otherwise use its best efforts to comply with all
                  applicable rules and regulations of the SEC, and make
                  generally available to holders of Registrable Securities
                  covered by a Registration Statement, earnings statements
                  satisfying the provisions of Section 11(a) of the Securities
                  Act,

                                       13
<PAGE>

                  no later than 45 calendar days after the end of any 12-month
                  period (or 90 calendar days, if such period is a fiscal year):
                  (l) commencing at the end of any fiscal quarter in which the
                  Registrable Securities covered by a Registration Statement is
                  sold to underwriters in a firm or best efforts underwritten
                  offering or (2) if not sold to underwriters in such an
                  offering, beginning with the first month of the Company's
                  first fiscal quarter commencing after the effective date of
                  the Registration Statement, which statements shall cover said
                  12-month periods; and

                           (n) make available for inspection by any Holder of
                  Registrable Securities covered by a Registration Statement
                  (including Morgan or an EL Trust Pledgee if it is a Requesting
                  Holder or Participating Holder in connection therewith), any
                  underwriter participating in any disposition pursuant to such
                  registration statement and any attorney, accountant or other
                  professional retained by any such Holder or underwriter
                  (collectively, the "Inspectors"), all financial and other
                  records, pertinent corporate documents and properties of the
                  Company (collectively, the "Records") as shall be reasonably
                  necessary to enable them to exercise their due diligence
                  responsibility, and cause the Company's officers, directors
                  and employees to supply all information reasonably requested
                  by any Inspectors in connection with such registration
                  statement. Records which the Company determines, in good
                  faith, to be confidential and which it notifies the Inspectors
                  are confidential shall not be disclosed by the Inspectors
                  unless (i) the disclosure of such Records is necessary to
                  avoid or correct a misstatement or omission in such
                  registration statement or (ii) the release of such Records is
                  ordered pursuant to a subpoena or other order from a court of
                  competent jurisdiction. Each such Holder of Registrable
                  Securities covered by a Registration Statement agrees that
                  information obtained by it as a result of such inspections
                  shall be deemed confidential and shall not be used by it as
                  the basis for any market transactions in the securities of the
                  Company or its affiliates unless and until such is made
                  generally available to the public. Each such Holder of
                  Registrable Securities covered by a Registration Statement
                  further agrees that it will, upon learning that disclosure of
                  such Records is sought in a court of competent jurisdiction,
                  give notice to the Company and allow the Company, at its
                  expense, to undertake appropriate action to prevent disclosure
                  of the Records deemed confidential.

                  The Company may require each Requesting Holder and
Participating Holder to furnish to the Company such information regarding the
distribution of the Registrable Securities sought to be registered as the
Company may from time to time reasonably request in writing, and the Company may
exclude from registration the Registrable Securities of any such Holder if it
fails to furnish such information within a reasonable time after receiving such
request.

                  Each Requesting Holder and Participating Holder agrees that,
upon receipt of any notice from the Company of the happening of any event of the
kind described in

                                       14
<PAGE>

clause (3), (5) or (6) of Section 6(c) hereof, such Holder shall forthwith
discontinue disposition of the Registrable Securities until it receives copies
of the supplemented or amended Prospectus contemplated by Section 6(k) hereof,
or until it is advised in writing by the Company that the use of the Prospectus
may be resumed, and has received copies of any additional or supplemental
filings which are incorporated by reference in the Prospectus, and, if so
directed by the Company, each Requesting Holder and Participating Holder will
deliver to the Company all copies, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Registrable Securities at
the time of receipt of such notice.

                  7. REGISTRATION EXPENSES.

                  (a) Except as set forth in Section 7(c) hereof, all expenses
incident to the Company's performance of or compliance with this Agreement
pursuant to any Demand Registration or any Piggyback Registration, including,
without limitation all: (1) registration and filing fees, including National
Association of Securities Dealers' fees and fees and expenses associated with
filings required to be made with a national securities exchange or national
computerized market system, (2) fees and expenses of compliance with state
securities or blue sky laws (including reasonable fees and disbursements of
counsel for underwriters in connection with blue sky qualifications of the
Registrable Securities covered by the Registration Statement and determination
of eligibility for investment under the laws of such jurisdictions designated by
the managing underwriter or underwriters, if any), (3) printing expenses
(including expenses of printing certificates for the Registrable Securities
covered by the Registration Statement in a form eligible for deposit with the
Depositary Trust Company and of printing prospectuses) and the expenses related
to copying any documents or agreements related to such registration, (4) fees
and disbursements of counsel for the Company, of all independent certified
public accountants of the Company (including the expenses of any special audit
and "cold comfort" letters required by or incident to such performance) and of
all underwriters and (5) fees and expenses of other Persons, such as any
transfer agent or registrar, retained by the Company in connection with such
registration shall be borne by the Company, regardless of whether the
Registration Statement becomes effective.

                  (b) The Company shall, under either a Piggyback or Demand
Registration, pay its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit, and the fees and expenses
of any Person (other than legal counsel), including special experts, retained by
the Company, regardless of whether the Registration Statement becomes effective.

                  (c) The Requesting Holder or Participating Holder shall bear
the following expenses in connection with any Demand or Piggyback Registration,
regardless of whether the Registration Statement becomes effective: (1) all
discounts, commissions, or fees of underwriters, selling brokers, dealer
managers, or similar securities industry professionals relating to the
distribution of the Registrable Securities of such Holder, (2) all legal and
accounting fees and expenses of such Holder and (3) all taxes of such Holder.

                                       15
<PAGE>

                  8. INDEMNIFICATION.

                  (a) INDEMNIFICATION BY COMPANY. The Company agrees to
indemnify and hold harmless, to the full extent permitted by law, each
Requesting Holder and Participating Holder, its trustees, beneficiaries,
employees, directors and officers and each Person who controls any such Holder
(within the meaning of Section 15 of the Securities Act) from and against all
losses, claims, damages, liabilities, and reasonable expenses arising out of or
based upon any untrue or alleged untrue statement of a material fact contained
in any Registration Statement, Prospectus or preliminary Prospectus or any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as the same are caused by or contained in any information
furnished to the Company in writing by such Holder specifically for use therein;
PROVIDED, HOWEVER, that the Company shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or expense of such Holder
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in any such preliminary Prospectus if: (1)
such Holder or its agents failed to deliver a copy of the Prospectus to the
Person asserting such loss, claim, damage, liability, or expense after the
Company had furnished such Holder with a sufficient number of copies of the same
and (2) the Prospectus corrected such untrue statement or omission; and PROVIDED
FURTHER that the Company shall not be liable in any such case to the extent that
any such loss, claim, damage, liability, or expense arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission in the Prospectus, if such untrue statement or alleged untrue statement
or omission or alleged omission is corrected in an amendment or supplement to
the Prospectus and such Holder or its agent thereafter fails to deliver such
Prospectus as so amended or supplemented prior to or concurrently with the sale
of the Registrable Securities covered by a Registration Statement to the Person
asserting such loss, claim, damage, liability, or expense after the Company had
furnished such Holder with a sufficient number of copies thereof in a manner and
at a time sufficient to permit delivery of the same. The Company will also
indemnify underwriters, selling brokers, dealer managers, and similar securities
industry professionals participating in the distribution, their officers and
directors, and each Person who controls such Persons (within the meaning of
Section 15 of the Securities Act), as then customary in connection with similar
transactions, if requested, including an exception relating to any information
furnished to the Company in writing by such underwriters, selling brokers,
dealer managers and similar securities industry professionals.

                  (b) INDEMNIFICATION BY HOLDERS. In connection with each Demand
Registration and Piggyback Registration hereunder, each Requesting Holder and
Participating Holder, respectively, shall furnish to the Company in writing such
information as the Company reasonably requests for use in connection with any
Registration Statement or Prospectus, and agrees, severally but not jointly, to
indemnify and hold harmless, to the full extent permitted by law, the Company,
its officers, directors, and employees, and each Person who directly or
indirectly controls the Company (within the meaning of Section 15 of the
Securities Act), from and against any losses, claims, damages, liabilities, and
reasonable expenses resulting from any untrue

                                       16
<PAGE>

statement of a material fact or any omission of a material fact required to be
stated in the Registration Statement or Prospectus or preliminary Prospectus or
necessary to make the statements therein not misleading, to the extent, but only
to the extent, that such untrue statement or omission is contained in such
information so furnished by such Holder to the Company specifically for
inclusion in such Registration Statement or Prospectus. The Company shall be
entitled to receive indemnities from underwriters, selling brokers, dealer
managers, and similar securities industry professionals participating in the
distribution, to the same extent as provided above with respect to information
so furnished in writing by such Persons specifically for inclusion in any
Prospectus or Registration Statement. The amount payable by any Requesting
Holder or Participating Holder with respect to the indemnification set forth in
this subsection (b) in connection with any Demand Registration or Piggyback
Registration shall not exceed the amount of gross proceeds received by such
Requesting Holder or Participating Holder, as the case may be, from the sale of
Registrable Securities sold in the offering made pursuant to such Demand
Registration or Piggyback Registration, as the case may be. If Morgan or an EL
Trust Pledgee has registered any Registrable Securities pursuant to a Demand
Registration or Piggyback Registration at a time when such Registrable
Securities were pledged to Morgan or an EL Trust Pledgee (and not owned by
Morgan or an EL Trust Pledgee as a result of foreclosure thereon), for purposes
of this subsection (b), the "Requesting Holder" or "Participating Holder" with
respect to such Registrable Securities shall be deemed to be RSL and not Morgan
or the EL Trust and not such EL Trust Pledgee, as the case may be.

                  (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. Any Person
entitled to indemnification hereunder shall: (1) give prompt written notice to
the indemnifying party of any written claim with respect to which it seeks
indemnification and (2) permit such indemnifying party to assume the defense of
such claim with counsel reasonably satisfactory to the indemnified party;
PROVIDED, HOWEVER, that any Person entitled to indemnification hereunder shall
have the right to employ separate counsel and to participate in the defense of
such claim, but the fees and expenses of such counsel shall be at the expense of
such Person unless: (x) the indemnifying party has agreed in writing to pay such
fees or expenses, (y) the indemnifying party shall have failed to assume the
defense of such claim and employ counsel reasonably satisfactory to such Person
or (z) in the reasonable judgment of any such Person, based upon written advice
of its counsel, a conflict of interest may exist between such Person and the
indemnifying party with respect to such claims (in which case, if the Person
notifies the indemnifying party in writing that such Person elects to employ
separate counsel at the expense of the indemnifying party, the indemnifying
party shall not have the right to assume the defense of such claim on behalf of
such Person). If such defense is not assumed by the indemnifying party, the
indemnifying party will not be subject to any liability for any settlement made
without its consent (but such consent will not be unreasonably withheld). No
indemnifying party shall, without the written consent of the indemnified party,
effect the settlement of, or consent to the entry of any judgment with respect
to, any claim in respect of which indemnification or contribution may be sought
hereunder unless such settlement or judgment (i) includes an unconditional
release of the indemnified party from all liability arising out of such claim
and (ii) does not include a statement as to or an admission of fault by or on
behalf of the indemnified party. An

                                       17
<PAGE>

indemnifying party who is not entitled to, or elects not to, assume the defense
of a claim will not be obligated to pay the fees and expenses of more than one
counsel (together with appropriate local counsel) for all parties indemnified by
such indemnifying party with respect to such claim, unless in the reasonable
judgment of any indemnified party, based upon written advice of counsel, a
conflict of interest may exist between such indemnified party and any other of
such indemnified parties with respect to such claim, in which event the
indemnifying party shall be obligated to pay the fees and expenses of such
additional counsel or counsels.

                  (d) CONTRIBUTION. If for any reason the indemnification
provided for in the preceding Sections 8(a) and 8(b) is unavailable to an
indemnified party or insufficient to hold it harmless as contemplated by the
preceding Sections 8(a) and 8(b), then the indemnifying party shall contribute
to the amount paid or payable by the indemnified party as a result of such loss,
claim, damage, or liability in such proportion as is appropriate to reflect not
only the relative benefits received by the indemnified party and the
indemnifying party, but also the relative fault of the indemnified party and the
indemnifying party, as well as any other relevant equitable considerations. No
Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

                                       18
<PAGE>

                  9. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS.

                  (a) If any of the Registrable Securities covered by a
Registration Statement is to be sold in an Underwritten Offering, the investment
banker or investment bankers and manager or managers that will administer the
offering will be selected by the Requesting Holder in a Preferred Stock Demand
Registration and by the Company in all other registrations; PROVIDED, HOWEVER,
that in a Common Stock Demand Registration, such selection shall be subject to
the consent of the Requesting Holder, which consent shall not be unreasonably
withheld.

                  (b) No Person may participate in any Underwritten Registration
hereunder unless such Person: (1) agrees to sell such Person's Registrable
Securities on the basis provided in any underwriting arrangements approved by
the Persons entitled hereunder to approve such arrangements, and (2) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements, and other documents required under the terms of such underwriting
arrangements. Nothing in this Section 9 shall be construed to create any
additional rights regarding the registration of Registrable Securities in any
Person otherwise than as set forth herein.

                  10. EFFECTIVENESS AND TERMINATION. The rights and obligations
under this Agreement shall become effective upon consummation of the Offerings
and, except for continuing obligations pursuant to Sections 7 or 8, shall
automatically terminate with respect to each Holder upon the sale or other
disposition by such Holder of all his, her or its Registrable Securities.

                  11. TERMINATION OF PREFERRED STOCK REGISTRATION RIGHTS
AGREEMENT. The Company and the EL Trustees constitute all the parties to the
Preferred Stock Registration Rights Agreement. The Company and the EL Trustees
hereby agree that upon effectiveness of this Agreement, the Preferred Stock
Registration Rights Agreement shall be terminated immediately and shall be of no
further force or effect.

                  12. MISCELLANEOUS.

                  (a) AMENDMENTS AND WAIVERS. This Agreement may be amended or
modified at any time upon the agreement of each Holder and the Company by an
instrument in writing executed by each such party. In addition, any party may,
at its option, by an instrument in writing, waive or extend the time for the
fulfillment of any condition herein contained to be fulfilled for the benefit of
such party. Waiver by any party of any breach or failure to comply with any
provision of this Agreement by another party shall not be construed as, or
constitute, a continuing waiver of such provisions, or a waiver of any other
breach of or failure to comply with any other provisions of this Agreement.

                  (b) ENFORCEMENT. Each party hereto hereby agrees that the
remedy at law for any breach of this Agreement is inadequate and that should any
dispute arise concerning the sale or disposition of any Registrable Securities
or any other matter

                                       19
<PAGE>

hereunder, this Agreement shall be enforceable in a court of equity by an
injunction or a decree of specific performance. Such remedies shall, however, be
cumulative and nonexclusive, and shall be in addition to any other remedies
which the parties hereto may have.

                  (c) ARBITRATION. Any controversy arising under, out of, in
connection with, or relating to, this Agreement, and any amendment hereof, or
the breach hereof, shall be determined and settled by arbitration in New York,
New York, by a person or persons mutually agreed upon, or in the event of a
disagreement as to the selection of the arbitrator or arbitrators, in accordance
with the rules of the American Arbitration Association. Any award rendered
therein shall specify the findings of fact of the arbitrator or arbitrators and
the reasons for such award, with the reference to and reliance on relevant law.
Any such award shall be final and binding on each and all of the parties thereto
and their personal representatives, and judgment may be entered thereon in any
court having jurisdiction thereof.

                  (d) ASSIGNMENT. Except as provided in this Section 12(d),
neither this Agreement nor any of the rights, interests or obligations hereunder
may be assigned by any of the parties hereto, except, in the case of the
Company, by operation of law. Each party hereto (other than the Company) who is
a Family Member (as defined below) may assign his, her or its rights and
obligations hereunder to another Family Member; PROVIDED that in order to
exercise such rights, the assignee must be a Family Member at the time of
exercise of any such rights. The EL Trust may assign up to three Class A Common
Stock Demand Registration rights and up to three Preferred Stock Demand
Registration rights hereunder to an EL Trust Pledgee; PROVIDED, HOWEVER, that
the total demand registration right assignments made to all EL Trust Pledgees
does not exceed three Class A Common Stock Demand Registration rights and three
Preferred Stock Demand Registration Rights. An assignee's exercise of any rights
assigned to him, her or it hereunder is evidence of its agreement to be bound,
as to him, her or it, to the same obligations as are applicable hereunder to the
assignor, and, in the case of an EL Trust Pledgee, such additional conditions
specifically set forth herein. For purposes hereof, "Family Member" shall have
the meaning ascribed to it in the Stockholders' Agreement, dated the date
hereof, among the Company, LAL, RSL, WPL, GML, Aerin Lauder, Jane Lauder, LAL
Family Partners L.P., Lauder & Sons L.P. and the trustees of the various trusts
set forth on the signature pages thereof. This Agreement will be binding upon,
and will inure to the benefit of and be enforceable by, the parties and their
permitted successors (which shall include in the case of an individual, such
individual's estate, guardian, conservator or committee) and assigns.

                  (e) NOTICES. Any notices and other communications given
pursuant to this Agreement shall be in writing and shall be effective upon
delivery by hand or upon receipt if sent by certified or registered mail
(postage prepaid and return receipt requested) or by a nationally recognized
overnight courier service (appropriately marked for overnight delivery) or upon
transmission if sent by facsimile (with request for immediate confirmation of
receipt in a manner customary for communications of such type and with physical
delivery of the communication being made by one of the other

                                       20
<PAGE>

means specified in this Section 12(e) as promptly as practicable thereafter).
Notices are to be addressed as follows:

                                    (i) If to the Company:

                                    The Estee Lauder Companies Inc.
                                    767 Fifth Avenue
                                    New York, New York  10153
                                    Attention:  President
                                    Telecopy:  (212) 572-6745

                                    With a copy to:

                                    The Estee Lauder Companies Inc.
                                    767 Fifth Avenue
                                    New York, New York  10153
                                    Attention:  Secretary
                                    Telecopy:  (212) 572-3989

                                             and

                                    Weil, Gotshal & Manges
                                    767 Fifth Avenue
                                    New York, New York  10153
                                    Attention:  Jeffrey J. Weinberg, Esq.
                                    Telecopy:  (212) 310-8007

                  (ii) If to a Holder, then as set forth in the second
                  column of Schedule A hereto with a copy to the person
                  or persons listed in the third column of Schedule A hereto.

                  (f) ENTIRE AGREEMENT. This Agreement is intended by the
                  parties as a final expression of their agreement and intended
                  to be a complete and exclusive statement of the agreement and
                  understanding of the parties hereto in respect of the subject
                  matter contained herein. There are no restrictions, promises,
                  warranties, or undertakings, other than those set forth or
                  referred to herein, with respect to the registration rights
                  granted by the Company with respect to the Registrable
                  Securities. This Agreement supersedes all prior agreements and
                  understandings between the parties with respect to such
                  subject matter.

                  (g) GOVERNING LAW. This Agreement shall be governed by and
                  construed in accordance with the internal laws of the State of
                  New York (other than its rules of conflicts of law to the
                  extent the application of the laws of another jurisdiction
                  would be required thereby).

                                       21
<PAGE>

                  (h) HEADINGS. The headings in this Agreement are for
                  convenience of reference only and shall not limit or otherwise
                  affect the meaning of any of the terms or provisions hereof.

                  (i) COUNTERPARTS. This Agreement may be executed in any number
                  of counterparts, each of which shall be deemed to be an
                  original, and all of which, when taken together, shall
                  constitute one and the same agreement.

                  (j) SEVERABILITY. If any provision of this Agreement or the
                  application thereof to any person or circumstances is
                  determined by a court of competent jurisdiction to be invalid,
                  void or unenforceable, the remaining provisions hereof, or the
                  application of such provision to persons or circumstances
                  other than those as to which it has been held invalid or
                  unenforceable, shall remain in full force and effect and shall
                  in no way be affected, impaired or invalidated thereby, so
                  long as the economic or legal substance of the transactions
                  contemplated hereby is not affected in any manner adverse to
                  any party. Upon such determination, the parties shall
                  negotiate in good faith in an effort to agree upon a suitable
                  and equitable substitute provision to effect the original
                  intent of the parties.

                  (k) TRUSTEES' CAPACITY. With respect to obligations of
                  trustees who are parties hereto in their capacity as trustees
                  of one or more trusts, this Agreement shall be binding upon
                  such trustees only in their capacities as trustees, not
                  individually and not with respect to any Registrable
                  Securities other than Registrable Securities held by them in
                  their capacity as trustees of such trusts.

                                       22
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement as of the date first above written.

                                    THE ESTEE LAUDER COMPANIES INC.

                                    By:

                                    Name:   Leonard A. Lauder
                                    Title:  Chairman and Chief Executive Officer

                                    Leonard A. Lauder, (a) individually, (b) as
                                    Managing Partner of LAL Family Partners
                                    L.P., (c) as Trustee of The Estee Lauder
                                    1994 Trust, (d) as a Class B General Partner
                                    of Lauder & Sons L.P., (e) as Trustee of The
                                    1995 Estee Lauder LAL Trust (a Class B
                                    General Partner of Lauder & Sons L.P.) and
                                    (f) as Trustee of the LAL Trust

                                    Ronald S. Lauder, (a) individually, (b) as
                                    Trustee of The Descendents of RSL 1966
                                    Trust, (c) as Trustee of The Estee Lauder
                                    1994 Trust, (d) as a Class B General Partner
                                    of Lauder & Sons L.P. and (e) as Trustee of
                                    The 1995 Estee Lauder RSL Trust (a Class B
                                    General Partner of Lauder & Sons L.P.)

                                                   ---------------

                                    William P. Lauder, (a) individually and (b)
                                    as Trustee of The 1992 Leonard A. Lauder
                                    Grantor Retained Annuity Trust

                                       23
<PAGE>

                                    Gary M. Lauder, (a) individually and (b) as
                                    Trustee of The 1992 Leonard A. Lauder
                                    Grantor Retained Annuity Trust

                                                  -------------
                                     Aerin Lauder

                                             -------------
                                      Jane Lauder

                                            -------------
                                    Joel S. Ehrenkranz, (a) as Trustee
                                    of the 1992 Leonard A. Lauder
                                    Grantor Retained Annuity Trust, (b)
                                    as Trustee of the Trust f/b/o Gary
                                    M. Lauder and William P. Lauder
                                    u/a/d December 15, 1976, created by
                                    Leonard Lauder, as Grantor, (c) as
                                    Trustee of The 1995 Estee Lauder LAL
                                    Trust (a Class B General Partner of
                                    Lauder & Sons L.P.) and (d) as
                                    Trustee of the LAL Trust

                                    Carol S. Boulanger, as Trustee of the Trust
                                    f/b/o Gary M. Lauder and William P. Lauder
                                    u/a/d December 15, 1976, created by Leonard
                                    Lauder, as Grantor

                                    Richard D. Parsons, (a) as Trustee of the
                                    Trust f/b/o Aerin Lauder and Jane Lauder
                                    u/a/d December 15, 1976, created by Estee
                                    Lauder and Joseph H. Lauder, as Grantors,
                                    (b) as Trustee of the Trust f/b/o Aerin
                                    Lauder and Jane Lauder u/a/d December 15,
                                    1976, created by Ronald S. Lauder, as
                                    Grantor and

                                       24
<PAGE>

                                    (c) as Trustee of The 1995 Estee Lauder RSL
                                    Trust (a Class B General Partner of Lauder &
                                    Sons L.P.)

                                    Ira T. Wender, (a) as Trustee of The Estee
                                    Lauder 1994 Trust, (b) as Trustee of The
                                    1995 Estee Lauder LAL Trust (a Class B
                                    General Partner of Lauder & Sons L.P.) and
                                    (c) as Trustee of The 1995 Estee Lauder RSL
                                    Trust (a Class B General Partner of Lauder &
                                    Sons L.P.)

                                    Morgan Guaranty Trust Company of New York,
                                    in its capacity as pledgee of Ronald S.
                                    Lauder

                                    By:
                                       -----------------------
                                       Name:
                                       Title:

                                       25
<PAGE>

                                   SCHEDULE A

                                     HOLDERS

<TABLE>
<CAPTION>
         NAME OF HOLDER               NOTICE ADDRESS                    COPIES TO
         --------------               --------------                     ---------
<S>                        <C>                                   <C>
Leonard A. Lauder          767 Fifth Avenue                      Weil, Gotshal & Manges
                           New York, New York  10153             767 Fifth Avenue
                           Telecopy:  (212) 572-6745             New York, NY  10153
                                                                 Attn: Jeffrey J. Weinberg, Esq.
                                                                 Telecopy:  (212) 310-8007

Ronald S. Lauder           767 Fifth Avenue                      Debevoise & Plimpton
                           New York, New York  10153             875 Third Avenue
                           Telecopy:  (212) 572-4046             New York, New York  10022
                                                                 Attn:  Alan H. Paley, Esq.
                                                                 Telecopy:  (212) 909-6836

Trustees of                Leonard A. Lauder                     Cravath, Swaine & Moore
  The Estee Lauder         767 Fifth Avenue                      825 Eighth Avenue
  1994 Trust               New York, New York  10153             New York, NY  10019
                           Telecopy:  (212) 572-6745             Attn:  Daniel L. Mosley, Esq.
                                                                 Telecopy:  (212) 474-3700
                           Ronald S. Lauder
                           767 Fifth Avenue
                           New York, New York  10153
                           Telecopy:  (212) 572-4046

                           Ira T. Wender, Esq.
                           Patterson, Belknap,
                             Webb & Tyler
                           1133 Avenue of the Americas New
                           York, New York  10036
                           Telecopy: (212) 336-2222

William P. Lauder          767 Fifth Avenue                      Debevoise & Plimpton
                           New York, NY  10153                   875 Third Avenue
                           Telecopy:  (212) 572-6967             New York, NY  10022
                                                                 Attn:  Theodore A. Kurz, Esq.
                                                                 Telecopy: (212) 909-6836

Gary M. Lauder             [INTENTIONALLY OMITTED]               Debevoise & Plimpton
                                                                 875 Third Avenue
                                                                 New York, NY  10022
                                                                 Attn:  Theodore A. Kurz, Esq.
                                                                 Telecopy: (212) 909-6836

Aerin Lauder               [INTENTIONALLY OMITTED]               Judah Gribetz, Esq.
                                                                 180 Maiden Lane
                                                                 New York, NY  10038
                                                                 Telecopy:  (212) 248-2655
</TABLE>

                                       26
<PAGE>

<TABLE>
<CAPTION>
         NAME OF HOLDER               NOTICE ADDRESS                          COPIES TO
         --------------               --------------                          ---------
<S>                                <C>                                   <C>

Jane Lauder                        2609 California Street                Judah Gribetz, Esq.
                                   San Francisco, CA  94115              180 Maiden Lane
                                   Telecopy:  [to be supplied]           New York, NY  10038
                                                                         Telecopy:  (212) 248-2655

LAL Family Partners L.P.           c/o Leonard A. Lauder                 Boulanger, Hicks & Churchill
                                   767 Fifth Avenue                      135 E. 57th Street
                                   New York, NY  10153                   New York, NY  10022
                                   Telecopy:  (212) 572-6745             Attn: Carol S. Boulanger, Esq.
                                                                         Telecopy: (212) 753-6971

Trustees of                        Leonard A. Lauder                     Boulanger, Hicks & Churchill
The LAL 1995 Preferred Stock       767 Fifth Avenue                      135 E. 57th Street
Trust                              New York, NY  10153                   New York, NY  10022
                                   Telecopy:  (212) 572-6745             Attn: Carol S. Boulanger, Esq.
                                                                         Telecopy: (212) 753-6971
                                   Joel S. Ehrenkranz
                                   375 Park Avenue
                                   New York, NY  10152
                                   Telecopy:  (212) 754-1905

Trustees of the                    Joel S. Ehrenkranz                    Debevoise & Plimpton
Trust f/b/o Gary M. Lauder and     375 Park Avenue                       875 Third Avenue
William P. Lauder u/a/d December   New York, NY  10152                   New York, NY  10022
15, 1976, created by Leonard       Telecopy:  (212) 754-1905             Attn:  Theodore A. Kurz, Esq.
Lauder, as Grantor                                                       Telecopy:  (212) 909-6836
                                   Carol S. Boulanger
                                   135 E. 57th Street
                                   New York, NY  10022
                                   Telecopy: (212) 753-6971

Trustee of the                     Richard D. Parsons                    Patterson, Belknap, Webb & Tyler
Trust f/b/o Aerin Lauder and       75 Rockefeller Plaza                  1133 Avenue of the Americas
Jane Lauder u/a/d December 15,     New York, NY  10019                   New York, NY 10036
1976, created by Estee Lauder      Telecopy: (212) 275-3085              Attn: Christopher Angell, Esq.
and Joseph H. Lauder, as Grantors                                        Telecopy: (212) 336-2222

Trustee of the                     Richard D. Parsons                    Patterson, Belknap, Webb & Tyler
Trust f/b/o Aerin Lauder and       75 Rockefeller Plaza                  1133 Avenue of the Americas
Jane Lauder u/a/d December 15,     New York, NY  10019                   New York, NY 10036
1976, created by Ronald S.         Telecopy: (212) 275-3085              Attn: Christopher Angell, Esq.
Lauder, as Grantor                                                       Telecopy: (212) 336-2222
</TABLE>

                                       27
<PAGE>

<TABLE>
<CAPTION>
         NAME OF HOLDER                   NOTICE ADDRESS                          COPIES TO
         --------------                   --------------                          ---------
<S>                                    <C>                               <C>
Trustees of the                        William P. Lauder                 Boulanger, Hicks & Churchill
1992 Leonard A. Lauder Grantor         767 Fifth Avenue                  135 E. 57th Street
Retained Annuity Trust                 New York, NY  10153               New York, NY  10022
                                       Telecopy:  (212) 572-6967         Attn: Carol S. Boulanger, Esq.
                                                                         Telecopy: (212) 753-6971
                                       Gary M. Lauder
                                       88 Mercedes Lane
                                       Atherton, CA  94027
                                       Telecopy:  (415) 323-2171

                                       Joel S. Ehrenkranz
                                       375 Park Avenue
                                       New York, NY  10152
                                       Telecopy:  (212) 754-1905

Trustees of                            Ronald S. Lauder                  Debevoise & Plimpton
The Descendents of RSL 1966 Trust      767 Fifth Avenue                  875 Third Avenue
                                       New York, New York  10153         New York, New York  10022
                                       Telecopy:  (212) 572-4046         Attn:  Alan H. Paley, Esq.
                                                                         Telecopy:  (212) 909-6836

Morgan Guaranty Trust Company of       9 West 57th Street                Davis Polk & Wardwell
New York, in its capacity as           Eighth Floor                      450 Lexington Avenue
pledgee of Ronald S. Lauder            New York, NY  10019               New York, New York  10017
                                       Attn: Ms. Willa Baynard           Attn: John Fouhey, Esq.
                                                                         Telecopy:  (212) 450-4800
                                       Telecopy:  (212) 980-6850

</TABLE>

                                       28
<PAGE>

<TABLE>
<CAPTION>
         NAME OF HOLDER          NOTICE ADDRESS                          COPIES TO
         --------------          --------------                          ---------
<S>                           <C>                               <C>
Lauder & Sons L.P.            Leonard A. Lauder                 Weil, Gotshal & Manges
                              767 Fifth Avenue                  767 Fifth Avenue
                              New York, NY 10153                New York, NY 10153
                              Telecopy: (212) 572-6745          Attn: Jeffrey J. Weinberg, Esq.
                                                                Telecopy: (212) 310-8577
                              Ronald S. Lauder
                              767 Fifth Avenue                  Debevoise & Plimpton
                              New York, NY  10153               875 Third Avenue
                              Telecopy: (212) 572-4046          New York, NY 10022
                                                                 Attn: Alan H. Paley, Esq.
                              Joel S. Ehrenkranz                Telecopy: (212) 909-6836
                              375 Park Avenue
                              New York, NY  10152               Patterson, Belknap, Webb & Tyler
                              Telecopy: (212) 754-1905          1133 Avenue of the Americas
                                                                New York, NY 10036

                              Richard D. Parsons                Attn: Christopher Angell, Esq.
                              75 Rockefeller Plaza              Telecopy: (212) 336-2222
                              New York, NY  10019
                              Telecopy: (212) 275-3085          Cravath, Swaine & Moore
                                                                825 Eighth Avenue
                              Ira T. Wender, Esq.               New York, NY  10019
                              Patterson, Belknap,               Attn:  Daniel L. Mosley, Esq.
                                Webb & Tyler                    Telecopy:  (212) 474-3700
                              1133 Avenue of the Americas New
                              York, New York  10036 Telecopy:
                              (212) 336-2222
</TABLE>

                                       29

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