Executive Employment Agreements The executive employment agreements provide for the issuance of 11,400,000 shares to be awarded in the form of stock options and other stock awards to certain key executives. The Company has reserved 661,600 shares of its Class A Common Stock pursuant to such agreements as of June 30, 2003. In accordance with such employment agreements approximately 1,400 share units were granted in fiscal 2003 and 900 share units were granted in fiscal 2002 and 2001. The reserve is solely for dividend equiva- lents on units granted pursuant to one of the agreements. Most of the stock options granted pursuant to the agree- ments are exercisable and expire at various times from November 2005 through July 2009. The share units will be paid out in shares of Class A Common Stock at a time to be determined by the Company, but no later than  90 days subsequent to the termination of employment of the executive. Asummary of the Company’s stock option programs as of June 30, 2003, 2002 and 2001, and changes during the years then ended, is presented below: Summarized information about the Company’s stock options outstanding and exercisable at June 30, 2003 is as follows: (a) Shares in thousands. (b) Weighted average contractual life remaining in years. (c) Weighted average exercise price. Subsequent to June 30, 2003, the Company granted options under the terms of the Plans described above to purchase an additional 2,211,200 of the Company’s Class A Common Stock with an exercise price equal to fair market value on the date of grant. In addition, subsequent to June 30, 2003, the Company granted approximately 58,500 share units to a key executive pursuant to the terms of the Fiscal 2002 Share Incentive Plan. THEEST{E LAUDER COMPANIES INC. 77 Exercise Price Range Options (a) Average Life (b) Average Price (c) Options (a) Average Price (c) $ 3.10 14.1 4.3 $ 3.10 14.1 $ 3.10 $13.00 to $20.813 2,668.8 2.4 13.08 2,668.8 13.08 $21.313 to $30.52 5,960.1 4.1 23.88 5,478.9 23.37 $31.875 to $47.625 14,541.2 7.6 36.14 4,371.3 37.30 $49.75 to $53.50 6,358.0 6.1 51.77 3,892.5 52.14 $ 3.10 to $53.50 29,542.2 34.93 16,425.6 32.31 Exercisable Outstanding 2003 2002 2001 Weighted- Weighted- Weighted- Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price (Shares in thousands) Outstanding at beginning of year 24,843.5 $35.10 23,393.2 $34.55 21,914.1 $33.14 Granted at fair value 6,651.2 32.02 2,175.3 39.07 2,709.5 42.80 Exercised (1,094.0) 15.16 (435.4) 17.85 (806.0) 16.50 Cancelled or Expired (858.5) 43.10 (289.6) 46.38 (424.4) 48.19 Outstanding at end of year 29,542.2 34.93 24,843.5 35.10 23,393.2 34.55 Options exercisable at year-end 16,425.6 32.31 13,149.5 27.59 8,497.6 21.69 Weighted-average fair value of options granted during the year $12.35 $16.02 $17.01