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                             ALBERTO-CULVER COMPANY
                       EMPLOYEE STOCK OPTION PLAN OF 2003

1.   Purpose of ACSOP

     The Alberto-Culver Company Employee Stock Option Plan of 2003 (hereinafter
called the "ACSOP") is intended to encourage ownership of the Class B common
stock of Alberto-Culver Company (the "Company") by eligible key employees of the
Company and its subsidiaries and to provide incentives for them to make maximum
efforts for the success of the business. Options granted under the ACSOP will be
non-qualified options (not incentive options as defined in Section 422 of the
Internal Revenue Code of 1986 and the rules and regulations promulgated
thereunder (the "Code")).

2.   Eligibility

     Key employees of the Company and its subsidiaries who perform services
which contribute materially to the management, operation and development of the
business ("Optionees") will be eligible to receive options under the ACSOP. At
their request, Mr. Leonard H. Lavin and Mrs. Bernice E. Lavin are ineligible to
receive options under the ACSOP.

3.   Administration

     The Compensation Committee of the Board of Directors of the Company (the
"Committee") shall have full power and authority, subject to the express
provisions of the ACSOP, to determine the purchase price of the stock covered by
each option, the Optionees to whom and the time or times at which options shall
be granted, the terms and conditions of the options, including the terms of
payment thereof, and the number of shares of stock to be covered by each option.
The Committee shall have full power to construe, administer and interpret the
ACSOP, and full power to adopt such rules and regulations as the Committee may
deem desirable to administer the ACSOP. No member of the Committee shall be
liable for any action or determination made in good faith with respect to the
ACSOP or any option thereunder. The determination of the Committee as to any
disputed question arising under the ACSOP, including questions of construction
and interpretation, shall be final, conclusive and binding.

     The Committee may, in its discretion, delegate to a committee of member(s)
of the Committee its authority with respect to such matters under the ACSOP and
options granted under the ACSOP as the Committee may specify.

     The Committee shall be comprised solely of members each of whom shall be an
"outside director" within the meaning of Section 162(m) of the Code, and a
"non-employee director" within the meaning of Section 16 of the Securities
Exchange Act of 1934 and the rules and regulations thereunder ("Section 16"),
provided, however, that if any member of the Committee is not (i) an "outside
director" within the meaning of Section 162(m) of the Code or (ii) a
"non-employee director" within the meaning of Section 16, the Committee shall
set up a subcommittee comprised solely of outside directors and non-employee
directors for purposes of all matters arising under this ACSOP involving
"officers" within the meaning of Rule 16a-1(f) under Section 16, and "covered
employees" within the meaning of Section 162(m) of the Code for the plan year at
issue.

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4.   Number of Shares of Stock to be Offered

     The Committee may authorize from time to time the issuance pursuant to the
ACSOP of shares not to exceed 6,000,000 of the Company's Class B common stock in
the aggregate, subject to adjustment under paragraph 10 hereof. Such shares of
Class B common stock which may be issued pursuant to options granted under the
ACSOP may be authorized and unissued shares or issued and reacquired shares as
the Committee from time to time may determine. If any option granted under the
ACSOP shall terminate or be surrendered or expire unexercised in whole or in
part, the shares of stock so released from such option may be made the subject
of additional options granted under the ACSOP. In addition, any shares of Class
B common stock withheld to pay, in whole or in part, the amount required to be
withheld under applicable tax laws in accordance with paragraph 7(d) hereof, may
be made the subject of additional options granted under the ACSOP.

5.   Option Price

     The purchase price under each option granted pursuant to the ACSOP shall be
determined by the Committee but shall not be less than the Fair Market Value (as
defined below) of the Company's Class B common stock at the time the option is
granted. For purposes of the ACSOP, "Fair Market Value" shall mean the average
of the high and low transaction prices of a share of Class A common stock or
Class B common stock of the Company, as the case may be, as reported in the New
York Stock Exchange Composite Transactions on the date as of which such value is
being determined or, if there shall be no reported transactions for such date,
on the next preceding date for which transactions were reported.

6.   Grant of Options

     The Committee may not grant to any individual Optionee in any fiscal year
an option or options with respect to more than 400,000 shares of Class B common
stock.

7.   Term and Exercise of Options

     (a) Each option granted shall provide that it is not exercisable after the
expiration of ten (10) years from the date the option is granted, or such
shorter period as the Committee determines, and each option shall be subject to
the following limitations upon its exercise:

     (i)  Except as otherwise provided in paragraph 11(a) hereof, no option may
          be exercised until the day preceding the anniversary date of the grant
          of the option.

     (ii) Except as otherwise provided in paragraph 11(a) hereof, on the day
          preceding the anniversary date of the grant of the option in each of
          the four calendar years immediately following the year of the grant of
          the option, the right to purchase twenty-five percent (25%) of the
          total number of shares of stock specified in the option shall accrue
          to the Optionee. Subject to paragraph 8 hereof, each such right to
          purchase such twenty-five percent (25%) may be exercised, in whole or
          in part, at any time after such right accrues and prior to the
          expiration of the term of the option.

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     (b) Notwithstanding the foregoing or paragraph 8 hereof, the Committee may
in its discretion (i) specifically provide at the date of grant for another time
or times of exercise; (ii) at any time prior to the expiration or termination of
any option previously granted, accelerate the exercisability of any option
subject to such terms and conditions as the Committee deems necessary or
appropriate to effectuate the purpose of the ACSOP including, without
limitation, a requirement that the Optionee grant to the Company an option to
repurchase all or a portion of the number of shares acquired upon exercise of
the accelerated option for their Fair Market Value on the date of grant; or
(iii) at any time prior to the expiration or termination of any option
previously granted, extend the term of any option (including such options held
by officers or directors) for such additional period as the Committee, in its
discretion, shall determine. In no event, however, shall the aggregate option
period with respect to any option, including the original term of the option and
any extensions thereof, exceed ten years.

     (c) An option may be exercised (subject to the receipt of payment) by
giving written notice to the Secretary of the Company specifying the number of
shares to be purchased. The full purchase price for such shares may be paid (i)
in cash, (ii) by check, (iii) by delivery of previously owned shares of Class A
common stock, (iv) by delivery of previously owned shares of Class B common
stock, or (v) by a combination of these methods of payment. However, under no
circumstances may any Optionee deliver previously owned shares of Class A common
stock or Class B common stock obtained from the exercise of stock options under
any option plan of the Company or the vesting of shares restricted under any
restricted stock plan of the Company or the Management Bonus Plan during the six
months immediately preceding the exercise date. Payment must be received by the
Secretary of the Company before any exercise is consummated. For purposes of the
delivery of previously owned shares of Class A common stock and/or Class B
common stock, the per share value of such shares shall be the Fair Market Value
on the date of exercise.

     (d) At any time when an Optionee is required to pay to the Company an
amount required to be withheld under applicable tax laws in connection with the
exercise of an option (calculated by taking the minimum statutory withholding
rates for federal, state and local tax purposes including payroll taxes,
applicable to the income generated by the Optionee by such exercise), the
Optionee may satisfy this obligation (i) in cash, (ii) by check, (iii) by
delivery of previously owned shares of Class A common stock, (iv) by delivery of
previously owned shares of Class B common stock, (v) by making an election to
have the Company withhold shares of Class B common stock, or (vi) by a
combination of these methods of payment, in each case having a value equal to
the amount required to be withheld. The Optionee must specify the method of
satisfying this obligation on or before the date of exercise. The value of the
shares to be withheld or delivered shall be based on the Fair Market Value of
the Class A common stock and/or Class B common stock on the date of exercise.

8.   Continuity of Employment

     (a) Each option shall be subject to the following in addition to the
restrictions set forth in paragraphs 6 and 7 hereof:

     (i)  If an Optionee dies without having fully exercised his or her option,
          the executors or administrators of his or her estate or legatees or
          distributees shall have the right during the one (1) year period
          following his or her death (but not after the expiration of the term
          of such option) to exercise such option in whole or in part but only
          to the

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          extent that the Optionee could have exercised it at the date of his or
          her death.

     (ii) If an Optionee's termination of employment is due to retirement or
          disability, the Optionee's option shall terminate one (1) year after
          his or her termination of employment (but not after the expiration of
          the term of such option) and may be exercised only to the extent that
          such Optionee could have exercised it at the date of his or her
          termination of employment. For purposes of the ACSOP, (i) "retirement"
          shall have the meaning provided in the Company's Employees' Profit
          Sharing Plan or, in the absence of such a definition, termination of
          employment that occurs on or after the first day of the month
          following the month in which the Optionee attains his or her 65th
          birthday and (ii) "disability" shall have the meaning provided in the
          Company's applicable long-term disability plan and such disability
          continues for more than three months or, in the absence of such a
          definition, when an Optionee becomes totally disabled as determined by
          a physician mutually acceptable to the Optionee and the Committee
          before attaining his or her 65th birthday and if such total disability
          continues for more than three months. Disability does not include any
          condition which is intentionally self-inflicted or caused by illegal
          acts of the Optionee.

     (iii) If an Optionee's termination of employment is for any reason other
          than death, retirement or physical disability, the Optionee's option
          shall terminate upon said termination of employment; provided,
          however, that if such termination of employment occurs following a
          Change in Control (as such term is defined in paragraph 11(b) hereof),
          the Optionee's option shall terminate three (3) months after his or
          her termination of employment (but not after the expiration of the
          term of such option) and may be exercised to the extent that such
          Optionee could have exercised it at the date of his or her termination
          of employment.

     (b) Nothing contained in the ACSOP or any option granted pursuant to the
ACSOP shall confer upon any Optionee any right to be continued in the employment
of the Company or any subsidiary or shall prevent the Company or any subsidiary
from terminating an Optionee's employment at any time, with or without cause.
The determination by the Committee of whether an authorized leave of absence
constitutes a termination of employment shall be final, conclusive and binding.

9.   Non-Transferability of Options

     An option granted under the ACSOP shall not be assignable or transferable
by an Optionee otherwise than by will or the laws of descent and distribution,
and an option shall be exercisable during the lifetime of the Optionee only by
him or her. An option transferred by will or the laws of descent and
distribution may only be exercised by the legatee or distributee during the one
year period following the Optionee's death and may only be exercised to the
extent it was exercisable by the Optionee prior to his or her death.

10.  Adjustment upon Change in Stock

     Each option, the number and kind of shares subject to future options and
the number of

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shares subject to options that may be granted to an Optionee in any fiscal year
under the ACSOP may be adjusted, as may be determined to be equitable in the
sole and absolute discretion of the Committee, in the event there is any change
in the outstanding Class B common stock, or any event that could cause a change
in the outstanding Class B common stock, including, without limitation, by
reason of a stock dividend, recapitalization, reclassification, issuance of
Class B common stock, issuance of rights to purchase Class B common stock,
issuance of securities convertible into or exchangeable for Class B common
stock, merger, consolidation, stock split, reverse stock split, spin-off,
combination, exchange or conversion of shares, or any other similar type of
event. The Committee's determination of any adjustment pursuant to this
paragraph10 shall be final, conclusive and binding.

11.  Change in Control

     (a) (1) Notwithstanding any provision of the ACSOP, in the event of a
     Change in Control, all outstanding options shall immediately be exercisable
     in full and shall be subject to the provisions of paragraph 11(a)(2) or
     11(a)(3), to the extent that either such paragraph is applicable.

          (2) Notwithstanding any provision of the ACSOP, in the event of a
     Change in Control in connection with which the holders of shares of the
     Company's Class B common stock receive shares of common stock that are
     registered under Section 12 of the Exchange Act, all outstanding options
     shall immediately be exercisable in full and there shall be substituted for
     each share of the Company's Class B common stock available under the ACSOP,
     whether or not then subject to an outstanding option, the number and class
     of shares into which each outstanding share of the Company's Class B common
     stock shall be converted pursuant to such Change in Control. In the event
     of any such substitution, the purchase price per share of each option shall
     be appropriately adjusted by the Committee or the committee to which
     authority has been delegated pursuant to paragraph 3 hereof, such
     adjustments to be made without an increase in the aggregate purchase price.

          (3) Notwithstanding any provision in the ACSOP, in the event of a
     Change in Control in connection with which the holders of the Company's
     Class B common stock receive consideration other than shares of common
     stock that are registered under Section 12 of the Exchange Act, each
     outstanding option shall be surrendered to the Company by the holder
     thereof, and each such option shall immediately be cancelled by the
     Company, and the holder shall receive, within ten (10) days of the
     occurrence of such Change in Control, a cash payment from the Company in an
     amount equal to the number of shares of the Company's Class B common stock
     then subject to such option, multiplied by the excess, if any, of (i) the
     greater of (A) the highest per share price offered to stockholders of the
     Company in any transaction whereby the Change in Control takes place or (B)
     the Fair Market Value of a share of the Company's Class B common stock on
     the date of occurrence of the Change in Control over (ii) the purchase
     price per share of the Company's Class B common stock subject to the
     option. The Company may, but is not required to, cooperate with any person
     who is subject to Section 16 of the Exchange Act to assure that any cash
     payment in accordance with the foregoing to such person is made in
     compliance with Section 16 of the Exchange Act and the rules and
     regulations thereunder providing

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     for an exemption from Section 16(b) of the Exchange Act.

     (b)  "Change in Control" means:

          (1)  The occurrence of any one or more of the following events:

               (A) The acquisition by any individual, entity or group (a
          "Person"), including any "person" within the meaning of Section
          13(d)(3) or 14(d)(2) of the Exchange Act of beneficial ownership
          within the meaning of Rule 13d-3 promulgated under the Exchange Act of
          both (x) 20% or more of the combined voting power of the then
          outstanding securities of the Company entitled to vote generally in
          the election of directors (the "Outstanding Company Voting
          Securities") and (y) combined voting power of Outstanding Company
          Voting Securities in excess of the combined voting power of the
          Outstanding Company Voting Securities held by the Exempt Persons (as
          such term is defined in paragraph 11(c)); provided, however, that a
          Change in Control shall not result from an acquisition of Company
          Voting Securities:

                    (i) directly from the Company, except as otherwise provided
               in paragraph 11(b)(2)(A);

                    (ii) by the Company, except as otherwise provided in
               paragraph 11(b)(2)(B);

                    (iii) by an Exempt Person;

                    (iv) by an employee benefit plan (or related trust)
               sponsored or maintained by the Company or any corporation
               controlled by the Company; or

                    (v) by any corporation pursuant to a reorganization, merger
               or consolidation involving the Company, if, immediately after
               such reorganization, merger or consolidation, each of the
               conditions described in clauses (i) and (ii) of paragraph
               11(b)(1)(C) shall be satisfied.

               (B) The cessation for any reason of the members of the Incumbent
          Board (as such term is defined in paragraph 11(d)) to constitute at
          least a majority of the Board of Directors of the Company (hereinafter
          called the "Board").

               (C) Consummation of a reorganization, merger or consolidation
          unless, in any such case, immediately after such reorganization,
          merger or consolidation:

                    (i) more than 60% of the combined voting power of the then
               outstanding securities of the corporation resulting from such
               reorganization, merger or consolidation entitled to vote

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               generally in the election of directors is then beneficially
               owned, directly or indirectly, by all or substantially all of the
               individuals or entities who were the beneficial owners of the
               combined voting power of all of the Outstanding Company Voting
               Securities immediately prior to such reorganization, merger or
               consolidation; and

                    (ii) at least a majority of the members of the board of
               directors of the corporation resulting from such reorganization,
               merger or consolidation were members of the Incumbent Board at
               the time of the execution of the initial agreement or action of
               the Board providing for such reorganization, merger or
               consolidation.

               (D) Consummation of the sale or other disposition of all or
          substantially all of the assets of the Company other than (x) pursuant
          to a tax-free spin-off of a subsidiary or other business unit of the
          Company or (y) to a corporation with respect to which, immediately
          after such sale or other disposition:

                    (i) more than 60% of the combined voting power of the then
               outstanding securities thereof entitled to vote generally in the
               election of directors is then beneficially owned, directly or
               indirectly, by all or substantially all of the individuals and
               entities who were the beneficial owners of the combined voting
               power of all of the Outstanding Company Voting Securities
               immediately prior to such sale or other disposition; and

                    (ii) at least a majority of the members of the board of
               directors thereof were members of the Incumbent Board at the time
               of the execution of the initial agreement or action of the Board
               providing for such sale or other disposition.

               (E) Approval by the stockholders of the Company of a plan of
          complete liquidation or dissolution of the Company.

          (2)  Notwithstanding the provisions of paragraph 11(b)(1):

               (A) no acquisition of Company Voting Securities shall be subject
          to the exception from the definition of Change in Control contained in
          clause (i) of paragraph 11(b)(1)(A) if such acquisition results from
          the exercise of an exercise, conversion or exchange privilege unless
          the security being so exercised, converted or exchanged was acquired
          directly from the Company; and

               (B) for purposes of clause (ii) of paragraph 11(b)(1)(A), if any

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          Person (other than the Company, an Exempt Person or any employee
          benefit plan (or related trust) sponsored or maintained by the Company
          or any corporation controlled by the Company) shall, by reason of an
          acquisition of Company Voting Securities by the Company, become the
          beneficial owner of (x) 20% or more of the combined voting power of
          the Outstanding Company Voting Securities and (y) combined voting
          power of Outstanding Company Voting Securities in excess of the
          combined voting power of the Outstanding Company Voting Securities
          held by the Exempt Persons, and such Person shall, after such
          acquisition of Company Voting Securities by the Company, become the
          beneficial owner of any additional Outstanding Company Voting
          Securities and such beneficial ownership is publicly announced, such
          additional beneficial ownership shall constitute a Change in Control.

     (c) "Exempt Person" (and collectively, the "Exempt Persons") means:

          (1) Leonard H. Lavin or Bernice E. Lavin;

          (2) any descendant of Leonard H. Lavin and Bernice E. Lavin or the
     spouse of any such descendant;

          (3) the estate of any of the persons described in paragraph 11(c)(1)
     or (2);

          (4) any trust or similar arrangement for the benefit of any person
     described in paragraph 11(c)(1) or (2); or

          (5) the Lavin Family Foundation or any other charitable organization
     established by any person described in paragraph 11(c)(1) or (2).

     (d) "Incumbent Board" means those individuals who, as of October 24, 2002,
constitute the Board, provided that:

          (1) any individual who becomes a director of the Company subsequent to
     such date whose election, or nomination for election by the Company's
     stockholders, was approved either by the vote of at least a majority of the
     directors then comprising the Incumbent Board or by the vote of at least a
     majority of the combined voting power of the Outstanding Company Voting
     Securities held by the Exempt Persons shall be deemed to have been a member
     of the Incumbent Board; and

          (2) no individual who was initially elected as a director of the
     Company as a result of an actual or threatened solicitation by a Person
     other than the Board or the Exempt Persons for the purpose of opposing a
     solicitation by any other Person with respect to the election or removal of
     directors, or any other actual or threatened solicitation of proxies or
     consents by or on behalf of any Person other than the Board or the Exempt
     Persons shall be deemed to have been a member of the Incumbent Board.

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12.  Amendment and Discontinuance

     The Committee or the Board, without further approval of the stockholders,
may, at any time and from time to time, suspend or discontinue the ACSOP in
whole or in part or amend the ACSOP in such respects as the Committee or the
Board may deem proper and in the best interests of the Company or as may be
advisable, provided, however, that no suspension or amendment shall be made
which would:

     (i)  Adversely affect or impair any option previously granted under the
          ACSOP without the consent of the Optionee, or

     (ii) Except as specified in paragraph 10, increase the total number of
          shares for which options may be granted under the ACSOP or decrease
          the minimum price at which options may be granted under the ACSOP.

13.  Effective Date

     The ACSOP shall be submitted to stockholders of the Company for their
approval at the Annual Meeting of the Stockholders to be held on January 23,
2003, or any adjournment thereof, and shall become effective upon receiving such
approval.

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