Exhibit 10 (e)

                          1994 STOCK OPTION PLAN
                         FOR NON-EMPLOYEE DIRECTORS

                    (as amended through January 22, 1998)

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


          1. Purpose.  The  principal  purpose of the 1994 Stock Option Plan for
          Non-Employee   Directors   (the   "Director   Plan")  is  to   benefit
          Alberto-Culver   Company  (the  "Company")  and  its  subsidiaries  by
          offering its non- employee  directors an opportunity to become holders
          of the Company's  Class A common stock,  par value $.22 per share,  in
          order to enable them to represent the viewpoint of other  stockholders
          of the Company  more  effectively  and to  encourage  them to continue
          serving as directors of the Company.

          2.  Administration.  The Director  Plan shall be  administered  by the
          Board of Directors,  whose  interpretation of the terms and provisions
          of the Director Plan shall be final and conclusive.

          3. Eligibility. Options shall be granted under this Director Plan only
          to members of the Board of Directors who are not officers or employees
          of the Company or any of its subsidiaries.

          4. Granting of Options.
               (a)  An option to purchase  7,500  shares of Class A common stock
                    from the Company shall be automatically granted by the Board
                    of  Directors,  without  further  action  required,  to each
                    director of the Company upon his or her initial  election or
                    appointment  as a director of the Company and to each person
                    who is an incumbent  director on October 27, 1994;  provided
                    such  director  is  eligible at that time under the terms of
                    Paragraph 3 of this Director  Plan,  and provided,  further,
                    that no person  shall be granted  more than one such  option
                    pursuant to this  Director  Plan.  An  aggregate  of 210,000
                    shares shall be available  under this  Director  Plan.  Such
                    number  of  shares,  and the  number of  shares  subject  to
                    options  outstanding  under  this  Director  Plan,  shall be
                    subject in all cases to  adjustment as provided in Paragraph
                    10. No option  shall be  granted  under this  Director  Plan
                    subsequent to October 27, 2004.

               (b)  Shares  subject  to  options  may  be  made  available  from
                    unissued or treasury  shares of stock.  Notwithstanding  the
                    provisions of  subparagraph  4(a), any shares  released from
                    any  unexercised  or expired  options may be made subject to
                    additional options granted under this Director Plan.

               (c)  Nothing  contained  in this  Director  Plan or in any option
                    granted  pursuant  hereto  shall in itself  confer  upon any
                    optionee any right to continue  serving as a director of the
                    Company or  interfere in any way with any right of the Board
                    of Directors or  stockholders  of the Company to remove such
                    director  pursuant to the  certificate of  incorporation  or
                    by-laws of the Company or applicable law.

          5. Option Price.  Subject to adjustment under Paragraph 10, the option
          price  shall  be the Fair  Market  Value  (as  defined  below)  of the
          Company's Class A common stock on the date the option is granted.  For
          purposes of the  Director  Plan,  "Fair  Market  Value" shall mean the
          average of the high and low  transaction  prices of a share of Class A
          common  stock 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.  Duration of Options,  Increments  and  Extensions.  Subject to the
          provisions of Paragraph 8, each option shall be for a term of ten (10)
          years.  Subject to the  provisions  of Paragraph 11, each option shall
          become  exercisable  with respect to 25% of the total number of shares
          one year after the date of grant and with respect to an additional 25%
          at  the  end  of  each  twelve-month   period  thereafter  during  the
          succeeding three years.

          7.  Exercise of Option.  An option may be exercised by giving  written
          notice to the Company,  attention  of the  Secretary,  specifying  the
          number of shares of Class A common stock to be purchased,  accompanied
          by the full purchase price for such number of shares,  either in cash,
          by check,  or in shares of Class A common  stock,  or by a combination
          thereof.  The per share value of the Class A common stock delivered in
          payment  of the option  price  shall be the Fair  Market  Value of the
          Class A common stock on the date of exercise.

<PAGE>




          8. Termination - Exercise Thereafter.

               (a)  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 a 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
                    extent that the optionee  could have exercised the option at
                    the date of his or her death.

               (b)  If any optionee  resigns from the Board of Directors  due to
                    physical  disability or retirement,  the  optionee's  option
                    shall   terminate   three  (3)  months   after  his  or  her
                    resignation  (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 the option at the date of
                    his or her resignation.

               (c)  If the optionee  resigns from the Board of Directors for any
                    other reason other than physical  disability or  retirement,
                    the optionee's option shall terminate upon said resignation;
                    provided, however, that if such resignation 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  resignation  (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 resignation.

          9.  Non-Transferability of Options. No option shall be transferable by
          the  optionee  otherwise  than  by will or the  laws  of  descent  and
          distribution,   and  each  option  shall  be  exercisable   during  an
          optionee's lifetime only by the optionee.

          10.  Adjustment  upon Change in Stock.  Each option and the number and
          kind of shares  subject to future options under the Director Plan will
          be  adjusted,  as may be  determined  to be  equitable by the Board of
          Directors, in the event there is any change in the outstanding Class A
          common   stock  of  the  Company  by  reason  of  a  stock   dividend,
          recapitalization,  merger,  consolidation,  split-up,  combination  or
          exchange  of  shares,   or  the  like,  and  the  Board  of  Directors
          determination of such adjustment provisions shall be final, conclusive
          and binding.
          11. Change in Control

               (a)  (1)  Notwithstanding  any provision of the Director Plan, 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 Director  Plan, in the
                    event of a Change in  Control in  connection  with which the
                    holders  of shares  of the  Company's  Class A common  stock
                    receive  shares of common  stock that are  registered  under
                    Section  12 of the  Securities  Exchange  Act of  1934  (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 A common stock  available
                    under the Director  Plan,  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 A 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 Board of Directors,  such adjustments to be made without
                    an increase in the aggregate purchase price.

               (3)  Notwithstanding  any provision in the Director  Plan, in the
                    event of a Change in  Control in  connection  with which the
                    holders  of the  Company's  Class  A  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 A 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 A
                    common  stock on the date of  occurrence  of the  Change  in
                    Control  over  (ii)  the  purchase  price  per  share of the
                    Company's  Class A 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.

    (b)  "Change in Control" means:

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


<PAGE>



          (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.

          (C) Approval by the  stockholders of the Company 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   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  of  Directors   providing  for  such
                    reorganization, merger or consolidation.

          (D) Approval by the  stockholders  of the Company 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

<PAGE>



               (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  of  Directors   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
                    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, 1996,
          constitute the Board of Directors, 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  election  contest,  as
          such terms are used in Rule 14a-11 of Regulation 14A promulgated under
          the Exchange  Act, or any other actual or threatened  solicitation  of
          proxies or consents by or on behalf of any Person other than the Board
          of  Directors  or the  Exempt  Persons  shall be deemed to have been a
          member of the Incumbent Board.

<PAGE>



          12.  Amendment of Director  Plan.  The Board of Directors may amend or
          discontinue this Director Plan at any time; provided, however, that no
          such amendment or discontinuance shall (i) change or impair any option
          previously granted without the consent of the optionee,  (ii) increase
          the maximum  number of shares  which may be  purchased by all eligible
          directors  pursuant to this Director  Plan,  (iii) change the purchase
          price,  or  (iv)  change  the  option  period  or  increase  the  time
          limitations on the grant of options.

          13. Effective Date. This Director Plan has been adopted and authorized
          by the Board of Directors for  submission to the  stockholders  of the
          Company.  If this Director Plan is approved by the affirmative vote of
          the holders of a majority of the voting stock of the Company voting in
          person or by proxy at a duly held stockholders'  meeting,  it shall be
          deemed to have  become  effective  on October  27,  1994,  the date of
          adoption by the Board of Directors.  Options may be granted under this
          Director  Plan prior,  but subject,  to the approval of this  Director
          Plan by  stockholders  of the Company and, in each such case, the date
          of grant shall be determined without reference to the date of approval
          of this Director Plan by the stockholders of the Company.