Document:

Management Incentive Plan

 Exhibit 10.1 
 ALBERTO-CULVER COMPANY 
 MANAGEMENT INCENTIVE PLAN 
  
 (as amended and restated through October 1, 2003) 
  

	1.	Establishment. Alberto-Culver Company and its subsidiaries hereby establish the Management Incentive Plan (“MIP”) for key salaried employees of the Company. The MIP
provides for annual awards to be made to Participants based upon financial performance and achievement of Individual Bonus Objectives. This MIP is established as an unfunded, non-qualified incentive compensation plan intended for the benefit of
employees who are among a select group of management and/or highly compensated participants. Nothing contained in this MIP and no action taken pursuant to the provisions of this MIP shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and the Participant, his designated beneficiary or any other person. Any funds which may be invested under the provisions of this MIP shall continue for all purposes to be a part of the general assets of
the Company and no person other than the Company shall by virtue of the provisions of this MIP have any interest in such funds. To the extent that any person acquires a right to receive payments from the Company under this MIP, such right shall be
no greater than the right of any unsecured general creditor of the Company. 

  

	2.	Purpose. The purpose of the MIP is to attract and retain in the employ of the Company persons possessing outstanding management skills and competence who will contribute
substantially to the success of the Company. The MIP is intended to provide incentives to such persons to exert their maximum efforts on behalf of the Company by rewarding them with additional compensation when the Company or Profit Center and/or
the Participant have achieved the financial performance and Individual Business Objectives, respectively, provided for in the MIP. 

  

	3.	Effective Date and Performance Periods. The MIP, as amended, has been adopted and authorized by the Board of Directors for submission to the stockholders of the Company. If
the MIP is approved by the stockholders of the Company at the Annual Meeting of Stockholders to be held on January 22, 2004, or any adjournment thereof (the “2004 Meeting”), it shall be deemed to have become effective on October 1, 2003,
the date of the most recent amendments to the MIP by the Board of Directors. Bonus Award Opportunities, financial performance opportunities and Individual Business Objectives for fiscal year 2004 have been set under the MIP prior, but subject, to
the approval of the MIP, as amended, by stockholders of the Company at the 2004 Meeting. If the MIP, as amended, is not approved by the stockholders of the Company at the 2004 Meeting, the terms of the MIP shall be those terms in effect immediately
prior to the most recent amendments by the Board of Directors and any Bonus Award Opportunities, financial performance opportunities and Individual Business Objectives set, subject to such stockholder approval, shall be governed by those terms in
effect immediately prior to such amendments. The effective date of the amended and restated MIP is October 1, 2003. The Plan Year shall be the 12 consecutive-month period ending September 30 of each year. The MIP will continue in effect until
and unless terminated by the Compensation Committee or the Board of Directors. 

	4.	Definitions. The definition of key terms are as follows: 

  

	 	a.	“Base Salary” means the base salary, as set by the Company, paid to the Participant during the Plan Year, exclusive of any amounts payable under bonus and incentive plans,
severance plans, option plans, and any other benefit or welfare plan of the Company now or hereafter existing. 

  

	 	b.	“Bonus Award Opportunity” means 200% of Base Salary. 

  

	 	c.	“Change in Control” shall have the meaning set forth in Section 14.d.1. 

  

	 	d.	“Committee” means the Compensation Committee of the Board of Directors of the Company or, if any member of the Compensation Committee is not (i) an “outside
director” within the meaning of Section 162(m) of the Internal Revenue Code of 1986 and the rules and regulations thereunder or (ii) 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”), the Committee shall set up a subcommittee comprised solely of outside directors and non-employee directors for purposes of all matters arising under this MIP involving
“officers” within the meaning of Rule 16a-1(f) under Section 16 (“Executive Officer”) and Covered Employees as defined herein. 

  

	 	e.	“Company” means Alberto-Culver Company or a Subsidiary. 

  

	 	f.	“Covered Employee” means a Participant who is a “covered employee” within the meaning of Section 162(m) of the Internal Revenue Code of 1986 and the rules and
regulations thereunder during the Plan Year at issue. 

  

	 	g.	“Employee” means any person, including an officer or director, who is employed on a permanent basis by, and receives a regular salary from, the Company.

  

	 	h.	“Exempt Person” and “Exempt Persons” shall have the meaning set forth in Section 14.d.2. 

  

	 	i.	“Incumbent Board” shall have the meaning set forth in Section 14.d.3. 

  

	 	j.	“Individual Business Objectives” means the objectives as set forth in a letter of recommendation prepared by the Participant and agreed upon by (i) the Chairman, any Vice
Chairman or the Chief Executive Officer of the Company, (ii) the President of Alberto-Culver Consumer Products Worldwide or Sally Beauty Company, Inc. or (iii) the Committee. 

  

	 	k.	“Participant” means any Employee of the Company who has been selected to participate in the MIP. 

  

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	 	l.	“Plan Year” shall be the Company’s fiscal year for financial reporting purposes (i.e., the 12 consecutive-month period ended September 30).

  

	 	m.	“Profit Center” means a division or Subsidiary of the Company which is responsible for preparing and submitting annual sales and pre-tax profit (loss) objectives.

  

	 	n.	“Subsidiary” means any corporation in which the Company owns (directly or indirectly) 50% or more of the outstanding stock entitled to vote for directors.

  

	5.	Eligibility. Participation in the MIP is limited to key salaried Employees of the Company and its Subsidiaries. Each Plan Year, the Committee shall designate those eligible
Employees who will participate in the MIP during that Plan Year. In the event an employee who would be eligible to participate in the MIP is hired after the beginning of the Plan Year, the Committee may, but need not, designate such employee as a
Participant for such Plan Year; provided, however, that no employee shall be eligible to participate in the MIP for any Plan Year in which he or she was employed with the Company for less than four months. In the event a new employee is designated
as a Participant, the Committee shall notify the new Participant of his or her financial performance award opportunities and his or her Individual Business Objectives on which any cash award will be based. The Committee shall make such adjustments
to the new Participant’s actual cash award as the Committee deems necessary or appropriate to take into account the fact that such Participant was not employed for the entire Plan Year. 

  

	6.	Award Opportunities. Actual awards can range from 0% to 100% of the Bonus Award Opportunity (a maximum of 200% of Base Salary or $4.0 million, whichever is less) based on
actual performance compared to the performance objectives established for the Plan Year. The total Bonus Award Opportunity will relate to the financial performance of the Company, one or more Profit Centers, or Individual Business Objectives or any
combination thereof. Notwithstanding anything to the contrary hereinabove set forth in this Section 6 or in Section 8 or 9 of the MIP, but subject in all respects to Sections 7 and 14 of the MIP, any Bonus Award Opportunity and the amount of any
annual award, other than a Change in Control Award (as such term is defined in Section 14.b of the MIP), payable to any Participant other than a Covered Employee may be (i) increased or decreased by up to 35% of such Participant’s Base Salary
as the Committee, in its sole discretion, shall determine based on such factors and circumstances as the Committee shall deem appropriate or (ii) decreased by such amount as the Committee, in its sole discretion, shall determine in the event a
Participant (a) is found to have violated any policy contained in the applicable Compliance Policy Manual, (b) is placed on probation at any time during the Plan Year, (c) has engaged in purposeful diversion, and/or (d) has engaged in activities
intended to enhance current Plan Year awards to the detriment of future periods (e.g. inadequate marketing expenditures that artificially increase short-term profits, unnecessary year-end loading shipments or promotions that build sales for the
short-term, etc.) 

  

	7.	Maximum Award Payable. The maximum award payable under the MIP to a single Participant may not exceed the lesser of $4.0 million or 200% of such Participant’s Base
Salary per fiscal year of the Company. 

  

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	8.	Financial Performance Award Opportunities. Each Participant will be assigned financial performance award opportunities for the Company and/or the Profit Center for the
Plan Year. Financial performance award opportunities will be based, in whole or in part, upon one or more of the following: targeted levels of sales, operating earnings, operating margin, pre-tax earnings, pre-tax margin, net earnings, earnings per
share, return on stockholders’ equity and, except for Covered Employees, any other measurements the Committee shall deem appropriate. For purposes of the MIP, “operating earnings” will mean pre-tax earnings before non-recurring and
other unusual items reported separately in the Company’s income statement. 

  
 Each Participant will be notified in writing (“Participant Letter”) of his or her Bonus Award Opportunity, the Participant’s financial performance opportunities set for the Company and/or his or her
Profit Center, if applicable, and the portion of his or her Bonus Award Opportunity allocated to the Participant’s Individual Business Objectives, if any. The Participant Letter will specify the percentage of the Bonus Award Opportunity that
will be earned based upon the extent to which such objectives are achieved, subject to adjustment pursuant to Section 6. 
  
 At the end of each Plan Year, the Committee shall certify the awards that have been attained by each Participant. Except as otherwise provided in Section
14 hereof, no award may be payable to a Participant prior to such certification. 
  
 The Committee shall have the sole authority to set all financial performance opportunities and to modify such financial performance opportunities during the Plan Year as deemed appropriate; provided, however, that the
Committee may not modify the performance objectives during a Plan Year to increase the award payable to a Covered Employee. 
  

	9.	Individual Business Objectives. Except for Covered Employees, the Committee, at its sole discretion, may allocate a portion of a Participant’s Bonus Award Opportunity
for the Plan Year to the Participant’s Individual Business Objectives. Subject to Section 7, awards for the achievement of these objectives can range from 0% to 150% of the Bonus Award Opportunity assigned thereto. The Committee shall determine
the actual level of performance achieved by Participants for their Individual Business Objectives. 

  

	10.	Administration—Powers and Duties of the Committee. 

  
 a. Administration. The Committee shall be responsible for the administration of the MIP. The Committee, by majority action, is authorized to
interpret the MIP, to prescribe, amend, and rescind rules and regulations relating to the MIP, to provide for conditions and assurances deemed necessary or advisable to protect the interest of the Company and to make all other determinations
necessary or advisable for the administration of the MIP. Determinations, interpretations, or other actions made or taken by the Committee pursuant to the provisions of the MIP shall be final and binding and conclusive for all purposes and upon all
persons whomsoever. No member of the Committee shall be liable for any action or determination made in good faith with respect to the MIP or any annual award made hereunder. 
  

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 b. Amendment, Modification, and Termination of MIP. The Board of Directors or the Committee may at
any time terminate, and from time to time may amend or modify the MIP, except that no amendment by the Committee or the Board of Directors shall increase the amount of an annual award payable to a Covered Employee for performance achieved during the
Plan Year of such amendment or any previous Plan Year or allow a member of the Committee to be a Participant. Termination of the MIP shall not be effective with respect to the Plan Year in which it occurs. 
  

	11.	Payment of Annual Award. 

  
 a. Payment of Award. The Company shall pay the annual award to the Participant after the award has been determined and certified by the Committee,
but no later than December 15th of each year. 
  
 b. Changes
in Employment Status. Except as set forth in the following sentence, if a Participant’s employment terminates during a Plan Year or after the end of the Plan Year, but prior to the payment of the annual award, no award will be payable for
that Plan Year. If the Participant’s employment terminates during the Plan Year or after the end of the Plan Year but prior to the payment of the annual award due to death, disability or retirement, the Committee shall have the sole authority
and discretion to award a Participant (or his or her beneficiary) a portion of the annual award that would otherwise be payable with respect to that Plan Year. For purposes of the MIP, (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 Participant 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 a Participant becomes totally disabled as determined by a physician mutually acceptable to the Participant 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 Participant. 
  
 c. Deferral of Award. A Participant may, in writing filed with the Committee within 30 days following the receipt of his or her Participant Letter
(but in no event later than December 15, of the applicable Plan Year), elect to defer payment of all or a portion of his or her annual cash award so that it shall be paid in not more than ten equal annual installments commencing the January 15th, or
such other date selected by the Participant and approved by the Committee, following his or her (i) retirement or termination of employment with the Company or (ii) attainment of the age specified by the Participant. Any election to defer until the
attainment of a specified age shall have a payment commencement date no sooner than three years from the date of the applicable Participant Letter. Such election to defer shall designate the number of annual installments and the timing of such
installments and shall, except as provided below, be irrevocable. If such election fails to specify a time for payment, such payment shall be paid in a lump sum on the January 15th following the 

  

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Participant’s retirement or termination of employment with the Company. The deferral of any annual award shall not be less than $10,000, which amount
may be changed by the Committee from time to time in its sole discretion. 
  
 The Participant may request to receive an early distribution of all or a portion of any amounts deferred hereunder. A single-sum payment will be paid to Participants who request such distribution. An early
distribution paid to a Participant shall cause the Participant to forfeit all right, title or claim to an amount equal to 10% of such early distribution. Such 10% penalty shall first reduce the remaining balance of the amounts deferred hereunder
immediately following the early distribution and then shall reduce the early distribution payable to the Participant. 
  
 Notwithstanding the preceding paragraph, any request for an early distribution on account of an “unforeseeable emergency” shall not bear the 10%
early distribution penalty. For purposes of this Section 11(c), an unforeseeable emergency is a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined
in Section 152(a) of the Internal Revenue Code) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances beyond the control of the Participant. The determination of
whether a request for an early distribution is on account of an unforeseeable emergency shall be made by the sole discretion of the Committee, who shall apply the standards of Section 457 of the Internal Revenue Code. 
  
 Any early distribution on account of an unforeseeable emergency may not be
made to the extent such hardship is or may be relieved by (i) reimbursement or compensation by insurance or otherwise, (ii) liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe
financial hardship, (iii) obtaining a loan either within the provisions of any benefit plan of the Company or its subsidiaries or from a third party lender or (iv) cessation of deferrals under the MIP. Early distributions because of an unforeseeable
emergency will only be permitted to the extent reasonably needed to satisfy the emergency need in addition to any amounts necessary to pay any federal, state or local income taxes reasonably anticipated to result from the early distribution.

  
 d. Interest Payable on Deferred Payments. Any annual
award to which a Participant shall have elected deferred payment hereunder shall bear interest, compounded annually, at the prime rate of interest as such rate is set, from time to time, by Bank One, NA or its successor, but in no event shall such
rate exceed 10%. A separate accounting shall be maintained for each Participant with respect to the deferred payments hereunder. 
  
 e. Investment in Alberto-Culver Company Stock. As an additional alternative to lump sum cash payment, a Participant may elect, within 30 days
following the receipt of his or her Participant Letter (but in no event later than December 15, of the applicable Plan Year), to receive all or a portion of his or her annual award, less withholding taxes, in Alberto-Culver Company Class B Common
Stock, but this shall not constitute a deferred 

  

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payment for purposes of this MIP. Awards payable, in whole or in part, in Class B Common Stock shall be the number of shares of Class B Common Stock that a
Participant could have purchased based upon the closing price of such shares on the last trading day of the applicable fiscal year. 
  

	12.	Beneficiary. If a Participant dies before receiving the annual award and/or any previously deferred awards to which he or she is entitled to under the MIP, such awards shall
be paid to such person whom the Participant has designated by an instrument in writing, and in a form acceptable to the Board of Directors, executed by the Participant and delivered to the Board of Directors in care of the Secretary of the Company
during the Participant’s lifetime. Such designation may be revoked or modified by the Participant from time to time by an instrument in writing in a form acceptable to the Board of Directors, executed by the Participant and delivered to the
Board of Directors in care of the Secretary of the Company during the Participant’s lifetime. If no such designation is delivered to the Board of Directors, or if no such designated beneficiary is then living, the annual award shall be paid to
the surviving spouse of the Participant, or in the event there is no such surviving spouse, to the estate of the Participant. 

  

	13.	Withholding Payroll Taxes. To the extent required by the laws in effect at the time payments are made or earned, the Company shall withhold from the annual cash, stock or
deferred award made hereunder an amount necessary to satisfy any taxes required to be withheld for federal, state, or local governmental purposes. 

  

	14.	Change in Control. 

  
 a. Application. Notwithstanding any other provision of the Plan, the provisions of this Section 14 shall apply on and after the date that a Change
in Control (as defined in Section 14.d.1.) occurs. Any award payable to a Participant pursuant to this Section 14 for a Plan Year shall be in lieu of any award otherwise payable under the Plan. 
  
 b. Determination of Awards. Upon the occurrence of a Change in
Control, each Participant shall be eligible to receive an award (a “Change in Control Award”) equal to an amount calculated by multiplying (i) the bonus award percentage obtained by taking (a) the financial performance of the Company or
Profit Center, as the case may be, from the start of the applicable fiscal year to the date of the Change in Control (or, in the case of the date of the Change in Control not being as of a month end, to the end of the month immediately preceding the
date of the Change in Control) and comparing it to the performance during the same period in the preceding fiscal year and assuming such financial performance (increases or decreases in sales and pre-tax earnings or other relevant measurements) has
been achieved for the full fiscal year plus (b) the achievement of 100% of the Participant’s Individual Business Objectives, if any, for such Plan Year by (ii) the Base Salary of the Participant up to and including the date of the Change in
Control. The amount of any such Change in Control Award shall not be subject to revision or adjustment. 
  

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	 	c.	Payment of Awards. 

  
 1. Payment. Notwithstanding anything in this Plan to the contrary, each Participant (or Beneficiary thereof) shall be paid the Change in Control
Award, determined pursuant to Section 14.b., no later than 30 days after the date of the occurrence of the Change in Control (the “Payment Date”), in the form of a single lump sum cash payment. Such award shall not be subject to forfeiture
for any reason. 
  
 2. Interest on Late Payment. If any
amount to be paid to a Participant (or Beneficiary thereof) pursuant to Section 14.c.1. is not paid in full by the Payment Date, then the Company shall also pay to that Participant (or Beneficiary) interest on the unpaid amount for the period
beginning on the Payment Date and ending on the date that the amount is paid in full. The amount of interest to be paid to a Participant (or Beneficiary thereof) pursuant to this Section 14.c.2. shall be computed using an annual rate equal to two
percent above the prime rate from time to time in effect, as published under “Money Rates” in The Wall Street Journal, but in no event higher than the maximum legal rate permissible under applicable law. Payments received by a
Participant (or Beneficiary thereof) under the Plan shall be credited first against accrued interest until all accrued interest is paid in full before any such payment is credited against the amount payable pursuant to Section 14.c.1. 
  

	 	d.	Definitions. 

  
 1. The term “Change in Control” means: 
  
 A. The occurrence of any one or more of the following events: 
  

(i) 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 Securities Exchange Act of 1934, as amended (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 Section 14.d.2.); provided, however, that a Change in Control shall not result from an acquisition of Company
Voting Securities: 
  
 (a) directly from the Company, except as
otherwise provided in Section 14.d.1.B(i); 
  

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 (b) by the Company, except as otherwise provided in Section 14.d.1.B(ii); 
  
 (c) by an Exempt Person; 
  
 (d) by an employee benefit plan (or related trust) sponsored or maintained
by the Company or any corporation controlled by the Company; or 
  
 (e) 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 (a) and (b) of Section
14.d.1.A(iii) shall be satisfied. 
  
 (ii) The cessation for any
reason of the members of the Incumbent Board (as such term is defined below) to constitute at least a majority of the Board of Directors. 
  
 (iii) Consummation of a reorganization, merger or consolidation unless, in any such case, immediately after such reorganization, merger or consolidation:

  
 (a) 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 
  
 (b) 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. 
  
 (iv) 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: 
  

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 (a) 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 
  
 (b) 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. 
  
 (v) Approval by the stockholders
of the Company of a plan of complete liquidation or dissolution of the Company. 
  
 B. Notwithstanding the provisions of Section 14.d.1.A(i): 
  
 (i) no acquisition of Company Voting Securities shall be subject to the exception from the definition of Change in Control contained in clause (a) of Section 14.d.1.A(i) 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 
  
 (ii) for purposes of clause (b) of Section 14.d.1.A(i), 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. 
  
 2. The term
“Exempt Person” (and collectively, the “Exempt Persons”) means: 
  
 A. Leonard H. Lavin or Bernice E. Lavin; 
  

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 B. any descendant of Leonard H. Lavin and Bernice E. Lavin or the spouse of any such descendant;

  
 C. the estate of any of the persons described in Section
14.d.2.A. or B.; 
  
 D. any trust or similar arrangement for the
benefit of any person described in Section 14.d.2.A. or B.; or 
  
 E. the Lavin Family Foundation or any other charitable organization established by any person described in Section 14.d.2.A. or B. 
  
 3. The term “Incumbent Board” means those individuals who, as of October 24, 2002, constitute the Board of Directors, provided that:

  
 A. 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 
  
 B. 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 of Directors or the Exempt Persons shall be deemed to have been a member of the Incumbent Board. 
  

	15.	No Employment Rights. Nothing in this MIP shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment at any time for any
reason, or confer upon any Participant any right to continue in the employ of the Company or its Subsidiaries. 

  

	16.	Non-Assignability. Except as provided herein upon the death of a Participant, no right or interest of a Participant in any annual award shall be (a) assignable or
transferable in whole or in part, either directly or by operation of law or otherwise; (b) subject to any obligation or liability of any person; or (c) subject to seizure or assignment or transfer through execution, levy, garnishment, attachment,
pledge, bankruptcy, or in any other manner. 

  

	17.	Stockholder Adoption. The MIP was approved and adopted at the annual meeting of stockholders held on January 26, 1995 and re-approved at the annual meeting of stockholders
held on January 28, 1999. Unless otherwise determined by the Board of Directors, the MIP shall be submitted to stockholders for re-approval no less often than every five years. 

  

 11Copy of Alberto-Culver Company Employee Stock Option Plan of 1988, as amended

 Exhibit 10(b) 
  
 ALBERTO-CULVER COMPANY 
 EMPLOYEE STOCK OPTION PLAN OF 1988 
  
 (as amended through November 5, 2003) 
  

	1.	Purpose of ACSOP 

  
 The Alberto-Culver Company Employee Stock Option Plan of 1988 (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 15,400,000 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. After January 23, 2003, no more stock options shall be granted hereunder. 
  

	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 B 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.	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. 

  
 (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 

  

 2 

 
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 B common stock, or (iv) by a combination of these methods of payment. However, under no
circumstances may any Optionee deliver previously owned shares of 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 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 B common stock, (iv) by making an election to have the Company withhold shares of Class B common stock, or (v) 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 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 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 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 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. 

  

 3 

	 	(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 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. 
  

 4 

 (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 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. 
  

 5 

 (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 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. 
  

 6 

 (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, 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 
  

 7 

 (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. 
  

	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. 

  
 Neither the Committee
or the Board may amend this ACSOP to allow for the grant of stock options under this ACSOP after January 23, 2003 without the approval of stockholders. 
  

 8

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