Document:

Form of Certificate

 Exhibit 4-a 
  
 [FACE OF NOTE] 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”) (55 WATER
STREET, NEW YORK, NEW YORK), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY, AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR CERTIFICATES IN DEFINITIVE REGISTERED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE (A) BY THE DEPOSITARY TO A NOMINEE THEREOF OR (B) BY A NOMINEE
THEREOF TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR (C) BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
  
 SEE REVERSE FOR CERTAIN DEFINITIONS 
  

	 NUMBER R-1
	 	$200,000,000
		
	 REGISTERED
	 	 

  
 ROCKWELL COLLINS, INC.

  
 4 3/4% Notes due 2013 
  
 CUSIP 774341AA9 
  
 Rockwell Collins, Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein referred
to as the “Company”), for value received, hereby promises to pay to CEDE & CO. or registered assigns, the principal sum of TWO HUNDRED MILLION DOLLARS ($200,000,000) on December 1, 2013, and to pay interest, semiannually on June 1 and
December 1 of each year commencing June 1, 2004 

  

 
on said principal sum at the rate of 4 3/4% per annum, from the June 1 or December 1, as the case may be, next preceding the date of this Security to which
interest has been paid, unless the date hereof is a date to which interest has been paid, in which case from the date of this Security, or unless no interest has been paid on the Securities, in which case from November 20, 2003, until payment of
said principal sum has been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after a May 15 or November 15, as the case may be, and before the following Interest Payment Date, this Security shall bear interest from
such Interest Payment Date; provided, however, that if the Company shall default in the payment of interest due on such Interest Payment Date, then this Security shall bear interest from the next preceding Interest Payment Date to which
interest has been paid, or, if no interest has been paid on the Securities, from November 20, 2003. The interest so payable on any Interest Payment Date will, subject to certain exceptions provided in the Indenture referred to on the reverse hereof,
be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the May 15 or November 15, as the case may be, next preceding such Interest Payment Date. The principal of and
interest on this Security are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts at the office or agency of the Company in the Place of Payment, and at
such other locations as the Company may from time to time designate. Any interest not punctually paid or duly provided for shall be payable as provided in said Indenture. 
  
 Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall
for all purposes have the same effect as though fully set forth at this place. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee by the manual signature of one of its authorized officers, this Security shall not be entitled to any benefit under the Indenture, or be
valid or obligatory for any purpose. 
  

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 IN WITNESS WHEREOF, THE COMPANY HAS CAUSED THIS INSTRUMENT TO BE DULY EXECUTED UNDER ITS CORPORATE SEAL.

  
 Dated: November 20, 2003 
  

	 ROCKWELL COLLINS, INC.

		
	By	 	  

	 	 	 Patrick E. Allen
 Vice President, Finance and Treasurer

  
 [Corporate Seal] 
  
 Attest                                     
    
  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
  
 This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture. 
  

	 CITIBANK, N.A.,
Trustee

		
	By	 	  

	 	 	Authorized Officer
		
	 Dated:
	 	  

  

 3 

 [REVERSE OF NOTE] 
  
 ROCKWELL COLLINS, INC. 
  
 4 3/4% Notes due 2013 
  
 This Security is one of a duly authorized issue of Securities of the Company designated as its 4 3/4% Notes due December 1, 2013 (Securities of such
series being hereinafter called the “Securities”), limited in aggregate principal amount to $200,000,000, issued under an Indenture dated as of November 1, 2001 (hereinafter called the “Indenture”), between the Company and
Citibank, N.A., as Trustee (hereinafter called the “Trustee”, which term includes any successor trustee under the Indenture with respect to the Securities of this series), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights thereunder of the Company, the Trustee and any Holder of the Securities, and the terms upon which the Securities are, and are to be, authenticated and delivered. 
  
 Except as otherwise provided in the Indenture, this Security will be issued
in global form only registered in the name of the Depositary or its nominee. This Security will not be issued in definitive form, except as otherwise provided in the Indenture, and ownership of this Security shall be maintained in book-entry form by
the Depositary for the accounts of participating organizations of the Depositary. 
  
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest
on this Security at the times, place and rate, and in the coin and currency, herein prescribed. 
  
 This Security is not entitled to the benefit of a sinking fund or any analogous provision. Securities will be redeemable as a whole at any time or in part
from time to time, at the option of the Company, on not less than 30 or more than 60 days’ notice mailed to Holders thereof, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities being redeemed and
(ii) the sum of the present values of the Remaining Scheduled Payments (as defined below), discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below)
plus 12.5 basis points, together, in each case, with accrued interest on the principal amount being redeemed to the Redemption Date. 
  
 “Treasury Rate” means, with respect to any redemption date (i) the yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor 

  

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publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury
securities adjusted to constant maturity under the caption “Treasury Constant Maturities”, for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life (as
defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to
the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Treasury Rate will be calculated by the
Independent Investment Banker on the third Business Day preceding the redemption date. 
  
 “Business Day” means any calendar day that is not a Saturday, Sunday or legal holiday in New York, New York and on which commercial banks are open for business in New York, New York. 
  
 “Comparable Treasury Issue” means the United States Treasury
security selected by the Independent Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities. 
  
 “Comparable Treasury Price” means (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
  
 “Independent Investment Banker” means J.P. Morgan Securities Inc.
or, if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company. 
  
 “Reference Treasury Dealer” means (i) J.P. Morgan Securities Inc., Banc of America Securities LLC, Citigroup
Global Markets Inc., UBS Securities LLC and Wachovia Capital Markets, LLC and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”), the Company shall substitute therefor 

  

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another Primary Treasury Dealer and (ii) any other Primary Treasury Dealer selected by the Company after consultation with the Independent Investment Banker.

  
 “Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
  
 “Remaining Scheduled Payments” means, with respect to each Security to be redeemed, the remaining scheduled
payments of the principal thereof and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however, that if such Redemption Date is not an Interest Payment Date with respect to such Security,
the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date. 
  
 Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Securities or any
portion thereof called for redemption. On or before any Redemption Date, the Company shall deposit with a Paying Agent (or the Trustee) money sufficient to pay the Redemption Price of and accrued interest on the Securities to be redeemed on such
date. If less than all the Securities are to be redeemed, the Securities to be redeemed shall be selected by the Trustee by such method as the Trustee shall deem fair and appropriate. 
  
 The Company may from time to time, without notice to or the consent of the registered holders of the Securities, create and
issue further notes ranking equally and ratably with the Securities in all respects (or in all respects except for the payment of interest accruing prior to the issue date of such further securities or except for the first payment of interest
following the issue date of such further securities), so that these further securities will be consolidated and form a single series with the Securities and have the same terms as to status, redemption or otherwise as the Securities. 
  
 As provided in the Indenture and subject to certain limitations therein set
forth, this Security may be registered for transfer on the Security Register of the Company, upon surrender of this Security for registration of transfer at the office or agency of the Company in the Place of Payment, and at such other locations as
the Company may from time to time designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or the Holder’s attorney duly
authorized in writing, and thereupon one or more new Securities, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
  

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 The Securities are issuable only as Registered Securities without coupons in the denominations of $1,000
and any integral multiple thereof. As provided in the Indenture, and subject to certain limitations therein set forth, Securities are exchangeable for a like aggregate principal amount of Securities of different authorized denominations, as
requested by the Holder surrendering the same. 
  
 No service
charge will be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 Prior to due presentment for registration of transfer of this Security, the
Company, the Trustee, the Security Registrar, the Paying Agent and any agent of any one thereof may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee, the Security Registrar, the Paying Agent nor any such agent shall be affected by notice to the contrary. 
  
 If an Event of Default with respect to the Securities shall occur, the principal of all the Securities may be declared due and payable in the manner and
with the effect provided in the Indenture. 
  
 The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company with respect to the Securities and the rights of the Holders of the Securities under the Indenture at any
time by the Company with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding. The Indenture also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof whether or not a notation of such consent or waiver is made upon this Security. 
  
 No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the 

  

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acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 
  
 The Company at its option, subject to the terms and conditions contained in
the Indenture, (a) will be discharged from any and all obligations in respect of the Securities (except for certain obligations to register the transfer and exchange of such Securities, to replace mutilated, destroyed, lost or stolen Securities, to
compensate, reimburse and indemnify the Trustee, to maintain an office or agency with respect to the Securities and to hold moneys for payment in trust) or (b) may omit to comply with certain restrictive covenants contained in the Indenture, in each
case upon irrevocable deposit with the Trustee in trust of money or U.S. government securities (as described in the Indenture) or a combination thereof, which through the payment of interest and principal in respect thereof in accordance with their
terms will provide money in an amount sufficient to discharge the principal of and interest on such Securities on the Stated Maturity of such principal or interest. 
  
 Except as otherwise defined herein, all terms used in this Security which are defined in the Indenture shall have the
meanings assigned to them in the Indenture. 
  
 ABBREVIATIONS

  
 The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

	 TEN COM -
	  	as tenants in common	 	 	  	 
				
	 TEN ENT -
	  	as tenants by the entireties	 	 	  	 
				
	 JT TEN -
	  	as joint tenants with right of survivorship and not as tenants in common	 	 	  	 
			
	UNIF GIFT MIN ACT -	  	 	 	Custodian
				
	 	  	 	 	
	  	

	 	  	 	 	(Cust)	  	 (Minor)

			
	 	  	 	 	 under Uniform Gifts to Minors
 Act                                      
                                        
                                        
       

	 	  	 	 	(State)	  	 

  
 Additional abbreviations may also be
used though not in the above list. 
  

  

 8 

 FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto 
  

  

  
 PLEASE INSERT SOCIAL SECURITY OR 
 OTHER IDENTIFYING NUMBER OF ASSIGNEE 
  

	
	 	 
		
	 	 	 
	

		
	 	 	 
	

 (Please print or typewrite name and address 
 including postal zip code of assignee) 
  

 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints 
  

 Attorney to transfer said Note on the books of the Company, with full power of
substitution in the premises. 
  

	Dated:
                                	  	 	  	 
			
	 	  	 	  	  

	 	  	 	  	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any
change whatever.

  

 9Management 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. 

  

 3 

	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. 
  

 4 

 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 
  

 5 

 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 
  

 6 

 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. 
  

 7 

	 	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); 
  

 8 

 (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: 
  

 9 

 (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; 
  

 10 

 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. 

  

 11

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