Document:

Deferred Compensation Plan for Non-Employee Directors

 EXHIBIT 10 (j) 
 ALBERTO-CULVER COMPANY 
 DEFERRED COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS 
 (As Amended and Restated) 
 (October
26, 2006) 
 1.      Purpose. The principal purposes of the Deferred Compensation Plan for
Non-Employee Directors (“Plan”) are to (i) benefit Alberto-Culver Company (“Company”) and its subsidiaries by offering its non-employee directors an opportunity to become holders of common stock, par value $.22 per share
(“Common Stock”), in order to enable them to represent the viewpoint of other stockholders of the Company more effectively and (ii) permit non-employee directors to defer all or a portion of the fees that they receive as directors of
the Company in the investments listed from time to time on Annex A hereto (the “Investments”). 
 2.      Plan Participants. Each director who is not an officer or employee of the Company or any of its subsidiaries shall be a participant under the Plan (“Participant”). 
 3.      Administration. The Plan shall be administered by the Board of Directors of the Company
(“Board”). The Board shall have full power to construe, administer and interpret the Plan. The Board’s decisions are final and binding on all parties. All fees and expenses incurred by the Plan in connection with its administration
shall be paid by the Company, except for investment management and other fees charged by advisors for managing the Investments. 
 4.
     Director Fee Elections. 
 (a)   Each Participant shall make one of the
following elections in accordance with Section 4(b) and/or 4(c) with respect to his or her annual retainer and meeting fees (collectively, “Director Fees”): 
 (i)   The Participant may elect to have the Director Fees paid to him or her in cash. Director Fees payable with respect to meetings will be paid as soon as reasonably practicable on or
after the date of each such meeting and the annual retainer shall be paid in equal installments on a quarterly basis; or 
 (ii)   For amounts deferred hereunder on or after January 1, 2005, the Participant may elect to defer receipt of all of the Director Fees in an account (the “Deferred Account”) until (a) one month after the
date on which his or her service on the Board terminates for any reason or (b) any specific date selected by the Participant. For those Participant’s who have elected to defer all or a portion of Director Fees to be paid during calendar
year 2005, such Participants may cancel or amend such elections on or before December 31, 2005. Participants may also elect to receive one lump sum payment or substantially equal annual installments (which may fluctuate during this period
depending on the performance of the Investments in the Deferred Account), not to exceed five installments, of all amounts deferred. In the absence of an election to the contrary, in whole or in part, deferred amounts will be paid in a single lump
sum one month after the date on which the Participant’s service on the Board terminates for any reason. Amounts deferred pursuant to this Section 4(a)(ii) will be deferred on a quarterly basis by taking the cash value of all Director Fees

 
payable during the quarterly periods ending on the last day of January, April, July and October. Such amounts will be invested in one or more of the
Investments pursuant to an investment form (“Investment Form”). 
 (iii)   The Participant may elect to
receive a distribution of the number of shares of Common Stock equal to the cash value of all Director Fees payable during the quarterly periods ending on the last day of March, June, September, and December, divided by the Fair Market Value of a
share of Common Stock on the last trading day of each such quarterly period. Each distribution shall be evidenced by a certificate representing the applicable number of shares of Common Stock, registered in the name of the Participant, and
distributed to the Participant on or as soon as reasonably practicable after each quarterly date noted in the preceding sentence. Such quarterly distributions of Common Stock will be made only in whole-share increments. The cash value of any
fractional share, based upon the Fair Market Value for the applicable quarterly period as calculated above, shall be paid to the Participant in cash at the time of the Common Stock distribution. 
 (b)   Except as provided in the next paragraph, on or before the end of each calendar year, each Participant shall complete a
form specifying the elections described above with respect to Director Fees (“Election Form”) and deliver the Election Form to the General Counsel of the Company (“General Counsel”). A Participant’s elections shall be in
increments of 25% with respect to the elections available in Section 4(a) above. Amounts deferred pursuant to Section 4(a)(ii) above may be allocated pursuant to an Investment Form to specific Investments in whole increments of 1% where
the amount deferred pursuant to Section 4(a)(ii) rather than the Director Fees paid shall be considered 100% for purposes of this allocation. 
 An Election Form shall remain in effect for subsequent calendar years until a subsequent Election Form is delivered to the General Counsel before the first day of the calendar year in which the new Election Form is to
become effective. Except as provided in Section 4(c), an initial Election Form or a subsequent Election Form shall only apply to those Director Fees payable to a Participant with respect to services rendered after the end of the calendar year
in which such initial or subsequent Election Form is delivered to the General Counsel. Except as provided in the second sentence of Section 4(a)(ii) and the first sentence of Section 6, any Election Form delivered by a Participant shall be
irrevocable with respect to any Director Fee covered by the elections set forth therein (but may be amended by a subsequent Election Form applicable to those Director Fees payable to a Participant with respect to services rendered after the end of
the calendar year in which such form was delivered to the General Counsel). If an Election Form is not in effect for a Participant for a calendar year (e.g., the Participant has not completed an initial Election Form), he or she shall be
deemed to have elected the option specified in this Section 4(a)(i) until a completed Election Form has been delivered to the General Counsel and has become effective. 
 (c)   Notwithstanding the preceding provisions of this Section 4, an election made by a Participant in the calendar year in which he or she first becomes eligible to participate in
the Plan may be made pursuant to an Election Form delivered to the General Counsel within 30 days after the date on which he or she initially becomes eligible to participate, and such Election Form shall be effective on the first day of the first
quarterly period commencing January 1, April 1, July 1, or October 1, as applicable, following the date such Election Form is delivered to the General Counsel. 

 5.     Participant Accounts. 
 (a)   Director Fees deferred pursuant to Section 4(a)(ii) shall be credited to the Participant’s Deferred Account
within two business days of receipt by Prudential Bank & Trust, FSB (“Prudential”), the trustee. Dividends paid on the Common Stock Fund portion of the Deferred Account (the “Common Stock Fund”) pursuant to
Section 4(a)(ii) shall be credited to the Guaranteed Income Fund. Notwithstanding anything to the contrary contained herein, on the first business day following the closing of the transactions contemplated by the Investment Agreement dated as
of June 19, 2006 among the Company, New Aristotle Company, Sally Holdings, Inc., New Sally Holdings, Inc. and CDRS Acquisition LLC (the “Investment Agreement”), each unit in the Common Stock Fund on that date shall represent one share
of New Aristotle Holdings, Inc. In addition, an amount equal to (i) the number of units in the Common Stock Fund on that date multiplied by the Fair Market Value of a share of common stock of New Sally Holdings, Inc. on that date plus
(ii) the number of units in the Common Stock Fund on that date multiplied by $25, shall be credited to the Guaranteed Income Fund. 
 (b)   Deferred Accounts pursuant to Section 4(a)(ii) shall be held in a Rabbi Trust (the “Trust”) by Prudential, as trustee. The Company shall be the beneficiary of the Trust, which in the
Company’s discretion, may contain the actual Investments. The Trust will be subject to the terms of a trust agreement between the Company and Prudential. Participants may elect to transfer between the Investments only during the ten business
days of each quarterly period beginning on the third business day of February, May, August and November. All transactions involving the transfer into or out of the Common Stock Fund must be approved in advance by either the Chairman, CEO or
Treasurer plus the General Counsel. Transfers into and out of Investments may only be done in whole increments of 1%. Transfers out of Common Stock may not be executed by selling shares to the public. Anything else to the contrary
notwithstanding, in no event shall any amount be deposited on or after August 17, 2006 into any trust, or otherwise set aside in an arrangement designated by the Internal Revenue Service, for the payment of benefits to any Participant during
any “restricted period” as defined in Section 409A(b)(3) of the Code, as amended by Section 116 of the Pension Protection Act of 2006. 
 6.      Distributions. 
 (a)   Subject
to Sections 6(b), 6(c) and 6(d), the entire balance of a Participant’s Deferred Account shall be paid on the date(s) specified in the Participant’s Election Forms made pursuant to Section 4, however a Participant may change this
election provided such change is in accordance with Section 409A of the Internal Revenue Code of 1986 (the “Code”). Except for the Common Stock Fund which will be payable in shares or cash at the option of the Participant, all amounts
in the Deferred Account shall be payable in cash on the dates specified in Section 4. The election to take the balance deferred in the Common Stock Fund in cash or Common Stock may be made at any time by the Participant (or in the event of the
Participant’s death, the appropriate person determined in accordance with Section 6(b)) before the date of such scheduled distribution. In the absence of a valid election, amounts deferred in the Common Stock Fund shall be paid in Common
Stock and cash for any fractional shares. 
 (b)   If a Participant’s service on the Board shall terminate by
reason of his or her death, or if he or she shall die after becoming entitled to a distribution hereunder, but prior to receipt of his or 

 
her entire distribution, all Investments in such Participant’s Deferred Account, except the Common Stock Fund which may be distributed in Common Stock
or cash at the election of the Participant’s designated beneficiary, spouse or estate, as described below, shall be distributed in cash as soon as reasonably practicable to such beneficiary or beneficiaries as such Participant shall have
designated by an instrument in writing last filed with the General Counsel prior to his or her death, or in the absence of such designation of any living beneficiary, to his or her spouse, or if not then living, to his or her estate. 
 (c)   For amounts deferred prior to January 1, 2005 (and the interest accrued thereon), the Participant may request an
early distribution of all or a portion of the balance of the Deferred Account (excluding any amounts in the Common Stock Fund) owed to the Participant. A single-sum payment will be paid to Participants who request such distribution. An early
distribution paid to a Participant shall result in a penalty equal to 10% of such early distribution. The Participant will forfeit all right, title and interest to an amount equal to such penalty. The early distribution shall be paid to the
Participant net of the 10% penalty and any withholding or other applicable taxes. 
 (d)   Notwithstanding any
other provisions of the Plan, (i) the entire balance of each Participant’s Deferred Account (other than the Common Stock Fund) shall be distributed to such Participant as soon as reasonably practicable after the date of the occurrence of a
Change in Control in the form of a single lump sum cash payment and (ii) shares of Common Stock and cash for any fractional shares equal to the entire number of shares of Common Stock contained in each Participant’s Common Stock Fund shall
be distributed as soon as reasonably practicable after the occurrence of the Change in Control. The cash value of any Director Fees earned but not yet invested or paid pursuant to Section 4(a), as of the date of a Change in Control, shall be
paid to the Participant in the form of a single lump sum payment as soon as reasonably practicable after the occurrence of a Change in Control. For purposes of this Section 6(d), the definition of a Change in Control shall be as defined by
Section 409A of the Code. 
 7.     Amendment, Suspension or Termination. The Board may, at any
time and from time to time, suspend or terminate the Plan, in whole or in part, or amend the Plan in such respects as the Board may deem proper and in the best interest of the Company or as may be advisable, provided, however, that no suspension,
termination or amendment shall be made which would (i) directly or indirectly deprive any current or former Participant or his or her beneficiaries of all or any portion of his or her Deferred Account as determined as of the effective date of
such amendment, suspension or termination, (ii) directly or indirectly reduce the balance of any Deferred Account held hereunder as of the effective date of such amendment, suspension or termination or (iii) except as permitted by
Section 409A of the Code, change the timing of any distributions under the Plan. No additional deferred Director Fees shall be credited to the Deferred Accounts of Participants after termination of the Plan. 
 8.     General Provisions. 
 (a)   No Participant shall have any right, title, or interest in any assets, accounts or funds that the Company may establish to aid in providing benefits under the Plan or otherwise.
The Plan does not create or establish any fiduciary relationships between the Company and the Participant or his or her beneficiary under the Plan, nor will any interest other than that of an unsecured creditor exist. 

 (b)   For all purposes of the Plan, the Fair Market Value of a share of common
stock as of a given date shall be the average of the high and low transaction prices of a share of common stock as reported in the New York Stock Exchange Composite Transactions on such date, or if there shall be no reported transaction for such
date, then on the next preceding date for which trades were reported. 
 (c)   Intentionally Omitted. 

(d)   Nothing contained in the Plan shall constitute a guaranty by the Company or any other person or entity, that the
assets of the Company will be sufficient to pay any benefit hereunder. No Participant or beneficiary shall have any right to receive a distribution under the Plan, except in accordance with the terms of the Plan. 
 (e)   Establishment of the Plan shall not be construed to give any Participant the right to be retained as a member of the
Board. 
 (f)   Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer,
pledge, anticipate, mortgage or otherwise encumber, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be nonassignable and
nontransferable. No part of the amounts payable shall, prior to actual payment, be subject to garnishment, seizure or sequestration for the payment of any debts owed by a Participant or any other person, nor be transferable by operation of law in
the event of a Participant’s or any other person’s bankruptcy or insolvency. 
 (g)   The Board, General
Counsel, employees, officers and directors of the Company shall not be held liable for, and shall be indemnified and held harmless by the Company against, any loss, expense or liability relating to the Plan which arises from any action or
determination made in good faith. 
 (h)   The Company shall withhold from any deferred or nondeferred Director
Fee, or any distributions made pursuant to the Plan, any amounts required by applicable federal, state and local tax laws and regulations thereunder to be withheld. 
 (i)   If any provision of this Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be
construed and enforced as if such illegal or invalid provision had never been inserted herein. 
 (j)   Any notice
under the Plan shall be in writing and shall be personally delivered, mailed postage paid as first class U.S. Mail or sent by reliable overnight courier. Notices shall be deemed given when actually received by the recipient. Notices shall be
directed to the Company at its offices at 2525 Armitage Avenue, Melrose Park, Illinois 60160-1163, Attention: General Counsel; to a Participant at the address stated in his or her Election Form; and to a beneficiary entitled to benefits at the
address stated in the Participant’s beneficiary designation, or to such other addresses any party may specify by notice to the other parties. 
 (k)   This Plan shall be governed by and construed in accordance with the laws of the State of Illinois, without regard to its conflict of laws principles.Management Incentive Plan

 EXHIBIT 10 (k) 
 ALBERTO-CULVER COMPANY 
 MANAGEMENT INCENTIVE PLAN 
  

	 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. Solely for purposes of Section 162(m) of the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder (the
“Code”), this MIP shall be deemed a continuation of and a successor to the Alberto-Culver Company Management Incentive Plan, as in effect prior to the date that the Delaware corporation having the name or previously having the name New
Sally Holdings, Inc. (“New Sally”) distributes the then outstanding Common Stock of the Company to holders of common stock, $.01 par value per share, of New Sally. 

  

	 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 effective date of the MIP is November 16, 2006. 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 a maximum of 200% of Base Salary. 

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

  

	 	 d.
	 “Committee” means the Compensation and Leadership Development 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 Code or (ii) a “non-employee director” within the meaning of Section 16 (“Section 16”) of the Securities
Exchange Act of 1934 and the rules and regulations thereunder (“Exchange Act”), 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. At the time of approval by the stockholders of the Company, the name of the Company was New
Aristotle Holdings, Inc. Following the time of approval, the name of the Company will be changed to Alberto-Culver Company. 

  

	 	 f.
	 “Covered Employee” means a Participant who is a “covered employee” within the meaning of Section 162(m) of the Code 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, (ii) the Chief Executive Officer of the Company, or (iii) the Committee. 

  

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

  

	 	 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 may be (i) 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, (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.), or (iii) other than for Covered Employees, increased 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. 

  

	 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. 

  

	 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 no later than the 90th day of the applicable Plan Year. Each Participant who is hired after
December 1st of a Plan Year will be assigned financial performance award opportunities for the Company and/or
the Profit Center for that Plan Year no later than the 30th day following his first day of employment. If the
Committee fails to timely assign financial performance 

  

 3 

	 	 
award opportunities, a Participant shall not be allowed to defer payment of his or her award pursuant to an election under Section 11.c to the extent
such deferral would result in additional taxes under Section 409A of the Code. 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. 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. For any Participant determined to be a Covered Employee, no such bonus will be paid for Individual Business Objectives for that fiscal year.

  

	 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 by the Committee under the MIP need not be uniform and may be made by it selectively among Participants, whether or not such persons are similarly situated. 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 

  

 4 

 
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. 
 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 be reached when a Participant’s
employment terminates and at the time of such termination the sum of such Participant’s age and years of service as an employee of the Company or any of its subsidiaries equals or exceeds 75 years 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 who is otherwise eligible to participate in
the Executive Deferred Compensation Plan may, in writing filed with the Committee within 30 days following his or her employment with the Company for employees hired on or after November 15 of the applicable Plan Year or 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) for employees hired prior to November 15 of the applicable Plan Year, elect to defer payment of all or a portion
of his or her annual cash award into the Company’s Executive Deferred Compensation Plan and pursuant to the provisions thereof (except as provided in Section 14.c). If a Participant is hired on or after March 1 of a Plan Year and
makes the deferral election within 30 days after his date of hire, but on or after April 1, the deferral 

  

 5 

 
election shall apply only to the portion of his cash award earned after the date of the deferral election, determined on a daily proration basis. A
Participant may elect to change his or her election to defer at any time prior to April 1 of the applicable Plan Year, provided the amount of such bonus is not substantially certain to be paid and readily ascertainable, and provided further
that such Participant began his or her employment on or before the beginning of the applicable Plan Year. 
 d.         Interest Payable on Deferred Payments. The rate of interest on awards shall be governed by the Executive Deferred Compensation Plan. 
 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 Common Stock, but this shall not constitute a deferred payment for purposes of this MIP. Awards payable, in whole or in part, in Common Stock shall be the number of shares of 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 executed by the Participant and delivered to 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 executed by the Participant and delivered to the Secretary of the Company during the Participant’s lifetime. If no such designation is delivered to the
Secretary of the Company, 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, foreign, state, or local governmental purposes and any additional amounts for taxes as requested by a Participant.

  

	 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 

  

 6 

 
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 (whether or not the Plan Year has been completed at the time of the Change in Control) 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. 
 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, provided that any amounts deferred pursuant to Section 11.c but not yet payable hereunder, shall be paid on the Payment Date only if a change in control as defined
by Section 409A of the Code (“Section 409A Change in Control”) has occurred. Change in Control Awards 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, or properly credited in
accordance with the second sentence of Section 14.c.1, in each case 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 or properly credited, as the case may be. 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”), 

  

 7 

 
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); 
 (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 
  

 8 

 (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: 
 (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 

  

 9 

 
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; 
 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 November 1,
2006, 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. 

  

 10 

	 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 by the stockholders of the Company on November 13, 2006 and shall become effective on the date that the
Delaware corporation having the name or previously having the name New Sally distributes the then outstanding Common Stock of the Company to holders of common stock, $.01 par value per share, of New Sally. At the time of approval by the stockholders
of the Company, the name of the Company was New Aristotle Holdings, Inc. Following the time of approval, the name of the Company will be changed to Alberto-Culver Company. 

  

 11

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