Document:

2006 Shareholder Value Incentive Plan

 EXHIBIT 10 (l) 
 ALBERTO-CULVER COMPANY 
 2006 SHAREHOLDER VALUE INCENTIVE PLAN 
 I.   GENERAL 
 1.1     Purpose of the SVIP 
 The 2006 Shareholder Value Incentive Plan
(“SVIP”) of the Alberto-Culver Company (“Company”) is intended to advance the best interests of the Company by providing key salaried employees who have substantial responsibility for the Company’s management and growth with
additional incentives through the grant of awards based upon Total Shareholder Return as defined in Section 1.2(o), thereby: (1) more closely linking the interests of key salaried employees with shareholders, (2) increasing the
personal stake of such key salaried employees in the continued success and growth of the Company, and (3) encouraging them to remain in the employ of the Company. 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. 
 1.2     Definitions 
 The following definitions apply with
respect to the SVIP: 
  

	 	 (a)
	 “Change in Control” shall have the meaning assigned to such term in Section 3.8(b). 

  

	 	 (b)
	 “Committee” shall mean the Compensation and Leadership Development Committee of the Board of Directors of the Company or, if any member of the
Compensation and Leadership Development 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 (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 SVIP involving “officers” within the meaning of Rule 16a-1(f) under Section 16 (“Executive
Officers”) and Covered Employees as defined herein. 

  

	 	 (c)
	 Intentionally Omitted 

  

	 	 (d)
	 “Common Stock” shall mean the Common Stock of the Company, $.01 par value. 

  

	 	 (e)
	 “Covered Employee” shall mean a Participant who is a “covered employee” within the meaning of Section 162(m) of the Code during the plan
year at issue. 

  

	 	 (f)
	 “Disability” shall have the meaning provided in the Company’s applicable disability plan 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. 

  

	 	 (g)
	 “Exempt Person” and “Exempt Persons” shall have the meaning assigned to such terms in Section 3.8(c). 

  

	 	 (h)
	 “Incumbent Board” shall have the meaning assigned to such term in Section 3.8(d). 

  

	 	 (i)
	 “Ownership Threshold” shall mean the dollar value of the ownership guideline of the Common Stock for each Participant as set by the Committee from time
to time. In determining such ownership for each Participant, the Committee may conclusively rely on the books and records of the Company. 

  

	 	 (j)
	 “Participant” shall have the meaning assigned to it in Section 1.4. 

  

	 	 (k)
	 “Performance Period” shall mean any one, two or three consecutive fiscal years as set forth in the Participant’s Performance Unit Agreement,
unless accelerated pursuant to Section 3.8. 

  

	 	 (l)
	 “Performance Unit” shall have the meaning assigned to it in Section 2.1(a). 

  

	 	 (m)
	 “Performance Unit Agreement” shall have the meaning assigned to it in Section 2.1(b). 

  

	 	 (n)
	 “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. 

  

	 	 (o)
	 “Total Shareholder Return” or “TSR” means the percentage by which the ending per share price of common stock (determined as the average
closing price for the ten trading days prior to and including the last date of the applicable Performance Period), as adjusted for any stock split, reclassification, or other recapitalization, plus reinvested dividends, exceeds the beginning per
share price of the common stock (determined as the average closing price for the ten trading days prior to and including the first date of the applicable Performance Period). For purposes of the Company, TSR shall be computed using the Common Stock.

 1.3     Administration of the SVIP 
 The SVIP shall be administered by the Committee. The Committee shall have full and final authority in its discretion to interpret
conclusively the provisions of the SVIP, to adopt such rules and regulations for carrying out the SVIP and to make all other determinations necessary or advisable for the administration of the SVIP. No member of the Committee shall be liable for any

  

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action or determination made in good faith with respect to the SVIP or any Performance Unit thereunder. 
 The Committee shall meet at least once each fiscal year, and at such additional times as it may determine to designate the eligible
employees, if any, to be granted Performance Units under the SVIP, the amount of such Performance Units and the time when Performance Units will be granted. All Performance Units granted under the SVIP shall be on the terms and subject to the
conditions hereinafter provided. 
 1.4     Eligible Participants 
 Key salaried employees of the Company and its subsidiaries as determined by the Committee shall be eligible to participate in the SVIP
(any employee receiving a Performance Unit under the SVIP hereinafter referred to as a “Participant”). 
 1.5
    Limitation on Grants 
 The maximum amount payable under the SVIP to a single Participant may not
exceed $4.0 million per Performance Period. 
 II.   PERFORMANCE UNITS 
 2.1     Terms and Conditions of Grants 
  

	 (a)
	 Performance Units may be granted to Participants prior to or within the first ninety (90) days following the beginning of a Performance Period. Each
Performance Unit shall have a target value at the time of the grant of $1,000. Except as provided in the following sentence, each Participant shall be eligible, in his or her sole discretion, to receive such Participant’s award in cash or
shares of Common Stock or a combination thereof as set forth in Section 2.2, payable in each case following the end of a Performance Period, if the objectives established by the Committee, as set forth below, have been attained (unless the
Committee, pursuant to Section 2.1(c), determines that no award will be payable because the Company’s TSR is negative for that Performance Period). Participants owning less than their Ownership Threshold shall be required to receive 100%
of their award in Common Stock (each, a “Required Election”). Notwithstanding anything to the contrary contained in this Section 2.1(a), each Participant shall be eligible to receive an award (payable only in cash) in the event of a
Change in Control at such time as set forth in Section 3.8, if the Common Stock has met the objectives established by the Committee as set forth below. 

  

	 (b)
	 At the time Performance Units are granted to Participants, the Committee shall establish objectives based on (i) the percentile rank of the Common Stock of
the Company measured by Total Shareholder Return among the companies comprising the (a) Standard & Poor’s 500 Index, (b) Standard & Poor’s MidCap 400 Index, (c) Standard & Poor’s Small Cap 600
Index, (d) Standard & Poor’s Super Composite 1500 Index, (e) Russell 3000 Index, or (f) Russell 2000 Index (The index chosen by the Committee for a particular Performance Period shall be referred to as the
“Applicable Index”), (ii) operating earnings, (iii) operating 

  

 3 

	 	 
earnings margin, (iv) pre-tax earnings, (v) pre-tax earnings margin, (vi) net earnings, (vii) net earnings margin, (viii) net
earnings per share, (ix) sales, (x) pre-tax return on invested capital, (xi) gross profit, (xii) return on assets, (xiii) pre-tax return on equity, (xiv) gross profit margin, (xv) post-tax return on invested
capital, (xvi) post-tax return on equity, and (xvii) working capital. In addition, the Committee shall establish a matrix to determine the awards payable to Participants upon attainment of these objectives. Within 90 days following the
beginning of a Performance Period, each Participant shall receive an agreement which shall set forth the Performance Period, the number of Performance Units granted and the objectives and matrix established by the Committee (hereinafter referred to
as a “Performance Unit Agreement”). For purposes of the SVIP, “operating earnings” will mean pre-tax earnings before non-recurring and other unusual items reported separately in the Company’s income statement.

  

	 (c)
	 No award will be payable if the objective is Total Shareholder Return and the Company’s TSR as a percentile among the Applicable Index companies is less
than the 40th percentile. If the objective is Total Shareholder Return and the Company’s TSR is negative, the
Committee may, in its discretion, not pay any award or reduce an award otherwise payable, notwithstanding the fact that the Company’s TSR as a percentile among the Applicable Index companies is equal to or greater than the 40th percentile. If the attainment of the objective is not specifically shown in the matrix established by the Committee and set
forth in the Performance Unit Agreement the amount of the award shall be calculated by interpolating between the amounts shown. The maximum award payable per unit is 200% of the target value, subject to the limitations set forth in Section 1.5.

  

	 (d)
	 At the end of each Performance Period, or earlier pursuant to Section 3.8(a) in the event of a Change in Control the Committee shall certify the
Company’s attainment of the objectives established by the Committee for each Performance Period or, in the event of a Change in Control, the elapsed portion of the Performance Period in which such Change in Control shall have occurred. No award
may be paid to Covered Employees under this SVIP until the Committee has made such certification. 

 2.2
    Payment 
 Awards approved by the Committee will be distributed on or before the 15th day of the
third month following the end of the Performance Period or, in the event of a Change in Control, within 30 days following such Change in Control (but in the event of a Change in Control, such award shall be payable only in cash). 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 at the ending per share price of the Common Stock as calculated pursuant to Section 1.2(o) had such Participant used the
relevant percentage (pursuant to any election to receive Common Stock) of his or her award, less applicable withholding taxes, to purchase Common Stock. Elections to receive Common Stock in lieu of cash shall be submitted to the Committee at such
time as specified by the Committee, but in no case after the end of the relevant Performance Period. Except for Required Elections, failure to make a timely election shall be conclusively deemed to be an election to receive all cash. To the extent
necessary to secure an exemption under Section 16(b), voluntary elections by Executive 

  

 4 

 
Officers to receive Common Stock shall be approved by the Committee following the end of the Performance Period and prior to the distribution of such stock.
No more than 300,000 shares of Common Stock, as adjusted for stock dividends, stock splits, reverse stock splits, and recapitalizations, may be issued under this SVIP without the approval of the stockholders of the Company. These shares may consist,
in whole or in part, of authorized but unissued shares of stock or shares of stock reacquired by the Company and not reserved for any other purpose. 
 2.3     Termination of Employment 
  

	 (a)
	 If a Participant’s employment is terminated prior to the end of a Performance Period because of death, Retirement or Disability, the extent to which a
Performance Unit shall be deemed to have been earned and payable (solely in cash and without regard to any elections to the contrary) in accordance with the first sentence of Section 2.2 shall be determined by multiplying (a) the cash
value of the Performance Unit as calculated in accordance with the objectives established by the Committee and set forth in the Performance Unit Agreement by (b) a fraction, the numerator of which is the number of full calendar months such
Participant was employed during the Performance Period and the denominator of which is the total number of full calendar months in the Performance Period. 

  

	 (b)
	 If a Participant’s employment terminates for any reason other than because of death, Retirement or Disability, or a Change in Control (as defined in
Section 3.8), the Performance Unit and any and all rights to payment under such Performance Unit shall be immediately canceled and the Performance Unit Agreement with such terminated Participant shall be null and void.

 III.   ADDITIONAL PROVISIONS 
 3.1     Nature of Participant’s Interests 
 A Participant’s benefits under the SVIP shall at all times be reflected on the Company’s books and records as a general, unsecured and unfunded obligation of the Company, and the SVIP shall not give any person any right or
security interest in any asset of the Company nor shall it imply a trust or segregation of assets by the Company. 
 3.2
    Amendments 
 The Committee or the Board of Directors of the Company may amend the SVIP from time
to time, as it deems advisable and in the best interests of the Company, provided that no such amendment will adversely affect or impair previously issued grants. 
 3.3     Withholding 
 The Company shall
have the right to deduct from any distribution to any Participant an amount equal to the federal, state and local income taxes and other amounts as may be required by law to be withheld with respect to any grant or distribution under the SVIP.

  

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 3.4     Nonassignability 
 (a)    Except as expressly provided in the SVIP, the rights of a Participant and any awards under the SVIP may not be
assigned or transferred except by will and the laws of descent and distribution. 
 (b)    A Participant
may from time to time name in writing any person or persons to whom his or her benefit is to be paid if he or she dies before complete payment of such benefit has occurred. Each such beneficiary designation will revoke all prior designations by the
Participant with respect to the SVIP, shall not require the consent of any previously named beneficiary, and will be effective only when filed with the Secretary of the Company during the Participant’s lifetime. 
 (c)    If the Participant fails to designate a beneficiary before his or her death, as provided above, or if the
beneficiary designated by the Participant dies before the date of the Participant’s death or before complete payment of the Participant’s benefit has occurred, the Company shall pay the remaining unpaid portion of the Participant’s
benefit to the surviving spouse of the Participant, or in the event there is no surviving spouse, to the estate of the Participant. 
 3.5     Nonuniform Determinations 
 Determinations by the Committee under the SVIP
regarding determinations of the persons to receive grants, the form, amount and timing of such grants, and the terms and provisions of such grants and the agreements evidencing the same need not be uniform and may be made by it selectively among
persons who receive, or are eligible to receive, grants under the SVIP, whether or not such persons are similarly situated. 
 3.6     No Guarantee of Employment 
 Neither grants under the SVIP nor any action taken
pursuant to the SVIP shall constitute or be evidence of any agreement or understanding, express or implied, that the Company or its subsidiaries shall retain the Participant for any period of time or at any particular rate of compensation.

 3.7     Duration 
 The Committee or the Board of Directors will have the authority to terminate the SVIP at any time. Termination of the SVIP will have no impact on Performance Units granted prior to the SVIP
termination date. 
 3.8     Change in Control 
  

	 	 (a)(1)
	 Notwithstanding anything herein to the contrary but subject to the dollar limitation payable per Performance Period as set forth in Section 1.5, in the
event of a Change in Control, all Performance Units shall become payable in cash in accordance with the following sentence of this Section 3.8(a)(1) based on the attainment of the 

  

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applicable objectives as of the date of the Change in Control. A Performance Unit shall be payable pursuant to this Section 3.8(a)(1) in an amount equal
to the cash value of such Performance Unit calculated in accordance with the preceding sentence, multiplied by a fraction, the numerator of which is the number of months of the Performance Period in which the Change in Control shall have occurred
which shall have elapsed prior to such Change in Control, and the denominator of which is the length of the particular Performance Period in months. For purposes of the preceding sentence of this Section 3.8(a)(1), if at least six full calendar
months of a fiscal year within a Performance Period shall have elapsed, such entire fiscal year shall be deemed to have elapsed. 

  

	 	 (2)
	 If any amount to be paid to a Participant (or beneficiary thereof) pursuant to this Section 3.8(a) is not paid in full within 30 days following the Change
in Control (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 3.8(a)(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) pursuant to this Section 3.8(a)(2) 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 3.8(a)(1). 

  

	 	 (3)
	 Solely for the purposes of the computation of payments under the SVIP and notwithstanding any other provision of the SVIP, payments to any Participant under the
SVIP shall be reduced (but not below zero) so that the present value, as determined in accordance with Section 280G(d)(4) of the Code, of such payments plus any other payments that must be taken into account for purposes of any computation
relating to the Participant under Section 280G(b)(2)(A)(ii) of the Code, shall not, in the aggregate, exceed 2.99 times the Participant’s “base amount,” as such term is defined in Section 280G(b)(3) of the Code.
Notwithstanding any other provision of the SVIP, no reduction in payments under the limitation contained in the immediately preceding sentence shall be applied to payments under the SVIP which do not constitute “excess parachute payments”
within the meaning of the Code. Any payments in excess of the limitation of this Section 3.8(a)(3) or otherwise determined to be “excess parachute payments” made to any Participant under the SVIP shall be deemed to be overpayments
which shall constitute an amount owing from the Participant to the Company with interest from the date of receipt by the Participant to the date of repayment (or offset) at the applicable federal rate under Section 1274(d) of the Code,
compounded semi-annually, which shall be payable to the Company upon demand; provided, however, that no repayment shall be required under this sentence if in the written opinion of tax counsel satisfactory to the Participant and delivered to the
Participant and the Company such repayment does not allow such overpayment to be excluded for federal income and excise tax purposes from the 

  

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Participant’s income for the year of receipt or afford the Participant a compensating federal income tax deduction for the year of the repayment.

  

	 	 (b)
	 “Change in Control” means: 

  

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

  

	 	 (A)
	 The acquisition by any individual, entity or group (a “Person”), including any “person” within the meaning of Section 13(d)(3) or
14(d)(2) of the 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 3.8(c); provided, however, that a Change in Control shall not result from an acquisition of Company
Voting Securities: 

  

	 	 (i)
	 directly from the Company, except as otherwise provided in Section 3.8(b)(2)(A); 

  

	 	 (ii)
	 by the Company, except as otherwise provided in Section 3.8(b)(2)(B); 

  

	 	 (iii)
	 by an Exempt Person; 

  

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

  

	 	 (v)
	 by any corporation pursuant to a reorganization, merger or consolidation involving the Company, if, immediately after such reorganization, merger or
consolidation, each of the conditions described in clauses (i) and (ii) of Section 3.8(b)(1)(C) shall be satisfied. 

  

	 	 (B)
	 The cessation for any reason of the members of the Incumbent Board (as such term is defined in Section 3.8(d)) to constitute at least a majority of the
Board of Directors. 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	 (2)
	 Notwithstanding the provisions of Section 3.8(b)(1)(A): 

  

	 	 (A)
	 no acquisition of Company Voting Securities shall be subject to the exception from the definition of Change in Control contained in clause (i) of
Section 3.8(b)(1)(A) if such acquisition results from the exercise of an exercise, conversion or exchange privilege unless the security being so exercised, converted or exchanged was acquired directly from the Company; and

  

	 	 (B)
	 for purposes of clause (ii) of Section 3.8(b)(1)(A), if any Person (other than the Company, an Exempt Person or any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall, by reason of an acquisition of Company Voting Securities by the Company, become the beneficial owner of (x) 20% or more of the combined voting
power of the Outstanding Company Voting Securities 

  

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and (y) combined voting power of Outstanding Company Voting Securities in excess of the combined voting power of the Outstanding Company Voting
Securities held by the Exempt Persons, and such Person shall, after such acquisition of Company Voting Securities by the Company, become the beneficial owner of any additional Outstanding Company Voting Securities and such beneficial ownership is
publicly announced, such additional beneficial ownership shall constitute a Change in Control. 

  

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

  

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

  

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

  

	 	 (3)
	 the estate of any of the persons described in Section 3.8(c)(1) or (2); 

  

	 	 (4)
	 any trust or similar arrangement for the benefit of any person described in Section 3.8(c)(1) or (2); or 

  

	 	 (5)
	 the Lavin Family Foundation or any other charitable organization established by any person described in Section 3.8(c)(1) or (2).

  

	 	 (d)
	 “Incumbent Board” means those individuals who, as of November 1, 2006, constitute the Board of Directors, provided that:

  

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

  

	 	 (2)
	 no individual who was initially elected as a director of the Company as a result of an actual or threatened 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. 

  

	 	 3.9
	 Stockholder Approval. 

 The SVIP was last 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
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. 
  

 10Employee Stock Option Plan of 2006

 EXHIBIT 10 (m) 
 ALBERTO-CULVER COMPANY 
 EMPLOYEE STOCK OPTION PLAN OF 2006 
  

	 1.
	 Purpose of ACSOP 

 The Alberto-Culver Company Employee Stock Option Plan of 2006 (hereinafter called the “ACSOP”) is intended to encourage ownership of the Common Stock of Alberto-Culver Company (the “Company”) by eligible key employees of
the Company and its subsidiaries and to provide incentives for them to make maximum efforts for the success of the business. Options granted under the ACSOP will be non-qualified options (not incentive options as defined in Section 422 of the
Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder (the “Code”)). 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. 
  

	 2.
	 Eligibility 

 Key employees of the Company and its subsidiaries who perform services which contribute materially to the management, operation and development of the business (“Optionees”) will be eligible to receive options under the ACSOP.

  

	 3.
	 Administration 

 The Compensation and Leadership Development Committee of the Board of Directors of the Company (the “Committee”) shall have full power and authority, subject to the express provisions of the ACSOP, to determine the purchase price
of the stock covered by each option, the Optionees to whom and the time or times at which options shall be granted, the terms and conditions of the options, including the terms of payment thereof, and the number of shares of stock to be covered by
each option. The Committee shall have full power to construe, administer and interpret the ACSOP, and full power to adopt such rules and regulations as the Committee may deem desirable to administer the ACSOP. No member of the Committee shall be
liable for any action or determination made in good faith with respect to the ACSOP or any option thereunder. Determinations by the Committee under the ACSOP need not be uniform and may be made by it selectively among Optionees, whether or not such
persons are similarly situated. The determination of the Committee as to any disputed question arising under the ACSOP, including questions of construction and interpretation, shall be final, conclusive and binding. 
 The Committee may, in its discretion, delegate to a committee of member(s) of the Committee its authority with respect to such matters
under the ACSOP and options granted under the ACSOP as the Committee may specify. 
 The Committee shall be comprised solely
of members each of whom shall be an “outside director” within the meaning of Section 162(m) of the Code, and a “non-employee director” within the meaning of Section 16 (“Section 16”) of the Securities Exchange
Act of 1934 and the rules and 

  

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

	 4.
	 Number of Shares of Stock to be Offered 

 The Committee may authorize from time to time the issuance pursuant to the ACSOP of shares not to exceed 9,000,000 of the Company’s Common Stock in the aggregate plus the number of shares of the Company’s
Common Stock subject to Substitute Options as provided in Section 14, subject to adjustment under paragraph 10 hereof. Such shares of Common Stock which may be issued pursuant to options granted under the ACSOP may be authorized and unissued
shares or issued and reacquired shares as the Committee from time to time may determine. If any option granted under the ACSOP shall terminate or be surrendered or expire unexercised in whole or in part, the shares of stock so released from such
option may be made the subject of additional options granted under the ACSOP. In addition, any shares of Common Stock withheld to pay, in whole or in part, the amount required to be withheld under applicable tax laws in accordance with paragraph
7(d) hereof, may be made the subject of additional options granted under the ACSOP. 
  

	 5.
	 Option Price 

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

	 6.
	 Grant of Options 

 The Committee may not grant to any individual Optionee in any fiscal year an option or options with respect to more than 600,000 shares of Common Stock. 
  

	 7.
	 Term and Exercise of Options 

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

	 	 (i)
	 Except as otherwise provided in paragraphs 7(b), 8(a) or 11(a) hereof, no option may be exercised until the day preceding the anniversary date of the grant of
the option. 

  

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	 	 (ii)
	 Except as otherwise provided in paragraphs 7(b), 8(a) or 11(a) hereof, on the day preceding the anniversary date of the grant of the option in each of the four
calendar years immediately following the year of the grant of the option, the right to purchase twenty-five percent (25%) of the total number of shares of stock specified in the option shall accrue to the Optionee. Subject to paragraph 8
hereof, each such right to purchase may be exercised, in whole or in part, at any time after such right accrues and prior to the expiration of the term of the option. 

 (b) Notwithstanding the foregoing or paragraph 8 hereof, the Committee may in its discretion (i) specifically provide at the date of
grant for another time or times of exerciseability; (ii) at any time prior to the expiration or termination of any option previously granted, accelerate the exercisability of any option subject to such terms and conditions as the Committee
deems necessary or appropriate to effectuate the purpose of the ACSOP; or (iii) at any time prior to the expiration or termination of any option previously granted, extend the term of any option (including such options held by officers or
directors) for such additional period as the Committee, in its discretion, shall determine; provided that the term of an option shall not be extended beyond the later of the fifteenth day of the third month following the date on which the option
would otherwise have expired, or the last day of the calendar year in which the option would otherwise have expired (or such other date as may be permitted by final regulations issued under Section 409A of the Code). In no event, however, shall
the aggregate option period with respect to any option, including the original term of the option and any extensions thereof, exceed ten years. 
 (c) An option may be exercised (subject to the receipt of payment) by giving written notice to the Company specifying the number of shares to be purchased. The full purchase price for such shares may be paid
(i) in cash, (ii) by check, (iii) by delivery of previously owned shares of Common Stock, or (iv) by a combination of these methods of payment. However, under no circumstances may any Optionee deliver previously owned shares of
Common Stock obtained from the exercise of stock options under any option plan of the Company or the vesting of shares restricted under any restricted stock plan of the Company or the Management Bonus Plan during the six months immediately preceding
the exercise date. Payment must be received by the Company before any exercise is consummated. For purposes of the delivery of previously owned shares of Common Stock, the per share value of such shares shall be the Fair Market Value on the date of
exercise. 
 (d) At any time when an Optionee is required to pay to the Company an amount required to be withheld under
applicable tax laws in connection with the exercise of an option (calculated by taking the minimum statutory withholding rates for federal, foreign, state and local tax purposes including payroll taxes, applicable to the income generated by the
Optionee by such exercise), the Optionee may satisfy this obligation (i) in cash, (ii) by check, (iii) by delivery of previously owned shares of Common Stock, (iv) by making an election to have the Company withhold shares of
Common Stock, or (v) by a combination of these methods of payment, in each case having a value equal to the amount required to be withheld. The Optionee must specify the method of satisfying this obligation on or before the date of exercise.
The value of the shares to be withheld or delivered shall be based on the Fair Market Value of the Common Stock on the date of exercise. 
  

 3 

	 8.
	 Continuity of Employment 

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

	 	 (i)
	 Upon the death of an Optionee, all unvested options shall immediately vest and the executors or administrators of his or her estate or legatees or distributees
shall have the right during the one (1) year period following his or her death (but not after the expiration of the term of such option) to exercise any unexercised options. 

  

	 	 (ii)
	 Upon an Optionee’s termination of employment due to disability, all unvested options shall immediately vest and the Optionee’s option shall terminate
one (1) year after his or her termination of employment (but not after the expiration of the term of such option). For purposes of the ACSOP, “disability” shall have the meaning provided in the Company’s applicable long-term
disability plan and such disability continues for more than three months or, in the absence of such a definition, when an Optionee becomes totally disabled as determined by a physician mutually acceptable to the Optionee and the Committee before
attaining the age of retirement as defined below and if such total disability continues for more than three months. Disability does not include any condition which is intentionally self-inflicted or caused by illegal acts of the Optionee.

  

	 	 (iii)
	 If an Optionee’s termination of employment is due to retirement, all options (or portions thereof) which are (a) vested at the time of retirement may
be exercised for a period of two (2) years following retirement (but not after the expiration of the term of the option) and (b) unvested at the time of retirement may be exercised for a period of five (5) years from the date of grant
(but not after the expiration of the term of the option). Following retirement, options (or portions thereof) which are unvested at the time of retirement will continue to vest under such options’ vesting schedule for a period of five
(5) years following retirement. For purposes of the ACSOP, “retirement” shall be reached when an Optionee’s employment terminates and at the time of such termination the sum of such Optionee’s age and years of service as an
employee of the Company or any of its subsidiaries equals or exceeds 75 years (“Rule of 75”). 

  

	 	 (iv)
	 If an Optionee’s termination of employment is for any reason other than death, retirement or physical disability, the Optionee’s option shall terminate
three (3) months after his or her termination of employment (but not after the expiration of the term of such option). 

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

 4 

	 9.
	 Non-Transferability of Options 

 An option granted under the ACSOP shall not be assignable or transferable by an Optionee otherwise than by will or the laws of descent and distribution, and an option shall be exercisable during the lifetime of the
Optionee only by him or her. Subject to the following sentence, an option transferred by will or the laws of descent and distribution may only be exercised by the executors or administrators of his or her estate or any legatee or distributee during
the one year period following the Optionee’s death. In the event that at the time of the Optionee’s death the Optionee met the Rule of 75, an option transferred by will or the laws of descent and distribution may only be exercised by the
legatee or distributee during the period of time that the Optionee could have exercised such options at the time of his or her death and such options shall continue to vest as if the Optionee had not died. 
  

	 10.
	 Adjustment upon Change in Stock 

 Each option, the number and kind of shares subject to future options and the number of shares subject to options that may be granted to an Optionee in any fiscal year under the ACSOP shall be adjusted, as may be
determined to be equitable in the sole and absolute discretion of the Committee, in the event there is any change in the outstanding Common Stock, or any event that could cause a change in the outstanding Common Stock, including, without limitation,
by reason of a stock dividend, recapitalization, reclassification, issuance of Common Stock, issuance of rights to purchase Common Stock, extraordinary cash dividend, issuance of securities convertible into or exchangeable for Common Stock, merger,
consolidation, stock split, reverse stock split, spin-off, combination, exchange or conversion of shares, or any other similar type of event. The Committee’s determination of any adjustment pursuant to this paragraph 10 shall be final,
conclusive and binding. 
  

	 11.
	 Change in Control 

 (a) (1) Notwithstanding any provision of the ACSOP, in the event of a Change in Control, all outstanding options shall immediately be exercisable in full and shall be subject to the provisions of paragraph 11(a)(2) or 11(a)(3), to the
extent that either such paragraph is applicable. If neither paragraph 11(a)(2) or 11(a)(3) is applicable, in whole or in part, the Committee shall make such reasonable adjustments to the exercise price, number of shares subject to options, type of
shares subject to options, and/or any other term so that no outstanding option is adversely affected or impaired by such Change in Control. 
 (2) Notwithstanding any provision of the ACSOP, in the event of a Change in Control in connection with which the holders of shares of the Company’s Common Stock receive shares of common
stock that are registered under Section 12 of the Exchange Act, all outstanding options shall immediately be exercisable in full and there shall be substituted for each share of the Company’s Common Stock available under the ACSOP, whether
or not then subject to an outstanding option, the number and class of shares into which each outstanding share of the Company’s Common Stock shall be converted pursuant to such 

  

 5 

 
Change in Control. In the event of any such substitution, the purchase price per share of each option and/or the number of shares subject to options shall be
appropriately adjusted by the Committee, such adjustments to be made without an increase in the aggregate purchase price. 
 (3) Notwithstanding any provision in the ACSOP, in the event of a Change in Control in connection with which the holders of the Company’s Common Stock receive consideration other than shares of common stock that
are registered under Section 12 of the Exchange Act, each outstanding option shall be surrendered to the Company by the holder thereof, and each such option shall immediately be cancelled by the Company, and the holder shall receive, within ten
(10) days of the occurrence of such Change in Control, a cash payment from the Company in an amount equal to the number of shares of the Company’s Common Stock then subject to such option, multiplied by the excess, if any, of (i) the
greater of (A) the highest per share price offered to holders of common stock of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of the Company’s Common Stock on the
date of occurrence of the Change in Control over (ii) the purchase price per share of the Company’s Common Stock subject to the option. The Company may, but is not required to, cooperate with any person who is subject to Section 16 of
the Exchange Act to assure that any cash payment in accordance with the foregoing to such person is made in compliance with Section 16 of the Exchange Act and the rules and regulations thereunder providing for an exemption from
Section 16(b) of the Exchange Act. 
 (b) “Change in Control” means: 
 (1) The occurrence of any one or more of the following events: 
 (A) The acquisition by any individual, entity or group (a “Person”), including any “person” within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act of both (x) 20% or more of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”) and (y) combined voting power of Outstanding Company Voting Securities in excess of the combined voting
power of the Outstanding Company Voting Securities held by the Exempt Persons (as such term is defined in paragraph 11(c)); provided, however, that a Change in Control shall not result from an acquisition of Company Voting Securities:

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

 6 

 (iii) by an Exempt Person; 
 (iv) by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled
by the Company; or 
 (v) by any corporation pursuant to a reorganization, merger or consolidation involving
the Company, if, immediately after such reorganization, merger or consolidation, each of the conditions described in clauses (i) and (ii) of paragraph 11(b)(1)(C) shall be satisfied. 
 (B) The cessation for any reason of the members of the Incumbent Board (as such term is defined in paragraph 11(d)) to
constitute at least a majority of the Board of Directors of the Company (hereinafter called the “Board”). 
 (C) Consummation of a reorganization, merger or consolidation unless, in any such case, immediately after such reorganization, merger or consolidation: 
 (i) more than 60% of the combined voting power of the then outstanding securities of the corporation resulting from such
reorganization, merger or consolidation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals or entities who were the beneficial owners of the
combined voting power of all of the Outstanding Company Voting Securities immediately prior to such reorganization, merger or consolidation; and 
 (ii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Incumbent Board at the time of
the execution of the initial agreement or action of the Board providing for such reorganization, merger or consolidation. 
 (D) Consummation of the sale or other disposition of all or substantially all of the assets of the Company other than (x) pursuant to a tax-free spin-off of a subsidiary or other business unit of the Company or
(y) to a corporation with respect to which, immediately after such sale or other disposition: 
 (i)
more than 60% of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors is then beneficially owned, directly or 

  

 7 

 
indirectly, by all or substantially all of the individuals and entities who were the beneficial owners of the combined voting power of all of the Outstanding
Company Voting Securities immediately prior to such sale or other disposition; and 
 (ii) at least a
majority of the members of the board of directors thereof were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition. 
 (E) Approval by the stockholders of the Company of a plan of complete liquidation or dissolution of the Company.

 (2) Notwithstanding the provisions of paragraph 11(b)(1): 
 (A) no acquisition of Company Voting Securities shall be subject to the exception from the definition of Change in
Control contained in clause (i) of paragraph 11(b)(1)(A) if such acquisition results from the exercise of an exercise, conversion or exchange privilege unless the security being so exercised, converted or exchanged was acquired directly from
the Company; and 
 (B) for purposes of clause (ii) of paragraph 11(b)(1)(A), if any Person (other than
the Company, an Exempt Person or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall, by reason of an acquisition of Company Voting Securities by the Company, become
the beneficial owner of (x) 20% or more of the combined voting power of the Outstanding Company Voting Securities and (y) combined voting power of Outstanding Company Voting Securities in excess of the combined voting power of the
Outstanding Company Voting Securities held by the Exempt Persons, and such Person shall, after such acquisition of Company Voting Securities by the Company, become the beneficial owner of any additional Outstanding Company Voting Securities and such
beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control. 
 (c)
“Exempt Person” (and collectively, the “Exempt Persons”) means: 
 (1) Leonard H. Lavin
or Bernice E. Lavin; 
 (2) any descendant of Leonard H. Lavin and Bernice E. Lavin or the spouse of any such
descendant; 
 (3) the estate of any of the persons described in paragraph 11(c)(1) or (2); 
  

 8 

 (4) any trust or similar arrangement for the benefit of any person
described in paragraph 11(c)(1) or (2); or 
 (5) the Lavin Family Foundation or any other charitable
organization established by any person described in paragraph 11(c)(1) or (2). 
 (d) “Incumbent Board” means those
individuals who, as of November 1, 2006, constitute the Board, provided that: 
 (1) any
individual who becomes a director of the Company subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved either by the vote of at least a majority of the directors then comprising the
Incumbent Board or by the vote of at least a majority of the combined voting power of the Outstanding Company Voting Securities held by the Exempt Persons shall be deemed to have been a member of the Incumbent Board; and 
 (2) no individual who was initially elected as a director of the Company as a result of an actual or threatened
solicitation by a Person other than the Board or the Exempt Persons for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors, or any other actual or threatened solicitation of proxies or
consents by or on behalf of any Person other than the Board or the Exempt Persons shall be deemed to have been a member of the Incumbent Board. 
  

	 12.
	 Amendment and Discontinuance 

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

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

  

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

  

	 13.
	 Stockholder Adoption 

 The ACSOP 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
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 (the “Distributions”). 
  

 9 

	 14.
	 Substitute Awards 

 Upon the Distributions, the Committee shall be authorized to grant substitute options under the ACSOP (“Substitute Options”) to purchase Common Stock of the Company, in accordance with the terms of the Employee Matters Agreement,
dated as of June 19, 2006, among New Sally, Sally Holdings, Inc., Alberto-Culver Company, as then constituted, and the Company (the “Employee Matters Agreement”), to holders of options to purchase common stock of New Sally (“New
Sally Options”). The aggregate number of shares of Common Stock subject to Substitute Options shall not exceed the number determined by multiplying (i) the number of shares of New Sally common stock subject to the New Sally Options that
are converted into New Alberto Options pursuant to the Employee Matters Agreement by (ii) the ratio of the Alberto-Culver Pre-Distribution Stock Price over the New Alberto-Culver Post Distribution Stock Price, as such terms are defined in the
Employee Matters Agreement. The Committee shall determine the exercise price and number of shares of Common Stock subject to each Substitute Option in a manner that preserves the intrinsic value of the New Sally Option to which such Substitute
Option relates. The terms and conditions of each Substitute Option, including, without limitation, the expiration date of the option, the duration of the exercise period and the method of exercise shall be the same as those of the New Sally Option
to which the Substitute Option relates. 
  

 10

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