Document:

EXHIBIT 10.22

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “AGREEMENT”), dated as of March 10, 2003 (the “EFFECTIVE
DATE”), is made and entered by and between Carol Hannah (the “EXECUTIVE”) and
HERBALIFE INTERNATIONAL, INC., a Nevada corporation (“PARENT”), and HERBALIFE
INTERNATIONAL OF AMERICA, INC., a California corporation (“OPERATING COMPANY”)
(collectively, Parent and Operating Company are referred to herein as the “COMPANY”).
This Agreement amends, restates and replaces in its entirety that certain
Employment Agreement among the parties hereto dated as of August 20, 2000,
as the same may have been amended or modified.

 

RECITALS

 

A.                                   The Company is
engaged primarily in the distribution of weight management, nutritional and
personal care products through a “multi-level” marketing system.

 

B.                                     The Company
desires to be assured of the services of Executive by employing Executive in
the capacity and on the terms set forth below.

 

C.                                     Executive
desires to commit himself or herself to serve the Company on the terms herein
provided.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants
and agreements set forth below, the parties hereto agree as follows:

 

1.                                       Employment
Period. The Company shall continue to employ Executive and Executive shall
continue in the employ of the Company for the period commencing on the
Effective Date and ending on the date that is three (3) years thereafter,
unless sooner terminated in accordance with the provisions of this Agreement
(the “TERM”). After the Term, the parties may (but shall be under no obligation
to), by written agreement, renew or extend the term of the Agreement for an
additional period or periods. The term of each renewal period of this Agreement
is referred to herein as a “RENEWAL PERIOD”; and references to the “TERM” shall
mean the period beginning on the Effective Date and ending on the date of
termination of Executive’s services for the Company, whether at the end of the
Term or a Renewal Term or otherwise in accordance with the provisions of this
Agreement. Upon expiration of the Term, except as expressly set forth herein
(including in Section 5 and Section 6), this Agreement and all of its
provisions shall terminate and shall cease to have any force or effect.

 

2.                                       Duties.

 

(a)                                  During the Term,
Executive shall serve as a Co-President of the Company, with such authority and
duties as are assigned to Executive from time to time by the Board of Directors
of Parent (the “BOARD”) or the Chief Executive Officer of Parent (“CEO”) that
are substantially similar to the authority and duties currently vested in
Executive by the Board. Each of the undersigned acknowledges and agrees that
the Company may, subsequent to the Effective Date, hire a CEO, and that any
such CEO hiring may result in a readjustment of Executive’s title, authority,
duties and responsibilities for the Company; provided that in no event shall
Executive’s title, authority, duties and responsibilities for the Company be
reduced, in the aggregate, below the level of such title, authority, duties and
responsibilities vested in Executive in his or her capacity as

 

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the
Executive Vice President of Sales of the Company prior to his or her promotion
to Co-President. Executive will work principally in the Los Angeles, California
offices of the Company, but will also conduct such business travel as is
reasonably required to fulfill his or her duties hereunder.  During the Term, Executive shall report to
the Board and/or the CEO.

 

(b)                                 During the Term,
Executive shall devote substantially all his  or her working time, attention, skill and
efforts to the  business and
affairs of the Company, will use his or her best  efforts to promote the success of the Company’s
business, and  shall not enter
the employ of or serve as a consultant to, any  other company; provided, however, the
foregoing shall not  preclude
Executive from devoting a reasonable amount of time  to managing Executive’s investments and
personal affairs and  to charitable
and civic activities.

 

3.                                       Compensation and
Related Matters.

 

(a)                                  Salary. During
the Term, Executive shall receive a salary at  the per annum rate of Seven Hundred Twelve
Thousand Five  Hundred Dollars
($712,500), payable semi-monthly or otherwise  in accordance with the Company’s payroll
practices for senior  executives.
Executive’s annual base salary shall be subject to  review from time to time for possible
increases by the Board.Executive’s base salary, as increased from time to time, shall  be referred to as the “BASE
SALARY.”

 

(b)                                 Expenses. The
Company shall reimburse Executive for all  reasonable travel and other reasonable
out-of-pocket businessexpenses incurred by Executive in the performance of his or  her duties under this
Agreement upon evidence of payment and  otherwise in accordance with the Company’s
policies and  procedures in
effect from time to time.

 

(c)                                  Employee
Benefits. During the Term, Executive shall be  entitled to participate in or receive benefits
under each  benefit plan or
arrangement made available by the Company to  its senior executives (including, without
limitation, those  relating to
group medical, dental, vision, long-term  disability and life insurance) on terms no

 

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less
favorable than those generally applicable to senior  executives of the Company, subject to and on a
basis  consistent with
the terms, conditions and overall  administration of such plans and subject to
the Company’s  right to modify,
amend or terminate any such plan or  arrangement. Executive’s individual
participation levels inthe Company’s and its affiliates’ equity compensation  arrangements (including stock
option plans) will be determined  by the Board in its sole discretion. In the
event the Company  or its
affiliates decide to grant Executive any stock options  or other equity compensation,
any such stock options or equity  compensation will be made pursuant to separate
written  agreements
between Executive and the Company or its  affiliates.

 

(d)                                 Bonus.
Notwithstanding any provision in this Agreement to the  contrary, Executive agrees
that he or she shall cease to be a  participant of and shall not be entitled to
any additional compensation or payments under the 1994 Performance-Based  Annual Incentive Compensation
Plan (the “1994 PLAN”) for any  period after June 30, 2002 and that the
termination of  participation in
the 1994 Plan will not cause any additional  benefit to be payable to Executive as a result
of such  termination.
Executive and the Board have separately  established Executive’s bonus opportunity and
bonus objectives  for the calendar
year ended December 31, 2003. For all  calendar years during the Term following the
calendar year  ended
December 31, 2003, Executive’s bonus opportunity will be  not less than the amount of
Executive’s bonus opportunity for  the calendar year ended December 31,
2003, it being agreedthat Executive’s individual bonus objectives will be  established on an annual
basis by the Board in its good faith  discretion.

 

(e)                                  Vacation.
Executive shall be entitled to five (5) weeks paid  vacation during each year of the Term. Unused
vacation in any  year shall carry
over to subsequent years without limitation,  unless otherwise provided in a vacation pay
policy that is  generally
applicable to the senior executives of the Company.

 

(f)                                    Deductions and
Withholdings. All amounts payable or which  become payable hereunder shall be subject to
all deductions  and withholding
required by law.

 

4.                                       Termination.
Executive’s services for the Company and the Term of this  Agreement may be terminated
under the following circumstances:

 

(a)                                  Death. Executive’s
services hereunder shall terminate upon his  or her death. In the case of Executive’s
death, the Company  shall pay (in
accordance with Section 4(f) hereof) to  Executive’s beneficiaries or estate, as
appropriate, (i) his  or her then
current accrued and unpaid Base Salary through his  or her date of death as well as 100% of any
accrued and unpaid  bonus for any
years preceding the year of termination (it  being expressly agreed that except as
hereinafter provided,

 

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Executive
shall have no rights to receive a bonus in respect  of the year in which termination occurs), (ii)
an additional  amount equal to
one year of Base Salary and Executive’s bonus  for the year of termination (it being agreed
that Executive’s  bonus for the
year of termination to be paid under this  Section 4(a) shall be deemed to be equal
to one year of Base  Salary), and
(iii) other benefits and payments (including,  without limitation, reimbursement of expenses
incurred  conducting
Company business pursuant to Section 3(b)) to which  Executive is then entitled
hereunder. Executive, his  beneficiaries or his estate, as appropriate, shall be entitled  to no other compensation
under this Agreement following, or as  a result of, a termination under these
circumstances.

 

(b)                                 Disability.

 

(i)                                     If a Disability
(as defined below) of Executive  occurs during the Term, the Board may give
Executive  written notice
of its intention to terminate his or  her employment. In such event, Executive’s
services  with the Company
shall terminate as of the date of  such notice. In the case of a termination as a
result of a Disability, the Company shall pay (in accordance  with Section 4(f)
hereof) to Executive (i) his or her  then current accrued and unpaid Base Salary
through  the effective
date of his or her termination as well  as 100% of any accrued and unpaid bonus for
any years  preceding the
year of termination (it being expressly  agreed that except as hereinafter provided,
Executive  shall have no
rights to receive a bonus in respect of  the year in which termination occurs), (ii) an
additional amount equal to one year of Base Salary  and Executive’s bonus for the year of
termination (it  being agreed
that Executive’s bonus for the year of  termination to be paid under this
Section 4(b) shallbe deemed to be equal to one year of Base Salary),  and (iii) other benefits and
payments (including,  without
limitation, reimbursement of expenses  incurred conducting Company business pursuant
to  Section 3(b))
to which Executive is then entitled  hereunder. Executive and his or her
beneficiaries, as  appropriate, shall
be entitled to no othercompensation under this Agreement following, or as a  result of, a termination
under these circumstances.

 

(ii)                                  For the purpose
of this Section 4(b), “DISABILITY”  shall mean Executive’s inability to perform
his or  her duties for the
Company on a full-time basis for  120 consecutive days or a total of 180 days in
any  twelve (12)
month period as reasonably determined by  the Board.

 

(c)                                  Termination by
the Company for Cause. The Board may terminate  Executive’s services hereunder for Cause (as
defined below) at  any time upon
written notice to Executive. In such event,  Executive’s services shall terminate as of the
date of

 

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such
notice. In the case of Executive’s termination for Cause,  the Company shall pay (in
accordance with Section 4(f) hereof)  to Executive (i) his or her then current
accrued and unpaid  Base Salary
through the effective date of his or her  termination as well as 100% of any accrued and
unpaid bonus  for any years
preceding the year of termination (it being  expressly agreed that Executive shall have no
rights to  receive a bonus
in respect of the year in which termination  occurs) and (ii) other benefits and payments
(including,  without
limitation, reimbursement of expenses incurred  conducting Company business pursuant to
Section 3(b)) to which  Executive is then entitled hereunder. Executive and his or her  beneficiaries, as
appropriate, shall be entitled to no other  compensation under this Agreement following,
or as a result  of, a
termination under these circumstances. For purposes of  this Agreement, the Board
shall have “CAUSE” to terminate  Executive’s services hereunder in the event of
any of the  following acts
or circumstances: (i) Executive’s commission of  a felony or any other act or omission
involving dishonesty,disloyalty or fraud with respect to the Company or any of its  affiliates or any of their
distributors, suppliers or other  material business relations; (ii) conduct by
Executive which  could reasonably
be expected to bring the Company or any of  its affiliates into substantial public
disgrace or disrepute;(iii) Executive’s substantial and repeated failure to perform Executive’s
lawful duties as contemplated in Section 2 of this  Agreement; (iv) Executive’s
gross negligence or willful  misconduct with respect to any material aspect of the business  of the Company or any of its
affiliates; (v) Executive’s  failure to comply in any material respect (including, without  limitation, the making of any
certifications requiredthereunder) with applicable laws, including, without  limitation, the Securities
Act of 1933, as amended, the  Securities Exchange Act of 1934, as amended, the  Sarbanes-Oxley Act of 2002,
as amended, or any of the rules  and regulations promulgated under any of the
foregoing laws;  or (vi) any
material breach of this Agreement or any material  breach of any other written agreement between
Executive and  the Company’s
affiliates governing Executive’s equity  compensation arrangements (i.e., any agreement
with respect to  Executive’s
stock and/or stock options of any of the Company’s  affiliates).

 

(d)                                 Termination by
Executive. Executive may terminate his or her  employment hereunder for any reason or no
reason, provided  that Executive
first gives the Company a written notice of  termination at least fifteen (15) calendar
days prior to the  effective date
of any such termination. In the event Executive  terminates his or her employment, the Company
shall pay (in  accordance with
Section 4(f) hereof) to Executive (i) his or  her current accrued and unpaid Base Salary
through the  effective date
of his or her termination as well as 100% of  any accrued and unpaid bonus for any year
preceding the year  of termination
(it being expressly agreed that Executive shall  have no rights to receive a bonus in respect
of the year in  which termination
occurs) and (ii) other benefits and payments  (including,

 

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without
limitation, reimbursement of expenses incurred  conducting Company business pursuant to
Section 3(b)) to which  Executive is then entitled hereunder. Executive and his or her  beneficiaries, as applicable,
shall be entitled to no other  compensation under this Agreement following, or as a result  of, a termination under these
circumstances.

 

(e)                                  Termination by
the Company Without Cause. The Board may  terminate Executive’s services hereunder
without Cause at any  time upon
written notice to Executive. In such event,  Executive’s services shall terminate as of the
date of such  notice. In the
event Executive’s services hereunder are  terminated by the Company without Cause, and
subject to  Executive’s
compliance with the terms of Section 5 and Section 6 herein, the
Company shall pay (in accordance with Section 4(f) hereof) to Executive
(i) his or her then current accrued  and unpaid Base Salary through the effective
date of his  termination as
well as 100% of any accrued and unpaid bonus  for any years preceding the year of
termination (it beingexpressly agreed that except as hereinafter provided,  Executive shall have no
rights to receive a bonus in respect  of the year in which termination occurs), (ii)
an additional  amount equal to
one year of Base Salary and Executive’s bonus  for the year of termination (it being agreed
that Executive’s  bonus for the
year of termination to be paid under this  Section 4(e) shall be deemed to be equal
to one year of Base  Salary), and
(iii) other benefits and payments (including, without limitation, reimbursement
of expenses incurred  conducting
Company business pursuant to Section 3(b)) to which  Executive is then entitled
hereunder. In addition, during the  one (1) year period immediately following the
date of  termination, the
Company shall continue to afford to Executive  the group medical, dental, vision, long-term
disability and  life insurance
specified in Section 3(c) above. Executive and  his or her beneficiaries, as applicable, shall
be entitled to  no other
compensation under this Agreement following, or as a  result of, a termination under these
circumstances. Executiveshall have no duty to seek to mitigate the above severance  benefits in the event of
termination hereunder without Cause,  and, subject to Executive’s compliance with
Section 5 and  Section 6
herein, any compensation derived by Executive from  alternative employment or otherwise shall not
reduce the  Company’s
obligations hereunder.

 

(f)                                    Payments to Executive.
Subject to Executive’s continuing  compliance with the provisions of
Section 5 and Section 6  herein, any amounts payable to Executive upon
his or her  termination of
employment under this Section 4 shall be paid  at such times as such amounts would have
otherwise been  payable to
Executive had Executive’s employment not been  terminated.

 

(g)                                 Resignation of
Offices. Promptly following any termination of  Executive’s employment with the Company (other
than by reason  of Executive’s
death),

 

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Executive
shall promptly deliver to the Company reasonably  satisfactory written evidence of Executive’s
resignation as a  member of the
board of directors and/or any office (e.g.,  office of Co-President) with the Company or
any of its  affiliates. The
Company shall be entitled to withhold payment  of any amounts otherwise due pursuant to this
Section 4 until  Executive has
complied with the provisions of this Section 4(g).

 

(h)                                 Release. As a
precondition to the Company’s obligations to  make any of the payments specified in Sections
4(a), 4(b) or  4(e) of this
Agreement, Executive or his or her guardian,  estate or heirs, as appropriate, shall execute
and deliver to  the Company an
enforceable and fully effective (i.e., there  shall be no further unsatisfied conditions to the  effectiveness thereof)
general release in form and substance  reasonably satisfactory to the Company.

 

(i)                                     Employee Benefit
Plan Rights. Following any termination of  Executive’s employment with the Company, any
rights that may  exist in
Executive’s favor to payment of any amount under any  employee benefit plan or arrangement of the
Company other than  those set forth
in this Agreement shall be made in accordance  with the terms and conditions of any such
employee benefit  plan or
arrangement.

 

5.                                       Confidential and
Proprietary Information.

 

(a)                                  The parties
agree and acknowledge that during the course of  Executive’s employment, Executive has been
given and will have  access to and be
exposed to trade secrets and confidential information in written, oral,
electronic and other forms  regarding the Company and its affiliates (which includes but  is not limited to all of its
business units, divisions and  affiliates) and their business, equipment, products and  employees, including, without
limitation: the identities of  the Company’s and its affiliates’ distributors and customers  and potential distributors
and customers (hereinafter referred  to collectively as “DISTRIBUTORS”), including,
without  limitation, the
identity of Distributors that Executive  cultivates or maintains while providing
services at the  Company or any
of its affiliates using the Company’s or any of  its affiliates’ products, name and
infrastructure, and theidentities of contact persons with respect to those  Distributors; the particular
preferences, likes, dislikes and  needs of those Distributors and contact
persons with respect  to product
types, pricing, sales calls, timing, sales terms,  rental terms, lease terms, service plans, and
other marketing  terms and
techniques; the Company’s and its affiliates’  business methods, practices, strategies,
forecasts, pricing,  and marketing
techniques; the identities of the Company’s and  its affiliates’ licensors, vendors and other
suppliers and the  identities of
the Company’s and its affiliates’ contact  persons at such licensors, vendors and other

 

7

 

 

suppliers;
the identities of the Company’s and its affiliates’  key sales representatives and personnel and
other employees;  advertising and
sales materials; research, computer software  and related materials; and other facts and
financial and other  business
information concerning or relating to the Company or  any of its affiliates and their business,
operations,  financial
condition, results of operations and prospects.  Executive expressly agrees to use such trade
secrets and  confidential
information only for purposes of carrying out his  duties for the Company and its affiliates, and
not for any  other purpose,
including, without limitation, not in any way  or for any purpose detrimental to the Company
or any of its  affiliates.
Executive shall not at any time, either during the  course of his or her employment hereunder or
after the  termination of
such employment, use for himself or herself or  others, directly or indirectly, any such trade
secrets or  confidential
information, and, except as required by law,  Executive shall not disclose such trade
secrets or  confidential
information, directly or indirectly, to any other  person or entity. Trade secret and
confidential informationhereunder shall not include any information which (i) is  already in or subsequently
enters the public domain, other  than as a result of any direct or indirect
disclosure by  Executive, (ii)
becomes available to Executive on a  non-confidential basis from a source other
than the Company or  any of its
affiliates, provided that such source is not  subject to a confidentiality agreement or
other obligation of  secrecy or
confidentiality (whether pursuant to a contract,  legal or fiduciary obligation or duty or
otherwise) to the  Company or any
of its affiliates or any other person or entity  or (iii) is approved for release by the board
of directors of  the Company or
any of its affiliates or which the board of  directors of the Company or any of its
affiliates makes  available to
third parties without an obligation of  confidentiality.

 

(b)                                 All physical
property and all notes, memoranda, files,  records, writings, documents and other
materials of any and  every nature,
written or electronic, which Executive shall  prepare or receive in the course of his or her
employment with  the Company and
which relate to or are useful in any manner to  the business now or hereafter conducted by the
Company or any  of its
affiliates are and shall remain the sole and exclusive  property of the Company and
its affiliates, as applicable.  Executive shall not remove from the Company’s
premises any  such physical
property, the original or any reproduction of  any such materials nor the information
contained therein  except for the
purposes of carrying out his or her duties to  the Company or any of its affiliates and all
such property  (except for any
items of personal property not owned by the  Company or any of its affiliates), materials
and information  in his or her
possession or under his or her custody or  control upon the termination of his or her
employment shall be  immediately
turned over to the Company and its affiliates, as  applicable.

 

8

 

 

(c)                                  All inventions,
improvements, trade secrets, reports, manuals,  computer programs, tapes and other ideas and
materials  developed or
invented by Executive during the period of his or  her employment, either solely or in
collaboration with others,  which relate to the actual or anticipated business or research  of the Company or any of its
affiliates which result from or  are suggested by any work Executive may do for
the Company or  any of its
affiliates or which result from use of the  Company’s or any of its affiliates’ premises
or property  (collectively,
the “DEVELOPMENTS”) shall be the sole and  exclusive property the Company and its
affiliates, as  applicable. Executive
assigns and transfers to the Company his  or her entire right and interest in any such
Development, and  Executive shall
execute and deliver any and all documents and  shall do and perform any and all other acts
and things  necessary or
desirable in connection therewith that the  Company or any of its affiliates may
reasonably request.

 

(d)                                 The provisions
of this Section 5 and Section 6 shall survive  any termination of this
Agreement and termination of  Executive’s employment with the Company.

 

6.                                       Non-Solicitation.

 

(a)                                  Executive
acknowledges that in the course of his employment  for the Company he or she has become and will
continue to  become familiar
with the Company’s and its affiliates’ trade  secrets and other confidential information
concerning the  Company and its
affiliates. Accordingly, Executive agrees  that, during the Term and for a period of
twelve (12) months  immediately
thereafter (the “NONSOLICITATION PERIOD”), he or  she will not directly or indirectly through
another entity (i)  induce or
attempt to induce any employee or Distributor of the  Company or any of its affiliates to leave the
employment of,  or cease to
maintain its distributor relationship with, the  Company or such affiliate, or in any way
interfere with the  relationship
between the Company or any such affiliate and any  employee or Distributor thereof, (ii) hire any
person who was  an employee of
the Company or any of its affiliates at any  time during the Nonsolicitation Period or
enter into a distributor relationship with any person or entity who was a  Distributor of the Company or
any of its affiliates at any  time during the Nonsolicitation Period, (iii) induce or  attempt to induce any
Distributor, supplier, licensor,  licensee or other business relation of the
Company or any of  its affiliates
to cease doing business with the Company or  such affiliate, or in any way interfere with
the relationship  between such
Distributor, supplier, licensor, licensee or  business relation and the Company or any of
its affiliates  (including,
without limitation, making any negative statements  or communications about the Company or any of
its affiliates)  or (iv) use any
trade secrets or other confidential  information of the Company or any of its
affiliates to  directly or
indirectly participate in any means or manner in  any Competitive Business, wherever

 

9

 

 

located.
“COMPETITIVE BUSINESS” means the development,  marketing, distribution or sale of weight
management products,  nutritional
supplements or personal care products through  multi-level marketing or other direct selling
channels.  “PARTICIPATE”
includes any direct or indirect interest in any  enterprise, whether as an officer, director,
employee,  partner, sole
proprietor, agent, representative, independent  contractor, executive, franchisor, franchisee,
creditor,  owner,
distributor or otherwise; provided that the foregoing  activities shall not include
the passive ownership (i.e.,  Executive does not directly or indirectly participate in the  business or management of the
applicable entity) of less than  2% of the stock of a publicly-held corporation
whose stock is  traded on a
national securities exchange and which is not  primarily engaged in a Competitive Business.

 

(b)                                 As long as
Executive is employed by the Company, Executive  agrees that he or she will not, except with
the express  written consent
of the Board, become engaged in, render  services for, or permit his or her name to be
used in  connection with
any business other than the business of the  Company and its affiliates.

 

(c)                                  Executive has
agreed to be bound by the covenants contained in  this Section 6 for the purpose of
preserving for the Company’s  and its affiliates’ benefit the goodwill, confidential and  proprietary information and
going concern value of the Company  and its affiliates and their respective
business  opportunities,
and to protect the value of the capital stock  of the Company acquired by WH Holdings (Cayman
Islands) Ltd.  pursuant to that
certain Agreement and Plan of Merger dated  April 10, 2002, by and among WH Holdings
(Cayman Islands)  Ltd., Herbalife
International, Inc. and WH Acquisition Corp.  WH Holdings (Cayman Islands) Ltd. and each of
its affiliates  are intended
third party beneficiaries of the provisions of  Sections 5 and 6 of this Agreement.

 

7.                                       Injunctive
Relief. Executive and the Company (a) intend that the  provisions of Sections 5 and
6 be and become valid and enforceable, (b)  acknowledge and agree that the provisions of
Sections 5 and 6 are  reasonable and
necessary to protect the legitimate interests of the  business of the Company and its affiliates and
(c) agree that any  violation of
Section 5 or 6 will result in irreparable injury to the  Company and its affiliates,
the exact amount of which will be difficult to ascertain and the remedies at
law for which will not be reasonable  or adequate compensation to the Company and
its affiliates for such a  violation. Accordingly, Executive agrees that if Executive violates or  threatens to violate the
provisions of Section 5 or 6, in addition to  any other remedy which may be available at law
or in equity, the  Company shall be
entitled to specific performance and injunctive  relief, without posting bond or other
security, and without the  necessity of proving actual damages. In addition, in the event of a  violation or threatened
violation by Executive of Section 5 or 6 of  this Agreement, the Nonsolicitation Period
will be tolled

 

10

 

until
such violation or threatened violation has been duly cured. If,  at the time of enforcement of
Sections 5 or 6 of this Agreement, a  court holds that the restrictions stated
therein are unreasonable under  circumstances then existing, the parties
hereto agree that the maximum  period, scope or geographical area reasonable under such circumstances  shall be substituted for the
stated period, scope or area.

 

8.                                       Assignment;
Successors and Assigns. Executive agrees that he or she  shall not assign, sell,
transfer, delegate or otherwise dispose of,  whether voluntarily or involuntarily, any
rights or obligations under  this Agreement, nor shall Executive’s rights hereunder be subject to  encumbrance of the claims of
creditors. Any purported assignment,  transfer, delegation, disposition or
encumbrance in violation of this  Section 8 shall be null and void and of
no force or effect. Nothing in  this Agreement shall prevent the consolidation
or merger of the Companywith or into any other entity, or the sale by the Company of all or any  portion of its properties or
assets, or the assignment by the Company  of this Agreement and the performance of its
obligations hereunder toany successor in interest or any affiliated entity, and Executive  hereby consents to any and
all such assignments. Subject to the  foregoing, this Agreement shall be binding
upon and shall inure to the  benefit of the parties and their respective heirs, legal  representatives, successors,
and permitted assigns, and, except as  expressly provided herein, no other person or
entity shall have anyright, benefit or obligation under this Agreement as a third party  beneficiary or otherwise.

 

9.                                       Governing Law;
Jurisdiction and Venue. This Agreement shall be  governed, construed, interpreted and enforced
in accordance with thesubstantive laws of the State of California without regard to the  conflicts of law principles
thereof. Suit to enforce this Agreement or  any provision or portion thereof may be
brought in the federal or state  courts located in Los Angeles, California.

 

10.                                 Severability of
Provisions. In the event that any provision or any  portion thereof should ever be adjudicated by
a court of competent  jurisdiction to
exceed the time or other limitations permitted by  applicable law, as determined by such court in
such action, then suchprovisions shall be deemed reformed to the maximum time or other  limitations permitted by
applicable law, the parties hereby  acknowledging their desire that in such event
such action be taken. Inaddition to the above, the provisions of this Agreement are severable,  and the invalidity or
unenforceability of any provision or provisions  of this Agreement or portions thereof shall
not affect the validity or  enforceability of any other provision, or portion of this Agreement,  which shall remain in full
force and effect as if executed with the  unenforceable or invalid provision or portion
thereof eliminated.  Notwithstanding
the foregoing, the parties hereto affirmatively  represent, acknowledge and agree that it is
their intention that this Agreement and each of its provisions are enforceable
in accordance with  their terms and
expressly agree not to challenge the validity or  enforceability of this Agreement or any of its
provisions, or portionsor aspects

 

11

 

thereof,
in the future. The parties hereto are expressly relying upon  this representation,
acknowledgement and agreement in determining to  enter into this Agreement.

 

11.                                 Warranty. As an
inducement to the Company to enter into this Agreement,  Executive represents and
warrants that he or she is not a party to any  other agreement or obligation for personal
services, and that thereexists no impediment or restraint, contractual or otherwise, on his or  her power, right or ability
to enter into this Agreement and to perform  his or her duties and obligations hereunder.
As an inducement to  Executive to
enter into this Agreement, Company represents and warrants  that the person signing this
Agreement for the Company has been duly  authorized to do so by all necessary corporate
action and has the  corporate power
and authority to execute this Agreement on the  Company’s behalf. The execution and delivery
of this Agreement and the  consummation of the transactions contemplated have been duly and  effectively authorized by all
necessary corporate action of the  Company.

 

12.                                 Notices. All
notices, requests, demands and other communications which  are required or may be given
under this Agreement shall be in writing  and shall be deemed to have been duly given
when received if personally  delivered; when transmitted if transmitted by telecopy, electronic or  digital transmission method
upon receipt of telephonic or electronic  confirmation; the day after it is sent, if sent
for next day deliveryto a domestic address by recognized overnight delivery service (e.g.,  Federal Express); and upon
receipt, if sent by certified or registered  mail, return receipt requested. In each case
notice will be sent to:

 

(a)                                  If to the
Company:

 

Herbalife
International, Inc.

Herbalife
International of America, Inc.

1800
Century Park East

Los
Angeles, California 90067

Attention:
Board of Directors

Telecopy:
(310) 557-3906

 

(b)                                 with a copy to:

 

Herbalife
International, Inc.

Herbalife
International of America, Inc.

1800
Century Park East

Los
Angeles, California 90067

Attention:
General Counsel

 

12

 

 

Telecopy:
(310) 557-3906

 

(c)                                  if to Executive,
to:

 

c/o
Herbalife International, Inc.

1800
Century Park East

Los
Angeles, California 90067

Telecopy:
(310) 557-3906

 

(d)                                 with a copy to:

 

Troy
& Gould Professional Corporation

1801
Century Park East, 16th Floor

Los
Angeles, California 90067

Attention:
Dale E. Short

Telecopy:
(310) 201-4746

 

or
to such other place and with other copies as either party may designate as to
itself, himself or herself by written notice to the others.

 

13.                                 Cumulative
Remedies. All rights and remedies of either party hereto are  cumulative of each other and
of every other right or remedy such party  may otherwise have at law or in equity, and
the exercise of one or more  rights or remedies shall not prejudice or impair the concurrent or  subsequent exercise of other
rights or remedies.

 

14.                                 Counterparts.
This Agreement may be executed in several counterparts,  each of which will be deemed
to be an original, but all of which  together shall constitute one and the same
Agreement.

 

15.                                 Entire
Agreement. The terms of this Agreement are intended by the  parties to be the final
expression of their agreement with respect to  the subject matter hereof and supersedes (and
may not be contradictedby, modified or supplemented by) any prior or contemporaneous  agreement, written or oral,
with respect thereto. The parties further  intend that this Agreement shall constitute
the complete and exclusive  statements of its terms and that no extrinsic evidence whatsoever may  be introduced in any
judicial, administrative or other legal proceeding  to vary the terms of this Agreement. Executive
further acknowledges  that this
Agreement supersedes any prior agreement with respect to the  subject matter hereof
(including without limitation, Executive’s  employment agreement with the Company dated
August 20, 2000, as the  same may have been amended). Further, Executive acknowledges that he or  she has been paid his benefit
under the Herbalife International, Inc.  Senior Executive Change in Control Plan and
that, upon such payment to  Executive, such plan was terminated in accordance with its terms.

 

13

 

16.                                 Amendments;
Waivers. This Agreement may not be modified, amended, or  terminated except by an
instrument in writing, approved by the Board  and signed by Executive and a member of the
Board other than Executive.  As an exception to the foregoing, the parties acknowledge and agree  that the Company shall have
the right, in its sole discretion, to  reduce the scope of any covenant or obligation
of Executive set forthin Sections 5 or 6 of this Agreement or any portion thereof, effective  immediately upon receipt by
Executive of written notice thereof from  the Company. No waiver of any of the
provisions of this Agreement,  whether by conduct or otherwise, in any one or more instances, shall be  deemed to be construed as a
further, continuing or subsequent waiver of  any such provision or as a waiver of any other
provision of this  Agreement. No
failure to exercise and no delay in exercising any right,  remedy or power hereunder
shall preclude any other or further exercise  of any other right, remedy or power provided
herein or by law or inequity.

 

17.                                 Representation
of Counsel; Mutual Negotiation. Each party has had the opportunity to be
represented by counsel of its choice in negotiating  this Agreement. This Agreement shall therefore
be deemed to have beennegotiated and prepared at the joint request, direction and  construction of the parties,
at arm’s-length, with the advice and  participation of counsel, and shall be
interpreted in accordance with  its terms without favor to any party.

 

18.                                 Indemnification.
Executive shall be indemnified by the Company to the  maximum extent permissible from time to time
under the Nevada GeneralCorporation Law, including with respect to advancement of expenses.

 

19.                                 Suit to Enforce.
In any action or proceeding to enforce any provision of this Agreement, the
prevailing party shall be entitled, in addition  to other remedies, to recover its, his or her
attorney’s fees and costs  of suit.

 

14

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first above written.

 

	
   

  	
  HERBALIFE INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Brian Kane

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Brian Kane

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Co-President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HERBALIFE INTERNATIONAL OF AMERICA, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Brian Kane

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Brian Kane

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Co-President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Carol Hannah

  	
   

  
	
   

  	
   

  	
    Carol Hannah

  	
   

  
									

 

15EXHIBIT
10.23

 

NON-STATUTORY STOCK OPTION AGREEMENT

 

AGREEMENT
(this “Agreement”) entered into as of the 10th day of  March, 2003, by and between
WH Holdings (Cayman Islands) Ltd., a Cayman Islands  company (the “Company”), and the undersigned
employee (the “Employee”) of the  Company or its Subsidiaries.

 

WHEREAS,
pursuant to the WH Holdings (Cayman Islands) Ltd. Stock  Option Plan (the “Plan”), the
Committee designated under the Plan desires to  grant to the Employee an option to acquire
Common Shares, par value $0.001 per  share, of the Company; and

 

WHEREAS,
the Employee desires to accept such option subject to the terms and conditions
of this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and of the  mutual covenants and
agreements contained herein, the Company and the Employee,  intending to be legally
bound, hereby agree as follows:

 

1.
Grant of Option. On the terms and conditions hereinafter set  forth, the Company hereby
grants to the Employee an option to purchase all (or  any part) of (i) 1,207,583 Shares at an
exercise price of $0.44 per share and  (ii) 603,792 Shares at an exercise price of
$1.76 per share (the aforementioned  clauses (i) and (ii) collectively, the “Option”).
This Option is granted as of  the date hereof (the “Grant Date”). The Option is a Non-Statutory Stock
Option.  This Option is
granted pursuant to the Plan, and is governed by the terms and  conditions of the Plan. All
defined terms used herein, unless specifically  defined in this Agreement, have the meanings
assigned to them in the Plan.  Employee has previously been provided with a copy of that certain
Private  Placement
Memorandum dated July 15, 2002 regarding the offering of the Company’s  12% Series A Cumulative
Convertible Preferred Shares, as supplemented by  Supplements Nos. 1, 2 and 3 thereto
(collectively, the “PPM”). To the Company’s  knowledge, the disclosure of the Company’s
share ownership set forth in the PPM  beneath the caption “Share Ownership” therein
accurately sets forth, in all  material respects, the share ownership of the Company as of the dates
indicated  therein.

 

2.
Time of Exercise of Option.

 

(a) The
Option will become vested and exercisable (pro rata according to  the number of Shares
exercisable at the relevant exercise prices specified  above) fifteen percent (15%)
as of the date hereof, and thereafter, in quarterly  5% increments (pro rata according to the
number of Shares exercisable at the  relevant exercise prices specified  above) commencing on
June 30, 2003 and on each subsequent last day of each  following calendar quarter
until the Option becomes fully vested and exercisable  as of June 30, 2007.

 

(b)
Notwithstanding the preceding or any other provision in this  Agreement or the Plan to the
contrary, in the event that the Sponsors sell, for  cash, 100% of their investments in the debt
and equity securities of the Company  and each of its Subsidiaries (whether by sale
to an independent third party  (i.e., excluding either Sponsor, the Company or any of their respective  affiliates) or in connection
with a liquidating distribution in connection with  a sale of all or substantially all of the
assets of the Company) in connection  with either: (i) a Change in Control or (ii)
an Initial Public Offering, the  previously unexercisable portion of the Option
will immediately become 100%  vested and exercisable immediately prior to the closing of any such
transaction.  In such event,
Employee shall have the right, by giving notice five days before  such closing, to exercise the
Option, in whole or in part, effective as of and  conditioned upon such closing. For purposes of
the Plan and this Agreement,  “Sponsors” means Whitney & Co., LLC, Golden Gate Private Equity,
Inc. and the  respective
investment funds managed by each of them.

 

3.
Term of Options and Repurchase Rights.

 

1

 

(a)
The Option will expire 10 years from the date hereof, butwill be subject to
earlier termination as provided below.

 

(b)
Upon Employee’s termination of employment with the Company or  any of its Subsidiaries for
whatever reason:

 

(i)
the unexercisable portion of the Option hereby granted  will terminate on the date of
such termination.

 

(ii)
the exercisable portion of the Option hereby granted  will be treated as follows:

 

(A)
Subject to the repurchase rights described in  (c) below and the Shareholders’ Agreement, if
the Employee is terminated for any  reason except for Cause, the exercisable
portion of the Option hereby granted  will be exercisable for 30 days following the
termination, unless the Employee  terminates employment on account of a “disability”
as defined in Code Section 22(e) or if the Employee dies, in which case,
such Employee or such Employee’s  personal representative, respectively, may
exercise the exercisable portion of  the Option hereby granted for 90 days
following the termination of employment on  account of such disability or the Employee’s
death.

 

(B)
If the Employee is terminated for Cause, the  exercisable portion of the Option hereby
granted will terminate on the date of  such termination.

 

(c)
The Company has the right to repurchase the Shares acquired  upon the exercise of Options
for a period of 90 days after the Employee  terminates employment or 90 days after the
Shares for which the Option is  exercised are acquired, whichever is later
(the “Repurchase Period”).  Notwithstanding anything to the contrary in the Shareholders’ Agreement,
the  purchase price
per Share payable under Section 6(a) or (b) of the Shareholder’s  Agreement where such
Termination (as defined in the Shareholders’ Agreement):

 

(i)
was due to resignation or for Cause shall be the  amount equal to the lesser of: (A) the Fair
Market Value at the time of such  termination; or (B) the relevant exercise
price for such Shares;

 

(ii)
was without Cause or because of death, disability or  Retirement (as defined below) shall be the
amount equal to the greater of: (A)  the Fair Market Value at the time of such
termination; or (B) the relevant  exercise price for such Shares.

 

(d)
For purposes of this Agreement, (i) “Cause” shall have the  meaning ascribed to such term
in any written employment agreement between  Employee and the Company or one or more of its
Subsidiaries, as the same may be  amended or modified from time to time and (ii)
“Retirement” shall meanEmployee’s resignation from the service of the Company or its
Subsidiaries, so  long as Employee
does not engage in any employment or consulting activities with  any third party which require
in excess of 10 hours per week during the  Repurchase Period.

 

(e)
The Company’s repurchase option set forth in Section 4(c)  above shall terminate upon
the consummation of an Initial Public Offering.

 

4.
Manner of Exercise of Option. The Option may be exercised by  delivery, via first class
mail, fax or electronic mail of a Notice of Option  Exercise and related forms to the Company
stating the number of Shares with  respect to which the Option is being exercised
and accompanied by payment of the  Total Exercise Cost in cash or by check, bank
draft or money order payable to  the order of the Company. The Company will
cooperate in any reasonable manner(including cooperating with Employee’s
broker) to allow Employee to exercise the  Option in any expedient manner, so long as
such cooperation does not violate  applicable law or could not result in any
adverse consequences to the Company.

 

5.
Non-Transferability. The right of the Employee to exercise the  Option (as and when
exercisable) may not be assigned or transferred by the  Employee other than (i) by
will or the laws of descent and distribution or (ii)

 

2

 

with
the prior written approval of the Committee (not to be unreasonably  withheld), for estate
planning purposes. The Option may be exercised and the  Shares may be purchased
during the lifetime of the Employee only by the Employee  (or the Employee’s legal
representative in the event that the Employee’s  employment is terminated due to “disability”
as defined in Code Section 22(e) or  any other permitted transferee of the Option).
Any attempted assignment or  transfer, except as hereinabove provided, including without limitation
any  purported
assignment, whether voluntary or by operation of law, pledge,  hypothecation or other
disposition contrary to the provisions hereof, or any  levy of execution,
attachment, trustee process or similar process, whether legal  or equitable, upon the
Option, will in each instance be null and void.

 

6.
Representation Letter and Investment Legend.

 

(a)
In the event that for any reason the issuance of the Shares  to be issued upon exercise of
an exercisable Option will not be effectively  registered under the Securities Act upon any
date on which the Option is  exercised, the Employee (or the person exercising the Option pursuant to  Paragraph 6) will give a
written representation to the Company in the form of  paragraph 1 of Exhibit A attached hereto, and
the Company will place the  Securities Act legend described in paragraph 2 of Exhibit A upon any
certificate  for the Shares
issued by reason of such exercise.

 

(b)
The Company will be under no obligation to qualify Shares or  to cause a registration
statement or a post-effective amendment to any  registration statement to be prepared for the
purpose of covering the issuance  of Shares.

 

7.
Adjustments of Shares and Options.

 

(a)
In the event of any change in the outstanding Shares by  reason of an acquisition,
spin-off or reclassification, recapitalization or  merger, combination or exchange of Shares or
other corporate exchange, Change of  Control or similar event, the Committee shall
adjust appropriately the number or  kind of Shares or securities subject to the
Option and exercise prices related  thereto and make such other revisions to the
Option as it deems are equitably  required.

 

(b)
With respect to any merger or consolidation of the Company  into another corporation, the
sale or exchange of all or substantially all of  the assets of the Company, a Change of Control
or the recapitalization,reclassification, liquidation or dissolution of the Company or any other
similar  fundamental
transaction involving the Company or any of its Subsidiaries (any of  the foregoing, a “Qualifying
Event”), the  Committee shall
provide either: (i) that the Option cannot be exercised after  such Qualifying Event,
provided that nothing in this Section 7(b) shall prohibit  Employee from exercising any
then exercisable portion of the Option (including  any portion thereof which will become
exercisable by virtue of such Qualifying  Event) prior to, or simultaneously with, the
occurrence of such Qualifying Event  and that, upon the occurrence of such
Qualifying Event, the Option will  terminate and be of no further force or effect
and no longer be outstanding;  (ii) that the Option will remain outstanding after such Qualifying
Event, and  from and after
the consummation of such Qualifying Event, the Option will be  exercisable for the kind and
amount of securities and/or other property  receivable as a result of such Qualifying
Event by the holder of a number of  Shares for which the Option could have been
exercised immediately prior to such  Qualifying Event; or (iii) the then
exercisable portion of the Option (including  any portion thereof which will become
exercisable by virtue of such Qualifying  Event) will be repurchased by the Company at a
specific price (it being agreed  that, with respect to each Share for which all
or any portion of the Option is  then exercisable, such specific price shall be
equal to the Fair Market Value of  such Share less the applicable Exercise Price)
and that, upon the occurrence of  such Qualifying Event, the Option will
terminate and be of no further force or  effect and no longer be outstanding. In the
event of any conflict orinconsistency between the terms and conditions of this Section 7(b)
and the  terms and
conditions of Section 8 of the Plan, the terms and condition of this  Section 7(b) shall
control.

 

8.
No Special Employment Rights. Nothing contained in this

 

3

 

Agreement
will be construed or deemed by any person under any circumstances to  bind the Company or any of
its Subsidiaries to continue the employment of the  Employee for the period within which this
Option may vest or for any other  period.

 

9.
Rights as a Shareholder. The Employee will have no rights as a  shareholder with respect to
any Shares which may be purchased upon the exercise  of this Option unless and until a certificate
or certificates representing such  Shares are duly issued and delivered to the Employee.

 

10.
Withholding Taxes. The Employee hereby agrees, as a condition  to any exercise of the
Option, to provide to the Company an amount sufficient to  satisfy its obligation to
withhold certain federal, state and local taxes  arising by reason of such exercise (the “Withholding
Amount”), if any, by (a)authorizing the Company to withhold the Withholding Amount from the
Employee’s  cash
compensation, or (b) remitting the Withholding Amount to the Company in  cash; provided that, to the
extent that the Withholding Amount is not provided  by one or a combination of such methods, the
Company may at its election  withhold from the Shares delivered upon exercise of the Option that
number of  Shares having a
Fair Market Value as of the date immediately prior to the  issuance of such Shares equal
to the Withholding Amount.

 

11.
Execution of Shareholders’ Agreement. The Employee  acknowledges that, in connection with his or
her prior or future purchase of  Shares of the Company, unless such
Shareholders’ Agreement is no longer in  effect, he or she will execute and deliver the
Shareholders’ Agreement or a  joinder or counterpart signature page thereto. The Employee further
agrees that  all Shares
acquired by such Employee upon exercise of the Option will be subject  to the terms and conditions
of the Shareholders’ Agreement, if then in effect,  as modified hereby.

 

12.
Lock-Up Agreements. The Employee agrees that notwithstanding  anything to the contrary
contained in this Agreement, in the event of an Initial  Public Offering or any other
public offering of securities of the Company,  except to the extent that: (a) the Employee
sells his or her Shares obtained  upon the exercise of the Option to the
underwriters of the Company’s securities  in connection with such offering or (b) the
underwriters do not require the  following restrictions of all of the Company’s
directors and officers, such  Employee shall not (i) offer, hedge, pledge, sell or contract to sell
any such  Shares, (ii)
sell any option or contract to purchase any Shares, (iii) purchase  any option or contract to
sell any Shares, (iv) grant any option, right or  warrant for the sale of any Shares, or (v)
lend or otherwise dispose of or  transfer any Shares during the longer of (A)
any black-out period requested by  underwriters conducting any such public
offering of securities on behalf of the  Company and (B) during the seven days prior to
and during the 180 day period  beginning on the effective date of such initial public offering or other
public  offering of
securities; provided, however, that such Employee shall, in any  event, be entitled to sell
his or her Shares commencing on the expiration of the  black-out period described in
the aforementioned clause (A) or (B).

 

*********

 

{Signatures on Following Page}

 

4

 

OPTION AGREEMENT

 

Counterpart Signature Page

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed, by its
officer thereunto duly authorized, and the Employee has executed this
Agreement, all as of the day and year first above written.

 

	
  WH HOLDINGS

  	
  EMPLOYEE

  
	
  (CAYMAN ISLANDS) LTD.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ STEPHAN KALUZNY

  	
   

  	
  /s/ BRIAN KANE

  	
   

  
	
   

  	
  Title: Director

  	
  BRIAN KANE

  
	
   

  	
   

  
	
  Stephan Kaluzny

  	
   

  	
  Address:

  
	
  (print name)

  	
   

  
	
   

  	
   

  
	
   

  	
  c/o Herbalife International, Inc.

  
	
   

  	
  1800 Century Park East

  
	
   

  	
  Los Angeles, CA 90067

  
	
   

  	
  Facsimile Number: (310) 557-3906

  

 

5

 

	
   

  	
   

  	
  EXHIBIT A

  

 

TO:  WH HOLDINGS (CAYMAN ISLANDS) LTD.

 

The
undersigned hereby irrevocably exercises the right to  purchase
                            
of the Common Shares, par value $0.001 per share  (“Common Shares”) of WH Holdings (Cayman
Islands) Ltd., a Cayman Islands company  (the “Company”), evidenced by the attached
Option, and herewith makes payment of  the relevant exercise price with respect to
such shares in full, all in  accordance with the conditions and provisions of said Option.

 

1. The undersigned hereby
represents and warrants to and agrees with the Company as follows:

 

(a)
The undersigned understands and acknowledges that an  investment in the Common Shares issuable upon
exercise of this Option involves a  high degree of risk and that there are
limitations on the liquidity of the  Common Shares issuable upon exercise of this
Option. The undersigned is able to  bear the economic risk of an investment in the
Common Shares issuable upon  exercise of this Option. The undersigned has adequate means of providing
for the  undersigned’s
current needs and contingencies; is able to afford to hold the  Common Shares issuable upon
exercise of this Option for an indefinite period;  and has such knowledge and experience in
financial and business matters such  that the undersigned is capable of evaluating
the merits and risks of the  investment in the Common Shares issuable upon exercise of this Option;

 

(b)
The undersigned is acquiring the Common Shares issuable upon  exercise of this Option for its
own account for investment and not as a nominee  and not with a present view to the
distribution thereof in violation of the  Securities Act of 1933, as amended (the “1933
Act”). The undersigned understands  that the undersigned must bear the economic
risk of this investment indefinitely  unless such shares are registered pursuant to
the 1933 Act and any applicable  state securities laws, or an exemption from
such registration is available. The  undersigned has no plan or intention to sell
the Common Shares issuable upon  exercise of this Option at any predetermined
time, and has made no predetermined  arrangements to sell such shares;

 

(c)
The undersigned will not make any sale, transfer or other  disposition of the Common
Shares issuable upon exercise of this Option in  violation of (1) the 1933 Act, the Securities
Exchange Act of 1934, as amended,  any other applicable Federal or state
securities laws or the rules and  regulations of the Securities and Exchange
Commission or of any state securities  commissions or similar state authorities
promulgated under any of the foregoing,  or (2) any applicable securities laws of
jurisdictions outside the United States  and the rules and regulations thereunder.

 

2.
The undersigned agrees not to offer, sell, transfer or  otherwise dispose of any of
the Common Shares obtained on exercise of the  Option, except in accordance with the
provisions of the Option, and consents  that the following legend may be affixed to
the stock certificates for the  Common Shares hereby subscribed for, if such
legend is applicable:

 

“THE
SALE, TRANSFER OR ENCUMBRANCE OF THE SECURITIES REPRESENTED BY THIS  CERTIFICATE ARE SUBJECT TO
THE TERMS AND CONDITIONS OF A SHAREHOLDERS’  AGREEMENT, DATED AS OF JULY 31, 2002
AMONG WH HOLDINGS (CAYMAN ISLANDS)  LTD. AND CERTAIN HOLDERS OF ITS OUTSTANDING
SHARE CAPITAL, AS SUCHAGREEMENT MAY BE AMENDED. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO  COST BY WRITTEN REQUEST MADE
BY THE HOLDER OF RECORD OF THIS CERTIFICATE  TO THE SECRETARY OF WH HOLDINGS (CAYMAN
ISLANDS) LTD.  The securities
represented hereby have not been registered under the  Securities Act of 1933, as
amended (the “1933 Act”), or any provincial  or state securities law, and may not be sold,
transferred, pledged,hypothecated or otherwise disposed of until a registration statement  under the 1933 Act and
applicable provincial or state securities laws  shall have become effective with regard
thereto, or an exemption from  registration under the 1933 Act or applicable provincial or state  securities laws is available
in connection with such offer, sale or  transfer.”

 

6

 

3.
The undersigned requests that stock certificates for such  shares be issued, and a new
option agreement representing any unexercised  portion hereof be issued in the name of the
registered holder and delivered to  the undersigned at the address set forth
below:

 

Dated:

 

 

	
   

  	
   

  
	
  Signature of Registered Holder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name of Registered Holder (Print)

  	
   

  

 

7

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