Document:

ex1056.htm

    

       

       

      Exhibit
10.56

       

      CHANGE
IN CONTROL

      SEVERANCE
COMPENSATION

      AND

      RESTRICTIVE
COVENANT AGREEMENT

      

      

      THIS SEVERANCE COMPENSATION AND
RESTRICTIVE COVENANT AGREEMENT (the “Agreement”) is dated as of June 4,
2007 between MATRIA HEALTHCARE,
INC., a Delaware corporation (the “Company”), and THOMAS D. UNDERWOOD (the
“Executive”).

      

      WHEREAS, the Company, has
determined that it is appropriate to reinforce and encourage the continued
attention and dedication of members of the Company’s management, including the
Executive, to their assigned duties without distraction in potentially
disruptive circumstances arising from the possibility of a Change in Control (as
hereinafter defined) of the Company; and

      

      WHEREAS, the severance
benefits payable by the Company to the Executive as provided herein are in part
intended to ensure that the Executive receives reasonable compensation given the
specific circumstances of Executive’s employment history with the
Company;

      

      NOW, THEREFORE, in
consideration of their respective obligations to one another set forth in this
Agreement, and other good and valuable consideration, the receipt, sufficiency
and adequacy of which the parties hereby acknowledge, the parties to this
Agreement, intending to be legally bound, hereby agree as follows:

      

      1.           Term.  This
Agreement shall terminate, except to the extent that any obligation of the
Company hereunder remains unpaid as of such time, upon the earliest of
(i) the Date of Termination (as hereinafter defined) of the Executive’s
employment with the Company as a result of the Executive’s death, Disability (as
defined in Section 3(b)) or Retirement (as defined in Section 3(c)),
by the Company for Cause (as defined in Section 3(d)) or by the Executive
other than for Good Reason (as defined in Section 3(e)); and
(ii) three years from the date of a Change in Control if the Executive’s
employment with the Company has not terminated as of such time.

      

      2.           Change in
Control.  For purposes of this Agreement, “Change in Control”
shall mean changes in the ownership of the Company, changes in the effective
control of the Company, changes in ownership of a substantial portion of the
Company’s assets and a disposition of a substantial portion of the Company’s
assets, all as defined below:

      

      (a) A change
in the ownership of the Company occurs on the date that any one person, or more
than one person acting as a group, acquires ownership of stock of the Company
which, together with stock held by such person or group, represents more than
fifty percent (50%) of the total fair market value or total voting power of the
stock of the Company.  An increase in the percentage of stock owned by
any one person, or persons acting as a group, as a result of a transaction in
which the Company acquires its stock in exchange for property will be

       

      
        
          
          

        

        
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        treated
as an acquisition of stock.

      

      

      (b)           A
change in the effective control of the Company occurs on the date that either:
any one person, or more than one person acting as a group becomes the beneficial
owner of stock of the Company possessing twenty-five percent (25%) or more of
the total voting power of the stock of the Company; or a majority of members of
the Company’s board of directors is replaced during any 24-month period by
directors whose appointment or election is not endorsed by at least two-thirds
(2/3) of the members of the Company’s board of directors who were directors
prior to the date of the appointment or election of the first of such new
directors.

      

      (c)           A
change in the ownership of a substantial portion of the Company’s assets occurs
on the date that any one person, or more than one person acting as a group,
acquires (or has acquired during the 12-month period ending on the date of the
most recent acquisition by such person or persons) assets from the Company that
have a total fair market value equal to or more than one-half (1/2) of the total
fair market value of all of the assets of the Company immediately prior to such
acquisition or acquisitions.  The transfer of assets by the Company is
not treated as a change in the ownership of such assets if the assets are
transferred:  to a shareholder of the Company (immediately before the
asset transfer) in exchange for such shareholder’s capital stock of the Company
having a fair market value approximately equal to the fair market value of such
assets; or to an entity, fifty percent (50%) or more of the total value or
voting power of which is owned, directly or indirectly, by the
Company.

      

      (d)           A
disposition of a substantial portion of the Company’s assets occurs on the date
that the Company transfers assets by sale, lease, exchange, distribution to
shareholders, assignment to creditors, foreclosure or otherwise, in a
transaction or transactions not in the ordinary course of the Company’s business
(or has made such transfers during the 12-month period ending on the date of the
most recent transfer of assets) that have a total fair market value equal to or
more than one-half (1/2) of the total fair market value of all of the assets of
the Company as of the date immediately prior to the first such transfer or
transfers.  The transfer of assets by the Company is not treated as a
disposition of a substantial portion of the Company’s assets if the assets are
transferred to an entity, fifty percent (50%) or more of the total value or
voting power of which is owned, directly or indirectly, by the
Company.

      

      For
purposes of the provision of this Agreement defining “Change in Control,” (i)
references to the Company herein include the Delaware corporation known as
Matria Healthcare, Inc. as of the date of execution of this Agreement, and any
corporation that is the Successor or Assign (as defined in Section 7(a)) to such
corporation; and (ii) the terms “person,” “acting as a group” and “ownership”
shall have the meanings prescribed in Sections 3(a)(9) and 13(d)(3) of the
Securities Exchange Act of 1934, as amended, and Rule 13d-3 promulgated
thereunder; provided, however, that in any merger, consolidation or share
exchange in which less than fifty percent (50%) of the outstanding voting
securities of the Company or its successor corporation are held by the former
shareholders of the Company, the shareholders of the other parties to the
transaction shall be deemed to have acted as a group that acquired ownership of
more than fifty percent (50%) of the 

       

      
        
          
          

        

        
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      outstanding
voting securities of the Company, resulting in a change in ownership under
Section 2(a) above.

      

      3.           Termination Following Change
in Control.

      

      (a)           General.  If
the Executive is still an employee of the Company at the time of a Change in
Control, the Executive shall be entitled to the compensation and benefits
provided in Section 4 upon the subsequent termination of the Executive’s
employment with the Company by the Executive or by the Company during the term
of this Agreement, unless such termination is as a result of (i) the
Executive’s death; (ii) the Executive’s Disability; (iii) the
Executive’s Retirement; (iv) the Executive’s termination by the Company for
Cause; or (v) the Executive’s decision to terminate employment other than
for Good Reason.

      

      (b)           Disability.  The
term “Disability” as used in this Agreement shall mean termination of the
Executive’s employment by the Company as a result of the Executive’s incapacity
due to physical or mental illness, provided that the Executive shall have been
absent from his duties with the Company on a full-time basis for six consecutive
months and such absence shall have continued unabated for 30 days after Notice
of Termination as described in Section 3(f) is thereafter given to the Executive
by the Company.

      

      (c)           Retirement.  The
term “Retirement” as used in this Agreement shall mean termination of the
Executive’s employment by the Company based on the Executive’s having attained
age 65 or such later retirement age as shall have been established pursuant to a
written agreement between the Company and the Executive.

      

      (d)           Cause.  The
term “Cause” for purposes of this Agreement shall mean the Company’s termination
of the Executive’s employment on the basis of criminal or civil fraud on the
part of the Executive involving a material amount of funds of the
Company.  Notwithstanding the foregoing, the Executive shall not be
deemed to have been terminated for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the
Company’s Board of Directors at a meeting of the Board called and held for such
purpose (after reasonable notice to the Executive and an opportunity for the
Executive, together with the Executive’s counsel, to be heard before the Board)
finding that in the good faith opinion of the Board the Executive was guilty of
conduct set forth in the first sentence of this Section 3(d) and specifying
the particulars thereof in detail.  For purposes of this Agreement
only, the preparation and filing of fictitious, false or misleading claims in
connection with any federal, state or other third party medical reimbursement
program, or any other violation of any rule or regulation in respect of any
federal, state or other third party medical reimbursement program by the Company
or any subsidiary of the Company shall not be deemed to constitute “criminal
fraud” or “civil fraud.”

      

      (e)           Good
Reason.  For purposes of this Agreement, “Good Reason” shall
mean any of the following actions taken by the Company without the Executive’s
express written consent:

       

      
        
          
          

        

        
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      (i)  The assignment to the
Executive by the Company of duties inconsistent with, or a material adverse
alteration of the powers and functions associated with, the Executive’s
position, duties, responsibilities and status with the Company prior to a Change
in Control, or an adverse change in the Executive’s titles or offices as in
effect prior to a Change in Control, or any removal of the Executive from or any
failure to re-elect the Executive to any of such positions, except in connection
with the termination of his employment for Disability, Retirement or Cause or as
a result of the Executive’s death or by the Executive other than for Good
Reason;

      

      (ii)  A reduction in the
Executive’s base salary as in effect on the date hereof or as the same may be
increased from time to time during the term of this Agreement or the Company’s
failure to increase (within 12 months of the Executive’s last increase in base
salary) the Executive’s base salary after a Change in Control in an amount which
at least equals, on a percentage basis, the average annual percentage increase
in base salary for all corporate officers of the Company effected in the
preceding 36 months;

      

      (iii)  Any failure by the
Company to continue in effect any benefit plan, program or arrangement
(including, without limitation, any profit sharing plan, group annuity contract,
group life insurance supplement, or medical, dental, accident and disability
plans) in which the Executive was eligible to participate at the time of a
Change in Control  (hereinafter referred to as “Benefit Plans”), or
the taking of any action by the Company which would adversely affect the
Executive’s participation in or materially reduce the Executive’s benefits under
any such Benefit Plan, unless a comparable substitute Benefit Plan shall be made
available to the Executive, or deprive the Executive of any fringe benefit
enjoyed by the Executive at the time of a Change in Control;

      

      (iv)  Any failure by the
Company to continue in effect any incentive plan or arrangement (including,
without limitation, any bonus or contingent bonus arrangements and credits and
the right to receive performance awards and similar incentive compensation
benefits) in which the Executive is participating at the time of a Change in
Control (or any other plans or arrangements providing him with substantially
similar benefits) (hereinafter referred to as “Incentive Plans”) or the taking
of any action by the Company which would adversely affect the Executive’s
participation in any such Incentive Plan or reduce the Executive’s benefits
under any such Incentive Plan, expressed as a percentage of his base salary, by
more than five percentage points in any fiscal year as compared to the
immediately preceding fiscal year, or any action to reduce Executive’s bonuses
under any Incentive Plan by more than 20% of the average annual bonus previously
paid to Executive with respect to the preceding three fiscal years;

      

      (v)  Any failure by the
Company to continue in effect any plan or arrangement to receive securities of
the Company (including, without limitation, the Company’s 1997 Stock Incentive
Plan, Employee Stock Purchase Plan and any other plan or arrangement to receive
and exercise stock options, stock appreciation rights, restricted stock or
grants thereof) in which the Executive is participating or has the right to
participate in prior to a Change in Control (or plans or arrangements providing
him with substantially similar benefits) (hereinafter referred to

       

      
        
          
          

        

        
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       as
“Securities Plans”) or the taking of any action by the Company which would
adversely affect the Executive’s participation in or materially reduce the
Executive’s benefits under any such Securities Plan, unless a comparable
substitute Securities Plan shall be made available to the
Executive;

      

      (vi)  A relocation of the
Company’s principal executive offices to a location more than ten (10) miles
outside of Marietta, Georgia, or the Executive’s relocation to any place other
than the Company’s principal executive offices, except for required travel by
the Executive on the Company’s business to an extent substantially consistent
with the Executive’s business travel obligations immediately prior to a Change
in Control;

      

      (vii)  Any failure by the
Company to provide the Executive with the number of paid vacation days (or
compensation therefor at termination of employment) accrued to the Executive
through the Date of Termination;

      

      (viii)  Any material breach
by the Company of any provision of this Agreement;

      

      (ix)  Any failure by the
Company to obtain the assumption of this Agreement by any successor or assign of
the Company effected in accordance with the provisions of Section 7(a)
hereof;

      

      (x)  Any purported
termination of the Executive’s employment that is not effected pursuant to a
Notice of Termination satisfying the requirements of Section 3(f), and for
purposes of this Agreement, no such purported termination shall be effective;
or

      

      (xi)  Any proposal or
request by the Company after the Effective Date to require that the Executive
enter into a non-competition agreement with the Company where the terms of such
agreement as to its scope or duration are greater than the terms set forth in
Section 5 hereof.

      

      (f)           Notice of
Termination.  Any termination of the Executive’s employment by
the Company for a reason specified in Section 3(b), 3(c) or 3(d) shall be
communicated to the Executive by a Notice of Termination prior to the effective
date of the termination.  For purposes of this Agreement, a “Notice of
Termination” shall mean a written notice which shall indicate whether such
termination is for the reason set forth in Section 3(b), 3(c) or 3(d) and which
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated.  For purposes of this Agreement, no termination of the
Executive’s employment by the Company shall constitute a termination for
Disability, Retirement or Cause unless such termination is preceded by a Notice
of Termination.

      

      (g)           Date of
Termination.  “Date of Termination” shall mean (a) if the
Executive’s employment is terminated by the Company for Disability, 30 days
after a Notice of Termination is given to the Executive (provided that the
Executive shall not have returned to the performance of the Executive’s duties
on a full-time basis during such 30-day period) or (b) if the 

       

      
        
          
          

        

        
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      Executive’s
employment is terminated by the Company or the Executive for any other reason,
the date on which the Executive’s termination is effective; provided that, if
within 30 days after any Notice of Termination is given to the Executive by the
Company the Executive notifies the Company that a dispute exists concerning the
termination, the Date of Termination shall be the date the dispute is finally
determined whether by mutual agreement by the parties or upon final judgment,
order or decree of a court of competent jurisdiction (the time for appeal
therefrom having expired and no appeal having been perfected).  For
purposes of this Agreement, the Executive’s employment by the Company shall be
deemed terminated upon the date the Executive incurs a “separation from service”
within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of
1986, as amended (“Code”), and the regulations issued thereunder.

      

      4.           Compensation and Benefits
upon Termination of Employment.

      

      (a)           If
the Company shall terminate the Executive’s employment after a Change in Control
other than pursuant to Section 3(b), 3(c) or 3(d) and Section 3(f), or if
the Executive shall terminate his employment for Good Reason, then the Company
shall pay to the Executive, as severance compensation and in consideration of
the Executive’s adherence to the terms of Section 5 hereof, the
following:

      

      (i)           On
the Date of Termination, the Company shall become liable to the Executive for an
amount equal to two times the Executive’s annual base compensation, targeted
base bonus and annual car allowance on the date of the Change in Control, which
amount shall be paid to the Executive in cash on or before the fifth day
following the Date of Termination.

      

      (ii)           For
a period of two years following the Date of Termination, the Executive and
anyone entitled to claim under or through the Executive shall be entitled to all
benefits under the group hospitalization plan, health care plan, dental care
plan, life or other insurance or death benefit plan, or other present or future
similar group employee benefit plan or program of the Company for which key
executives are eligible at the date of a Change in Control, to the same extent
as if the Executive had continued to be an employee of the Company during such
period and such benefits shall, to the extent not fully paid under any such plan
or program, be paid by the Company.  Also during such two-year period,
the Company will extend full insurance coverage for the Executive’s primary
automobile in favor of the Executive, as an additional named
insured.

      

      (iii)           Notwithstanding
any other provision of this Agreement, it is intended that any payment or
benefit provided pursuant to or in connection with this Agreement that is
considered to be nonqualified deferred compensation subject to Section 409A of
the Code shall be provided and paid in a manner, and at such time and in such
form, as complies with the applicable requirements of Section 409A of the
Code.  If and to the extent required by Section 409A of the Code, no
payment or benefit shall be made or provided to a “specified employee” (as
defined below) prior to the six (6) month anniversary of the Executive’s
separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the
Code).  The amounts provided for in this Agreement that constitute
nonqualified deferred compensation shall be paid as soon as the six

       

      
        
          
          

        

        
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        month
deferral period ends.  In the event that benefits are required to be
deferred, any such benefit may be provided during such six month deferral period
at the Executive’s expense, with the Executive having a right to reimbursement
from the Company for the amount of any premiums or expenses paid by the
Executive once the six month deferral period ends.  For this purpose,
a specified employee shall mean an individual who is a key employee (as defined
in Section 416(i) of the Code without regard to Section 416(i)(5) of
the Code) of the Company at any time during the 12-month period ending on each
December 31 (the “identification date”).  If the Executive is a key
employee as of an identification date, the Executive shall be treated as a
specified employee for the 12-month period beginning on the April 1 following
the identification date.  Notwithstanding the foregoing, the Executive
shall not be treated as a specified employee unless any stock of the Company or
a corporation or business affiliated with it pursuant to Sections 414(b) or (c)
of the Code is publicly traded on an established securities market or
otherwise.

      

      

      (b)           The
parties hereto agree that the payments provided in Section 4(a) hereof are
reasonable compensation in light of the Executive’s services rendered to the
Company and in consideration of the Executive’s adherence to the terms of
Section 5 hereof.  Neither party shall contest the payment of such
benefits as constituting an “excess parachute payment” within the meaning of
Section 280G(b)(1) of the Code.  In the event that the Executive
becomes entitled to the compensation and benefits described in Section 4(a)
hereof (the “Compensation Payments”) and the Company has determined, based upon
the advise of tax counsel selected by the Company’s independent auditors and
acceptable to the Executive, that, as a result of such Compensation Payments and
any other benefits or payments required to be taken into account under Code
Section 280G(b)(2) (“Parachute Payments”), any of such Parachute Payments must
be reported by the Company as “excess parachute payments” and are therefore not
deductible by the Company, the Company shall pay to the Executive at the time
specified in Section 4(a) above an additional amount (the “Gross-Up
Payment”) such that the net amount retained by the Executive, after deduction of
any of the tax imposed on the Executive by Section 4999 of the Code (the “Excise
Tax”) and any Federal, state and local income tax and Excise Tax upon the
Gross-Up Payment, shall be equal to the Parachute Payments determined prior to
the application of this paragraph.  The value of any non-cash benefits
or any deferred payment or benefit shall be determined by the Company’s
independent auditors.  For purposes of determining the amount of the
Gross-Up Payment, the Executive shall be deemed to pay Federal income taxes at
the highest marginal rate of Federal income taxation in the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes at the
highest marginal rates of taxation in the state and locality of the Executive’s
residence on the Date of Termination, net of the maximum reduction in Federal
income taxes which could be obtained from deduction of such state and local
taxes.  In the event that the Excise Tax payable by the Executive is
subsequently determined to be less than the amount, if any, taken into account
hereunder at the time of termination of the Executive’s employment, the
Executive shall repay to the Company at the time that the amount of such
reduction in Excise Tax is finally determined the portion of the Gross-Up
Payment attributable to such reduction plus interest on the amount of such
repayment at the rate provided for in Section 1274(b)(2)(B) of the Code
(“Repayment Amount”).  In the event that the Excise Tax payable by the
Executive is determined to exceed the amount, if any, taken into account
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      Executive’s
employment (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment), the Company shall
make an additional Gross-Up Payment in respect of such excess (plus any interest
and penalty payable with respect to such excess) immediately prior to the time
that the amount of such excess is required to be paid by Executive (“Additional
Gross-up”), such that the net amount retained by the Executive, after deduction
of any Excise Tax on the Parachute Payments and any Federal, state and local
income tax and Excise Tax upon the Additional Gross-Up Payment, shall be equal
to the Parachute Payments determined prior to the application of this
paragraph.  The obligation to pay any Repayment Amount or Additional
Gross-up shall remain in effect under this Agreement for the entire period
during which the Executive remains liable for the Excise Tax, including the
period during which any applicable statute of limitation remains
open.

      

      (c)           The
payments provided in Section 4(a) above shall be in lieu of any other
severance compensation otherwise payable to Executive under any other agreement
between Executive and the Company or the Company’s established severance
compensation policies; provided, however, that nothing in this Agreement shall
affect or impair Executive’s vested rights under any other employee benefit plan
or policy of the Company.  For the avoidance of doubt, if more than
one Change in Control occurs during the term hereof, the term of this Agreement
shall be measured from the latest such Change in Control to occur and the amount
of compensation payable under Section 4(a)(1) shall be based upon the highest
annual base salary, targeted base bonus and car allowance payable to Executive
on the date of any such Change in Control, but Executive shall not be entitled
to receive severance compensation under Section 4(a) more than
once.

      

      (d)           Unless
the Company determines that any Parachute Payments made hereunder must be
reported as “excess parachute payments” in accordance with the third sentence of
Section 4(b) above, neither party shall file any return taking the position
that the payment of such benefits constitutes an “excess parachute payment”
within the meaning of Section 280G(b)(1) of the Code.  If the
Internal Revenue Service proposes an assessment of Excise Tax against the
Executive in excess of the amount, if any, taken into account at the time
specified in Section 4(a), then, if the Company notifies Executive in
writing that the Company elects to contest such assessment at its expense,
unless the Executive waives the right to an Additional Gross-Up Payment, the
Executive (i) shall in good faith cooperate with the Company in contesting
such proposed assessment; and (ii) such Executive shall not settle such
contest without the written consent of the Company.  Any such contest
shall be controlled by the Company, provided, however, that the
Executive may participate in such contest.

      

      5.           Protective
Covenants.

      

      (a)           Definitions.

      

      This Subsection sets forth the
definition of certain capitalized terms used in Subsections (a) through (f) of
this Section 5.

       

      
        
          
          

        

        
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      (i)  “Competing Business”
shall mean a business (other than the Company) that, directly or through a
controlled subsidiary or through an affiliate, (a) provides disease management
programs for diabetes, congestive heart failure, coronary artery disease,
chronic obstructive pulmonary disease, cancer, pregnancy, depression, chronic
pain or hepatitis C; and/or (b) provides obstetrical home care; and/or (c)
provides on-line programs targeting weight loss, nutrition and diet, fitness,
smoking cessation or stress management; and/or (d) provides
informatics  services (collectively, “Competing
Services”).  Notwithstanding the foregoing, no business shall be
deemed a “Competing Business” unless, within at least one of the business’s
three most recently concluded fiscal years, that business, or a division of that
business, derived more than twenty percent (20%) of its gross revenues or more
than $2,000,000 in gross revenues from the provision of Competing
Services.

      

      (ii)  “Competitive Position”
shall mean:  (A) the Executive’s direct or indirect equity ownership
(excluding ownership of less than one percent (1%) of the outstanding common
stock of any publicly held corporation) or control of any portion of any
Competing Business; or (B) any employment, consulting, partnership, advisory,
directorship, agency, promotional or independent contractor arrangement between
the Executive and any Competing Business where the Executive performs services
for the Competing Business substantially similar to those the Executive
performed for the Company, provided, however, that the Executive shall not be
deemed to have a Competitive Position solely because of the Executive’s services
for a Competing Business that are not directly related to the provision of
Competing Services, unless more than thirty-five percent (35%) of the gross
revenues of the Competing Business are derived from the provision of Competing
Services.

      

      (iii)  “Covenant Period”
shall mean the period of time from the date of this Agreement to the date that
is two years after the Date of Termination.

      

      (iv)  “Customers” shall mean
actual customers, clients or referral sources to or on behalf of which the
Company provides Competing Services (A) during the two years prior to the date
of this Agreement and (B) during the Covenant Period.

      

      (v)  “Restricted Territory”
shall mean the 48 continuous states of the continental United
States.

      

      (b)           Limitation on
Competition.  In consideration of the Company’s entering into
this Agreement, the Executive agrees that during the Covenant Period, the
Executive will not, without the prior written consent of the Company, anywhere
within the Restricted Territory, either directly or indirectly, alone or in
conjunction with any other party, accept, enter into or take any action in
conjunction with or in furtherance of a Competitive Position (other than action
to reject an unsolicited offer of a Competitive Position).

      

      (c)           Limitation on Soliciting
Customers.  In consideration of the Company’s entering into
this Agreement, the Executive agrees that during the Covenant Period, the
Executive will not, without the prior written consent of the Company, alone or
in conjunction with any other

       

      
        
          
          

        

        
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       party,
solicit, divert or appropriate or attempt to solicit, divert or appropriate on
behalf of a Competing Business with which Executive has a Competitive Position
any Customer located in the Restricted Territory (or any other Customer with
which the Executive had any direct contact on behalf of the Company) for the
purpose of providing the Customer or having the Customer provided with a
Competing Service.

      

      (d)           Limitation on Soliciting
Personnel or Other Parties.  In consideration of the Company’s
entering into this Agreement, the Executive hereby agrees that he will not,
without the prior written consent of the Company, alone or in conjunction with
any other party, solicit or attempt to solicit any employee, consultant,
contractor, independent broker or other personnel of the Company or any
subsidiary of the Company to terminate, alter or lessen that party’s affiliation
with the Company or to violate the terms of any agreement or understanding
between such employee, consultant, contractor or other person and the Company or
any subsidiary of the Company.

      

      (e)           Acknowledgement.  The
parties acknowledge and agree that the Protective Covenants are reasonable as to
time, scope and territory given the Company’s need to protect its trade secrets
and confidential business information and given the substantial payments and
benefits to which the Executive may be entitled pursuant to this
Agreement.

      

      (f)           Remedies.  The
parties acknowledge that any breach or threatened breach of a Protective
Covenant by the Executive is reasonably likely to result in irreparable injury
to the Company, and therefore, in addition to all remedies provided at law or in
equity, the Executive agrees that the Company shall be entitled to a temporary
restraining order and a permanent injunction to prevent a breach or contemplated
breach of the Protective Covenant.  If the Company seeks an
injunction, the Executive waives any requirement that the Company post a bond or
any other security.

      

      6.           No Obligation to Mitigate
Damages; No Effect on Other Contractual Rights.

      

      (a)           All
compensation and benefits provided to the Executive under this Agreement are in
consideration of the Executive’s services rendered to the Company and of the
Executive’s adhering to the terms set forth in Section 5 hereof and the
Executive shall not be required to mitigate damages or the amount of any payment
provided for under this Agreement by seeking other employment or otherwise, nor
shall the amount of any payment provided for under this Agreement be reduced by
any compensation earned by the Executive as the result of employment by another
employer after the Date of Termination, or otherwise.

      

      (b)           The
provisions of this Agreement, and any payment provided for hereunder, shall not
reduce any amounts otherwise payable, or in any way diminish the Executive’s
existing rights, or rights which would accrue solely as a result of the passage
of time, under any Benefit Plan, Incentive Plan or Securities Plan, employment
agreement or other contract, plan or arrangement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      7.           Successor to the
Company.

      

      (a)           The
Company will require any successor or assign (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company (“Successor or Assign”), by agreement in
form and substance satisfactory to the Executive, expressly, absolutely and
unconditionally to assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no
such succession or assignment had taken place.  Any failure of the
Company to obtain such agreement prior to the effectiveness of any such
succession or assignment shall be a material breach of this Agreement and shall
entitle the Executive to terminate the Executive’s employment for Good
Reason.  As used in this Agreement (except for purposes of defining
“Change in Control” in Section 2), “Company” shall mean the Company as
hereinbefore defined and any Successor or Assign to the Company.  If
at any time during the term of this Agreement the Executive is employed by any
corporation a majority of the voting securities of which is then owned by the
Company, “Company” as used in Sections 3, 4, 12 and 14 hereof shall in
addition include such employer.  In such event, the Company agrees
that it shall pay or shall cause such employer to pay any amounts owed to the
Executive pursuant to Section 4 hereof.

      

      (b)           This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal and legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees.  If the Executive should
die while any amounts are still payable to him hereunder, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to the Executive’s devisee, legatee, or the designee or, if there
be no such designee, to the Executive’s estate.

      

      8.           Notice.  For
purposes of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when delivered by overnight courier service (e.g., Federal Express) or mailed by
United States certified mail, return receipt required, postage prepaid, as
follows:

      

      If to Company:

      

      Matria Healthcare, Inc.

      1850 Parkway Place, 12th
Floor

      Marietta,
GA  30067

      Attention:  General
Counsel

      

      If to Executive:

      

      Thomas D. Underwood

      10570 Oxford Mill Circle

      Alpharetta,
GA  30022

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      or such
other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective
only upon receipt.

      

      9.           Miscellaneous.  No
provisions of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by the
Executive and the Company.  No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.

      

      10.           Validity.  The
invalidity or unenforceability of any provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

      

      11.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

      

      12.           Legal Fees and
Expenses.  The Company shall pay all legal fees, expenses and
damages which the Executive may incur as a result of the Executive’s instituting
legal action to enforce his rights hereunder, or in the event the Company
contests the validity, enforceability or the Executive’s interpretation of, or
determinations under, this Agreement.  If the Executive is the
prevailing party or recovers any damages in such legal action, the Executive
shall be entitled to receive in addition thereto pre-judgment and post-judgment
interest on the amount of such damages.

      

      13.           Section 409A
Indemnification.  Notwithstanding any other provision of this
Agreement, it is intended that any payment or benefit which is provided pursuant
to or in connection with this Agreement which is considered to be nonqualified
deferred compensation subject to Section 409A of the Code shall be provided and
paid in a manner, and at such time and in such form, as complies with the
applicable requirements of Section 409A of the Code.  The Company and
the Executive shall cooperate to modify this Agreement as necessary to comply
with the requirements of Section 409A of the Code.  In the event the
Company does not so cooperate, it shall indemnify and hold harmless the
Executive on an after-tax basis from any tax or interest penalty imposed under
Section 409A of the Code with respect to any payment or benefit provided
pursuant to this Agreement or any other plan or arrangement sponsored or
maintained by the Company to the extent such tax or interest penalty is imposed
as a result of any failure of the Company to comply with Section 409A of the
Code with respect to such payment or benefit.

      

      14.           Severability;
Modification.  All provisions of this Agreement are severable
from one another, and the unenforceability or invalidity of any provision of
this Agreement shall not affect

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       the
validity or enforceability of the remaining provisions of this Agreement, but
such remaining provisions shall be interpreted and construed in such a manner as
to carry out fully the intention of the parties.  Should any judicial
body interpreting this Agreement deem any provision of this Agreement to be
unreasonably broad in time, territory, scope or otherwise, it is the intent and
desire of the parties that such judicial body, to the greatest extent possible,
reduce the breadth of such provision to the maximum legally allowable parameters
rather than deeming such provision totally unenforceable or
invalid.

      

      15.           Confidentiality.  The
Executive acknowledges that he has previously entered into, and continues to be
bound by the terms of, a Confidentiality and Non-Solicitation Agreement with the
Company.

      

      16.           Agreement Not an Employment
Contract.  This Agreement shall not be deemed to constitute or
be deemed ancillary to an employment contract between the Company and the
Executive, and nothing herein shall be deemed to give the Executive the right to
continue in the employ of the Company or to eliminate the right of the Company
to discharge the Executive at any time.

      

      

      IN WITNESS WHEREOF, the
parties have executed this Agreement to be effective as of the date first above
written.

      

      

      MATRIA HEALTHCARE, INC.

      

      

      By:           

      Its Chief Administrative
Officer

      

      

      THOMAS D. UNDERWOOD

      

      

      Executive

      

      
        
           

        

        
          13ex101.htm

    EXHIBIT 10.1

     

    THE SECURITIES REPRESENTED HEREBY MAY
NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE
PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE
SOLD PURSUANT TO RULE 144(K), OR (III) THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE
WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 OR QUALIFICATION UNDER
APPLICABLE STATE SECURITIES LAWS.

    

    SUBJECT TO THE PROVISIONS OF SECTION 10
HEREOF, THIS WARRANT SHALL BE VOID AFTER 11:59 P.M. EASTERN TIME ON FEBRUARY
27th, 2014
(the “EXPIRATION DATE”).

    

    Warrant
No. 033

    

    WOIZE
INTERNATIONAL LTD.

    

    WARRANT
TO PURCHASE 1,000,000­­­­­­­ SHARES OF

    COMMON
STOCK, PAR VALUE $.001 PER SHARE

    

    For VALUE RECEIVED, _______(“Holder”),
is entitled to purchase, subject to the provisions of this Warrant, from Woize
International Ltd., a Nevada corporation (the “Company”), at any time not later
than 11:59 P.M., Eastern time, on the Expiration Date (as defined above), at an
exercise price per share equal to $0.09 USD (the exercise price in effect being
herein called the “Warrant Price”), _________ shares (“Warrant Shares”) of the
Company’s Common Stock, par value $.001 per share (“Common
Stock”).  The number of Warrant Shares purchasable upon exercise of
this Warrant and the Warrant Price shall be subject to adjustment from time to
time as described herein.

    

    Section
1.

    

    Definitions.

    

    The
following words and terms as used in this Warrant shall have the following
meanings:

    

    (i)
"Approved Stock Plan" means any employee benefit plan which has been approved by
the Board of Directors of the Company, pursuant to which the Company's
securities may be issued to any employee, officer, director, or consultants for
services provided to the Company as set forth in Schedule 4(k)of the Securities
Purchase Agreement.

    

    (ii)
"Business Day" means any day other than Saturday, Sunday or other day on which
commercial banks in the City of New York are authorized or required by law to
remain closed.

    

    (iii)
"Closing Bid Price" means the closing bid price of Common Stock as quoted on the
Principal Market (as reported by Bloomberg Financial Markets ("Bloomberg")
through its "Volume at Price" function).

    

    (iv)
"Common Stock" means (i) the Company's common stock, par value $0.001 per share,
and (ii) any capital stock into which such Common Stock shall have been changed
or any capital stock resulting from a reclassification of such Common
Stock.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (vii)
"Expiration Date" means the date six (6) years from the Issuance Date of this
Warrant or, if such date falls on a Saturday, Sunday or other day on which banks
are required or authorized to be closed in the City of New York or the State of
New York or on which trading does not take place on the Principal Exchange
or automated quotation system on which the Common Stock is traded (a "Holiday"),
the next date that is not a Holiday.

    

    (viii)
"Issuance Date" means the date hereof.

    

    (ix)
"Options" means any rights, warrants or options to subscribe for or purchase
Common Stock or Convertible Securities.

    

    (x)
"Other Securities" means (i) those options and warrants of the Company issued
prior to, and outstanding on, the Issuance Date of this Warrant, (ii) the shares
of Common Stock issuable on exercise of such options and warrants, provided such
options and warrants are not amended after the Issuance Date of this Warrant and
(iii) the shares of Common Stock issuable upon exercise of this
Warrant.

    

    (xi)
"Person" means an individual, a limited liability company, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization and a
government or any department or agency thereof.

    

    (xii)
"Principal Market" means the New York Stock Exchange, the American Stock
Exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, whichever is
at the time the principal trading exchange or market for such security, or the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg or, if no bid or sale information is reported for such
security by Bloomberg, then the average of the bid prices of each of the market
makers for such security as reported in the "pink sheets" by the National
Quotation Bureau, Inc.

    

    (xiii)
"Securities Act" means the Securities Act of 1933, as amended.

    

    (xiv)
"Warrant" means this Warrant and all Warrants issued in exchange, transfer or
replacement thereof.

    

    (xv)
"Warrant Exercise Price" shall be $0.09 or as subsequently adjusted as
provided in Section 8 hereof, but in no event below par value of the Common
Stock.

    

    (xvi)
"Warrant Shares" means the shares of Common Stock issuable at any time upon
exercise of this Warrant.

     

    Other
Definitional Provisions.

    

    (i)
Except as otherwise specified herein, all references herein (A) to the Company
shall be deemed to include the Company's successors and (B) to any applicable
law defined or referred to herein shall be deemed references to such applicable
law as the same may have been or may be amended or supplemented from time to
time.

    

    (ii) When
used in this Warrant, the words "herein", "hereof", and "hereunder" and words of
similar import, shall refer to this Warrant as a whole and not to any provision
of this Warrant, and the words "Section", "Schedule", and "Exhibit" shall refer
to Sections of, and Schedules and Exhibits to, this Warrant unless otherwise
specified.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (iii)
Whenever the context so requires, the neuter gender includes the
masculine or feminine, and the singular number includes the plural, and
vice versa.

    

    Section 1.Transfers.  As
provided herein, this Warrant may be transferred only pursuant to a registration
statement filed under the Securities Act of 1933, as amended (the “Securities
Act”), or an exemption from such registration.  Subject to such
restrictions, the Company shall transfer this Warrant from time to time upon the
books to be maintained by the Company for that purpose, upon surrender thereof
for transfer properly endorsed or accompanied by appropriate instructions for
transfer and such other documents as may be reasonably required by the Company,
including, if required by the Company, an opinion of its counsel to the effect
that such transfer is exempt from the registration requirements of the
Securities Act, to establish that such transfer is being made in accordance with
the terms hereof, and a new Warrant shall be issued to the transferee and the
surrendered Warrant shall be canceled by the Company.

    

    Section
3.   Exercise of Warrant.

    

    (a)
Subject to the terms and conditions hereof, this Warrant may be exercised by the
holder hereof then registered on the books of the Company, pro rata as
hereinafter provided, at any time on any Business Day on or after the opening of
business on such Business Day, commencing with the first day after the date
hereof, and prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by
delivery of a written notice, in the form of the subscription notice attached as
Exhibit A hereto (the "Exercise Notice"), of such holder's election to exercise
this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, payment to the Company of an amount equal to the Warrant Exercise
Price(s) applicable to the Warrant Shares being purchased, multiplied by the
number of Warrant Shares (at the applicable Warrant Exercise Price) as to which
this Warrant is being exercised (plus any applicable issue or transfer
taxes)(the "Aggregate Exercise Price") in cash or wire transfer of immediately
available funds and the surrender of this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction) to a common carrier for overnight delivery to the Company as soon
as practicable following such date ("Cash Basis") or (ii) by delivering an
Exercise Notice and in lieu of making payment of the Aggregate Exercise Price in
cash or wire transfer, elect instead to receive upon such exercise the "Net
Number" of shares of Common Stock determined according to the following formula
(the "Cashless Exercise"):

    

                       Net
Number = (A x B) - (A x C)

                                        
    -----------------

                                            B

    
      
        
          --

        

         

      

      
        3

        
          

        

      

      
         

      

    

    For
purposes of the foregoing formula:

    

    A = the
total number of Warrant Shares with respect to which this Warrant is then
being exercised.

    

    B = the
Closing Bid Price of the Common Stock on the date of exercise of the
Warrant.

    

    C = the
Warrant Exercise Price then in effect for the applicable Warrant Shares at
the time of such exercise.

    

         In
the event of any exercise of the rights represented by this Warrant in
compliance with this Section 2, the Company shall on or before the fifth (5th)
Business Day following the date of receipt of the Exercise Notice, the Aggregate
Exercise Price and this Warrant (or an indemnification undertaking with respect
to this Warrant in the case of its loss, theft or destruction) and the receipt
of the representations of the holder specified in Section 6 hereof, if requested
by the Company (the "Exercise Delivery Documents"), and if the Common Stock is
DTC eligible, credit such aggregate number of shares of Common Stock to which
the holder shall be entitled to the holder's or its designee's balance account
with The Depository Trust Company; provided, however, if the holder who
submitted the Exercise Notice requested physical delivery of any or all of the
Warrant Shares, or, if the Common Stock is not DTC eligible then the Company
shall, on or before the fifth (5th) Business Day following receipt of the
Exercise Delivery Documents, issue and surrender to a common carrier for
overnight delivery to the address specified in the Exercise Notice, a
certificate, registered in the name of the holder, for the number of shares of
Common Stock to which the holder shall be entitled pursuant to such request.
Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to in
clause (i) or (ii) above the holder of this Warrant shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised. In the case of a dispute
as to the determination of the Warrant Exercise Price, the Closing Bid Price or
the arithmetic calculation of the Warrant Shares, the Company shall promptly
issue to the holder the number of Warrant Shares that is not disputed and shall
submit the disputed determinations or arithmetic calculations to the holder via
facsimile within one (1) Business Day of receipt of the holder's Exercise
Notice.

    

    (b) If
the holder and the Company are unable to agree upon the determination of the
Warrant Exercise Price or arithmetic calculation of the Warrant Shares within
one (1) day of such disputed determination or arithmetic calculation being
submitted to the holder, then the Company shall immediately submit via facsimile
(i) the disputed determination of the Warrant Exercise Price or the Closing Bid
Price to an independent, reputable investment banking firm or (ii) the disputed
arithmetic calculation of the Warrant Shares to its independent, outside
accountant. The Company shall cause the investment banking firm or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the holder of the results no later than
forty-eight(48) hours from the time it receives the disputed determinations or
calculations. Such investment banking firm's or accountant's determination or
calculation, as the case may be, shall be deemed conclusive absent manifest
error.

    

    (c)
Unless the rights represented by this Warrant shall have expired or shall have
been fully exercised, the Company shall, as soon as practicable and in no event
later than five (5) Business Days after any exercise and at its own expense,
issue a new Warrant identical in all respects to this Warrant exercised except
it shall represent rights to purchase the number of Warrant
Shares purchasable immediately prior to such exercise under this Warrant
exercised, less the number of Warrant Shares with respect to which such Warrant
is exercised.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (d) No
fractional Warrant Shares are to be issued upon any pro rata exercise of this
Warrant, but rather the number of Warrant Shares issued upon such exercise of
this Warrant shall be rounded up or down to the nearest whole
number.

    

    (e) If
the Company or its Transfer Agent shall fail for any reason or for no reason to
issue to the holder within ten (10) days of receipt of the Exercise Delivery
Documents, a certificate for the number of Warrant Shares to which the holder is
entitled or to credit the holder's balance account with The Depository Trust
Company for such number of Warrant Shares to which the holder is entitled upon
the holder's exercise of this Warrant, the Company shall, in addition to any
other remedies under this Warrant or the Placement Agent Agreement or otherwise
available to such holder, pay as additional damages in cash to such holder on
each day the issuance of such certificate for Warrant Shares is not timely
effected an amount equal to 0.025% of the product of (A) the sum of the number
of Warrant Shares not issued to the holder on a timely basis and to which
the holder is entitled, and (B) the Closing Bid Price of the Common Stock for
the trading day immediately preceding the last possible date which the Company
could have issued such Common Stock to the holder without violating this Section
2.

    

    Section
4.  Covenants as to Common Stock.  The Company hereby
covenants and agrees as follows:

    

    (a) This
Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant will upon issuance be, duly authorized and validly issued.

    

    (b) All
Warrant Shares which may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issue thereof.

    

    (c)
During the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and reserved at least
one hundred percent (100%) of the number of shares of Common Stock needed to
provide for the exercise of the rights then represented by this Warrant and the
par value of said shares will at all times be less than or equal to the
applicable Warrant Exercise Price.

    

    (d) If at
any time after the date hereof the Company shall file a registration statement,
the Company shall include the Warrant Shares issuable to the holder, pursuant to
the terms of this Warrant and shall maintain, so long as any other shares of
Common Stock shall be so listed, such listing of all Warrant Shares from time to
time issuable upon the exercise of this Warrant; and the Company shall so list
on each national securities exchange or automated quotation system, as the case
may be, and shall maintain such listing of, any other shares of capital stock of
the Company issuable upon the exercise of this Warrant if and so long as any
shares of the same class shall be listed on such national securities exchange or
automated quotation system.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (e) The
Company will not, by amendment of its Articles of Incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed by it
hereunder, but will at all times in good faith assist in the carrying out of all
the provisions of this Warrant and in the taking of all such action as may
reasonably be requested by the holder of this Warrant in order to protect the
exercise privilege of the holder of this Warrant against dilution or other
impairment, consistent with the tenor and purpose of this Warrant. The Company
will not increase the par value of any shares of Common Stock receivable upon
the exercise of this Warrant above the Warrant Exercise Price then in effect,
and (ii) will take all such actions as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant.

    

    (f) This
Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation or acquisition of all or substantially all of the Company's
assets.

    

    Section
5. Compliance with the
Securities Act of 1933. Unless a current registration statement under the
Securities Act of 1933, as amended, shall be in effect with respect to the
securities to be issued upon exercise of this Warrant, the Holder, by accepting
this Warrant, covenants and agrees that, at the time of exercise hereof, and at
the time of any proposed transfer of securities acquired upon exercise hereof,
the Company may require Holder to make such representations, and may place such
legends on certificates representing the Common Shares issuable upon exercise of
this Warrant, as may be reasonably required in the opinion of counsel to the
Company to permit such Common Shares to be issued without such
registration.

    

    Section 6. Payment of
Taxes.  The Company will pay any documentary stamp taxes
attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the Holder in respect of which such shares are issued,
and in such case, the Company shall not be required to issue or deliver any
certificate for Warrant Shares or any Warrant until the person requesting the
same has paid to the Company the amount of such tax or has established to the
Company’s reasonable satisfaction that such tax has been paid.  The
Holder shall be responsible for income taxes due under federal, state or other
law, if any such tax is due.

    

    Section
7. Ownership and Transfer.

    

    (a) The
Company shall maintain at its principal executive offices (or such other office
or agency of the Company as it may designate by notice to the holder hereof), a
register for this Warrant, in which the Company shall record the name and
address of the person in whose name this Warrant has been issued, as well as the
name and address of each transferee. The Company may treat the person in whose
name any Warrant is registered on the register as the owner and holder thereof
for all purposes, notwithstanding any notice to the contrary, but in all events
recognizing any transfers made in accordance with the terms of this
Warrant.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    Section
8. Adjustment of Warrant Exercise Price and Number of Shares. The Warrant
Exercise Price and the number of shares of Common Stock issuable upon exercise
of this Warrant shall be adjusted from time to time as follows:

    

    (a)
Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common
Stock. If the Company at any time after the date of issuance of this Warrant
subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding shares of Common Stock into a greater
number of shares, any Warrant Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of shares of
Common Stock obtainable upon exercise of this Warrant will be proportionately
increased. If the Company at any time after the date of issuance of this Warrant
combines (by combination, reverse stock split or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, any
Warrant Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of Warrant Shares issuable upon
exercise of this Warrant will be proportionately decreased. Any adjustment under
this Section 8(d) shall become effective at the close of business on the date
the subdivision or combination becomes effective.

    

    (b)
Distribution of Assets. If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of
common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a "Distribution"), at any time
after the issuance of this Warrant, then, in each such case:

    

    (i) any
Warrant Exercise Price in effect immediately prior to the close of business on
the record date fixed for the determination of holders of Common Stock entitled
to receive the Distribution shall be reduced, effective as of the close of
business on such record date, to a price determined by multiplying such Warrant
Exercise Price by a fraction of which (A) the numerator shall be the Closing
Sale Price of the Common Stock on the trading day immediately preceding such
record date minus the value of the Distribution (as determined in good faith by
the Company's Board of Directors) applicable to one share of Common Stock, and
(B) the denominator shall be the Closing Sale Price of the Common Stock on the
trading day immediately preceding such record date; and

     

    (ii)
either (A) the number of Warrant Shares obtainable upon exercise of
this Warrant shall be increased to a number of shares equal to the number
of shares of Common Stock obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of
Common Stock entitled to receive the Distribution multiplied by the
reciprocal of the fraction set forth in the immediately preceding clause
(i), or (B) in the event that the Distribution is of common stock of a company
whose common stock is traded on a national securities exchange or a
national automated quotation system, then the holder of this Warrant shall
receive an additional warrant to purchase Common Stock, the terms of which
shall be identical to those of this Warrant, except that such warrant shall
be exercisable into the amount of the assets that would have been payable
to the holder of this Warrant pursuant to the Distribution had the holder
exercised this Warrant immediately prior to such record date and with an
exercise price equal to the amount by which the exercise price of
this Warrant was decreased with respect to the Distribution pursuant to the
terms of the immediately preceding clause (i).

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c)
Certain Events. If any event occurs of the type contemplated by
the provisions of this Section 8 but not expressly provided for by such
provisions (including, without limitation, the granting of stock
appreciation rights, phantom stock rights or other rights with equity
features), then the Company's Board of Directors will make an appropriate
adjustment in the Warrant Exercise Price and the number of shares of Common
Stock obtainable upon exercise of this Warrant so as to protect the rights
of the holders of the Warrants; provided, except as set forth in section
8(d),that no such adjustment pursuant to this Section 8(f) will increase
the Warrant Exercise Price or decrease the number of shares of Common Stock
obtainable as otherwise determined pursuant to this Section 8.

    

    (d)
Notices.

    

    (i)
Immediately upon any adjustment of the Warrant Exercise Price, the
Company will give written notice thereof to the holder of this Warrant,
setting forth in reasonable detail, and certifying, the calculation of such
adjustment.

    

    (ii) The
Company will give written notice to the holder of this Warrant at least ten
(10) days prior to the date on which the Company closes its books or takes
a record (A) with respect to any dividend or distribution upon the Common
Stock, (B) with respect to any pro rata subscription offer to holders of
Common Stock or (C) for determining rights to vote with respect to any
Organic Change (as defined below), dissolution or liquidation, provided
that such information shall be made known to the public prior to or in
conjunction with such notice being

    provided
to such holder.

    

    (iii) The
Company will also give written notice to the holder of this Warrant
at least ten (10) days prior to the date on which any Organic Change,
dissolution or liquidation will take place, provided that such information
shall be made known to the public prior to or in conjunction with such
notice being provided to such holder.

    

    Section
9.  Purchase Rights; Reorganization, Reclassification,
Consolidation, Merger or Sale.

    

    

    Section
10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company shall promptly, on receipt
of an indemnification undertaking (or, in the case of a mutilated Warrant,
the Warrant), issue a new Warrant of like denomination and tenor as this
Warrant so lost, stolen, mutilated or destroyed.

    

    Section
11. Notice. Any notices, consents, waivers or other communications required
or permitted to be given under the terms of this Warrant must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of receipt is received by the sending party
transmission is mechanically or electronically generated and kept on file
by the sending party); or (iii) one Business Day after deposit with a
nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile
numbers for such communications shall be:

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    If to the
Holder:              _____________________

                              Address

                              Address

                              Telephone:
(XX) XXX-XXX

                              Facsimile:
(XX) XXX-XXX

    

    If to the
Company, to:    Sichenzia Ross Friedman Ference
LLP

                             
61 Broadway, 32nd
Floor

                              New
York, NY 10018

                              Attention:
Richard Friedman, Esq.

                              Telephone:
(212) 930-9700

                              Facsimile:
(212) 930-9725

    

    With a
copy
to:              Woize
International Ltd

                              3rd Floor,
14 South Molton Street

                              Mayfair,
London, UK W1K 5QP

                              Telephone:
+44 (0) 207 499-1730

    

    Each
party shall provide five days' prior written notice to the other party of
any change in address or facsimile number. Written confirmation of receipt
(A) given by the recipient of such notice, consent, facsimile, waiver or
other communication, (or (B) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt
by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above,
respectively.

    

    Section
12. Date. The date of this Warrant is set forth on page 1 hereof.
This Warrant, in all events, shall be wholly void and of no effect after
the close of business on the Expiration Date, except that notwithstanding
any other provisions hereof, the provisions of Section 8(b) shall continue
in full force and effect after such date as to any Warrant Shares or other
securities issued upon the exercise of this Warrant.

    

    Section
13. Amendment and Waiver. Except as otherwise provided herein,
the provisions of the Warrants may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of
the holders of Warrants representing at least two-thirds of the Warrant
Shares issuable upon exercise of the Warrants then outstanding; provided
that, except for Section 8(d), no such action may increase the Warrant
Exercise Price or decrease the number of shares or class of stock
obtainable upon exercise of any Warrant without the written consent of the
holder of such Warrant.

    

    Section 14. Benefits.  Nothing
in this Warrant shall be construed to give any person, firm or corporation
(other than the Company and the Holder) any legal or equitable right, remedy or
claim, it being agreed that this Warrant shall be for the sole and exclusive
benefit of the Company and the Holder.

    

    Section 15. 
Successors.  All the covenants and provisions hereof by or for
the benefit of the Holder shall bind and inure to the benefit of its respective
successors and assigns hereunder.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    Section 16. Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Warrant shall be
governed by, and construed in accordance with, the internal laws of the State of
Nevada, without reference to the choice of law provisions
thereof.  The Company and, by accepting this Warrant, the Holder, each
irrevocably submits to the exclusive jurisdiction of the courts of the State of
Nevada located in Clark County and federal courts located in Clark County,
Nevada for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Warrant and the transactions contemplated
hereby.  Service of process in connection with any such suit, action
or proceeding may be served on each party hereto anywhere in the world by the
same methods as are specified for the giving of notices under this
Warrant.  The Company and, by accepting this Warrant, the Holder, each
irrevocably consents to the jurisdiction of any such court in any such suit,
action or proceeding and to the laying of venue in such court.  The
Company and, by accepting this Warrant, the Holder, each irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought
in such courts and irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.

    

    EACH
OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT
TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

    

    Section 17. No Rights as
Stockholder.  Prior to the exercise of this Warrant, the Holder
shall not have or exercise any rights as a stockholder of the Company by virtue
of its ownership of this Warrant.

    

    Section 18. Section
Headings.  The section headings in this Warrant are for the
convenience of the Company and the Holder and in no way alter, modify, amend,
limit or restrict the provisions hereof.

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of
the 27th day of
February, 2008.

     

     

     

    
      
        	 	WOIZE INTERNATIONAL
      LTD.	 
	 	 	 	 
	 	
                By:
      

              	/s/ 	 
	 	 	Name: Martin
      Thorp	 
	 	 	Title:
      Chief Financial Officer	 
	 	 	 	 

      

    

     

    
 

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT A
TO WARRANT

    

    

    EXERCISE
NOTICE

    

    

    TO BE
EXECUTED

    BY THE
REGISTERED HOLDER TO EXERCISE THIS WARRANT

    

    

    WOIZE
INTERNATIONAL LIMITED.

    

         The
undersigned holder hereby exercises the right to purchase ______________
of the shares of Common Stock ("Warrant Shares") of Woize International Ltd, a
Nevada corporation (the "Company"), evidenced by the
attached Warrant (the "Warrant"). Capitalized terms used herein and not
otherwise
defined shall have the respective meanings set forth in the
Warrant.

    

    Specify
Method of exercise by check mark:

    

    1.   ___
Cash Exercise

    

         (a)
Payment of Warrant Exercise Price. The holder shall pay the
Aggregate Exercise Price of $______________ to the Company in accordance
with the terms of the Warrant.

    

         (b)
Delivery of Warrant Shares. The Company shall deliver to the
holder _________
Warrant Shares in accordance with the terms of the Warrant.

    

    

    

    2.   ___
Cashless Exercise

    

         (a)
Payment of Warrant Exercise Price. In lieu of making payment of
the Aggregate
Exercise Price, the holder elects to receive upon such exercise the Net
Number of shares of Common Stock determined in accordance with the terms of
the Warrant.

    

         (b)
Delivery of Warrant Shares. The Company shall deliver to the
holder _________
Warrant Shares in accordance with the terms of the Warrant.

    

    

    Date:
_______________ __, ______

    

    Name of
Registered Holder

     

    
    

     

    
      	By:  	 	 	 
	Name:	 	 	 
	Title:	 	 	 

    

     

     

    12

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