Document:

EXHIBIT
10.24

 

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, but  will 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)  with the prior written approval of the
Committee (not to be unreasonably

 

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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  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

 

3

 

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/ CAROL HANNAH

  	
   

  
	
   

  	
  Title: Director

  	
  CAROL HANNAH

  
	
   

  	
   

  
	
  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

 

6

 

TRANSFER.”

 

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)

  

 

7EXHIBIT 10.25

 

WH HOLDINGS (CAYMAN ISLANDS) LTD.

STOCK INCENTIVE PLAN

(as restated on November 5, 2003)

 

1.                                       Purpose of Plan.

 

The
WH Holdings (Cayman Islands) Ltd. Stock Incentive Plan (the “Plan”) is
designed:

 

(a)                                  to promote the
long term financial interests and growth of WH Holdings (Cayman Islands) Ltd.
(the “Company”) and its affiliates by attracting and retaining employees with
the training, experience and ability to enable them to make a substantial
contribution to the success of the business of the Company and its affiliates;

 

(b)                                 to motivate
employees by means of growth-related incentives to  achieve long range goals;

 

(c)                                  to further the
alignment of interests of participants with those  of the equityholders of the Company through
opportunities for increased  ownership in the Company; and

 

(d)                                 to be a written
compensatory benefit plan within the meaning of Rule 701 promulgated under the
Securities Act.

 

2.                                       Definitions.

 

As
used in the Plan, the following words will have the following meanings:

 

(a)                                  “Affiliate”
means, with respect to the Company, any corporation  directly or indirectly controlling, controlled
by, or under common control  with, the Company or any other entity designated by the Committee in
which the  Company or an
Affiliate has an interest.

 

(b)                                 “Board” means
the Board of Directors of the Company.

 

(c)                                  “Change of
Control” means an Organic Transaction as defined in the Amended and Restated
Memorandum and Articles of Association of the Company.

 

(d)                                 “Code” means the
Internal Revenue Code of 1986, as amended.

 

(e)                                  “Committee”
means one or more committees each comprised of not  less than three members of the Board appointed
by the Board to administer the  Plan or a specified portion thereof; provided,
however, that if, at any time,  there will be only one director serving on the
Board, the Committee may be  composed of the sole director. Unless otherwise determined by the Board,
if the  Common Shares
become registered under Section 12 of the Exchange Act and if the  Committee is authorized to
grant Options subject to Section 16 of the Exchange  Act, each member of the
Committee will be a “non-employee director” within the  meaning of applicable Rule
16b-3 under the Exchange Act.

 

(f)                                    “Common Shares”
means the common shares, par value $0.001 per share, of the Company.

 

(g)                                 “Employee” means
a person, including an officer, in the  employment of the Company or one of its
Affiliates who, in the opinion of the  Committee, is, or is expected to be, primarily
responsible for the management,  growth or protection of some part or all of
the business of the Company.

 

(h)                                 “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

(i)                                     “Exercise Price”
means the price at which a Participant may  purchase a Common Share, as provided in the
Option Agreement.

 

1

 

(j)                                     “Fair Market
Value” means the fair market value of a Share as of  a particular date. If at any such time such
Shares are not listed or admitted  for trading on any national securities  exchange or quoted on Nasdaq
or a similar service, the Fair Market Value for  such Shares means the fair market value of
such Shares at such time as  determined in good faith by the Committee. However, subsequent to an
Initial  Public Offering,
the Fair Market Value of a Common Share will be the average of  high bid and low asked prices
of Common Shares as reported on the exchange on  which it is listed as of such date, or if no
such quotation is made on such  date, the immediately preceding day on which
there were quotations as reported  in The Wall Street Journal.

 

(k)                                  “Grant” means an
award made to a Participant pursuant to the Plan  and described in Paragraph 5.

 

(l)                                     “Incentive Stock
Option” means an Option which satisfies all of  the applicable requirements of Code
Section 422.

 

(m)                               “Initial Public
Offering” means the underwritten public offering  by the Company of its Common Shares pursuant
to a registration statement (other  than a registration statement relating solely
to an employee benefit plan or  transaction covered by Rule 145 of the
Securities Act) that has been filed  under the Securities Act and declared
effective by the Securities and Exchange  Commission, or any other Federal agency at the
time administering theSecurities Act.

 

(n)                                 “Non-Statutory
Stock Option” means an Option which does not  satisfy all of the applicable requirements of
Code Section 422 or which by its  terms is not intended to be treated as an
Incentive Stock Option.

 

(o)                                 “Option” means
an option to purchase Common Shares.

 

(p)                                 “Option
Agreement” means an agreement between the Company and a Participant that sets
forth the terms, conditions and limitations applicable to  an Option Grant.

 

(q)                                 “Optionee” means
an individual who holds an Option.

 

(r)                                    “Participant”
means an Employee or Consultant of the Company or one of its Affiliates, to
whom one or more Grants have been made and such Grants have not all been
forfeited or terminated under the Plan.

 

(s)                                  “Preferred
Shares” means Preferred Shares as defined in the Amended and Restated
Memorandum and Articles of Association of WH Holdings (Cayman Islands) Ltd. and
known as the “12% Series A Cumulative Convertible Preferred Shares”.

 

(t)                                    “SAR” means a
stock appreciation right granted under the Plan.

 

(u)                                 “SAR Agreement”
means an agreement between the Company and a Participant that sets forth the
terms, conditions and limitations applicable to a SAR Grant.

 

(v)                                 “Securities Act”
means the Securities Act of 1933, as amended.

 

(w)                               “Share” means a
share of Common Shares.

 

(x)                                   “Shareholders’
Agreement” means the shareholders’ agreement, dated as of July 31, 2002,
by and among WH Holdings (Cayman Islands) Ltd., Whitney V, L.P., Whitney
Strategic Partners V, L.P., and WH Investments Ltd., and CCG Investments (BVI),
L.P., CCG Associates-QP, LLC, CCG Associates-AI, LLC, CCG GP Fund LLC, CCG
Investment Fund-AI, LP, CCG AV, LLC-Series C, CCG AV, LLC-Series E and CCG CI,
LLC, and certain other persons who may, from time to time, become party to the
agreement.

 

(y)                                 “Subsidiary”
means any entity in an unbroken chain of entities beginning with the Company if
each of the entities, or group of commonly controlled entities, other than the
last entity in the unbroken chain then owns 50% or more of the total combined
voting power of the other entities in such

 

2

 

chain.

 

(z)                                   “Total Exercise
Cost” means an amount equal to the Exercise Price multiplied by the number of
Shares being purchased pursuant to the Option.

 

3.                                       Administration
of Plan.

 

(a)                                  The Plan will be
administered by the Committee. The Committee may adopt its own rules of
procedure. Action of a majority of the members of the Committee taken at a
meeting, or action taken without a meeting by unanimous written consent, will
constitute action by the Committee. The Committee will have the power and
authority, in its discretion:

 

(i)

to
select the Participants to whom Grants may be made hereunder;

 

(ii)

to
determine the number of Shares to be covered by each Grant made hereunder;

 

(iii)

to
approve forms of Option and SAR Agreements for use under the Plan;

 

(iv)

to
determine the terms and conditions, not inconsistent with the terms of the Plan,
or any Grant made hereunder;

 

(v)

to
construe and interpret the terms of the Plan and Grants made under the Plan;

 

(vi)

to
adopt rules and procedures relating to the operation and the administration of
the Plan to accommodate the specific requirements of local laws and procedures.
Without limiting the generality of the foregoing, the Committee is specifically
authorized (A) to adopt the rules and procedures regarding the conversion of
local currency, withholding procedures and handling of stock certificates which
vary with local requirements, and (B) the adopt sub-plans and Plan addenda, as
the Committee deems desirable, to accommodate foreign tax laws, regulations and
practice;

 

(vii)

to
prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans and Plan addenda;

 

(viii)

to
authorize any person to execute on behalf of the Company any instrument
required to effect a Grant previously made by the Committee; and

 

(ix)

to
make all other determinations deemed necessary or advisable for administering
the Plan and any Grants made hereunder.

 

(b)                                 The Committee
may employ attorneys, consultants, accountants, appraisers, brokers or other
persons. The Committee, the Company, and the officers of the Company will be
entitled to rely upon the advice, opinions or valuations of any such persons.
All actions taken and all interpretations and determinations made by the
Committee in good faith will be final and binding upon all Participants, the
Company and all other interested persons. No member of the Committee will be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Grants, and all members of the Committee
will be fully protected by the Company with respect to any such action,
determination or interpretation.

 

4.                                       Eligibility.

 

3

 

Subject
to Paragraph 5(a), the Committee may from time to time make  Grants under the Plan to such
Employees of the Company or any of its  Affiliates, and in such form and having such
terms, conditions and limitations  as the Committee may determine. Prior to
participation in the Plan, the  Committee may require any Participant to
execute a Release and Waiver to Rights  to payments and benefits under certain plans
of Herbalife International, Inc.  Grants may be made singly, in combination or
in tandem. The terms, conditions  and limitations of each Grant under the Plan
will be set forth in an Option  Agreement or SAR Agreement (as the case may
be), in a form or forms approved by  the Committee; provided, however, that such
Option Agreement or SAR Agreement  will contain provisions dealing with the
treatment of Grants in the event of  the termination, death or disability of a
Participant, and may also include  provisions concerning the treatment of Grants
in the event of a Change of  Control of the Company. Notwithstanding the foregoing, Incentive Stock
Options  may only be
granted to Employees.

 

5.                                       Grants.

 

(a)                                  The Committee
may grant Incentive Stock Options only to Employees  of the Company or any “subsidiary corporation”
within the meaning of Code  Section 424(f). The Plan provides for grants only to Employees for
Incentive  Stock Options
and for grants to Employees and consultants for Non-Statutory  Stock Options.

 

(b)                                 At the time of
the Grant, the Committee will determine, and will  include in the Option Agreement, SAR Agreement
or other Plan rules, theexercise price and such other conditions and restrictions on the grant
or  exercise of the
Option or SAR as the Committee deems appropriate.

 

(c)                                  In addition to
any other restrictions contained in the Plan, an  Option or SAR granted under the Plan may not
be exercised more than 10 years  after the date it is granted. An Incentive
Stock Option may not have an  exercise price of less than 100% of the Fair Market Value of a Share on
the  date the Option
is granted.

 

(d)                                 If the aggregate
Fair Market Value (determined on the date the  Option is granted) of a Share subject to an
Incentive Stock Option which is  exercisable for the first time during any
calendar year exceeds $100,000, then  the portion of the Incentive Stock Option in
excess of the $100,000 limitation  will be treated as a Non-Statutory Stock
Option. If an Incentive Stock Option  is granted to a Participant who, at the time
the Option is granted, is deemed  to own more than 10% of the total combined
voting power of all classes of  shares of the Company or any “subsidiary
corporation” of the Company (as more  fully described in Code
Section 422(b)(6)), then (i) the exercise price of the  Option may not be less than
110% of the Fair Market Value of the Common Shares  on the date the Option is granted, and (ii)
such Option may not be exercisable  after the expiration of five years from the
date the Option is granted.

 

(e)                                  Payment of the
Option exercise price will be made in cash or, if  subsequent to an Initial Public Offering,
through the delivery of irrevocable  instructions to a broker to deliver promptly
to the Company an amount equal to  the Option exercise price, in accordance with
the terms of the Plan, the Option  Agreement and of any applicable guidelines of
the Committee in effect at the  time, and subject to increase for any
applicable withholding requirements.

 

(f)                                    Prior to or upon
exercise of an Option, the Committee may  determine, at its discretion, to pay to the
Participant an amount of cash equal  to the amount by which the Fair Market Value
(on the date of exercise) of the  Shares subject to the Option exceeds the
Option exercise price. In this case,  the Participant will not receive any Shares
and will not have to pay the Option  exercise price.

 

(g)                                 Upon exercise of
a SAR, the Participant shall receive from the  Company (a) Shares, (b) cash, or (c) a
combination of Shares and cash, as the  Committee shall determine, at its discretion,
unless the method of payment has  been prescribed in the SAR Agreement. The
amount of cash and/or the Fair Market  Value of the Shares received upon exercise of
the SAR shall, in the aggregate,  be equal to the amount by which the Fair
Market Value (on the date of exercise)  of the Shares subject to the SAR exceeds the
exercise price.

 

4

 

6.                                       Limitations and
Conditions.

 

(a)                                  The total number
of Shares available for Grants under the Plan  will be 18,717,546, reduced by any Shares
granted under the WH Holdings (Cayman  Islands) Ltd. Executive Officer Stock Option
Plan and the WH Holdings (Cayman  Islands) Ltd. Independent Directors Stock
Option Plan, subject to adjustment in  accordance with Paragraph 7 or 8 hereof. If an
Option or SAR expires, is  canceled, forfeited or otherwise terminated without being exercised or
settled,  the Shares
allocable to the unexercised portion of such Option or SAR shall  remain available for grant
under the Plan. Notwithstanding the foregoing, in no  event shall the aggregate number of Shares to be
issued hereunder in anyrolling twelve-month period exceed the number of Shares that the Company
is  permitted to
issue pursuant to the exemption from registration provided by Rule  701 of the Securities Act.

 

(b)                                 No Grants will
be made under the Plan more than 10 years after  the date the Plan is adopted by the Board or
is approved by the shareholders of  the Company, whichever is earlier, but the
terms of Grants made on or before  the expiration of the Plan may extend beyond
such expiration. At the time a  Grant is made or amended or the terms or
conditions of a Grant are changed, the  Committee may provide for limitations or
conditions on such Grant.

 

(c)                                  Nothing
contained herein will affect the right of the Company, an  Affiliate or a Subsidiary to
terminate any Participant’s employment or services  at any time or for any reason.

 

(d)                                 Other than as
specifically provided with regard to the death of a  Participant or as hereinafter provided, no
benefit under the Plan will be  subject in any manner to anticipation, alienation,
sale, transfer, assignment,  pledge, encumbrance, or charge, and any attempt to do so will be void.
No such  benefit will,
prior to receipt thereof by the Participant, be in any manner  liable for or subject to the
debts, contracts, liabilities, engagements, or  torts of the Participant.

 

(e)                                  Participants
will not be, and will not have any of the rights or  privileges of, equityholders of the Company in
respect of any Sharespurchasable in connection with any Grant unless and until certificates  representing any such Shares
have been issued by the Company to such  Participants. Prior to an Initial Public
Offering, each Participant will be  required to enter into the Shareholders’
Agreement with the Company, or execute  a joinder to the Shareholders’ Agreement in a
form provided by the Company,  upon the exercise of any Option or SAR and the issuance of Shares under
the  Plan.

 

(f)                                    No election as
to benefits or exercise of Options or SARs, or  other rights may be made during a Participant’s
lifetime by anyone other than  the Participant except by a legal representative appointed for or by the  Participant.

 

(g)                                 Absent express
provisions to the contrary, any Grant under the  Plan will not be deemed compensation for
purposes of computing benefits or  contributions under any retirement plan of the
Company, its Affiliates or its  Subsidiaries and will not affect any benefits
under any other benefit plan of  any kind now or subsequently in effect under
which the availability or amount  of benefits is related to level of compensation.
The Plan is not an “employee  benefit plan” under Section 3(3) of the Employee Retirement Income
Security Act  of 1974, as
amended.

 

(h)                                 Unless the
Committee determines otherwise, no benefit or promise  under the Plan will be
secured by any specific assets of the Company, its  Affiliates or any of its Subsidiaries, nor
will any assets of the Company, its  Affiliates or any of its Subsidiaries be
designated as attributable or  allocated to the satisfaction of the Company’s obligations under the
Plan.

 

(i)                                     Any right of the
Company to repurchase Shares, as determined  under an Option Agreement, shall terminate
following an Initial Public  Offering.

 

5

 

7.                                       Adjustments.

 

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, or as required under any Option Agreement or
SAR  Agreement, the
Committee may adjust appropriately the number or kind of Shares  or securities subject to the
Plan and available for or covered by Grants and  exercise prices related to outstanding Grants
and make such other revisions to  outstanding Grants as it deems are equitably
required. Any such adjustments for  Incentive Stock Options must meet the
requirements of Code Section 424(a).

 

8.                                       Merger,
Consolidation, Exchange, Acquisition, Liquidation or  Dissolution.

 

In
its absolute discretion, and on such terms and conditions as it  deems appropriate, coincident
with or after the grant of any Option or SAR, the  Committee may provide, with respect to the
merger or consolidation of the  Company into another corporation, the exchange
of all or substantially all of  the assets of the Company for the securities
of another corporation, a Change  of Control or the recapitalization,
reclassification, liquidation or  dissolution of the Company, either (a) that
such Option  or SAR cannot be
exercised after such event, in which case the Committee may  also provide (but will be
under no obligation to provide), either by the terms  of such Option or SAR or by a resolution
adopted prior to the occurrence of  such event, that for some period of time prior
to such event, such Option or  SAR will be exercisable as to all Shares subject thereto which are
exercisable,  or, by virtue of
the event, become exercisable, notwithstanding anything to the  contrary herein (but subject
to the provisions of Paragraph 6(b)) or that the  Option or SAR will be repurchased by the
Company at a specific price and that,  upon the occurrence of such event, such Option
or SAR will terminate and be of  no further force or effect, or (b) that even
if the Option or SAR will remain  exercisable after such event, from and after
such event, any such Option or SAR  will be exercisable only for the kind and
amount of securities and/or other  property, or the cash equivalent thereof,
receivable as a result of such event  by the holder of a number of Shares for which
such Option or SAR could have  been exercised immediately prior to such event, or that the Option or
SAR will  be repurchased
by the Company at a specific price.

 

In
addition, in the event of a Change of Control, the Committee may, in  its absolute discretion and
on such terms and conditions as it deems  appropriate, provide, either by the terms of
such Option or SAR or by a  resolution adopted prior to the occurrence of the Change of Control,
that such  Option or SAR
will be exercisable as to all or any portion of the Shares  subject thereto,
notwithstanding anything to the contrary herein (but subject  to the provisions of
Paragraph 6(b)).

 

9.                                       Securities Law
Requirements.

 

(a)                                  Shares shall not
be issued under the Plan unless the issuance and  delivery of the Shares comply with (or are
exempt from) all applicable  requirements of law, including (without limitation) the Securities Act,
the  rules and
regulations promulgated thereunder, state securities laws and  regulations and the
regulations of any stock exchange or other securities  markets on which the Company’s
securities may then be traded.

 

(b)                                 The Company each
year shall furnish to Optionees and shareholders  who have received Shares under the Plan its
balance sheet and income statement,  if required to do so pursuant to Rule 701 of
the Securities Act unless such  Optionees or shareholders are key Employees
whose duties with the Company  assure them access to equivalent information. Such balance sheet and
income  statement need
not be audited.

 

10.                                 Amendment and
Termination.

 

The
Board will have the authority to make such amendments to any terms  and conditions applicable to
outstanding Grants as are consistent with the Plan  provided that, except for adjustments under
Paragraph 7 or 8, no such action  will modify such Grant in a manner adverse to
the Participant without the

 

6

 

Participant’s
consent except as such modification is provided for or  contemplated in the terms of
the Grant.

 

The
Board may amend, suspend or terminate the Plan except that no such  action, other than an action
under Paragraph 7 or 8, may be taken which would,  without shareholder approval (but only if such
approval is necessary for  exemption under Section 16(b) of the Exchange Act or to meet the
applicable  requirements of
Code Section 422), increase the aggregate number of Shares  available for Grants under
the Plan, change the eligible class of individuals,  decrease the price of outstanding Options,
change the requirements relating to  the Committee or extend the term of the Plan.

 

11.                                 Withholding
Taxes.

 

The
Company will have the right to deduct from any cash payment made  under the Plan any federal,
state or local income or other taxes required by  law to be withheld with respect to such
payment. The Participant must pay to  the Company such amount as may be requested by
the Company for the purpose of  satisfying any liability for such withholding
taxes before the obligation of  the Company to deliver certificates for the
Shares upon the exercise of an  Option or SAR arises. Any Option Agreement or
SAR Agreement may provide that  the Participant may elect, in accordance with  any conditions set forth in
such Option Agreement or SAR Agreement, to pay a  portion or all of such withholding taxes in
Shares.

 

12.                                 Governing Law.

 

The
Plan will be governed by and construed and enforced in accordance  with the laws of the State of
New York, without regard to the conflicts of laws  principles thereof.

 

13.                                 Non-U.S.
Persons.

 

Without
amending the Plan, the Committee may grant Options to eligible  employees who are foreign
nationals on such terms and conditions different from  those specified in this Plan
as may in the judgment of the Committee be  necessary or desirable to foster and promote
achievement of the purposes of the  Plan, and, in furtherance of such purposes,
the Committee may make such  modifications, amendments, procedures, subplans and the like as may be  necessary or advisable to
comply with provisions of laws in other countries in  which the Company or its Affiliates operates
or has employees.

 

14.                                 Effective Date
and Termination Date.

 

The
Plan will be effective on July 31, 2002 and will terminate on
July 31, 2012, subject to earlier termination pursuant to Paragraph 10.

 

APPENDIX A

PROVISIONS FOR CALIFORNIA RESIDENTS

 

The
following sections shall supplement the sections set forth in the  Plan, in the event of a
conflict and shall supercede the applicable provision:

 

15.                                 Miscellaneous.

 

(a)                                  Compliance with
Securities Laws; Listing and Registration. This  Plan is intended to comply with
Section 25102(o) of the California Corporations  Code. Any provision of this Plan which is
inconsistent with Section 25102(o),  including without limitation any provision of
this Plan that is morerestrictive than would be permitted by Section 25102(o) as amended
from time to  time, shall,
without further act or amendment by the Board or the Committee, be  reformed to comply with the
requirements of Section 25102(o). If at any time  the by the Board or the
Committee determines that the delivery of Shares under  the Plan is or may be
unlawful under the laws of any applicable jurisdiction,  or federal or state securities
laws, the right to exercise an Option or receive  shares of Shares pursuant to an Option shall
be suspended until the Board or  the Committee determines that such delivery is
lawful. The Company shall have  no obligation to effect any registration or
qualification of the Shares under  federal or state laws.

 

7

 

The
Company may require that an Optionee, as a condition to exercise of  an Option, and as a condition
to the delivery of any share certificate, make  such written representations (including
representations to the effect that such  person will not dispose of the Shares so
acquired in violation of federal or  state securities laws) and furnish such
information as may, in the opinion of  counsel for the Company, be appropriate to
permit the Company to issue the  Shares in compliance with applicable federal
and state securities laws. The  certificates for any Shares issued pursuant to
this Plan may bear a legend  restricting transferability of the Shares unless such Shares are
registered or  an exemption
from registration is available under the Securities Act of 1933  and applicable state
securities laws.

 

(b)                                 Financial
Statements. The Company will provide financial  statements to each Option recipient annually
during the period such individual  has Options outstanding, or as otherwise
required under Section 260.140.46 of  Title10 of the California Code of Regulations.
Notwithstanding the foregoing,  the Company will not be required to provide
such financial statements to Option  recipients when issuance is limited to key
employees whose services in  connection with the Company assure them access to equivalent
information.

 

(c)                                  Voting Rights.
The Company will comply with Section 260.140.1 of  Title 10 of the California
Code of Regulations with respect to the voting  rights of Stock.

 

(d)                                 Company’s
Repurchase Option. At the discretion of the Board or  the Committee, the Company may reserve to
itself and/or its assignee(s) in the  Option Agreement a right to repurchase shares
held by an Optionee for a period  of ninety (90) days following the later of (i)
181 days after such Optionee  exercises such Option or (ii) such Optionee’s termination from the
Company for  cash and/or
cancellation of purchase money indebtedness, at: (A) with respect  to vested shares, the Fair
Market Value of such Shares on the Optionee’s  termination date, provided, that such right to
repurchase vested sharesterminates following an Initial Public Offering; or (B) with respect to  unvested shares, the Optionee’s
exercise price, provided, that to the extent  the Optionee is not an officer, director or
consultant of the Company or of a  Parent or Subsidiary to the Company, such
right to repurchase unvested shares  at the exercise price lapses at the rate of at
least twenty percent (20%) per  year over five (5) years from the date of
grant of the option.

 

(e)                                  Number of
Shares. At no time shall the total number of Shares  issuable upon exercise of all outstanding
options and the total number of  Shares provided for under any stock bonus or
similar plan of the Company exceed  the applicable percentage calculated in
accordance with 260.140.45 of Title 10  of the California Code of Regulations.

 

(f)                                    Exercise Price.
The Exercise Price of a Non-Statutory Option  shall not be less than 85% of the Fair Market
Value of a Share on the date of  grant. Subject to the preceding sentence, the
Exercise Price under any Option  shall be determined by the Committee in its
sole discretion. If a Non-Statutory  Stock Option is granted to a Participant who,
at the time the Option is  granted, is deemed to own more than 10% of the total combined voting
power of  all classes of
shares of the Company or any “subsidiary corporation” of the  Company (as more fully
described in Code Section 422(b)(6)), then the Exercise  Price of the Option may not
be less than 110% of the Fair Market Value of the  Shares on the date the Option is granted.

 

QuickLinks

 

WH
HOLDINGS (CAYMAN ISLANDS) LTD. STOCK INCENTIVE PLAN (as restated on November 5,
2003)

 

8

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