Document:

Exhibit 10.24

Exhibit 10.24

HERBALIFE LTD.

2005 STOCK INCENTIVE PLAN

STOCK UNIT AWARD AGREEMENT

     This Stock Unit Award Agreement (this “Agreement”) is dated as of this ___ day of
____________, 2006 (the “Grant Date”), and is between Herbalife Ltd. (the “Company”)
and __________________ (“Participant”).

     WHEREAS, the Company, by action of the Board and approval of its shareholders established the
Herbalife Ltd. 2005 Stock Incentive Plan (the “Plan”);

     WHEREAS, Participant is employed by the Company or one or more of its Subsidiaries and the
Company desires to encourage Participant to own Common Shares for the purposes stated in Section 1
of the Plan;

     WHEREAS, Participant and the Company have entered into this Agreement to govern the terms of
the Stock Unit Award (as defined below) granted to Participant by the Company.

     NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows:

1. Grant.

     (a) The Company hereby grants to Participant an Award of __________________ Stock Units (the
“Award”) in accordance with Section 9 of the Plan and subject to the conditions set forth
in this Agreement and the Plan (as amended from time to time). Each Stock Unit represents the
right to receive one Common Share (as adjusted from time to time pursuant to Section 12 of the
Plan) subject to the fulfillment of the vesting and other conditions set forth in this Agreement.
By accepting the Award, Participant irrevocably agrees on behalf of Participant and Participant’s
successors and permitted assigns to all of the terms and conditions of the Award as set forth in or
pursuant to this Agreement and the Plan (as such Plan may be amended from time to time).

     (b) Except as otherwise defined herein, capitalized terms used herein shall have the meanings
set forth in the Plan.

2. Vesting.

     (a) Participant’s Stock Units and rights in and to the Common Shares subject to the Stock
Units shall not be vested as of the Grant Date and shall be forfeitable unless and until otherwise
vested pursuant to the terms of this Agreement. Subject to Participant’s continued employment with
the Company and/or its subsidiaries or affiliates the Award (or as otherwise provided in Paragraph
5) shall become vested in accordance with the following schedule: (i) one-third of the Stock Units
subject to the Award shall vest on the date that is thirteen (13) months following the Grant Date,
(ii) one-third of the Stock Units subject to the Award shall vest on the second anniversary of the
Grant Date, and (iii) the remaining one-third of the Stock Units

 

 

     subject to the Award shall vest on third anniversary of the Grant Date (each such date a
“Vesting Date”). Stock Units that have vested and are no longer subject to forfeiture are
referred to herein as “Vested Units.” Stock Units that are not vested and remain subject
to forfeiture are referred to herein as “Unvested Units.”

     (b) In the event of a Change of Control, the Committee as constituted immediately before such
Change of Control may, in its sole discretion, accelerate the vesting and exercisability of this
Award upon such Change of Control or take such other actions as provided in Section 13 of the Plan.

3. Settlement of Restricted Stock Units.

     (a) Subject to any deferral pursuant to Paragraph 3(b), each Vested Unit will be
settled by the delivery of one Common Share (subject to adjustment under Section 12 of the
Plan) to Participant or, in the event of Participant’s death, to Participant’s estate, heir
or beneficiary, following the applicable Vesting Date; provided that the Participant has
satisfied all of the tax withholding obligations described in Paragraph 7, and that
Participant has completed, signed and returned any documents and taken any additional
action that the Company deems appropriate to enable it to accomplish the delivery of the
Common Shares.

     (b) Subject to the satisfaction all of the tax withholding obligations described in
Paragraph 7, Participant may elect to defer the receipt of any Common Shares issuable
pursuant to Vested Units by submitting to the Company an election to defer receipt in the
forms attached hereto as Exhibit A. In the event Participant intends to defer the receipt
of any Common Shares, Participant must submit to the Company a deferral election form
within thirty (30) days following the Grant Date. Participant hereby represents that
Participant understands the effect of any such deferral under relevant federal, state and
local tax laws.

     (c) The date upon which Common Shares are to be issued under either Paragraph 3(a) or
3(b) above is referred to as the “Settlement Date.” The issuance of the Common
Shares hereunder may be effected by the issuance of a stock certificate, recording shares
on the stock records of the Company or by crediting shares in an account established on
Participant’s behalf with a brokerage firm or other custodian, in each case as determined
by the Company. Fractional shares will not be issued pursuant to the Award.

     (d) Notwithstanding the above, (i) for administrative or other reasons, the Company may from
time to time temporarily suspend the issuance of Common Shares in respect of Vested Units, (ii) the
Company shall not be obligated to deliver any shares of the Common Stock during any period when the
Company determines that the delivery of shares hereunder would violate any federal, state or other
applicable laws, (iii) the Company may issue Common Shares hereunder subject to any restrictive
legends that, as determined by the Company’s counsel, are necessary to comply with securities or
other regulatory requirements and (iv) the date on which shares are issued hereunder may include a
delay in order to provide the Company such time as it determines appropriate to address tax
withholding and other administrative matters.

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4. Shareholder Rights. Prior to any issuance of Common Shares in settlement of the Award,
no Common Shares will be reserved or earmarked for Participant or Participant’s account nor shall
Participant have any of the rights of a stockholder with respect to such Common Shares. Except as
set forth in Paragraph 5, the Participant will not be entitled to any privileges of ownership of
the Common Shares (including, without limitation, any voting rights) underlying Vested Units and/or
Unvested Units unless and until Common Shares are actually delivered to Participant hereunder.

5. Dividend Equivalent Rights. From and after the Grant Date and unless and until the
Award is forfeited or otherwise transferred back to the Company, Participant will be credited with
additional Stock Units having a value equal to dividends declared by the Company, if any, with
record dates that occur prior to the settlement of the Award as if the Common Shares underlying the
Award had been issued and outstanding, based on the Fair Market Value of a Common Share on the
applicable dividend payment date. Any such additional Stock Units shall be considered part of the
Award and shall also be credited with additional Stock Units as dividends, if any, are declared,
and shall be subject to the same restrictions and conditions as the Stock Units subject to the
Award with respect to which they were credited (including, but not limited to, the forfeiture
provisions set forth in Paragraph 6). Notwithstanding the foregoing, no such additional Stock
Units will be credited with respect to any dividend declared by the Company in connection with
which the Award is adjusted pursuant to Section 12 of the Plan.

6. Effect of Termination of Employment. Except as provided in the Plan, upon a termination
of Participant’s employment with the Company for any reason, the Unvested Units shall be forfeited
by Participant and cancelled and surrendered to the Company without payment of any consideration to
Participant.

7. Withholding Taxes.

     (a) Participant is liable and responsible for all taxes owed in connection with the Award,
regardless of any action the Company takes with respect to any tax withholding obligations that
arise in connection with the Award. The Company does not make any representation or undertaking
regarding the treatment of any tax withholding in connection with the grant, vesting or settlement
of the Award or the subsequent sale of Common Shares issuable pursuant to the Award. The Company
does not commit and is under no obligation to structure the Award to reduce or eliminate
Participant’s tax liability.

     (b) Prior to any event in connection with the Award (e.g., vesting or payment in respect of
the Award) that the Company determines may result in any domestic or foreign tax withholding
obligation, whether national, federal, state or local, including any social tax obligation (the
“Tax Withholding Obligation”), Participant is required to arrange for the satisfaction of
the amount of such Tax Withholding Obligation in a manner acceptable to the Company.

     (c) Unless the Committee provides otherwise, at any time not less than five (5) business days
before any Tax Withholding Obligation arises (e.g., a Settlement Date), Participant shall notify
the Company of Participant’s election to pay Participant’s Tax Withholding Obligation by wire
transfer, cashier’s check or other means permitted by the Company. In such

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case, Participant shall satisfy his or her tax withholding obligation by paying to the Company
on such date as it shall specify an amount that the Company determines is sufficient to satisfy the
expected Tax Withholding Obligation by (i) wire transfer to such account as the Company may direct,
(ii) delivery of a cashier’s check payable to the Company, Attn: General Counsel, at the Company’s
principal executive offices, or such other address as the Company may from time to time direct, or
(iii) such other means as the Company may establish or permit (including by means of a “same day
sale” program developed under Regulation T as promulgated by the Federal Reserve Board to the
extent permitted by the Company and applicable law). Participant agrees and acknowledges that
prior to the date the Tax Withholding Obligation arises, the Company will be required to estimate
the amount of the Tax Withholding Obligation and accordingly may require the amount paid to the
Company under this Paragraph 7(c) to be more than the minimum amount that may actually be due and
that, if Participant has not delivered payment of a sufficient amount to the Company to satisfy the
Tax Withholding Obligation (regardless of whether as a result of the Company underestimating the
required payment or Participant failing to timely make the required payment), the additional Tax
Withholding Obligation amounts shall be satisfied such other means as the Committee deems
appropriate.

8. Securities Law Compliance. Participant understands that the Company is under no
obligation to register for resale the Common Shares issued upon exercise of the Award. The Company
may impose such restrictions, conditions or limitations as it determines appropriate as to the
timing and manner of any resales by Participant or other subsequent transfers by Participant of any
Common Shares issued as a result of or under this Award, including without limitation (i)
restrictions under an insider trading policy, (ii) restrictions that may be necessary in the
absence of an effective registration statement under the Securities Act of 1933, as amended,
covering the Award and/or the Common Shares underlying the Award and (iii) restrictions as to the
use of a specified brokerage firm or other agent for such resales or other transfers. Any sale of
the Common Shares must also comply with other applicable laws and regulations governing the sale of
such shares.

9. Assignment or Transfer Prohibited. The Award (whether or not vested) may not be
assigned or transferred otherwise than by will or by the laws of descent and distribution;
provided, however, Participant may assign or transfer the Award to the extent permitted under the
Plan, provided that the Award shall be subject to all the terms and condition of the Plan, this
Agreement and any other terms required by the Committee as a condition to such transfer. Neither
the Award nor any right hereunder shall be subject to attachment, execution or other similar
process. In the event of any attempt by Participant to alienate, assign, pledge, hypothecate or
otherwise dispose of the Award or any right hereunder, except as provided for herein, or in the
event of the levy or any attachment, execution or similar process upon the rights or interests
hereby conferred, the Company may terminate the Award by notice to Participant, and the Award shall
thereupon become null and void.

10. Committee Authority. Any question concerning the interpretation of this Agreement or
the Plan, any adjustments required to be made under this Agreement or the Plan, and any controversy
that may arise under this Agreement or the Plan shall be determined by the Committee in its sole
and absolute discretion. All decisions by the Committee shall be final and binding.

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11. Application of the Plan. The terms of this Agreement are governed by the terms of the
Plan, as it exists on the date of hereof and as the Plan is amended from time to time. In the
event of any conflict between the provisions of this Agreement and the provisions of the Plan, the
terms of the Plan shall control, except as expressly stated otherwise herein. As used herein, the
term “Section” generally refers to provisions within the Plan, and the term “Paragraph” refers to
provisions of this Agreement.

12. No Right to Continued Employment. Nothing in the Plan, in this Agreement or any other
instrument executed pursuant thereto or hereto shall confer upon Participant any right to continued
employment with the Company or any of its Subsidiaries or affiliates.

13. Further Assurances. Each party hereto shall cooperate with each other party,
shall do and perform or cause to be done and performed all further acts and things, and
shall execute and deliver all other agreements, certificates, instruments, and documents as
any other party hereto reasonably may request in order to carry out the intent and
accomplish the purposes of this Agreement and the Plan.

14. Entire Agreement. This Agreement and the Plan together set forth the entire
agreement and understanding between the parties as to the subject matter hereof and
supersede all prior oral and written and all contemporaneous or subsequent oral
discussions, agreements and understandings of any kind or nature.

15. Successors and Assigns. The provisions of this Agreement will inure to the benefit of,
and be binding on, the Company and its successors and assigns and Participant and Participant’s
legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law,
whether or not any such person will have become a party to this Agreement and agreed in writing to
join herein and be bound by the terms and conditions hereof.

[signature page follows]

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

	 	 	 	 	 	 
	 

	 	HERBALIFE LTD.
 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	[Participant]

	 	 	 	Name:
	 

	 	 	 	Title:

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HERBALIFE LTD.

2005 STOCK INCENTIVE PLAN

STOCK UNIT AWARD AGREEMENT

DEFERRAL ELECTION FORM

     Effective as of __________________, the undersigned hereby irrevocably elects (the
“Election”) to defer receipt of certain common shares (the “Common Shares”) of
Herbalife Ltd. (the “Company”) related to the Stock Units (the “Award”) awarded
under and pursuant to the Stock Unit Award Agreement dated __________________ (the “Award
Agreement”) and the Herbalife Ltd. 2005 Stock Incentive Plan, as amended from time to time (the
“Plan”). This deferral shall be made in accordance with the terms and provisions outlined
in this Election in the manner and amount set forth below.

     In making this election, the following rules apply:

	 	•	 	You may elect to defer the settlement of all or a portion of your Award. Your deferral
must be expressed as a percentage of the Stock Units subject to the Award, and will apply
with respect to that percentage of the Stock Units that vest on each Vesting Date (other
than any Vesting Date that occurs prior to the date that is 12 months following the date on
which this Election is received by the Company).
	 
	 	•	 	If you elect to defer the settlement of all or a portion of your Award, you will receive
the Common Shares subject to your Vested Units (as such term is defined in the Award
Agreement) upon the first to occur of (a) a date specified in this Election or (b) a
termination of your employment with the Company for any reason.

Manner of Transfer

In general, all deferrals pursuant to this election will be paid out in Common Shares. Subject to
the terms and conditions of the Award Agreement and the Plan and additional delays described in
Paragraph 4 below under Terms and Conditions, all of the Common Shares you are entitled to receive
on the Settlement Date specified in this Election will be transferred to you on the applicable
Settlement Date.

Amount of the Deferral

I hereby irrevocably elect to defer settlement of ______% of the Stock Units subject to the
Award.

 

 

Duration of the Deferral

     Settlement of that portion of the Award specified above shall be deferred until [by checking the
appropriate box below and, if applicable, filling in the distribution date]:

_______________, 20___ [Note: this date must be after the final vesting date of the Award], but
in no event later than a termination of my employment with the Company; or

termination of my employment with the Company.

Change in Control

	___	 	 	I hereby acknowledge that unless I elect hereunder not to receive
payment in respect of that portion of the Award deferred hereunder upon
a Section 409A Change in Control Event (as defined herein), I will
automatically receive payment in respect of that portion of the Award
deferred hereunder upon the consummation of either (i) a “change in the
ownership” of the Company, (ii) a “change in the effective control” of
the Company or (iii) a “change in the ownership of a substantial portion
of the assets” of the Company (each as defined under Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), and collectively
referred to herein as a “Section 409A Change in Control Event”).
	 
	 	 	 	[You must indicate your election not to receive payment upon a Section
409A Change in Control Event by checking the box and initialing to the
left]

Terms and Conditions

By signing this form, you acknowledge your understanding and acceptance of the following:

	 	1.	 	Submission of Election to the Company. You understand that the Election must be
submitted to the Company within 30 days following the date the Award was granted.
	 
	 	2.	 	Tax Withholding Obligation. No Common Shares will be issued to you unless on
the Settlement Date unless the Tax Withholding Obligation set forth in Paragraph 9 of
the Agreement is satisfied.
	 
	 	3.	 	Cash Dividends. You will be credited with additional Stock Units (the
settlement of which shall be deferred hereunder) having a value equal to any cash
dividends declared by the Company with record dates that occur prior to the settlement
of the Award as if the Common Shares underlying that portion of the Award that is
deferred hereunder had been issued and outstanding, based on the fair market value of a
Common Share on the applicable dividend payment date. Any such additional Stock Units
shall be considered part of the Award and shall also be credited with additional Stock
Units as dividends, if any, are declared, and shall be subject to all of the terms and
conditions set forth herein.
	 
	 	4.	 	Automatic Delay for Specified Employees. If the Company determines that as of
the Settlement Date you are a “specified employee” (as such term is defined under

 

 

	 	 	 	Section 409A of the Code, any Common Shares to be issued to you on a Settlement Date
that occurs by reason of your termination of employment with the Company other by reason
of your death or “disability (as such term is defined under Section 409A of the Code)
will not be issued to you until the date that is six months following the Settlement
Date (or such earlier time permitted under Section 409A of the Code without the
imposition of any accelerated or additional taxes under Section 409A of the Code).
	 
	 	5.	 	ERISA Status. This Election comprises a portion of a plan is intended to be an
unfunded plan that is maintained primarily to provide deferred compensation to a select
group of “management or highly compensated employees” within the meaning of Sections
201, 301, and 401 of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and therefore to be exempt from the provisions of Parts 2, 3, and 4
of Title I of ERISA.
	 
	 	6.	 	Administration. This Election is administered and interpreted by the Committee
(as such term is defined in the Plan). The Committee has full and exclusive discretion
to interpret and administer this Election. All actions, interpretations and decisions
of the Committee are conclusive and binding on all persons, and will be given the
maximum possible deference allowed by law.
	 
	 	7.	 	Claims Procedure. Any person who believes he or she is entitled to any payment
under this Election may submit a claim in writing to the Company. If the claim is
denied (either in full or in part), the claimant will be provided a written notice
explaining the specific reasons for the denial and referring to the provisions of the
Agreement or the Plan on which the denial is based. The notice will describe any
additional information needed to support the claim. The denial notice will be provided
within ninety (90) days after the claim is received. If special circumstances require
an extension of time (up to 90 days), written notice of the extension will be given
within the initial ninety-day period.
	 
	 	8.	 	Appeals Procedure. If a claimant’s claim is denied, the claimant (or his or her
authorized representative) may apply in writing to the Company for a review of the
decision denying the claim. The claimant (or representative) then has the right to
review pertinent documents and to submit issues and comments in writing. The Company
will provide written notice of its decision on review within sixty (60) days after it
receives a review request. If additional time (up to sixty (60) days) is needed to
review the request, the claimant will be given written notice of the reason for the
delay. Any claims for benefits under this Election brought in a court of law must be
filed in such court before the earlier of ninety (90) days after any appeal pursuant to
this Paragraph 8 or one (1) year from the date the claim arose.

 

 

	 	 	 	 	 	 
	Submitted by:

	 	Accepted by:
	 
	 	 	 	 
	 

	 	HERBALIFE LTD.
 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	[Participant]

	 	 	 	Name:
	 

	 	 	 	Title:Exhibit 10.25

Exhibit 10.25

HERBALIFE LTD.

2005 STOCK INCENTIVE PLAN

STOCK APPRECIATION RIGHT AWARD AGREEMENT

     STOCK APPRECIATION RIGHT AGREEMENT (this “Agreement”) dated as of ____________, 2006
(the “Grant Date”) between HERBALIFE LTD. (the “Company”), and
_____________________ (“Participant”).

     WHEREAS, pursuant to the Herbalife Ltd. 2005 Stock Incentive Plan (the “Plan”), the
Committee designated under the Plan (or an officer of the Company to who the authority to grant
Awards has been delegated), desires to grant to Participant an award of stock appreciation rights;
and

     WHEREAS, Participant desires to accept such award 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 Participant, intending to be legally bound, hereby agree as
follows:

1. Grant.

     (a) The Company hereby grants to the Participant an Award of _______________ Stock Appreciation
Rights (the “Award”) in accordance with Section 8 of the Plan and subject to the terms and
conditions set forth herein and in the Plan (each as amended from time to time). Each Stock
Appreciation Right represents the right to receive, upon exercise of the Stock Appreciation Right
pursuant to this Agreement, from the Company, a payment, paid in Common Shares, par value $.002 per
share, of the Company (the “Common Shares”), equal to (i) the excess of the Fair Market
Value, on the date of exercise, of one Common Share (as adjusted from time to time pursuant to
Section 12 of the Plan) over the Base Price (as defined below) of the Stock Appreciation Right,
divided by (ii) the Fair Market Value, on the date of exercise, of one Common Share, subject to
terms and conditions set forth herein and in the Plan (each as amended from time to time).

     (b) The “Base Price” for the Stock Appreciation Right shall be $_______ per share
(subject to adjustment as set forth in Section 12 of the Plan).

     (c) Except as otherwise defined herein, capitalized terms used herein shall have the meanings
set forth in the Plan.

2. Time for Exercise.

     (a) The Award will become vested and exercisable in quarterly 5% increments beginning on the
last day of the calendar quarter during which the Grant Date occurs and on the last day of each
subsequent calendar quarter until the Award becomes fully exercisable on the last day of the
calendar quarter immediately preceding the fifth anniversary of the Grant Date.

 

 

     (b) In the event of a Change of Control, the Committee as constituted immediately before such
Change of Control may, in its sole discretion, accelerate the vesting and exercisability of this
Award upon such Change of Control or take such other actions as provided in Section 13 of the Plan.

3. Expiration. The Award shall expire on the tenth (10th) anniversary of the date hereof;
provided, however, that the Award may earlier terminate as provided in this Paragraph 3 and/or in
Section 13 of the Plan.

     (a) Upon termination of Participant’s employment with the Company for any reason, that portion
of the Award that is not vested and exercisable (after giving effect to any acceleration of vesting
pursuant to this Agreement or otherwise) will terminate on the date of such termination of
employment.

     (b) Upon termination of Participant’s employment with the Company, that portion of the Award
that is vested and exercisable, will terminate in accordance with the following:

     (i) if Participant’s employment with the Company is terminated for Cause, the vested
and exercisable portion of the Award will terminate on the date of such termination;

     (ii) if Participant’s employment with the Company is terminated by reason of
Participant’s death or disability (as such term is defined in Section 22(e) of the Code),
the vested and exercisable portion of the Award will terminate on the date that is ninety
(90) days immediately following the date of such termination;

     (iii) if Participant’s employment with the Company is terminated for any reason other
than death, disability or Cause, the vested and exercisable portion of the Award will
terminate on the date that is thirty (30) days immediately following the date of such
termination.

     (c) Notwithstanding anything herein to the contrary, if Participant’s employment with the
Company is terminated for any reason other than a termination by the Company for Cause, and at any
time during the thirty-day period following the effective date of such termination of employment
Participant is subject to a “trading blackout” or “quiet period” with respect to the Common Shares
or if the Company determines, upon the advice of legal counsel, that Participant may not to trade
in the Common Shares due to Participant’s possession of material non-public information, the
Company shall extend the period during which Participant may exercise his then remaining vested
portion of this Award until the later of (i) the expiration date of the Award determined pursuant
to Paragraph 2(b) and (ii) the date that is thirty days following the first date on which
Participant is no longer subject to such restrictions on trading with respect to the Common Shares.

     (d) For purposes of this Agreement, the term “Cause” shall have the meaning ascribed
to such term in any written employment agreement between Participant and the Company or one or more
of its Subsidiaries, as the same may be amended or modified from time

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to time, or if Participant is not party to any such written employment agreement, then the
term “Cause” shall mean the occurrence of any of the following acts or circumstances: (i)
conviction of a felony, a crime of moral turpitude, dishonesty, breach of trust or unethical
business conduct, or any crime involving the Company or any of its Subsidiaries; (ii) willful
misconduct, willful or gross neglect, fraud, misappropriation or embezzlement; (iii) performance of
Participant’s duties in a manner that is detrimental to the Company or any of its Subsidiaries,
including, but not limited to that which results in, the severe deterioration of the financial
performance of the Company or any of its Subsidiaries; (iv) failure to adhere to the
reasonable/lawful directions of the Chief Executive Officer of the Company or the Board, to adhere
to the Company’s or any Subsidiary’s policies or practices or to devote substantially all of
Participant’s business time and efforts to the business of the Company; (v) breach of any provision
of any agreement, including an employment agreement, between Participant and the Company or any of
its Subsidiaries, which covers confidentiality or proprietary information or contains
nonsolicitation or non-competition provisions; or (vi) breach in any material respect of the terms
and provisions of Participant’s employment agreement, if any, or any agreement between Participant
and the Company or any of its Subsidiaries.

4. Method of Exercise. The Award may be exercised by delivery to the Company (attention:
Secretary) of a notice of exercise in the form specified by the Company specifying the number of
shares with respect to which the Award is being exercised.

5. Fractional Shares. No fractional shares may be purchased upon any exercise.

6. Compliance With Legal Requirements.

     (a) The Award shall not be exercisable and no Common Shares shall be issued or transferred
pursuant to this Agreement or the Plan unless and until the Tax Withholding Obligation (as defined
below), and all legal requirements applicable to such issuance or transfer have, in the opinion of
counsel to the Company, been satisfied. Such legal requirements may include, but are not limited
to, (i) registering or qualifying such Common Shares under any state or federal law or under the
rules of any stock exchange or trading system, (ii) satisfying any applicable law or rule relating
to the transfer of unregistered securities or demonstrating the availability of an exemption from
applicable laws, (iii) placing a restricted legend on the Common Shares issued pursuant to the
exercise of the Award, or (iv) obtaining the consent or approval of any governmental regulatory
body.

     (b) Participant understands that the Company is under no obligation to register for resale the
Common Shares issued upon exercise of the Award. The Company may impose such restrictions,
conditions or limitations as it determines appropriate as to the timing and manner of any exercise
of the Award and/or any resales by Participant or other subsequent transfers by Participant of any
Common Shares issued as a result of the exercise of the Award, including without limitation (i)
restrictions under an insider trading policy, (ii) restrictions that may be necessary in the
absence of an effective registration statement under the Securities Act of 1933, as amended,
covering the Award and/or the Common Shares underlying the Award and (iii) restrictions as to the
use of a specified brokerage firm or other agent for exercising the

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Award and/or for such resales or other transfers. The sale of the shares underlying the Award
must also comply with other applicable laws and regulations governing the sale of such shares.

7. Shareholder Rights. Participant shall not be deemed a shareholder of the Company with
respect to any of the Common Shares subject to the Award, except to the extent that such shares
shall have been purchased and transferred to Participant.

8. Withholding Taxes.

     (a) Participant is liable and responsible for all taxes owed in connection with the Award,
regardless of any action the Company takes with respect to any tax withholding obligations that
arise in connection with the Award. The Company does not make any representation or undertaking
regarding the treatment of any tax withholding in connection with the grant, vesting or settlement
of the Award or the subsequent sale of Common Shares issuable pursuant to the Award. The Company
does not commit and is under no obligation to structure the Award to reduce or eliminate
Participant’s tax liability.

     (b) Prior to any event in connection with the Award (e.g., vesting or payment in respect of
the Award) that the Company determines may result in any domestic or foreign tax withholding
obligation, whether national, federal, state or local, including any social tax obligation (the
“Tax Withholding Obligation”), Participant is required to arrange for the satisfaction of
the amount of such Tax Withholding Obligation in a manner acceptable to the Company.

     (c) Unless the Committee provides otherwise, at any time not less than five (5) business days
before any Tax Withholding Obligation arises (e.g., at the time the Award is exercised, in whole or
in part), Participant shall notify the Company of Participant’s election to pay Participant’s Tax
Withholding Obligation by wire transfer, cashier’s check or other means permitted by the Company.
In such case, Participant shall satisfy his or her tax withholding obligation by paying to the
Company on such date as it shall specify an amount that the Company determines is sufficient to
satisfy the expected Tax Withholding Obligation by (i) wire transfer to such account as the Company
may direct, (ii) delivery of a cashier’s check payable to the Company, Attn: General Counsel, at
the Company’s principal executive offices, or such other address as the Company may from time to
time direct, or (iii) such other means as the Company may establish or permit (including by means
of a “same day sale” program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company and applicable law). Participant agrees and
acknowledges that prior to the date the Tax Withholding Obligation arises, the Company will be
required to estimate the amount of the Tax Withholding Obligation and accordingly may require the
amount paid to the Company under this Paragraph 8(c) to be more than the minimum amount that may
actually be due and that, if Participant has not delivered payment of a sufficient amount to the
Company to satisfy the Tax Withholding Obligation (regardless of whether as a result of the Company
underestimating the required payment or Participant failing to timely make the required payment),
the additional Tax Withholding Obligation amounts shall be satisfied such other means as the
Committee deems appropriate.

4

 

9. Assignment or Transfer Prohibited. The Award may not be assigned or transferred
otherwise than by will or by the laws of descent and distribution, and may be exercised during the
life of Participant only by Participant or Participant’s guardian or legal representative. Neither
the Award nor any right hereunder shall be subject to attachment, execution or other similar
process. In the event of any attempt by Participant to alienate, assign, pledge, hypothecate or
otherwise dispose of the Award or any right hereunder, except as provided for herein, or in the
event of the levy or any attachment, execution or similar process upon the rights or interests
hereby conferred, the Company may terminate the Award by notice to Participant, and the Award shall
thereupon become null and void.

10. Committee Authority. Any question concerning the interpretation of this Agreement or
the Plan, any adjustments required to be made under this Agreement or the Plan, and any controversy
that may arise under this Agreement or the Plan shall be determined by the Committee in its sole
and absolute discretion. All decisions by the Committee shall be final and binding.

11. Application of the Plan. The terms of this Agreement are governed by the terms of the
Plan, as it exists on the date of hereof and as the Plan is amended from time to time. In the
event of any conflict between the provisions of this Agreement and the provisions of the Plan, the
terms of the Plan shall control, except as expressly stated otherwise herein. As used herein, the
term “Section” generally refers to provisions within the Plan, and the term “Paragraph” refers to
provisions of this Agreement.

12. No Right to Continued Employment. Nothing in the Plan, in this Agreement or any other
instrument executed pursuant thereto or hereto shall confer upon Participant any right to continued
employment with the Company or any of its subsidiaries or affiliates.

13. Further Assurances. Each party hereto shall cooperate with each other party, shall do
and perform or cause to be done and performed all further acts and things, and shall execute and
deliver all other agreements, certificates, instruments, and documents as any other party hereto
reasonably may request in order to carry out the intent and accomplish the purposes of this
Agreement and the Plan.

14. Entire Agreement. This Agreement and the Plan together set forth the entire agreement
and understanding between the parties as to the subject matter hereof and supersede all prior oral
and written and all contemporaneous or subsequent oral discussions, agreements and understandings
of any kind or nature.

15. Successors and Assigns. The provisions of this Agreement will inure to the benefit of,
and be binding on, the Company and its successors and assigns and Participant and Participant’s
legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law,
whether or not any such person will have become a party to this Agreement and agreed in writing to
join herein and be bound by the terms and conditions hereof.

5

 

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

	 	 	 	 	 	 
	 

	 	HERBALIFE LTD.
 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	[Participant]

	 	 	 	Name:
	 

	 	 	 	Title:

6

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