Document:

exv10w78

Exhibit 10.78

HERBALIFE LTD.

AMENDED AND RESTATED

INDEPENDENT DIRECTORS DEFERRED COMPENSATION AND STOCK UNIT PLAN

AMENDMENT

     Pursuant to Section 9 of the Herbalife Ltd. Amended and Restated Independent Directors
Deferred Compensation and Stock Unit Plan (the “Independent Directors Plan”), the
Independent Directors Plan is hereby amended as follows, effective as
of January 27, 2009:

     1. Section 1 of the Independent Directors Plan is hereby amended by deleting the third
sentence of the first paragraph thereof in its entirety and replacing it with the following:

“Prior to January 1, 2009, the Independent Directors Plan provided for the award of Stock
Units under Section 9 of the Herbalife Ltd. 2005 Stock Incentive Plan (the “Plan”). From
and after January 1, 2009, the Independent Directors Plan provides for the award of Stock
Appreciation Rights under Section 8 of the Plan.”

     2. Section 1 of the Independent Directors Plan is hereby amended by deleting the second
paragraph thereof in its entirety and replacing it with the following:

     “The purpose of the Plan is to facilitate equity ownership in the Company by its
Independent Directors through the award of equity-based compensation awards under the Plan.
“

     3. Section 2(c) of the Independent Directors Plan is hereby deleted in its entirety and
replaced with the following:

     “(c) ‘Grant Date’ means a date on which Stock Units or Stock Appreciation
Rights are granted pursuant this Independent Directors Plan.”

     4. Section 4 of the Independent Directors Plan is hereby deleted in its entirety and replaced
with the following:

     “4. Eligibility and Participation.

     All Independent Directors shall be eligible to participate in this Independent
Directors Plan and receive awards of Stock Units or Stock Appreciation Rights, as
applicable, hereunder from time to time.”

     5. Section 5 of the Independent Directors Plan is hereby amended to add the following new
subsection (g) to the end thereof:

     “(g) Notwithstanding anything herein to the contrary, no Stock Units shall be awarded
under this Independent Directors Plan on or after January 1, 2009.”

 

 

     6. The Independent Directors Plan is hereby amended to add the following new Section 5A
immediately following the existing Section 5 thereof:

     “5A. Stock Appreciation Right Awards.

     (a)
2009 Plan Year Grant. On February 27, 2009, the Committee shall grant to each
Independent Director, pursuant to Section 8 of the Plan, a number of Stock Appreciation
Rights equal to the quotient of One Hundred Thousand Dollars ($100,000) divided by the “fair
value” (as determined by the Company in accordance with Financial Accounting Standards
Board’s Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based
Payment or such revised standard as then applicable (“FAS 123R”)) of one Stock
Appreciation Right on such date, rounded to the nearest whole number.

     (b) Grants Upon Initial Election to Board. Unless otherwise determined by the
Committee, with respect to each Independent Director who commences service on the Board
after February 27, 2009, upon such Independent Director’s commencement of service as a
member of the Board the Committee shall grant to such Independent Director, pursuant to
Section 8 of the Plan, a number of Stock Appreciation Rights equal to (i) the quotient of
One Hundred Thousand Dollars ($100,000) divided by the “fair value” (as determined by the
Company in accordance with FAS 123R) of one Stock Appreciation Right on such date, rounded
to the nearest whole number, multiplied by (ii) a fraction, the numerator of which equals
(A) 365 minus (B) the number of days during the year that
have elapsed from February 27 through such date and the
denominator of which equals 365.

     (c) Annual Grants. Unless otherwise determined by the Committee, on February 27 of each
twelve month period beginning with and after February 27, 2009 (or the business day, if different, whereupon annual
equity awards are made to Company employees), the Committee shall grant, pursuant to Section 8
of the Plan, to each Independent Director who is serving as a member
of the Board as of such date, a number of Stock Appreciation Rights equal to the quotient of One Hundred
Thousand Dollars ($100,000) divided by the “fair value” (as determined by the Company in
accordance with FAS 123R) of one Stock Appreciation Right on such date, rounded to the
nearest whole number.

     (d) Base Price. The Base Price for each award of Stock Appreciation Rights shall be
the closing price of the Common Shares on the date of grant.

     (e) Award Agreement. Each award of Stock Appreciation Rights shall be evidenced by an
award agreement entered into between the Company and the applicable Independent Director and
shall be subject to all of the terms and conditions set forth herein and in the Plan.

     (f) Terms and Conditions of Stock Appreciation Rights. Stock Appreciation Right awards
made pursuant to this Section 5A shall be subject to the following terms and conditions:

          (i) Each Stock Appreciation Right shall represent the right to receive, upon exercise
of the Stock Appreciation Right, a payment, paid in Common Shares, equal

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to (i) the excess of the Fair Market Value, on the date of exercise, of one Common
Share (as adjusted pursuant to Section 12 of the Plan) over the Base Price of the Stock
Appreciation Right, divided by (ii) the Fair Market Value, on the date of exercise, of one
Common Share.

          (iii) Unless determined otherwise by the Committee at the time of grant and set forth
in an award agreement, subject to the applicable Independent Director’s continuous service
as a member of the Board, awards of Stock Appreciation Rights pursuant to Section 5A(a) or
Section 5A(c) shall become vested with respect to twenty-five percent (25%) of the number of
Stock Appreciation Rights subject to the award on each of
May 27, August 27 and November 27
of the calendar year in which the award is granted and February 27 of the calendar year
following the year in which the award is granted (each such date is referred to herein as a
“Vesting Date”); provided, however, that no Stock Appreciation Right, whether vested
or unvested, may be exercised prior to the date specified in Section 5A(g) of this
Independent Directors Plan.

          (iv) Unless determined otherwise by the Committee at the time of grant and set forth in
an award agreement, subject to the applicable Independent Director’s continuous service as a
member of the Board, awards of Stock Appreciation Rights pursuant to Section 5A(b) shall
become vested in equal installments on each of the Vesting Dates that occur after the Grant
Date and on or prior to the next following February 27th; provided, however, that no Stock
Appreciation Right, whether vested or unvested, may be exercised prior to the date specified
in Section 5A(g) of this Independent Directors Plan.

          (v) In the event that an Independent Director ceases to serve as a member of the Board
for any reason, all Stock Appreciation Rights held by such Independent Director at the time
of such cessation that have not yet become vested shall be immediately forfeited; provided,
however, that in the event of the Independent Director’s disability (as such term if defined
in Section 22(e) of the Code) or death, the Committee may, in its sole discretion,
accelerate the vesting of any unvested Stock Appreciation Rights then held by such
Independent Director.

          (vi) Notwithstanding anything herein to the contrary, in the event of a Change of
Control all unvested Stock Appreciation Rights shall be deemed fully vested and exercisable
immediately prior to the consummation of the Change of Control.

     (g) Exercisability of Stock Appreciation Right Awards.

          (i) Subject to the applicable Independent Director’s continuous service as a member of
the Board, Stock Appreciation Rights granted under this Section 5A that become vested
pursuant to this Section 5A hereof shall be exercisable by the Independent Director on and
after the second anniversary of the final Vesting Date of the award pursuant to this Section
5A and shall remain exercisable until the seventh (7th) anniversary of the Grant
Date.

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          (ii) In the event that an Independent Director ceases to serve as a member of the Board
for any reason prior to the second anniversary of the final Vesting Date of an award of
Stock Appreciation Rights pursuant to this Section 5A, Stock Appreciation Rights previously
granted that vested on or prior to such cessation of service shall be exercisable by the
Independent Director on and after the date of such cessation of service and shall remain
exercisable until the seventh (7th) anniversary of the Grant Date.”

     7. Section 6(a)(i) of the Independent Directors Plan is hereby amended to add the following
sentence to the end thereof:

     “Notwithstanding anything herein to the contrary, no deferrals shall be made pursuant
to this Independent Directors Plan from and after January 1, 2009.”

     8. Section 6(b) of the Independent Directors Plan is hereby amended to add the following new
subsection (ix) to the end thereof:

     “(ix) Section 457A. Notwithstanding anything herein to the contrary, to the
extent necessary for this Independent Directors Plan to comply with Section 457A of the
Code, all amounts deferred pursuant to this Independent Directors Plan and not distributed
in accordance with the terms hereof before December 31, 2017 shall be distributed in lump
sum to the applicable Participant on December 31, 2017.”

     Except as modified by this Amendment, the Independent Directors Plan shall remain unchanged
and shall remain in full force and effect.

4exv10w79

Exhibit 10.79

HERBALIFE LTD.

2005 STOCK INCENTIVE PLAN

INDEPENDENT DIRECTORS STOCK APPRECIATION RIGHT AGREEMENT

     This Independent Directors Stock Appreciation Right Agreement (this “Agreement”) dated
as of February ___, 20___(the “Grant Date”) between Herbalife Ltd., an entity organized under
the laws of the Cayman Islands (the “Company”), and [DIRECTOR] (“Participant”).

     WHEREAS, the Company, by action of the Board established the Herbalife Ltd. Amended and
Restated Independent Directors Deferred Compensation and Stock Appreciation Right Plan (the
“Independent Directors Plan”);

     WHEREAS, the Board has determined that Participant is an independent director of the Company
and the Company desires to encourage Participant to own Common Shares for the purposes stated in
Section 1 of the Plan and the Independent Directors Plan;

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

     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, in the Independent Directors Plan 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 or the Independent Directors Plan, as applicable.

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2. Vesting.

     (a) Participant’s Stock Appreciation Rights 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 service as a member of the Board, the Award shall become vested with
respect to 25% of the Stock Appreciation Rights awarded hereunder on
each of May 27, 200___, August 27,
200___, November 27, 200___and February 27, 200___(each such date a “Vesting Date”).
Stock Appreciation Rights awarded hereunder that have vested and are no longer subject to
forfeiture are referred to herein as “Vested SARs.” Stock Appreciation Rights awarded
hereunder that are not vested and remain subject to forfeiture are referred to herein as
“Unvested SARs.”

     (b) Notwithstanding anything herein or in the Plan to the contrary, upon the cessation of
Participant’s service as a member of the Board by reason of Participant’s of death or disability
(as such term if defined in Section 22(e) of the Code), all Unvested SARs shall vest as of the date
of such termination of employment.

     (c) Notwithstanding anything herein or in the Plan to the contrary, upon the occurrence of a
Change of Control, the Award shall become immediately and fully vested and exercisable as of the
date of the Change of Control.

3. Time for Exercise.

     (a) Except as set forth in Paragraph 2(c) or Section 13 of the Plan, the Award (including both
Vested SARs and Unvested SARs) shall not be exercisable on or before the dates specified in this
Paragraph 3.

     (b) Subject to Participant’s continued service as a member of the Board, all then Vested SARs
shall become exercisable on the second anniversary of the final Vesting Date.

     (c) Notwithstanding anything herein to the contrary, in the event Participant ceases to be a
member of the Board for any reason prior to the date specified in Paragraph 3(b), all then Vested
SARs shall become exercisable on the date of such cessation of service.

4. Expiration. The Award shall expire on the seventh (7th) anniversary of the
Grant Date; provided, however, that the Award may earlier terminate as provided in Section 13 of
the Plan.

5. 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.

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

7. Adjustments of Shares and Awards. Subject to Section 12(a) of the Plan, 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 Common 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 Award and Base Prices related thereto and

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make such other revisions to the Award as it deems are equitably required. Any adjustments made
pursuant to this Paragraph 7 shall be implemented in accordance with Section 409A of the Internal
Revenue Code of 1986, as amended.

8. Compliance With Legal Requirements. 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 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.

9. 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.

10. Taxes. 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.

11. 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;
provided, however, Participant may assign or transfer the Award to the extent permitted under the
Independent Directors Plan, provided that the Award shall be subject to all the terms and condition
of the Independent Directors Plan, 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.

12. 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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13. Application of the Plan. The terms of this Agreement are governed by the terms of the
Independent Directors Plan and the Plan, as both exist on the Grant Date and as amended from time
to time. In the event of any conflict between the provisions of this Agreement and the provisions
of the Independent Directors Plan and/or the Plan, the terms of the Independent Directors Plan or
the Plan (as applicable) shall control, except as expressly stated otherwise in this Agreement.
The term “Section” generally refers to provisions within the Independent Directors Plan or the
Plan; provided, however, the term “Paragraph” shall refer to a provision of this Agreement.

14. General Provisions.

     (a) No Waiver. No waiver of any provision of this Agreement will be valid unless in
writing and signed by the person against whom such waiver is sought to be enforced, nor will
failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of
any other right hereunder.

     (b) Undertaking. Participant hereby agrees to take whatever additional action and
execute whatever additional documents the Company may deem necessary or advisable in order to carry
out or effect one or more of the obligations or restrictions imposed on either Participant or the
Award pursuant to the express provisions of this Agreement.

     (c) Entire Contract. This Agreement, the Independent Directors Plan and the Plan
constitute the entire contract between the parties hereto with regard to the subject matter hereof.
This Agreement is made pursuant to the provisions of the Independent Directors Plan and the Plan
and will in all respects be construed in conformity with the express terms and provisions of the
Independent Directors Plan and the Plan.

     (d) 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.

     (e) 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.

     (f) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to any awards granted under the Plan by electronic means or to request

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Participant’s consent to participate in the Independent Directors Plan and the Plan by
electronic means. Participant hereby consents to receive such documents by electronic delivery and,
if requested, to agree to participate in the Independent Directors Plan and the Plan through an
on-line or electronic system established and maintained by the Company or another third party
designated by the Company, and such consent shall remain in effect throughout Participant’s term of
service with the Company and thereafter until withdrawn in writing by Participant.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	HERBALIFE LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

[DIRECTOR]

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 

5

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