Document:

exv10w4

 

Exhibit 10.4

T-3 ENERGY SERVICES, INC.

RESTRICTED STOCK AWARD AGREEMENT

     THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made and entered into by and between T-3
Energy Services, Inc., a Delaware corporation (the “Company”), and Mr. Gus D. Halas (“Grantee”),
effective as of the grant date shown in Appendix A attached hereto pursuant to the T-3 Energy
Services, Inc. 2002 Incentive Plan (the “Plan”). The Plan is incorporated by reference herein in
its entirety. Capitalized terms not otherwise defined in this Agreement shall have the meaning
given such terms as defined in the Plan.

     WHEREAS, Grantee is an employee of the Company and in connection with such employment, the
Committee on behalf of the Company has authorized a grant to Grantee a number of restricted shares
of the Company’s common stock, par value $.001 per share (the “Common Stock”), effective January
12, 2006, in the amount indicated on Appendix A and which is pursuant to and shall be subject to
the terms and conditions of this Agreement and the Plan, with a view to increasing Grantee’s
interest in the Company’s welfare and growth; and

     WHEREAS, Grantee desires to receive shares of the Common Stock as Restricted Stock pursuant to
this Agreement in connection with his employment.

     NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

     1. Grant of Common Stock. Subject to the restrictions, forfeiture provisions and
other terms and conditions set forth herein (a) the Company hereby grants to Grantee the number of
shares of Common Stock (“Restricted Shares”) as set out in Appendix A hereto, and (b) subject to
the terms hereof, Grantee shall have and may exercise rights and privileges of ownership of such
Restricted Shares, including, without limitation, the voting rights of such shares and the right to
receive dividends declared in respect thereof. This Agreement and the grant of Restricted Shares
are subject to administration by and the rules and procedures established by the Committee under
the Plan.

     2. Transfer Restrictions; Vesting.

     Grantee shall not sell, assign, transfer, exchange, pledge, encumber, gift, devise,
hypothecate or otherwise dispose of (collectively, “Transfer”) any Restricted Shares prior to their
vesting in accordance with the Vesting Dates set out in Appendix A. Further, even after such
Restricted Shares become vested, such vested Restricted Shares may not be sold or otherwise
disposed of in any manner which would constitute a violation of any applicable federal or state
securities laws or other applicable law, rules of any exchange on which the Company’s securities
are traded or listed, or Company rules or policies as determined by Company in its sole discretion.
Restricted Shares shall vest as of each of the Vesting Dates set out in Appendix A provided that
Grantee remains employed with the Company through the Vesting Date, except as may otherwise be
provided herein.

 

 

     3. Vesting
in Certain Circumstances. Notwithstanding the provisions in Section 2, on the
date immediately preceding the date of a change in control (as
defined in Grantee’s employment agreement with the Company (the
“Employment Agreement”)), or (b) upon a termination of
Grantee’s employment by the Company pursuant to Section 8 of the Employment Agreement, the Restricted Shares shall be 100% vested.

     4. Forfeiture.

     (a) Termination
of Service. If Grantee’s employment with the Company is terminated by the
Company for cause (as defined in the Employment Agreement) or upon
Grantee’s voluntary retirement or resignation (but specifically excluding any termination resulting from
Grantee’s death or “Disability” (as
defined in the Plan of the Internal Revenue Code of 1986, as amended)), then Grantee shall
immediately forfeit all Restricted Shares which are unvested unless the Committee, in its sole
discretion, determines that any or all of such unvested Restricted Shares shall not be so
forfeited.

     (b) Forfeited Shares.
Any Restricted Shares forfeited under this Section 4 shall
automatically revert to the Company and become canceled and such shares shall be again subject to
the Plan. Any certificate(s) representing Restricted Shares which include forfeited shares shall
only represent that number of Restricted Shares which have not been forfeited hereunder. Upon the
Company’s request, Grantee agrees for himself and any other holder(s) to tender to the Company any
certificate(s) representing Restricted Shares which include forfeited shares for a new certificate
representing the unforfeited number of Restricted Shares.

     5. Issuance of Certificate.

     (a) The Company shall cause to be issued a stock certificate, registered in the name of the
Grantee, evidencing the Restricted Shares upon receipt of a stock power duly endorsed in blank with
respect to such shares. Each such stock certificate shall bear the following legend:

The transferability of this certificate and the shares of stock
represented hereby are subject to the restrictions, terms and
conditions (including forfeiture and restrictions against transfer)
contained in the restricted stock agreement entered into between the
registered owner of such shares and T-3 Energy Services, Inc.
copies of the restricted stock agreement are on file in the office
of the secretary of T-3 Energy Services, Inc., located at 13111
Northwest Freeway, Suite 500, Houston, TX 77040. 

Such legend shall not be removed from the certificate evidencing Restricted Shares until such time
as the restrictions thereon have lapsed.

     (b) The certificate issued pursuant to this Section 5, together with the stock powers relating
to the Restricted Shares evidenced by such certificate, shall be held by the Company. The Company
may issue to the Grantee a receipt evidencing the certificates held by it which are registered in
the name of the Grantee.

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     6. Miscellaneous.

     (a) Certain Transfers Void. Any purported transfer of Restricted Shares in breach of any
provision of this Agreement shall be void and ineffectual, and shall not operate to transfer any
interest or title in the purported transferee.

     (b) No Fractional Shares. All provisions of this Agreement concern whole shares of Common
Stock. If the application of any provision hereunder would yield a fractional share, the value of
such fractional share shall be paid to the Grantee in cash.

     (c) Not an Agreement for Continued Employment or Services. This Agreement shall not, and no
provision of this Agreement shall be construed or interpreted to, create any right of Grantee to
continue employment with or provide services to the Company, Company affiliates, parent, subsidiary
or their affiliates.

     (d) Notices. Any notice, instruction, authorization, request or demand required hereunder
shall be in writing, and shall be delivered either by personal in-hand delivery, by telecopy or
similar facsimile means, by certified or registered mail, return receipt requested, or by courier
or delivery service, addressed to the Company at the address indicated beneath its signature on the
execution page of this Agreement, and to Grantee at his address indicated herewith, or at such
other address and number as a party shall have previously designated by written notice given to the
other party in the manner herein set forth. Notices shall be deemed given when received, if sent
by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed
receipt of communications sent by facsimile means), and when delivered and receipted for (or upon
the date of attempted delivery where delivery is refused), if hand-delivered, sent by express
courier or delivery service, or sent by certified or registered mail, return receipt requested.

     (e) Amendment and Waiver. This Agreement may be amended, modified or superseded only by
written instrument executed by the Company and Grantee. Any waiver of the terms or conditions
hereof shall be made only by a written instrument executed and delivered by the party waiving
compliance. Any amendment or waiver agreed to by the Company shall be effective only if executed
and delivered by a duly authorized executive officer of the Company. The failure of any party at
any time or times to require performance of any provisions hereof shall in no manner effect the
right to enforce the same. No waiver by any party of any term or condition in this Agreement, or
breach thereof, in one or more instances shall be deemed a continuing waiver of any such condition
or breach, a waiver of any other condition, or the breach of any other term or condition.

     (f) Independent Legal and Tax Advice. The Grantee has been advised and Grantee hereby
acknowledges that he has been advised to obtain independent legal and tax advice regarding this
grant of the Restricted Shares and the disposition of such shares, including, without limitation,
the election available under Section 83(b) of the Internal Revenue Code.

     (g) Governing Law and Severability. This Agreement shall be governed by the internal laws,
and not the laws of conflict, of the State of Delaware. The invalidity of any

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provision of this Agreement shall not affect any other provision of this Agreement which shall
remain in full force and effect.

     (h) Successors and Assigns. Subject to the limitations which this Agreement imposes upon
transferability of Restricted Shares, this Agreement shall bind, be enforceable by and inure to the
benefit of the Company and its successors and assigns, and Grantee, and, upon his death, on his
estate and beneficiaries thereof (whether by will or the laws of descent and distribution).

     (i) Community Property. Each spouse individually is bound by, and such spouse’s interest, if
any, in any shares is subject to, the terms of this Agreement. Nothing in this Agreement shall
create a community property interest where none otherwise exists.

     (j) Compliance with Other Laws and Regulations. This Agreement, the grant of Restricted
Shares and issuance of Common Stock shall be subject to all applicable federal and state laws,
rules, regulations and applicable rules and regulations of any exchanges on which such securities
are traded or listed, and Company rules or policies. Any determination in this connection by the
Committee shall be final, binding and conclusive on the parties hereto and on any third parties,
including any individual or entity.

     (k) Tax Requirements.

     (i) Tax Withholding. This grant under this Agreement is subject to and the Company
shall have the power and the right to deduct or withhold, or require the Grantee to remit to
the Company, an amount sufficient to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any taxable event
arising as a result of the Plan and this Agreement.

     (ii) Share Withholding. With respect to tax withholding required upon any taxable
event arising as a result of this Agreement, Grantee may elect, subject to the approval of
the Committee in its discretion, to satisfy the withholding requirement, in whole or in
part, by having the Company withhold shares of Stock having a Fair Market Value on the date
the tax is to be determined equal to the statutory total tax which could be imposed on the
transaction. All such elections shall be made in writing, signed by the Grantee, and shall
be subject to any restrictions or limitations that the Committee, in its discretion, deems
appropriate. Any fraction of a share of Stock required to satisfy such obligation shall be
disregarded and the amount due shall instead be paid in cash by the Grantee.

(l) Grantee’s Address.

	 	 	 
	Grantee’s address of record is:
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

Grantee shall be responsible to notify the Company of any changes to his address.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first
above written.

	 	 	 	 	 
	 	COMPANY:

T-3 ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ Michael T. Mino
 	 
	 	Name:  	Michael T. Mino 	 
	 	Title:  	VP — CFO 	 
	 

	 	 	 
	Address:

	 	T-3 Energy Services, Inc.
	 

	 	13111 Northwest Freeway, Suite 500
	 

	 	Houston, TX 77040
	 

	 	Facsimile: (713) 881-2815
	 

	 	Attention: Secretary

	 	 	 	 	 
	 	GRANTEE:

 	 
	 	/s/ Gus D. Halas
 	 
	 	Gus D. Halas 	 
	 	 	 

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APPENDIX A TO

PERFORMANCE RESTRICTED STOCK AGREEMENT

Grantee’s Name: Gus D. Halas

	 	 	 	 	 
	 	 	Number of
	Grant Date:	 	Restricted Shares Granted
	January 12, 2006
	 	 	50,000	 

	 	 	 
	 	 	Number of
	Vesting Date	 	Restricted Shares Granted to be Vested
	1. January 12,
2007

	 	1. 25,000 if on the close of business this Vesting Date
the Company’s Common Stock price has increased at least
25% from the closing price of the Common Stock on the
Grant Date on the Nasdaq Stock Market (“Nasdaq”);
provided, however, that if on this Vesting Date such
common stock price has not increased by at least 25%
from the Grant Date then a pro rata portion of 25,000
Restricted Shares shall be vested for any increase in
the closing price of the Common Stock on Nasdaq from
the Grant Date as determined on the Vesting Date; for
example, if on the Vesting Date the closing price of
the Common Stock price has increased by 10% from the
closing price of the Common Stock price on the Grant
Date, 10,000 of the Restricted Shares shall be vested
on this Vesting Date.
	 
	 	 
	2. January 11,
2008

	 	2. 25,000 if on the close of business this Vesting Date
the Company’s Common Stock price has increased at least
25% from the closing price of the Common Stock on
January 12, 2007 on the Nasdaq Stock Market (“Nasdaq”);
provided, however, that if on this Vesting Date such
common stock price has not increased by at least 25%
from January 12, 2007 then a pro rata portion of 25,000
Restricted Shares shall be vested for any increase in
the closing price of the Common Stock on Nasdaq from
January 12, 2007 as determined on the Vesting Date; for
example, if on the Vesting Date the closing price of
the Common Stock price has increased by 10% from the
closing price of the Common Stock price on January 12,
2007, 10,000 of the Restricted Shares shall be vested
on this Vesting Date.

Note: All vesting is subject to the terms and conditions of the Agreement.exv10w68

 

Exhibit 10.68

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (the “AGREEMENT”), dated effective as of April
17, 2006, is made and entered into by Paul Noack (“EXECUTIVE”) and HERBALIFE INTERNATIONAL OF
AMERICA, INC., a Nevada corporation (“COMPANY”). The parties to this Agreement agree as follows:

	 	1.	 	Employment Term. The Company shall employ Executive and Executive shall
continue in the employ of the Company through December 31, 2006.
	 
	 	2.	 	Duties.  Executive shall serve in the Los Angeles, California area as Chief
Strategic Officer, with all of the authority, duties and responsibilities commensurate with
such positions. Executive shall report the Company’s Chief Executive Officer.
	 
	 	3.	 	Compensation and Related Matters.

	 	(a)	 	Salary. Effective April 1, 2006, Executive shall receive a salary at
the per annum rate of four hundred fifty thousand dollars ($450,000), payable in
accordance with the Company’s payroll practices for senior executives.
	 
	 	 	 	Subject to board approval, Executive will be granted: (i) 130,000 SARS immediately
and (ii) 20,000 Restricted Stock Units immediately.
	 
	 	(b)	 	Employment Benefits. Executive and Executive’s qualified dependents
shall be entitled to participate in or receive benefits under each benefit plan or
arrangement made available by the Company to its senior executives (including, without
limitation, those relating to group medical, dental, vision, long-term disability, D&O,
accidental death and dismemberment, and life insurance), subject to and on a basis
consistent with the terms, conditions and overall administration of such plans and
subject to the Company’s right to modify, and amend or terminate any such plan or
arrangement with or without prior notice. Executive is eligible to participate in the
Company’s 401K program, and Executive is eligible to participate in the Company’s
Deferred Compensation.
	 
	 	(c)	 	Bonus. Executive will be eligible for a target bonus of 50% of his
end-of-year salary calculated in accordance with the senior executive bonus plan.
Bonuses if any, will be paid following the completion of the relevant calendar year at
such time bonuses are paid to the Company’s other senior executives.
	 
	 	(d)	 	Vacation. Executive shall be entitled to three (3) weeks of vacation
during each year, accrued at the rate of 4.62 hours per pay period.

	 	4.	 	Termination Payment. If Executive is terminated by the Company without Cause
or resigns for Good Reason before December 31, 2006, Executive will receive then current
salary for the remainder of the contract. As a precondition to the Company’s obligation to
pay out this contract, Executive agrees to execute and deliver to the Company a fully

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	 	 	 	effective general release in the form attached to this Agreement as Attachment A. The
Company will commence paying Executive’s salary in accordance with the Company’s payroll
practices for senior executive’s through the remainder of the Employment Term through
December 31, 2006, subject to Executive’s duty to mitigate, and such payments shall cease
if Executive obtains employment or if Executive fails to document to the Company on a
monthly basis that Executive is making reasonable efforts to seek employment. For purposes
of this Agreement, the Company shall have “Cause” to terminate the Executive’s services in
the event of any of the following acts or circumstances: (i) Executive’s conviction of a
felony or entering a plea of guilty or nolo contendere to any crime constituting a felony
(other than a traffic violation or by reason of vicarious liability); (ii) Executive’s
substantial and repeated failure to attempt to perform Executive’s lawful duties as
contemplated in Section 2 of this Agreement, except during periods of physical or mental
incapacity; (iii) Executive’s gross negligence or willful misconduct with respect to any
material aspect of the business of the Company or any of its affiliates, which negligence
or misconduct has a material and demonstrable adverse effect n the Company; or (iv) any
material breach of this Agreement or any material breach of any other written agreement
between Executive and the Company’s affiliates governing Executive’s equity compensation
arrangements (i.e., any agreement with respect to Executive’s stock and/or stock options of
any of the Company’s affiliates); provided, however, that Executive shall not be deemed to
have been terminated for Cause in the case of clause (iv) above, unless any such breach is
not fully corrected prior to the expiration of the fifteen (15) calendar day period
following delivery to Executive of the Company’s written notice of its intention to
terminate his employment for Cause describing the basis therefore in reasonable detail.

	 	 	 	For purposes of this agreement, “Good Reason” will be deemed to have occurred if Executive
terminates his employment because of (i) a material diminution of Executive’s duties as
Chief Strategic Officer of the Company, (ii) the breach by the Company in any respect of any
of its obligations under this Agreement, and, in any such case (but only if correction or
cure is possible), the failure by the Company to correct or cure the circumstance or breach
on which such resignation is based within 30 days after receiving notice from Executive
describing such circumstance or breach in reasonable detail or (iii) the relocation of
Executive’s primary office location to a location more than 75 miles outside the Los
Angeles, California area.

	 	5.	 	Confidential and Proprietary Information.

	 	(a)	 	The parties agree and acknowledge that during the course of Executive’s
employment, Executive will be given and will have access to and be exposed to trade
secrets and confidential information in written, oral, electronic and other forms
regarding the Company and its affiliates (which includes but is not limited to all of
its business units, divisions and affiliates) and their business, equipment, products
and employees, including, without limitation: the identities of the Company’s and its
affiliates’ distributors and customers and potential distributors and customers
(hereinafter referred to collectively as “DISTRIBUTORS”), including, without
limitation, the identity of Distributors that Executive cultivates

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	 	 	 	or maintains while provided services at the Company or any of its affiliates using
the Company’s or any of its affiliates’ products, name and infrastructure, and the
identities of contact persons with respect to those Distributors and contact persons
with respect to product types, pricing, sales calls, timing, sales terms, rental
terms, lease terms, service plans, and other marketing terms and techniques; the
Company’s and its affiliates’ business methods, practices, strategies, forecasts,
pricing, ad marketing techniques; the identities of the Company’s and its
affiliates’ licensors, vendors and other suppliers and the identities of the
Company’s and its affiliates’ contact persons at such licensors, vendors and other
suppliers; the identities of the Company’s and its affiliates’ key sales
representatives and personnel and other employees; advertising and sales materials;
research, computer software and related materials; and other facts and financial and
other business information concerning or relating to the Company or any of its
affiliates and their business, operations, financial condition, results of
operations and prospects. Executive expressly agrees to use such trade secrets and
confidential information only for purposes of carrying out his duties for the
Company and its affiliates as he deems appropriate in his good faith judgment, and
not for any other purpose, including, without limitation, not any way or for any
purpose detrimental to the Company or any of its affiliates. Executive shall not at
any time, either during the course of his employment hereunder or after the
termination of such employment, use for himself or others, directly or indirectly,
any such trade secrets or confidential information, and, except as required by law,
Executive shall not disclose such trade secrets or confidential information,
directly or indirectly, to any other person or entity. Trade secret and
confidential information hereunder shall not include any information which (i) is
already in or subsequently enters the public domain, other than as a result of any
direct or indirect disclosure by Executive, (ii) becomes available to Executive on a
non-confidential basis from a source other than the Company or any of its
affiliates, provided that Executive has no knowledge that such source is subject to
a confidentiality agreement or other obligation of secrecy or confidentiality
(whether pursuant to a contract, legal or fiduciary obligation or duty or otherwise)
to the Company or any of its affiliates or any other person or entity or (iii) is
approved for release by the board of directors of the Company or any of its
affiliates or which the board of directors of the Company or any of its affiliates
makes available to third parties without an obligation of confidentiality.
	 
	 	(b)	 	All physical property and all notes, memoranda, files, records, writings,
documents and other materials of any and every nature, written or electronic, which
Executive shall prepare or receive in the course of his employment with the Company and
which relate to or are useful in any manner to the business now or hereafter conducted
by the Company or any of its affiliates are and shall remain the sole and exclusive
property of the Company and its affiliates, as applicable. Executive shall not remove
from the Company’s premises any such physical property, the original or any
reproduction of any such materials nor the information contained therein except for the
purposes of carrying out his duties to the Company or any of its affiliates and all
such property (except for any items of

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	 	 	 	personal property not owned by the Company or any of its affiliates), materials and
information in his possession or under his custody or control upon the termination
of his employment (other than such materials received by executive solely in his
capacity as a shareholder) or at any other time upon request by the Company shall be
immediately turned over to the Company and its affiliates, as applicable.
	 
	 	(c)	 	All inventions, improvements, trade secrets, reports, manuals computer
programs, tapes and other ideas and materials developed or invented by Executive during
the period of his employment, either solely or in collaboration with others, which
relate to the actual or anticipated business or research of the Company or any of its
affiliates which result from or are suggested by any work Executive may do for the
Company or any of its affiliates or which result from the use of the Company’s or any
of its affiliates’ premises or property (collectively, the “DEVELOPMENTS”) shall be the
sole and exclusive property the Company and its affiliates, as applicable. Executive
assigns and transfers to the Company his entire right and interest in any such
development, and Executive shall execute and deliver any and all documents and shall do
and perform any and all other acts and things necessary or desirable in connection
therewith that the Company or any of its affiliates may reasonably request, it being
agreed that the preparation of any such documents shall be at the Company’s expense.
Nothing in this paragraph applies to an invention which qualifies fully under the
provisions of California Labor Code Section 2870.
	 
	 	(d)	 	Following the termination of Executive’s employment, Executive will reasonably
cooperate with the Company (at the Company’s expense, if Executive reasonably incurs
any out-of-pocket costs with respect thereto) in any defense of any legal,
administrative or other action in which the Company or any of its affiliates or any of
their distributors or other business relations are a party or are otherwise involved,
so long as any such matter was related to Executive’s duties and activities conducted
on behalf of the Company or its Subsidiaries.
	 
	 	(e)	 	The provisions of this Section 5 and Section 6 shall survive any termination of
this Agreement and termination of Executive’s employment with the Company.

	 	6.	 	Non-Solicitation. Executive acknowledges that in the course of his employment
for the Company he will become familiar with the Company’s and its affiliates’ trade
secrets and other confidential information concerning the Company and its affiliates.
Accordingly, Executive agrees that, during Executive’s employment and for a period of
twenty-four (24) months immediately thereafter (the “NONSOLICITATION PERIOD”), he will not
directly or indirectly through another entity (i) induce or attempt to induce any employee
or Distributor of the Company or any of its affiliates to leave the employment of, or cease
to maintain its distributor relationship with, the Company or such affiliate, or in any way
interfere with the relationship between the Company or any such affiliate and any employee
or Distributor thereof, (ii) hire any person who was an employee of the Company or any of
its affiliates at any time during the Nonsolicitation

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	 	 	 	Period or enter into a distributor relationship with any person or entity who was or is a
Distributor of the Company or any of its affiliates at any time during the Nonsolicitation
Period, (iii) induce or attempt to induce any Distributor, supplier, licensor, licensee or
other business relation of the Company or any of its affiliates to cease doing business
with the Company or such affiliate, or in any way interfere with the relationship between
such Distributor, supplier, licensor, licensee or business relation and the Company or any
of its affiliates or (iv) use any trade secrets or other confidential information of the
Company or any of its affiliates to directly or indirectly participate in any means or
manner in any competitive business, wherever located.

	 	7.	 	Injunctive Relief. Executive and the Company (a) intend that the provisions of
sections 5 and 6 be and become valid and enforceable, (b) acknowledge and agree that the
provisions of Sections 5 and 7 are reasonable and necessary to protect the legitimate
interests of the business of the Company and its affiliates and (c) agree that any
violation of Section 5 or 6 will result in irreparable injury to the Company and its
affiliates, the exact amount of which will be difficult to ascertain and the remedies at
law for which will not be reasonable or adequate compensation to the Company and its
affiliates for such a violation. Accordingly, Executive agrees that if Executive violates
or threatens to violate the provisions of Section 5 or 6, in addition to any other remedy
which may be available at law or in equity, the Company shall be entitled to seek specific
performance and injunctive relief, without posting bond or other security, and without the
necessity of proving actual damages. In addition, in the event of a violation or
threatened violation by Executive of Section 5 or 6 of this Agreement, the Nonsolicitation
Period will be tolled until such violation or threatened violation has been duly cured.
If, at the time of enforcement of Sections 5 or 6 of this Agreement, a court holds that the
restrictions stated therein are unreasonable under circumstances then existing, the parties
thereto agree that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area.
	 
	 	8.	 	Assignment; Successors and Assigns. Executive agrees that he shall not assign,
sell, transfer, delegate or otherwise dispose of, whether voluntarily or involuntarily, any
rights or obligations under this Agreement, nor shall Executive’s rights hereunder be
subject to encumbrance of the claims of creditors. This agreement may be assigned by the
Company without the consent of the Executive to (a) any entity succeeding to all or
substantially all of the assets or business of the Company, whether by merger,
consolidation, acquisition or otherwise (upon which entity the Agreement shall be binding),
or (b) any affiliate; provided, however, that in neither case shall the Company be released
from its obligations hereunder, nor shall any assignment to any affiliate lessen the
Executive’s rights with respect to his position, duties, responsibilities or authority with
respect to the Company.
	 
	 	9.	 	Governing Law; Jurisdiction and Venue. This Agreement shall be governed,
construed, interpreted and enforced in accordance with the substantive laws of the State of
California without regard to the conflicts of law principles thereof. Suit to enforce this
Agreement or any provision or portion thereof may be brought in the federal or state courts
located in Los Angeles, California.

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	 	10.	 	Severability of Provisions. In the event that any provision of this Agreement
should ever be adjudicated by a court of competent jurisdiction to be unenforceable, then
such provision shall be deemed reformed to the maximum extent permitted by applicable law,
and the invalidity or unenforceability to any provision shall not affect the validity or
enforceability or any other provision of this Agreement.
	 
	 	11.	 	Warranty. As an inducement to the Company to enter into this Agreement,
Executive represents and warrants that he is not a party to any other agreement or
obligation for personal services, and that there exists no impediment or restraint,
contractual or otherwise, on his power, right or ability to enter into this Agreement and
to perform his duties and obligations hereunder.
	 
	 	12.	 	Notices. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be deemed to
have been duly given when received if personally delivered; when transmitted if transmitted
by telecopy, electronic or digital transmission method upon receipt of telephonic or
electronic confirmation; the day after it is sent, if sent for next day delivery to a
domestic address by recognized overnight delivery service (e.g., Federal Express); and upon
receipt, if sent by certified or registered mail, return receipt requested. In each case
notice will be sent to:

	 
	 	              	(a)	 	If to the Company:

	 
	 	              	 	 	Herbalife International of America, Inc.

1800 Century Park East

Los Angeles, California 90067

Attention: Senior Vice President, Human Resources

Telecopy: (310) 557-3941

	 
	 	 	              	 	with a copy to:

	 
	 	              	 	 	Herbalife Ltd.

1800 Century Park East

Los Angeles, California 90067

Attention: General Counsel

Telecopy: (310) 203-7747

	 
	 	              	(b)	 	if to Executive, to:

	 
	 	              	 	 	Paul Noack

2816 Sandhurst Avenue

Thousand Oaks, California 91362

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

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	 	13.	 	Counterparts. This Agreement may be executed in several counterparts, each of
which will be deemed to be an original, but all of which together shall constitute one
and the same Agreement.
	 
	 	14.	 	Entire Agreement. The terms of this Agreement are intended by the parties to
be the final expression of their agreement with respect to the subject matter hereto and
this Agreement supersedes (and may not be contradicted by, modified or supplemented by) any
prior or contemporaneous agreement, written or oral, with respect thereto, with the sole
exception of the non-statutory stock option agreement governing those options, if any,
granted under Paragraph 3 (a) above. The parties further intend that this Agreement shall
constitute the complete and exclusive statement of its terms and that no extrinsic evidence
whatsoever may be introduced in any judicial, administrative or other legal proceeding to
vary the terms of this Agreement.
	 
	 	15.	 	Amendments; Waivers. This Agreement may not be modified, amended, or
terminated except by an instrument in writing, signed by Executive and a duly authorized
representative of the Company. No waiver of any of the provisions of this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed to be
construed as a further, continuing or subsequent waiver of any such provision or as a
waiver of any other provision of this Agreement. No failure to exercise and no delay in
exercising any right, remedy or power hereunder shall preclude any other or further
exercise of any other right, remedy or power provided herein or by law or in equity.
	 
	 	16.	 	Representation of Counsel; Mutual Negotiation. Each party has had the
opportunity to be represented by counsel of its choice in negotiating this Agreement. This
Agreement shall therefore be deemed to have been negotiated and prepared at the joint
request, direction and construction of the parties, at arm’s-length, with the advice and
participation of counsel, and shall be interpreted in accordance with its terms without
favor to any party.

Page 7 of 12

 

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

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	By:  	 	 
	 	 	Paul Noack 	 
	 	 	 	 
	 
	 	HERBALIFE INTERNATIONAL OF AMERICA, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	Name: 	 	 
	 	 	 	 
	 	Title: 	 	 
	 	 	 	 

Page 8 of 12

 

	 	 	 	 	 

ATTACHMENT A

Agreement and General Release

     Agreement and General Release (“AGREEMENT”), by and among Paul Noack (“EXECUTIVE” and
referred to herein as “you”) and HERBALIFE INTERNATIONAL OF AMERICA, INC., a Nevada corporation
(the “COMPANY”).

     1. In exchange for your waiver of claims against the Company Entities (as defined below) and
compliance with other terms and conditions of this Agreement, upon the effectiveness of this
Agreement, the Company agrees to provide you with the payments and benefits provided in Section 4
of your Employment with the Company.

     2. (a) In consideration for the payments and benefits to be provided to you pursuant to
paragraph 1 above, you, for yourself and for your heirs, executors, administrators, trustees, legal
representatives and assigns) hereinafter referred to collectively as (“RELEASORS”), forever release
and discharge the Company and its past, present and future parent entities, subsidiaries,
divisions, affiliates and related business entities, successors and assigns, assets, employee
benefit plans or funds (including, without limitation, each of Whitney & Co., L.L.C., Golden Gate
Private Equity, Inc., any investment fund managed by either of them and any affiliate of any of the
aforementioned persons or entities), and any of its or their respective past, present and/or future
directors, officers, fiduciaries, agents, trustees, administrators, employees and assigns, whether
acting on behalf of the Company or in their individual capacities (collectively the “COMPANY
ENTITIES”) from any and all claims, suits, demands, causes of action, covenants, obligations,
debts, costs, expenses, fees and liabilities of any kind whatsoever in law or equity, by statute or
otherwise, whether known or unknown, vested or contingent, suspected or unsuspected and whether or
not concealed or hidden (collectively, the “CLAIMS”), which you ever had, now have or may have
against any of the Company Entities by reason of any act, omission, transaction, practice, plan,
policy, procedure, conduct, occurrence, or other matter related in any way to your employment by
(including, but not limited to, termination thereof) the Company Entities up to and including the
date on which you sign this Agreement, except as provided in subsection (c) below.

          (b) Without limiting the generality of the foregoing, this Agreement is intended to
and shall release the Company Entities from any and all claims, whether known or unknown, which
Releasors ever had, now have, or may have against the Companies Entities arising out of your
employment or termination thereof, including but not limited to: (i) any claim under Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Employee Retirement Income Security Act, of 1974 (excluding claims for
accrued, vested benefits under any employee benefit or pension plan of the Company Entities subject
to the terms and conditions of such plan and applicable law), the Family and medical leave Act, the
Worker Adjustment and Retraining Notification Act of 1988, of the Fair Labor Standards Act of 1938,
in each case as amended; (ii) any claim under the California Fair Employment and Housing Act, the
California Labor Code, the California Family Rights act, or the California Pregnancy Disability
Leave Law; (iii) any other claim (whether based on federal, state, or local law (statutory or
decisional), rule, regulation or ordinance) relating to or arising out

Page 9 of 12

 

of your employment, the terms and conditions of such employment, the termination of such
employment, including, but not limited to, breach of contract (express or implied), wrongful
discharge, detrimental reliance, defamation, emotional distress or compensatory or punitive
damages; and (iv) any claim for attorney’s fees, costs, disbursements and/or the like.

          (c) Notwithstanding the foregoing, nothing in this Agreement shall be a
waiver of claims: (1) that may arise after the date on which you sign this Agreement; (2) with
respect to your right to enforce your rights that survive termination under the Employment
Agreement or any other written agreement entered into between you and the Company (including,
without limitation, any equity grants or agreements); (3) regarding rights of indemnification,
receipt of legal fees and directors and officers liability insurance to which you are entitled
under the Employment Agreement, the Company’s Certificate of Incorporation or By-laws, pursuant to
any separate writing between you and the Company or pursuant to applicable law; (4) relating to any
claims for accrued, vested benefits under any employee benefit plan or pension plan of the Company
Entities subject to the terms and conditions of such plan and applicable law; or (5) as a
stockholder or optionholder of the Company.

          (d) In signing this Agreement, you acknowledge that you intend that this
Agreement shall be effective as a bar to each and every one of the Claims hereinabove mentioned or
implied. You expressly consent that this Agreement shall be given full force and effect according
to each and all of its express terms and provisions, including those relating to unknown,
unsuspected or unanticipated Claims (notwithstanding any state statute that expressly limits the
effectiveness of a general release of unknown, unsuspected or unanticipated Claims), if any, as
well as those relating to any other Claims hereinabove mentioned or implied. You acknowledge and
agree that this waiver is an essential and material term of this Agreement, and the Company is
entering into this Agreement in reliance on such waiver. You further agree that if you bring your
own Claim in which you seek damages against any Company Entity, or if you seek to recover against
any Company Entity in any Claim brought by a governmental agency on your behalf, the releases set
forth in this Agreement shall serve as a complete defense to such Claims, and you shall reimburse
each Company Entity for any attorney’s fees or expenses or other fees and expenses incurred in
defending any such Claim; provided, however, if a class action claim or governmental claim is
brought on your behalf, your obligations will be limited to (i) opting out of such action or claim
at the first available opportunity and (ii) turning over any and all damage awards or other
proceeds received in connection therewith to the Company, it being agreed that you shall not be
liable to the Company any attorney’s fees or expenses or other fees or expenses in the case of any
such class action claim or governmental claim.

          (e) Without limiting the generality of the foregoing, you waive all rights
under California Civil Code Section 1542, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH, IF KNOWN BY HIM, MUST
HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Page 10 of 12

 

     3. (a) This Agreement is not intended, and shall not be construed, as an admission that any of
the Company Entities has violated any federal, state or local law (statutory or decisional),
ordinance or regulation, breached any contract or committed any wrong whatsoever against you.

          (b) Should any provision of this Agreement require interpretation or construction it is agreed
by the parties that the entity interpreting or constructing this Agreement shall not apply a
presumption against one party by reason of the rule of construction that a document is to be
construed more strictly against the party who prepared the document.

     4. For two years from and after the date of your employment termination, you agree not to make
any derogatory, negative or disparaging public statement about any Company Entity, or to make any
public statement (or any statement likely to become public) that could reasonably be expected to
adversely affect or disparage the reputation, or, to the extent applicable, business or goodwill of
any Company Entity, it being agreed and understood that nothing herein shall prohibit you (a) from
disclosing that you are no longer employed by the Company, (b) from responding truthfully to any
governmental investigation or inquiry related thereto, whether by the Securities and Exchange
Commission or other governmental entity or any other law, subpoena, court order or other compulsory
legal process or any disclosure requirement of the Securities and Exchange Commission, or (c) from
making traditional competitive statements in the course of promoting a competing business, so long
as any statements made by you described in this clause (d) are not based on confidential
information obtained during the course of your employment with the Company. The Company agrees
that it will not make any derogatory, negative or disparaging public statement about you in an
authorized press release or authorized public announcement.

     5. This Agreement is binding upon, and shall inure to the benefit of, the parties and their
respective heirs, executors, administrators, successors and assigns.

     6. This Agreement shall be construed and enforced in accordance with the laws of the State of
California applicable to agreements made and to be performed entirely within such State.

     7. You acknowledge that your obligations pursuant to Sections 5, 6 and 7 of the Employment
Agreement survive the termination of your employment in accordance with the terms thereof.

     8. You acknowledge that you: (a) have carefully read this Agreement in its entirety; (b) have
had an opportunity to consider for at least twenty-one (21) days the terms of this Agreement; (c)
are hereby advised by the Company in writing to consult with an attorney of your choice in
connection with this Agreement; (d) fully understand the significance of all of the terms and
conditions of this Agreement and have discussed them with your independent legal counsel, or have
had a reasonable opportunity to do so; (e) have had answered to your satisfaction by your
independent legal counsel any questions you have asked with regard to the meaning and significance
of any of the provisions of this Agreement; and (f) are signing this

Page 11 of 12

 

Agreement voluntarily and of your own free will and agree to abide by all the terms and
conditions contained herein.

     9. You understand that you will have at least twenty-one (21) days from the date of receipt of
this Agreement to consider the terms and conditions of this Agreement. You may accept this
Agreement by signing it and returning to the Company’s General Counsel at the address specified
pursuant to Section 12 of the Employment Agreement on or before _____________________. After executing this
Agreement, you shall have seven (7) days (the “REVOCATION PERIOD”) to revoke this Agreement by
indicating your desire to do so in writing delivered to the General Counsel at the address above by
no later than 5:00 p.m. on the seventh (7th) day after the date you sign the Agreement
(the “AGREEMENT EFFECTIVE DATE”). If the last day of the Revocation Period falls on a Saturday,
Sunday or holiday, the last day of the Revocation Period will be deemed to be the next business
day. In the event you do not accept this Agreement as set forth above, or in the even you revoke
this Agreement during the Revocation Period, this Agreement, including but not limited to the
obligation of the Company to provide the payments and benefits provided in paragraph 1 above, shall
be deemed automatically null and void.

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	By:  	 	 
	 	 	Paul Noack 	 
	 
	 
	 	HERBALIFE INTERNATIONAL OF AMERICA, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	Name: 	 	 
	 	 	 	 
	 	Title: 	 	 
	 	 	 	 

Page 12 of 12

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