Document:

exv10w2

Exhibit 10.2

AMENDMENT TO PLEDGE AND SECURITY AGREEMENT

               THIS AMENDMENT TO PLEDGE AND SECURITY AGREEMENT (this “Amendment”), dated as of July
29, 2010, is made by and among EMISPHERE TECHNOLOGIES, INC., as grantor (together with each other
grantor party to the Security Agreement (as defined below), “Grantor”) and MHR
INSTITUTIONAL PARTNERS IIA LP, as secured party on behalf of the lenders described in the Security
Agreement (“Secured Party”). All capitalized terms used herein and not otherwise expressly
defined herein shall have the respective meanings given to such terms in the Security Agreement (as
defined below).

               WHEREAS, Grantor and Secured Party entered into that certain Pledge and Security Agreement,
dated as of September 26, 2005 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the “Security Agreement”), pursuant to which Grantor granted in
favor of Secured Party a first priority security interest in and lien upon all of Grantor’s right,
title and interest in and to the Collateral in order to secure the Secured Loan;

               WHEREAS, in addition to the amounts advanced to Grantor as the Secured Loan, on the date
hereof, Secured Party and MHR Institutional Partners II LP (collectively, the “Bridge
Lenders”) have agreed to advance to Grantor an amount equal to $525,000 (the “Bridge
Loan”) and Grantor has agreed to issue to Bridge Lenders a senior secured promissory note in
the amount of $525,000 (the “Bridge Note”);

               WHEREAS, it is a condition to Bridge Lenders’ agreement to make the Bridge Loan to Grantor
that Grantor grant in favor of Secured Party a first priority security interest in and lien upon
all of Grantor’s right, title and interest in and to the Collateral in order to secure the Bridge
Loan;

               WHEREAS, in connection with the foregoing, Grantor has requested that Secured Party agree to
certain amendments to the Security Agreement, each as more particularly set forth herein; and

               WHEREAS, Secured Party is willing to agree to such amendments as more fully set forth herein,
subject to the terms and conditions set forth herein.

               NOW, THEREFORE, in consideration of the foregoing premises, and other good and valuable
consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:

     I. Amendments to the Security Agreement.

          A. Section 1.1 of the Security Agreement is hereby amended by deleting the text of the
definition of “Loan Documents” in its entirety and, in lieu thereof, inserting the following:

“ ‘Loan Documents’ shall have the meaning ascribed to such term in the Loan
Agreement. For purposes of this Agreement, the term ‘Loan Documents’ shall be deemed to
include the Bridge Note.”

          B. Section 1.1 of the Security Agreement is hereby amended by deleting the text of the
definition of “Obligations” in its entirety and, in lieu thereof, inserting the following:

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“ ‘Obligations’ shall mean all present and future obligations and liabilities of
each of the Grantors to the Secured Party and each of the Lenders and the Bridge Lenders under this Agreement and
the Loan Documents, including, without limitation, principal of and interest on the Secured
Loan, the Convertible Note (as applicable) and the Bridge Loan, and any and all fees,
expenses, indemnities, premiums and any other sum chargeable to the Grantors under this
Agreement or any of the other Loan Documents, including, without limitation, interest
accruing at the specified rate (including any default rate of interest) after the filing of
a petition or commencement of a case by or with respect to the Grantors seeking relief under
any applicable federal and state laws pertaining to bankruptcy, reorganization, arrangement,
moratorium, readjustment of debts, dissolution, liquidation or other debtor relief,
specifically including, without limitation, the Bankruptcy Code and any fraudulent transfer
and fraudulent conveyance laws, whether or not the claim for such interest is allowed or
allowable in such proceeding, whether due or to become due, secured or unsecured, direct or
indirect, absolute or contingent, joint or several, and howsoever or whensoever incurred by
each of the Grantors or acquired by the Secured Party or each of the Lenders; and in each
case with respect to the foregoing, all such liabilities and obligations that, but of the
operation of the automatic stay under Section 362(a) of the Bankruptcy Code, would become
due, and all fees, costs and expenses payable by such Grantor under this Agreement.”

          C. Section 1.1 of the Security Agreement is hereby amended by inserting the following
new defined terms in the appropriate alphabetical order:

“ ‘Bridge Lenders’ shall mean the lenders identified in the Bridge Note and their
successors and assigns.”

“ ‘Bridge Loan’ shall mean an original principal amount equal to $525,000 advanced
to the Grantors by the Bridge Lenders in accordance with the terms and conditions set forth
in the Bridge Note.”

“ ‘Bridge Loan Excluded Collateral’ shall mean all Licensed IP as such term is
defined in that certain Master Agreement and Amendment by and between Grantor and Novartis
Pharma AG dated June 4, 2010.”

“ ‘Bridge Note’ shall mean that certain senior secured promissory note, dated as of
July 29, 2010, made by the Grantors in favor of the Bridge Lenders with respect to the
Bridge Loan.”

          D. Section 2.1 of the Security Agreement is hereby amended by deleting the reference
contained therein to “Secured Loan” and, in lieu thereof, inserting the phrase “Secured Loan and
the Bridge Loan”.

          E. Article 2 of the Security Agreement is hereby amended by inserting the following
new Section 2.4:

“Bridge Loan Excluded Collateral. Notwithstanding anything to the contrary contained in
this Article 2, no Lien is or shall be created in connection with the Bridge Loan in
favor of the Secured Party in any Grantor’s right, title and interest in any Bridge Loan
Excluded Collateral, except that, for all purposes of this Security
Agreement, the Secured Loan and the Loan Agreement, any lien
already created pursuant to the Security Agreement, the Secured Loan and the Loan Agreement prior to the date hereof, shall remain
unchanged and unmodified in all respects and shall continue in full force and effect as
existed prior to the date hereof.”

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          F. Section 6.1 of the Security Agreement is hereby amended by deleting the first
sentence thereof in its entirety and, in lieu thereof, inserting the following sentence:

“As used herein, the terms ‘Default’ and “Event of Default’ shall refer to such terms as
defined in the Loan Agreement or the Bridge Note, as applicable; provided, however, that for
purposes of this Agreement and all other Security Documents, a Stockholder Approval Default
shall not constitute an Event of Default unless Grantor shall be in breach of its
obligations under Section 12.2(b) of the Loan Agreement.”

          G. Section 6.3(b) of the Security Agreement is hereby amended by deleting the phrase
“the Secured Loan or the Convertible Note, as applicable” contained therein and, in lieu thereof,
inserting the phrase “the Secured Loan, the Convertible Note or the Bridge Note, as applicable”.

          H. Section 8.1 of the Security Agreement is hereby amended by deleting the phrase
“Article 13 of the Loan Agreement, and such Article 13 is incorporated by reference herein”
contained therein and, in lieu thereof, inserting the phrase “Article 13 of the Loan Agreement and
the fourth paragraph of the Bridge Note, and such Article 13 and such fourth paragraph are each
incorporated by reference herein.”

          I. The Grantor and the Secured Party hereby agree and acknowledge their respective intentions that,
 except for the Bridge Loan Excluded Collateral, the Bridge Lenders shall have the same rights and interests under the Security Agreement as the lenders under the Loan Agreement.  The Grantor and the Secured Party further agree that the Grantor shall, if so requested by the Bridge Loan Lenders, take all reasonable actions necessary
 to give effect to the preceding sentence and the intent of the parties with respect thereto.

II. Effectiveness. This Amendment shall become effective upon (a) receipt by Secured
Party of originally executed counterparts hereof by Grantor and Secured Party, (b) receipt by
Secured Party of an originally executed copy of the Bridge Note from Grantor, (c) receipt by
Secured Party of originally executed counterparts of a written consent (the “Lender
Consent”) by Grantor and the holders of the Convertible Note with respect to the Bridge Loan
and (d) receipt by Secured Party of any and all agreements, schedules and other documents or
instruments with respect to the Bridge Loan as may be reasonably requested by Secured Party, in
each case, such agreements, schedules, documents and instruments to be satisfactory to Secured
Party in all respects.

III. Representations and Warranties. To induce Secured Party to enter into this
Amendment, Grantor does hereby represent and warrant to Secured Party, as to itself, that as of
the date hereof:

          A. after giving effect to the amendments to the Security Agreement set forth herein and the
terms and conditions of the Lender Consent, there exists no Default or Event of Default under the
Security Agreement or any of the other Loan Documents;

          B. Grantor has the power and authority and has taken all the necessary action to authorize the
execution, delivery and performance of this Amendment and the issuance to Secured Party of the
Bridge Note;

          C. this Amendment has been duly executed and delivered by a duly authorized officer of
Grantor, and this Amendment and the Security Agreement, as amended hereby, are the legal, valid and
binding obligation of Grantor enforceable against Grantor in accordance with their respective
terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting creditors’ rights generally and by general
principles of equity; and

          D. the execution, delivery and performance of this Amendment in accordance with the terms
hereof do not and will not, with the passage of time, the giving of notice or otherwise: (i)
require any consent, approval, authorization, permit or license, governmental or otherwise which
has not already been

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obtained or is not in full force and effect or violate any applicable law relating to Grantor;
or (ii) conflict with, result in a breach of or constitute a default under (A) the articles or
certificate of incorporation or bylaws, operating agreement or the partnership agreement, as the
case may be, of Grantor, (B) any indenture, material agreement or other material instrument to
which Grantor is a party or by which any of its properties may be bound, or (C) any material
licenses of Grantor.

IV. General. This Amendment:

          A. shall be deemed to be a Loan Document;

          B. embodies the entire understanding and agreement among the parties hereto and thereto with
respect to the subject matter hereof and thereof and supersedes all prior agreements,
understandings and inducements, whether express or implied, oral or written; and

          C. may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Delivery of an executed counterpart by
electronic transmission shall be equally effective as delivery of a manually executed counterpart
to this Amendment.

V. No Course of Dealing or Performance. Grantor acknowledges and agrees that the
execution, delivery and performance of this Amendment by Secured Party does not and shall not
create (nor shall Grantor rely upon the existence of or claim or assert that there exists) any
obligation of Secured Party to consider or agree to any other amendment of or consent with
respect to any of the Loan Documents, or any other instrument or agreement to which Secured
Party is a party (collectively an “Amendment or Consent”), and in the event that Secured
Party subsequently agrees to consider any requested Amendment or Consent, neither the existence
of this Amendment, nor any other conduct of Secured Party related hereto, shall be of any force
or effect on Secured Party’s consideration or decision with respect to any such requested
Amendment or Consent, and Secured Party shall not have any obligation whatsoever to consider or
agree to any such Amendment or Consent.

VI. Fees and Expenses. Grantor hereby acknowledges and agrees that all fees and
expenses incurred by Secured Party, including, without limitation, those related to the
preparation, arrangement, negotiation, documentation, syndication, closing and administration of
the transactions contemplated by this Amendment, whether or not such transactions are
consummated, shall be for the account of Grantor.

VII. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the successors and permitted assigns of the parties hereto.

VIII. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
IN NEW YORK.

Signatures appear on the following page.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	EMISPHERE TECHNOLOGIES, INC.

 	 
	 	By  	/s/ Michael R. Garone	 
	 	 	Name:  	Michael R. Garone	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	MHR INSTITUTIONAL PARTNERS IIA LP,

 	 
	 	By:  	MHR Institutional Advisors II LLC, its general partner
 	 
	 	 	 
	 	By  	                                              /s/ Mark H. Rachesky
 	 
	 	 	Name:  	Mark H. Rachesky	 
	 	 	Title:  	Authorized Signatory	 
	 

5Exhibit 10.26

Exhibit 10.26

HERBALIFE LTD.

2004 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

STOCK OPTION AGREEMENT (this “Agreement”) dated as of                     , 2005
(the “Grant Date”) between HERBALIFE LTD. (the “Company”), and [OPTIONEE] (the
“Optionee”).

WHEREAS, pursuant to the Herbalife Ltd. 2004 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 the Optionee an option to acquire Common Shares,
par value $0.002 per share, of the Company; and

WHEREAS, the Optionee desires to accept such option subject to the terms and conditions of
this Agreement.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
contained herein, the Company and the Optionee, intending to be legally bound, hereby agree as
follows:

1. Grant.

(a) The Company hereby grants to the Optionee an option (the “Option”) to purchase,
subject to the terms and conditions set forth herein and in the Plan, all or any part of
Common Shares, par value $.002 per share, of the Company (subject to adjustment as set
forth in Section 10 of the Plan) at a price of
$           per share (subject to adjustment as
set forth in Section 10 of the Plan).

(b) The Option [is] [is not] intended to qualify as an “incentive stock option” under Section
422 of the Internal Revenue Code of 1986, as amended (the “Code”).

(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 Option 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 Option 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 in Control, the Committee as constituted immediately before such
Change in Control may, in its sole discretion, accelerate the vesting and exercisability of this
Option upon such Change in Control or take such other actions as provided in Section 11 of the
Plan.

 

 

 

3. Expiration. The Option shall expire on the tenth (10th) anniversary of the date hereof;
provided, however, that the Option may earlier terminate as provided in this Paragraph 3 and/or in
Section 11 of the Plan.

(a) Upon termination of the Optionee’s employment with the Company, that portion of the Option
that is not vested and exercisable will terminate on the date of such termination of employment.

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

(i) if the Optionee’s employment with the Company is terminated for Cause (as defined
below), the vested and exercisable portion of the Option will terminate on the date of such
termination;

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

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

(c) For purposes of this Agreement, the term “Cause” shall have the meaning ascribed
to such term in any written employment agreement between the Optionee and the Company or one or
more of its Subsidiaries, as the same may be amended or modified from time to time, or if the
Optionee 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) commission 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 the Optionee’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 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 the Optionee’s business time and efforts to the business of the Company
and its Subsidiaries; (v) breach of any provision of any agreement, including an employment
agreement, between the Optionee 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 the Optionee’s
employment agreement, if any, or any agreement between the Optionee and the Company or any of its
Subsidiaries.

 

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4. Method of Exercise. The Option may be exercised by delivery to the Company (attention:
Secretary) of a written notice of exercise specifying the number of shares being purchased,
accompanied by payment therefor as follows:

(a) in cash or by check, bank draft or money order payable to the order of the Company;

(b) through the delivery (either actually or by attestation) of unencumbered Common Shares of
the Company held by the Optionee for at least six months having a total Fair Market Value on the
date of delivery equal to the purchase price,

(c) through a combination of cash and shares as provided in clauses (a) and (b) of this
Paragraph 4; or

(d) on such other terms and conditions as may be acceptable to the Committee in its sole
discretion.

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

6. Compliance With Legal Requirements.

(a) The Option shall not be exercisable and no Common Shares shall be issued or transferred
pursuant to this Agreement or the Plan unless and until all tax withholding, if any, and 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 Option, or (iv) obtaining the consent or approval of any governmental regulatory
body.

(b) The Optionee understands that the Company is under no obligation to register for resale
the Common Shares issued upon exercise of the Option. The Company may impose such restrictions,
conditions or limitations as it determines appropriate as to the timing and manner of any exercise
of the Option and/or any resales by the Optionee or other subsequent transfers by the Optionee of
any Common Shares issued as a result of the exercise of the Option, 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 Option and/or the Common Shares underlying the Option and (iii) restrictions as to the
use of a specified brokerage firm or other agent for exercising the Option and/or for such resales
or other transfers. The sale of the shares underlying the Option must also comply with other
applicable laws and regulations governing the sale of such shares.

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

 

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8. Assignment or Transfer Prohibited. The Option 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 the Optionee only by the Optionee or the Optionee’s guardian or legal representative.
Neither the Option
nor any right hereunder shall be subject to attachment, execution or other similar process. In the
event of any attempt by the Optionee to alienate, assign, pledge, hypothecate or otherwise dispose
of the Option 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 Option by notice to the Optionee, and the Option shall thereupon become
null and void.

9. 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.

10. 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.

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

12. 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.

13. 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.

14. 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 the Optionee and Optionee’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.

 

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

	 	 	 	 	 	 	 	 	 
	 	 	HERBALIFE LTD.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	[OPTIONEE]

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

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