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Paul Noack. We entered into an executive employment agreement, or the Noack Employment Agreement, effective January 1, 2004, and amended on April 17, 2006 with Mr. Paul Noack through our subsidiary Herbalife America. Pursuant to the Noack Employment Agreement, Mr. Noack will serve as Chief Strategic Officer through December 31, 2006. For his services as Chief Strategic Officer, Mr. Noack will be entitled to a salary of $450,000 per year. In addition, Mr. Noack shall be entitled to a target bonus of 50% of his end of the year salary in accordance with the senior executive bonus plan. Mr. Noack received an annual cash bonus of $426,000 for the fiscal year ended December 31, 2006 including a $26,000 adjustment to 2005 as well as an option to purchase 161,500 stock appreciation rights and was granted 23,375 stock units, as more fully described above under Grants of Plan Based Awards.
Upon termination of Mr. Noack’s employment by us without cause, or upon his resignation for good reason, Mr. Noack would be entitled to receive his then-current base salary for the remainder of the term under the Noack Employment Agreement, subject to his duty to mitigate; provided that such payments would cease if Mr. Noack obtains subsequent employment or fails to document to us on a monthly basis that he is making reasonable efforts to seek employment. As of January 1, 2007 Mr. Noack became an at will employee.
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