Document:

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                                                                  EXHIBIT 10.37

                              EMPLOYMENT AGREEMENT

        This Employment Agreement (the "AGREEMENT"), dated effective as of
November 1, 2001 (the "EFFECTIVE DATE"); is made and entered by and between
Francis X. Tirelli (the "EXECUTIVE") and HERBALIFE INTERNATIONAL, INC., a Nevada
corporation ("PARENT"), and HERBALIFE INTERNATIONAL OF AMERICA, INC., a
California corporation ("OPERATING COMPANY") (collectively, Parent and Operating
Company are referred to herein as the "COMPANY").

                                    RECITALS

        A.      The Company is engaged primarily in the distribution of weight
                management, nutritional and personal care products through a
                "multi-level" marketing system.

        B.      The Company desires to be assured of the services of the
                Executive by employing the Executive in the capacity and on the
                terms set forth below.

        C.      The Executive desires to commit himself to serve the Company on
                the terms herein provided.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below, the parties hereto agree as follows:

1.      Employment Period. The Company shall employ the Executive commencing
        effective as of the Effective Date and through and including October 31,
        2002 (unless extended by mutual agreement in writing of the parties).
        References to the "TERM" shall mean the foregoing employment period plus
        any renewal or extension term mutually agreed upon in writing by the
        parties. Upon expiration of the Term, except as expressly set forth
        herein (including in Section 5 and Section 6), this Agreement and all of
        its provisions shall terminate and shall cease to have any force or
        effect.

2.      Duties

        (a)     During the Term, the Executive shall serve as President and
                Chief Executive Officer of the Company, with such authority and
                duties as assigned to him from time to time by the Board of
                Directors of Parent that are consistent with the customary
                duties of an officer with such or a similar title. Executive
                will work principally in the Los Angeles (Century City),
                California offices of the Company, but will also conduct such
                business travel as is reasonably required to fulfill his duties
                hereunder. During the Term, Executive shall report to the Board
                of Directors of Parent.

        (b)     During the Term, the Executive shall, during customary business
                hours (Monday through Friday), devote substantially all his
                working time,

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                attention, skill and efforts to the business and affairs of the
                Company, will use his best efforts to promote the success of the
                Company's business, and shall not enter the employ of or serve
                as a consultant to, any other company, where such conduct would
                be inconsistent with, in competition with, or restrict the
                Executive from carrying out, his duties to the Company, without
                the prior written consent of the Board of Directors of Parent;
                provided, however, the foregoing shall not preclude the
                Executive from devoting a reasonable amount of time to managing
                Executive's investments and personal affairs and to charitable
                and civic activities.

3.      Compensation and Related Matters

        (a)     Salary Sign-On Bonus. During the Term, the Executive shall
                receive a salary at the per annum rate of $900,000, payable in
                bi-weekly installments or otherwise in accordance with the
                Company's payroll practices for senior executives. Executive's
                annual base salary shall be subject to review from time to time
                for possible increases by the Board of Directors of Parent.
                Executive's base salary, as increased from time to time, shall
                be referred to as the "BASE SALARY." In addition, the Company
                shall pay Executive a special sign-on bonus in the amount of
                $150,000; such amount will be paid on January 2, 2002.

        (b)     Expenses. The Company shall reimburse the Executive for all
                reasonable travel and other reasonable out-of-pocket business
                expenses incurred by the Executive in the performance of his
                duties under this Agreement upon evidence of payment and
                otherwise in accordance with the Company's procedures in effect
                from time to time.

        (c)     Employee Benefits; Bonus Plans. During the Term, the Executive
                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
                and life insurance, stock options and automobile allowances) on
                terms no less favorable than those generally applicable to
                senior executives of the Company, subject to and on a basis
                consistent with the terms, conditions and overall administration
                of such plans. In addition, during the Term the Executive shall
                continue to participate in the cash bonus plans and programs of
                the Company (each such plan, a "BONUS PLAN"), with performance
                goals established in a manner substantially consistent with past
                and current practice and affording the Executive an opportunity
                to earn bonuses at levels not materially less favorable to the
                Executive than under plans and programs currently in effect. In
                particular, but without limiting the foregoing, the parties
                acknowledge that Executive's bonus target for performance in
                2002 shall be structured in a manner, and shall afford Executive
                the opportunity to earn a bonus at a level, that is
                substantially equivalent to that of the Company's previous
                President and Chief Executive Officer.

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        (d)     Vacation. The Executive shall be entitled to four (4) weeks
                vacation during each year of the Term, unless the vacation
                policies for senior executives of the Company provide for a
                greater amount of vacation, in which case Executive shall be
                entitled to such greater amount. Unused vacation in any year
                shall carry over to subsequent years without limitation, unless
                otherwise provided in a vacation pay policy that is generally
                applicable to the senior executives of the Company.

        (e)     Deductions and Withholdings. All amounts payable or which become
                payable hereunder shall be subject to all deductions and
                withholding required by law.

4.      Termination. The Executive's services for the Company and the Term of
        this Agreement may be terminated under the following circumstances:

        (a)     Death. The Executive's services hereunder shall terminate upon
                his death. In the case of the Executive's death, the Company
                shall pay to the Executive's beneficiaries or estate, as
                appropriate, after his death, his then current accrued and
                unpaid Base Salary as well as 100% of any accrued and unpaid
                bonus for any years preceding the year of termination and
                Executive's target bonus for the year of termination
                (collectively the "UNPAID BONUS"), PLUS an additional amount
                equal to one year of Base Salary and Executive's target bonus
                for the current year, and other benefits and payments then due
                (including, without limitation, reimbursement of amounts under
                Section 3) to which the Executive is then entitled hereunder.
                Except as provided in Section 4(h) below, Executive and his
                beneficiaries as appropriate, shall be entitled to no other
                compensation under this Agreement following, or as a result of,
                a termination under these circumstances.

        (b)     Disability

                (i)     If a Disability (as defined below) of the Executive
                        occurs during the Term, the Company may give the
                        Executive written notice of its intention to terminate
                        his employment. In such event, the Executive's services
                        with the Company shall terminate on the effective date
                        specified in such notice. In the case of a termination
                        as a result of a Disability, the Company shall pay to
                        the Executive after his termination his then current
                        accrued and unpaid Base Salary and Unpaid Bonus, plus an
                        additional amount equal to one year of Base Salary and
                        Executive's target bonus for the current year, and other
                        benefits and payments then due (including, without
                        limitation, reimbursement of amounts under Section 3 to
                        which the Executive is entitled hereunder). Except as
                        provided in Section 4(h) below, Executive and his
                        beneficiaries, as appropriate, shall be entitled to no
                        other compensation under this Agreement following, or as
                        a result of, a termination under these circumstances.

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                (ii)    For the purpose of this subsection 4(b), "DISABILITY"
                        shall mean the Executive's inability to perform his
                        duties to the Company on a fulltime basis for 120
                        consecutive days or a total of 180 days in any twelve
                        month period as reasonably determined by the Board of
                        Directors.

        (c)     Termination by the Company for Cause. The Company may terminate
                the Executive's services hereunder for Cause (as defined below)
                at any time upon written notice to the Executive. In such event,
                the Executive's services shall terminate on the effective date
                specified in such notice. In the case of the Executive's
                termination for Cause, the Company shall promptly pay to the
                Executive his then current accrued and unpaid Base Salary and
                accrued and unpaid bonus for any years preceding the year of
                termination and other benefits and payments then due (including,
                without limitation, reimbursement of amounts under Section 3) to
                which the Executive is entitled hereunder. Except as provided in
                Section 4(h) below, the Executive and his beneficiaries, as
                appropriate, shall be entitled to no other compensation under
                this Agreement following, or as a result of, a termination under
                these circumstances. For purposes of this Agreement, the Company
                shall have "CAUSE" to terminate Executive's services hereunder
                in the event of any of the following acts or circumstances: (i)
                acts or omissions by the Executive which constitute intentional
                material misconduct or a knowing violation of a material written
                policy of the Company or any of its subsidiaries; (ii) the
                Executive personally receiving a benefit in money, property or
                services from the Company or any of its subsidiaries or from
                another person dealing with the Company or any of its
                subsidiaries, in material violation of applicable law or written
                Company policy; (iii) willful destruction by Executive of
                property of the Company or a subsidiary having a material value
                to the Company or such subsidiary; (iv) fraud, embezzlement or
                theft from the company, or comparable dishonest activity
                committed by Executive against the Company, or comparable
                dishonest activity committed by Executive which might otherwise
                have a material detrimental effect on the Company; (v)
                Executive's conviction of or entering a plea of guilty or nolo
                contenders to any crime constituting a felony involving fraud,
                embezzlement or moral turpitude (excluding acts involving a de
                minimis dollar value and not related to the Company or a
                subsidiary, provided that such acts do not otherwise have a
                material detrimental effect on the Company); (vi) Executive's
                gross failure to discharge Executive's duties (other than due to
                physical or mental illness) commensurate with Executive's title
                and function or Executive's failure to comply with the lawful
                directions of the Board of Directors of Parent, or Executive's
                breach of any other provision of this Agreement in any material
                respect, in any such case that is not cured within thirty (30)
                days after Executive has received written notice thereof from
                such Board of Directors; or (vii) a willful and knowing material
                misrepresentation to the Board of Directors of Parent.

        (d)     Termination by the Executive Without Good Reason. The Executive
                may terminate his employment hereunder for other than Good
                Reason (as defined

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                below), provided that Executive first gives the Company a
                written notice of termination at least fifteen (15) calendar
                days prior to the effective date of any such termination. In the
                event the Executive terminates his employment for other than
                Good Reason, the Company shall pay to the Executive his then
                current accrued and unpaid Base Salary and accrued and unpaid
                bonus for any year preceding the year of termination and other
                benefits and payments then due (including, without limitation,
                reimbursement of amounts under Section 3) to which the Executive
                is entitled hereunder. Except as provided in Section 4(h) below,
                the Executive and his beneficiaries, shall be entitled to no
                other compensation under this Agreement following, or as a
                result of, a termination under these circumstances.

        (e)     Good Reason. For purpose of this Agreement, "GOOD REASON" means,
                other than with the Executive's consent in writing that such
                event or circumstance will not constitute Good Reason, the
                occurrence of any of the following: (i) the Company reduces
                Executive's Base Salary; (ii) with respect to the Executive, the
                Company discontinues any Bonus Plan in which Executive
                participates without immediately replacing such Bonus Plan with
                a plan that is the substantial economic equivalent of such Bonus
                Plan, or a successor to the Company fails or refuses to assume
                the obligations of the Company under such Bonus Plan or under a
                plan that is the substantial economic equivalent of such Bonus
                Plan; (iii) the Company requires Executive to change the
                location of Executive's principal office, so that Executive will
                be based at a location more than twenty (20) miles from the
                location of Executive's principal office as of the Effective
                Date; (iv) the Company reduces Executive's responsibilities in
                any material respect or directs Executive to report to a person
                of lower rank or responsibilities than the person(s) to whom
                Executive reports as specified in this Agreement; (v) a
                successor to the Company fails or refuses to assume the
                obligations of the Company under this Agreement; (vi) the
                removal of Executive from the position the Executive holds with
                the Company pursuant to this Agreement; (vii) any material
                decrease or other material adverse change in the duties,
                responsibilities or authority of Executive below his duties and
                responsibilities contemplated in Section 2; or (viii) any other
                material breach by the Company of this Agreement, and which,
                with respect to clauses (v), (vii) or (viii) hereof, continues
                uncured for thirty (30) days after receipt by the Company of
                written notice of breach from the Executive.

        (f)     Termination by the Company Without Cause. The Company may
                terminate the Executive's services hereunder without Cause at
                any time upon written notice to the Executive; provided that the
                Company first gives Executive a written notice of termination at
                least fifteen (15) calendar days prior to the effective date of
                any such termination. In such event, the Executive's services
                shall terminate on the effective date specified in such notice.
                In the event the Executive's services hereunder are terminated
                by the Company without Cause, the Company shall pay to the
                Executive (i) his current accrued and unpaid Base Salary,
                accrued and unpaid bonus for any years prior to the year of
                termination and other benefits and payments then due

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                (including, without limitation, reimbursement of amounts under
                Section 3) to which the Executive is then entitled hereunder and
                (ii) one additional year of Base Salary and Executive's target
                bonus for the current year (subject to the Executive's
                compliance with the terms of Section 5 and Section 6). In
                addition, for two (2) years following the date of termination,
                the Company shall continue to afford to the Executive the group
                medical, dental, vision, long-term disability and life insurance
                and automobile allowance benefits specified in Section 3(c)
                above. Except as provided in Section 4(h) below, the Executive
                and his beneficiaries, shall be entitled to no other
                compensation under this Agreement following, or as a result of,
                a termination under these circumstances. Executive shall have no
                duty to seek to mitigate the above severance benefits in the
                event of termination hereunder without Cause, and any
                compensation derived by Executive from alternative employment or
                otherwise shall not reduce the Company's obligations hereunder.

        (g)     Termination by the Executive for Good Reason. The Executive may
                terminate his employment hereunder for Good Reason. In the event
                the Executive terminates his employment for Good Reason, the
                Company shall pay to the Executive (1) his current accrued and
                unpaid Base Salary, accrued and unpaid bonus for any years prior
                to the year of termination and other benefits and payments then
                due (including, without limitation, reimbursement of amounts
                under Section 3) to which the Executive is then entitled
                hereunder and (ii) one additional year of Base Salary and
                Executive's target bonus for the current year (subject to the
                Executive's compliance with the terms of Section 5 and Section
                6). In addition, for two (2) years following the date of
                termination, the Company shall continue to afford to the
                Executive the group medical, dental, vision, long-term
                disability and life insurance and automobile allowance benefits
                specified in Section 3(c) above. Except as provided in Section
                4(h) below, the Executive and his beneficiaries, as appropriate,
                shall be entitled to no other compensation under this Agreement
                following, or as a result of, a termination under these
                circumstances. Executive shall have no duty to seek to mitigate
                the above severance benefits in the event of termination
                hereunder with Good Reason, and any compensation derived by
                Executive from alternative employment or otherwise shall not
                reduce the Company's obligations hereunder.

        (h)     Stock Options. Parent confirms the grant to Executive of stock
                options (the "OPTIONS") to acquire 500,000 shares of Parent's
                Class B Common Stock, such stock options to have a strike price
                of $11.30 per share (the closing sale price of such shares on
                the NASDAQ Stock Market on the Effective Date). The parties
                agree that the Options will vest in equal monthly installments
                over a period of three years commencing on the Option Effective
                Date, but will fully accelerate and become immediately
                exercisable in the event of a change of control of Parent (as
                defined in the stock option agreement evidencing the Options).
                Further, in the event of the termination by the Company of
                Executive's employment without Cause or Executive's termination
                of his employment for Good Reason, Parent agrees that the
                Options will fully accelerate and become immediately
                exercisable. In the

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                event of the termination of Executive's employment for any other
                reason, all Options will terminate upon the effective date of
                such termination. Except as expressly set forth in this
                paragraph, the other terms and conditions of the Options will be
                as set forth in Parent's standard form of stock option
                agreement, which will be prepared and executed promptly
                following the execution and delivery of this Agreement.

5.      Confidential and Proprietary Information.

        (a)     The parties agree and acknowledge that during the course of the
                Executive's employment, the Executive has been 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 subsidiaries (which includes but
                is not limited to all of its business units, divisions and
                subsidiaries) and its business, equipment, products and
                employees, including, without limitation: the identities of the
                Company's and its subsidiaries' distributors and customers and
                potential distributors and customers (hereinafter referred to
                collectively as "DISTRIBUTORS"), including, without limitation,
                the identity of Distributors the Executive cultivates or
                maintains while providing services at the Company or any of its
                subsidiaries using the Company's, or any of its subsidiaries'
                products, name and infrastructure, and the identities of contact
                persons with respect to those Distributors; the particular
                preferences, likes, dislikes and needs of 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 subsidiaries' business methods, practices, strategies,
                forecasts, pricing, and marketing techniques; the identities of
                the Company's and its subsidiaries' licensors, vendors and other
                suppliers and the identities of the Company's and its
                subsidiaries' contact persons at such licensors, vendors and
                other suppliers; the identities of the Company's and its
                subsidiaries' 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 subsidiaries and its business, operations,
                financial condition, results of operations and prospects. The
                Executive expressly agrees to use such trade secrets and
                confidential information only for purposes of carrying out his
                duties for the Company and its subsidiaries, and not for any
                other purpose, including, without limitation, not in any way or
                for any purpose detrimental to the Company or any of its
                subsidiaries. The 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 and confidential information,
                and, except as required by law, the Executive shall not disclose
                such trade secrets and confidential information, directly or
                indirectly, to any other person or entity; provided that the
                obligations under this sentence will not be construed to
                restrict the Executive from calling on or otherwise maintaining
                a relationship with Distributors or suppliers of the Company or
                any of its subsidiaries during or after the

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                termination of the Executive's employment with the Company.
                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 the Executive, (ii) becomes available
                to the Executive available on a non-confidential basis from a
                source other than the Company or any of its subsidiaries.
                provided that such source is not 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 subsidiaries
                or any other person or entity or (iii) is approved for release
                by the Company or any of its subsidiaries or which the Company
                or any of its subsidiaries 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 the 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 subsidiaries
                are and shall remain the sole and exclusive property of the
                Company and its subsidiaries, as applicable. The 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
                subsidiaries and all such property (except for any items of
                personal property not owned by the Company or any of its
                subsidiaries), materials and information in his possession or
                under his custody or control upon the termination of his
                employment shall be immediately turned over to the Company and
                its subsidiaries, as applicable.

        (d)     All inventions, improvements, trade secrets, reports, manuals,
                computer programs, tapes and other ideas and materials developed
                or invented by the 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 subsidiaries which result from or are
                suggested by any work the Executive may do for the Company or
                any of its subsidiaries or which result from use of the
                Company's or any of its subsidiaries' premises or property
                (collectively, the "DEVELOPMENTS") SHALL be the sole and
                exclusive property the Company and its subsidiaries, as
                applicable. The Executive assigns and transfers to the Company
                his entire right and interest in any such Development, and the
                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 subsidiaries may reasonably request. This paragraph does not
                apply to any inventions which the Executive made prior to his
                employment by the Company (all of which, if any exist, are
                listed on Exhibit A, which the Executive has attached hereto),
                or to any inventions that the Executive develops entirely on his
                own time without using any of the Company's or its
                subsidiaries' equipment, suppliers, facilities or confidential

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                  information and which do not relate to the Company's and its
                  subsidiaries' business, anticipated research and development,
                  or the work the Executive performs for the Company.

        (d)     The provisions of this Section 5 shall survive any termination
                of this Agreement and termination of the Executive's employment
                with the Company.

6.      No Solicitation of Distributors, Sales Representatives, Licensors or
        Employees; Noncompetition During the Term.

        (a)     During the Term and for a period of twelve (12) months
                thereafter, except pursuant to Executive's duties as an employee
                of the Company, the Executive shall not, directly or indirectly,
                call upon, solicit, divert, take away or accept, or attempt to
                call upon, solicit, divert, take away or accept, business of a
                type the same or similar to the business as conducted by the
                Company or any of its subsidiaries from any of the Distributors,
                sales representatives and personnel, licensors of the Company or
                any of its subsidiaries or similar entities or persons upon whom
                he called or whom he solicited or to whom he catered or with
                whom he became acquainted after entering the employ of the
                Company.

        (b)     The Executive acknowledges and agrees that he has gained and
                during the time of his employment with the Company, will gain,
                valuable information about the identity, qualifications and
                on-going performance of the employees of the Company and its
                subsidiaries. During the Term and for a period of twelve (12)
                months thereafter, except pursuant to Executive's duties as an
                employee of the Company, the Executive shall not directly or
                indirectly (i) hire, employ, offer employment to, or seek to
                hire, employ or offer employment to, any of the Company's or any
                of its subsidiaries' employees with whom he had contact prior to
                such termination of employment (or any such person who was an
                employee of the Company or any such subsidiary within three
                months preceding such activity by the Executive), (ii) solicit
                or encourage any such employee (or any such person who was an
                employee of the Company or any such subsidiary within three
                months preceding such activity by the Executive) to seek or
                accept employment with any other person or entity or (iii)
                disclose any information, except as required by law, about such
                employee (or any such person who was an employee of the Company
                or any such subsidiary within three months preceding such
                activity by the Executive) to any prospective employer.

        (c)     During the Term and for a period of twelve months thereafter,
                the Executive will not promote, participate, engage or have any
                other interest in any business which is competitive with the
                business of the Company or any of its subsidiaries, whether
                Executive is acting as owner, partner, stockholder, employee,
                broker, agent, principal, trustee, corporate officer, director,
                consultant or in any other capacity; provided, however, that
                this Agreement will not prevent Executive from holding for
                investment up to 3% of any class of stock or other securities
                of a publicly held company.

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7.      Injunctive Relief. The 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 6 are
        reasonable and necessary to protect the legitimate interests of the
        Company and its business and (c) agree that any violation of Section 5
        or 6 will result in irreparable injury to the Company and its
        subsidiaries, 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 subsidiaries for such a violation.
        Accordingly, the Executive agrees that if the Executive violates 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
        specific performance and injunctive relief, without posting bond or
        other security, and without the necessity of proving actual damages.

8.      Assignment; Successors and Assigns. The 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 the Executive's rights hereunder be subject to
        encumbrance of the claims of creditors. Any purported assignment,
        transfer, delegation, disposition or encumbrance in violation of this
        Section 8 shall be null and void and of no force or effect. Nothing in
        this Agreement shall prevent the consolidation or merger of the Company
        with or into any other entity, or the sale by the Company of all or any
        portion of its properties or assets, or the assignment by the Company of
        this Agreement and the performance of its obligations hereunder to any
        successor in interest or any affiliated entity, and the Executive hereby
        consents to any and all such assignments. Subject to the foregoing, this
        Agreement shall be binding upon and shall inure to the benefit of the
        parties and their respective heirs, legal representatives, successors,
        and permitted assigns, and, except as expressly provided herein, no
        other person or entity shall have any right, benefit or obligation under
        this Agreement as a third party beneficiary or otherwise.

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.

10.     Severability of Provisions. In the event that any provision or any
        portion thereof should ever be adjudicated by a court of competent
        jurisdiction to exceed the time or other limitations permitted by
        applicable law, as determined by such court in such action, then such
        provisions shall be deemed reformed to the maximum time or other
        limitations permitted by applicable law, the parties hereby
        acknowledging their desire that in such event such action be taken. In
        addition to the above, the provisions. of this Agreement are severable,
        and the invalidity or unenforceability of any provision or provisions of
        this Agreement or portions thereof shall not affect the validity or
        enforceability of any other provision, or portion of this Agreement,
        which shall remain in full force and effect as if executed with the
        unenforceable or invalid provision or portion thereof eliminated.
        Notwithstanding the foregoing, the parties hereto affirmatively
        represent, acknowledge and agree that it is their intention that this
        Agreement and each of its provisions are enforceable in accordance with
        their

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        terms and expressly agree not to challenge the validity or
        enforceability of this Agreement or any of its provisions, or portions
        or aspects thereof, in the future. The parties hereto are expressly
        relying upon this representation, acknowledgement and agreement in
        determining to enter into this Agreement.

11.     Warrant . As an inducement to the Company to enter into this Agreement,
        the 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. As an inducement to the Executive to
        enter into this Agreement, Company represents and warrants that the
        person signing this Agreement for the Company has been duly authorized
        to do so by all necessary corporate action and has the corporate power
        and authority to execute this Agreement on the Company's behalf. The
        execution and delivery of this Agreement and the consummation of the
        transactions contemplated have been duly and effectively authorized by
        all necessary corporate action of the Company.

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:

        If to the Company:

        (a)     Herbalife International, Inc.
                Herbalife International of America, Inc.
                1800 Century Park East
                Los Angeles, California 90067
                Attention: General Counsel
                Telecopy: (310) 557-3906

                with a copy to:

                Irell & Manella LLP
                333 South Hope Street, Suite 3300
                Los Angeles, California 90071
                Attention: Anthony T. Iler, Esq.
                Telecopy: (213) 229-0515

        (b)     if to the Executive, to:

                Francis X. Tirelli

                -------------------------------------

                -------------------------------------

                                      -11-
<PAGE>

        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.

13.     Cumulative Remedies. All rights and remedies of either party hereto are
        cumulative of each other and of every other right or remedy such party
        may otherwise have at law or in equity, and the exercise of one or more
        rights or remedies shall not prejudice or impair the concurrent or
        subsequent exercise of other rights or remedies.

14.     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.

15.     Entire Agreement. The terms of this Agreement are intended by the
        parties to be the final expression of their agreement with respect to
        the employment of the Executive by the Company and supersede, and may
        not be contradicted by, modified or supplemented by, evidence of any
        prior or contemporaneous agreement. The parties further intend that this
        Agreement shall constitute the complete and exclusive statements 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.

16.     Amendments; Waivers. This Agreement may not be modified, amended, or
        terminated except by an instrument in writing, approved by the Company
        and signed by the then existing parties hereto. As an exception to the
        foregoing, the parties acknowledge and agree that the Company shall have
        the right, in its sole discretion, to reduce the scope of any covenant
        or obligation of the Executive set forth in Sections 5 or 6 of this
        Agreement or any portion thereof, effective immediately upon receipt by
        the Executive of written notice thereof from 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.

17.     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.

18.     Indemnification. The Company shall, to the maximum extent permitted by
        law, indemnify, defend and hold Executive harmless against all expenses,
        claims and liabilities, including reasonable attorney's fees, judgments,
        fines, settlements and other amounts actually incurred in connection
        with any action or proceeding, arising by reason of Executive's
        employment by the Company other than to the extent that Executive has
        acted in a manner inconsistent with a written Company policy or

                                      -12-
<PAGE>

        otherwise which would entitle the Company to terminate the Executive for
        Cause hereunder. The Company shall also advance to Executive any
        reasonable expenses incurred in defending any such proceeding (subject
        to the qualifications in the immediately preceding sentence) to the
        maximum extent permitted by law.

19.     Suit to Enforce. In any action or proceeding to enforce any provision of
        this Agreement, the prevailing party shall be entitled, in addition to
        other remedies, to recover its or his attorney's fees and costs of suit.

                                      -13-
<PAGE>

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

                                    HERBALIFE INTERNATIONAL, INC.

                                    By: /S/   TIMOTHY GERRITY
                                        ---------------------------------------
                                        Name:
                                        Title:

                                    HERBALIFE INTERNATIONAL OF AMERICA, INC.

                                    By: /S/   TIMOTHY GERRITY
                                        ---------------------------------------
                                        Name:
                                        Title:

                                    EXECUTIVE

                                    /S/ FRANCIS X. TIRELLI
                                    -------------------------------------------
                                    Francis X. Tirelli<PAGE>
                                                                   EXHIBIT 10.38

ALL SECTIONS WITH TWO ASTERISKS ("**") REFLECT PORTIONS WHICH HAVE BEEN REDACTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION BY HERBALIFE
INTERNATIONAL, INC. AS PART OF A REQUEST FOR CONFIDENTIAL TREATMENT.

                    SEPARATION AGREEMENT AND GENERAL RELEASE

        This Separation Agreement and General Release is entered into by and
between Timothy Gerrity ("Gerrity"), and Herbalife International of America,
Inc./Herbalife International, Inc., and/or any affiliate, subsidiary, parent or
any other associated entity of Herbalife International of America,
Inc./Herbalife International, Inc. (collectively, "Herbalife" or "the Company")
effective this 31st day of December, 2001 ("Resignation Date"). Gerrity and
Herbalife are referred to herein collectively as "the Parties."

                                    RECITALS

        A. Gerrity was employed as an Herbalife Executive Vice President and its
Chief Financial Officer.

        B. Gerrity and Herbalife have agreed that Gerrity will resign his
employment with Herbalife effective December 31, 2001.

        C. Gerrity and Herbalife wish their relationship to end amicably.

        NOW, THEREFORE, Gerrity and Herbalife agree and promise as follows:

        A. Consideration.

        1. In consideration of Gerrity's promises as set forth below, Herbalife
will provide Gerrity with the following consideration and payments in accordance
with the terms set forth herein:

           a) Herbalife will pay Gerrity one million six hundred thousand
              dollars ($1,600,000.00) in four equal installments in the amount
              of four hundred thousand dollars ($400,000.00) each, to be paid on
              June 30, 2002, September 30, 2002, December 31, 2002, and December
              31, 2003. Each quarterly payment will be made less applicable
              withholdings.

                                        1

<PAGE>

           b) A full payout of Gerrity's SERP as of the Resignation Date
              ($1,010,219.00, less applicable withholdings, payable on January
              2, 2002);

           c) A payout of Gerrity's Deferred Compensation account, the value of
              which will be determined as of the Resignation Date. The payout of
              Gerrity's Deferred Compensation account will be in a lump sum
              ($3,052,169.53, payable on January 2, 2002, less applicable
              withholdings) in accordance with Gerrity's election under the
              Deferred Compensation Plan;

           d) A payout of Gerrity's accrued, unused vacation time as of the
              Resignation Date (which pursuant to Herbalife records totals
              932.84 hours) ($364,390.63, less applicable withholdings, payable
              on January 2, 2002); and,

           e) The cost of 18 months of COBRA health, dental and vision coverage
              for Gerrity at the rate currently in effect, grossed up, including
              taxes computed at the highest marginal federal and state income
              tax rates applied to the amount of this benefit, but without
              further tax "gross up" on the amount of this benefit ($17,052.84,
              payable in a lump sum on January 2, 2002);

           f) All amounts under Paragraph 1, sub-paragraphs (b), (c), (d) and
              (e) herein due on January 2, 2002, may be paid as an aggregate
              sum. All such payments will be made less applicable withholdings,
              where appropriate;

           g) Unless otherwise set forth in this Agreement, Gerrity's vested
              Stock Options will be exercisable in accordance with Herbalife's
              Stock Option Plan, and applicable law. Gerrity and the Company
              represent

                                       2

<PAGE>

              and agree that the number and strike price of vested and unvested
              stock options Gerrity holds are currently set forth in the
              attached schedule, which is made a part of this Agreement as
              Exhibit "A." Notwithstanding the foregoing, the parties agree as
              follows:

                  (i)   Vested Options. The parties acknowledge that, pursuant
                        to the existing terms of Herbalife's stock option plan
                        and the stock option agreements between Gerrity and
                        Herbalife (collectively, the "Stock Option Materials"),
                        Gerrity is permitted to exercise stock options vested as
                        of the date hereof (the "Vested Options") not later than
                        90 days following the date hereof, subject to the
                        additional requirements of the Stock Option Materials.
                        Nothing in this Agreement amends or modifies such
                        provision(s).

                  (ii)  Unvested Options. Herbalife agrees that stock options
                        held by Gerrity that are not vested as of the date
                        hereof ("Unvested Options") shall continue to be
                        outstanding through and including December 31, 2002 (the
                        "Option Termination Date").**

                                        3

<PAGE>

                        Any tax liability resulting from any transaction or
                        occurrence described in this Paragraph 1(f)(i) and (ii),
                        will be borne by Gerrity.

        2. Gerrity will repay all of his outstanding loan obligations to
Herbalife, if any exist, on the Resignation Date -- which repayment is a
condition precedent to Herbalife's obligation to make any payment to Gerrity
under this Agreement.

        3. In partial consideration of Herbalife's covenants in this Agreement,
Gerrity hereby sells, conveys, transfers and assigns, effective as of the
Resignation Date, to Herbalife all of his right, title and interest in and to
all direct and indirect interests held by Gerrity (collectively, the "Gerrity
HOJ Interest") in the capital stock and other securities of Herbalife of Japan
K.K. ("HOJ"), including, without limitation, such interests held by Gerrity (i)
pursuant to the Agreement Concerning Share Allocation Plan for Specific
Directors of Herbalife of Japan K.K. dated December 1996, and (ii) through the
Herbalife of Japan K.K. Directors Share Allocation Plan. In connection with the
foregoing sale, conveyance, transfer and assignment, Gerrity hereby grants to
Herbalife a Power of Attorney to execute any and all instruments necessary to
effectuate the transfer of the Gerrity HOJ Interest. In addition to the
consideration set forth in Paragraph 1 herein, Herbalife will pay Gerrity on or
before January 2, 2002 the sum of four hundred and thirty-one thousand two
hundred and fifty dollars ($431,250.00) for Gerrity's transfer of all interests
in the Gerrity HOJ Interest to Herbalife as set forth herein ("HOJ Payment").
Gerrity hereby relinquishes and waives any and all claims with respect to any

                                        4

<PAGE>

and all interests, direct or indirect, in the capital stock and other securities
of HOJ, including, without limitation, the Gerrity HOJ Interest. Gerrity
represents and warrants that the Gerrity HOJ Interest includes all direct and
indirect interests held by Gerrity in HOJ at any time, including upon the
original formation of the Directors Share Allocation Plan in 1996, and that no
interest therein has been conveyed, to any other person (including, without
limitation, any spouse or former spouse) or entity in any manner, whether by
contract, operation of law or otherwise, and Gerrity agrees to indemnify
Herbalife, HOJ and their respective officers, directors, affiliates and related
persons and entities and hold them harmless from and against all damages, costs,
expenses and losses (including, without limitation, attorneys' fees) incurred by
any of them arising from any claim asserted by any person or entity claiming to
own an interest in the Gerrity HOJ Interest. Gerrity makes no other
representations or warranties regarding this conveyance. Any tax liability
resulting from any transaction or occurrence described in this paragraph 3, will
be borne by Gerrity.

        4. Gerrity agrees that he voluntarily resigned his employment with
Herbalife, and that a press release has been or will be issued so stating.
Gerrity also agrees that he will voluntarily resign all other directorships with
Herbalife, if any exist. Gerrity further agrees that he will not apply for or
seek to enter into any employment with, or act as a distributor for, or engage
in any other business or consulting relationship with Herbalife. He further
acknowledges and agrees that Herbalife has no obligation to enter into any such
relationship, or any other business relationship with him. Gerrity agrees that
he will fully cooperate with Herbalife in winding up his pending work and assist
in an orderly transfer of his work to others, and that he will be available to
respond to inquiries about his work. Gerrity further agrees, on behalf of
himself and his legal successors and assigns, to execute such additional
documents and instruments and to take such additional actions as Herbalife may
request from time to time after the date hereof, in order to

                                        5

<PAGE>

complete, effectuate, perfect and better evidence the agreements of the parties
set forth in this Agreement. Gerrity will also reasonably cooperate with
Herbalife in the defense of any legal, administrative or other legal action
brought by any third party against Herbalife after his departure, in which
event, Herbalife will pay the reasonable cost of legal representation for
Gerrity in connection therewith, except that Herbalife will be relieved of any
such obligation in the event the subject legal, administrative, or other action
involves any allegation of criminal or other improper conduct on the part of
Gerrity.

        5. Gerrity's entitlement to the consideration described herein is
expressly contingent upon his execution and delivery of this Agreement to
Herbalife. The consideration set forth in this Agreement fully satisfies and
extinguishes any and all rights Gerrity may have pursuant to any other Herbalife
plan, agreement or policy, including, but not limited to all agreements, plans,
policies and other arrangements provided by Herbalife or any of its subsidiaries
or trusts sponsored, established or maintained by any of such entities,
including, without limitation, the Employment Agreement dated August 20, 2000,
the Senior Executive Change of Control Plan, the 1994 Performance-Based Annual
Incentive Compensation Plan, the 1992 Executive Incentive Compensation Plan, the
1991 Stock Option Plan, the Management Deferred Compensation Plan and related
trust(s), the Senior Executive Compensation Plan and related trust(s), the
Supplemental Executive Retirement Plan and related trust(s), the Executive
Medical Plan and all other health insurance and benefit plans, the Executive
Long-Term Disability Plan, the Executive Life Insurance Plan, Herbalife's
expense reimbursement plans and policies, and Herbalife's vacation plan. This
paragraph does not affect Gerrity's right to purchase COBRA insurance as set
forth in Paragraph 1(e).

        B. Confidentiality and Non-Disparagement.

        6. (a) Gerrity agrees not to disclose or misappropriate any and all
trade secrets or confidential or proprietary information of Herbalife
(collectively "Protected

                                       6

<PAGE>
Information"). Protected Information means all information pertaining in any
manner to the business of Herbalife and its employees, distributors, suppliers,
vendors, customers, manufacturers, sales representatives, consultants, lawyers,
accountants, and business associates. This definition includes, but is not
limited to: (i) **; (ii) information about costs, profits, markets, sales,
financial and marketing data and bids; (iii) plans for business, marketing,
future development and new product concepts; (iv) employee personnel files and
information about employee compensation and benefits; (v) identity of and other
business information relating to Herbalife's customers and/or distributors,
past, present or future, together with each such customer's or distributor's
habits or needs; (vi) identity of and other business information relating to
Herbalife's past, present or future vendors, manufacturers and suppliers; and
(vii) design drawings and computer programs.

                (b) Gerrity acknowledges and agrees that use or disclosure of
Protected Information in breach of this Agreement would be difficult to prove.
Therefore, to forestall such disclosure, use, and breach, Gerrity agrees as
follows:

                (i) for a period of one year after his resignation, Gerrity
          shall not, directly or indirectly divert or attempt to divert from
          Herbalife any business of any kind in which it is engaged, unless
          Gerrity can show that any action taken in contravention of this
          subsection was done without the use in any way of any Protected
          Information;

                (ii) for a period of one year after his resignation, Gerrity
          shall not, directly or indirectly, solicit for any business purpose
          any distributor or vendor of Herbalife, unless Gerrity can show that
          any action taken in contravention of this subsection was done without
          the use in any way of any Protected Information;

                (iii) for a period of one year after his resignation, Gerrity
          shall not, directly or indirectly, attempt to solicit, induce, or
          persuade in any manner any of

                                       7

<PAGE>

          Herbalife's officers, directors, employees, agents, suppliers,
          distributors, and/or independent contractors or sub-contractors to
          discontinue any relationship with Herbalife.

                (c) In the event of an actual or threatened breach of the
obligations set forth in Paragraph 6(a)-(b), the parties acknowledge that there
may be damages for which monetary compensation will not suffice and,
accordingly, the parties shall be entitled to injunctive and other equitable
relief in addition to any other rights or remedies they may possess or be
entitled to pursue.

        7. Gerrity agrees to return to Herbalife by the Resignation Date, any
and all documents, books, manuals, drawings, lists, writings, computer records
and other tangible Company property in his possession or control, including, but
not limited to the Herbalife pass key in his possession (including all copies
thereof) which he procured during or in connection with his employment with
Herbalife. Gerrity acknowledges that all such material is the property of
Herbalife solely and that Gerrity has no right, title, or interest in or to such
materials. Gerrity further acknowledges that his conduct pursuant to this
paragraph is material consideration for the payment referenced above.

        8. For and in consideration for Herbalife's commitments, Gerrity agrees
and promises not to disclose the substance, contents, amounts or terms of this
Agreement, except to Gerrity's legal, tax or financial advisors, or if compelled
to do so by court order or federal or state tax authorities or other agencies,
in which event Gerrity must immediately notify Herbalife's legal department to
allow it to assert Herbalife's rights under the law or this Agreement. Gerrity's
tax and financial advisors shall not be privy to any part or terms of this
Agreement other than financial information. In the event Gerrity reveals any
terms of this Agreement as permitted in this Paragraph 8, said person or persons
to whom such information is disclosed shall be instructed and must agree that
this is a private Agreement and that the terms of this Agreement may not be
revealed to

                                        8

<PAGE>

any other person for any reason whatsoever. Gerrity acknowledges that his
promises of confidentiality, as set forth herein, are material and essential
consideration for Herbalife's promises and agreements herein.

        9. Gerrity agrees not to make any personal or business disparagement of
any present, former or future Herbalife officer, director, employee or
distributor. Gerrity also agrees not to disparage Herbalife or any past, present
or future Herbalife products. This provision prohibits Gerrity from, among other
things, saying anything negative or critical regarding Herbalife or the
foregoing individuals (as individuals or in any other capacity) or products.

        10. **

                                        9

<PAGE>

        11. To the extent Gerrity violates the terms of paragraphs 6, 7, 8, 9 or
10 herein, it will be impracticable for Herbalife to prove its monetary damages.
For that reason, in addition to any other legal or equitable remedies to which
Herbalife would be entitled (including money damages), in the event of Gerrity's
breach of the terms of paragraphs 6, 7, 8, 9 or 10, Herbalife will be entitled
to liquidated damages against Gerrity in the amount of one million dollars
($1,000,000.00).

        12. Nothing in this Agreement shall prevent Gerrity from: (a) disclosing
information or documents in response to court order. In the event Gerrity is
subject to any such court order, Gerrity shall immediately so inform Herbalife's
legal department, and if applicable, those individuals as enumerated in
Paragraph 8 who are involved, so as to allow Herbalife and such individuals to
assert its, his or her rights under law or this Agreement; (b) responding
truthfully to any inquiry initiated by a government agency or entity; (c)
disclosing information in proceedings to enforce the terms of this Agreement; or
(d) testifying truthfully or providing truthful information under oath in any
legal, administrative or other proceeding. Gerrity, however, is prohibited from
instituting, encouraging or cooperating in any act or omission which gives rise
to any request for disclosure described in this Paragraph 12. It will not be a
violation of this Agreement for

                                       10

<PAGE>
either party to reveal the existence of the confidentiality and
non-disparagement provisions contained herein.

        13. Herbalife agrees not to disparage Gerrity, provided, however, that
this Paragraph 13 may be enforced against Herbalife only as to statements made
by Herbalife employees who are Executive Vice President level and above.
Additionally, nothing in this paragraph 13 shall prohibit Herbalife from
responding to court process regarding Gerrity, nor from giving truthful
testimony or information in any proceeding or in response to lawful subpoena or
inquiry by any agency or court. Neither party shall be prohibited from rebutting
disparagement made or instigated by the other, and any such rebuttal will not be
a violation of the non-disparagement clauses herein at Paragraphs 9 and 13.
Neither Party shall make any representation regarding any aspect of Gerrity's
employment, including, but not limited to, his job performance. Notwithstanding
the foregoing, either Party may state Gerrity's duration of employment and job
titles at Herbalife.

        C. Further Agreements and Representations.

        14. Gerrity represents and warrants that he has not filed or initiated
any claim, action, charge, complaint or suit of any kind against Herbalife or
any Employer Released Party (as that term is defined in Paragraph 24 herein),
and Gerrity further agrees that he will not file or initiate any claim, action,
charge, complaint or suit of any kind against any Employer Released Party.
Gerrity agrees that he will not assist, encourage, or cooperate with any other
person or entity in instituting, prosecuting or obtaining any subpoena, document
request, inquiry or investigation regarding Herbalife, or in making or asserting
any claim or action against Herbalife, and Gerrity further agrees that he will
not assist, encourage, permit or authorize any other person or entity to
institute a claim or action on his behalf or as part of a class action against
Herbalife, or any Employer Released Party.

                                       11

<PAGE>

        15. Any dispute regarding any aspect of this Agreement ("arbitrable
dispute"), shall be submitted to arbitration in Los Angeles, California, before
an experienced arbitrator licensed to practice law in California and selected in
accordance with the rules of the American Arbitration Association. Except as set
forth in Paragraph 6(c) herein, this shall be the exclusive remedy for any such
claim or dispute, and Herbalife shall pay all administrative and arbitrator's
costs and fees associated with any such arbitration proceeding. Any such
arbitration shall be conducted in accordance with California law regarding
arbitration of employment claims. All substantive and procedural law will apply
in the arbitration as if the parties were in Court. The arbitrator will provide
a written decision, sufficiently detailed to be reviewed by a Court of law. Each
party will bear its own attorneys' fees in arbitration. This provision is an
explicit waiver of any, right to a trial by jury. Should any party to this
Agreement hereafter institute any legal action or administrative proceeding
against the other with respect to any claim waived by this Agreement or pursue
any arbitrable dispute by any method other than said arbitration (except as set
forth in paragraph 6(c) herein), the responding party shall be entitled to
recover from the initiating party all damages, costs, expenses and attorneys'
fees incurred as a result of such action.

        16. It is understood and agreed that this is a compromise settlement of
potential disputed claims, and the furnishing of the consideration for this
Agreement shall not be deemed or construed as an admission of liability,
responsibility or wrongdoing by Herbalife or Gerrity for any purpose, all of
which liability, responsibility or wrongdoing are hereby denied. It is further
agreed and understood that this Agreement is being entered into solely for the
purpose of avoiding expense and inconvenience.

        17. This Agreement shall be governed by and construed in accordance with
the laws of the State of California.

                                       12

<PAGE>

        18. Should any provision of this Agreement or any portion thereof, be
declared or be determined by any court to be illegal or invalid, the validity of
the remaining parts, terms or provisions shall not be affected thereby and said
illegal or invalid part, term or provision shall be automatically conformed to
the law, if possible, or deemed not to be part of the Agreement.

        19. The Parties to this Agreement acknowledge that they have entered
into this Agreement voluntarily, without coercion and based upon their judgment
and not in reliance upon any representation or promises made by the other party
other than those contained therein. This Agreement constitutes the entire
agreement among the Parties regarding the subject matter hereof and shall be
deemed a fully integrated agreement, which recites the sole consideration for
the promises exchanged herein. The Parties have read this Agreement, and they
are fully aware of its contents and of its legal effect and acknowledge that all
promises, waivers and agreements herein are knowing and voluntary. The Parties
also acknowledge that they have had the opportunity to consult and have
consulted with counsel with regard to that Agreement.

        20. If any action is brought to enforce or interpret any provision of
the Agreement or the rights or obligations of any party hereunder, to the extent
not prohibited by California law, the prevailing party shall be entitled to
recover, as an element of such party's costs of suit, and not as damages, all
attorneys', accountants and other expert fees and costs incurred or sustained by
such prevailing party in connection with such action, including, without
limitation, legal fees and costs. The "prevailing party" shall be defined as the
party who is entitled to recover her/its costs of suit.

        21. The Parties hereby agree to make, execute and deliver such other
instruments or documents, and to do or cause to be done such further or
additional acts, as reasonably may be necessary to effectuate the purposes or to
implement the terms of

                                       13

<PAGE>

this Agreement. This Agreement may not be modified or cancelled, nor may any
provision with respect to it be waived, except in a writing signed by the
Parties.

        22. This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective heirs, legal representatives, successors and
assigns.

        23. Notwithstanding the provisions of Paragraph 11 herein, and in
addition thereto, if Gerrity materially breaches this Agreement, he will be
entitled to no further consideration under the Agreement and will return to
Herbalife all consideration paid to him under the Agreement prior to the breach.

        24. (a) For and in consideration of the promises and commitments set
forth herein, Gerrity on behalf of himself, his descendants, ancestors,
dependents, heirs, executors, administrators, assigns and successors, covenants
not to sue, and fully and forever releases and discharges Herbalife and its and
their parent(s), affiliates, successors, divisions, assigns, distributors,
subsidiaries, and the estate of Mark Hughes and/or the Mark Hughes Family Trust,
together with its or their past and present directors, officers, agents,
representatives, consultants, insurers, attorneys, current and previous
employees, and stockholders (collectively, "Employer Released Parties"), from
all claims, liabilities, demands, rights, liens, agreements, contracts,
covenants, actions, suits, obligations, debts, costs, expenses, attorneys' fees,
damages, judgments, orders, liabilities and causes of action known or unknown,
which he may have or claim to have against the Employer Released Parties prior
to the date of execution of this Release Agreement, including but not limited to
any and all rights and claims arising out of Gerrity's employment or termination
of employment with Herbalife, or any other transactions, occurrences, acts or
omissions or any loss, damage or injury whatsoever, known or unknown, suspected
or unsuspected, resulting from any act or omission by or on the part of the
Employer

                                       14

<PAGE>

Released Parties, committed or omitted prior to the date of the Agreement,
including, but not limited to, any and all rights and claims whether based on
tort, contract (implied or express) or any federal, state or local law, statute
or regulation (collectively, the "Released Claims"). By way of example, and not
in limitation of the foregoing, the Released Claims shall include any claims
based upon or related to the Civil Rights Act of 1964, Title VII, as amended,
the California Fair Employment and Housing Act, the Americans with Disabilities
Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act,
the California Family Rights Act, the California State or United States
Constitutions, the California Labor, and Civil or Business and Professions
Codes, any and all tort claims, including, but not limited to, negligence,
retaliation, violation of public policy, intentional or negligent infliction of
emotional distress, discrimination, harassment, wrongful termination, invasion
of privacy or defamation. Gerrity also explicitly acknowledges and agrees that
this Agreement releases and waives any rights or claims he may have pursuant to
any other Herbalife plan, agreement or policy, including, but not limited to,
all agreements, plans, policies and other arrangements provided by Herbalife or
any of its subsidiaries or trusts sponsored, established or maintained by any of
such entities, including, without limitation, the Employment Agreement dated
August 20, 2000, the Senior Executive Change of Control Plan, the 1994
Performance-Based Annual Incentive Compensation Plan, the 1992 Executive
Incentive Compensation Plan, the 1991 Stock Option Plan, the Management Deferred
Compensation Plan and related trust(s), the Senior Executive Compensation Plan
and related trust(s), the Supplemental Executive Retirement Plan and related
trust(s), the Executive Medical Plan and all other health insurance and benefit
plans, the Executive Long-Term Disability Plan, the Executive Life Insurance
Plan, Herbalife's expense reimbursement plans and policies, and Herbalife's
vacation plan.

                                       15

<PAGE>

                (b) For and in consideration of Gerrity's commitments and
promises, Herbalife, on behalf of itself, its parent and subsidiary
corporations, and its affiliates, shareholders, officers, employees, successors
and assigns (collectively, Herbalife), covenants not to sue as to any claims
released by this Agreement and fully and forever releases and discharges Gerrity
and his heirs, successors, assigns, representatives and estate (collectively,
the "Gerrity Releasees"), from any and all claims, liabilities, demands, rights,
liens, agreements, contracts, covenants, actions, suits, obligations, debts,
costs, expenses, attorneys' fees, damages, judgments, orders, liabilities, and
causes of action, known or unknown, which Herbalife may have or claim to have
against the Gerrity Releasees prior to the date of the execution of this
Agreement, including but not limited to any and all rights and claims arising
out of Gerrity's employment or termination of employment with Herbalife, or any
other transactions, occurrences, acts or omissions or any loss, damage or injury
whatsoever, known or unknown; suspected or unsuspected, resulting from any act
or omission by or on the part of the Gerrity Releasees, committed or omitted
prior to the date of the Agreement, including, but not limited to, any and all
rights and claims whether based on tort, contract (implied or express) or any
federal, state or local law, statute or regulation (collectively, the "Released
Claims").

        25. Except for the obligations created by or arising from this
Agreement, the Parties understand that this is a full and final release covering
all unknown and unanticipated injuries, debts, claims, or damages to either
party, which may have arisen or may arise in connection with any act or omission
by either party released herein prior to the date of execution of this
Agreement. For that reason, the parties waive any and all rights or benefits
which they may have pursuant to Section 1542 of the California Civil Code, which
provides as follows:

                                       16

<PAGE>

        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.

        26. Age Discrimination Claims. Gerrity understands and agrees that: (i)
certain terms of this Agreement constitute a waiver of any rights or claims he
might have under the Age Discrimination in Employment Act, as amended by the
Older Workers Benefit Protection Act, 29 U.S.C. Sections 612-634; (ii) he has
received consideration beyond that to which he was previously entitled; (iii) he
has been advised to consult with an attorney regarding the terms of this
Agreement which constitute a waiver of Age Discrimination in Employment Act
claims; and (iv) he has been offered the opportunity to evaluate the terms of
his waiver of claims under the Age Discrimination in Employment Act for not less
than twenty-one (21) days. Gerrity may revoke his waiver of Age Discrimination
in Employment Act claims (by written notice to Herbalife's counsel) for a period
of seven (7) days after his execution of this Agreement, and his waiver of such
claims shall become enforceable only upon the expiration of this revocation
period without prior revocation by Gerrity. The terms of this paragraph 26 are
applicable only to Gerrity's waiver of Age Discrimination in Employment Act
claims. Revocation of Gerrity's waiver of such claims pursuant to this paragraph
26 will not revoke Gerrity's other promises, releases, waivers and agreements
herein, including, but not limited to, all releases and waivers contained in
paragraphs 24(a) and 25 herein, all of

                                       17

<PAGE>

which will remain in full force and effect. In the event Gerrity revokes his
waiver of Age Discrimination in Employment Act claims, he will not be entitled
to any further consideration under this Agreement as of the date of revocation.
Consideration paid to Gerrity prior to any such revocation, will serve as good
and valuable consideration for Gerrity's other promises, waivers and releases
contained herein.

                                       18

<PAGE>

        27. This Agreement shall be construed as a whole, according to its fair
meaning, and not in favor of or against any party. By way of example and not in
limitation, this Agreement shall not be construed in favor of the party
receiving a benefit nor against the party responsible for any particular
language in this Agreement.

DATED: Dec 26 2001                          By: /s/ TIMOTHY GERRITY
     ----------------------------               --------------------------------
                                                    Timothy Gerrity

DATED: 12-26-01                                 HERBALIFE INTERNATIONAL OF
     ----------------------------               AMERICA, INC./HERBALIFE
                                                INTERNATIONAL

                                             By: /s/ FRANCIS X. TIRELLI
                                                 -------------------------------

                                       19

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