Document:

EXHIBIT 10.32

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “AGREEMENT”), dated as of October 6, 2003 is made and entered into by
BRETT R. CHAPMAN (“EXECUTIVE”) and HERBALIFE INTERNATIONAL OF AMERICA, INC., a
California corporation (“COMPANY”). The parties to this Agreement agree as
follows:

 

1.

Employment Term. The Company
shall employ Executive and Executive shall continue in the employ of the
Company for the three-year period starting on October 6, 2003 or an earlier
date if Executive so chooses (the “Employment Term”).

 

2.

Duties. Executive shall serve
in the Los Angeles, California area as General Counsel of the Company, with all
of the authority, duties, and responsibilities commensurate with such position.
Executive shall report only to the Chief Executive Officer or Chairman of the
Company.

 

3.

Compensation and Related
Matters.

 

(a)

Salary. Executive shall
receive a salary at the per annum rate of not less than Four Hundred
Thirty-Five Thousand Dollars ($435,000), payable in accordance with the Company’s
payroll practices for Senior Executives (as defined in Section 3(b) below) and
subject to annual performance review.

 

(b)

Employee Benefits. Executive
and Executive’s qualified dependents shall be entitled to participate in or
receive benefits under each benefit plan or arrangement made available by the
Company to its most senior executives (including its Chief Operating Officer
but specifically excluding its Chief Executive Officer (“Senior Executives”)
including, without limitation, those relating to group medical, dental, vision,
long-term disability, D&O, accidental death and dismemberment, and life
insurance, subject to and on a basis consistent with the terms, conditions and
overall administration of such plans and subject to the Company’s right to
modify, amend or terminate any such plan or arrangement with or without prior
notice. Executive shall become eligible to participate in the Company’s 401K
program on January 1, 2004, and Executive shall be eligible to participate in
the Company’s Deferred Compensation program on October 1, 2003 if Executive
commences work on or prior to that date. If Executive commences work after
October 1, 2003, Executive shall be eligible to participate in the Company’s
Deferred Compensation program on January 1, 2004.

 

(c)

Bonus. Executive will be
eligible for a target bonus, but any bonus will be paid following the
completion of the relevant calendar year at such time bonuses are paid to the
Company’s other Senior Executives, and no bonus shall be paid if Executive is
no longer employed by the Company, unless Executive’s employment terminates as
a result of the expiration of the Employment Term, the Executive is terminated
without Cause, or the Executive resigns for Good Reason which will be deemed to
have occurred if Executive terminates his employment because of (i) a material
imposition of Executive’s duties as General Counsel (ii) the imposition of a
requirement that Executive report to a person other than the Chief Executive
Officer or Chairman of the Company, (iii) the breach by the Company in any
respect of any of its obligations under this Agreement, and, in any such case
(but only if correction or

 

1

 

cure is possible), the
failure by the Company to correct or cure the circumstance or breach on which such
resignation is based within 30 days after receiving notice from Executive
describing such circumstance or breach in reasonable detail or (iv) the
relocation of Executive’s primary office location to a location more than 75
miles outside the Los Angeles, California area.

 

i.

For the fiscal year ending
December 31, 2003, the Company shall pay the Executive a cash bonus in the
amount of $75,000.

 

ii.

For the fiscal year ending
after December 31, 2003, if the Company shall achieve the applicable bonus
target set by the Company’s Board of Directors (the “Performance Target”), then
the Company shall pay Executive a cash bonus in an amount equal to one hundred
percent (100%) of Executive’s Target Bonus (as defined below) calculated in
accordance with the Company’s then current bonus plan in effect for its Senior
Executives. The Performance Target utilized for calculating Executive’s bonus
under this Section 3(c)(ii) shall be the same as that utilized in bonus
calculations for all Senior Executives. “Executive’s Target Bonus” shall be in
an amount equal to a minimum of fifty percent (50%) of Executive’s annual
salary for the year with respect to which the bonus is to be paid.

 

(d)

Vacation. Executive shall be
entitled to three (3) weeks of vacation during each year, accrued at the rate
of 4.62 hours per pay period. Executive will be eligible to use vacation after
six months of continuous employment.

 

4.

Termination Payment. If
Executive is terminated by the Company without Cause or resigns for Good Reason
before the expiration of the Employment Term, Executive will receive a lump sum
severance payment in the amount of one year’s salary at Executive’s
then-current salary. As a precondition to the Company’s obligation to pay this
lump sum severance, Executive agrees to execute and deliver to the Company a
fully effective general release in the form attached to this Agreement as
Attachment A. During the one-year period following a termination without Cause
or resignation for Good Reason, Executive will have no duty to mitigate. In the
event that Executive has not obtained subsequent employment by one year after a
termination without Cause or resignation for Good Reason, the Company will
commence paying Executive’s salary in accordance with the Company’s payroll
practices for Senior Executives, through the remainder of the Employment Term,
subject to Executive’s duty to mitigate, and such payments shall cease if
Executive obtains comparable employment or if Executive fails to document to
the Company on a monthly basis that Executive is making reasonable efforts to
seek comparable employment. For purposes of this Agreement, the Company shall
have “Cause” to terminate the Executive’s services in the event of any of the
following acts or circumstances: (i) Executive’s conviction of a felony or
entering a plea of guilty or nolo contendere to any crime constituting a felony
(other than a traffic violation or by reason of vicarious liability); (ii)
Executive’s substantial and repeated failure to attempt to perform Executive’s
lawful duties as contemplated in Section 2 of this Agreement, except during
periods of physical or mental incapacity; (iii) Executive’s gross negligence or
willful misconduct with respect to any material aspect of the business of the
Company or any of its affiliates, which gross negligence or willful misconduct
has a material and demonstrable adverse effect on the Company; or (iv) any
material breach of this Agreement or any material breach of any other written
agreement between Executive and the Company’s affiliates governing Executive’s
equity compensation arrangements (i.e., any agreement with respect to Executive’s
stock and/or stock options of any of the Company’s affiliates);  provided, however,that Executive shall not be

 

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deemed to have been terminated
for Cause in the case of clause (iv) above, unless any such breach is not fully
corrected prior to the expiration of the fifteen (15) calendar day period
following delivery to Executive of the Company’s written notice of its
intention to terminate his employment for Cause describing the basis therefore
in reasonable detail.

 

5.

Confidential and Proprietary
Information.

 

(a)

The parties agree and
acknowledge that during the course of Executive’s employment, Executive will be
given and will have access to and be exposed to trade secrets and confidential
information in written, oral, electronic and other forms regarding the Company
and its affiliates (which includes but is not limited to all of its business
units, divisions and affiliates) and their business, equipment, products and
employees, including, without limitation: the identities of the Company’s and
its affiliates’ distributors and customers and potential distributors and
customers (hereinafter referred to collectively as “DISTRIBUTORS”), including,
without limitation, the identity of Distributors that Executive cultivates or
maintains while providing services at the Company or any of its affiliates
using the Company’s or any of its affiliates’ products, name and
infrastructure, and the identities of contact persons with respect to those
Distributors; 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 affiliates’ business
methods, practices, strategies, forecasts, pricing, and marketing techniques;
the identities of the Company’s and its affiliates’ licensors, vendors and
other suppliers and the identities of the Company’s and its affiliates’ contact
persons at such licensors, vendors and other suppliers; the identities of the
Company’s and its affiliates’ key sales representatives and personnel and other
employees; advertising and sales materials; research, computer software and
related materials; and other facts and financial and other business information
concerning or relating to the Company or any of its affiliates and their
business, operations, financial condition, results of operations and prospects.
Executive expressly agrees to use such trade secrets and confidential
information only for purposes of carrying out his duties for the Company and
its affiliates as he deems appropriate in his good faith judgment, and not for
any other purpose, including, without limitation, not in any way or for any
purpose detrimental to the Company or any of its affiliates. Executive shall
not at any time, either during the course of his employment hereunder or after
the termination of such employment, use for himself or others, directly or
indirectly, any such trade secrets or confidential information, and, except as
required by law, Executive shall not disclose such trade secrets or
confidential. information, directly or indirectly, to any other person or
entity. Trade secret and confidential information hereunder shall not include
any information which (i) is already in or subsequently enters the public
domain, other than as a result of any direct or indirect disclosure by
Executive, (ii) becomes available to Executive on a non-confidential basis from
a source other than the Company or any of its affiliates, provided that
Executive has no knowledge that such source is subject to a confidentiality
agreement or other obligation of secrecy or confidentiality (whether pursuant
to a contract, legal or fiduciary obligation or duty or otherwise) to the
Company or any of its affiliates or any other person or entity or (iii) is
approved for release by the board of directors of the Company or any of its affiliates
or which the board of directors of the Company or any of its affiliates makes
available to third parties without an obligation of confidentiality.

 

(b)

All physical property and all
notes, memoranda, files, records, writings, documents and other materials of
any and every nature, written or electronic, which Executive shall prepare or
receive in the course of his employment with the Company and which relate to or
are useful in any manner to the business now or hereafter conducted by the
Company or any of its affiliates are and shall remain the sole and

 

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exclusive property of the
Company and its affiliates, as applicable. Executive shall not remove from the
Company’s premises any such physical property, the original or any reproduction
of any such materials nor the information contained therein except for the
purposes of carrying out his duties to the Company or any of its affiliates and
all such property (except for any items of personal property not owned by the
Company or any of its affiliates), materials and information in his possession
or under his custody or control upon the termination of his employment (other
than such materials received by Executive solely in his capacity as a
shareholder) or at any other time upon request by the Company shall be
immediately turned over to the Company and its affiliates, as applicable.

 

(c)

All inventions improvements.
trade secrets, reports, manuals, computer programs, tapes and other ideas and
materials developed or invented by Executive during the period of his
employment, either solely or in collaboration with others, which relate to the
actual or anticipated business or research of the Company or any of its
affiliates which result from or are suggested by any work Executive may do for
the Company or any of its affiliates or which result from use of the Company’s
or any of its affiliates’ premises or property (collectively, the “DEVELOPMENTS”)
shall be the sole and exclusive property the Company and its affiliates, as
applicable. Executive assigns and transfers to the Company his entire right and
interest in any such Development, and Executive shall execute and deliver any
and all documents and shall do and perform any and all other acts and things
necessary or desirable in connection therewith that the Company or any of its
affiliates may reasonably request, it being agreed that the preparation of any
such documents shall be at the Company’s expense. Nothing in this paragraph
applies to an invention which qualifies fully under the provisions of California
Labor Code Section 2870.

 

(d)

Following the termination of
Executive’s employment, Executive will reasonably cooperate with the Company
(at the Company’s expense, if Executive reasonably incurs any out-of-pocket
costs with respect thereto) in any defense of any legal, administrative or
other action in which the Company or any of its affiliates or any of their
distributors or other business relations are a party or are otherwise involved,
so long as any such matter was related to Executive’s duties and activities
conducted on behalf of the Company or its Subsidiaries.

 

(e)

The provisions of this
Section 5 and Section 6 shall survive any termination of this Agreement and
termination of Executive’s employment with the Company.

 

6.

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

 

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any trade secrets or other
confidential information of the Company or any of its affiliates to directly or
indirectly participate in any means or manner in any competitive business,
wherever located.

 

7.

Injunctive Relief. Executive
and the Company (a) intend that the provisions of Sections 5 and 6 be and become
valid and enforceable, (b) acknowledge and agree that the provisions of
Sections 5 and 6 are reasonable and necessary to protect the legitimate
interests of the business of the Company and its affiliates and (c) agree that
any violation of Section 5 or 6 will result in irreparable injury to the
Company and its affiliates, the exact amount of which will be difficult to
ascertain and the remedies at law for which will not be reasonable or adequate
compensation to the Company and its affiliates for such a violation.
Accordingly, Executive agrees that if Executive violates or threatens to
violate the provisions of Section 5 or 6, in addition to any other remedy which
may be available at law or in equity, the Company shall be entitled to seek
specific performance and injunctive relief, without posting bond or other
security, and without the necessity of proving actual damages. In addition, in
the event of a violation or threatened violation by Executive of Section 5 or 6
of this Agreement, the Nonsolicitation Period will be tolled until such
violation or threatened violation has been duly cured. If, at the time of
enforcement of Sections 5 or 6 of this Agreement, a court holds that the
restrictions stated therein are unreasonable under circumstances then existing,
the parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period,
scope or area.

 

8.

Assignment: Successors and
Assigns. Executive agrees that he shall not assign, sell, transfer, delegate or
otherwise dispose of, whether voluntarily or involuntarily, any rights or
obligations under this Agreement, nor shall Executive’s rights hereunder be
subject to encumbrance of the claims of creditors. This Agreement may be assigned
by the Company without the consent of Executive to (a) any entity succeeding to
all or substantially all of the assets or business of the Company, whether by
merger, consolidation, acquisition or otherwise (upon which entity the
Agreement shall be binding), or (b) any affiliate;  provided, however, that in neither case shall
the Company be released from its obligations hereunder, nor shall any
assignment to an affiliate lessen the Executive’s rights with respect to his
position, duties, responsibilities or authority with respect to the Company.

 

9.

Governing Law: Jurisdiction
and Venue. This Agreement shall be governed, construed, interpreted and
enforced in accordance with the substantive laws of the State of California
without regard to the conflicts of law principles thereof. Suit to enforce this
Agreement or any provision or portion thereof may be brought in the federal or
state courts located in Los Angeles, California.

 

10.

Severability of Provisions.
In the event that any provision of this Agreement should ever be adjudicated by
a court of competent jurisdiction to be unenforceable, then such provision
shall be deemed reformed to the maximum extent permitted by applicable law. and
the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of any other provision of this Agreement.

 

11.

Warranty. As an inducement to
the Company to enter into this Agreement, Executive represents and warrants
that he is not a party to any other agreement or obligation for personal
services, and that there exists no impediment or restraint, contractual or
otherwise, on his power, right or ability to enter into this Agreement and to
perform his duties and obligations hereunder.

 

5

 

12.

Notices. All notices,
requests, demands and other communications which are required or may be given
under this Agreement shall be in writing and shall be deemed to have been duly
given when received if personally delivered; when transmitted if transmitted by
telecopy, electronic or digital transmission method upon receipt of telephonic
or electronic confirmation; the day after it is sent, if sent for next day
delivery to a domestic address by recognized overnight delivery service  (e.g., Federal Express); and upon receipt, if
sent by certified or registered mail, return receipt requested. In each case
notice will be sent to:

 

(a)

If to the Company:

 

Herbalife International of America, Inc.

1800 Century Park East

Los Angeles, California 90067

Attention: Members of the
Compensation Committee of the Board of Directors

Telecopy: (310) 557-3906

 

with a copy to:

 

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

 

(b)

if to Executive, to:

 

Brett R. Chapman

5054 Royal Vista Court

Thousand Oaks, California
91362

 

with a copy to:

 

Cathy J. Frankel, Esq.

Moses & Singer LLP

1301 Avenue of the Americas

New York, New York 10019-6076

 

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.

Counterparts. This Agreement
may be executed in several counterparts, each of which will be deemed to be an
original, but all of which together shall constitute one and the same
Agreement.

 

14.

Entire Agreement. The terms
of this Agreement are intended by the parties to be the final expression of
their agreement with respect to the subject matter hereof and this Agreement
supersedes (and may not be contradicted by, modified or supplemented by) any prior
or contemporaneous agreement, written or oral, with respect thereto, with the
exception of the Non-Statutory Stock Option Agreement and the Shareholders’
Agreement. The parties further intend that this Agreement shall constitute the
complete and exclusive statement of its terms and that no extrinsic evidence
whatsoever may be introduced in any judicial, administrative, or other legal
proceeding to vary the terms of this Agreement.

 

15.

Amendments: Waivers. This
Agreement may not be modified, amended, or terminated except by an instrument
in writing, signed by Executive and a duly authorized representative of the
Company. No waiver of any of the provisions of this Agreement, whether by
conduct or otherwise, in anyone 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

 

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delay in exercising any
right, remedy or power hereunder shall preclude any other or further exercise
of any other right, remedy, or power provided herein or by law or in equity.

 

16.

Representation of Counsel:
Mutual Negotiation. Each party has had the opportunity to be represented by
counsel of its choice in negotiating this Agreement. This Agreement shall
therefore be deemed to have been negotiated and prepared at the joint request,
direction and construction of the parties, at arm’s-length, with the advice and
participation of counsel, and shall be interpreted in accordance with its terms
without favor to any party.

 

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

 

	
  EXECUTIVE

  
	
   

  
	
   

  	
   

  
	
  By: Brett R.
  Chapman

  
	
   

  
	
  HERBALIFE
  INTERNATIONAL OF AMERICA, INC.

  
	
   

  
	
   

  	
   

  
	
  By: Michael O.
  Johnson

  
	
  Title: Chief
  Executive Officer

  

 

8

 

ATTACHMENT
A

 

Agreement
and General Release

 

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

 

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

 

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

 

(b)   Without limiting the
generality of the foregoing, this Agreement is intended to and shall release
the Company Entities form any all claims, whether known or unknown, which
Releasors ever had, now have, or may have against the Companies Entities
arising out of your employment or termination thereof, including, but not
limited to: (i) any claim under the Age Discrimination in Employment Act, Title
VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the
Employee Retirement Income Security Act of 1974,(excluding claims for accrued,
vested benefits under any employee benefit or pension plan of the Company
Entities subject to the terms and conditions of such plan and applicable law),
the Family and Medical Leave Act, the Worker Adjustment and Restraining
Notification Act of 1988, or the Fair Labor Standards Act of 1938, in each case
as amended; (ii) any claim under the California Fair Employment and Housing
Act, the California Labor Code, the California Family Rights Act, or the
California pregnancy Disability Leave Law; (iii) any other claim (whether based
on federal, state, or local law (statutory or decisional), rule, regulation or
ordinance) relating to or arising out of your employment, the terms and
conditions of such employment, the termination of such employment, including,
but not limited to, breach of contract (express or implied), wrongful
discharge, detrimental reliance, defamation, emotional distress or compensatory
or punitive damages; and (iv) any claim for attorneys’ fees, costs,
disbursements and/of the like.

 

(c)   Notwithstanding the
foregoing, nothing in this Agreement shall be a waiver of claims: (1) that may
arise after the date on which you sign this Agreement; (2) with respect to your
right to enforce your rights that survive termination under the Employment
Agreement or any other written agreement entered into between you and the
Company (including, without limitation, any equity grants or agreements); (3)
regarding rights of indemnification, receipt of algal fees and directors and
officers liability insurance to which you are entitled under the Employment
Agreement, the Company’s Certificate of

 

9

 

Incorporation or By-laws, pursuant to any separate writing between you
and the Company or pursuant to applicable law; (4) relating to any claims for
accrued, vested benefits under any employee benefit plan or pension plan of the
Company Entities subject to the terms and conditions of such plan and
applicable law; or (5) as a stockholder or optionholder of the Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

9.             You understand that
you will have at least twenty-one (21) days from the date of receipt of this
Agreement to consider the terms and conditions of this Agreement. You may
accept this Agreement by signing it and returning it to the Company’s Chief
Executive Officer at the address specified pursuant to Section 12 of the
Employment Agreement on or before After executing this Agreement, you shall
have seven (7) days (the “REVOCATION PERIOD”) to revoke this Agreement by
indicating your desire to do so in writing delivered to the Chief Executive
Officer at the address above by no later than 5:00 p.m. on the seventh (7th)
day after the date you sign this Agreement. The effective date of this
Agreement shall be the eighth (8th) day after you sign the Agreement (the “AGREEMENT
EFFECTIVE DATE”). If the last day of the Revocation Period falls on a Saturday,
Sunday or holiday, the last day of the Revocation Period will be deemed to be
the next business day. In the event you do not accept this Agreement as set
forth above, or in the event you revoke this Agreement during the Revocation
Period, this Agreement, including but not limited to the obligation of the
Company to provide the payments and benefits provided in paragraph 1 above,
shall be deemed automatically null and void.

 

	
  EXECUTIVE

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Brett R. Chapman

  	
   

  
	
   

  
	
  HERBALIFE
  INTERNATIONAL OF AMERICA, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  QuickLinks

  
	
   

  
	
  EMPLOYMENT
  AGREEMENT

  
	
  ATTACHMENT A
  Agreement and General Release

  
				

 

11EXHIBIT 10.33

 

NON-STATUTORY STOCK OPTION AGREEMENT

(Non-Executive Agreement)

 

AGREEMENT
(this “Agreement”) entered into as of the   
day of              , 200            by and between WH Holdings (Cayman
Islands) Ltd., a Cayman Islands company (the “Company”), and the {NAME} (the “Employee”)
of the Company or its Subsidiaries.

 

WHEREAS,
pursuant to the WH Holdings (Cayman Islands) Ltd. Stock Incentive Plan (the “Plan”),
the Committee designated under the Plan desires to grant to the Employee an
option to acquire Common Shares, par value $0.001 per share, of the Company;
and

 

WHEREAS,
the Employee 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 Employee, intending to be
legally bound, hereby agree as follows:

 

1.             Grant of Option.    On the terms and conditions hereinafter set
forth, the Company hereby grants to the Employee an option to purchase all (or
any part) of                       
Shares (the “Option”). This Option is granted on the    of            , 200    (the “Grant Date”). The Option is a
Non-Statutory Stock Option. This Option is granted pursuant to the Plan, and is
governed by the terms and conditions of the Plan. All defined terms used
herein, unless specifically defined in this Agreement, have the meanings
assigned to them in the Plan.

 

2.             Exercise Price.    The exercise price (the “Exercise Price”)
for the Shares covered by the Option will be $            per share.

 

3.             Time of Exercise of Option.

 

(a)           The Option will become exercisable in
quarterly 5% increments beginning on the last day of the calendar quarter
during which the Grant Date occurs and each subsequent last day of each
following 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)           Notwithstanding any provision in this
Agreement or the Plan to the contrary, unless otherwise approved by a written
resolution of the Committee prior to or contemporaneously with the closing of
any such transaction, any portion of the Option (whether vested or unvested and
whether or not then exercisable) which has not been exercised prior to or in
connection with any merger or consolidation of the Company into another
corporation, the exchange of all or substantially all of the assets of the
Company for the securities of another corporation, a Change of Control or the
recapitalization, reclassification, liquidation or dissolution of the Company
or any other fundamental corporate transaction involving the Company or any of
its Subsidiaries with the same or a similar purpose or effect (as determined by
the Committee in its sole discretion) shall expire and be cancelled and of no
further force and effect effective upon the closing of any such transaction.

 

4.             Term of Options and Repurchase
Rights.

 

(a)           The Option will expire 10 years from
the date hereof, but will be subject to earlier termination as provided below.

 

(b)           Upon termination of employment:

 

(i)            the unexercisable portion of the
Option hereby granted will terminate on the date of such termination.

 

(ii)           the exercisable portion of the Option
hereby granted will be treated as follows:

 

(A)          Subject in each case to the repurchase
rights described in clause

 

1

 

(c)
below and the Shareholders’ Agreement, if the Employee’s employment is
terminated for any reason except for Cause, the exercisable portion of the
Option hereby granted will be exercisable for thirty days following the
termination, unless the Employee terminates employment on account of a
disability as defined in Code Section 22(e) or if the Employee dies, in
which case, such Employee, or such Employee’s personal representative, may
exercise the exercisable portion of the Option hereby granted for six months
following the termination of employment on account of disability or the
Employee’s death.

 

(B)           If the Employee’s employment is
terminated for Cause, the exercisable portion of the Option hereby granted will
terminate on the date of such termination.

 

(c)           Subject to the terms of the Plan, the
Company has the right to repurchase Shares acquired upon the exercise of
Options for a period of 90 days, with such period beginning on the later of (i)
the day after the six month anniversary of the day the Shares for which the
Option is exercised are acquired and (ii) the day the Employee terminates
employment with the Company. Notwithstanding anything to the contrary in the Shareholders’
Agreement, the purchase price per Share payable under Section 6(a) or (b)
of the Shareholder’s Agreement shall be determined by the Company and be
either:

 

(i)            the Fair Market Value of the Shares
to be repurchased on the date of repurchase; or

 

(ii)           the original Exercise Price of the
Shares to be repurchased, provided, however, that notwithstanding anything
herein to the contrary, the right of the Company to repurchase such Shares at
the Exercise Price shall lapse at the rate of 20% of the Shares per year from
the Grant Date.

 

(d)           For purposes of this Agreement, “Cause”
shall have the meaning ascribed to such term in any written employment
agreement between Employee and the Company or one or more of its Subsidiaries,
as the same may be amended or modified from time to time, or if Employee and
the Company or one or more of its Subsidiaries are not party to any such
written employment agreement, then the Company and its Subsidiaries shall have “Cause”
to terminate the Employee’s services in the event 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 Employee’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 or the Board of Directors, to adhere to the Company’s or any of its
Subsidiary’s policies or practices or to devote substantially all of the
Employee’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 Company or any of its Subsidiaries, on the
one hand, and the Employee, which covers confidentiality or proprietary
information, nonsolicitation or non-competition provisions; or (vi) breach in
any material respect of the terms and provisions of the Employee’s employment
agreement, if any, or any agreement between the Company or any of its
Subsidiaries, on the other hand, and the Employee.

 

5.             Manner of Exercise of Option.    The Option may be exercised by delivery,
via first class mail, interoffice mail, fax or electronic mail of a Notice of
Option Exercise and related forms to the Company stating the number of Shares
with respect to which the Option is being exercised and accompanied by payment
of the Total Exercise Cost in cash or by check, bank draft or money order
payable to the order of the Company or, subsequent to an Initial Public
Offering, through the delivery to the Company of an Authorization for Exercise
of Options “Cashless” Exercise Form with irrevocable instructions to a broker
to deliver promptly to the Company an amount equal to the Total Exercise Cost,
subject to such limitations as the Committee may adopt from time to time or by
any combination of the above methods of payment.

 

6.             Non-Transferability.    The right of the Employee to exercise the

 

2

 

Option
(as and when exercisable) may not be assigned or transferred by the Employee
other than by will or the laws of descent and distribution. The Option may be
exercised and the Shares may be purchased during the lifetime of the Employee
only by the Employee (or the Employee’s legal representative in the event that
the Employee’s employment is terminated due to “Disability” within the meaning
of Code Section 22(e)). Any attempted assignment or transfer, except as
hereinabove provided, including without limitation any purported assignment,
whether voluntary or by operation of law, pledge, hypothecation or other
disposition contrary to the provisions hereof, or any levy of execution,
attachment, trustee process or similar process, whether legal or equitable,
upon the Option, will in each instance be null and void.

 

7.             Representation Letter and
Investment Legend.

 

(a)           In the event that for any reason the
issuance of the Shares to be issued upon exercise of an exercisable Option will
not be effectively registered under the 1933 Act, upon any date on which the
Option is exercised, the Employee (or the person exercising the Option pursuant
to Paragraph 6) will give a written representation to the Company in the form
attached hereto as Exhibit A, and the Company will place the legend described
in Exhibit A upon any certificate for the Shares issued by reason of such
exercise.

 

(b)           The Company will be under no
obligation to qualify Shares or to cause a registration statement or a
post-effective amendment to any registration statement to be prepared for the
purpose of covering the issuance of Shares.

 

8.             Adjustments of Shares and
Options.    Subject to Paragraph 7 of the
Plan, in the event of any change in the outstanding Shares by reason of an
acquisition, spin-off or reclassification, recapitalization or merger,
combination or exchange of Shares or other corporate exchange, Change of
Control or similar event, the Committee may adjust appropriately the number or
kind of Shares or securities subject to the Option and exercise prices related
thereto and make such other revisions to the Option as it deems are equitably
required.

 

9.             No Special Employment Rights.    Nothing contained in this Agreement will be
construed or deemed by any person under any circumstances to bind the Company
or any of its Subsidiaries to continue the employment of the Employee for the
period within which this Option may vest or for any other period.

 

10.           Rights as a Shareholder.    The Employee will have no rights as a
shareholder with respect to any Shares which may be purchased upon the exercise
of this Option unless and until a certificate or certificates representing such
Shares are duly issued and delivered to the Employee. If at any time during the
term of the Option, the Company is advised by its counsel that the Shares are
required to be registered under the Securities Act or under applicable state
securities laws, or that delivery of the Shares must be accompanied or preceded
by a prospectus meeting the requirements of such laws, delivery of Shares by
the Company may be deferred until a registration is effective or a prospectus
is available or an appropriate exemption from registration is secured.

 

11.           Withholding Taxes.    The Employee hereby agrees, as a condition
to any exercise of the Option, to provide to the Company an amount sufficient
to satisfy its obligation to withhold certain federal, state and local taxes
arising by reason of such exercise (the “Withholding Amount”), if any, by (a)
authorizing the Company to withhold the Withholding Amount from the Employee’s
cash compensation, or (b) remitting the Withholding Amount to the Company in
cash; provided that, to the extent that the Withholding Amount is not provided
by one or a combination of such methods, the Company may at its election
withhold from the Shares delivered upon exercise of the Option that number of
Shares having a Fair Market Value as of the date immediately prior to the
issuance of such Shares equal to the Withholding Amount.

 

12.           Execution of Shareholders’ Agreement
and of Release and Waiver of Rights.   
The Employee acknowledges that, in connection with his or her prior or
future purchase of Shares of the Company, he or she will execute and

 

3

 

deliver
the Shareholders’ Agreement or a joinder or counterpart signature page thereto.
The Employee further agrees that all Shares acquired by such Employee up on
exercise of the Option will be subject to the terms and conditions of the
Shareholders’ Agreement as modified hereby. Prior to participation in the Plan,
if the Committee requires, the Employee will execute a Release and Waiver to
Rights to payments and benefits under certain plans of Herbalife International,
Inc.

 

13.           Lock-Up Agreements.    The Employee agrees that notwithstanding
anything to the contrary contained in this Agreement, in the event of an
Initial Public Offering or any other offering of securities of the Company,
except to the extent that: (a) the Employee sells his or her Shares obtained
upon the exercise of the Option to the underwriters of the Company’s securities
in connection with such offering or (b) the underwriters do not request the
following restrictions, such Employee shall not (i) offer, hedge, pledge, sell
or contract to sell any such Shares, (ii) sell any option or contract to
purchase any Shares, (iii) purchase any option or contract to sell any Shares,
(iv) grant any option, right or warrant for the sale of any Shares, or (v) lend
or otherwise dispose of or transfer any Shares during the longer of (A) any
black-out period requested by the underwriters conducting any such offering of
securities on behalf of the Company and (B) during the seven days prior to and
during the 180-day period beginning on the effective date of such Initial
Public Offering or other offering of securities; provided, however, that such
Employee shall, in any event, be entitled to sell his or her Shares commencing
on the expiration of the black-out period described in the aforementioned
clause (A) or (B).

 

14.           Delivery of Certificates.    The Employee will have no interest in the
Shares unless and until certificates for the Shares are issued following
exercise of the Option.

 

*********

 

{Signatures on Following Page}

 

4

 

OPTION AGREEMENT

 

Counterpart Signature Page

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed, by its
officer thereunto duly authorized, and the Employee has executed this
Agreement, all as of the day and year first above written.

 

	
  WH HOLDINGS (CAYMAN ISLANDS)

  	
   

  	
   

  	
  EMPLOYEE

  
	
  LTD.

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (print name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile Number:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Social Security Number

  
	
   

  	
   

  	
   

  	
  E-mail Address:

  

 

5

 

EXHIBIT A

 

TO:    WH HOLDINGS (CAYMAN ISLANDS) LTD.

 

The
undersigned hereby irrevocably exercises the right to purchase                   of the shares of Common
Shares, par value $0.001 per share (“Common Shares”) of WH Holdings (Cayman
Islands) Ltd., a Cayman Islands company (the “Company”), evidenced by the
attached Option, and herewith makes payment of the Exercise Price with respect
to such shares in full, all in accordance with the conditions and provisions of
said Option.

 

1.             The undersigned hereby represents
and warrants to and agrees with the Company as follows:

 

(a)           The undersigned understands and
acknowledges that an investment in the Common Shares issuable upon exercise of
this Option involves a high degree of risk and that there are limitations on
the liquidity of the Common Shares issuable upon exercise of this Option. The
undersigned is able to bear the economic risk of an investment in the Common
Shares issuable upon exercise of this Option. The undersigned has adequate
means of providing for the undersigned’s current needs and contingencies; is
able to afford to hold the Common Shares issuable upon exercise of this Option
for an indefinite period; and has such knowledge and experience in financial
and business matters such that the undersigned is capable of evaluating the
merits and risks of the investment in the Common Shares issuable upon exercise
of this Option;

 

(b)           The undersigned is acquiring the
Common Shares issuable upon exercise of this Option for its own account for
investment and not as a nominee and not with a present view to the distribution
thereof in violation of the Securities Act of 1933, as amended (the “1933 Act”).
The undersigned understands that the undersigned must bear the economic risk of
this investment indefinitely unless such shares are registered pursuant to the
1933 Act and any applicable state securities laws, or an exemption from such
registration is available. The undersigned has no plan or intention to sell the
Common Shares issuable upon exercise of this Option at any predetermined time,
and has made no predetermined arrangements to sell such shares;

 

(c)           The undersigned will not make any
sale, transfer or other disposition of the shares of Common Shares issuable
upon exercise of this Option in violation of (1) the 1933 Act, the Securities
Exchange Act of 1934, as amended, any other applicable federal or state
securities laws or the rules and regulations of the Securities and Exchange
Commission or of any state securities commissions or similar state authorities
promulgated under any of the foregoing, or (2) any applicable securities laws
of jurisdictions outside the United States and the rules and regulations
thereunder.

 

2.             The undersigned agrees not to
offer, sell, transfer or otherwise dispose of any of the Common Shares obtained
on exercise of the Option, except in accordance with the provisions of the
Option, and consents that the following legend may be affixed to the stock certificates
for the Common Shares hereby subscribed for, if such legend is applicable:

 

“THE
SALE, TRANSFER OR ENCUMBRANCE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO THE TERMS AND CONDITIONS OF A SHAREHOLDERS’ AGREEMENT, DATED AS
OF JULY 31, 2002 AMONG WH HOLDINGS (CAYMAN ISLANDS) LTD. AND CERTAIN
HOLDERS OF ITS OUTSTANDING SHARE CAPITAL, AS SUCH AGREEMENT MAY BE AMENDED.
COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY
THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF WH HOLDINGS
(CAYMAN ISLANDS) LTD.

 

IN
ADDITION, THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY PROVINCIAL OR STATE
SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF UNTIL A REGISTRATION STATEMENT UNDER THE 1933 ACT AND
APPLICABLE PROVINCIAL OR STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH
REGARD THERETO, OR AN EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT OR
APPLICABLE PROVINCIAL OR STATE SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH
SUCH OFFER, SALE OR TRANSFER.”

 

6

 

3.             The undersigned requests that stock
certificates for such shares be issued, and a new option agreement representing
any unexercised portion hereof be issued in the name of the registered holder
and delivered to the undersigned at the address set forth below:

 

{Signature on the Following Page}

 

7

 

	
  Dated:

  
	
   

  
	
   

  	
   

  
	
  Signature of Registered Holder

  
	
   

  
	
   

  	
   

  
	
  Name of Registered Holder (Print)

  
	
   

  
	
   

  
	
  QuickLinks

  
	
   

  
	
  NON-STATUTORY STOCK OPTION AGREEMENT (Non-Executive Agreement)

  

 

8

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