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                                                                   EXHIBIT 10.39

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 Christopher Pair ("Pair"), 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 19th day of October, 2001 ("Resignation Date"). Pair and
Herbalife are referred to herein collectively as "the Parties."

                                    RECITALS

        A. Pair was employed as Herbalife's President and Chief Executive
Officer, and served as a Director on Herbalife's Board of Directors.

        B. Pair and Herbalife agreed that Pair would resign both his employment
and any and all directorships with Herbalife effective October 19, 2001.

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

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

        A. Consideration.

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

           a) Herbalife will pay Pair three million dollars ($3,000,000.00) to
              be paid as follows:

                  (i)   One million one hundred and forty thousand dollars
                        ($1,140,000.00, less applicable withholding) to be paid
                        on October 22, 2001;

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                  (ii)  Eight separate quarterly payments each in the amount of
                        two hundred and one thousand, five hundred dollars
                        ($201,500.00, less applicable withholding), commencing
                        with the first such quarterly payment on November 1,
                        2001, and continuing with successive quarters
                        thereafter; and,

                  (iii) A final lump sum payment of two hundred forty eight
                        thousand dollars ($248,000.00, less applicable
                        withholding) to be paid simultaneously with the final
                        quarterly payment referred to herein in Paragraph
                        1(a)(ii).

               b) A full payout of Pair's SERP as of the Resignation Date
                  ($1,152,957.00, less applicable withholding, payable on
                  October 22, 2001);

               c) A full payout of Pair's Deferred Compensation account as of
                  the Resignation Date ($1,639,645.00, less applicable
                  withholding, payable on October 22, 2001);

               d) A payment of Pair's accrued, unused vacation days as of the
                  Resignation Date ($443,125.00, less applicable withholding,
                  payable on October 22, 2001); and,

               e) The cost of 18 months of COBRA health, dental and vision
                  coverage for Pair 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) payable in a lump sum ($104,850.00, payable on
                  October 22, 2001). All amounts due under

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                  Paragraph 1 herein on October 22, 2001, may be paid as an
                  aggregate sum. All such payments will be made less applicable
                  withholding;

               f) Unless otherwise set forth in this Agreement, Pair's Stock
                  Options are vested and will be exercisable in accordance with
                  Herbalife's Stock Option Plan, and applicable law. Pair and
                  the Company represent and agree that the number and strike
                  price of vested and unvested stock options Pair 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 Pair and
                        Herbalife (collectively, the "Stock Option Materials"),
                        Pair 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). If and to the extent that Pair exercises
                        some or all of the Vested Options on or after January 2,
                        2002, Herbalife agrees, if so requested by Pair, to make
                        a loan to Pair (the "Option Loan") in the amount of the
                        exercise price of the Vested Options that are so
                        exercised. The Option Loan will (a) be a full recourse
                        obligation of Pair due and payable on September 1, 2002
                        (at which time principal and

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                        all accrued and unpaid interest will be due and payable
                        in full), (b) bear interest at a per annum rate that is
                        a fair market value rate taking into account all facts
                        and circumstances pertaining to the Option Loan at the
                        time of its making, (c) be prepayable by Pair without
                        premium or interest, and (d) will be secured by the
                        shares of Herbalife common stock acquired upon exercise
                        of the Vested Options and all other obligations owed by
                        Herbalife to Pair, including, without limitation, the
                        additional financial obligations owed by Herbalife to
                        Pair pursuant to the terms of this Agreement. The Option
                        Loan will be evidenced by a promissory note, and the
                        security referenced in clause (d) of the preceding
                        sentence will be evidenced by a security agreement, in
                        such forms as Herbalife shall prescribe in its sole
                        discretion.

                  (ii)  Unvested Options. Herbalife agrees that stock options
                        held by Pair that are not vested as of the date hereof
                        ("Unvested Options") shall continue to be outstanding
                        through and including September 1, 2002 (the "Option
                        Termination Date"). Effective as of the Option
                        Termination Date, to the extent that the vesting of
                        stock options granted by Herbalife to its employees is
                        accelerated for employees generally in connection with
                        a change of control transaction that occurs on or
                        before the Option Termination Date, then the Unvested
                        Options will be afforded the same acceleration
                        treatment as is provided to stock options held by
                        employees generally.

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

        2. Pair will repay all of his outstanding loan obligations to Herbalife.
Specifically, Pair will repay the full amount(s) of principal and interest due
and owing on Herbalife's loans to him evidenced by the Promissory Notes dated
April 10, 2000 and September 25, 2001 (in the aggregate amount of
$1,140,000.00), which amount will be deducted from Herbalife's initial
payment(s) to Pair under Paragraph 1 herein.

        3. In partial consideration of Herbalife's covenants in this Agreement,
Pair hereby sells, conveys, transfers and assigns to Herbalife all of his right,
title and interest in and to all direct and indirect interests held by Pair
(collectively, the "Pair HOJ Interest") in the capital stock and other
securities of Herbalife of Japan K.K. ("HOJ"), including, without limitation,
such interests held by Pair (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. If and to the extent that the foregoing sale, conveyance, transfer and
assignment is ineffective for any reason (i.e., pursuant to applicable law,
governing contracts or otherwise), then Pair hereby relinquishes and waives any
and all claims with respect to any and all interests, direct or indirect, in the
capital stock and other securities of HOJ. Pair represents and warrants that the
Pair HOJ Interest includes all direct and indirect interests held by Pair 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, except
as set forth below, to any other person (including, without limitation, any
former spouse) or entity in any manner, whether by contract, operation of law or
otherwise, and

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Pair 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 Pair HOJ
Interest. Although Pair retains the obligation to convey all interest in the HOJ
Interest to Herbalife, Pair hereby informs Herbalife that his former spouse has
an interest in the Pair HOJ Interest, but that Pair will be responsible for
transferring to Herbalife all HOJ Interest held by himself, his spouse, or any
other person or entity. Pair 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 Pair.

        4. Pair agrees that he voluntarily resigned his employment with
Herbalife, and that a mutually agreeable press release will be issued so
stating. Pair also agrees that he voluntarily resigned his position as a member
of Herbalife's Board of Directors, and all other directorships with Herbalife.
Pair further agrees that he will not apply or seek to enter into any employment,
distributor or 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. Pair agrees
that he will fully cooperate with Herbalife in winding up his pending work and
in an orderly transfer of his work to others, and that he will be available to
respond to inquiries about his work. Pair further agrees, on behalf of himself
and his legal successors and assigns, to execute such additional documents and
instruments and take such additional actions as Herbalife may request from time
to time after the date hereof, in order to complete, effectuate, perfect and
better evidence the agreements of the parties set forth in this Agreement. Pair
will also reasonably cooperate with Herbalife in the defense of any legal,
administrative or other legal action brought by any third party against
Herbalife.

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        5. Pair'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 Pair 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 October 5, 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 Pair's
right to purchase COBRA insurance as set forth in Paragraph 1(e).

        B. Confidentiality and Non-Disparagement.

        6. (a) Pair agrees not to disclose or misappropriate any and all trade
secrets or confidential or proprietary information of Herbalife (collectively
"Protected 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) information regarding any potential
acquisition or sale of the Company; (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

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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) Pair 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, Pair agrees as
follows:

                (i) for a period of one year after his resignation, Pair shall
            not, directly or indirectly divert or attempt to divert from
            Herbalife any business of any kind in which it is engaged, unless
            Pair 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, Pair shall
            not, directly or indirectly, solicit for any business purpose any
            distributor or vendor of Herbalife, unless Pair 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, Pair shall
            not, directly or indirectly, attempt to solicit, induce, or persuade
            in any manner any of 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), Pair acknowledges that Herbalife
may suffer damages for which monetary compensation will not suffice and,
accordingly, Herbalife shall be

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entitled to injunctive and other equitable relief in addition to any other
rights or remedies that Herbalife may possess or be entitled to pursue.

        7. Pair agrees to return to Herbalife by October 22, 2001, 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. Pair acknowledges that all such material is the property of Herbalife
solely and that Pair has no right, title, or interest in or to such materials.
Pair further acknowledges that his conduct pursuant to this paragraph is
material consideration for the payment referenced above. Notwithstanding the
foregoing, Pair may retain the articles set forth on the schedule attached
hereto as Exhibit "B."

        8. For and in consideration for Herbalife's commitments, Pair agrees and
promises not to disclose the substance, contents, amounts or terms of this
Agreement, except to Pair's legal, tax or financial advisors, or if compelled to
do so by law or federal or state tax authorities or other agencies, in which
event Pair must notify Herbalife's legal department to allow it to assert
Herbalife's rights under the law or this Agreement. Pair's tax and financial
advisors shall not be privy to any part or terms of this Agreement other than
financial information. In the event Pair 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 any other person for
any reason whatsoever. Pair acknowledges that his promises of confidentiality,
as set forth herein, are material and essential consideration for Herbalife's
promises and agreements herein.

        9. Pair agrees not to make any personal or business disparagement of any
present, former or future Herbalife officer, director, employee or distributor.
Pair also

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agrees not to disparage Herbalife or any past, present or future Herbalife
products. This provision prohibits Pair from, among other things, saying
anything negative or critical regarding Herbalife or the foregoing individuals
(as individuals or in any other capacity) or products. Pair is also prohibited
from speaking or communicating in any manner (whether orally or in writing)
regarding Herbalife, or the foregoing individuals (as individuals or in any
other capacity) or products in any regard. Pair may not give any interview, or
make comment orally or in writing, to any press or media regarding Herbalife or
any of the foregoing individuals (as individuals or in any other capacity) or
products.

        10. In addition to and not in limitation of the provisions of
paragraphs 6, 7, 8 and 9 of this Agreement, Pair agrees that he will not,
directly or indirectly through one or more other entities, persons or
instrumentalities, during the period commencing on the date hereof and ending
on the date that is two (2) years thereafter, except in his capacity as a
Trustee of the Mark Hughes Family Trust, (i) make any contact or engage in any
communication with any representative of ** or any other third party (including
any affiliate or related person of any of the foregoing) involved in any manner
in the transaction currently proposed between Herbalife and **; (ii) effect or
seek, offer or propose (whether publicly or otherwise) to effect, or cause or
participate in or in any way assist any other person to effect or seek, offer or
propose (whether publicly or otherwise) to effect or participate in, (A) any
acquisition of any securities (or any beneficial ownership thereof) or assets of
Herbalife or any of its subsidiaries (except solely the exercise of Vested
Options and Unvested Options, as such terms are defined and as provided in
paragraph 1(f) of this Agreement); (B) any tender or exchange offer, merger or
other business combination involving Herbalife or any of its subsidiaries; (C)
any recapitalization, restructuring, liquidation, dissolution or other
extraordinary transaction with respect to Herbalife or any of its subsidiaries;
or (D) any solicitation of proxies (as such terms are used in the proxy rules of
the Securities and Exchange Commission) or consents to vote any voting
securities of Herbalife; (iii) otherwise act, alone or in concert with others,
to seek to control or influence the management, Board of Directors or policies
of Herbalife; (iv) take any action which might require Herbalife to make a
public announcement regarding any of the types of matters described in this
paragraph; or (v) enter into any discussions or arrangements with any third
party with respect to any of the foregoing.

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        11. To the extent Pair 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 Pair's
breach of the terms of paragraphs 6, 7, 8, 9 or 10, Herbalife will be entitled
to liquidated damages against Pair in the amount of one million dollars
($1,000,000.00).

        12. Nothing in this Agreement shall prevent Pair from: (a) disclosing
information or documents in response to court order. In the event Pair is
subject to any such court order, Pair 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. Pair, 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

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

        13. Herbalife agrees not to disparage Pair, 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 Pair, 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 Pair's
employment, including, but not limited to, his job performance. Notwithstanding
the foregoing, either Party may state Pair's duration of employment and job
titles at Herbalife.

        C. Further Agreements and Representations.

        14. Pair 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
Pair further agrees that he will not file or initiate any claim, action, charge,
complaint or suit of any kind against any Employer Released Party. Pair 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 Pair 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.

        15. Any dispute regarding any aspect of this Agreement ("arbitrable
dispute"), shall be submitted to arbitration in Los Angeles, California, before
an experienced

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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 Pair 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.

        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

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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 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.

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        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 Pair materially breaches this Agreement, he will be
entitled to no further consideration and will return to Herbalife all
consideration paid to him under the Agreement prior to the breach.

        24. For and in consideration of the promises and commitments set forth
herein, Pair 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 Pair'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 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

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"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. Pair 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 October 5, 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.

                (b) For and in consideration of Pair'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

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releases and discharges Pair and his heirs, successors, assigns, representatives
and estate (collectively, the "Pair 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 Pair 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 Pair'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 Pair 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:

                      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.

                                       17

<PAGE>

        26. Age Discrimination Claims. Pair 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. Pair 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 Pair. The terms of this paragraph 26 are
applicable only to Pair's waiver of Age Discrimination in Employment Act claims.
Revocation of Pair's waiver of such claims pursuant to this paragraph 26 will
not revoke Pair's other promises, releases, waivers and agreements herein, all
of which will remain in full force and effect. In the event Pair 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 Pair prior to any such revocation, will serve as good and
valuable consideration for Pair'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: 10/19/01                       By: /s/ CHRISTOPHER PAIR
      ----------------------------       ---------------------------------------
                                         Christopher Pair

DATED: 10/19/01                       HERBALIFE INTERNATIONAL OF
                                      AMERICA, INC./HERBALIFE
                                      INTERNATIONAL, INC.

                                      By: /s/ CAROL HANNAH
                                          --------------------------------------
                                          Carol Hannah
                                          Executive Vice President

                                       19<PAGE>
                                                                     EXHIBIT 4.1

                                                                     EXHIBIT B

                               REGISTRATION RIGHTS

        This constitutes Exhibit B to the Stock Agreement (as it may be amended
from time to time, the "STOCK AGREEMENT") dated as of July 30, 2002 between
SoftNet Systems, Inc., a Delaware corporation (the "CORPORATION") and Madison
Investors Corporation, a Delaware corporation ("BUYER") This Exhibit B shall
become effective upon the purchase by Buyer of 5,000,000 shares of Common Stock
from Cyber Net Technology Limited pursuant to an agreement between Buyer and
Cyber Net Technology Limited dated July 30, 2002.

                                   ARTICLE 1
                                   DEFINITIONS

        Section 1.01. Definitions. Terms defined in the Stock Purchase
Agreement are used herein as therein defined. In addition, the following terms,
as used herein, have the following meanings:

        "COMMISSION" means the Securities and Exchange Commission.

        "DEMAND REGISTRATION STATEMENT" means the Demand Registration Statement
as defined in Section 2.01.

        "HOLDER" means a person who owns Registrable Securities and is either
(a) Buyer or (b) a direct or an indirect transferee of Buyer permitted under the
Stock Agreement who has agreed in writing to be bound by the applicable terms of
the Stock Agreement and this Exhibit B.

        "INDEMNIFIED PARTY" means an Indemnified Party as defined in Section
4.03.

        "PIGGYBACK REGISTRATION" means a Piggyback Registration as defined in
Section 2.02.

        "REGISTRABLE COMMON STOCK" means the Shares (as defined under the Stock
Agreement) and any additional shares of Common Stock issued the respect thereof
in connection with a stock split, stock dividend or similar event with respect
to the Common Stock, and any other shares of Common Stock acquired by Buyer as
permitted by the Stock Agreement.

        "REGISTRABLE SECURITIES" means the Registrable Common Stock. As to any
particular Registrable Securities, such Registrable Securities shall cease to be
Registrable Securities as soon as they (i) have been sold or otherwise disposed
of pursuant to a registration statement that was filed with the Commission and
declared effective under the Securities Act, (ii) are eligible for sale pursuant

<PAGE>

to Rule 144 without being subject to applicable volume limitations thereunder,
(iii) have been otherwise sold, transferred or disposed of by a Holder to any
Person that is not a Holder, or (iv) have ceased to be outstanding.

        "REGISTRATION EXPENSES" means Registration Expenses as defined in
Section 3.02.

        "RULE 144" means Rule 144 (or any successor rule of similar effect)
promulgated under the Securities Act.

        "SELLING HOLDER" means any Holder who is selling Registrable Securities
pursuant to a public offering registered hereunder.

        "UNDERWRITER" means a securities dealer who purchases any Registrable
Securities as principal and not as part of such dealer's market-making
activities.

        Section 1.02. Internal References. Unless the context indicates
otherwise, references to Articles, Sections and paragraphs shall refer to the
corresponding articles, sections and paragraphs in this Exhibit B, and
references to the parties shall mean the parties to the Stock Purchase
Agreement.

                                   ARTICLE 2
                               REGISTRATION RIGHTS

        Section 2.01. Demand Registration. (a) Buyer, on its own behalf and on
behalf of the other Holders, may make up to three written requests for
registration under the Securities Act of all or any part of the Registrable
Securities held by the Holders (each, a "DEMAND REGISTRATION"); provided that
(i) no Demand Registration may be requested within 180 days after the preceding
request for a Demand Registration, and (ii) each Demand Registration must be (x)
in respect of Registrable Securities with a fair market value of at least
$10,000,000 or (y) in respect of all remaining Registrable Securities and have a
fair market value of at least $5,000,000 and, provided further, at the request
of the Corporation, Buyer and Holders shall accept in lieu of one of the Demand
Registrations, an agreement by the Corporation to permit sales of Registrable
Securities under a "shelf registration" under Rule 415 if such registration
remains continuously effective for a period of not less than 180 days. Such
request will specify the aggregate number of shares of Registrable Securities
proposed to be sold and will also specify the intended method of disposition
thereof. A registration will not count as a Demand Registration until it has
become effective; provided should a Demand Registration not become effective due
to the failure of a Holder to perform its obligations under this Exhibit B or
the inability of the requesting Holders to reach agreement with the underwriters
for the proposed sale (the "UNDERWRITERS") on price or other customary terms for
such transaction, or in the event the requesting Holders withdraw or do not
pursue the request for the Demand Registration (in each of the foregoing cases,
provided that at such time

                                       2
<PAGE>

the Corporation is in compliance in all material respects with its obligations
under this Exhibit B), then such Demand Registration shall be deemed to have
been effected (provided that if the Demand Registration does not become
effective because of a Material Adverse Effect that occurs subsequent to the
date of the written request made by the requesting Holders, then the Demand
Registration shall not be deemed to have been effected).

        (b) In the event that Buyer withdraws or does not pursue a request for a
Demand Registration and, pursuant to Section 2.01(a) hereof, such Demand
Registration is deemed to have been effected, the Holders may reacquire such
Demand Registration (such that the withdrawal or failure to pursue a request
will not count as a Demand Registration hereunder) if the Selling Holders
reimburse the Corporation for any and all Registration Expenses incurred by the
Corporation in connection with such request for a Demand Registration; provided
that the right to reacquire a Demand Registration may be exercised only once.

        (c) If the Selling Holders so elect, the offering of such Registrable
Securities pursuant to such Demand Registration shall be in the form of an
underwritten offering. A majority in interest of the Selling Holders shall have
the right to select the managing Underwriters and any additional investment
bankers and managers to be used in connection with any offering under this
Section 2.01, subject to the Corporation's approval, which approval shall not be
unreasonably withheld.

        (d) The Selling Holders will inform the Corporation of the time and
manner of any disposition of Registrable Common Stock, and agree to reasonably
cooperate with the Corporation in effecting the disposition of the Registrable
Common Stock in a manner that does not unreasonably disrupt the public trading
market for the Common Stock.

        (e) The Corporation will have the right to preempt any Demand
Registration with a primary registration by delivering written notice (within
five business days after the Corporation has received a request for such Demand
Registration) of such intention to Buyer indicating that the Corporation has
identified a specific business need and use for the proceeds of the sale of such
securities and the Corporation shall use commercially reasonable efforts to
effect a primary registration within 60 days of such notice. In the ensuing
primary registration, the Holders will have such piggyback registration rights
as are set forth in Section 2.02 hereof. Upon the Corporation's preemption of a
requested Demand Registration, such requested registration will not count as the
Holders' Demand Registration; provided that a Demand Registration will not be
deemed preempted if the Holders are permitted to sell all requested securities
in connection with the ensuing primary offering by exercising their piggyback
registration rights. The Corporation may exercise the right to preempt only
twice in any 360-day period; provided, that during any 360 day period there
shall be a period of at least 120 consecutive days during which the Selling
Holders may effect a Demand Registration.

                                       3
<PAGE>

        Section 2.02. Piggyback Registration. If the Corporation proposes to
file a registration statement under the Securities Act with respect to an
offering of Common Stock for its own account or for the account of another
Person (other than a registration statement on Form S-4 or S-8 or pursuant to
Rule 415 (or any substitute form or rule, respectively, that may be adopted by
the Commission)), the Corporation shall give written notice of such proposed
filing to the Holders at the address set forth in the share register of the
Corporation as soon as reasonably practicable (but in no event less than 10 days
before the anticipated filing date), undertaking to provide each Holder the
opportunity to register on the same terms and conditions such number of shares
of Registrable Common Stock as such Holder may request (a "PIGGYBACK
REGISTRATION"). Each Holder will have five business days after receipt of any
such notice to notify the Corporation as to whether any it wishes to participate
in a Piggyback Registration; provided that should a Holder fail to provide
timely notice to the Corporation, such Holder will forfeit any rights to
participate in the Piggyback Registration with respect to such proposed
offering. In the event that the registration statement is filed on behalf of a
Person other than the Corporation, the Corporation will use commercially
reasonable efforts to have the shares of Registrable Common Stock that the
Holders wish to sell included in the registration statement. If the Corporation
shall determine in its sole discretion not to register or to delay the proposed
offering, the Corporation may, at its election, provide written notice of such
determination to the Holders and (i) in the case of a determination not to
effect the proposed offering, shall thereupon be relieved of the obligation to
register such Registrable Common Stock in connection therewith, and (ii) in the
case of a determination to delay a proposed offering, shall thereupon be
permitted to delay registering such Registrable Common Stock for the same period
as the delay in respect of the proposed offering. As between the Corporation and
the Selling Holders, the Corporation shall be entitled to select the
Underwriters in connection with any Piggyback Registration.

        Section 2.03. Reduction of Offering. Notwithstanding anything contained
herein, if the managing Underwriter of an offering described in Section 2.01 or
2.02 states in writing that the size of the offering that Holders, the
Corporation and any other Persons intend to make is such that the inclusion of
the Registrable Securities would be likely to materially and adversely affect
the price, timing or distribution of the offering, then the amount of
Registrable Securities to be offered for the account of Holders shall be reduced
to the extent necessary to reduce the total amount of securities to be included
in such offering to the amount recommended by such managing Underwriter;
provided that in the case of a Piggyback Registration, if securities are being
offered for the account of Persons other than the Corporation, then the
proportion by which the amount of Registrable Securities intended to be offered
for the account of Holders is reduced shall not exceed the proportion by which
the amount of securities intended to be offered for the account of such other
Persons (other than any Person exercising a demand registration right) is
reduced; provided further that in the case of a Demand Registration, the amount
of Registrable Securities to be offered for the account of the Holders making
the Demand Registration shall be reduced only

                                       4
<PAGE>

after the amount of securities to be offered for the account of the Corporation
and any other Persons has been reduced to zero.

        Section 2.04. Preservation of Rights. The Corporation will not grant any
registration rights to third parties which contravene the rights granted
hereunder.

                                   ARTICLE 3
                             REGISTRATION PROCEDURES

        Section 3.01. Filings, Information. In connection with the registration
of Registrable Securities pursuant to Section 2.01 hereof, the Corporation will
use commercially reasonable efforts to effect the registration of such
Registrable Securities as promptly as is reasonably practicable, and in
connection with any such request:

        (a) The Corporation will expeditiously prepare and file with the
Commission a registration statement on any form for which the Corporation then
qualifies and which counsel for the Corporation shall deem appropriate and
available for the sale of the Registrable Securities to be registered thereunder
in accordance with the intended method of distribution thereof, and use
commercially reasonable efforts to cause such filed registration statement to
become and remain effective for such period, not to exceed 60 days, as may be
reasonably necessary to effect the sale of such securities; provided that if the
Corporation shall furnish to Buyer a certificate signed by the Corporation's
Chairman, President or any Vice-President stating that in his or her good faith
judgment it would be detrimental or otherwise disadvantageous to the Corporation
or its shareholders for such a registration statement to be filed as
expeditiously as possible (because the sale of Registrable Securities covered by
such Registration Statement or the disclosure of information in any related
prospectus or prospectus supplement would materially interfere with any
acquisition, financing or other material event or transaction which is then
intended or the public disclosure of which at the time would be materially
prejudicial to the Corporation), the Corporation may postpone the filing or
effectiveness of a registration statement for a period of not more than 120
days; provided, that during any 360 day period there shall be a period of at
least 120 consecutive days during which the Corporation will make a registration
statement available under this Exhibit B; and provided further, that if (i) the
effective date of any registration statement filed pursuant to a Demand
Registration would otherwise be at least 45 calendar days, but fewer than 90
calendar days, after the end of the Corporation's fiscal year, and (ii) the
Securities Act requires the Corporation to include audited financials as of the
end of such fiscal year, the Corporation may delay the effectiveness of such
registration statement for such period as is reasonably necessary to include
therein its audited financial statements for such fiscal year.

        (b) The Corporation will, if requested, prior to filing such
registration statement or any amendment or supplement thereto, furnish to the
Selling

                                       5
<PAGE>

Holders, and each applicable managing Underwriter, if any, copies thereof, and
thereafter furnish to the Selling Holders and each such Underwriter, if any,
such number of copies of such registration statement, amendment and supplement
thereto (in each case including all exhibits thereto and documents incorporated
by reference therein) and the prospectus included in such registration statement
(including each preliminary prospectus) as the Selling Holders or each such
Underwriter may reasonably request in order to facilitate the sale of the
Registrable Securities by the Selling Holders.

        (c) After the filing of the registration statement, the Corporation will
promptly notify the Selling Holders of any stop order issued or, to the
Corporation's knowledge, threatened to be issued by the Commission and take all
reasonable actions required to prevent the entry of such stop order or to remove
it if entered.

        (d) The Corporation will use commercially reasonable efforts to qualify
the Registrable Securities for offer and sale under such other securities or
blue sky laws of such jurisdictions in the United States as the Selling Holders
reasonably request; provided that the Corporation will not be required to (i)
qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph 3.01(d), (ii) subject
itself to taxation in any such jurisdiction or (iii) consent to general service
of process in any such jurisdiction.

        (e) The Corporation will as promptly as is practicable notify the
Selling Holders, at any time when a prospectus relating to the sale of the
Registrable Securities is required by law to be delivered in connection with
sales by an Underwriter or dealer, of the occurrence of any event requiring the
preparation of a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of such Registrable Securities, such
prospectus will not contain an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading and promptly make available to the Selling Holders, and to
the Underwriters any such supplement or amendment. Upon receipt of any notice of
the occurrence of any event of the kind described in the preceding sentence,
Selling Holders will forthwith discontinue the offer and sale of Registrable
Securities pursuant to the registration statement covering such Registrable
Securities until receipt by the Selling Holders and the Underwriters of the
copies of such supplemented or amended prospectus and, if so directed by the
Corporation, the Selling Holders will deliver to the Corporation all copies,
other than permanent file copies then in the possession of Selling Holders, of
the most recent prospectus covering such Registrable Securities at the time of
receipt of such notice. In the event the Corporation shall give such notice, the
Corporation shall extend the period during which such registration statement
shall be maintained effective as provided in Section 3.01(a) hereof by the
number of days during the period from and including the date of the giving of
such notice to the date when the Corporation shall make available to the Selling
Holders such supplemented or amended prospectus.

                                       6
<PAGE>

        (f) The Corporation will enter into customary agreements (including an
underwriting agreement in customary form) and take such other actions as are
required in order to expedite or facilitate the sale of such Registrable
Securities.

        (g) At the request of any Underwriter in connection with an underwritten
offering the Corporation will use commercially reasonable efforts to cause to be
furnished (i) an opinion of counsel, addressed to the Underwriters, covering
such customary matters as the managing Underwriter may reasonably request and
(ii) a comfort letter or comfort letters from the Corporation's independent
public accountants covering such customary matters as the managing Underwriter
may reasonably request.

        (h) The Corporation will make generally available to its security
holders, as soon as reasonably practicable, an earnings statement covering a
period of 12 months, beginning within three months after the effective date of
the registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act and the rules and regulations
of the Commission thereunder.

        (i) The Corporation will use its commercially reasonable efforts to
cause all such Registrable Common Stock to be listed on each securities exchange
or quoted on each inter-dealer quotation system on which the Common Stock is
then listed or quoted.

        The Corporation may require Selling Holders promptly to furnish in
writing to the Corporation such information regarding such Selling Holders, the
plan of distribution of the Registrable Securities and other information as the
Corporation may from time to time reasonably request or as may be legally
required in connection with such registration.

        Section 3.02. Registration Expenses. In connection with any Demand
Registration, the Corporation shall pay 50% of the following expenses incurred
in connection with such registration (the "REGISTRATION EXPENSES"): (i)
registration and filing fees with the Commission and the National Association of
Securities Dealers, Inc., (ii) fees and expenses of compliance with securities
or blue sky laws (including reasonable fees and disbursements of counsel in
connection with blue sky qualifications of the Registrable Securities), (iii)
printing expenses, (iv) fees and expenses incurred in connection with the
listing or quotation of the Registrable Securities, (v) fees and expenses of
counsel to the Corporation and the reasonable fees and expenses of independent
certified public accountants for the Corporation (including fees and expenses
associated with the special audits or the delivery of comfort letters) and (vi)
the reasonable fees and expenses of any additional experts retained by the
Corporation in connection with such registration. In connection with any
Piggyback Registration, the Corporation shall pay the Registration Expenses set
forth in clauses (ii) through (vi) of the preceding sentence. In connection with
any Demand Registration, the Selling Holders shall pay 50% of the expenses set
forth in the first sentence of this

                                       7
<PAGE>

Section 3.02 and (i) any underwriting fees, discounts or commissions
attributable to the sale of Registrable Securities, (ii) fees and expenses of
counsel for the Selling Holders and (iii) any out-of-pocket expenses of the
Selling Holders. In connection with any Piggyback Registration, the Selling
Holders shall pay, in addition to items (i) through (iii) of the preceding
sentence, registration and filing fees with the Commission and National
Association of Securities Dealers Inc., in proportion to the ratio that the
number of shares of Registrable Common Stock being registered for the account of
the Selling Holders bears to the aggregate number of shares of Common Stock
being included in the applicable registration statement.

                                   ARTICLE 4
                        INDEMNIFICATION AND CONTRIBUTION

        Section 4.01. Indemnification By The Corporation. The Corporation
agrees to indemnify and hold harmless each Selling Holder and its Affiliates and
their respective officers, directors, partners, stockholders, members,
employees, agents and representatives and each Person (if any) which controls a
Selling Holder within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all losses, claims,
damages, liabilities, costs and expenses (including reasonable attorneys' fees)
caused by, arising out of resulting from or related to any untrue statement or
alleged untrue statement of a material fact contained in any registration
statement or prospectus relating to the Registrable Securities (as amended or
supplemented if the Corporation shall have furnished any amendments or
supplements thereto), or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims,
damages or liabilities are caused by or contained in or based upon any
information furnished in writing to the Corporation by or on behalf of such
Selling Holder or any Underwriter expressly for use therein or by the Selling
Holder or Underwriter's failure to deliver a copy of the registration statement
or prospectus or any amendments or supplements thereto after the Corporation has
furnished Buyer or Underwriter with copies of the same.

        Section 4.02. Indemnification by Buyer. Each Selling Holder agrees to
indemnify and hold harmless the Corporation, its officers and directors, and
each Person, if any, which controls the Corporation within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act to the same
extent as the foregoing indemnity from the Corporation to each Selling Holder,
but only with reference to information furnished in writing by or on behalf of
such Selling Holder expressly for use in any registration statement or
prospectus relating to the Registrable Securities, or any amendment or
supplement thereto, or any preliminary prospectus.

                                       8
<PAGE>

        Section 4.03. Conduct of Indemnification Proceedings. In case any
proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to
Section 4.01 or Section 4.02, such Person (the "INDEMNIFIED PARTY") shall
promptly notify the Person against whom such indemnity may be sought (the
"INDEMNIFYING PARTY") in writing and the Indemnifying Party, upon the request of
the Indemnified Party, shall retain counsel reasonably satisfactory to such
Indemnified Party to represent such Indemnified Party and any others the
Indemnifying Party may designate in such proceeding and shall pay the fees and
disbursements of such counsel related to such proceeding. In any such
proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party unless (i) the Indemnifying Party and the Indemnified
Party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the Indemnified Party and the Indemnifying Party and, in the written
opinion of counsel for the Indemnified Party, representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the Indemnifying Party shall not,
in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
of attorneys (in addition to any local counsel) at any time for all such
Indemnified Parties, and that all such fees and expenses shall be reimbursed as
they are incurred. In the case of any such separate firm for the Indemnified
Parties, such firm shall be designated in writing by the Indemnified Parties
with the approval of the Indemnifying Party (which approval shall not be
unreasonably withheld). The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent (not to be unreasonably withheld), or if there be a
final judgment for the plaintiff, the Indemnifying Party shall indemnify and
hold harmless such Indemnified Parties from and against any loss or liability
(to the extent stated above) by reason of such settlement or judgment.

        Section 4.04. Contribution. If the indemnification provided for in this
Article 4 is unavailable to an Indemnified Party in respect of any losses,
claims, damages or liabilities in respect of which indemnity is to be provided
hereunder, then each such Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall to the fullest extent permitted by law contribute to
the amount paid or payable by such Indemnified Party as a result of such losses,
claims, damages or liabilities in such proportion as is appropriate to reflect
the relative fault of such party in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative fault of the Corporation,
a Selling Holder and the Underwriters shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by such party and

                                       9
<PAGE>

the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

        The Corporation and each Selling Holder agrees that it would not be just
and equitable if contribution pursuant to this Section 4.04 were determined by
pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation that does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
The amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages or liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such Indemnified Party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Article 4, no Selling Holder shall be
required to contribute any amount in excess of the amount by which the net
proceeds of the offering (before deducting expenses) received by such Selling
Holder exceeds the amount of any damages which such Selling Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

                                    ARTICLE 5
                                  MISCELLANEOUS

        Section 5.01. Participation In Underwritten Registrations. No Person
may participate in any underwritten registered offering contemplated hereunder
unless such Person (a) agrees to sell its securities on the basis provided in
any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements, (b) completes and executes all questionnaires, powers
of attorney, custody arrangements, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements and this Exhibit B and (c) furnishes in writing to the Corporation
such information regarding such Person, the plan of distribution of the
Registrable Securities and other information as the Corporation may from time to
time request or as may be legally required in connection with such registration.

        Section 5.02. Rule 144. The Corporation covenants that it will file any
reports required to be filed by it under the Securities Act and the Exchange Act
and that it will take such further action as the Holders may reasonably request
to the extent required from time to time to enable the Holders to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 under the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission. Upon the request of Buyer, the Corporation
will deliver to

                                       10
<PAGE>

Buyer a written statement as to whether it has complied with such reporting
requirements.

        Section 5.03. Holdback Agreements. Each Holder agrees, in the event of
an underwritten offering for the Corporation (whether for the account of the
Corporation or otherwise) not to offer, sell, contract to sell or otherwise
dispose of any Registrable Securities, or any securities convertible into or
exchangeable or exercisable for such securities, including any sale pursuant to
Rule 144 under the Securities Act (except as part of such underwritten
offering), during the period commencing on the date of the filing of the
registration statement and ending 180 days after the effective date of the
registration statement for such underwritten offering (or, in the case of an
offering pursuant to an effective shelf registration statement pursuant to Rule
415, the pricing date for such underwritten offering).

        Section 5.04. Termination. The registration rights granted under this
Agreement will terminate on December 31, 2006.

                                       11

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