Document:

Prepared by MERRILL CORPORATION www.edgaradvantage.com

    THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE SENIOR DEBT SECURITIES INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE
INDENTURE) OR A NOMINEE THEREOF. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR
BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

    UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY (AS DEFINED BELOW) OR TO ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

	REGISTERED	 	UNITEDHEALTH GROUP

INCORPORATED	 	400,000,000

CUSIP
	No. 1	 	7.50% Notes due November 15, 2005	 	No. 91324 PAA 0

    UNITEDHEALTH GROUP INCORPORATED, a Minnesota corporation (hereinafter called the "Company", which term includes any successor
corporation under the Indenture referred to below), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of FOUR HUNDRED
MILLION DOLLARS ($400,000,000) on November 15, 2005 (the "Stated Maturity"),
and to pay interest thereon from November 16, 2000 or from the most recent date to which interest has been paid or duly provided for, semi-annually on May 15 and
November 15 in each year (each, an "Interest Payment Date"), commencing May 15, 2001, and at Maturity, at the rate of 7.50% per annum, until the principal hereof is paid or duly made
available for payment. Interest on this Note shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest so payable and punctually paid
or duly provided for on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close
of business on the "Regular Record Date" for such interest, which shall be the May 1 or November 1 (whether or not a Business Day, as hereinafter defined) next preceding each such
Interest Payment Date. Any such interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to the registered Holder
hereof on the relevant Regular Record Date by virtue of having been such Holder, and may be paid (i) to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to the Holder of this Note not less than
10 days prior to such Special Record Date or (ii) in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Note may be listed, and upon
such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause (ii), such manner of payment shall be
deemed practicable by the Trustee. In the event that any Interest Payment Date is not a Business Day, the interest and, with 

respect to the Maturity Date, principal otherwise payable on such date will be paid the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date or Maturity
Date. "Business Day" shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in The City of New York or Minneapolis, Minnesota or at a place of payment are authorized
or obligated by law, regulation or executive order to remain closed. 

    Payment
of the principal of and the interest on this Note will be made at the office or agency of the Company maintained for that purpose in The City of New York, in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at
the option of the Company, interest may be paid by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. Payment of the principal of and
interest on this Note due at Maturity will be made in immediately available funds upon presentation of this Note. 

    Reference
is hereby made to the further provisions of this Note set forth on the reverse side hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place. 

    Unless
the certificate of authentication hereon has been executed by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this
Note shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose. 

    IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

	Dated: November 16, 2000	 	 	 	 
	 	 	UNITEDHEALTH GROUP INCORPORATED
	 

 	 
 	 

By:	 
 	 

 
	 	 	 	 	

	 	 	Name: Arnold H. Kaplan
	 	 	Title: Chief Financial Officer

	 	 	Attest:	 	 
	 	 	 	 	

	 	 	Name: David J. Lubben
	 	 	Title: Secretary
	 
 TRUSTEE'S CERTIFICATE OF

AUTHENTICATION	 
 	 

 	 
 	 

 
	 

This is one of the Securities of the series designated herein and issued pursuant to the within-mentioned Indenture.	 
 	 

 	 
 	 

 
	 

Dated: November 16, 2000	 
 	 

 	 
 	 

 
	 

THE BANK OF NEW YORK,
 as Trustee	 
 	 

 	 
 	 

 

	By:	 	/s/
	 	 
	 	 	Authorized Signatory	 	 

UnitedHealth Group Incorporated

7.50% Notes due November 15, 2005  

2

[REVERSE SIDE OF NOTE] 

    This
Note is one of a duly authorized issue of securities of the Company (herein called the "Notes") issued and to be issued in one or more series under a senior debt securities
Indenture dated as of November 15, 1998, as amended by an Amendment to Indenture dated as of November 6, 2000, as further supplemented by an Officers' Certificate and Company Order dated
November 16, 2000 pursuant to Section 301 of the Indenture (herein called, the "Indenture") between the Company and The Bank of New York, as Trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one
of the series designated on the face hereof, limited in initial aggregate principal amount to $400,000,000; provided, however, that the Company may, so long as no Event of Default has occurred and is
continuing, without the consent of the Holders of the Notes of this series, issue additional notes with the same terms as the Notes of this series, and such additional notes shall be considered part
of the same series under the Indenture as the Notes of this series. 

    The
Notes will not be entitled to any sinking fund. 

Redemption  

    The Notes are redeemable, in whole or in part at any time before the Stated Maturity, at the option of the Company at a Redemption Price equal to the greater
of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be
redeemed (excluding the portion of any such interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Yield (as defined below), plus 25 basis points, plus, in each case, accrued and unpaid interest to the Redemption Date. For this
purpose, the following terms have the following meanings: 

	•
	"Treasury
Yield" means, with respect to any Redemption Date, the rate per year equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

	•
	"Comparable
Treasury Issue" means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the
remaining term of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Notes.

	•
	"Comparable
Treasury Price" means, with respect to any Redemption Date, (i) the average of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding such Redemption Date, as set forth in the daily statistical release (or any successor
release) published by the Federal Reserve Bank of New York and designated "Composite 3:30 Quotations for U.S. Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such business day, (A) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such
Reference Treasury Dealer Quotations for such Redemption Date, or (B) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Reference
Treasury Dealer Quotations. 

3

	•
	"Independent
Investment Banker" means Goldman, Sachs & Co. or its successor or, if such firm is unwilling or unable to select the Comparable
Treasury Issue, one of the remaining Reference Treasury Dealers appointed by the Trustee after consultation with the Company.

	•
	"Reference
Treasury Dealer" means (i) each of Goldman, Sachs & Co. and any other primary U.S. Government securities dealer in New York City
(a Primary Treasury Dealer) designated by, and not affiliated with, Goldman, Sachs & Co., provided, however, that if Goldman, Sachs & Co.
or any of its designees shall cease to be a Primary Treasury Dealer, the Company will appoint another Primary Treasury Dealer as a substitute for such entity and (ii) any other Primary Treasury
Dealer selected by the Trustee.

	•
	"Reference
Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.

	•
	"business
day" means any day that is not a Saturday or Sunday and that, in the City of New York, is not a day on which banking institutions are generally
authorized or obligated by law to close. 

    A
notice of redemption may provide that it is subject to certain conditions that will be specified in the notice. If those conditions are not met, the redemption notice will be of no
effect and the Company will not be obligated to redeem this Note. 

    A
partial redemption of the Notes may be effected on a pro rata basis (and in such manner as complies with applicable legal and stock
exchange requirements, if any) or in such method as the Trustee, in the exercise of its reasonable discretion, deems fair and appropriate. The Trustee may provide for the selection for redemption of
portions in amounts of $1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to be redeemed, the entire outstanding amount of Notes held by such Holder, even if not a
multiple of $1,000, shall be redeemed. 

    Notice
of any redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of the Notes to be redeemed. 

    Unless
any Note called for redemption shall not be paid upon surrender thereof for redemption, on and after the Redemption Date interest will cease to accrue on the Notes or portions
thereof called for redemption. 

Miscellaneous Provisions  

    If an Event of Default with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and
with the effect provided in the Indenture. 

    The
Indenture contains provisions for defeasance at any time of the Company's obligations in respect of (i) the entire indebtedness of this Note or (ii) certain
restrictive covenants with respect to this Note, in each case upon compliance with certain conditions set forth therein. 

    The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the
Holders of the Securities of each series issued under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount
of the Securities of all series at the time Outstanding affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the
Securities of any series at the time Outstanding to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive
and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the registration of transfer hereof 

4

or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

    No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Note, at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed. 

    As
provided in the Indenture and subject to certain limitations set forth therein and in this Note, the transfer of this Note is registrable in the registry books of the Company, upon
surrender of this Note for registration of transfer at the office or agency of the Company maintained for the purpose in any place where the principal of (and premium, if any) and interest on this
Note are payable, duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by the Holder hereof or by his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

    The
Notes of this series are issuable only in fully registered form without coupons in minimal initial purchase amounts of $1,000 and any amount in excess thereafter which is an
integral multiple of $1,000. As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of
this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

    No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith, other than in certain cases provided in the Indenture. 

    Prior
to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note
is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

    This
Note shall be governed by and construed in accordance with the laws of the State of New York. 

    All
capitalized terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

5

ABBREVIATIONS  

    The following abbreviations, when used in this instrument, shall be construed as though they were written out in full according to applicable laws or
regulations: 

	TEN COM as tenants in common
	 

TEN ENT as tenants by the entireties
	 

JT TEN as joint tenants with right of survivorship and not as tenants in common
	 

UNIF GIFT MIN ACT	 
 	 

 	 
 	 

Custodian	 
 	 

 
	 	 	
	 	 	 	

	 	 	(Cust)	 	 	 	(Minor)

under
Uniform Gift to Minors Act 

(State) 

Additional
abbreviations may be used though not in the above list. 

6

    FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

PLEASE
INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE 

(Name
and address of assignee, including zip code, must be printed or typewritten) 

the
within Note, and all rights thereunder, hereby irrevocably constituting and appointing 

Attorney
to transfer said Note on the books of the within Company, with full power of substitution in the premises 

	Dated	 	 	 	 
	 	 	
	 	

	 

 	 
 	 

 	 
 	 

    NOTICE:
The signature on this assignment must correspond with the name as written upon the face of the within Note in every particular, without alteration or enlargement or any change
whatsoever. 

    SIGNATURE
GUARANTEE: Signatures must be guaranteed by an "eligible institution" meeting the requirements of the [Registrar], which requirements include
membership or participation in the Security Transfer Agent Medallion Program ("STAMP") or such other "signature guarantee program" as may be determined by the [Registrar] in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

7<PAGE>

EXHIBIT 10(a)

                        DEEPHAVEN PRIVATE PLACEMENT LTD.
                      C/O DEEPHAVEN CAPITAL MANAGEMENT LLC
                                130 CHESHIRE LANE
                              MINNETONKA, MN 55305

                               HARP INVESTORS LLC
                          C/O WEC ASSET MANAGEMENT LLC
                             110 COLABAUGH POND ROAD
                           CROTON-ON-HUDSON, NY 10520

                                                                November 6, 2000

FORTEL, Inc.
46832 Lakeview Blvd.
Fremont, CA 94538
Attention: Hank Harris

                           RE: FORTEL, INC (THE "COMPANY")

Ladies and Gentlemen,

                  Reference is made to: (i) the Securities Purchase Agreement,
dated as of July 18, 2000 (the "PURCHASE AGREEMENT") among the Company,
Deephaven Private Placement Ltd. and Harp Investors LLC (collectively, the
"INVESTORS"), (ii) the Registration Rights Agreement among the Company and the
Investors, dated July 18, 2000 (the "REGISTRATION RIGHTS AGREEMENT") and (iii)
the common stock purchase warrants, dated July 18, 2000, issued to the Investors
pursuant to the Purchase Agreement (the "WARRANTS").

                  The Company and the Investors agree as follows:

         1.       Section 3.14 of the Purchase Agreement shall be amended
and restated in its entirety as follows:

                  "LIQUIDATED DAMAGES. If at any time while the Securities are
outstanding: (i) the Common Stock shall fail to be listed for trading on the
NASDAQ or on a Subsequent Market or shall be suspended from trading on the
NASDAQ or on a Subsequent Market, in either case, for more than three Trading
Days (which need not be consecutive Trading Days), then, upon delivery of a
written

<PAGE>

notice by a Purchaser, on such third Trading Day and each weekly anniversary of
such third Trading Day thereafter until the Common Stock shall be listed for
trading on the NASDAQ and not suspended from trading on the NASDAQ, or (ii) if
the Company shall fail to observe or perform any other covenant, agreement or
warranty contained in, or otherwise commit any breach of the Transaction
Documents, and such failure or breach shall not have been remedied within five
Business Days after the date on which written notice of such failure or breach
shall have been given, then on such fifth Business Day and each weekly
anniversary of such fifth Business Day thereafter until such failure or breach
has been cured, the Company shall, in connection with the delivery of a written
notice pursuant to subsections (i) and (ii) hereof, pay an amount in cash to
each Purchaser, as liquidated damages and not as penalty, equal to the product
of (A) $400,000 and (B) the quotient obtained by dividing: (x) the number of
Shares issued and sold to such Purchaser on the Closing Date by (y) the number
of Shares issued and sold by the Company on the Closing Date, PROVIDED, that:
(A) the Company shall not be obligated to pay to a Purchaser for any single such
event in excess of 20% of the purchase price paid by such Purchaser for Shares
(as reflected on such Purchaser's signature page to this Agreement) and (B) the
aggregate amount of liquidated damages payable to each Purchaser pursuant to
this Section 3.14 shall not exceed 120% of the purchase price paid by such
Purchaser for Shares (as reflected on such Purchaser's signature page to this
Agreement) held by such Purchaser on the date a written notice is first
delivered pursuant to either subsection (i) or subsection (ii) hereof (the
amount contemplated by subsection (B) hereof, the "MAXIMUM LIQUIDATED DAMAGES").
If the Company fails to pay such liquidated damages in full pursuant to this
Section within seven days after the date first payable, the Company will pay
each Purchaser to whom such payment has not been made in full interest thereon
at a rate of 18% per annum or such lesser maximum amount that is permitted to be
paid by applicable law, accruing daily until such amount, plus all such interest
thereon, is paid in full."

         2.       The following section shall be added as a new Section 3.15 of
the Purchase Agreement:

         "While any Securities are outstanding, the Company shall not consummate
or agree to consummate a "Rule 13e-3 transaction" (as defined in Rule 13e-3
under the Exchange Act)."

         3.       Section 3(c) of the Warrants shall be amended by adding the
following sentence at the end of such Section:

                  "On the date, if any, that the Company shall have, pursuant
to Section 3.14 of the Purchase Agreement, paid to the original Holder
either: (i) the Maximum Liquidated Damages or (ii) or liquidated damages
which, when added to a cash payment (which is not, other than pursuant to
this Section, contemplated by the Transaction Documents) made by the Company
to the original Holder, equals the Maximum Liquidated Damages, then all
Warrant Shares remaining unexercised hereunder shall expire and the Holder
shall have no further right to exercise this Warrant, provided that any Form
of Elections to Purchase delivered prior to such date shall be honored in
accordance with the terms hereof."

                                      -2-
<PAGE>

         4.       Section 10(c) of the Warrants shall be amended and restated
in its entirety as follows:

                "If the Company Stock is then listed for trading on the Nasdaq
or the Nasdaq SmallCap Market and the Company has not obtained the
Shareholder Approval (as defined below), then the Company may not, upon
exercise of this Warrant, issue in excess of the product of (i) 5,341,126
Warrant Shares (which equals 19.999% of the number of shares of Common Stock
outstanding on the Closing Date) and (ii) the quotient obtained by dividing
(x) the number of shares of Common Stock issued and sold to the original
Holder on the Closing Date by (y) the number of shares of Common Stock issued
and sold by the Company on the Closing Date (such number of shares, the
"Issuable Maximum"). If any Holder shall no longer hold Warrants then such
Holder's remaining portion of the Issuable Maximum shall be allocated
pro-rata among the remaining Holders. If on any Date of Exercise (A) the
Company Stock is listed for trading on the Nasdaq or the Nasdaq SmallCap
Market, (B) the aggregate number of shares of Common Stock that would then be
issuable upon exercise in full of this Warrant, together with any shares of
Common Stock previously issued upon exercise of this Warrant, would equal or
exceeds the Issuable Maximum, and (C) the Company shall not have previously
obtained the vote of shareholders, if any, as may be required by the
applicable rules and regulations of the Nasdaq Stock Market to approve the
issuance of shares of Common Stock in excess of the Issuable Maximum pursuant
to the terms hereof (the "Shareholder Approval"), then the Company shall
issue to the Holder a number of shares of Common Stock equal to the Issuable
Maximum and, with respect to the shares whose issuance would result in an
issuance of shares of Common Stock in excess of the Issuable Maximum, (the
"Excess Warrant Shares"), the Company shall, upon notice to the Holders,
either (1) use its best efforts to obtain the Shareholder Approval applicable
to such issuance as soon as possible, but in any event no later than 60 days
after such request (such 60th day, the "Target Date") or (2) cause its Common
Stock to be delisted from the Nasdaq and immediately thereafter quoted on the
OTC Bulletin Board. In the event the Company has elected to seek the
Shareholder Approval pursuant to clause (1) of the immediately preceding
sentence and the Company does not obtain the Shareholder Approval on or prior
to the Target Date, then, on the Target Date, the Company shall cause its
Common Stock to be delisted from the Nasdaq and immediately thereafter quoted
on the OTC Bulletin Board. The Company and the Holder understand and agree
that shares of Common Stock issued upon exercise of this Warrant and then
held by the Holder or an affiliate thereof may not cast votes or be deemed
outstanding for purposes of any vote to obtain the Shareholder Approval."

         5.       The following section shall be added as a new Section 3(f) of
the Warrants:

                  "(f) Notwithstanding the foregoing provisions of this Section
3, at any time during the period between the Closing Date and the Expiration
Date, within ten (10) Trading Days following the occurrence of any of the
following events, the Holder may acquire up to a number of Warrant Shares
calculated pursuant to Section 3(b) by delivering to the Company a Form of
Election to Purchase:

                                      -3-
<PAGE>

                           (i)      upon the  occurrence of any of (i) an
acquisition after the date hereof by an individual or legal entity or "group"
(as described in Rule 13d-5(b)(1) promulgated under the Exchange Act of in
excess of 1/3 of the voting securities of the Company, (ii) a replacement of
more than one-half of the members of the Company's board of directors which is
not approved by those individuals who are members of the board of directors on
the date hereof in one or a series of related transactions, (iii) the merger of
the Company with or into another entity, consolidation or sale of all or
substantially all of the assets of the Company in one or a series of related
transactions, unless following such transaction or series of transactions, the
holders of the Company's securities prior to the first such transaction continue
to hold at least 2/3 of the securities of the surviving entity or acquirer of
such assets or (iv) the execution by the Company of an agreement to which the
Company is a party or by which it is bound, providing for any of the events set
forth above in (i), (ii) or (iii);

                           (ii)     immediately prior to an assignment by the
Company for the benefit of creditors or commencement of a voluntary case under
Title 11 of the United States Code, or an entering into of an order for relief
in an involuntary case under Title 11 of the United States Code, or adoption by
the Company of a plan of liquidation or dissolution;

                           (iv)     For any period of three (3) Trading
Days (which need not be consecutive Trading Days) commencing on or after the
date of issuance of this Warrant, there shall be no closing bid price on the
Common Stock on the Nasdaq or a Subsequent Market;

                           (v)      The Common Stock fails to be listed or
quoted for trading on the Nasdaq or a Subsequent Market or for a period of three
(3) Trading Days (which need not be consecutive Trading Days);

                           (vi)     After the Effective Date, a holder of
Registrable Securities (as defined in the Registration Rights Agreement) is not
permitted to sell Registrable Securities under the Underlying Shares
Registration Statement for any reason for five (5) or more days (whether or not
consecutive); or

                           (vii)     The Company shall fail or default in the
timely performance of any material obligation under the Transaction Documents
and such failure or default shall continue uncured for a period of five (5)
Business Days after the date on which notice of such failure or default is
first given to the Company (it being understood that no prior notice need be
provided in the case of defaults which cannot reasonably be cured within a
5-day period)."

         6.       Section 2(c) of the Registration Rights Agreement shall be
amended by adding the following sentence at the end of such Section:

                  "Notwithstanding anything herein to the contrary, the Company
shall not be required to pay any liquidated damages pursuant to subsection (e)
of Section 2(c) if the Common Stock is

                                      -4-
<PAGE>

delisted from the Nasdaq and immediately thereafter quoted for trading on the
OTC Bulletin Board pursuant to the terms of Section 10(c) of the Warrants."

         7.       Except as expressly amended hereby, all terms, conditions and
provisions of the Purchase Agreement, Registration Rights Agreement and Warrants
shall remain unchanged and in full force and effect and are ratified and
reaffirmed in all respects.

         8.       The execution and delivery of this letter agreement by each
of the Investors and the Company has been duly authorized by all necessary
action on the part of each of the Investors and the Company and no further
action is required by each of the Investors and the Company. Each of the
Investors and the Company has the requisite corporate power and authority to
enter into this letter agreement and otherwise to carry out its obligations
thereunder. When delivered and executed in accordance with the terms hereof,
this letter agreement will constitute the valid and binding obligation of
each of the Company and the Investors enforceable against each of the Company
and the Investors in accordance with its terms.

         9.       This letter agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York, without
regard to the principles of conflicts of law thereof.

         10.       This letter agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if
such facsimile signature page were an original thereof.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                            SIGNATURE PAGE FOLLOWS]

                                      -5-
<PAGE>

         Please indicate your agreement with the foregoing by executing a
countersigned copy of this letter agreement and returning the same to our
attention together with a check for $5,000 in the name of Robinson Silverman
Pearce Aronsohn & Berman LLP in payment of the Investor's legal fees, whereupon
effective immediately thereafter this letter agreement shall become a legally
valid and binding agreement between the Investors and the Company.

                        Sincerely,

                        DEEPHAVEN PRIVATE PLACEMENT LTD.

                        By: /s/  Bruce Lieberman
                           Name:  Bruce Lieberman
                           Title:  Director- Private Placement Trading

                        HARP INVESTORS LLC

                        By: /s/ Daniel Sachs
                           Name:
                           Title:

Agreed and accepted:

FORTEL, INC.

By:  /s/ Henry C. Harris
         Name:  Henry C. Harris
         Title:  CFO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]