Document:

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                                  EXHIBIT 10(b)

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made and
entered into as of July 18, 2000, among FORTEL INC., a California corporation
(the "COMPANY"), and the investors signatory hereto (each such investor is a
"PURCHASER" and all such investors are, collectively, the "PURCHASERS").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof among the Company and the Purchasers (the "PURCHASE
AGREEMENT").

         The Company and the Purchasers hereby agree as follows:

         1.       DEFINITIONS

         Capitalized terms used and not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given such terms in
the Purchase Agreement. As used in this Agreement, the following terms shall
have the following meanings:

         "AFFILIATE" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under common control with
such Person. For the purposes of this definition, "CONTROL," when used with
respect to any Person, means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms of "AFFILIATED," "CONTROLLING" and "CONTROLLED" have meanings
correlative to the foregoing.

         "BUSINESS DAY" means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the State of
New York or California are authorized or required by law or other government
actions to close.

         "CLOSING DATE" shall have the meaning set forth in the Purchase
Agreement.

         "COMMISSION" means the Securities and Exchange Commission.

         "COMMON STOCK" means the Company's common stock, no par value, or such
securities in to which that such stock shall hereafter be reclassified.

         "EFFECTIVENESS DATE" means, with respect to the initial Registration
Statement required to be filed hereunder, the 90th day following the Closing
Date and, with respect to any additional Registration Statements which may be
required pursuant to Section 3(c), the 90th day following the date that notice
of the requirement to file such additional Registration Statement is provided.

         "EFFECTIVENESS PERIOD" shall have the meaning set forth in
Section 2(a).

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

                                       EXHIBIT 10(B)-1.
<PAGE>

         "FILING DATE" means the 30th day following the Closing Date and, with
respect to any additional Registration Statements which may be required pursuant
to Section 3(c), the 15th day following the date that notice of the requirement
to file such additional Registration Statement is provided.

         "HOLDER" or "HOLDERS" means the holder or holders, as the case may be,
from time to time of Registrable Securities.

         "INDEMNIFIED PARTY" shall have the meaning set forth in Section 5(c).

         "INDEMNIFYING PARTY" shall have the meaning set forth in Section 5(c).

         "LOSSES" shall have the meaning set forth in Section 5(a).

         "PERSON" means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

         "PROCEEDING" means an action, claim, suit, investigation or proceeding
(including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

         "PROSPECTUS" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

         "REGISTRABLE SECURITIES" means (i) the Shares and (ii) the shares of
Common Stock issuable upon exercise in full of the Warrants.

         "REGISTRATION STATEMENT" means the registration statement and any
additional registration statements contemplated by Section 3(c), including (in
each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

         "RULE 144" means Rule 144 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

         "RULE 415" means Rule 415 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

                                       EXHIBIT 10(B)-2.
<PAGE>

         "RULE 424" means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

         "SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

         "SHARES" means the shares of Common Stock issued and sold to the
Purchasers pursuant to the Purchase Agreement.

         "SPECIAL COUNSEL" means one special counsel to the Holders, for which
the Holders will be reimbursed by the Company pursuant to Section 4.

         "WARRANTS" shall have the meaning set forth in the Purchase Agreement.

         2.       SHELF REGISTRATION

         On       or prior to each Filing Date, the Company shall prepare and
                  file with the Commission a "Shelf" Registration Statement
                  covering the resale of all Registrable Securities for an
                  offering to be made on a continuous basis pursuant to Rule
                  415. The Registration Statement shall be on Form S-3 (except
                  if the Company is not then eligible to register for resale the
                  Registrable Securities on Form S-3, in which case such
                  registration shall be on another appropriate form) and shall
                  contain (except if otherwise directed by the Holders) the
                  "Plan of Distribution" attached hereto as Annex A. The Company
                  shall use its best efforts to cause the Registration Statement
                  to be declared effective under the Securities Act as promptly
                  as possible after the filing thereof, but in any event prior
                  to the Effectiveness Date, and shall use its best efforts to
                  keep such Registration Statement continuously effective under
                  the Securities Act until the date which is two years after the
                  date that such Registration Statement is declared effective by
                  the Commission or such earlier date when all Registrable
                  Securities covered by such Registration Statement have been
                  sold or may be sold without volume restrictions pursuant to
                  Rule 144(k) (the "EFFECTIVENESS PERIOD").

         The initial Registration Statement to be filed hereunder shall
                  include 5,341,1261 shares of the Company's Common Stock.

         If (a) a Registration Statement is not filed on or prior to its
                  Filing Date (if the Company files such Registration Statement
                  without affording the Holder the opportunity to review and
                  comment on the same as required by Section 3(a) hereof, the
                  Company shall not be deemed to have satisfied this clause
                  (a)), or (b) the Company fails to file with the Commission a
                  request for acceleration in accordance with Rule 461
                  promulgated under the Securities Act, within five days of the
                  date that the Company is notified (orally or in writing,
                  whichever is earlier) by the Commission that a Registration
                  Statement will not be "reviewed," or not

-----------------
(1) Represents 19.999% of 26,706,967, which is the total number of the
Company's issued and outstanding common stock as of this Agreement.

                                       EXHIBIT 10(B)-3.
<PAGE>

                  subject to further review, or (c) a Registration Statement
                  filed hereunder is not declared effective
                  by the Commission on or prior to its Effectiveness Date, or
                  (d) after a Registration Statement is filed with and
                  declared effective by the Commission, such
                  Registration Statement ceases to be effective as to all
                  Registrable Securities to which it is required to relate at
                  any time prior to the expiration of the Effectiveness Period
                  without being succeeded within ten Business Days by an
                  amendment to such Registration Statement or by a subsequent
                  Registration Statement filed with and declared effective by
                  the Commission, or (e) the Common Stock shall be delisted or
                  suspended from trading on the Nasdaq Smallcap Market
                  ("NASDAQ") or on the New York Stock Exchange, the American
                  Stock Exchange or Nasdaq National Market (each, a "SUBSEQUENT
                  MARKET") for more than three Trading Days (which need not be
                  consecutive Trading Days), or (f) the exercise rights of the
                  Holders pursuant to the Warrants are suspended for any reason,
                  or (g) an amendment to a Registration Statement is not filed
                  by the Company with the Commission within ten Business Days of
                  the Commission's notifying the Company that such amendment is
                  required in order for such Registration Statement to be
                  declared effective (any such failure or breach being referred
                  to as an "EVENT," and for purposes of clauses (a), (c), (f)
                  the date on which such Event occurs, or for purposes of clause
                  (b) the date on which such five day period is exceeded, or for
                  purposes of clauses (d) and (g) the date which such ten
                  Business Day-period is exceeded, or for purposes of clause (e)
                  the date on which such three Trading Day-period is exceeded,
                  being referred to as "EVENT DATE"), then, on each such Event
                  Date and every monthly anniversary thereof until the
                  applicable Event is cured, the Company shall pay to each
                  Holder an amount in cash, as liquidated damages and not as a
                  penalty, equal to 2.0% of the purchase price paid by such
                  Holder pursuant to the Purchase Agreement. If the Company
                  fails to pay any liquidated damages pursuant to this Section
                  in full within seven days after the date payable, the Company
                  will pay interest thereon at a rate of 18% per annum (or such
                  lesser maximum amount that is permitted to be paid by
                  applicable law) to the Holder, accruing daily from the date
                  such liquidated damages are due until such amounts, plus all
                  such interest thereon, are paid in full. The liquidated
                  damages pursuant to the terms hereof shall apply on a pro-rata
                  basis for any portion of a month prior to the cure of an
                  Event.

         3.       REGISTRATION PROCEDURES

         In connection with the Company's registration obligations hereunder,
the Company shall:

         Not less than five Business Days prior to the filing of each
                  Registration Statement or any related Prospectus or any
                  amendment or supplement thereto (including any document that
                  would be incorporated or deemed to be incorporated therein by
                  reference), the Company shall, (i) furnish to the Holders and
                  their Special Counsel copies of all such documents proposed to
                  be filed, which documents (other than those incorporated or
                  deemed to be incorporated by reference) will be subject to the
                  review of such Holders and their Special Counsel, and (ii)
                  cause its officers and directors, counsel and independent
                  certified public accountants to respond to

                                       EXHIBIT 10(B)-4.
<PAGE>

                  such inquiries as shall be necessary, in the reasonable
                  opinion of respective counsel to conduct a reasonable
                  investigation within the meaning of the Securities Act.
                  The Company shall not file the Registration Statement or
                  any such Prospectus or any amendments or supplements thereto
                  to which the Holders of a majority of the Registrable
                  Securities and their Special Counsel shall reasonably object,
                  PROVIDED, the Company is notified of such objection no later
                  than 3 Business Days after the Holders have been so furnished
                  copies of such documents.

         (i) Prepare and file with the Commission such amendments,
                  including post-effective amendments, to the Registration
                  Statement and the Prospectus used in connection therewith as
                  may be necessary to keep the Registration Statement
                  continuously effective as to the applicable Registrable
                  Securities for the Effectiveness Period and prepare and file
                  with the Commission such additional Registration Statements in
                  order to register for resale under the Securities Act all of
                  the Registrable Securities; (ii) cause the related Prospectus
                  to be amended or supplemented by any required Prospectus
                  supplement, and as so supplemented or amended to be filed
                  pursuant to Rule 424; (iii) respond as promptly as reasonably
                  possible, and in any event within ten Business Days, to any
                  comments received from the Commission with respect to the
                  Registration Statement or any amendment thereto and as
                  promptly as reasonably possible provide the Holders true and
                  complete copies of all correspondence from and to the
                  Commission relating to the Registration Statement; and (iv)
                  comply in all material respects with the provisions of the
                  Securities Act and the Exchange Act with respect to the
                  disposition of all Registrable Securities covered by the
                  Registration Statement during the applicable period in
                  accordance with the intended methods of disposition by the
                  Holders thereof set forth in the Registration Statement as so
                  amended or in such Prospectus as so supplemented.

         File additional Registration Statements if the number of
                  Registrable Securities at any time exceeds 85% of the number
                  of shares of Common Stock then registered in all their
                  existing Registration Statements hereunder.

         Notify the Holders of Registrable Securities to be sold and their
                  Special Counsel as promptly as reasonably possible (and, in
                  the case of (i)(A) below, not less than five Business Days
                  prior to such filing) and (if requested by any such Person)
                  confirm such notice in writing no later than one Business Day
                  following the day (i)(A) when a Prospectus or any Prospectus
                  supplement or post-effective amendment to the Registration
                  Statement is proposed to be filed; (B) when the Commission
                  notifies the Company whether there will be a "review" of such
                  Registration Statement and whenever the Commission comments in
                  writing on such Registration Statement (the Company shall
                  provide true and complete copies thereof and all written
                  responses thereto to each of the Holders); and (C) with
                  respect to the Registration Statement or any post-effective
                  amendment, when the same has become effective; (ii) of any
                  request by the Commission or any other Federal or state
                  governmental authority for amendments or supplements to the
                  Registration Statement or Prospectus or for additional
                  information; (iii) of the

                                       EXHIBIT 10(B)-5.
<PAGE>

                  issuance by the Commission of any stop order suspending the
                  effectiveness of the Registration Statement covering any or
                  all of the Registrable Securities or the initiation of any
                  Proceedings for that purpose; (iv) if at any time any of the
                  representations and warranties of the Company contained in
                  any agreement contemplated hereby ceases to be true and
                  correct in all material respects; (v) of the receipt by the
                  Company of any notification with respect to the
                  suspension of the qualification or exemption from
                  qualification of any of the Registrable Securities for sale in
                  any jurisdiction, or the initiation or threatening of any
                  Proceeding for such purpose; and (vi) of the occurrence of any
                  event or passage of time that makes the financial statements
                  included in the Registration Statement ineligible for
                  inclusion therein or any statement made in the Registration
                  Statement or Prospectus or any document incorporated or deemed
                  to be incorporated therein by reference untrue in any material
                  respect or that requires any revisions to the Registration
                  Statement, Prospectus or other documents so that, in the case
                  of the Registration Statement or the Prospectus, as the case
                  may be, it will not contain any 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 light
                  of the circumstances under which they were made, not
                  misleading.

         Promptly deliver to each Holder and their Special Counsel, without
                  charge, as many copies of the Prospectus or Prospectuses
                  (including each form of prospectus) and each amendment or
                  supplement thereto as such Persons may reasonably request. The
                  Company hereby consents to the use of such Prospectus and each
                  amendment or supplement thereto by each of the selling Holders
                  in connection with the offering and sale of the Registrable
                  Securities covered by such Prospectus and any amendment or
                  supplement thereto.

         Prior to any public offering of Registrable Securities, use its best
                  efforts to register or qualify or cooperate with the selling
                  Holders and their Special Counsel in connection with the
                  registration or qualification (or exemption from such
                  registration or qualification) of such Registrable Securities
                  for offer and sale under the securities or Blue Sky laws of
                  such jurisdictions within the United States as any Holder
                  requests in writing, to keep each such registration or
                  qualification (or exemption therefrom) effective during the
                  Effectiveness Period and to do any and all other acts or
                  things necessary or advisable to enable the disposition in
                  such jurisdictions of the Registrable Securities covered by a
                  Registration Statement; PROVIDED, THAT the Company shall not
                  be required to qualify generally to do business in any
                  jurisdiction where it is not then so qualified or subject the
                  Company to any material tax in any such jurisdiction where it
                  is not then so subject.

         Cooperate with the Holders to facilitate the timely preparation and
                  delivery of certificates representing Registrable Securities
                  to be delivered to a transferee pursuant to a Registration
                  Statement, which certificates shall be free, to the extent
                  permitted by the Purchase Agreement, of all restrictive
                  legends, and to enable such Registrable

                                       EXHIBIT 10(B)-6.
<PAGE>

                  Securities to be in such denominations and registered in
                  such names as any such Holders may request.

         Upon the occurrence of any event contemplated by Section 3(d)(vi),
                  as promptly as reasonably possible, prepare a supplement or
                  amendment, including a post-effective amendment, to the
                  Registration Statement or a supplement to the related
                  Prospectus or any document incorporated or deemed to be
                  incorporated therein by reference, and file any other required
                  document so that, as thereafter delivered, neither the
                  Registration Statement nor such Prospectus will contain an
                  untrue statement of a material fact or omit to state a
                  material fact required to be stated therein or necessary to
                  make the statements therein, in light of the circumstances
                  under which they were made, not misleading.

         Comply with all applicable rules and regulations of the Commission.

         4. REGISTRATION EXPENSES. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with the NASDAQ and any Subsequent Market on which the
Common Stock is then listed for trading, and (B) in compliance with applicable
state securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities and determination of
the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as requested by the Holders )), (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses requested by the Holders),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company and Special Counsel for the Holders (in the case of the
latter, up to a maximum of $5,000), and (v) fees and expenses of all other
Persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement.

         5.       INDEMNIFICATION

         INDEMNIFICATION BY THE COMPANY. The Company shall, notwithstanding any
                  termination of this Agreement, indemnify and hold harmless
                  each Holder, the officers, directors, agents, brokers
                  (including brokers who offer and sell Registrable Securities
                  as principal as a result of a pledge or any failure to perform
                  under a margin call of Common Stock), investment advisors and
                  employees of each of them, each Person who controls any such
                  Holder (within the meaning of Section 15 of the Securities Act
                  or Section 20 of the Exchange Act) and the officers,
                  directors, agents and employees of each such controlling
                  Person, to the fullest extent permitted by applicable law,
                  from and against any and all losses, claims, damages,
                  liabilities, costs (including, without limitation, costs of
                  preparation and attorneys' fees) and expenses (collectively,
                  "LOSSES"), as incurred, arising out of or relating to any
                  untrue or alleged untrue statement of a

                                       EXHIBIT 10(B)-7.
<PAGE>

                  material fact contained in the Registration Statement, any
                  Prospectus or any form of prospectus or in any amendment or
                  supplement thereto or in any preliminary prospectus, or
                  arising out of or relating to any omission or alleged omission
                  of a material fact required to be stated therein or necessary
                  to make the statements therein (in the case of any Prospectus
                  or form of prospectus or supplement thereto, in light of the
                  circumstances under which they were made) not misleading,
                  except to the extent, but only to the extent, that (1) such
                  untrue statements or omissions are based solely upon
                  information regarding such Holder furnished in writing to the
                  Company by such Holder expressly for use therein, or to the
                  extent that such information relates to such Holder or such
                  Holder's proposed method of distribution of Registrable
                  Securities and was reviewed and expressly approved in writing
                  by such Holder expressly for use in the Registration
                  Statement, such Prospectus or such form of Prospectus or in
                  any amendment or supplement thereto or (2) in the case of an
                  occurrence of an event of the type specified in Section
                  3(d)(ii)-(vi), the use by such Holder of an outdated or
                  defective Prospectus after the Company has notified such
                  Holder in writing that the Prospectus is outdated or defective
                  and prior to the receipt by such Holder of the Advice
                  contemplated in Section 6(e). The Company shall notify the
                  Holders promptly of the institution, threat or assertion of
                  any Proceeding of which the Company is aware in connection
                  with the transactions contemplated by this Agreement.

         INDEMNIFICATION BY HOLDERS. Each Holder shall, severally and not
                  jointly, indemnify and hold harmless the Company, its
                  directors, officers, agents and employees, each Person who
                  controls the Company (within the meaning of Section 15 of the
                  Securities Act and Section 20 of the Exchange Act), and the
                  directors, officers, agents or employees of such controlling
                  Persons, to the fullest extent permitted by applicable law,
                  from and against all Losses (as determined by a court of
                  competent jurisdiction in a final judgment not subject to
                  appeal or review) arising solely out of or based solely upon
                  any untrue statement of a material fact contained in any
                  Registration Statement, any Prospectus, or any form of
                  prospectus, or in any amendment or supplement thereto, or
                  arising solely out of or based solely upon any omission of a
                  material fact required to be stated therein or necessary to
                  make the statements therein not misleading to the extent, but
                  only to the extent, that such untrue statement or omission is
                  contained in any information so furnished in writing by such
                  Holder to the Company specifically for inclusion in such
                  Registration Statement or such Prospectus or to the extent
                  that (1) such untrue statements or omissions are based solely
                  upon information regarding such Holder furnished in writing to
                  the Company by such Holder expressly for use therein, or to
                  the extent that such information relates to such Holder or
                  such Holder's proposed method of distribution of Registrable
                  Securities and was reviewed and expressly approved in writing
                  by such Holder expressly for use in the Registration
                  Statement, such Prospectus or such form of Prospectus or in
                  any amendment or supplement thereto or (2) in the case of an
                  occurrence of an event of the type specified in Section
                  3(d)(ii)-(vi), the use by such Holder of

                                       EXHIBIT 10(B)-8.
<PAGE>

                  an outdated or defective Prospectus after the Company has
                  notified such Holder in writing that the Prospectus is
                  outdated or defective and prior to the receipt by such Holder
                  of the Advice contemplated in Section 6(e). In no event shall
                  the liability of any selling Holder hereunder be greater in
                  amount than the dollar amount of the net proceeds received by
                  such Holder upon the sale of the Registrable Securities giving
                  rise to such indemnification obligation.

         CONDUCT  OF INDEMNIFICATION PROCEEDINGS. If any Proceeding shall be
                  brought or asserted against any Person entitled to indemnity
                  hereunder (an "INDEMNIFIED PARTY"), such Indemnified Party
                  shall promptly notify the Person from whom indemnity is sought
                  (the "INDEMNIFYING PARTY") in writing, and the Indemnifying
                  Party shall assume the defense thereof, including the
                  employment of counsel reasonably satisfactory to the
                  Indemnified Party and the payment of all fees and expenses
                  incurred in connection with defense thereof; PROVIDED, THAT
                  the failure of any Indemnified Party to give such notice shall
                  not relieve the Indemnifying Party of its obligations or
                  liabilities pursuant to this Agreement, except (and only) to
                  the extent that it shall be finally determined by a court of
                  competent jurisdiction (which determination is not subject to
                  appeal or further review) that such failure shall have
                  proximately and materially adversely prejudiced the
                  Indemnifying Party.

         An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the expense of
the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

         All fees and expenses of the Indemnified Party (including reasonable
fees and expenses to the extent incurred in connection with investigating or
preparing to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within ten
Business Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled to
indemnification hereunder; PROVIDED, THAT the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to
the extent it is finally judicially determined that such Indemnified Party is
not entitled to indemnification hereunder).

                                       EXHIBIT 10(B)-9.
<PAGE>

         CONTRIBUTION. If a claim for indemnification under Section 5(a) or 5(b)
                  is unavailable to an Indemnified Party (by reason of public
                  policy or otherwise), then each Indemnifying Party, in lieu of
                  indemnifying such Indemnified Party, shall contribute to the
                  amount paid or payable by such Indemnified Party as a result
                  of such Losses, in such proportion as is appropriate to
                  reflect the relative fault of the Indemnifying Party and
                  Indemnified Party in connection with the actions, statements
                  or omissions that resulted in such Losses as well as any other
                  relevant equitable considerations. The relative fault of such
                  Indemnifying Party and Indemnified Party shall be determined
                  by reference to, among other things, whether any action in
                  question, including any untrue or alleged untrue statement of
                  a material fact or omission or alleged omission of a material
                  fact, has been taken or made by, or relates to information
                  supplied by, such Indemnifying Party or Indemnified Party, and
                  the parties' relative intent, knowledge, access to information
                  and opportunity to correct or prevent such action, statement
                  or omission. The amount paid or payable by a party as a result
                  of any Losses shall be deemed to include, subject to the
                  limitations set forth in Section 5(c), any reasonable
                  attorneys' or other reasonable fees or expenses incurred by
                  such party in connection with any Proceeding to the extent
                  such party would have been indemnified for such fees or
                  expenses if the indemnification provided for in this Section
                  was available to such party in accordance with its terms.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by PRO RATA
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

         The indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

         6.       MISCELLANEOUS

         AMENDMENTS AND WAIVERS. The provisions of this Agreement, including the
                  provisions of this sentence, may not be amended, modified or
                  supplemented, and waivers or consents to departures from the
                  provisions hereof may not be given, unless the same shall be
                  in writing and signed by the Company and the Holders of at
                  least two-thirds of the then outstanding Registrable
                  Securities. Notwithstanding the foregoing, a waiver or consent
                  to depart from the provisions hereof with respect to a matter
                  that relates exclusively to the rights of Holders and that
                  does not directly or indirectly affect the rights of other
                  Holders may be given by Holders of at least a majority of the
                  Registrable Securities to which such waiver or consent
                  relates; PROVIDED, HOWEVER, that the provisions of this
                  sentence may not be amended, modified, or supplemented except
                  in accordance with the provisions of the immediately preceding
                  sentence.

                                       EXHIBIT 10(B)-10.
<PAGE>

         NO INCONSISTENT AGREEMENTS. Neither the Company nor any of its
                  subsidiaries has entered, as of the date hereof, nor shall the
                  Company or any of its subsidiaries, on or after the date of
                  this Agreement, enter into any agreement with respect to its
                  securities that would have the effect of impairing the rights
                  granted to the Holders in this Agreement or otherwise
                  conflicts with the provisions hereof. Except as and to the
                  extent specified in Schedule 6(b) hereto, neither the Company
                  nor any of its subsidiaries has previously entered into any
                  agreement granting any registration rights with respect to any
                  of its securities to any Person.

         NO PIGGYBACK ON REGISTRATIONS. Except as and to the extent
                  specified in Schedule 6(b) hereto, neither the Company nor any
                  of its security holders (other than the Holders in such
                  capacity pursuant hereto) may include securities of the
                  Company in the Registration Statement other than the
                  Registrable Securities, and the Company shall not after the
                  date hereof enter into any agreement providing any such right
                  to any of its security holders.

         COMPLIANCE. Each Holder covenants and agrees that it will comply with
                  the prospectus delivery requirements of the Securities Act as
                  applicable to it in connection with sales of Registrable
                  Securities pursuant to the Registration Statement.

         DISCONTINUED DISPOSITION. Each Holder agrees by its acquisition of such
                  Registrable Securities that, upon receipt of a notice from the
                  Company of the occurrence of any event of the kind described
                  in Sections 3(d)(ii), 3(d)(iii), 3(d)(iv), 3(d)(v) or
                  3(d)(vi), such Holder will forthwith discontinue disposition
                  of such Registrable Securities under the Registration
                  Statement until such Holder's receipt of the copies of the
                  supplemented Prospectus and/or amended Registration Statement
                  contemplated by Section 3(j), or until it is advised in
                  writing (the "ADVICE") by the Company that the use of the
                  applicable Prospectus may be resumed, and, in either case, has
                  received copies of any additional or supplemental filings that
                  are incorporated or deemed to be incorporated by reference in
                  such Prospectus or Registration Statement. The Company may
                  provide appropriate stop orders to enforce the provisions of
                  this paragraph.

         PIGGY-BACK REGISTRATIONS. If at any time during the Effectiveness
                  Period there is not an effective Registration Statement
                  covering all of the Registrable Securities and the Company
                  shall determine to prepare and file with the Commission a
                  registration statement relating to an offering for its own
                  account or the account of others under the Securities Act of
                  any of its equity securities, other than on Form S-4 or Form
                  S-8 (each as promulgated under the Securities Act) or their
                  then equivalents relating to equity securities to be issued
                  solely in connection with any acquisition of any entity or
                  business or equity securities issuable in connection with
                  stock option or other employee benefit plans, then the Company
                  shall send to each Holder written notice of such determination
                  and, if within fifteen days after receipt of such notice, any
                  such Holder shall so request in writing, the Company shall
                  include in such registration statement all or any part of such
                  Registrable Securities such holder requests to be registered.

                                       EXHIBIT 10(B)-11.
<PAGE>

         NOTICES. Any and all notices or other communications or deliveries
                  required or permitted to be provided hereunder shall be in
                  writing and shall be deemed given and effective on the
                  earliest of (i) the date of transmission, if such notice or
                  communication is delivered via facsimile at the facsimile
                  telephone number specified in this Section prior to 6:30 p.m.
                  (New York City time) on a Business Day, (ii) the Business Day
                  after the date of transmission, if such notice or
                  communication is delivered via facsimile at the facsimile
                  telephone number specified in this Agreement later than 6:30
                  p.m. (New York City time) on any date and earlier than 11:59
                  p.m. (New York City time) on such date, (iii) the Business Day
                  following the date of mailing, if sent by U.S. nationally
                  recognized overnight courier service, or (iv) upon actual
                  receipt by the party to whom such notice is required to be
                  given. The address for such notices and communications shall
                  be as follows:

         If to the Company:         FORTEL, Inc.
                                    46832 Lakeview Boulevard
                                    Fremont, CA 94538
                                    Facsimile No.: (510) 440-9696
                                    Attn: Chief Financial Officer and Chief
                                    Executive Officer

         If  to a Purchaser:        To the address set forth
                                    under such Purchaser's name on the signature
                                    pages hereto.

         If to any other Person who is then the registered Holder:

                                    To the address of such Holder as it appears
                                    in the stock transfer books of the Company

or such other address as may be designated in writing hereafter, in the same
manner, by such Person.

         SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of
                  and be binding upon the successors and permitted assigns of
                  each of the parties and shall inure to the benefit of each
                  Holder. The Company may not assign its rights or obligations
                  hereunder without the prior written consent of each Holder.
                  Each Holder may assign their respective rights hereunder in
                  the manner and to the Persons as permitted under the Purchase
                  Agreement.

         COUNTERPARTS. This Agreement may be executed in any number of
                  counterparts, each of which when so executed shall be deemed
                  to be an original and, all of which taken together shall
                  constitute one and the same Agreement. In the event that any
                  signature is delivered by facsimile transmission, such
                  signature shall create a valid 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 were the original thereof.

                                       EXHIBIT 10(B)-12.
<PAGE>

         GOVERNING LAW. All questions concerning the construction, validity,
                  enforcement and interpretation of this 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. Each party hereby
                  irrevocably submits to the exclusive jurisdiction of the state
                  and federal courts sitting in the City of New York, borough of
                  Manhattan, for the adjudication of any dispute hereunder or in
                  connection herewith or with any transaction contemplated
                  hereby or discussed herein, and hereby irrevocably waives, and
                  agrees not to assert in any suit, action or proceeding, any
                  claim that it is not personally subject to the jurisdiction of
                  any such court, that such suit, action or proceeding is
                  improper. Each party hereby irrevocably waives personal
                  service of process and consents to process being served in any
                  such suit, action or proceeding by mailing a copy thereof to
                  such party at the address in effect for notices to it under
                  this Agreement and agrees that such service shall constitute
                  good and sufficient service of process and notice thereof.
                  Nothing contained herein shall be deemed to limit in any way
                  any right to serve process in any manner permitted by law.

         CUMULATIVE REMEDIES. The remedies provided herein are cumulative and
                  not exclusive of any remedies provided by law.

         SEVERABILITY. If any term, provision, covenant or restriction of this
                  Agreement is held by a court of competent jurisdiction to be
                  invalid, illegal, void or unenforceable, the remainder of the
                  terms, provisions, covenants and restrictions set forth herein
                  shall remain in full force and effect and shall in no way be
                  affected, impaired or invalidated, and the parties hereto
                  shall use their reasonable efforts to find and employ an
                  alternative means to achieve the same or substantially the
                  same result as that contemplated by such term, provision,
                  covenant or restriction. It is hereby stipulated and declared
                  to be the intention of the parties that they would have
                  executed the remaining terms, provisions, covenants and
                  restrictions without including any of such that may be
                  hereafter declared invalid, illegal, void or unenforceable.

         HEADINGS. The headings in this Agreement are for convenience of
                  reference only and shall not limit or otherwise affect the
                  meaning hereof.

                                       EXHIBIT 10(B)-13.
<PAGE>

         INDEPENDENT NATURE OF PURCHASERS' OBLIGATIONS AND RIGHTS. The
                  obligations of each Purchaser hereunder is several and not
                  joint with the obligations of any other Purchaser hereunder,
                  and no Purchaser shall be responsible in any way for the
                  performance of the obligations of any other Purchaser
                  hereunder. Nothing contained herein or in any other agreement
                  or document delivered at any closing, and no action taken by
                  any Purchaser pursuant hereto or thereto, shall be deemed to
                  constitute the Purchasers as a partnership, an association, a
                  joint venture or any other kind of entity, or create a
                  presumption that the Purchasers are in any way acting in
                  concert with respect to such obligations or the transactions
                  contemplated by this Agreement. Each Purchaser shall be
                  entitled to protect and enforce its rights, including without
                  limitation the rights arising out of this Agreement, and it
                  shall not be necessary for any other Purchaser to be joined as
                  an additional party in any proceeding for such purpose.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                           SIGNATURE PAGES TO FOLLOW]

                                       EXHIBIT 10(B)-14.
<PAGE>

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

                                      FORTEL INC.

                                      By: S/
                                          --------------------------------------
                                          Name: Anna M. McCann
                                               ---------------------------------

                                          Title:CFO

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES OF PURCHASER TO FOLLOW]

                SIGNATURE PAGES TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                     DEEPHAVEN PRIVATE PLACEMENT TRADING LTD.

                     By: S/
                         Name: Gary Sobczak
                         Title: CFO

                     Address for Notice:

                     Deephaven Private Placement Trading Ltd.
                     c/o Deephaven Capital Management LLC
                     130 Cheshire Lane
                     Minnetonka, MN 55305
                     Facsimile No.: (612) 249-5300
                     Attn:    Bruce Lieberman

                     With copies to:

                     Robinson Silverman Pearce Aronsohn & Berman LLP
                     1290 Avenue of the Americas
                     New York, NY  10104
                     Facsimile No.:  (212) 541-4630 and (212) 541-1432
                     Attn:  Eric L. Cohen, Esq.

                     HARP INVESTORS LLC

                     By: S/
                         Name: Daniel Saks
                         Title: Managing Director

                     Address for Notice:

                     Harp Investors LLC
                     c/o WEC Asset Management LLC
                     110 Colabaugh Pond Road
                     Croton-on-Hudson, NY 10520
                     Facsimile No.: (914) 271-0889
                     Attn: Danny Saks

                  SIGNATURE PAGES TO REGISTRATION RIGHTS AGREEMENT
<PAGE>

                     With copies to:

                     Robinson Silverman Pearce Aronsohn & Berman LLP
                     1290 Avenue of the Americas
                     New York, NY  10104
                     Facsimile No.:  (212) 541-4630 and (212) 541-1432
                     Attn:  Eric L. Cohen, Esq.

                SIGNATURE PAGES TO REGISTRATION RIGHTS AGREEMENT
<PAGE>

                                     ANNEX A

                              PLAN OF DISTRIBUTION

         The Selling Stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of Common Stock on any stock exchange, market or trading facility on which the
shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. The Selling Stockholders may use any one or more of the
following methods when selling shares:

-        ordinary brokerage transactions and transactions in which the
         broker-dealer solicits purchasers;

-        block trades in which the broker-dealer will attempt to sell the shares
         as agent but may position and resell a portion of the block as
         principal to facilitate the transaction;

-        purchases by a broker-dealer as principal and resale by the
         broker-dealer for its account;

-        an exchange distribution in accordance with the rules of the applicable
         exchange;

-        privately negotiated transactions;

-        short sales

-        broker-dealers may agree with the Selling Stockholders to sell a
         specified number of such shares at a stipulated price per share;

-        a combination of any such methods of sale; and

-        any other method permitted pursuant to applicable law.

         The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

         The Selling Stockholders may also engage in short sales against the
box, puts and calls and other transactions in securities of the Company or
derivatives of Company securities and may sell or deliver shares in connection
with these trades. The Selling Stockholders may pledge their shares to their
brokers under the margin provisions of customer agreements. If a Selling
Stockholder defaults on a margin loan, the broker may, from time to time, offer
and sell the pledged shares. The Selling Stockholders have advised the Company
that they have not entered into any agreements, understandings or arrangements
with any underwriters or broker-dealers regarding the sale of their shares other
than ordinary course brokerage arrangements, nor is there an underwriter or
coordinating broker acting in connection with the proposed sale of shares by the
Selling Stockholders.

         Broker-dealers engaged by the Selling Stockholders may arrange for
other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the

                                       ANNEX A-1.
<PAGE>

Selling Stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
Selling Stockholders do not expect these commissions and discounts to exceed
what is customary in the types of transactions involved.

         The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.

         The Company is required to pay all fees and expenses incident to the
registration of the shares, including fees and disbursements of counsel to the
Selling Stockholders. The Company has agreed to indemnify the Selling
Stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.

                                       ANNEX A-2.<PAGE>

                                  EXHIBIT 10(c)

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                                   FORTEL INC.

                                REPRICING WARRANT

Warrant No.                                                 Dated: July 18, 2000

         FORTEL Inc., a California corporation (the "Company"), hereby certifies
that for value received __________________________________, or its registered
assigns ("Holder"), is entitled to purchase from the Company the total number of
shares of common stock, no par value per share (the "Common Stock"), of the
Company (each such share, a "Warrant Share" and all such shares, the "Warrant
Shares") calculated pursuant to Section 3 of this Warrant (subject to adjustment
for certain events as set forth herein) at an exercise price equal to $.001 per
share (the "Exercise Price"). Subject to the conditions for exercise set forth
herein, the Holder may acquire Warrant Shares hereunder at any time and from
time to time from the 22nd Trading Day (as defined in EXHIBIT A) following the
first date of issuance of this Warrant through the earlier to occur of (x) an
Expiration Event (as defined in Section 3(c)) and (y) 6:30 p.m. (New York City
time) on the 540th day following the Effective Date (as defined in EXHIBIT A)
(the early of (x) and (y), the "Expiration Date" and the period during which the
Holder may acquire Warrant Shares hereunder, the "Exercise Period"). This
Warrant is subject to the terms and conditions set forth below. Certain
capitalized terms used in this Warrant are defined in EXHIBIT A attached hereto.

         1. REGISTRATION OF WARRANT. The Company shall register this Warrant,
upon records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Holder hereof from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, and the Company shall not be affected by
notice to the contrary.

                                       EXHIBIT 10(c)-1.
<PAGE>

         2. RESTRICTION ON ASSIGNMENTS AND REGISTRATION OF TRANSFERS. (a) The
Company shall register the transfer of this Warrant in the Warrant Register upon
surrender of this Warrant, with the Form of Assignment attached hereto duly
completed and signed, to the Company at the address specified in Section 12.
Upon any such registration or transfer, a new warrant to purchase Common Stock,
in the form of this Warrant (any such new warrant, a "New Warrant"), evidencing
the portion of this Warrant so transferred shall be issued to the transferee.
The acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance of such transferee of all of the rights and obligations of a holder
of a Warrant.

         (b)      This Warrant may only be assigned together with the assignment
                  of the shares of Common Stock purchased pursuant to the
                  Purchase Agreement.

         3.       DURATION AND EXERCISE.

         (a)      On any day during the Exercise Period on which the Adjustment
                  Price (as defined in EXHIBIT A) is less than $2.7375 (which
                  amount shall be subject to equitable adjustment for stock
                  splits, reverse splits and similar 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.

         (b)      On any date of calculation during the Exercise Period, the
                  number of Warrant Shares available for purchase by the Holder
                  shall be calculated in accordance with the following formula:

      (Applicable Share Number) x [(1.2 x Purchase Price) - (Adjustment Price)]
      -------------------------------------------------------------------------
                                  Adjustment Price

                  If the number calculated in accordance with the foregoing
formula is zero or a negative number, the Holder shall not be obligated to
transfer any shares of Common Stock to the Company.

         (c)      If (i) after the Effective Date, the Per Share Market Value
                  (as defined in EXHIBIT A) for 22 consecutive Trading Days is
                  equal to or greater than $4.5625 (which amount shall be
                  subject to equitable adjustment for stock splits, reverse
                  splits and similar events), (ii) during each of the Trading
                  Days used to satisfy clause (i) above the Underlying Shares
                  Registration Statement (as defined in Exhibit A) was effective
                  and the prospectus thereunder available for use by the Holder
                  to resell all of the Warrant Shares, (iii) during each of the
                  Trading Days used to satisfy clause (i) above the Common Stock
                  was listed for trading on the New York Stock Exchange,
                  American Stock Exchange, Nasdaq National Market or Nasdaq
                  SmallCap Market, and (iv) the Company has a sufficient number
                  of available shares of Common Stock reserved to issue upon
                  exercise of this Warrant (an "EXPIRATION EVENT"), 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 the Expiration Event shall be honored in
                  accordance with the terms hereof.

                                       EXHIBIT 10(c)-2.
<PAGE>

         (d)      Subject to Section 3, this Warrant shall be exercisable by the
                  Holder on any Business Day during the Exercise Period before
                  6:30 P.M., New York City time. At 6:30 P.M., New York City
                  time on the Expiration Date, the portion of this Warrant not
                  exercised prior thereto shall be and become void and of no
                  value.

         (e)      This Warrant shall be exercisable, either in its entirety or,
                  from time to time, for a portion of the number of Warrant
                  Shares. The Holder shall not be required to deliver this
                  Warrant to the Company in order to acquire Warrant Shares
                  hereunder. Instead, the Holder shall prepare and deliver to
                  the Company a Form of Election to Purchase in the form
                  attached hereto, indicating thereon the Holder's calculation
                  of the number of Warrant Shares to which such exercise relates
                  and the Applicable Share Number at such time.

         4.       DELIVERY OF WARRANT SHARES.

         (a)      Upon delivery of the Form of Election to Purchase to the
                  Company at its address for notice set forth in Section 12 and
                  upon payment of the Exercise Price multiplied by the number of
                  Warrant Shares that the Holder intends to purchase hereunder,
                  the Company shall promptly (but in no event later than three
                  Business Days after the Date of Exercise (as defined herein))
                  issue and deliver to the Holder, a certificate for the Warrant
                  Shares issuable upon such exercise, free of restrictive
                  legends except (i) either in the event that a registration
                  statement covering the resale of the Warrant Shares and naming
                  the Holder as a selling stockholder thereunder is not then
                  effective or the Warrant Shares are not freely transferable
                  without volume restrictions pursuant to Rule 144(k)
                  promulgated under the Securities Act of 1933, as amended (the
                  "Securities Act"), or (ii) if this Warrant shall have been
                  issued pursuant to a written agreement between the original
                  Holder and the Company, as required by such agreement. Any
                  person so designated by the Holder to receive Warrant Shares
                  shall be deemed to have become holder of record of such
                  Warrant Shares as of the Date of Exercise of this Warrant. The
                  Company shall, upon request of the Holder, if available, use
                  its best efforts to deliver Warrant Shares hereunder
                  electronically through the Depository Trust Corporation or
                  another established clearing corporation performing similar
                  functions.

         (b)      If the Company fails to deliver to the Holder certificate or
                  certificates representing the Warrant Shares pursuant to
                  Section 4(a) by the third Trading Day after the Date of
                  Exercise, the Company shall pay to such Holder, in cash, as
                  liquidated damages and not as a penalty, $3,000 for each day
                  after such third Trading Day until such certificates are
                  delivered. Nothing herein shall limit the Holder's right to
                  pursue actual damages for the Company's failure to deliver
                  certificates representing shares of Common Stock upon exercise
                  within the period specified herein and the Holder shall have
                  the right to pursue all remedies available to it at law or in
                  equity including, without limitation, a decree of specific
                  performance and/or injunctive relief. The exercise of any such
                  rights shall not prohibit the Holder from seeking to enforce
                  damages pursuant to any other Section hereof or under
                  applicable law.

                                       EXHIBIT 10(c)-3.
<PAGE>

         (c)      In addition to any other rights available to the Holder, if
                  the Company fails to deliver to the Holder certificate or
                  certificates representing the Warrant Shares pursuant to
                  Section 4(a) by the third Trading Day after the Date of
                  Exercise, and if after such third Trading Day the Holder
                  purchases (in an open market transaction or otherwise) shares
                  of Common Stock to deliver in satisfaction of a sale by the
                  Holder of the Warrant Shares which the Holder anticipated
                  receiving upon such exercise (a "Buy-In"), then the Company
                  shall pay (1) in cash to the Holder the amount by which (x)
                  the Holder's total purchase price (including brokerage
                  commissions, if any) for the shares of Common Stock so
                  purchased exceeds (y) the amount obtained by multiplying (A)
                  the number of Warrant Shares that the Company was required to
                  deliver pursuant to Section 4(b) to deliver to the Holder in
                  connection with the exercise at issue by (B) the Per Share
                  Market Value at the time of the obligation giving rise to such
                  purchase obligation and (2) deliver to the Holder the number
                  of shares of Common Stock that would have been issued had the
                  Company timely complied with its exercise and delivery
                  obligations under Section 4(b). For example, if the Holder
                  purchases Common Stock having a total purchase price of
                  $11,000 to cover a Buy-In with respect to an attempted
                  exercise of shares of Common Stock with a market price on the
                  date of exercise totaled $10,000, under clause (A) of the
                  immediately preceding sentence the Company shall be required
                  to pay the Holder $1,000. The Holder shall provide the Company
                  written notice indicating the amounts payable to the Holder in
                  respect of the Buy-In.

         (d)      The Company's obligations to issue and deliver Warrant Shares
                  in accordance with the terms hereof are absolute and
                  unconditional, irrespective of any action or inaction by the
                  Holder to enforce the same, any waiver or consent with respect
                  to any provision hereof, the recovery of any judgment against
                  any Person or any action to enforce the same, or any setoff,
                  counterclaim, recoupment, limitation or termination, or any
                  breach or alleged breach by the Holder or any other Person of
                  any obligation to the Company or any violation or alleged
                  violation of law by the Holder or any other Person, and
                  irrespective of any other circumstance which might otherwise
                  limit such obligation of the Company to the Holder in
                  connection with the issuance of Warrant Shares. If the Company
                  breaches its obligations under this Warrant, then, in addition
                  to any other liabilities the Company may have hereunder and
                  under applicable law, the Company shall pay or reimburse the
                  Holder on demand for all costs of collection and enforcement
                  (including reasonable attorneys fees and expenses).

         5. PAYMENT OF TAXES. The Company will pay all documentary stamp taxes
attributable to the issuance of Warrant Shares upon the exercise of this
Warrant; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration
of any certificates for Warrant Shares or Warrants in a name other than that of
the Holder. The Holder shall be responsible for all other tax liability that may
arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

                                       EXHIBIT 10(c)-4.
<PAGE>

         6. REPLACEMENT OF WARRANT. If this Warrant is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and
reasonable indemnity, if requested. Applicants for a New Warrant under such
circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable charges as the Company may prescribe.

         7. RESERVATION OF WARRANT SHARES. The Company covenants that it will at
all times reserve and keep available out of the aggregate of its authorized but
unissued Common Stock, solely for the purpose of enabling it to issue Warrant
Shares upon exercise of this Warrant as herein provided, the number of Warrant
Shares which are then issuable and deliverable upon the exercise of this entire
Warrant, free from preemptive rights or any other actual contingent purchase
rights of persons other than the Holder (taking into account the adjustments and
restrictions of Section 8). The Company covenants that all Warrant Shares that
shall be so issuable and deliverable shall, upon issuance and the payment of the
applicable Exercise Price in accordance with the terms hereof, be duly and
validly authorized, issued and fully paid and nonassessable.

         8. CERTAIN ADJUSTMENTS. This Warrant is subject to the adjustments set
forth in this Section.

                  (i)      If the Company (i) shall pay a stock dividend (except
                           scheduled dividends paid on outstanding preferred
                           stock as of the date hereof which contain a stated
                           dividend rate) or otherwise make a distribution or
                           distributions on shares of its Common Stock or on any
                           other class of capital stock payable in shares of
                           Common Stock, (ii) subdivide outstanding shares of
                           Common Stock into a larger number of shares, or (iii)
                           combine outstanding shares of Common Stock into a
                           smaller number of shares, then the Adjustment Price
                           shall be multiplied by a fraction of which the
                           numerator shall be the number of shares of Common
                           Stock (excluding treasury shares, if any) outstanding
                           before such event and of which the denominator shall
                           be the number of shares of Common Stock (excluding
                           treasury shares, if any) outstanding after such
                           event. Any adjustment made pursuant to this Section
                           shall become effective immediately after the record
                           date for the determination of stockholders entitled
                           to receive such dividend or distribution and shall
                           become effective immediately after the effective date
                           in the case of a subdivision or combination, and
                           shall apply to successive such events.

                  (ii)     In case of any reclassification of the Common Stock
                           or any compulsory share exchange pursuant to which
                           the Common Stock is converted into other securities,
                           cash or property, then the Holder shall have the
                           right thereafter to exercise this Warrant only into
                           the shares of stock and other securities and property
                           receivable upon or deemed to be held by holders of
                           Common Stock following such reclassification,
                           transfer or share exchange, and the Holder shall be
                           entitled upon such event to receive such

                                       EXHIBIT 10(c)-5.
<PAGE>

                           amount of securities or property equal to the amount
                           of Warrant Shares such Holder would have been
                           entitled to had such Holder exercised this Warrant
                           immediately prior to such reclassification or share
                           exchange. The terms of any such reclassification or
                           share exchange shall include such terms so as to
                           continue to give to the Holder the right to receive
                           the securities or property set forth in this Section
                           upon any exercise following any such
                           reclassification or share exchange.

                  (iii)    If the Company, at any time while this Warrant is
                           outstanding, shall distribute to all holders of
                           Common Stock (and not to holders of this Warrant)
                           evidences of its indebtedness or assets or rights or
                           warrants to subscribe for or purchase any security
                           (excluding those referred to in Sections 8(i), (ii)
                           and (iv)), then in each such case the Adjustment
                           Price shall be determined by multiplying the
                           Adjustment Price in effect immediately prior to the
                           record date fixed for determination of stockholders
                           entitled to receive such distribution by a fraction
                           of which the denominator shall be the Adjustment
                           Price determined as of the record date mentioned
                           above, and of which the numerator shall be such
                           Adjustment Price on such record date less the then
                           fair market value at such record date of the portion
                           of such assets or evidence of indebtedness so
                           distributed applicable to one outstanding share of
                           Common Stock on a fully diluted basis as determined
                           by the Company's independent certified public
                           accountants that regularly examines the financial
                           statements of the Company (an "Appraiser").

                  (iv)     If the Company or any subsidiary thereof, as
                           applicable with respect to Common Stock Equivalents
                           (as defined below), at any time while this Warrant is
                           outstanding, shall issue shares of Common Stock or
                           rights, warrants, options or other securities or debt
                           that are convertible into or exchangeable for shares
                           of Common Stock ("COMMON STOCK EQUIVALENTS") (other
                           than (i) granting of options or warrants to
                           employees, officers, consultants and directors and
                           the issuance of shares upon exercise of options or
                           warrants granted under any stock option or employee
                           stock purchase plan heretofore or hereafter duly
                           adopted by the Company, (ii) issuance of shares of
                           Common Stock issuable upon exercise of any currently
                           outstanding warrants, disclosed in SCHEDULE 2.1(c) to
                           the Securities Purchase Agreement and (iii) issuance
                           of shares of Common Stock issuable upon exercise of
                           the Warrants in accordance with their terms),
                           entitling any person to acquire shares of Common
                           Stock at a price per share less than the Adjustment
                           Price on the date of calculation (if the holder of
                           the Common Stock or Common Stock Equivalent so issued
                           shall at any time, whether by operation of purchase
                           price adjustments, reset provisions, floating
                           conversion, exercise or exchange prices or otherwise,
                           or due to warrants, options or rights issued in
                           connection with such issuance, be entitled to receive
                           shares of Common Stock at a price less than the
                           Adjustment Price, such issuance shall be deemed to
                           have occurred for less than the Adjustment Price),
                           then at the option of the Holder, the

                                       EXHIBIT 10(c)-6.
<PAGE>

                           Adjustment Price shall equal the lowest purchase
                           price, reset purchase price, exchange price or
                           conversion price applicable to such Common Stock
                           or Common Stock Equivalent (which may be expressed
                           as discounts to the market price of the Common Stock
                           at the option of the Holder if so expressed in such
                           Common Stock or Common Stock Equivalent). Adjustments
                           under this Section shall be made at the time of the
                           issuance of such Common Stock or Common Stock
                           Equivalent so that the Holder need not wait until
                           actual conversion, rest or exchange to effect an
                           adjustment hereunder. The Company shall provide the
                           Holder written notice of the issuance of any Common
                           Stock or Common Stock Equivalent which would trigger
                           the operation of this Section within two Business
                           Days of the date of such issuance.

                  (v)      In case of any (1) merger or consolidation of the
                           Company with or into another Person, or (2) sale by
                           the Company of more than one-half of the assets of
                           the Company (on a book value basis) in one or a
                           series of related transactions, the Holder shall have
                           the right thereafter to (A) exercise this Warrant for
                           the shares of stock and other securities, cash and
                           property receivable upon or deemed to be held by
                           holders of Common Stock following such merger,
                           consolidation or sale, and the Holder shall be
                           entitled upon such event or series of related events
                           to receive such amount of securities, cash and
                           property as the Common Stock for which this Warrant
                           could have been exercised immediately prior to such
                           merger, consolidation or sales would have been
                           entitled or (B) in the case of a merger or
                           consolidation, (x) require the surviving entity to
                           issue common stock purchase warrants equal to the
                           number Warrant Shares to which this Warrant then
                           permits, which newly warrant shall be identical to
                           this Warrant, and (y) simultaneously with the
                           issuance of such warrant, shall have the right to
                           exercise such warrant only into shares of stock and
                           other securities, cash and property receivable upon
                           or deemed to be held by holders of Common Stock
                           following such merger or consolidation. In the case
                           of clause (B), the exercise price for such new
                           warrant shall be based upon the amount of securities,
                           cash and property that each share of Common Stock
                           would receive in such transaction and the Adjustment
                           Price of this Warrant immediately prior to the
                           effectiveness or closing date for such transaction.
                           The terms of any such merger, sale or consolidation
                           shall include such terms so as continue to give the
                           Holder the right to receive the securities, cash and
                           property set forth in this Section upon any
                           conversion or redemption following such event. This
                           provision shall similarly apply to successive such
                           events.

                  (vi)     For the purposes of this Section 8, the following
                           clauses shall also be applicable:

                           (1)      RECORD DATE. In case the Company shall take
                                    a record of the holders of its Common Stock
                                    for the purpose of entitling them (A) to
                                    receive a dividend or other distribution
                                    payable in Common

                                       EXHIBIT 10(c)-7.
<PAGE>

                                    Stock or in securities convertible or
                                    exchangeable into shares of Common Stock,
                                    or (B) to subscribe for or purchase Common
                                    Stock or securities convertible or
                                    exchangeable into shares of Common Stock,
                                    then such record date shall be deemed to be
                                    the date of the issue or sale  of the
                                    shares of Common Stock deemed to have
                                    been issued or sold upon the declaration of
                                    such dividend or the making of such other
                                    distribution or the date of the granting of
                                    such right of subscription or purchase, as
                                    the case may be.

                           (2)      TREASURY SHARES. The number of shares of
                                    Common Stock outstanding at any given time
                                    shall not include shares owned or held by or
                                    for the account of the Company, and the
                                    disposition of any such shares shall be
                                    considered an issue or sale of Common Stock.

                  (vii)    All calculations under this Section 8 shall be made
                           to the nearest cent or the nearest 1/100th of a
                           share, as the case may be.

                  (viii)   If (i) the Company shall declare a dividend (or any
                           other distribution) on its Common Stock; (ii) the
                           Company shall declare a special nonrecurring cash
                           dividend on or a redemption of its Common Stock;
                           (iii) the Company shall authorize the granting to all
                           holders of the Common Stock rights or warrants to
                           subscribe for or purchase any shares of capital stock
                           of any class or of any rights; (iv) the approval of
                           any stockholders of the Company shall be required in
                           connection with any reclassification of the Common
                           Stock, any consolidation or merger to which the
                           Company is a party, any sale or transfer of all or
                           substantially all of the assets of the Company, or
                           any compulsory share exchange whereby the Common
                           Stock is converted into other securities, cash or
                           property; or (v) the Company shall authorize the
                           voluntary dissolution, liquidation or winding up of
                           the affairs of the Company, then the Company shall
                           cause to be mailed to each Holder at their last
                           addresses as they shall appear upon the Warrant
                           Register, at least 10 calendar days prior to the
                           applicable record or effective date hereinafter
                           specified, a notice stating (x) the date on which a
                           record is to be taken for the purpose of such
                           dividend, distribution, redemption, rights or
                           warrants, or if a record is not to be taken, the date
                           as of which the holders of Common Stock of record to
                           be entitled to such dividend, distributions,
                           redemption, rights or warrants are to be determined
                           or (y) the date on which such reclassification,
                           consolidation, merger, sale, transfer or share
                           exchange is expected to become effective or close,
                           and the date as of which it is expected that holders
                           of Common Stock of record shall be entitled to
                           exchange their shares of Common Stock for securities,
                           cash or other property deliverable upon such
                           reclassification, consolidation, merger, sale,
                           transfer, share exchange, dissolution, liquidation or
                           winding up; PROVIDED, that the failure to mail such
                           notice or any defect therein or in the mailing
                           thereof shall not affect the validity of the
                           corporate action required to be specified in such
                           notice.

                                       EXHIBIT 10(c)-8.
<PAGE>

         9. PAYMENT OF EXERCISE PRICE. The Holder may pay the Exercise Price in
one of the following manners:

         (a)      CASH EXERCISE. The Holder may deliver immediately available
                  funds; or

         (b)      CASHLESS EXERCISE. The Holder may indicate in the Form of
                  Election to Purchase that it will be utilizing cashless
                  exercise, in which event the Company shall issue to the Holder
                  the number of Warrant Shares determined as follows:

                                        X = Y [(A-B)/A]
         where:

                                        X = the number of Warrant Shares to be
                                        issued

         to the Holder.

                                        Y = the number of Warrant Shares with
                                        respect to which this Warrant is being
                                        exercised.

                                        A = the average of the closing sale
                                        prices of the Common Stock for the five
                                        trading days immediately prior to (but
                                        not including) the Date of Exercise as
                                        reported by Bloomberg Information
                                        Systems, Inc. (or any successor to its
                                        function of reporting stock prices).

                                        B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Warrant Shares shall be deemed to have been
commenced, on the issue date.

         10.      CERTAIN EXERCISE RESTRICTIONS.

         (a)      A Holder may not exercise this Warrant to the extent such
                  exercise would result in the Holder, together with any
                  affiliate thereof, beneficially owning (as determined in
                  accordance with Section 13(d) of the Exchange Act and the
                  rules promulgated thereunder) in excess of 4.999% of the then
                  issued and outstanding shares of Common Stock, including
                  shares issuable upon such exercise and held by such Holder
                  after application of this Section. Since the Holder will not
                  be obligated to report to the Company the number of shares of
                  Common Stock it may hold at the time of an exercise hereunder,
                  unless the exercise at issue would result in the issuance of
                  shares of Common Stock in excess of 4.999% of the then
                  outstanding shares of Common Stock without regard to any other
                  shares which may be beneficially owned by the Holder or an
                  affiliate thereof, the Holder shall have the authority and
                  obligation to determine whether the restriction contained in
                  this Section will limit any particular exercise hereunder and
                  to the extent that the Holder determines that the limitation
                  contained in this Section applies, the

                                       EXHIBIT 10(c)-9.
<PAGE>

                  determination of which portion of this Warrant is
                  exercisable shall be the responsibility and obligation
                  of the Holder. If the Holder has delivered a Form of
                  Election to Purchase for a number of Warrant Shares that,
                  without regard to any other shares that the Holder or its
                  affiliates may beneficially own, would result in the issuance
                  in excess of the permitted amount hereunder, the Company
                  shall notify the Holder of this fact
                  and shall honor the exercise for the maximum portion of this
                  Warrant permitted to be exercised on such Date of Exercise in
                  accordance with the periods described herein and return such
                  excess portion of the Warrant to the Holder. The provisions of
                  this Section may be waived by a Holder (but only as to itself
                  and not to any other Holder) upon not less than 61 days prior
                  notice to the Company. Other Holders shall be unaffected by
                  any such waiver.

         (b)      A Holder may not exercise this Warrant to the extent such
                  exercise would result in the Holder, together with any
                  affiliate thereof, beneficially owning (as determined in
                  accordance with Section 13(d) of the Exchange Act and the
                  rules promulgated thereunder) in excess of 9.999% of the then
                  issued and outstanding shares of Common Stock, including
                  shares issuable upon such exercise and held by such Holder
                  after application of this Section. Since the Holder will not
                  be obligated to report to the Company the number of shares of
                  Common Stock it may hold at the time of an exercise hereunder,
                  unless the exercise at issue would result in the issuance of
                  shares of Common Stock in excess of 9.999% of the then
                  outstanding shares of Common Stock without regard to any other
                  shares which may be beneficially owned by the Holder or an
                  affiliate thereof, the Holder shall have the authority and
                  obligation to determine whether the restriction contained in
                  this Section will limit any particular exercise hereunder and
                  to the extent that the Holder determines that the limitation
                  contained in this Section applies, the determination of which
                  portion of this Warrant is exercisable shall be the
                  responsibility and obligation of the Holder. If the Holder has
                  delivered a Form of Election to Purchase for a number of
                  Warrant Shares that, without regard to any other shares that
                  the Holder or its affiliates may beneficially own, would
                  result in the issuance in excess of the permitted amount
                  hereunder, the Company shall notify the Holder of this fact
                  and shall honor the exercise for the maximum portion of this
                  Warrant permitted to be exercised on such Date of Exercise in
                  accordance with the periods described herein and return such
                  excess portion of the Warrant to the Holder. The provisions of
                  this Section may be waived by a Holder (but only as to itself
                  and not to any other Holder) upon not less than 61 days prior
                  notice to the Company. Other Holders shall be unaffected by
                  any such waiver.

         (c)      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 equals19.999%
                  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

                                       EXHIBIT 10(c)-10.
<PAGE>

                  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 Holder shall have the option to require the
                  Company to 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) pay to the
                  Holder, within three (3) Trading Day's from the request
                  therefor, an amount in cash equal to the product of (x) the
                  Excess Warrant Shares multiplied by (y) the closing sales
                  price of the Common Stock on the Date of Exercise giving rise
                  to the obligation to seek Shareholder Approval (the "Cash
                  Payment"). In the event the Holder has elected to require the
                  Company 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 pay the Cash
                  Payment to the Holder. If the Company fails to pay the Cash
                  Payment in full pursuant to this Section within seven (7) days
                  after the date payable, the Company will pay interest on such
                  amount at a rate of 18% per annum, or such lesser maximum
                  amount that is permitted to be paid by applicable law, to the
                  Holder, accruing daily from the date payable until such
                  amount, plus all such interest thereon, is paid in full. 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.

         11. FRACTIONAL SHARES. The Company shall not be required to issue or
cause to be issued fractional Warrant Shares on the exercise of this Warrant.
The number of full Warrant Shares which shall be issuable upon the exercise of
this Warrant shall be computed on the basis of the aggregate number of Warrant
Shares purchasable on exercise of this Warrant so presented. If any fraction of
a Warrant Share would, except for the provisions of this Section 11, be issuable
on the exercise of this Warrant, the Company shall pay an amount in cash equal
to the Exercise Price multiplied by such fraction.

         12. NOTICES. Any and all notices or other communications or deliveries
hereunder shall be in writing and shall be deemed given and effective on the
earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile

                                       EXHIBIT 10(c)-11.
<PAGE>

telephone number specified in this Section prior to 6:30 P.M. (New York City
time) on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at
the facsimile telephone number specified in this Section later than 6:30 P.M.
(New York City time) on any date and earlier than 11:59 P.M. (New York City
time) on such date, (iii) the Business Day following the date of mailing, if
sent by nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given. The
addresses for such communications shall be: (i) if to the Company, to 46832
Lakeview Boulevard, Fremont, CA 94538, facsimile: (510) 440-9696, attention
Chief Financial Officer or (ii) if to the Holder, to the Holder at the
address or facsimile number appearing on the Warrant Register or such other
address or facsimile number as the Holder may provide to the Company in
accordance with this Section.

         13.      WARRANT AGENT.

         (a)      The Company shall serve as warrant agent under this Warrant.
                  Upon thirty days' notice to the Holder, the Company may
                  appoint a new warrant agent.

         (b)      Any corporation into which the Company or any new warrant
                  agent may be merged or any corporation resulting from any
                  consolidation to which the Company or any new warrant agent
                  shall be a party or any corporation to which the Company or
                  any new warrant agent transfers substantially all of its
                  corporate trust or shareholders services business shall be a
                  successor warrant agent under this Warrant without any further
                  act. Any such successor warrant agent shall promptly cause
                  notice of its succession as warrant agent to be mailed (by
                  first class mail, postage prepaid) to the Holder at the
                  Holder's last address as shown on the Warrant Register.

         14.      MISCELLANEOUS.

         (a)      This Warrant shall be binding on and inure to the benefit of
                  the parties hereto and their respective successors and
                  assigns. This Warrant may be amended only in writing signed by
                  the party against whom such amendment is sought to be
                  enforced.

         (b)      Subject to Section 14(a), above, nothing in this Warrant shall
                  be construed to give to any person or corporation other than
                  the Company and the Holder any legal or equitable right,
                  remedy or cause under this Warrant. This Warrant shall inure
                  to the sole and exclusive benefit of the Company and the
                  Holder.

         (c)      The corporate laws of the State of California shall govern all
                  issues concerning the relative rights of the Company and its
                  stockholders. All other questions concerning the construction,
                  validity, enforcement and interpretation of this Warrant 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. The Company and
                  the Holder hereby irrevocably submit to the exclusive
                  jurisdiction of the state and federal courts sitting in the
                  City of New York, borough of Manhattan, for the adjudication
                  of any dispute hereunder

                                       EXHIBIT 10(c)-12.
<PAGE>

                  or in connection herewith or with any
                  transaction contemplated hereby or discussed herein, and
                  hereby irrevocably waives, and agrees not to assert in any
                  suit, action or proceeding, any claim that it is not
                  personally subject to the jurisdiction of any such court, or
                  that such suit, action or proceeding is improper. Each of the
                  Company and the Holder hereby irrevocably waives personal
                  service of process and consents to process being served in any
                  such suit, action or proceeding by receiving a copy thereof
                  sent to the Company at the address in effect for notices to it
                  under this instrument and agrees that such service shall
                  constitute good and sufficient service of process and notice
                  thereof. Nothing contained herein shall be deemed to limit in
                  any way any right to serve process in any manner permitted by
                  law.

         (d)      The headings herein are for convenience only, do not
                  constitute a part of this Warrant and shall not be deemed to
                  limit or affect any of the provisions hereof.

         (e)      In case any one or more of the provisions of this Warrant
                  shall be invalid or unenforceable in any respect, the validity
                  and enforceability of the remaining terms and provisions of
                  this Warrant shall not in any way be affected or impaired
                  thereby and the parties will attempt in good faith to agree
                  upon a valid and enforceable provision which shall be a
                  commercially reasonable substitute therefor, and upon so
                  agreeing, shall incorporate such substitute provision in this
                  Warrant.

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
duly executed by its authorized officer as of the date first indicated above.

                                   FORTEL INC.

                                                     By:
                                                        ----------------------
                                                        Name:
                                                        Title:

                                       EXHIBIT 10(c)-13.
<PAGE>

                          FORM OF ELECTION TO PURCHASE

         (To be executed by the Holder to exercise the right to purchase shares
of Common Stock under the foregoing Warrant)

To Fortel, Inc.

         In accordance with the Warrant enclosed with this Form of Election to
Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of common stock ("Common Stock"), no par value per share, of Fortel, Inc.
and, if such Holder is not utilizing the cashless exercise provisions set forth
in this Warrant, encloses herewith $________ in cash, certified or official bank
check or checks, which sum represents the aggregate Exercise Price (as defined
in the Warrant) for the number of shares of Common Stock to which this Form of
Election to Purchase relates, together with any applicable taxes payable by the
undersigned pursuant to the Warrant.

   (Applicable Share Number) x [(1.2  x Purchase Price) - (Adjustment Price)]
    ------------------------------------------------------------------------
                                Adjustment Price

         The undersigned requests that certificates for the shares of Common
Stock issuable upon this exercise be issued in the name of

                                    PLEASE INSERT SOCIAL SECURITY
                                    OR TAX IDENTIFICATION NUMBER

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

------------------------------------------------------------------------------
                         (Please print name and address)

Dated:                               Name of Holder:
      ----------------------

                                     (Print)
                                             ----------------------------
                                     (By:)
                                             ----------------------------
                                     (Name:)
                                             ----------------------------
                                     (Title:)
                                             ----------------------------

                                    (Signature must conform in all respects to
                                    name of holder as specified on the face of
                                    the Warrant)

                            FORM OF ELECTION TO PURCHASE

<PAGE>

                               FORM OF ASSIGNMENT

           [To be completed and signed only upon transfer of Warrant]

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto the right represented by this Warrant to purchase all Warrant Shares to
which this Warrant currently or in the future relates and appoints
________________ attorney to transfer said right on the books of Fortel, Inc.
with full power of substitution in the premises.

Dated:

---------------, ----

                                    ------------------------------------------
                                    (Signature must conform in all respects to
                                    name of holder as specified on the face of
                                    the Warrant)

                                    ------------------------------------------
                                    Address of Transferee

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

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

         In the presence of:

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

                                 FORM OF ASSIGNMENT
<PAGE>

                                    EXHIBIT A

         - "Adjustment Price" means the average of the two lowest Per Share
Market Values (which need not occur on consecutive Trading Days) during the 10
Trading Days preceding a Date of Exercise (which may include Trading Days prior
to the date on which the Holder may first exercise this Warrant) PROVIDED, that
such 10 Trading Day period shall be extended for the number of Trading Days
during such period in which (A) trading in the Common Stock is suspended by the
Nasdaq or a Subsequent Market on which the Common Stock is then listed, or (B)
after the Effective Date, the Underlying Shares Registration Statement is either
not effective, or the Prospectus included in the Underlying Shares Registration
Statement may not be used by the Holder for the resale of Underlying Shares. The
Adjustment Price as used in the calculation to determine the number of Warrant
Shares which may be acquired hereunder pursuant to Section 3(b) is subject to
adjustment in accordance with Section 8. The Adjustment Price as considered in
Section 3(a) shall not be subject to adjustment in accordance with Section 8.

         - "Applicable Share Number" means the number of shares of Common Stock
purchased by the Holder pursuant to the Purchase Agreement and then owned by the
Holder, less the aggregate number of such shares used previously by the Holder
to calculate the number of Warrant Shares available to the extent such Warrant
Shares were actually issued hereunder pursuant to a Form of Election to
Purchase.

         - "Business Day" shall have the meaning set forth in the Purchase
Agreement.

         - "Closing Date" shall have the meaning set forth in the Purchase
Agreement.

         - "Commission" means the Securities and Exchange Commission.

         - "Date of Exercise" means the date on which the Holders shall have
delivered to the Company (i) the Form of Election to Purchase attached hereto
appropriately completed and duly signed, and (ii) payment of the Exercise Price
for the number of Warrant Shares so indicated by the holder hereof to be
purchased.

         - "Effective Date" the date on which the Underlying Shares Registration
Statement is first declared effective by the Commission.

         - "Nasdaq" means the Nasdaq Smallcap Market.

         - "Per Share Market Value" means on any particular date (a) the closing
bid price per share of the Common Stock on such date on the Nasdaq or on any
Subsequent Market on which the Common Stock is then listed or quoted, as
reported by Bloomberg Information Services, Inc. (or any successor entity
succeeding to its function of reporting prices), or if there is no such price on
such date, then the closing bid price on the Nasdaq or on such Subsequent Market
on the date nearest preceding such date, as reported by Bloomberg Information
Services, Inc. (or any successor entity succeeding to its function of reporting
prices), or (b) if the Common Stock is not then listed or quoted on the Nasdaq
or a Subsequent Market, the closing bid price for a share of Common Stock in the
over-the-counter market, as reported by the National Quotation

                                       EXHIBIT A-1.
<PAGE>

Bureau Incorporated or similar organization or agency succeeding to its
functions of reporting prices) at the close of business on such date, or (c)
if the Common Stock is not then reported by the National Quotation Bureau
Incorporated (or similar organization or agency succeeding to its functions
of reporting prices), then the average of the "Pink Sheet" quotes for the
relevant conversion period, as determined in good faith by the Holder, or (d)
if the Common Stock is not then publicly traded the fair market value of a
share of Common Stock as determined by an Appraiser selected in good faith by
the Holders of a majority of the applicable Warrant Shares.

         - "Purchase Agreement" means the Securities Purchase Agreement, dated
the date hereof to which the Company and the original Holder are parties and
pursuant to which this Warrant was issued.

         - "Purchase Price" means $2.28125, which number shall be subject to
equitable adjustment for stock splits, recombinations and similar events.

         - "Registration Rights Agreement" means the Registration Rights
Agreement, dated the date hereof to which the Company and the original Holder
are parties.

         - "Subsequent Market" shall mean any of the New York Stock Exchange,
American Stock Exchange or Nasdaq National Market.

         - "Trading Day" means (a) a day on which the Common Stock is traded on
the Nasdaq or on the Subsequent Market on which the Common Stock is then listed
or quoted, as the case may be, or (b) if the Common Stock is not listed on the
Nasdaq or a Subsequent Market, a day on which the Common Stock is traded in the
over-the-counter market, as reported by the OTC Bulletin Board , or (c) if the
Common Stock is not quoted on the OTC Bulletin Board, a day on which the Common
Stock is quoted in the over-the-counter market as reported by the National
Quotation Bureau Incorporated (or any similar organization or agency succeeding
its functions of reporting prices); PROVIDED, that in the event that the Common
Stock is not listed or quoted as set forth in (a), (b) and (c) hereof, then
Trading Day shall mean a Business Day.

         "Transaction Documents" shall have the meaning set forth in the
Purchase Agreement.

         "Underlying Shares Registration Statement" shall have the meaning set
forth in the Purchase Agreement.

                                       EXHIBIT A-2.

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