Document:

Unassociated Document

    AMENDED
      AND RESTATED LOAN AGREEMENT

    

    

    This
      Amended and Restated Loan Agreement (the “Agreement”) is entered into in
      ShenZhen as of February 08, 2007 by the following
      parties.

    

    Party
      A:
      JingWei HengTong Technology (ShenZhen)  Co., Ltd. (经纬恒通科技(深圳)有限公司
      ) 

    Registration
      Address: Room 1605 B,Tianan Hi-tech Plaza Tower A,Tian An Cyber Park,Futian
      District,Shenzhen,China

    

    Party
      B:
      Mr. JianGuo Du

    ID
      No.
      310104640815041    

    

    Party
      C:
      Ms. AiLing Yin

    ID
      No.
      310104660918042  

    

    Party
      D:
      Ms. GuiLing Yin

    ID
      No.
      410802640601252 

    

    WHEREAS,

    

    1.
       Party
      A
      is a wholly-owned foreign enterprise incorporated in the People’s Republic of
      China (the “PRC”);

    

    2.
       Party B, C and D (collectively the “the Borrowers”) are the citizens of
      the PRC. They own respectively 90% (Party B), 8% (Party C) and 2% (Party
      D) of the equity interests of ShenZhen JingWei Communication Co., Ltd.
      (the “ShenZhen JingWei”) incorporated in ShenZhen;

    

    3.
       Party A provides an interest-free loan RMB 2,000,000 to Party B,
      Party C and Party D for their capital contribution of ShenZhen
      JingWei;

    

    NOW
      THEREFORE, All parties agree to amend and restate the Original Loan Agreement
      as
      follows:

    

    1.
       Party A agrees to provide an interest-free loan to the Borrowers with the
      principal as RMB 2,000,000 in accordance with the terms and conditions
      set forth in this Agreement. RMB 1,800,000 is loaned to Party B, RMB 160,000
      is loaned to Party C and RMB 40,000 is loaned to Party
D.

    

    2.
       The
      Borrowers confirm that they have obtained the total amount of the loan and
      have
      invested them into ShenZhen JingWei as capital contribution.

    

    3.
       The
      Term
      of such loan starts from the date that the Borrowers received the loan until
      ten
      (10) years after signing this Agreement and could be extended upon the written
      agreement of three parties through negotiations. During the term or extended
      term of such a loan, Party A may accelerate the loan repayment, if any of the
      following events occurs:

    

    (1)
       The
      Borrower quits or is dismissed by Party A or its affiliates;

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (2)
       The
      Borrower dies or becomes a person without capacity or with limited capacity
      for
      civil acts;

    

    (3)
       The
      Borrower commits a crime or is involved in a crime;

    

    (4)
       Any
      other
      third party claims more than RMB100,000 against the Borrower; or

    

    (5)
       According
      to the PRC laws, Party A or its designated person may be qualified to invest
      in
      the business of value-added telecommunication, such as internet information
      service and other services, which ShenZhen JingWei runs, and also Party A will
      have given a written notice to ShenZhen JingWei and exercised its right of
      purchase in accordance with the terms under the exclusive purchase agreement
      speculated in Article 4 of this agreement.

    

    4.
       All
      parties herein agree and confirm that, according to the PRC laws, Party A or
      its
      designated person (including natural person, legal entity or any other entity)
      has the right, but the obligation, to purchase all or part of the equity
      interest held by Party B and/or Party C and/or Party D in ShenZhen JingWei
      (the
“Option Right”) at anytime, however, Party A shall notify Party B, Party C and
      Party D of such purchase of equity interests with a written notice. Once the
      written notice for exercising the Option Right is issued by Party A, Party
      B,
      Party C and Party D shall sell their equity interests of ShenZhen JingWei with
      the original invest price (the “Original Investment Price”) or other price
      allowed by laws according to the consent of Party A to Party A or its designated
      person. All parties agree and confirm that when Party A exercises the Option
      Right, the price that allowed by the applicable law at the time is higher than
      the Original Investment Price, Party A shall purchase the equity interests
      at
      the lowest price in accordance with the applicable law. All parties agree to
      execute the “Amended and Restated Option Agreement” (the “Option Agreement”) in
      connection with above matters and.

    

    5.
       All
      parties herein agree and confirm that the Borrowers or their successors or
      assignees may repay the loan only by the following methods: transfer the equity
      interest in ShenZhen JingWei to Party A and use the proceeds to repay the loan
      when the loan is due and Party A gives a written notice.

    

    6.
       All
      parties agree and confirm that this loan is an interest-free loan unless there
      are different provisions in this Agreement. But if the loan is due and the
      Borrowers have to transfer their equity interests in ShenZhen JingWei to Party
      A
      or its designated person and the proceeds exceed the loan principal due to
      the
      legal requirement or other reasons, the extra amount over the principal of
      proceeds will be considered as the interests or capital use cost, which shall
      be
      repaid to Party A.

    

    7.
       All
      parties agree and confirm that the Borrowers shall be deemed the completion
      of
      performing their obligations under this agreement only if the following
      requirements are met:

    

      (a)
       The
      Borrowers have transferred all their equity interests of ShenZhen JingWei to
      Party A and/its designated person; and,

    

      (b)
       The
      Borrowers have repaid the total amount caused from the equity interest
      transferring or the maximum amount (including principal and the highest loan
      interest) allowed by the applicable law concerning loans to Party
      A.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8.
       To
      secure
      the performance of the debt under this agreement, the Borrowers agree to
      respectively pledge all their own equity interest of ShenZhen JingWei to Party
      A
      (the “Equity Pledge”). All parties acknowledge that, other than the debts herein
      under this Agreement, the debts secured by Equity Pledge under the “Amended and
      Restated Exclusive Technology Consulting Service Agreement” (the “Service
      Agreement”) executed between the ShenZhen JingWei and Party A. All parties agree
      to execute an “Amended and Restated Equity Interest Pledge Agreement” (the
“Equity Pledge Agreement”).

    

    9.
       Party
      A
      hereby represents and warrants to the Borrowers that, as of the execution date
      of this Agreement:

    

    (a)
       Party
      A
      is a company incorporated and validly existing under the laws of
      PRC;

    

    (b)
       Party
      A
      has the right to execute and perform this Agreement. Party A, subject to its
      business scope, Articles or other institutional documents, has taken necessary
      actions to get all necessary and appropriate approvals and
      authorizations;

    

    (c)
       The
      principal of loan to the Borrowers is legally owned by the Party A;

    

    (d)
       The
      execution and the performance of this Agreement by Party A does not violate
      any
      laws, regulations, approvals, authorizations, notices, other governmental
      documents, any agreement signed with the third party or any promise issued
      to
      the third party; and

    

    (e)
       This
      Agreement shall constitute the legal, valid and binding obligations of Party
      A,
      which is upon its execution.

    

    10.
       The
      Borrowers hereby represent and warrant to Party A that, from the execution
      date
      of this Agreement until this Agreement terminates:

    

    (a)
       ShenZhen
      JingWei is a limited liability company incorporated and validly existing under
      the laws of PRC and the Borrowers are the legal holders of the equity interest
      of ShenZhen JingWei;

    

    (b)
       The
      Borrowers has the right to execute and perform this Agreement. Each Borrower,
      subject to its business scope, Articles or other institutional documents, has
      taken necessary actions to get all necessary and appropriate approvals and
      authorizations;

    

    (c)
       The
      execution and the performance of this Agreement by the Borrowers does not
      violate any laws, regulations, approvals, authorizations, notices, other
      governmental documents, any agreement signed with the third party or any promise
      issued to the third party; and

    

    (d)
       This
      Agreement shall constitute the legal and valid obligations of the Borrower,
      which is enforceable against the Borrowers in accordance with its terms upon
      its
      execution;

    

    (e)
       The
      Borrowers have paid contribution in full for their equity interests in the
      ShenZhen JingWei in accordance with applicable laws and regulations and have
      obtained capital contribution verification report issued by the qualified
      accounting firm;

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

      (f)
       Except
      the provisions stipulated in “Equity Pledge Agreement” and “Option Agreement”,
      the Borrowers does not create pledge or any other security, make third party
      any
      offer to transfer the Borrowers’ equity, make acceptance for the offer of any
      third party to purchase Borrowers’ equity, or execute agreement with any third
      party to transfer Borrowers’ equity;

    

      (g)
       There
      are
      no pending or potential disputes, litigation, arbitration or other
      administrative proceedings or other legal proceedings in connection with the
      equity interests of ShenZhen JingWei hold by the Borrowers;

    

      (h)
       ShenZhen
      JingWei has completed all governmental approval, authorization, license,
      registration, filing and otherwise necessary to carry out the business subject
      to its business license and to possess its assets.

    

    11.
       The
      Borrowers covenant that it shall, during the term of this
      Agreement,

    

    (a)
       Not
      sell,
      transfer, pledge, dispose in any other manners of their equity interests of
      ShenZhen JingWei or other interests, or not allow to create other security
      interests on it without Party A’s prior written consent, except the terms of the
      Equity Interest Pledge Agreement;

    

    (b)
       Not
      cause
      the shareholder’s meeting to make resolutions to sell, transfer, pledge, dispose
      of in any other manners, or not allow to create other security interest on,
      any
      of the Borrower’s legal right of equity or equity interest without Party A’s
      prior written consent, except that is caused by Party A and its designated
      person;

    

    (c)
       Not
      cause
      the shareholder’s meeting to make resolutions to merge or combine with, acquire
      or invest in any person without Party A’s prior consent;

    

    (d)
       Promptly
      inform Party A of the pending or threatened litigation, arbitration or
      regulatory procedure concerning the Borrowers’ equity interests of the ShenZhen
      JingWei;

    

    (e)
       Execute
      all necessary or appropriate documents, take all necessary or appropriate
      actions and bring all necessary or appropriate lawsuits or make all necessary
      and appropriate defending against all claims in order to maintain their equity
      interest of the ShenZhen JingWei;

    

    (f)
       Not
      do
      anything that may materially affect the assets, business and liabilities of
      ShenZhen JingWei without Party A’s prior written consent;

     

     (g)
       Appoint
      any person to be the director of ShenZhen JingWei subject to Party A’s
      request;

    

      (h)
       Transfer
      promptly and unconditionally, at any time, all of the Borrowers’ equity interest
      in the ShenZhen JingWei to Party A or the representative designated by Party
      A
      subject to the request of Party A, provided that such transfer is permitted
      under the laws of PRC;

    

      (i)
       Not
      to
      request ShenZhen JingWei to distribute dividends or profits;

    

      (j)
       In
      case
      the equity interest of ShenZhen JingWei is transferred to Party A and its
      designated person by the Borrowers, the Borrowers shall repay the price caused
      by transferring their equity interest of ShenZhen JingWei in full, as the
      principal and the interests or capital use cost allowed by laws, to Party A;
      and

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (k)
       Comply
      strictly with the terms of this Agreement, and perform the obligations pursuant
      to this Agreement and do not conduct any action or nonfeasance that affects
      the
      validity and enforceability of such contracts.

    

    12.
       The
      Borrowers, as the shareholders of the ShenZhen JingWei, covenant that they
      shall
      cause the ShenZhen JingWei, during the term of this Agreement:

     

    (a)
       Not
      to
      supply, amend or modify its articles of association, or to increase or decrease
      its registered capital, or to change its capital structure in any way without
      Party A’s prior written consent;

    

    (b)
       To
      maintain and operate its business and deal with matters prudently and
      effectively, subject to good financial and business rules and
      practices,;

    

    (c)
       Not
      to
      sell, transfer, mortgage, dispose of in any other manner, or to create other
      security interest on, any of its assets, business or legal right to collect
      interests without Party A’s prior written consent;

    

    (d)
       Not
      to
      create, succeed to, guarantee or permit any liability, without the Party A’s
      prior written consent, except (i) the liability arising from the course of
      the
      ordinary or daily business operation, but not arising from the loan; and (ii)
      the liability reported to Party A or approved by Party A in
      writing;

    

    (e)
       To
      operate persistently all the business and to maintain the value of its
      assets;

    

    (f)
       Not
      to
      execute any material contracts (during this stage, a contract will be deemed
      material if the value of it exceeds RMB ¥ 100,000), without Party A’s prior
      written consent, other than those executed during the ordinary
      operation;

    

    (g)
       To
      provide information concerning all of its operation and financial affairs
      subject to Party A’s request;

    

    (h)
       Not
      to
      merger or combine with, buy or invest in, any other person without Party A’s
      prior written consent;

    

    (i)
       Not
      to
      issue dividends to each shareholder in any form without Party A’s prior written
      consent. However, the ShenZhen JingWei shall promptly allocate all its allocable
      profits to each of its shareholders upon the Party A’s request;

    

    (j)
       To
      inform
      promptly Party A of the pending or threatened suit, arbitration or regulatory
      procedure concerning the assets, business or income of the ShenZhen
      JingWei;

    

    (k)
       To
      execute all necessary or appropriate documents, to take all necessary or
      appropriate action and to bring all necessary or appropriate lawsuit or to
      make
      all necessary and appropriate defending against all compensation claims in
      order
      to maintain the ownership for all its assets;

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (l)
       To
      comply
      strictly with the terms of Service Agreement and other agreements executed
      by
      Party A, to perform their obligation under aforesaid agreements, and not to
      conduct any action or nonfeasance that affects the validity and enforceability
      of such agreements;

    

    13.
       This
      agreement is binding to all the parties herein and their respective successors
      and assignees only on their behalf. Without prior written approval of Party
      A,
      the Borrowers can not transfer, pledge or assign any right, benefit or
      obligation under this agreement.

    

    14.
       The
      Borrowers agree that Party A can assign its rights and duties under this
      agreement to a third party when it thinks necessary, in which Party A only
      needs
      to give a written notice to the Borrowers and no further consent of the
      Borrowers is required.

    

    15.
       The
      execution, validity, interpretation, performance, amendment, termination and
      the
      dispute resolution of this agreement are governed by the laws of
      PRC.

    

    16.
       Arbitration.

    

    Both
      Parties shall strive to settle any dispute, conflicts, or compensation claims
      arising from the interpretation or performance (including any issue relating
      to
      the existence, validity and termination) in connection with this Agreement
      through friendly consultation. In case no settlement can be reached within
      thirty (30) day after one party ask for the settlement, each party can submit
      such matter to China International Economic and Trade Arbitration Commission
      (the “CIETAC”) in accordance with its rules. The arbitration award shall be
      final and conclusive and binding upon the Parties.

    

    The
      arbitration should take place in
      Beijing.

    

    The
      arbitration language is Chinese.

    

    17.
       This
      Agreement shall be concluded on the date of execution. And all Parties agree
      that the terms and conditions of this Agreement shall be effective as of the
      date on which the Borrowers have obtained the loan and shall expire when both
      Parties has completed their obligations under this Agreement.

    

    18.
       The
      Borrowers cannot terminate or revoke this Agreement unless (a) Party A commits
      the material defect, fraud or other material illegal action; (b) the bankrupt
      of
      Party A.

    

    19.
       The
      Parties may amend and supply this Agreement with a written agreement. The
      amendment and supplement duly executed by the Parties shall be a part of this
      Agreement and shall have the same legal effect as this Agreement.

    

    20.
       This
      Agreement constitutes the entire agreement of the Parties with respect to the
      subject matters therein and supersedes and replaces all prior or contemporaneous
      verbal and written agreements and understandings.

    

    21.
       This
      Agreement is severable. If any clause of this Agreement is judged as invalid
      or
      non-enforceable according to relevant PRC Laws, such clause shall be deemed
      invalid only within the applicable area of the PRC Laws, and without affecting
      other clauses hereof in any way.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    22.
       Any
      party
      should protect the confidentiality of the information concerning the other
      party’s business, operation, financial situation or other confidential
      information obtained under this agreement or during the performance of this
      agreement.

    

    23.
       Any
      obligation arising from or terminated by this Agreement before the expiration
      or
      early termination this Agreement shall survive after such expiration or early
      termination. The Article 15, 16 and 22 shall survive after the termination
      of
      this Agreement.

    

    24.
       This
      Agreement has three original copies and is hold respectively by Party A, B
      and
      C, and each original copy has the same legal effect.

    

    Party
      A:
      JingWei HengTong Technology (ShenZhen)  Co., Ltd. 

    

    Legal
      Representative/Authorized Representative:

    

    Seal:

    

    

    Party
      B:
      Mr. JianGuo Du

    

    Signature:

    

    

    Party
      C:
      Ms. AiLing Yin

    

    Signature:

    

    Party
      D:
      Ms. GuiLing Yin

    

    Signature:

     

    
      
        
          Loan
            Agreement

        

      

      
        7Exhibit
        10.1

      SETTING
        FORTH THE PREFERENCES, RIGHTS AND LIMITATIONS OF

      SERIES
        C
        PREFERRED STOCK OF

      TORBAY
        HOLDINGS, INC.

      

       Torbay
        Holdings, Inc., a Delaware corporation (the "Corporation"), certifies that
        pursuant to the authority contained in Article Fourth of its Certificate
        of
        Incorporation and in accordance with the provisions of Section 151 of the
        General Corporation Law of the State of Delaware, the Corporation has the
        authority to issue 20,000,000 shares of Preferred Stock, par value $0.0001
        per
        share; and, further

      

      The
        Board
        of Directors of the Corporation has the authority to issue any or all of
        such
        shares in one or more series and by resolution to provide for the designation
        of
        each series to be issued pursuant to the foregoing authority.

      

      The
        Board
        of Directors previously designated 700,000 shares as Series 1 Preferred Stock,
        and 10,000,000 shares of Series B Preferred Stock leaving 9,300,000 shares
        undesignated.

      

      On
        September 28, 2007, the Board of Directors of the Corporation unanimously
        adopted the following resolution regarding the designation of 7,500,000
        additional series of preferred stock, to be designated as Series C Preferred
        Stock and the filing of a Certificate of Designation with respect thereto:
        

       

      “RESOLVED,
        that a series of the authorized preferred stock entitled Series C Preferred
        Stock is hereby created with the following designations, preferences and
        rights:

      

       Designation
        and Amount; Par Value.
        The
        shares of such series are designated as Series C Preferred Stock (the "Series
        C
        Preferred Stock") and the number of shares constituting such series is
        7,500,000. The par value of each share of the series is $0.0001.

      

       Voting.
        The
        holders of Series C Preferred Stock shall be entitled to vote on all matters
        as
        to which holders of Common Stock shall be entitled to vote (including, but
        not
        limited to, the election of directors of the Corporation), in the same manner
        and with the same effect as such holders of Common Stock, voting together
        with
        the holders of Common Stock as one class. Each share of Series C Preferred
        Stock
        shall entitle the holder thereof to sixty (60) votes. Each share of Series
        C
        Preferred Stock shall be entitled to receive notice of or attend any annual
        or
        extraordinary meeting of shareholders of the Corporation.

      

       Dividends.
        The
        holders of the Series C Preferred Shares shall have the same rights regarding
        dividends as Common Shares.

       

       Redemption
        at the Option of the Corporation.
        (a) The
        Corporation may redeem all, but not less than all, of the outstanding shares
        of
        Series C Preferred Stock as follows. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b) The
        date
        of an optional redemption of Series C Preferred Stock pursuant to this
        subsection (an "Optional Redemption Date") shall be a day not less than thirty
        (30) days from the date of the notice of optional redemption sent by the
        Corporation in accordance with the provisions set forth in this section below.
        No date will be an Optional Redemption Date unless the Optional Redemption
        Price
        (as hereinafter defined) is paid in full in cash on such date, and if not
        so
        paid in full, the Optional Redemption Date will be the date on which such
        Optional Redemption Price is fully paid as permitted and required by this
        Certificate of Designation. 

      

      (c)
        For
        each share of Series C Preferred Stock which is to be redeemed pursuant to
        this
        subsection, the Corporation will be obligated on the Optional Redemption
        Date to
        pay to the holder thereof, upon surrender by such holder at the Corporation's
        principal office of the certificate representing such shares of Series C
        Preferred Stock endorsed or assigned in blank to the Corporation, an amount
        equal to $1.00 per share, plus all accrued but unpaid dividends on such share
        (the “Optional Redemption Price”).

      

      (d)
        No
        share of Series C Preferred Stock is entitled to any dividends accruing after
        the Optional Redemption Date. On the Optional Redemption Date all rights
        of the
        holder of such share of Series C Preferred Stock will cease and such share
        of
        Series C Preferred Stock will not be deemed to be outstanding. Any shares
        of
        Series C Preferred Stock which are redeemed or otherwise acquired by the
        Corporation will be cancelled and will not be reissued, sold or
        transferred. 

      

      (e) Not
        less
        than 30 nor more than 60 days prior to the Optional Redemption Date, the
        Corporation shall give written notice to each of the holders of Series C
        Preferred Stock of any redemption to be made pursuant to this section specifying
        the date of such redemption and instructing the holders of Series C Preferred
        Stock where to deliver certificates for the shares being redeemed and any
        other
        information reasonably necessary in connection with such redemption.

      

      (f)
        In
        the event that the Corporation shall give notice to the holders of Series
        C
        Preferred Stock of an optional redemption by the Corporation, prior to the
        Optional Redemption Date each holder of Series C Preferred Stock shall have
        the
        right to convert some or all of such holder’s shares of Series C Preferred Stock
        into common stock of the Corporation as hereinafter provided.

       

      Mandatory
        Redemption.
        (a) The
        Corporation shall redeem any and all outstanding shares of Series C Preferred
        Stock on October 1, 2012 (the “Mandatory Redemption Date”). 

      

      (b)
        For
        each share of Series C Preferred Stock which is to be redeemed pursuant to
        this
        subsection, the Corporation will be obligated on the Mandatory Redemption
        Date
        to pay to the holder thereof, upon surrender by such holder at the Corporation's
        principal office of the certificate representing such shares of Series C
        Preferred Stock endorsed or assigned in blank to the Corporation, an amount
        equal to the Liquidation Preference (as such term is hereinafter defined)
        per
        share.

      

      (c)
        No
        share of Series C Preferred Stock is entitled to any dividends accruing after
        the Mandatory Redemption Date. On the Mandatory Redemption Date all rights
        of
        the holder of such share of Series C Preferred Stock, other than the right
        to
        receive payment of the Liquidation Preference per share of such Series C
        Preferred Stock upon surrender by such holder at the Corporation's principal
        office of the certificate representing such shares of Series C Preferred
        Stock
        endorsed or assigned in blank to the Corporation, will cease and such share
        of
        Series C Preferred Stock will not be deemed to be outstanding. Any shares
        of
        Series C Preferred Stock which are redeemed or otherwise acquired by the
        Corporation will be cancelled and will not be reissued, sold or
        transferred. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d) Not
        less
        than 30 nor more than 60 days prior to the Optional Redemption Date, the
        Corporation shall give written notice to ach of the holders of Series C
        Preferred Stock of the mandatory redemption to be made pursuant to this section
        specifying the date of such redemption and instructing the holders of Series
        C
        Preferred Stock where to deliver certificates for the shares being redeemed
        and
        any other information reasonably necessary in connection with such redemption.
        

      

      (e)
        Until
        the Mandatory Redemption Date, each holder of Series C Preferred Stock shall
        have the right to convert some or all of such holder’s shares of Series C
        Preferred Stock into common stock of the Corporation as hereinafter provided.
        

      

      (f)
        In
        the event of a redemption in accordance with this section, if the funds of
        the
        Corporation legally available for redemption of Series C Preferred Stock
        on the
        Mandatory Redemption Date are insufficient to redeem all of the shares of
        Series
        C Preferred Stock to be redeemed on such date, those funds which are legally
        available will be used to redeem the maximum possible number of shares of
        Series
        C Preferred Stock ratably among the holders of the Series C Preferred Stock
        to
        be redeemed. At any time thereafter when additional funds of the Corporation
        are
        legally available for the redemption of such Series C Preferred Stock, such
        funds will promptly be used to redeem the balance of the shares of such Series
        C
        Preferred Stock. 

       

      Conversion.
        (a)
Right
        to Convert.
        Each
        share of Series C Preferred Stock may at any time be converted at the option
        of
        the holder thereof into ten (10) shares of common stock of the Corporation
        (the
“Conversion Ratio”) provided and to the extent that the Corporation shall then
        have a sufficient number of authorized, but unissued shares of its common
        stock
        to issue upon such conversion. If at any time while any shares of Series
        C
        Preferred Stock remain outstanding the Corporation does not have a sufficient
        number of authorized and unissued shares of Common Stock to issue upon
        conversion of all of the outstanding shares of Series C Preferred Stock,
        then
        the Corporation shall as promptly as practicable use its reasonable best
        efforts
        to increase the Corporation's authorized Common Stock to an amount sufficient
        to
        allow the Corporation to have available a sufficient number of authorized
        and
        unissued shares of Common Stock to issue upon conversion of all of the shares
        of
        Series C Preferred Stock then outstanding. The Conversion Ratio shall be
        subject
        to adjustment as set forth in clause (c).

      

      (b)
        Mechanics
        of Conversion.
        Before
        any holder of Series C Preferred Stock shall be entitled to convert the same
        into shares of Common Stock, the holder shall surrender the certificate or
        certificates therefor, duly endorsed, at the office of the Corporation or
        of any
        transfer agent for the Series C Preferred Stock, and shall give written notice
        to this Corporation at its principal corporate office, of the election to
        convert the same and shall state therein the name or names in which the
        certificate or certificates for shares of Common Stock are to be issued.
        The
        Corporation shall, as soon as practicable thereafter, issue and deliver at
        such
        office to such holder of Series C Preferred Stock, or to the nominee or nominees
        of such holder, a certificate or certificates for the number of shares of
        Common
        Stock to which such holder shall be entitled as aforesaid. Such conversion
        shall
        be deemed to have been made immediately prior to the close of business on
        the
        date of such surrender of the shares of Series C Preferred Stock to be
        converted, and the person or persons entitled to receive the shares of Common
        Stock issuable upon such conversion shall be treated for all purposes as
        the
        record holder or holders of such shares of Common Stock as of such date.
        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)
        Conversion
        Ratio Adjustments of Series C Preferred Stock.
        The
        Conversion Ratio of the Series C Preferred Stock shall be subject to adjustment
        from time to time as follows:

       

      (i)
        In
        the event the Corporation should at any time or from time to time fix a record
        date for the effectuation of a split or subdivision of the outstanding shares
        of
        Common Stock or the determination of holders of Common Stock entitled to
        receive
        a dividend or other distribution payable in additional shares of Common Stock
        or
        other securities or rights convertible into, or entitling the holder thereof
        to
        receive directly or indirectly, additional shares of Common Stock (hereinafter
        referred to as “Common Stock Equivalents”) without payment of any consideration
        by such holder for the additional shares of Common Stock or the Common Stock
        Equivalents (including the additional shares of Common Stock issuable upon
        conversion or exercise thereof), then, as of such record date (or the date
        of
        such dividend distribution, split or subdivision if no record date is fixed),
        the Conversion Ratio of the Series C Preferred Stock shall be appropriately
        adjusted so that the number of shares of Common Stock issuable on conversion
        of
        each share of such Series C Preferred Stock shall be increased in proportion
        to
        such increase in the aggregate number of shares of Common Stock outstanding
        and
        those issuable with respect to such Common Stock Equivalents.

      

      (ii)
        If
        the number of shares of Common Stock outstanding at any time is decreased
        by a
        reverse stock split or combination of the outstanding shares of Common Stock,
        then, following the record date of such reverse stock split or combination,
        the
        Conversion Ratio for the Series C Preferred Stock shall be appropriately
        adjusted so that the number of shares of Common Stock issuable on conversion
        of
        each share of such series shall be decreased in proportion to such decrease
        in
        outstanding shares.

      

      (iii)
        In
        the event the Corporation shall declare a distribution payable in securities
        of
        other persons, evidences of indebtedness issued by the Corporation or other
        persons, assets (excluding cash dividends) or options or rights, then, in
        each
        such case, the holders of Series C Preferred Stock shall be entitled to a
        proportionate share of any such distribution as though they were the holders
        of
        the number of shares of Common Stock of the Corporation into which their
        shares
        of Series C Preferred Stock are convertible as of the record date fixed for
        the
        determination of the holders of Common Stock of the Corporation entitled
        to
        receive such distribution.

      

      (iv)
        If
        at any time or from time to time there shall be a recapitalization of the
        Common
        Stock (other than a subdivision or combination transaction provided for
        elsewhere herein), provision shall be made so that the holders of the Series
        C
        Preferred Stock shall thereafter be entitled to receive upon conversion of
        such
        series of Series C Preferred Stock the number of shares of stock or other
        securities or property of the Corporation or otherwise, to which a holder
        of the
        number of shares of Common Stock deliverable upon conversion of the Series
        C
        Preferred Stock held by such holder would have been entitled on such
        recapitalization. In any such case, appropriate adjustment shall be made
        in the
        application of the provisions of this clause with respect to the rights of
        the
        holders of Series C Preferred Stock after the recapitalization to the end
        that
        the provisions of this clause (including adjustment of the Conversion Ratio
        then
        in effect and the number of shares purchasable upon conversion of Series
        C
        Preferred Stock) shall be applicable after that event as nearly equivalent
        as
        may be practicable.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d) No
        Impairment.
        The
        Corporation will not, by amendment of this Certificate of Designation or
        the
        Certificate of Incorporation of the Corporation or through any reorganization,
        recapitalization, transfer of assets, consolidation, merger, dissolution,
        issue
        or sale of securities or any other voluntary action, avoid or seek to avoid
        the
        observance or performance of any of the terms to be observed or performed
        hereunder by the Corporation, but will at all times in good faith assist
        in the
        carrying out of all the provisions of this clause and in the taking of all
        such
        action as may be necessary or appropriate in order to protect the conversion
        rights of the holders of Series C Preferred Stock against
        impairment.

      

      (e) No
        Fractional Shares and Certificate as to Adjustments,

      

      (i)
        No
        fractional shares shall be issued upon the conversion of any share or shares
        of
        Series C Preferred Stock. In lieu of any fractional shares to which the holder
        would otherwise be entitled, the Corporation shall pay cash equal to such
        fraction multiplied by the then fair market value of a share of Common Stock
        as
        determined in good faith by the Board of Directors. The number of shares
        of
        Common Stock to be issued upon such conversion shall be determined on the
        basis
        of the total number of shares of Series C Preferred Stock the holder is at
        the
        time converting into Common Stock and the number of shares of Common Stock
        issuable upon such aggregate conversion.

      

      (ii)
        Upon
        the occurrence of each adjustment or readjustment of the Conversion Ratio
        of any
        series of Series C Preferred Stock pursuant to this clause, the Corporation,
        at
        its expense, shall promptly compute such adjustment or readjustment in
        accordance with the terms hereof and prepare and furnish to each holder of
        Series C Preferred Stock a certificate setting forth such adjustment or
        readjustment and showing in detail the facts upon which such adjustment or
        readjustment is based. The Corporation shall, upon the written request at
        any
        time of any holder of Series C Preferred Stock, furnish or cause to be furnished
        to such holder a like certificate setting forth (A) such adjustment and
        readjustment, (B) the Conversion Ratio at the time in effect, and (C) the
        number
        of shares of Common Stock and the amount, if any, of other property that
        at the
        time would be received upon the conversion of a share of Series C Preferred
        Stock.

      

      (f) Notices
        of Record Date.
        In the
        event of any taking by the Corporation of a record of the holders of any
        class
        of securities for the purpose of determining the holders thereof who are
        entitled to receive any dividend (other than a cash dividend) or other
        distribution, any right to subscribe for, purchase or otherwise acquire any
        shares of stock of any class or any other securities or property, or to receive
        any other right, the Corporation shall mail to each holder of Series C Preferred
        Stock, at least twenty (20) days prior to the date specified therein, a notice
        specifying the date on which any such record is to be taken for the purpose
        of
        such dividend, distribution or right, and the amount and character of such
        dividend, distribution or right.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Liquidation
        Preference.
        In the
        event of a Liquidation Event, the holders of Series C Preferred Stock shall
        be
        entitled to receive in cash out of the assets of the Corporation, whether
        from
        capital or from earnings available for distribution to its stockholders (the
        "Liquidation Funds"), before any amount shall be paid to the holders of any
        of
        the capital shares of the Corporation of any class junior in rank to the
        Series
        C Preferred Stock in respect of the preferences as to distributions and payments
        on the liquidation, dissolution and winding up of the Corporation ("Junior
        Shares"), an amount per share of Series C Preferred Stock equal to $0.60
        plus
        accrued, but unpaid dividends thereon (the “Liquidation Preference”); provided
        that, if the Liquidation Funds are insufficient to pay the full amount due
        to
        the holders and holders of shares of other classes or series of preferred
        shares
        of the Corporation that are of equal rank with the Series C Preferred Stock
        as
        to payments of Liquidation Funds (the "Pari Passu Shares"), then each holder
        of
        Series C Preferred Stock and Pari Passu Shares shall receive a percentage
        of the
        Liquidation Funds equal to the full amount of Liquidation Funds payable to
        such
        holder as a liquidation preference (in accordance with the terms of the
        certificate of designations (or other equivalent document or instrument)
        governing payments to the holder of such shares upon a dissolution or
        liquidation of the Corporation) as a percentage of the full amount of
        Liquidation Funds payable to all holders of Series C Preferred Stock and
        Pari
        Passu Shares. All the preferential amounts to be paid to the holders under
        this
        Section shall be paid or set apart for payment before the payment or setting
        apart for payment of any amount for, or the distribution of any Liquidation
        Funds of the Corporation to the holders of shares of other classes or series
        of
        preferred shares of the Corporation junior in rank to the Series C Preferred
        Stock in connection with a Liquidation Event as to which this Section applies.
        For purposes of this Section, "Liquidation Event" means the voluntary or
        involuntary liquidation, dissolution or winding up of the Corporation or
        any
        subsidiaries of the Corporation the assets of which constitute all or
        substantially all of the business of the Corporation and its subsidiaries
        taken
        as a whole, in a single transaction or series of transactions. The purchase
        or
        redemption by the Corporation of shares of any class, in any manner permitted
        by
        law, shall not, for the purposes hereof, be regarded as a Liquidation Event.
        For
        purposes hereof, any outstanding shares of Series B Preferred Stock shall
        be
        deemed to be Pari Passu Shares.

      

      IN
        WITNESS WHEREOF, TORBAY HOLDINGS, INC. has caused this Certificate of
        Designation to be executed by its President and attested to by its Secretary
        this 28th day of September, 2007.

       

      
        	 	 	 
	 	TORBAY
                HOLDINGS,
                INC.
	 
 	 
 	 
 
	 	By:  	/s/ Richard
                K
                Lauer
	 	
                
Richard
                K Lauer
	 	President

      ATTEST:

      

      
 

      /s/
        Richard K Lauer

      Secretary

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