Document:

EXHIBIT 10.7

     THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE
     NOT  BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT
     AS  OTHERWISE  SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED
     AS  OF  MAY  15,  2002,  NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE
     SOLD,  TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRA-TION
     STATEMENT  FOR SUCH SECURITIES UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN
     FORM,  SUBSTANCE AND SCOPE, CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
     TRANSACTIONS,  THAT  REGISTRATION  IS NOT REQUIRED UNDER SUCH ACT OR UNLESS
     SOLD  PURSUANT  TO  RULE  144  OR  REGULATION  S  UNDER  SUCH  ACT.

Right  to  Purchase  225,000  Shares  of  Common  Stock,  no par value per share

                             STOCK PURCHASE WARRANT

     THIS  CERTIFIES  THAT, for value received, __________________________ or
its  registered  assigns,  is entitled to purchase from Torbay Holdings, Inc., a
Delaware  corporation  (the  "Company"), at any time or from time to time during
the  period  specified  in  Paragraph 2 hereof, Two Hundred Twenty-Five Thousand
(225,000)  fully  paid  and  nonassessable shares of the Company's Common Stock,
$.0001  par value per share (the "Common Stock"), at an exercise price per share
equal  to  the  lesser  of (i) $.04 and (ii) the average of the lowest three (3)
Trading  Prices  (as  defined  below)  during  the  twenty (20) Trading Days (as
defined  below)  immediately prior to exercise (the "Exercise Price").  The term
"Warrant  Shares,"  as  used  herein,  refers  to  the  shares  of  Common Stock
purchasable hereunder.  The Warrant Shares and the Exercise Price are subject to
adjustment  as  provided  in Paragraph 4 hereof.  The term "Warrants" means this
Warrant  and  the  other  warrants  issued  pursuant  to that certain Securities
Purchase  Agreement, dated May 15, 2002, by and among the Company and the Buyers
listed  on  the  execution  page  thereof (the "Securities Purchase Agreement"),
including  any  additional  warrants  issuable pursuant to Section 4(l) thereof.
"Trading  Price"  means,  for  any security as of any date, the intraday trading
price  on  the  Over-the-Counter  Bulletin  Board  (the  "OTCBB") as reported by
Bloomberg  Financial  Markets  or  an  equivalent,  reliable  reporting  service
mutually  acceptable  to  and hereafter designated by the Company and the holder
hereof  ("Bloomberg")  or,  if the OTCBB is not the principal trading market for
such  security,  the  intraday  trading  price of such security on the principal
securities exchange or trading market where such security is listed or traded as
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reported  by  Bloomberg  or,  if  no  intraday trading price of such security is
available  in  any of the foregoing manners, the average of the intraday trading
prices  of  any  market  makers  for  such security that are listed in the "pink
sheets"  by  the National Quotation Bureau, Inc.  If the Trading Price cannot be
calculated  for  such  security  on  such date in the manner provided above, the
Trading  Price  shall  be  the  fair  market value as mutually determined by the
Company  and  the  holder hereof.  "Trading Day" shall mean any day on which the
Common  Sock  is  traded  for  any  period  on  the  OTCBB,  or on the principal
securities exchange or other securities market on which the Common Stock is then
being  traded.

     This Warrant is subject to the following terms, provisions, and conditions:

1.     MANNER  OF  EXERCISE;  ISSUANCE  OF  CERTIFICATES;  PAYMENT  FOR  SHARES.
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Subject  to  the  provisions hereof, this Warrant may be exercised by the holder
hereof,  in  whole or in part, by the surrender of this Warrant, together with a
completed  exercise  agreement  in  the  form  attached  hereto  (the  "Exercise
Agreement"),  to the Company during normal business hours on any business day at
the Company's principal executive offices (or such other office or agency of the
Company  as  it  may  designate  by  notice  to the holder hereof), and upon (i)
payment  to the Company in cash, by certified or official bank check or by wire
transfer  for  the  account of the Company of the Exercise Price for the Warrant
Shares  specified in the Exercise Agreement or (ii) if the resale of the Warrant
Shares  by  the  holder  is  not  then  registered  pursuant  to  an  effective
registration  statement  under  the  Securities  Act  of  1933,  as amended (the
"Securities Act"), delivery to the Company of a written notice of an election to
effect a "Cashless Exercise" (as defined in Section 11(c) below) for the Warrant
Shares  specified  in  the  Exercise  Agreement. The Warrant Shares so purchased
shall  be deemed to be issued to the holder hereof or such holder's designee, as
the  record  owner  of  such  shares, as of the close of business on the date on
which this Warrant shall have been surrendered, the completed Exercise Agreement
shall  have been delivered, and payment shall have been made for such shares as
set forth above. Certificates for the Warrant Shares so purchased, representing
the  aggregate  number  of  shares specified in the Exercise Agreement, shall be
delivered to the holder hereof within a reasonable time, not exceeding three (3)
business days, after this Warrant shall have been so exercised. The certificates
so  delivered  shall  be in such denominations as may be requested by the holder
hereof  and shall be registered in the name of such holder or such other name as
shall  be  designated  by such holder. If this Warrant shall have been exercised
only  in  part, then, unless this Warrant has expired, the Company shall, at its
expense,  at  the time of delivery of such certificates, deliver to the holder a
new Warrant representing the number of shares with respect to which this Warrant
shall  not then have been exercised. In addition to all other available remedies
at  law  or  in  equity,  if  the  Company fails to deliver certificates for the
Warrant  Shares  within three (3) business days after this Warrant is exercised,
then the Company shall pay to the holder in cash a penalty (the "Penalty") equal
to  2% of the number of Warrant Shares that the holder is entitled to multiplied
by  the Market Price for each day that the Company fails to deliver certificates
for  the  Warrant  Shares.  For  example,  if  the holder is entitled to 100,000
Warrant  Shares and the Market Price is $2.00, then the Company shall pay to the
holder  $4,000  for  each day that the Company fails to deliver certificates for
the  Warrant Shares. The Penalty shall be paid to the holder by the fifth day of
the  month  following  the  month  in  which  it  has  accrued.

     Notwithstanding anything in this Warrant to the contrary, in no event shall
the  holder  of  this  Warrant  be entitled to exercise a number of Warrants (or
portions thereof) in
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excess  of  the  number of Warrants (or portions thereof) upon exercise of which
the  sum  of  (i) the number of shares of Common Stock beneficially owned by the
holder and its affiliates (other than shares of Common Stock which may be deemed
beneficially  owned  through  the  ownership of the unexercised Warrants and the
unexercised  or  unconverted  portion  of  any  other  securities of the Company
(including  the  Debentures  (as  defined in the Securities Purchase Agreement))
subject  to  a  limitation on conversion or exercise analogous to the limitation
contained  herein)  and  (ii) the number of shares of Common Stock issuable upon
exercise  of  the  Warrants  (or  portions  thereof)  with  respect to which the
determination  described  herein  is  being  made,  would  result  in beneficial
ownership  by the holder and its affiliates of more than 4.9% of the outstanding
shares  of  Common  Stock.  For  purposes of the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities  Exchange  Act  of 1934, as amended, and Regulation 13D-G thereunder,
except as otherwise provided in clause (i) of the preceding sentence. The holder
of  this  Warrant  may  waive the limitations set forth herein by sixty-one (61)
days  written  notice  to  the Company. Notwithstanding anything to the contrary
contained  herein,  the  limitation on exercise of this Warrant set forth herein
may  not be amended without (i) the written consent of the holder hereof and the
Company  and  (ii)  the  approval  of a majority of shareholders of the Company.

     2. PERIOD OF EXERCISE. This Warrant is exercisable at any time or from time
to  time  on  or  after  the  date on which this Warrant is issued and delivered
pursuant to the terms of the Securities Purchase Agreement and before 6:00 p.m.,
New  York,  New York time on the third (3rd) anniversary of the date of issuance
(the  "Exercise  Period").

     3.  CERTAIN  AGREEMENTS  OF  THE  COMPANY. The Company hereby covenants and
agrees  as  follows:

          (a) SHARES TO BE FULLY PAID. All Warrant Shares will, upon issuance in
     accordance  with  the terms of this Warrant, be validly issued, fully paid,
     and  nonassessable and free from all taxes, liens, and charges with respect
     to  the  issue  thereof.

          (b)  RESERVATION  OF  SHARES.  During the Exercise Period, the Company
     shall  at  all  times  have  authorized,  and  reserved  for the purpose of
     issuance  upon  exercise of this Warrant, a sufficient number of shares of
     Common  Stock  to  provide  for  the  exercise  of  this  Warrant.

          (c)  LISTING.  The  Company  shall  promptly secure the listing of the
     shares  of  Common  Stock  issuable  upon exercise of the Warrant upon each
     national  securities  exchange  or automated quotation system, if any, upon
     which shares of Common Stock are then listed (subject to official notice of
     issuance  upon exercise of this Warrant) and shall maintain, so long as any
     other shares of Common Stock shall be so listed, such listing of all shares
     of  Common  Stock  from  time  to  time  issuable upon the exercise of this
     Warrant; and the Company shall so list on each national securities exchange
     or  automated quotation system, as the case may be, and shall maintain such
     listing  of, any other shares of capital stock of the Company issuable upon
     the exercise of this Warrant if and so long as any shares of the same class
     shall be listed on such national securities exchange or automated quotation
     system.

          (d)  CERTAIN ACTIONS PROHIBITED. The Company will not, by amendment of
     its  charter  or  through  any  reorganization,  transfer  of  assets,
     consolidation,  merger,  dissolution,  issue or sale of securities, or any
     other  voluntary  action,  avoid  or  seek  to  avoid  the  observance  or
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     performance  of  any  of  the  terms  to  be  observed  or  performed by it
     hereunder,  but  will at all times in good faith assist in the carrying out
     of  all the provisions of this Warrant and in the taking of all such action
     as  may  reasonably  be requested by the holder of this Warrant in order to
     protect  the  exercise  privilege  of  the  holder  of this Warrant against
     dilution  or  other  impairment,  consistent with the tenor and purpose of
     this  Warrant.  Without  limiting  the  general-ity  of  the foregoing, the
     Company  (i)  will not increase the par value of any shares of Common Stock
     receivable  upon the exercise of this Warrant above the Exercise Price then
     in  effect,  and  (ii)  will  take  all such actions as may be necessary or
     appropriate  in  order that the Company may validly and legally issue fully
     paid  and  nonassessable  shares  of Common Stock upon the exercise of this
     Warrant.

          (e)  SUCCESSORS  AND  ASSIGNS.  This  Warrant will be binding upon any
     entity  succeeding  to the Company by merger, consolidation, or acquisition
     of  all  or  substantially  all  the  Company's  assets.

     4.  ANTIDILUTION PROVISIONS. During the Exercise Period, the Exercise Price
and  the  number  of  Warrant Shares shall be subject to adjustment from time to
time  as  provided  in  this  Paragraph  4.

     In  the  event that any adjustment of the Exercise Price as required herein
results  in a fraction of a cent, such Exercise Price shall be rounded up to the
nearest  cent.

          (a) ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES UPON ISSUANCE OF
     COMMON  STOCK.  Except  as  otherwise  provided in Paragraphs 4(c) and 4(e)
     hereof,  if  and whenever on or after the date of issuance of this Warrant,
     the Company issues or sells, or in accordance with Paragraph 4(b) hereof is
     deemed  to  have  issued  or  sold,  any  shares  of  Common  Stock  for no
     consideration  or  for  a  consideration  per  share  (before  deduction of
     reasonable  expenses or commissions or underwriting discounts or allowances
     in  connection  therewith)  less  than  the  Market  Price  (as hereinafter
     defined)  on the date of issuance (a "Dilutive Issuance"), then immediately
     upon  the  Dilutive Issuance, the Exercise Price will be reduced to a price
     determined by multiplying the Exercise Price in effect immediately prior to
     the  Dilutive  Issuance  by  a  fraction,  (i) the numerator of which is an
     amount  equal  to  the  sum  of  (x)  the  number of shares of Common Stock
     actually  outstanding  immediately prior to the Dilutive Issuance, plus (y)
     the  quotient  of  the  aggregate consideration, calculated as set forth in
     Paragraph  4(b) hereof, received by the Company upon such Dilutive Issuance
     divided  by  the  Market  Price in effect immediately prior to the Dilutive
     Issuance,  and  (ii) the denominator of which is the total number of shares
     of Common Stock Deemed Outstanding (as defined below) immediately after the
     Dilutive  Issuance.

          (b)  EFFECT  ON  EXERCISE  PRICE  OF  CERTAIN  EVENTS. For purposes of
     determining  the  adjusted  Exercise Price under Paragraph 4(a) hereof, the
     following  will  be  applicable:

               (i)  ISSUANCE  OF RIGHTS OR OPTIONS. If the Company in any manner
          issues  or  grants  any  warrants,  rights  or options, whether or not
          immediately  exercisable, to subscribe for or to purchase Common Stock
          or  other securities convertible into or exchangeable for Common Stock
          ("Convertible  Securities")  (such  warrants,  rights  and  options to
          purchase  Common  Stock  or  Convertible  Securities  are  hereinafter
          referred  to  as  "Options")  and the price per share for which Common
          Stock  is  issuable upon the exercise of such Options is less than the
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          Market  Price  on  the date of issuance or grant of such Options, then
          the  maximum  total number of shares of Common Stock issuable upon the
          exercise  of  all such Options will, as of the date of the issuance or
          grant  of  such  Options, be deemed to be outstanding and to have been
          issued  and sold by the Company for such price per share. For purposes
          of the preceding sentence, the "price per share for which Common Stock
          is  issuable  upon  the  exercise  of  such  Options" is determined by
          dividing  (i)  the total amount, if any, received or receivable by the
          Company  as  consideration  for  the  issuance or granting of all such
          Options,  plus  the  minimum  aggregate  amount  of  additional
          consideration, if any, payable to the Company upon the exercise of all
          such  Options,  plus,  in  the case of Convertible Securities issuable
          upon  the  exercise  of  such Options, the minimum aggregate amount of
          additional  consideration  payable  upon  the  conversion  or exchange
          thereof  at  the  time  such  Convertible  Securities  first  become
          convertible  or  exchangeable,  by  (ii)  the  maximum total number of
          shares  of Common Stock issuable upon the exercise of all such Options
          (assuming  full  conversion of Convertible Securities, if applicable).
          No  further  adjustment  to  the  Exercise Price will be made upon the
          actual issuance of such Common Stock upon the exercise of such Options
          or  upon the conversion or exchange of Convertible Securities issuable
          upon  exercise  of  such  Options.

               (ii)  ISSUANCE  OF  CONVERTIBLE SECURITIES. If the Company in any
          manner  issues  or  sells  any  Convertible Securities, whether or not
          immediately  convertible  (other than where the same are issuable upon
          the  exercise  of  Options)  and  the price per share for which Common
          Stock  is  issuable  upon such conversion or exchange is less than the
          Market Price on the date of issuance, then the maximum total number of
          shares of Common Stock issuable upon the conversion or exchange of all
          such  Convertible  Securities  will, as of the date of the issuance of
          such  Convertible  Securities, be deemed to be outstanding and to have
          been  issued and sold by the Company for such price per share. For the
          purposes  of  the  preceding  sentence, the "price per share for which
          Common  Stock  is  issuable  upon  such  conversion  or  exchange"  is
          determined  by  dividing  (i)  the  total  amount, if any, received or
          receivable by the Company as consideration for the issuance or sale of
          all  such Convertible Securities, plus the minimum aggregate amount of
          additional  consideration,  if  any,  payable  to the Company upon the
          conversion or exchange thereof at the time such Convertible Securities
          first  become  convertible  or exchangeable, by (ii) the maximum total
          number  of  shares  of  Common  Stock  issuable upon the conversion or
          exchange  of all such Convertible Securities. No further adjustment to
          the  Exercise  Price  will  be  made  upon the actual issuance of such
          Common  Stock  upon  conversion  or  exchange  of  such  Convertible
          Securities.

               (iii)  CHANGE  IN  OPTION PRICE OR CONVERSION RATE. If there is a
          change  at  any  time  in  (i)  the amount of additional consideration
          payable  to  the  Company  upon  the exercise of any Options; (ii) the
          amount  of  additional  consideration,  if any, payable to the Company
          upon  the  conversion  or  exchange  of any Convertible Securities; or
          (iii)  the  rate  at  which any Convertible Securities are convertible
          into  or  exchangeable for Common Stock (other than under or by reason
          of  provisions  designed  to  protect  against dilution), the Exercise
          Price  in  effect at the time of such change will be readjusted to the
          Exercise  Price  which would have been in effect at such time had such
          Options  or Convertible Securities still outstanding provided for such
          changed  additional  consideration  or changed conversion rate, as the
          case  may  be,  at  the  time  initially  granted,  issued  or  sold.
<PAGE>
               (iv)  TREATMENT  OF  EXPIRED  OPTIONS AND UNEXERCISED CONVERTIBLE
          SECURITIES.
          If,  in  any case, the total number of shares of Common Stock issuable
          upon  exercise  of  any  Option  or upon conversion or exchange of any
          Convertible  Securities  is  not,  in  fact,  issued and the rights to
          exercise  such  Option  or  to  convert  or  exchange such Convertible
          Securities  shall  have expired or terminated, the Exercise Price then
          in  effect  will  be readjusted to the Exercise Price which would have
          been  in effect at the time of such expiration or termination had such
          Option  or  Convertible  Securities,  to  the  extent  outstanding
          immediately  prior  to  such  expiration or termination (other than in
          respect  of  the  actual  number of shares of Common Stock issued upon
          exercise  or  conversion  thereof),  never  been  issued.

               (v)  CALCULATION  OF CONSIDERATION RECEIVED. If any Common Stock,
          Options  or  Convertible  Securities  are  issued, granted or sold for
          cash, the consideration received therefor for purposes of this Warrant
          will  be the amount received by the Company therefor, before deduction
          of  reasonable  commissions,  underwriting  discounts or allowances or
          other  reasonable  expenses  paid  or  incurred  by  the  Company  in
          connection  with  such  issuance,  grant  or  sale. In case any Common
          Stock,  Options  or  Convertible  Securities  are issued or sold for a
          consideration  part  or  all  of  which  shall be other than cash, the
          amount  of  the  consideration other than cash received by the Company
          will  be  the  fair  value  of  such  consideration, except where such
          consideration  consists  of  securities,  in  which case the amount of
          consideration received by the Company will be the Market Price thereof
          as  of  the  date  of  receipt.  In  case any Common Stock, Options or
          Convertible  Securities are issued in connection with any acquisition,
          merger  or  consolidation  in  which  the  Company  is  the  surviving
          corporation, the amount of consideration therefor will be deemed to be
          the  fair  value of such portion of the net assets and business of the
          non-surviving  corporation  as  is  attributable to such Common Stock,
          Options  or Convertible Securities, as the case may be. The fair value
          of  any consideration other than cash or securities will be determined
          in  good  faith  by  the  Board  of  Directors  of  the  Company.

               (vi) EXCEPTIONS TO ADJUSTMENT OF EXERCISE PRICE. No adjustment to
          the Exercise Price will be made (i) upon the exercise of any warrants,
          options  or  convertible securities granted, issued and outstanding on
          the  date of issuance of this Warrant; (ii) upon the grant or exercise
          of  any  stock  or options which may hereafter be granted or exercised
          under any employee benefit plan, stock option plan or restricted stock
          plan  of  the Company now existing or to be implemented in the future,
          so  long  as  the  issuance  of such stock or options is approved by a
          majority  of  the independent members of the Board of Directors of the
          Company  or  a  majority  of the members of a committee of independent
          directors  established for such purpose; or (iii) upon the exercise of
          the  Warrants.

          (c)  SUBDIVISION OR COMBINATION OF COMMON STOCK. If the Company at any
     time  subdivides  (by  any  stock  split, stock dividend, recapitalization,
     reorganization,  reclassification  or otherwise) the shares of Common Stock
     acquirable  hereunder into a greater number of shares, then, after the date
     of  record  for  effecting  such  subdivision, the Exercise Price in effect
     immediately  prior  to such subdivision will be proportionately reduced. If
     the Company at any time combines (by reverse stock split, recapitalization,
     reorganization,  reclassification  or otherwise) the shares of Common Stock
     acquirable  hereunder into a smaller number of shares, then, after the date
     of  record  for  effecting  such  combination, the Exercise Price in effect
     immediately  prior  to  such combination will be proportionately increased.

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          (d)  ADJUSTMENT  IN  NUMBER  OF  SHARES.  Upon  each adjustment of the
     Exercise  Price  pursuant to the provisions of this Paragraph 4, the number
     of  shares  of Common Stock issuable upon exercise of this Warrant shall be
     adjusted  by  multiplying  a  number  equal to the Exercise Price in effect
     immediately  prior  to  such  adjustment  by the number of shares of Common
     Stock  issuable  upon  exercise  of  this Warrant immediately prior to such
     adjustment  and  dividing  the product so obtained by the adjusted Exercise
     Price.

          (e)CONSOLIDATION, MERGER OR SALE. In case of any consolidation of the
     Company  with,  or  merger of the Company into any other corporation, or in
     case of any sale or conveyance of all or substantially all of the assets of
     the Company other than in connection with a plan of complete liquidation of
     the  Company,  then as a condition of such consolidation, merger or sale or
     conveyance,  adequate  provision  will  be  made whereby the holder of this
     Warrant  will  have  the right to acquire and receive upon exercise of this
     Warrant  in  lieu  of  the  shares  of Common Stock immediately theretofore
     acquirable  upon  the  exercise  of  this  Warrant,  such  shares of stock,
     securities  or  assets  as  may  be issued or payable with respect to or in
     exchange  for  the number of shares of Common Stock immediately theretofore
     acquirable  and  receivable  upon  exercise  of  this  Warrant  had  such
     consolidation,  merger  or  sale or conveyance not taken place. In any such
     case,  the  Company  will  make  appropriate  provision  to insure that the
     provisions  of  this  Paragraph  4  hereof will thereafter be applicable as
     nearly  as  may  be  in  relation  to  any  shares  of  stock or securities
     thereafter  deliverable upon the exercise of this Warrant. The Company will
     not  effect any consolidation, merger or sale or conveyance unless prior to
     the  consummation  thereof,  the  successor  corporation (if other than the
     Company) assumes by written instrument the obligations under this Paragraph
     4  and the obligations to deliver to the holder of this Warrant such shares
     of  stock,  securities  or  assets  as,  in  accordance  with the foregoing
     provisions,  the  holder  may  be  entitled  to  acquire.

          (f)  DISTRIBUTION OF ASSETS. In case the Company shall declare or make
     any  distribution of its assets (including cash) to holders of Common Stock
     as  a  partial  liquidating  dividend,  by  way  of  return  of  capital or
     otherwise,  then,  after  the  date  of record for determining stockholders
     entitled  to  such distribution, but prior to the date of distribution, the
     holder  of this Warrant shall be entitled upon exercise of this Warrant for
     the purchase of any or all of the shares of Common Stock subject hereto, to
     receive  the  amount  of  such  assets which would have been payable to the
     holder  had  such  holder been the holder of such shares of Common Stock on
     the  record  date  for  the  determination of stockholders entitled to such
     distribution.

          (g)  NOTICE  OF  ADJUSTMENT.  Upon  the  occurrence of any event which
     requires any adjustment of the Exercise Price, then, and in each such case,
     the  Company shall give notice thereof to the holder of this Warrant, which
     notice  shall  state  the Exercise Price resulting from such adjustment and
     the  increase  or  decrease  in the number of Warrant Shares purchasable at
     such  price upon exercise, setting forth in reasonable detail the method of
     calculation  and  the  facts  upon  which  such  calculation is based. Such
     calculation  shall  be  certified  by  the  Chief  Financial Officer of the
     Company.

          (h)  MINIMUM  ADJUSTMENT  OF  EXERCISE  PRICE.  No  adjustment  of the
     Exercise  Price  shall be made in an amount of less than 1% of the Exercise
     Price  in  effect  at  the time such adjustment is otherwise required to be
     made,  but any such lesser adjustment shall be carried forward and shall be
     made  at  the  time and together with the next subsequent adjustment which,

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     together  with any adjustments so carried forward, shall amount to not less
     than  1%  of  such  Exercise  Price.

          (i)  NO FRACTIONAL SHARES. No fractional shares of Common Stock are to
     be  issued  upon  the exercise of this Warrant, but the Company shall pay a
     cash adjustment in respect of any fractional share which would otherwise be
     issuable  in  an amount equal to the same fraction of the Market Price of a
     share  of  Common  Stock  on  the  date  of  such  exercise.

          (j)  OTHER  NOTICES.  In  case  at  any  time:

               (i)  the Company shall declare any dividend upon the Common Stock
          payable in shares of stock of any class or make any other distribution
          (including  dividends or distributions payable in cash out of retained
          earnings)  to  the  holders  of  the  Common  Stock;

               (ii)  the  Company  shall  offer for subscription pro rata to the
          holders  of  the  Common  Stock  any additional shares of stock of any
          class  or  other  rights;

               (iii)  there shall be any capital reorganization of the Company,
          or reclassification of the Common Stock, or consolidation or merger of
          the  Company  with  or  into, or sale of all or substantially all its
          assets  to,  another  corporation  or  entity;  or

               (iv)  there  shall  be  a  voluntary or involuntary dissolution,
          liquidation or winding up of the Company; then, in each such case, the
          Company  shall  give  to  the holder of this Warrant (a) notice of the
          date  on  which the books of the Company shall close or a record shall
          be  taken  for  determining  the  holders  of Common Stock entitled to
          receive  any  such  dividend, distribution, or subscription rights or
          for  determining  the  holders  of  Common  Stock  entitled to vote in
          respect  of  any such reorganization, reclassification, consolidation,
          merger,  sale,  dissolution,  liquidation or winding-up and (b) in the
          case  of  any  such  reorganization,  reclassification, consolidation,
          merger,  sale,  dissolution,  liquidation or winding-up, notice of the
          date (or, if not then known, a reasonable approximation thereof by the
          Company)  when  the  same  shall  take  place.  Such notice shall also
          specify  the  date  on  which  the  holders  of  Common Stock shall be
          entitled  to  receive  such  dividend,  distribution,  or subscription
          rights or to exchange their Common Stock for stock or other securities
          or  property  deliverable upon such reorganization, re-classification,
          consolidation, merger, sale, dissolution, liquidation, or winding-up,
          as  the case may be. Such notice shall be given at least 30 days prior
          to the record date or the date on which the Company's books are closed
          in  respect  thereto.  Failure  to  give any such notice or any defect
          therein  shall  not affect the validity of the proceedings referred to
          in  clauses  (i),  (ii),  (iii)  and  (iv)  above.

          (k)  CERTAIN  EVENTS.  If any event occurs of the type contemplated by
     the  adjustment  provisions  of this Paragraph 4 but not expressly provided
     for  by  such  provisions,  the  Company  will give notice of such event as
     provided  in  Paragraph  4(g)  hereof, and the Company's Board of Directors
     will make an appropriate adjustment in the Exercise Price and the number of
     shares of Common Stock acquirable upon exercise of this Warrant so that the
     rights  of  the  holder  shall  be  neither enhanced nor diminished by such
     event.

<PAGE>
          (l)  CERTAIN  DEFINITIONS.

               (i)  "COMMON  STOCK  DEEMED OUTSTANDING" shall mean the number of
          shares  of  Common Stock actually outstanding (not including shares of
          Common  Stock  held in the treasury of the Company), plus (x) pursuant
          to  Paragraph  4(b)(i)  hereof,  the maximum total number of shares of
          Common  Stock issuable upon the exercise of Options, as of the date of
          such  issuance  or  grant of such Options, if any, and (y) pursuant to
          Paragraph  4(b)(ii)  hereof,  the  maximum  total  number of shares of
          Common  Stock  issuable  upon  conversion  or  exchange of Convertible
          Securities, as of the date of issuance of such Convertible Securities,
          if  any.

               (ii) "MARKET PRICE," as of any date, (i) means the average of the
          last  reported sale prices for the shares of Common Stock on the OTCBB
          for  the  five  (5)  Trading  Days  immediately preceding such date as
          reported  by  Bloomberg,  or  (ii)  if  the OTCBB is not the principal
          trading market for the shares of Common Stock, the average of the last
          reported  sale  prices  on the principal trading market for the Common
          Stock  during  the  same  period as reported by Bloomberg, or (iii) if
          market  value  cannot  be  calculated  as  of  such date on any of the
          foregoing  bases,  the  Market Price shall be the fair market value as
          reasonably  determined  in good faith by (a) the Board of Directors of
          the Company or, at the option of a majority-in-interest of the holders
          of  the  outstanding Warrants by (b) an independent investment bank of
          nationally  recognized standing in the valuation of businesses similar
          to  the  business  of  the  corporation. The manner of determining the
          Market Price of the Common Stock set forth in the foregoing definition
          shall  apply  with respect to any other security in respect of which a
          determination  as  to  market  value  must  be  made  hereunder.

               (iii)  "COMMON STOCK," for purposes of this Paragraph 4, includes
          the Common Stock, par value $.0001 per share, and any additional class
          of  stock  of  the  Company  having  no  preference as to dividends or
          distributions  on  liquidation,  provided  that the shares purchasable
          pursuant  to  this  Warrant shall include only shares of Common Stock,
          par  value  $.0001  per  share,  in  respect  of which this Warrant is
          exercisable,  or  shares resulting from any subdivision or combination
          of  such  Common  Stock,  or  in  the  case  of  any  reorganization,
          reclassification,  consolidation,  merger,  or  sale  of the character
          referred to in Paragraph 4(e) hereof, the stock or other securities or
          property  provided  for  in  such  Paragraph.

     5.  ISSUE  TAX.  The  issuance  of certificates for Warrant Shares upon the
exercise  of  this  Warrant  shall  be made without charge to the holder of this
Warrant  or  such shares for any issuance tax or other costs in respect thereof,
provided  that  the  Company  shall  not be required to pay any tax which may be
payable  in respect of any transfer involved in the issuance and delivery of any
certificate  in  a  name  other  than  the  holder  of  this  Warrant.

     6. NO RIGHTS OR LIABILITIES AS A SHAREHOLDER. This Warrant shall not
entitle the holder hereof to any voting rights or other rights as a stockholder
of the Company. No provision of this Warrant, in the absence of affirmative
action by the holder hereof to purchase Warrant Shares, and no mere enumeration
herein of the rights or privileges of the holder hereof, shall give rise to any
liability of such holder for the Exercise Price or as a shareholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.
<PAGE>
7.     TRANSFER,  EXCHANGE,  AND  REPLACEMENT  OF  WARRANT.

          (a)  RESTRICTION  ON  TRANSFER. This Warrant and the rights granted to
     the  holder hereof are transferable, in whole or in part, upon surrender of
     this  Warrant,  together  with  a  properly executed assignment in the form
     attached  hereto,  at  the  office  or agency of the Company referred to in
     Paragraph  7(e)  below, pro-vided, however, that any transfer or assignment
     shall  be  subject to the conditions set forth in Paragraph 7(f) hereof and
     to  the  applicable  provisions of the Securities Purchase Agreement. Until
     due  presentment  for registration of transfer on the books of the Company,
     the  Company may treat the registered holder hereof as the owner and holder
     hereof  for  all  purposes,  and  the  Company shall not be affected by any
     notice to the con-trary. Notwithstanding anything to the contrary contained
     herein,  the  registration  rights  described in Paragraph 8 are assignable
     only  in accordance with the provisions of that certain Registration Rights
     Agreement  of  even  date  herewith  by and among the Company and the other
     signatories  thereto  (the  "Registration  Rights  Agreement").

          (b) WARRANT EXCHANGEABLE FOR DIFFERENT DENOMINA-TIONS. This Warrant is
     exchange-able, upon the surrender hereof by the holder hereof at the office
     or  agency  of  the  Company  referred  to in Paragraph 7(e) below, for new
     Warrants  of like tenor representing in the aggregate the right to purchase
     the number of shares of Common Stock which may be purchased hereunder, each
     of  such  new  Warrants  to  represent the right to purchase such number of
     shares  as  shall  be  designated  by the holder hereof at the time of such
     surrender.

          (c)  REPLACEMENT  OF  WARRANT.  Upon  receipt  of evi-dence reasonably
     satisfactory  to the Company of the loss, theft, destruction, or mutilation
     of this  Warrant  and,  in  the  case  of  any  such  loss,  theft, or
     destruction,  upon  delivery  of  an  indemnity  agreement  reason-ably
     satisfactory in form and amount to the Company, or, in the case of any such
     mutilation,  upon  surrender and cancellation of this Warrant, the Company,
     at its expense, will execute and deliver, in lieu thereof, a new Warrant of
     like  tenor.

          (d)  CANCELLATION;  PAYMENT  OF  EXPENSES.  Upon the surrender of this
     Warrant  in  connection  with  any  trans-fer,  exchange, or replacement as
     provided  in  this  Paragraph 7, this Warrant shall be promptly canceled by
     the  Company.  The  Company  shall  pay  all  taxes  (other than securities
     transfer  taxes) and all other expenses (other than legal expenses, if any,
     incurred  by  the  holder or transferees) and charges payable in connection
     with  the preparation, execution, and delivery of Warrants pursuant to this
     Paragraph  7.

          (e)  REGISTER.  The Company shall maintain, at its principal executive
     offices  (or such other office or agency of the Company as it may designate
     by  notice to the holder hereof), a register for this Warrant, in which the
     Company  shall record the name and address of the person in whose name this
     Warrant has been issued, as well as the name and address of each transferee
     and  each  prior  owner  of  this  Warrant.

          (f)  EXERCISE OR TRANSFER WITHOUT REGISTRATION. If, at the time of the
     surrender  of  this  Warrant  in connection with any exercise, transfer, or
     exchange  of  this  Warrant, this Warrant (or, in the case of any exercise,
     the  Warrant  Shares issuable hereunder), shall not be registered under the
     Securities  Act  of  1933,  as  amended  (the  "Securities  Act") and under
     applicable state securities or blue sky laws, the Company may require, as a
     condition  of  allowing  such exercise, transfer, or exchange, (i) that the
     holder  or  transferee  of this Warrant, as the case
<PAGE>
     may  be, furnish to the Company a written opinion of counsel, which opinion
     and  counsel  are  acceptable  to  the  Company,  to  the  effect that such
     exercise, transfer, or exchange may be made without registration under said
     Act  and  under applicable state securities or blue sky laws, (ii) that the
     holder  or  transferee  execute  and  deliver  to the Company an investment
     letter  in  form and substance acceptable to the Company and (iii) that the
     transferee  be  an  "accredited  investor"  as  defined  in  Rule  501(a)
     promulgated under the Securities Act; provided that no such opinion, letter
     or  status as an "accredited investor" shall be required in connection with
     a  transfer pursuant to Rule 144 under the Securities Act. The first holder
     of  this Warrant, by taking and holding the same, represents to the Company
     that  such  holder  is acquiring this Warrant for investment and not with a
     view  to  the  distribution  thereof.

     8.  REGISTRATION  RIGHTS.  The  initial holder of this Warrant (and certain
assignees  thereof)  is  entitled  to the benefit of such registration rights in
respect  of the Warrant Shares as are set forth in Section 2 of the Registration
Rights  Agreement.

     9.  NOTICES.  All  notices, requests, and other com-munications required or
permitted to be given or delivered hereunder to the holder of this Warrant shall
be  in writing, and shall be personally delivered, or shall be sent by certified
or  registered mail or by recognized overnight mail courier, postage prepaid and
addressed,  to  such holder at the address shown for such holder on the books of
the  Company,  or  at  such  other  address  as shall have been furnished to the
Company  by  notice  from  such  holder.  All  notices,  requests,  and  other
communications  required  or permitted to be given or delivered hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid  and  addressed,  to the office of the Company at 4 Mulford Place, Suite
2G, Hempstead, NY 11550, Attention: President and Chief Executive Officer, or at
such other address as shall have been furnished to the holder of this Warrant by
notice from the Company. Any such notice, request, or other communication may be
sent by facsimile, but shall in such case be subsequently confirmed by a writing
personally  delivered  or  sent by certified or registered mail or by recognized
overnight  mail  courier  as  provided  above.  All notices, requests, and other
communications  shall  be  deemed  to  have been given either at the time of the
receipt thereof by the person entitled to re-ceive such notice at the address of
such  person  for  purposes  of this Paragraph 9, or, if mailed by registered or
certified mail or with a recognized overnight mail courier upon deposit with the
United  States Post Office or such overnight mail courier, if postage is prepaid
and  the  mailing  is  properly  addressed,  as  the  case  may  be.

     10.  GOVERNING  LAW.  THIS  WARRANT  SHALL  BE  ENFORCED,  GOVERNED  BY AND
CONSTRUED  IN  ACCORDANCE  WITH  THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS  MADE AND TO BE PERFORMED ENTIRELY WITH SUCH STATE, WITHOUT REGARD TO
THE  PRINCIPLES  OF  CONFLICT  OF  LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE
EXCLUSIVE  JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW  YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS
ENTERED  INTO  IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.  BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO
THE  MAINTENANCE  OF  SUCH  SUIT  OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT
SERVICE  OF  PROCESS  UPON  A  PARTY  MAILED  BY  FIRST  CLASS  MAIL

<PAGE>

SHALL  BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN
ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO
SERVE  PROCESS  IN  ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A
FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE
AND  MAY  BE  ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY
OTHER  LAWFUL  MANNER.  THE  PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING
UNDER  THIS  WARRANT  SHALL  BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING
ATTORNEYS'  FEES,  INCURRED  BY  THE  PREVAILING  PARTY  IN CONNECTION WITH SUCH
DISPUTE.

     11.  MISCELLANEOUS.
          (a)  AMENDMENTS.  This  Warrant  and  any provision hereof may only be
     amended  by  an  instrument in writing signed by the Company and the holder
     hereof.

          (b)  DESCRIPTIVE  HEADINGS.  The  descriptive  headings of the several
     paragraphs  of  this  Warrant are in-serted for purposes of reference only,
     and  shall  not affect the meaning or construction of any of the provisions
     hereof.

          (c)  CASHLESS  EXERCISE.  Notwithstanding  anything  to  the  contrary
     contained  in  this  Warrant,  if  the  resale of the Warrant Shares by the
     holder  is  not  then  registered  pursuant  to  an  effective registration
     statement  under  the  Securities  Act,  this  Warrant  may be exercised by
     presentation  and surrender of this Warrant to the Company at its principal
     executive offices with a written notice of the holder's intention to effect
     a  cashless  exercise,  including  a calculation of the number of shares of
     Common  Stock  to be issued upon such exercise in accordance with the terms
     hereof  (a  "Cashless  Exercise").  In the event of a Cashless Exercise, in
     lieu  of paying the Exercise Price in cash, the holder shall surrender this
     Warrant for that number of shares of Common Stock determined by multiplying
     the  number  of Warrant Shares to which it would otherwise be entitled by a
     fraction,  the  numerator of which shall be the difference between the then
     current  Market Price per share of the Common Stock and the Exercise Price,
     and  the  denominator  of  which shall be the then current Market Price per
     share  of  Common  Stock.  For example, if the holder is exercising 100,000
     Warrants  with  a  per  Warrant exercise price of $0.75 per share through a
     cashless exercise when the Common Stock's current Market Price per share is
     $2.00  per  share, then upon such Cashless Exercise the holder will receive
     62,500  shares  of  Common  Stock.

          (d)  REMEDIES.  The  Company  acknowledges  that a breach by it of its
     obligations  hereunder  will  cause  irreparable  harm  to  the  holder, by
     vitiating  the  intent  and purpose of the transaction contemplated hereby.
     Accordingly,  the  Company acknowledges that the remedy at law for a breach
     of its obligations under this Warrant will be inadequate and agrees, in the
     event  of a breach or threatened breach by the Company of the provisions of
     this  Warrant,  that the holder shall be entitled, in addition to all other
     available  remedies  at  law or in equity, and in addition to the penalties
     assessable  herein, to an injunction or injunctions restraining, preventing
     or  curing any breach of this Warrant and to enforce specifically the terms
     and  provisions thereof, without the necessity of showing economic loss and
     without  any  bond  or  other  security  being  required.

<PAGE>
     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly  authorized  officer.

                                     TORBAY  HOLDINGS,  INC.

                                      By:  _______________________________
                                      William  Thomas  Large
                                      President  and  Chief  Executive  Officer

Dated  as  of  May  15,  2002

<PAGE>
                           FORM OF EXERCISE AGREEMENT

                                             Dated:  ________  __,  200_

To:     Torbay  Holdings,  Inc.

     The  undersigned,  pursuant  to  the  provisions  set  forth  in the within
Warrant,  hereby  agrees  to purchase ________ shares of Common Stock covered by
such  Warrant,  and  makes  pay-ment  herewith in full therefor at the price per
share provided by such Warrant in cash or by certified or official bank check in
the  amount of, or, if the resale of such Common Stock by the undersigned is not
currently  registered  pursuant to an effective registration statement under the
Securities  Act  of  1933,  as amended, by surrender of securities issued by the
Company  (including a portion of the Warrant) having a market value (in the case
of a portion of this Warrant, determined in accordance with Section 11(c) of the
Warrant)  equal  to $_________.  Please issue a certificate or certifi-cates for
such  shares  of Common Stock in the name of and pay any cash for any fractional
share  to:

                             Name:     ______________________________

                             Signature:
                             Address:____________________________
                                     ____________________________

Note:     The  above  signature  should  correspond exactly with the name on the
face  of  the  within  Warrant,  if  applicable.

and,  if  said  number  of  shares  of  Common Stock shall not be all the shares
purchasable  under the within Warrant, a new Warrant is to be issued in the name
of  said  undersigned  covering the balance of the shares purchasable thereunder
less  any  frac-tion  of  a  share  paid  in  cash.

<PAGE>
                               FORM OF ASSIGNMENT

     FOR  VALUE  RECEIVED,  the undersigned hereby sells, assigns, and transfers
all  the rights of the undersigned under the within Warrant, with respect to the
number  of  shares  of Common Stock covered thereby set forth herein below, to:

Name  of  Assignee               Address                         No  of  Shares
------------------               -------                         --------------

,  and  hereby  irrevocably  constitutes  and  appoints
___________________________________  as  agent and attorney-in-fact to transfer
said  Warrant  on  the books of the within-named corporation, with full power of
substitution  in  the  premises.

Dated:     ________  __,  200_

In  the  presence of:        ______________________________
                        Name:______________________________

                        Signature:_________________________
                        Title  of  Signing  Officer  or  Agent  (if  any):  ____
                                     ______________________________
                        Address:     ______________________________
                                     ______________________________

Note:     The  above  signature  should  correspond exactly with the name on the
face  of  the  within  Warrant,  if  applicable.EXHIBIT 10.8

THE  SECURITIES  REPRESENTED  BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE  SECURITIES  ACT  OF 1933, AS AMENDED (THE "ACT"). THE SECURITIES MAY NOT BE
SOLD,  TRANSFERRED  OR  ASSIGNED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT  FOR  THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144  OR  REGULATION  S  UNDER  SAID  ACT.

                          SECURED CONVERTIBLE DEBENTURE

Hempstead,  New  York
May  15,  2002                                                           $75,000

     FOR  VALUE  RECEIVED,  TORBAY  HOLDINGS,  INC.,  a  Delaware  corporation
(hereinafter  called  the  "BORROWER"),  hereby  promises to pay to the order of
___________________________    or registered assigns (the "HOLDER") the sum of
Seventy-Five  Thousand Dollars ($75,000), on May 15, 2003 (the "MATURITY DATE"),
and to pay interest on the unpaid principal balance hereof at the rate of twelve
percent  (12%)  per  annum  from  May 15, 2002 (the "ISSUE DATE") until the same
becomes  due  and  payable,  whether  at  maturity  or  upon  acceleration or by
prepayment  or otherwise.  Any amount of principal or interest on this Debenture
which  is  not  paid when due shall bear interest at the rate of fifteen percent
(15%)  per  annum  from  the  due  date thereof until the same is paid ("DEFAULT
INTEREST").  Interest  shall  commence  accruing  on  the  issue  date, shall be
computed  on  the  basis of a 365-day year and the actual number of days elapsed
and shall be payable, at the option of the Holder, either quarterly on March 31,
June  30,  September 30 and December 31 of each year beginning on June 30, 2002,
or  at the time of conversion of the principal to which such interest relates in
accordance  with Article I below.  All payments due hereunder (to the extent not
converted  into  common  stock, $.0001 par value per share, of the Borrower (the
"COMMON  STOCK")  in  accordance  with the terms hereof) shall be made in lawful
money  of the United States of America or, at the option of the Holder, in whole
or  in  part,  in  shares  of  Common  Stock  of the Borrower valued at the then
applicable  Conversion  Price (as defined herein). All payments shall be made at
such  address  as  the  Holder  shall  hereafter give to the Borrower by written
notice  made  in accordance with the provisions of this Debenture.  Whenever any
amount  expressed  to  be  due  by the terms of this Debenture is due on any day
which  is  not  a  business  day,  the  same  shall  instead  be due on the next
succeeding  day which is a business day and, in the case of any interest payment
date  which  is  not  the  date  on  which  this  Debenture is paid in full, the
extension
<PAGE>
of  the  due  date  thereof  shall  not  be  taken  into account for purposes of
determining  the amount of interest due on such date. As used in this Debenture,
the  term  "business  day" shall mean any day other than a Saturday, Sunday or a
day  on  which commercial banks in the city of New York, New York are authorized
or  required  by  law or executive order to remain closed. Each capitalized term
used  herein, and not otherwise defined, shall have the meaning ascribed thereto
in  that  certain Securities Purchase Agreement, dated May 15, 2002, pursuant to
which  this  Debenture  was  originally  issued  (the  "PURCHASE  AGREEMENT").

     This  Debenture is free from all taxes, liens, claims and encumbrances with
respect  to  the  issue thereof and shall not be subject to preemptive rights or
other  similar  rights  of  stockholders  of  the  Borrower  and will not impose
personal  liability  upon  the  holder thereof.  The obligations of the Borrower
under  this  Debenture shall be secured by that certain Security Agreement dated
by  and  between  the  Borrower  and  the  Holder  of  even  date  herewith.

     The  following  terms  shall  apply  to  this  Debenture:

                          ARTICLE I.  CONVERSION RIGHTS

     1.1     CONVERSION  RIGHT.  The  Holder  shall  have the right from time to
             -----------------
time,  and  at  any time on or prior to the earlier of (i) the Maturity Date and
(ii)  the  date  of  payment  of  the Default Amount (as defined in Article III)
pursuant  to  Section  1.6(a) or Article III, the Optional Prepayment Amount (as
defined  in Section 5.1 or any payments pursuant to Section 1.7, each in respect
of  the  remaining outstanding principal amount of this Debenture to convert all
or  any  part  of  the outstanding and unpaid principal amount of this Debenture
into  fully paid and non-assessable shares of Common Stock, as such Common Stock
exists  on the Issue Date, or any shares of capital stock or other securities of
the  Borrower  into  which  such  Common  Stock  shall  hereafter  be changed or
reclassified  at  the  conversion  price  (the "CONVERSION PRICE") determined as
provided  herein (a "CONVERSION"); provided, however, that in no event shall the
                                   --------  -------
Holder  be  entitled  to convert any portion of this Debenture in excess of that
portion  of this Debenture upon conversion of which the sum of (1) the number of
shares  of  Common  Stock  beneficially  owned  by the Holder and its affiliates
(other  than  shares  of  Common  Stock  which  may be deemed beneficially owned
through  the  ownership  of  the  unconverted  portion  of the Debentures or the
unexercised  or  unconverted  portion  of  any  other  security  of the Borrower
(including,  without limitation, the warrants issued by the Borrower pursuant to
the  Purchase  Agreement)  subject  to  a  limitation  on conversion or exercise
analogous  to  the limitations contained herein) and (2) the number of shares of
Common  Stock issuable upon the conversion of the portion of this Debenture with
respect  to  which the determination of this proviso is being made, would result
in  beneficial  ownership  by the Holder and its affiliates of more than 4.9% of
the  outstanding  shares  of  Common  Stock.  For purposes of the proviso to the
immediately  preceding  sentence,  beneficial  ownership  shall be determined in
accordance  with  Section  13(d)  of  the  Securities  Exchange  Act of 1934, as
amended,  and  Regulations  13D-G  thereunder,  except  as otherwise provided in
clause  (1)  of  such  proviso.  The  Holder  of  this  Debenture  may waive the
limitations  set  forth  herein  by  sixty-one  (61)  days written notice to the
Company.  The number of shares of Common Stock to be issued upon each conversion
of  this  Debenture  shall  be  determined by dividing the Conversion Amount (as
defined  below)  by  the  applicable Conversion
<PAGE>
Price  then  in effect on the date specified in the notice of conversion, in the
form attached hereto as Exhibit A (the "NOTICE OF CONVERSION"), delivered to the
Borrower  by  the Holder in accordance with Section 1.4 below; provided that the
Notice  of Conversion is submitted by facsimile (or by other means resulting in,
or  reasonably  expected to result in, notice) to the Borrower before 6:00 p.m.,
New  York,  New  York  time on such conversion date (the "CONVERSION DATE"). The
term  "CONVERSION  AMOUNT"  means,  with  respect  to  any  conversion  of  this
Debenture, the sum of (1) the principal amount of this Debenture to be converted
in  such  conversion  plus (2)  accrued and unpaid interest, if any, on such
principal  amount  at  the  interest  rates  provided  in  this Debenture to the
Conversion  Date plus (3) Default  Interest, if any, on the amounts referred
to  in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's
option,  any amounts owed to the  Holder pursuant to Sections 1.3 and 1.4(g)
hereof  or  pursuant  to  Section  2(c)  of  that  certain  Registration  Rights
Agreement,  dated  as  of  May 15, 2002, executed in connection with the initial
issuance  of  this  Debenture  and the other Debentures issued on the Issue Date
(the  "REGISTRATION  RIGHTS  AGREEMENT").

     1.2     CONVERSION  PRICE.
             -----------------

              (a) CALCULATION OF CONVERSION PRICE. The Conversion Price shall
          be  ----------------------------------  the lesser of (i) the Variable
          Conversion  Price  (as  defined  herein) and (ii) the Fixed Conversion
          Price  (as  defined  herein)  (subject,  in  each  case,  to equitable
          adjustments  for  stock splits, stock dividends or rights offerings by
          the  Borrower  relating to the Borrower's securities or the securities
          of  any  subsidiary  of  the Borrower, combinations, recapitalization,
          reclassifications,  extraordinary  distributions  and similar events).
          The  "VARIABLE  CONVERSION PRICE" shall mean the Applicable Percentage
          (as  defined  herein)  multiplied  by  the  Market  Price  (as defined
          herein).  "MARKET  PRICE"  means  the  average of the lowest three (3)
          Trading  Prices  (as  defined  below)  for the Common Stock during the
          twenty  (20)  Trading  Day  period ending one Trading Day prior to the
          date  the  Conversion Notice is sent by the Holder to the Borrower via
          facsimile  (the  "CONVERSION  DATE").  "TRADING  PRICE" means, for any
          security  as  of  any  date,  the  intraday  trading  price  on  the
          Over-the-Counter  Bulletin  Board  (the  "OTCBB")  as  reported  by  a
          reliable  reporting  service  mutually  acceptable  to  and  hereafter
          designated  by Holders of a majority in interest of the Debentures and
          the  Borrower or, if the OTCBB is not the principal trading market for
          such  security,  the  intraday  trading  price of such security on the
          principal securities exchange or trading market where such security is
          listed  or traded or, if no intraday trading price of such security is
          available in any of the foregoing manners, the average of the intraday
          trading  prices of any market makers for such security that are listed
          in  the  "pink  sheets"  by the National Quotation Bureau, Inc. If the
          Trading  Price  cannot be calculated for such security on such date in
          the  manner provided above, the Trading Price shall be the fair market
          value  as  mutually  determined  by  the Borrower and the holders of a
          majority  in  interest of the Debentures being converted for which the
          calculation of the Trading Price is required in order to determine the
          Conversion  Price of such Debentures. "TRADING DAY" shall mean any day
          on which the Common Stock is traded for any period on the OTCBB, or on
          the  principal securities exchange or other securities market on which
          the  Common  Stock is then being traded. "APPLICABLE PERCENTAGE" shall
          mean  50.0%.  The  "FIXED  CONVERSION  PRICE"  shall  mean  $0.05.

               (B)  CONVERSION PRICE DURING MAJOR ANNOUNCEMENTS. Notwithstanding
                    -------------------------------------------
           anything  contained  in  Section  1.2(a)  to the contrary, in the
           event  the  Borrower

          (i)  makes  a  public  announcement  that it intends to consolidate or
          merge  with  any  other  corporation (other than a merger in which the
          Borrower  is  the  surviving or continuing corporation and its capital
          stock  is  unchanged)  or sell or transfer all or substantially all of
          the  assets  of  the  Borrower  or  (ii)  any  person, group or entity
          (including the Borrower) publicly announces a tender offer to purchase
          50%  or  more  of  the  Borrower's Common Stock (or any other takeover
          scheme)  (the  date  of  the announcement referred to in clause (i) or
          (ii)  is hereinafter referred to as the "ANNOUNCEMENT DATE"), then the
          Conversion  Price  shall,  effective  upon  the  Announcement Date and
          continuing  through the Adjusted Conversion Price Termination Date (as
          defined  below),  be  equal  to  the lower of (x) the Conversion Price
          which  would  have  been  applicable for a Conversion occurring on the
          Announcement Date and (y) the Conversion Price that would otherwise be
          in  effect.  From  and after the Adjusted Conversion Price Termination
          Date,  the  Conversion  Price shall be determined as set forth in this
          Section  1.2(a).  For  purposes  hereof,  "ADJUSTED  CONVERSION  PRICE
          TERMINATION DATE" shall mean, with respect to any proposed transaction
          or  tender  offer (or takeover scheme) for which a public announcement
          as  contemplated  by  this Section 1.2(b) has been made, the date upon
          which  the  Borrower  (in the case of clause (i) above) or the person,
          group  or  entity  (in  the  case of clause (ii) above) consummates or
          publicly  announces  the  termination  or  abandonment of the proposed
          transaction  or  tender  offer  (or takeover scheme) which caused this
          Section  1.2(b)  to  become  operative.

     1.3     AUTHORIZED  SHARES.  The  Borrower covenants that during the period
             ------------------
the  conversion  right exists, the Borrower will reserve from its authorized and
unissued  Common  Stock  a  sufficient  number  of  shares, free from preemptive
rights,  to provide for the issuance of Common Stock upon the full conversion of
this  Debenture  and  the  other  Debentures  issued  pursuant  to  the Purchase
Agreement.  The  Borrower  is  required  at  all  times  to  have authorized and
reserved  two  times  the  number  of shares that is actually issuable upon full
conversion of the Debentures (based on the Conversion Price of the Debentures or
the  Exercise  Price of the Warrants in effect from time to time) (the "RESERVED
AMOUNT").  The  Reserved  Amount  shall  be  increased  from  time  to  time  in
accordance  with  the  Borrower's  obligations  pursuant  to Section 4(h) of the
Purchase  Agreement.  The  Borrower  represents  that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable.  In addition, if
the  Borrower  shall  issue  any  securities  or  make any change to its capital
structure which would change the number of shares of Common Stock into which the
Debentures  shall  be  convertible  at  the  then  current Conversion Price, the
Borrower  shall  at the same time make proper provision so that thereafter there
shall  be a sufficient number of shares of Common Stock authorized and reserved,
free  from preemptive rights, for conversion of the outstanding Debentures.  The
Borrower  (i) acknowledges that it has irrevocably instructed its transfer agent
to  issue  certificates  for  the  Common Stock issuable upon conversion of this
Debenture,  and (ii) agrees that its issuance of this Debenture shall constitute
full  authority  to  its  officers  and  agents who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for
shares  of  Common  Stock  in  accordance  with the terms and conditions of this
Debenture.

     If,  at any time a Holder of this Debenture submits a Notice of Conversion,
and  the  Borrower  does  not  have sufficient authorized but unissued shares of
Common  Stock  available  to  effect  such  conversion  in  accordance  with the
provisions  of  this Article I (a "CONVERSION DEFAULT"), subject to Section 4.8,
the  Borrower  shall issue to the Holder all of the shares of
<PAGE>
Common  Stock which are then available to effect such conversion. The portion of
this  Debenture  which  the  Holder  included in its Conversion Notice and which
exceeds  the  amount  which  is then convertible into available shares of Common
Stock  (the  "EXCESS  AMOUNT")  shall,  notwithstanding anything to the contrary
contained  herein,  not  be convertible into Common Stock in accordance with the
terms  hereof  until  (and  at  the  Holder's option at any time after) the date
additional  shares of Common Stock are authorized by the Borrower to permit such
conversion,  at  which time the Conversion Price in respect thereof shall be the
lesser  of  (i)  the Conversion Price on the Conversion Default Date (as defined
below)  and  (ii) the Conversion Price on the Conversion Date thereafter elected
by  the  Holder  in  respect thereof. In addition, the Borrower shall pay to the
Holder  payments ("CONVERSION DEFAULT PAYMENTS") for a Conversion Default in the
amount  of  (x)  the  sum  of  (1) the then outstanding principal amount of this
Debenture  plus  (2)   accrued  and  unpaid  interest on the unpaid
principal  amount  of  this Debenture through the Authorization Date (as defined
below)  plus  (3)  Default  Interest, if  any, on the amounts referred to in
clauses  (1)  and/or (2), multiplied by (y)  .24, multiplied by (z)
(N/365),  where  N  =  the number of days from the day the  holder
submits  a  Notice  of  Conversion  giving  rise  to  a  Conversion Default (the
"CONVERSION  DEFAULT  DATE")  to  the  date  (the "AUTHORIZATION DATE") that the
Borrower  authorizes  a  sufficient  number  of shares of Common Stock to effect
conversion  of  the  full  outstanding  principal balance of this Debenture. The
Borrower  shall  use its best efforts to authorize a sufficient number of shares
of  Common  Stock  as soon as practicable following the earlier of (i) such time
that  the  Holder  notifies  the Borrower or that the Borrower otherwise becomes
aware  that  there  are  or  likely will be insufficient authorized and unissued
shares  to  allow  full  conversion  thereof  and (ii) a Conversion Default. The
Borrower  shall  send  notice  to  the Holder of the authorization of additional
shares  of  Common  Stock,  the  Authorization  Date  and the amount of Holder's
accrued Conversion Default Payments. The accrued Conversion Default Payments for
each  calendar  month  shall be paid in cash or shall be convertible into Common
Stock  (at  such time as there are sufficient authorized shares of Common Stock)
at  the  applicable  Conversion  Price,  at  the  Holder's  option,  as follows:

               (a) In the event Holder elects to take such payment in cash, cash
          payment  shall  be  made to Holder by the fifth (5th) day of the month
          following  the  month  in  which  it  has  accrued;  and

               (b)  In  the  event  Holder elects to take such payment in Common
          Stock, the Holder may convert such payment amount into Common Stock at
          the  Conversion  Price (as in effect at the time of conversion) at any
          time  after the fifth day of the month following the month in which it
          has accrued in accordance with the terms of this Article I (so long as
          there  is  then  a  sufficient  number  of authorized shares of Common
          Stock).

     The  Holder's election shall be made in writing to the Borrower at any time
prior  to  6:00  p.m.,  New  York,  New York time, on the third day of the month
following  the  month  in which Conversion Default payments have accrued.  If no
election  is  made,  the Holder shall be deemed to have elected to receive cash.
Nothing  herein  shall limit the Holder's right to pursue actual damages (to the
extent  in excess of the Conversion Default Payments) for the Borrower's failure
to  maintain  a sufficient number of authorized shares of Common Stock, and each
holder shall have the right to pursue all remedies available at law or in equity
(including  degree  of  specific  performance  and/or  injunctive  relief).

<PAGE>

     1.4     METHOD  OF  CONVERSION.
             ----------------------

               (a)  MECHANICS  OF  CONVERSION.  Subject  to  Section  1.1,  this
          Debenture  -----------------------  may  be converted by the Holder in
          whole  or  in part at any time from time to time after the Issue Date,
          by (A) submitting to the Borrower a Notice of Conversion (by facsimile
          or  other  reasonable  means  of  communication  dispatched  on  the
          Conversion  Date  prior to 6:00 p.m., New York, New York time) and (B)
          subject  to  Section  1.4(b),  surrendering  this  Debenture  at  the
          principal  office  of  the  Borrower.

               (b)  SURRENDER  OF  DEBENTURE  UPON  CONVERSION.  Notwithstanding
          anything  to  the  contrary  set forth herein, upon conversion of this
          Debenture in accordance with the terms hereof, the Holder shall not be
          required to physically surrender this Debenture to the Borrower unless
          the  entire unpaid principal amount of this Debenture is so converted.
          The  Holder  and  the  Borrower  shall  maintain  records  showing the
          principal  amount  so  converted  and the dates of such conversions or
          shall use such other method, reasonably satisfactory to the Holder and
          the  Borrower,  so  as  not  to  require  physical  surrender  of this
          Debenture  upon  each  such conversion. In the event of any dispute or
          discrepancy,  such  records  of  the Borrower shall be controlling and
          determinative  in  the  absence of manifest error. Notwithstanding the
          foregoing, if any portion of this Debenture is converted as aforesaid,
          the  Holder  may  not  transfer this Debenture unless the Holder first
          physically  surrenders  this  Debenture to the Borrower, whereupon the
          Borrower will forthwith issue and deliver upon the order of the Holder
          a  new Debenture of like tenor, registered as the Holder (upon payment
          by  the  Holder  of  any  applicable  transfer  taxes)  may  request,
          representing in the aggregate the remaining unpaid principal amount of
          this  Debenture.  The  Holder  and any assignee, by acceptance of this
          Debenture,  acknowledge and agree that, by reason of the provisions of
          this  paragraph,  following conversion of a portion of this Debenture,
          the  unpaid  and  unconverted  principal  amount  of  this  Debenture
          represented  by  this  Debenture may be less than the amount stated on
          the  face  hereof.

               (c)  PAYMENT  OF TAXES. The Borrower shall not be required to pay
          any  tax  which  may be payable in respect of any transfer involved in
          the  issue  and delivery of shares of Common Stock or other securities
          or  property on conversion of this Debenture in a name other than that
          of  the  Holder  (or  in  street  name), and the Borrower shall not be
          required  to  issue  or deliver any such shares or other securities or
          property unless and until the person or persons (other than the Holder
          or  the  custodian in whose street name such shares are to be held for
          the  Holder's account) requesting the issuance thereof shall have paid
          to  the  Borrower the amount of any such tax or shall have established
          to  the  satisfaction  of  the  Borrower  that such tax has been paid.

               (d) DELIVERY OF COMMON STOCK UPON CONVERSION. Upon receipt by the
          Borrower  from  the  Holder  of  a  facsimile  transmission  (or other
          reasonable  means  of communication) of a Notice of Conversion meeting
          the  requirements  for conversion as provided in this Section 1.4, the
          Borrower  shall  issue and deliver or cause to be issued and delivered
          to  or  upon the order of the Holder certificates for the Common Stock
          issuable  upon such conversion within two (2) business days after such
          receipt  (and,  solely  in the case of conversion of the entire unpaid
          principal  amount  hereof,  surrender  of this Debenture) (such second
          business  day  being
<PAGE>
          hereinafter  referred  to  as  the  "DEADLINE") in accordance with the
          terms  hereof  and  the  Purchase  Agreement  (including,  without
          limitation, in accordance with the requirements of Section 2(g) of the
          Purchase Agreement that certificates for shares of Common Stock issued
          on  or  after  the  effective  date of the Registration Statement upon
          conversion  of  this Debenture shall not bear any restrictive legend).

               (e)  OBLIGATION OF BORROWER TO DELIVER COMMON STOCK. Upon receipt
          by  the Borrower of a Notice of Conversion, the Holder shall be deemed
          to  be  the  holder  of  record of the Common Stock issuable upon such
          conversion, the outstanding principal amount and the amount of accrued
          and unpaid interest on this Debenture shall be reduced to reflect such
          conversion, and, unless the Borrower defaults on its obligations under
          this  Article  I,  all  rights  with  respect  to  the portion of this
          Debenture  being  so  converted  shall  forthwith terminate except the
          right  to  receive the Common Stock or other securities, cash or other
          assets,  as  herein  provided, on such conversion. If the Holder shall
          have  given  a Notice of Conversion as provided herein, the Borrower's
          obligation  to  issue  and  deliver  the certificates for Common Stock
          shall  be  absolute  and unconditional, irrespective of the absence of
          any  action  by  the Holder to enforce the same, any waiver or consent
          with  respect  to  any provision thereof, the recovery of any judgment
          against  any  person or any action to enforce the same, any failure or
          delay  in  the  enforcement of any other obligation of the Borrower to
          the  holder  of  record,  or  any  setoff,  counterclaim,  recoupment,
          limitation  or  termination,  or  any  breach or alleged breach by the
          Holder  of  any  obligation  to  the Borrower, and irrespective of any
          other  circumstance which might otherwise limit such obligation of the
          Borrower  to  the  Holder  in  connection  with  such  conversion. The
          Conversion  Date  specified  in  the Notice of Conversion shall be the
          Conversion Date so long as the Notice of Conversion is received by the
          Borrower  before  6:00  p.m.,  New  York, New York time, on such date.
               (f)  DELIVERY  OF COMMON STOCK BY ELECTRONIC TRANSFER. In lieu of
          delivering  physical  certificates  representing  the  Common  Stock
          issuable  upon  conversion,  provided the Borrower's transfer agent is
          participating  in  the Depository Trust Company ("DTC") Fast Automated
          Securities  Transfer  ("FAST") program, upon request of the Holder and
          its  compliance  with  the  provisions contained in Section 1.1 and in
          this Section 1.4, the Borrower shall use its best efforts to cause its
          transfer  agent  to  electronically transmit the Common Stock issuable
          upon  conversion  to  the  Holder by crediting the account of Holder's
          Prime  Broker with DTC through its Deposit Withdrawal Agent Commission
          ("DWAC")  system.

               (g) FAILURE TO DELIVER COMMON STOCK PRIOR TO DEADLINE. Without in
          any  way  limiting  the  Holder's  right  to  pursue  other  remedies,
          including  actual  damages  and/or equitable relief, the parties agree
          that  if delivery of the Common Stock issuable upon conversion of this
          Debenture  is  more than two (2) days after the Deadline (other than a
          failure due to the circumstances described in Section 1.3 above, which
          failure  shall  be governed by such Section) the Borrower shall pay to
          the  Holder  $2,000  per day in cash, for each day beyond the Deadline
          that the Borrower fails to deliver such Common Stock. Such cash amount
          shall  be  paid  to Holder by the fifth day of the month following the
          month  in  which  it  has  accrued or, at the option of the Holder (by
          written notice to the Borrower by the first day of the month following
          the  month  in  which it has accrued), shall be added to the principal
          amount of this Debenture, in which event interest shall accrue thereon
          in  accordance  with  the  terms  of  this  Debenture  and
<PAGE>
          such  additional  principal  amount  shall  be convertible into Common
          Stock  in  accordance  with  the  terms  of  this  Debenture.

     1.5     CONCERNING  THE  SHARES.  The  shares of Common Stock issuable upon
             -----------------------
conversion  of  this  Debenture  may not be sold or transferred unless  (i) such
shares are sold pursuant to an effective registration statement under the Act or
(ii)  the  Borrower  or  its  transfer  agent  shall have been furnished with an
opinion  of  counsel  (which  opinion  shall  be  in  form,  substance and scope
customary for opinions of counsel in comparable transactions) to the effect that
the  shares  to be sold or transferred may be sold or transferred pursuant to an
exemption  from  such  registration or (iii) such shares are sold or transferred
pursuant  to  Rule  144 under the Act (or a successor rule) ("RULE 144") or (iv)
such  shares  are  transferred to an "affiliate" (as defined in Rule 144) of the
Borrower  who agrees to sell or otherwise transfer the shares only in accordance
with  this  Section  1.5  and  who  is an Accredited Investor (as defined in the
Purchase  Agreement).  Except  as  otherwise  provided in the Purchase Agreement
(and  subject to the removal provisions set forth below), until such time as the
shares  of  Common  Stock  issuable  upon conversion of this Debenture have been
registered under the Act as contemplated by the Registration Rights Agreement or
otherwise  may  be  sold  pursuant to Rule 144 without any restriction as to the
number  of securities as of a particular date that can then be immediately sold,
each  certificate  for  shares  of Common Stock issuable upon conversion of this
Debenture  that  has not been so included in an effective registration statement
or  that has not been sold pursuant to an effective registration statement or an
exemption  that permits removal of the legend, shall bear a legend substantially
in  the  following  form,  as  appropriate:

          "THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT  BEEN
          REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED.  THE
          SECURITIES  MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
          AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT,
          OR  AN  OPINION  OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR
          OPINIONS  OF  COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS
          NOT  REQUIRED  UNDER  SAID  ACT  UNLESS  SOLD  PURSUANT TO RULE 144 OR
          REGULATION  S  UNDER  SAID  ACT."

     The legend set forth above shall be removed and the Borrower shall issue to
the  Holder  a  new  certificate therefor free of any transfer legend if (i) the
Borrower  or  its  transfer  agent shall have received an opinion of counsel, in
form,  substance  and  scope  customary  for  opinions  of counsel in comparable
transactions,  to the effect that a public sale or transfer of such Common Stock
may  be  made  without  registration under the Act and the shares are so sold or
transferred,  (ii)  such Holder provides the Borrower or its transfer agent with
reasonable  assurances  that  the  Common Stock issuable upon conversion of this
Debenture (to the extent such securities are deemed to have been acquired on the
same  date)  can be sold pursuant to Rule 144 or (iii) in the case of the Common
Stock  issuable  upon  conversion of this Debenture, such security is registered
for sale by the Holder under an effective registration statement filed under the
Act  or otherwise may be sold pursuant to Rule 144 without any restriction as to
the  number  of  securities as of a particular date that can then be immediately
sold.  Nothing in this Debenture shall (i) limit the Borrower's obligation under
the  Registration  Rights  Agreement  or  (ii)  affect  in
<PAGE>
any  way  the Holder's obligations to comply with applicable prospectus delivery
requirements  upon  the  resale  of  the  securities  referred  to  herein.

     1.6     EFFECT  OF  CERTAIN  EVENTS.
             ---------------------------

               (a)  EFFECT  OF  MERGER, CONSOLIDATION, ETC. At the option of the
          Holder,  the  sale,  conveyance or disposition of all or substantially
          all of the assets of the Borrower, the effectuation by the Borrower of
          a transaction or series of related transactions in which more than 50%
          of  the  voting  power  of  the  Borrower  is  disposed  of,  or  the
          consolidation,  merger  or  other business combination of the Borrower
          with  or  into any other Person (as defined below) or Persons when the
          Borrower  is  not  the  survivor  shall either: (i) be deemed to be an
          Event  of  Default  (as  defined in Article III) pursuant to which the
          Borrower  shall be required to pay to the Holder upon the consummation
          of  and  as  a  condition  to  such transaction an amount equal to the
          Default Amount (as defined in Article III) or (ii) be treated pursuant
          to  Section  1.6(b)  hereof.  "PERSON"  shall  mean  any  individual,
          corporation,  limited  liability  company,  partnership,  association,
          trust  or  other  entity  or  organization.

               (b) ADJUSTMENT DUE TO MERGER, CONSOLIDATION, ETC. If, at any time
          when this Debenture is issued and outstanding and prior to conversion
          of  all  of  the Debentures, there shall be any merger, consolidation,
          exchange of shares, recapitalization, reorganization, or other similar
          event,  as  a  result  of which shares of Common Stock of the Borrower
          shall  be  changed  into  the  same or a different number of shares of
          another  class  or  classes  of stock or securities of the Borrower or
          another  entity,  or  in  case  of  any  sale  or conveyance of all or
          substantially  all  of  the  assets  of  the  Borrower  other  than in
          connection  with  a plan of complete liquidation of the Borrower, then
          the  Holder  of  this  Debenture  shall  thereafter  have the right to
          receive upon conversion of this Debenture, upon the basis and upon the
          terms  and  conditions  specified  herein and in lieu of the shares of
          Common  Stock  immediately  theretofore issuable upon conversion, such
          stock,  securities or assets which the Holder would have been entitled
          to  receive  in  such transaction had this Debenture been converted in
          full  immediately  prior  to  such  transaction (without regard to any
          limitations  on  conversion  set  forth  herein), and in any such case
          appropriate  provisions  shall  be made with respect to the rights and
          interests  of  the  Holder  of  this  Debenture  to  the  end that the
          provisions  hereof  (including,  without  limitation,  provisions  for
          adjustment  of  the  Conversion  Price  and  of  the  number of shares
          issuable  upon  conversion  of  the  Debenture)  shall  thereafter  be
          applicable,  as  nearly  as  may  be  practicable  in  relation to any
          securities  or  assets  thereafter  deliverable  upon  the  conversion
          hereof.  The  Borrower  shall  not effect any transaction described in
          this  Section  1.6(b)  unless  (a)  it  first  gives,  to  the  extent
          practicable,  thirty  (30) days prior written notice (but in any event
          at least fifteen (15) days prior written notice) of the record date of
          the special meeting of stockholders to approve, or if there is no such
          record date, the consummation of, such merger, consolidation, exchange
          of  shares, recapitalization, reorganization or other similar event or
          sale  of  assets  (during  which  time the Holder shall be entitled to
          convert  this  Debenture) and (b) the resulting successor or acquiring
          entity  (if  not  the  Borrower)  assumes  by  written  instrument the
          obligations  of  this  Section  1.6(b).  The  above  provisions  shall
          similarly  apply  to  successive  consolidations,  mergers,  sales,
          transfers  or  share  exchanges.
<PAGE>
               (c) ADJUSTMENT DUE TO DISTRIBUTION. If the Borrower shall declare
          or  make  any  distribution  of  its  assets (or rights to acquire its
          assets) to holders of Common Stock as a dividend, stock repurchase, by
          way  of  return  of  capital  or  otherwise (including any dividend or
          distribution  to  the  Borrower's  stockholders  in cash or shares (or
          rights  to  acquire  shares) of capital stock of a subsidiary (i.e., a
          spin-off)) (a "DISTRIBUTION"), then the Holder of this Debenture shall
          be  entitled,  upon any conversion of this Debenture after the date of
          record  for determining stockholders entitled to such Distribution, to
          receive the amount of such assets which would have been payable to the
          Holder  with  respect to the shares of Common Stock issuable upon such
          conversion  had  such  Holder been the holder of such shares of Common
          Stock  on  the  record  date  for  the  determination  of stockholders
          entitled  to  such  Distribution.

               (d) ADJUSTMENT DUE TO DILUTIVE ISSUANCE. If, at any time when any
          Debentures  are  issued and outstanding, the Borrower issues or sells,
          or  in  accordance  with  this Section 1.6(d) hereof is deemed to have
          issued or sold, any shares of Common Stock for no consideration or for
          a  consideration per share (before deduction of reasonable expenses or
          commissions  or  underwriting  discounts  or  allowances in connection
          therewith)  less than the Fixed Conversion Price in effect on the date
          of  such  issuance (or deemed issuance) of such shares of Common Stock
          (a  "DILUTIVE ISSUANCE"), then immediately upon the Dilutive Issuance,
          the  Fixed  Conversion  Price  will  be  reduced  to the amount of the
          consideration  per  share  received  by  the Borrower in such Dilutive
          Issuance;  provided  that  only  one  adjustment will be made for each
          Dilutive  Issuance.

     The  Borrower shall be deemed to have issued or sold shares of Common Stock
if  the Borrower in any manner issues or grants any warrants, rights or options,
whether  or  not immediately exercisable, to subscribe for or to purchase Common
Stock  or  other  securities  convertible  into or exchangeable for Common Stock
("CONVERTIBLE SECURITIES") (such warrants, rights and options to purchase Common
Stock  or  Convertible  Securities are hereinafter referred to as "OPTIONS") and
the price per share for which Common Stock is issuable upon the exercise of such
Options  is  less than the Fixed Conversion Price then in effect, then the Fixed
Conversion  Price  shall  be equal to such price per share.  For purposes of the
preceding sentence, the "price per share for which Common Stock is issuable upon
the exercise of such Options" is determined by dividing (i) the total amount, if
any, received or receivable by the Borrower as consideration for the issuance or
granting  of  all  such Options, plus the minimum aggregate amount of additional
consideration,  if  any,  payable  to the Borrower upon the exercise of all such
Options,  plus, in the case of Convertible Securities issuable upon the exercise
of  such  Options,  the  minimum  aggregate  amount  of additional consideration
payable  upon  the  conversion  or exchange thereof at the time such Convertible
Securities  first  become convertible or exchangeable, by (ii) the maximum total
number  of shares of Common Stock issuable upon the exercise of all such Options
(assuming full conversion of Convertible Securities, if applicable).  No further
adjustment to the Conversion Price will be made upon the actual issuance of such
Common  Stock  upon  the  exercise  of  such  Options  or upon the conversion or
exchange  of  Convertible  Securities  issuable  upon  exercise of such Options.

     Additionally, the Borrower shall be deemed to have issued or sold shares of
Common  Stock  if  the  Borrower  in  any manner issues or sells any Convertible
Securities,  whether  or  not immediately convertible (other than where the same
are  issuable  upon  the
<PAGE>
exercise of Options), and the price per share for which Common Stock is issuable
upon such conversion or exchange is less than the Fixed Conversion Price then in
effect,  then the Fixed Conversion Price shall be equal to such price per share.
For  the  purposes  of  the  preceding  sentence, the "price per share for which
Common  Stock  is  issuable  upon  such conversion or exchange" is determined by
dividing (i) the total amount, if any, received or receivable by the Borrower as
consideration  for the issuance or sale of all such Convertible Securities, plus
the minimum aggregate amount of additional consideration, if any, payable to the
Borrower  upon  the  conversion or exchange thereof at the time such Convertible
Securities  first  become convertible or exchangeable, by (ii) the maximum total
number of shares of Common Stock issuable upon the conversion or exchange of all
such Convertible Securities. No further adjustment to the Fixed Conversion Price
will  be  made  upon the actual issuance of such Common Stock upon conversion or
exchange  of  such  Convertible  Securities.

               (e)  PURCHASE  RIGHTS.  If,  at  any time when any Debentures are
          issued and outstanding, the Borrower issues any convertible securities
          or  rights  to  purchase stock, warrants, securities or other property
          (the "PURCHASE RIGHTS") pro rata to the record holders of any class of
          Common  Stock,  then  the Holder of this Debenture will be entitled to
          acquire,  upon  the  terms  applicable  to  such  Purchase Rights, the
          aggregate  Purchase  Rights  which  such Holder could have acquired if
          such  Holder  had held the number of shares of Common Stock acquirable
          upon  complete  conversion  of  this  Debenture (without regard to any
          limitations  on  conversion  contained  herein) immediately before the
          date  on  which  a  record is taken for the grant, issuance or sale of
          such  Purchase  Rights  or, if no such record is taken, the date as of
          which  the record holders of Common Stock are to be determined for the
          grant,  issue  or  sale  of  such  Purchase  Rights.

               (f) NOTICE OF ADJUSTMENTS. Upon the occurrence of each adjustment
          or  readjustment  of  the  Conversion  Price as a result of the events
          described  in  this  Section  1.6, the Borrower, at its expense, shall
          promptly  compute  such  adjustment  or  readjustment  and prepare and
          furnish  to  the Holder of a certificate setting forth such adjustment
          or  readjustment  and  showing  in  detail  the  facts upon which such
          adjustment  or  readjustment  is  based.  The Borrower shall, upon the
          written  request  at  any time of the Holder, furnish to such Holder a
          like  certificate  setting  forth (i) such adjustment or readjustment,
          (ii)  the  Conversion Price at the time in effect and (iii) the number
          of  shares of Common Stock and the amount, if any, of other securities
          or property which at the time would be received upon conversion of the
          Debenture.

     1.7     TRADING  MARKET  LIMITATIONS.  Unless  permitted  by the applicable
             ----------------------------
rules  and  regulations  of  the principal securities market on which the Common
Stock  is  then  listed  or  traded,  in  no event shall the Borrower issue upon
conversion  of  or otherwise pursuant to this Debenture and the other Debentures
issued pursuant to the Purchase Agreement more than the maximum number of shares
of  Common  Stock  that  the  Borrower  can  issue  pursuant  to any rule of the
principal  United  States  securities  market  on which the Common Stock is then
traded  (the  "MAXIMUM  SHARE  AMOUNT"),  which,  as  of the Issue Date shall be
3,683,103  shares  (19.99%  of  the total shares outstanding on the Issue Date),
subject  to  equitable  adjustment  from  time  to  time for stock splits, stock
dividends,  combinations, capital reorganizations and similar events relating to
the Common Stock occurring after the date hereof.  Once the Maximum Share Amount
has
<PAGE>
been  issued  (the  date  of  which  is  hereinafter referred to as the "MAXIMUM
CONVERSION  DATE"),  if  the  Borrower fails to eliminate any prohibitions under
applicable  law  or  the rules or regulations of any stock exchange, interdealer
quotation  system  or  other self-regulatory organization with jurisdiction over
the  Borrower or any of its securities on the Borrower's ability to issue shares
of  Common  Stock  in  excess  of  the  Maximum  Share Amount (a "TRADING MARKET
PREPAYMENT  EVENT"), in lieu of any further right to convert this Debenture, and
in  full  satisfaction  of  the Borrower's obligations under this Debenture, the
Borrower  shall  pay  to  the  Holder,  within fifteen (15) business days of the
Maximum  Conversion Date (the "TRADING MARKET PREPAYMENT DATE"), an amount equal
to 130% times the sum of (a) the then outstanding principal amount of this
Debenture  immediately  following  the  Maximum  Conversion  Date, plus (b)
accrued and  unpaid  interest  on  the  unpaid  principal  amount of this
Debenture  to  the Trading Market Prepayment Date, plus (c) Default Interest, if
any,  on  the  amounts referred to in clause (a) and/or (b) above, plus (d)
any  optional amounts that may be added thereto at the Maximum Conversion
Date  by  the  Holder  in accordance with the terms hereof (the then outstanding
principal  amount of this Debenture immediately following the Maximum Conversion
Date,  plus the amounts referred to in clauses (b), (c) and (d) above shall
collectively be referred to as the "REMAINING CONVERTIBLE AMOUNT"). With respect
to  each  Holder  of  Debentures,  the  Maximum Share Amount shall refer to such
Holder's  pro  rata  share thereof determined in accordance with Section
4.8  below.  In  the event that the sum of (x) the aggregate number of shares of
Common  Stock  issued upon conversion of this Debenture and the other Debentures
issued  pursuant  to  the  Purchase  Agreement  plus (y) the aggregate number of
shares  of  Common  Stock  that  remain  issuable  upon conversion of this
Debenture  and  the  other Debentures issued pursuant to the Purchase Agreement,
represents  at least one hundred percent (100%) of the Maximum Share Amount (the
"TRIGGERING  EVENT"),  the Borrower will use its best efforts to seek and obtain
Stockholder  Approval  (or  obtain  such  other relief as will allow conversions
hereunder  in  excess  of  the  Maximum  Share  Amount)  as  soon as practicable
following  the  Triggering Event and before the Maximum Conversion Date. As used
herein,  "STOCKHOLDER  APPROVAL"  means  approval  by  the  stockholders  of the
Borrower  to authorize the issuance of the full number of shares of Common Stock
which  would be issuable upon full conversion of the then outstanding Debentures
but  for  the  Maximum  Share  Amount.

     1.8     STATUS  AS  STOCKHOLDER.  Upon submission of a Notice of Conversion
             -----------------------
by  a  Holder,  (i)  the  shares covered thereby (other than the shares, if any,
which  cannot  be  issued  because  their  issuance  would  exceed such Holder's
allocated  portion  of  the  Reserved  Amount  or Maximum Share Amount) shall be
deemed  converted  into shares of Common Stock and (ii) the Holder's rights as a
Holder  of  such  converted portion of this Debenture shall cease and terminate,
excepting only the right to receive certificates for such shares of Common Stock
and  to  any remedies provided herein or otherwise available at law or in equity
to such Holder because of a failure by the Borrower to comply with the terms  of
this  Debenture.  Notwithstanding  the  foregoing,  if a Holder has not received
certificates  for  all shares of Common Stock prior to the tenth (10th) business
day  after  the  expiration  of the Deadline with respect to a conversion of any
portion  of  this  Debenture  for  any reason, then (unless the Holder otherwise
elects  to  retain  its  status  as a holder of Common Stock by so notifying the
Borrower)  the Holder shall regain the rights of a Holder of this Debenture with
respect  to  such unconverted portions of this Debenture and the Borrower shall,
as  soon  as practicable, return such unconverted Debenture to the Holder or, if
the  Debenture has not been surrendered, adjust its records to
<PAGE>
reflect  that  such  portion  of  this  Debenture has not been converted. In all
cases,  the  Holder  shall  retain  all  of  its rights and remedies (including,
without  limitation,  (i)  the  right  to  receive  Conversion  Default Payments
pursuant  to  Section  1.3  to  the  extent required thereby for such Conversion
Default  and  any  subsequent  Conversion Default and (ii) the right to have the
Conversion Price with respect to subsequent conversions determined in accordance
with  Section  1.3)  for  the  Borrower's  failure  to  convert  this Debenture.

                         ARTICLE II.  CERTAIN COVENANTS

     2.1     DISTRIBUTIONS ON CAPITAL STOCK.  So long as the Borrower shall have
             ------------------------------
any obligation under this Debenture, the Borrower shall not without the Holder's
written  consent (a) pay, declare or set apart for such payment, any dividend or
other  distribution (whether in cash, property or other securities) on shares of
capital  stock other than dividends on shares of Common Stock solely in the form
of  additional  shares  of Common Stock or (b) directly or indirectly or through
any  subsidiary make any other payment or distribution in respect of its capital
stock  except  for distributions pursuant to any shareholders' rights plan which
is  approved  by  a  majority  of  the  Borrower's  disinterested  directors.

     2.2     RESTRICTION  ON  STOCK  REPURCHASES.  So long as the Borrower shall
             -----------------------------------
have  any  obligation  under  this Debenture, the Borrower shall not without the
Holder's  written  consent  redeem, repurchase or otherwise acquire (whether for
cash  or  in  exchange for property or other securities or otherwise) in any one
transaction or series of related transactions any shares of capital stock of the
Borrower  or  any  warrants,  rights  or options to purchase or acquire any such
shares.

     2.3     BORROWINGS.  So  long  as  the  Borrower  shall have any obligation
             ----------
under  this  Debenture,  the  Borrower  shall  not, without the Holder's written
consent,  create,  incur,  assume  or suffer to exist any liability for borrowed
money, except (a) borrowings in existence or committed on the date hereof and of
which  the Borrower has informed Holder in writing prior to the date hereof, (b)
indebtedness  to  trade  creditors  or  financial  institutions  incurred in the
ordinary  course  of  business or (c) borrowings, the proceeds of which shall be
used  to  repay  this  Debenture.

     2.4     SALE  OF ASSETS.  So long as the Borrower shall have any obligation
             ---------------
under  this  Debenture,  the  Borrower  shall  not, without the Holder's written
consent,  sell,  lease  or  otherwise  dispose of any significant portion of its
assets  outside the ordinary course of business.  Any consent to the disposition
of  any  assets  may  be  conditioned  on  a  specified  use  of the proceeds of
disposition.

     2.5     ADVANCES  AND  LOANS.  So  long  as  the  Borrower  shall  have any
             --------------------
obligation  under  this  Debenture, the Borrower shall not, without the Holder's
written  consent,  lend money, give credit or make advances to any person, firm,
joint  venture  or  corporation,  including,  without  limitation,  officers,
directors, employees, subsidiaries and affiliates of the Borrower, except loans,
credits  or  advances (a) in existence or committed on the date hereof and which
the  Borrower  has informed Holder in writing prior to the date hereof, (b) made
in  the  ordinary  course  of  business  or  (c)  not  in  excess  of  $50,000.
<PAGE>
     2.6     CONTINGENT  LIABILITIES.  So  long  as  the Borrower shall have any
             -----------------------
obligation  under  this  Debenture, the Borrower shall not, without the Holder's
written  consent,  assume, guarantee, endorse, contingently agree to purchase or
otherwise  become  liable  upon the obligation of any person, firm, partnership,
joint  venture  or  corporation,  except  by  the  endorsement  of  negotiable
instruments  for  deposit  or  collection  and  except  assumptions, guarantees,
endorsements  and contingencies (a) in existence or committed on the date hereof
and  which the Borrower has informed Holder in writing prior to the date hereof,
and  (b)  similar  transactions  in  the  ordinary  course  of  business.

                         ARTICLE III.  EVENTS OF DEFAULT

     If  any  of  the  following events of default (each, an "EVENT OF DEFAULT")
shall  occur:

     3.1     FAILURE  TO  PAY  PRINCIPAL OR INTEREST.  The Borrower fails to pay
             ---------------------------------------
the  principal hereof or interest thereon when due on this Debenture, whether at
maturity,  upon  a Trading Market Prepayment Event pursuant to Section 1.7, upon
acceleration  or  otherwise.

     3.2     CONVERSION  AND  THE SHARES.  The Borrower fails to issue shares of
             ---------------------------
Common Stock to the Holder (or announces or threatens that it will not honor its
obligation to do so) upon exercise by the Holder of the conversion rights of the
Holder  in accordance with the terms of this Debenture (for a period of at least
sixty  (60)  days,  if  such  failure is solely as a result of the circumstances
governed  by Section 1.3 and the Borrower is using its best efforts to authorize
a  sufficient number of shares of Common Stock as soon as practicable), fails to
transfer  or  cause  its  transfer  agent  to  transfer  (electronically  or  in
certificated  form)  any  certificate  for  shares of Common Stock issued to the
Holder  upon  conversion  of or otherwise pursuant to this Debenture as and when
required  by  this  Debenture  or the Registration Rights Agreement, or fails to
remove  any restrictive legend (or to withdraw any stop transfer instructions in
respect thereof) on any certificate for any shares of Common Stock issued to the
Holder  upon  conversion  of or otherwise pursuant to this Debenture as and when
required  by  this  Debenture or the Registration Rights Agreement (or makes any
announcement,  statement  or  threat  that  it  does  not  intend  to  honor the
obligations  described  in  this  paragraph) and any such failure shall continue
uncured  (or  any announcement, statement or threat not to honor its obligations
shall  not  be  rescinded in writing) for ten (10) days after the Borrower shall
have  been  notified  thereof  in  writing  by  the  Holder.

     3.3     FAILURE  TO  TIMELY  FILE REGISTRATION OR EFFECT REGISTRATION.  The
             -------------------------------------------------------------
Borrower  fails  to  file the Registration Statement within forty-five (45) days
following  the  Filing Date (as defined in the Registration Rights Agreement) or
obtain  effectiveness  with  the  Securities  and  Exchange  Commission  of  the
Registration Statement within one hundred twenty (120) days following the Filing
Date  or such Registration Statement lapses in effect (or sales cannot otherwise
be  made  thereunder  effective,  whether by reason of the Borrower's failure to
amend  or  supplement  the  prospectus  included  therein in accordance with the
Registration  Rights
<PAGE>
Agreement or otherwise) for more than twenty (20) consecutive days or forty (40)
days  in  any  twelve  month  period  after  the  Registration Statement becomes
effective;

     3.4     BREACH  OF  COVENANTS.  The Borrower breaches any material covenant
             ---------------------
or  other  material  term  or condition contained in Sections 1.3, 1.6 or 1.7 of
this  Debenture,  or  Sections 4(c), 4(e), 4(h), 4(i), 4(j) or 5 of the Purchase
Agreement  and such breach continues for a period of ten (10) days after written
notice  thereof  to  the  Borrower  from  the  Holder;

     3.5     BREACH  OF  REPRESENTATIONS  AND WARRANTIES.  Any representation or
             -------------------------------------------
warranty  of  the  Borrower  made  herein  or  in  any  agreement,  statement or
certificate  given  in  writing  pursuant  hereto  or  in  connection  herewith
(including,  without  limitation,  the  Purchase  Agreement and the Registration
Rights  Agreement),  shall  be  false or misleading in any material respect when
made  and  the  breach  of  which  has (or with the passage of time will have) a
material  adverse  effect  on  the  rights  of  the  Holder with respect to this
Debenture,  the  Purchase  Agreement  or  the  Registration  Rights  Agreement;

     3.6     RECEIVER  OR  TRUSTEE.  The  Borrower  or  any  subsidiary  of  the
             ---------------------
Borrower  shall make an assignment for the benefit of creditors, or apply for or
consent  to the appointment of a receiver or trustee for it or for a substantial
part  of its property or business, or such a receiver or trustee shall otherwise
be  appointed;

     3.7     JUDGMENTS.  Any  money  judgment,  writ or similar process shall be
             ---------
entered  or  filed against the Borrower or any subsidiary of the Borrower or any
of  its  property  or  other  assets  for  more  than  $50,000, and shall remain
unvacated,  unbonded  or  unstayed  for  a  period  of  twenty  (20) days unless
otherwise  consented  to  by  the Holder, which consent will not be unreasonably
withheld;

     3.8     BANKRUPTCY.  Bankruptcy,  insolvency, reorganization or liquidation
             ----------
proceedings  or other proceedings for relief under any bankruptcy law or any law
for  the relief of debtors shall be instituted by or against the Borrower or any
subsidiary  of  the  Borrower;  or

     3.9     DELISTING OF COMMON STOCK.  The Borrower shall fail to maintain the
             -------------------------
listing  of  the  Common Stock on at least one of the OTCBB, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American
Stock  Exchange;

     3.10     DEFAULT  UNDER OTHER DEBENTURES.  An Event of Default has occurred
              -------------------------------
and  is  continuing  under  any  of  the other Debentures issued pursuant to the
Purchase  Agreement.

then,  upon  the  occurrence and during the continuation of any Event of Default
specified  in  Section 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.9, or 3.10, at the option
of  the  Holders  of  a  majority  of  the  aggregate  principal  amount  of the
outstanding  Debentures  issued  pursuant  to the Purchase Agreement exercisable
through  the  delivery  of  written  notice to the Borrower by such Holders (the
"DEFAULT  NOTICE"),  and upon the occurrence of an Event of Default specified in
Section  3.6 or 3.8, the Debentures shall become immediately due and payable and
the  Borrower  shall  pay to the Holder, in full satisfaction of its obligations
hereunder,  an  amount equal to the greater of (i) 130% times the sum of (w) the
then  outstanding principal amount of this Debenture plus (x)
<PAGE>
accrued  and unpaid interest on the unpaid principal amount of this Debenture to
the date of payment (the "MANDATORY PREPAYMENT DATE") plus (y) Default Interest,
if  any,  on  the  amounts  referred  to  in clauses (w) and/or (x) plus (z) any
amounts  owed  to  the  Holder  pursuant  to  Sections  1.3 and 1.4(g) hereof or
pursuant  to  Section  2(c)  of  the  Registration  Rights  Agreement  (the then
outstanding  principal  amount of this Debenture to the date of payment plus the
amounts  referred  to in clauses (x), (y) and (z) shall collectively be known as
the  "DEFAULT SUM") or (ii) the "parity value" of the Default Sum to be prepaid,
where  parity  value  means  (a)  the  highest  number of shares of Common Stock
issuable  upon  conversion  of  or  otherwise  pursuant  to  such Default Sum in
accordance  with  Article  I, treating the Trading Day immediately preceding the
Mandatory  Prepayment  Date as the "Conversion Date" for purposes of determining
the  lowest  applicable  Conversion  Price, unless the Default Event arises as a
result  of  a breach in respect of a specific Conversion Date in which case such
Conversion  Date  shall  be  the Conversion Date), multiplied by (b) the highest
Closing  Price  for  the Common Stock during the period beginning on the date of
first  occurrence  of  the  Event  of  Default  and  ending one day prior to the
Mandatory  Prepayment  Date (the "DEFAULT AMOUNT") and all other amounts payable
hereunder  shall  immediately  become  due  and  payable,  all  without  demand,
presentment  or  notice, all of which hereby are expressly waived, together with
all  costs,  including,  without  limitation,  legal  fees  and  expenses,  of
collection,  and  the  Holder shall be entitled to exercise all other rights and
remedies available at law or in equity. If the Borrower fails to pay the Default
Amount  within  five (5) business days of written notice that such amount is due
and  payable,  then  the Holder shall have the right at any time, so long as the
Borrower  remains  in  default  (and  so  long  and to the extent that there are
sufficient  authorized shares), to require the Borrower, upon written notice, to
immediately issue, in lieu of the Default Amount, the number of shares of Common
Stock  of  the  Borrower  equal  to the Default Amount divided by the Conversion
Price  then  in  effect.

                           ARTICLE IV.  MISCELLANEOUS

     4.1     FAILURE  OR INDULGENCE NOT WAIVER.  No failure or delay on the part
             ---------------------------------
of  the  Holder in the exercise of any power, right or privilege hereunder shall
operate  as  a  waiver  thereof, nor shall any single or partial exercise of any
such  power, right or privilege preclude other or further exercise thereof or of
any  other  right,  power  or  privileges.  All  rights  and  remedies  existing
hereunder  are  cumulative  to,  and  not  exclusive  of, any rights or remedies
otherwise  available.

     4.2     NOTICES.  Any notice herein required or permitted to be given shall
             -------
be  in  writing  and may be personally served or delivered by courier or sent by
United  States  mail  and  shall  be  deemed  to have been given upon receipt if
personally served (which shall include telephone line facsimile transmission) or
sent  by  courier  or  three (3) days after being deposited in the United States
mail,  certified, with postage pre-paid and properly addressed, if sent by mail.
For  the  purposes  hereof,  the  address of the Holder shall be as shown on the
records  of  the  Borrower;  and  the address of the Borrower shall be 4 Mulford
Place,  Suite  2G,  Hempstead, NY 11550, facsimile number:  509-472-4654).  Both
the  Holder  and  the  Borrower may change the address for service by service of
written  notice  to  the  other  as  herein  provided.
<PAGE>
     4.3     AMENDMENTS.  This  Debenture  and  any provision hereof may only be
             ----------
amended  by an instrument in writing signed by the Borrower and the Holder.  The
term  "Debenture" and all reference thereto, as used throughout this instrument,
shall  mean  this  instrument  (and  the other Debentures issued pursuant to the
Purchase Agreement) as originally executed, or if later amended or supplemented,
then  as  so  amended  or  supplemented.

     4.4     ASSIGNABILITY.  This  Debenture  shall be binding upon the Borrower
             -------------
and  its successors and assigns, and shall inure to be the benefit of the Holder
and  its  successors  and assigns.  Each transferee of this Debenture must be an
"accredited  investor"  (as  defined  in  Rule  501(a)  of  the  1933  Act).
Notwithstanding  anything  in this Debenture to the contrary, this Debenture may
be  pledged as collateral in connection with a bona fide margin account or other
lending  arrangement.

     4.5     COST  OF  COLLECTION.  If  default  is  made in the payment of this
             --------------------
Debenture,  the  Borrower  shall  pay  the  Holder  hereof  costs of collection,
including  reasonable  attorneys'  fees.

     4.6     GOVERNING  LAW.  THIS  DEBENTURE SHALL BE ENFORCED, GOVERNED BY AND
             --------------
CONSTRUED  IN  ACCORDANCE  WITH  THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS  MADE  AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD
TO  THE  PRINCIPLES  OF  CONFLICT  OF  LAWS.  THE BORROWER HEREBY SUBMITS TO THE
EXCLUSIVE  JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW  YORK  WITH  RESPECT  TO  ANY  DISPUTE  ARISING  UNDER  THIS  DEBENTURE, THE
AGREEMENTS  ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE
THAT  SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING  HEREIN  SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS
IN  ANY  OTHER  MANNER  PERMITTED  BY  LAW.  BOTH  PARTIES  AGREE  THAT  A FINAL
NON-APPEALABLE  JUDGMENT  IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY  BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL  MANNER.  THE  PARTY  WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER
THIS  DEBENTURE  SHALL  BE  RESPONSIBLE  FOR  ALL  FEES  AND EXPENSES, INCLUDING
ATTORNEYS'  FEES,  INCURRED  BY  THE  PREVAILING  PARTY  IN CONNECTION WITH SUCH
DISPUTE.

     4.7     CERTAIN  AMOUNTS.  Whenever pursuant to this Debenture the Borrower
             ----------------
is  required  to pay an amount in excess of the outstanding principal amount (or
the  portion  thereof  required to be paid at that time) plus accrued and unpaid
interest  plus  Default  Interest  on such interest, the Borrower and the Holder
agree  that the actual damages to the Holder from the receipt of cash payment on
this Debenture may be difficult to determine and the amount to be so paid by the
Borrower  represents  stipulated  damages  and  not a penalty and is intended to
<PAGE>
compensate  the  Holder  in  part  for  loss  of the opportunity to convert this
Debenture  and to earn a return from the sale of shares of Common Stock acquired
upon  conversion  of  this  Debenture at a price in excess of the price paid for
such  shares  pursuant  to  this  Debenture.  The Borrower and the Holder hereby
agree  that such amount of stipulated damages is not plainly disproportionate to
the  possible  loss to the Holder from the receipt of a cash payment without the
opportunity  to  convert  this  Debenture  into  shares  of  Common  Stock.

     4.8     ALLOCATIONS  OF  MAXIMUM  SHARE  AMOUNT  AND  RESERVED AMOUNT.  The
             -------------------------------------------------------------
Maximum  Share  Amount and Reserved Amount shall be allocated pro rata among the
Holders of Debentures based on the principal amount of such Debentures issued to
each  Holder.  Each  increase  to  the  Maximum Share Amount and Reserved Amount
shall  be  allocated  pro  rata  among  the  Holders  of Debentures based on the
principal  amount  of  such  Debentures  held  by each Holder at the time of the
increase  in the Maximum Share Amount or Reserved Amount.  In the event a Holder
shall  sell  or  otherwise  transfer  any  of  such  Holder's  Debentures,  each
transferee  shall  be  allocated a pro rata portion of such transferor's Maximum
Share  Amount  and  Reserved Amount.  Any portion of the Maximum Share Amount or
Reserved  Amount  which remains allocated to any person or entity which does not
hold  any  Debentures shall be allocated to the remaining Holders of Debentures,
pro  rata  based  on  the  principal amount of such Debentures then held by such
Holders.

     4.9     DAMAGES SHARES.  The shares of Common Stock that may be issuable to
             --------------
the  Holder  pursuant  to Sections 1.3 and 1.4(g) hereof and pursuant to Section
2(c) of the Registration Rights Agreement ("DAMAGES SHARES") shall be treated as
Common  Stock issuable upon conversion of this Debenture for all purposes hereof
and shall be subject to all of the limitations and afforded all of the rights of
the  other  shares  of  Common  Stock  issuable  hereunder,  including  without
limitation,  the  right  to  be  included  in  the  Registration Statement filed
pursuant  to  the  Registration  Rights  Agreement.  For purposes of calculating
interest payable on the outstanding principal amount hereof, except as otherwise
provided  herein,  amounts  convertible  into Damages Shares ("DAMAGES AMOUNTS")
shall  not  bear  interest  but must be converted prior to the conversion of any
outstanding  principal  amount  hereof, until the outstanding Damages Amounts is
zero.

     4.10     DENOMINATIONS.  At  the  request  of the Holder, upon surrender of
              -------------
this  Debenture,  the  Borrower  shall  promptly  issue  new  Debentures  in the
aggregate  outstanding  principal  amount  hereof,  in  the form hereof, in such
denominations  of  at  least  $50,000  as  the  Holder  shall  request.

     4.11     PURCHASE  AGREEMENT.  By  its  acceptance  of this Debenture, each
              -------------------
Holder  agrees  to  be  bound by the applicable terms of the Purchase Agreement.

     4.12     NOTICE  OF  CORPORATE EVENTS.  Except as otherwise provided below,
              ----------------------------
the  Holder  of  this Debenture shall have no rights as a Holder of Common Stock
unless and only to the extent that it converts this Debenture into Common Stock.
The  Borrower shall provide the Holder with prior notification of any meeting of
the Borrower's stockholders (and copies of proxy materials and other information
sent  to  stockholders).  In the event of any taking by the Borrower of a record
of its stockholders for the purpose of determining stockholders who are
<PAGE>
entitled  to receive payment of any dividend or other distribution, any right to
subscribe  for,  purchase  or  otherwise  acquire  (including  by way of merger,
consolidation,  reclassification  or recapitalization) any share of any class or
any  other  securities  or  property,  or to receive any other right, or for the
purpose  of determining stockholders who are entitled to vote in connection with
any proposed sale, lease or conveyance of all or substantially all of the assets
of  the  Borrower  or any proposed liquidation, dissolution or winding up of the
Borrower,  the  Borrower shall mail a notice to the Holder, at least twenty (20)
days  prior  to  the record date specified therein (or thirty (30) days prior to
the consummation of the transaction or event, whichever is earlier), of the date
on  which  any  such  record  is  to  be taken for the purpose of such dividend,
distribution,  right  or other event, and a brief statement regarding the amount
and character of such dividend, distribution, right or other event to the extent
known  at  such time. The Borrower shall make a public announcement of any event
requiring notification to the Holder hereunder substantially simultaneously with
the  notification  to  the  Holder  in accordance with the terms of this Section
4.12.

4.13     REMEDIES.  The  Borrower  acknowledges  that  a  breach  by  it  of its
         --------
obligations  hereunder  will  cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby.  Accordingly, the
Borrower  acknowledges  that  the  remedy at law for a breach of its obligations
under  this Debenture will be inadequate and agrees, in the event of a breach or
threatened  breach by the Borrower of the provisions of this Debenture, that the
Holder  shall be entitled, in addition to all other available remedies at law or
in  equity, and in addition to the penalties assessable herein, to an injunction
or  injunctions  restraining,  preventing or curing any breach of this Debenture
and  to  enforce  specifically  the  terms  and  provisions thereof, without the
necessity  of showing economic loss and without any bond or other security being
required.

                         ARTICLE V.  OPTIONAL PREPAYMENT

     5.1.     OPTIONAL  PREPAYMENT.  Notwithstanding  anything  to  the contrary
              --------------------
contained  in  this  Article V, for not more than thirty (30) days from the date
hereof,  so  long  as (i) no Event of Default or Trading Market Prepayment Event
shall  have  occurred  and be continuing, and (ii) the Borrower has a sufficient
number  of  authorized  shares  of  Common Stock reserved for issuance upon full
conversion  of  the  Debentures,  then  at  any  time  after the Issue Date, the
Borrower  shall  have  the  right, exercisable on not less than ten (10) Trading
Days prior written notice to the Holders of the Debentures (which notice may not
be  sent  to  the  Holders  of the Debentures until the Borrower is permitted to
prepay  the  Debentures  pursuant  to  this  Section  5.1), to prepay all of the
outstanding  Debentures  in  accordance  with  this  Section 5.1.  Any notice of
prepayment  hereunder  (an  "OPTIONAL  PREPAYMENT")  shall  be  delivered to the
Holders  of  the Debentures at their registered addresses appearing on the books
and  records of the Borrower and shall state (1) that the Borrower is exercising
its  right  to prepay all of the Debentures issued on the Issue Date and (2) the
date  of  prepayment  (the "OPTIONAL PREPAYMENT NOTICE").  On the date fixed for
prepayment  (the "OPTIONAL PREPAYMENT DATE"), the Borrower shall make payment of
the  Optional  Prepayment  Amount (as defined below) to or upon the order of the
Holders  as specified by the Holders in writing to the Borrower at least one (1)
business  day  prior to the Optional Prepayment Date.  If the Borrower exercises
its  right  to  prepay  the  Debentures,
<PAGE>
the  Borrower  shall  make  payment  to  the  holders  of an amount in cash (the
"OPTIONAL  PREPAYMENT  AMOUNT")  equal  to 130% multiplied by the sum of (w) the
then  outstanding principal amount of this Debenture plus (x) accrued and unpaid
interest  on  the unpaid principal amount of this Debenture to the Optional
Prepayment  Date plus (y) Default Interest, if  any, on the amounts referred
to  in clauses (w) and (x) plus (z) any amounts owed  to the Holder pursuant
to  Sections  1.3  and  1.4(g)  hereof  or  pursuant  to  Section  2(c)  of  the
Registration  Rights  Agreement  (the  then outstanding principal amount of this
Debenture  to  the  date of payment plus the amounts referred to in clauses
(x),  (y) and (z) shall collectively be known as the "OPTIONAL PREPAYMENT SUM").
Notwithstanding notice of an Optional Prepayment, the Holders shall at all times
prior  to  the Optional Prepayment Date maintain the right to convert all or any
portion  of  the  Debentures  in  accordance  with  Article I and any portion of
Debentures so converted after receipt of an Optional Prepayment Notice and prior
to  the  Optional  Prepayment  Date  set forth in such notice and payment of the
aggregate Optional Prepayment Amount shall be deducted from the principal amount
of Debentures which are otherwise subject to prepayment pursuant to such notice.
If  the  Borrower  delivers  an  Optional Prepayment Notice and fails to pay the
Optional  Prepayment  Amount due to the Holders of the Debentures within two (2)
business days following the Optional Prepayment Date, the Borrower shall forever
forfeit  its  right  to  redeem  the  Debentures  pursuant  to this Section 5.1.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>
IN  WITNESS WHEREOF, Borrower has caused this Debenture to be signed in its name
by  its  duly  authorized  officer  this  15th  day  of  May,  2002.

                                         TORBAY  HOLDINGS,  INC.

                                         By:     ______________________________
                                               William  Thomas  Large
                                               President  and  Chief
                                               Executive  Officer

<PAGE>

                                                              EXHIBIT A

                              NOTICE OF CONVERSION
                    (To be Executed by the Registered Holder
                       in order to Convert the Debentures)

          The  undersigned  hereby  irrevocably  elects  to  convert
$________principal amount of the Debenture (defined below) into shares of common
stock,  par value $.0001 per share ("COMMON STOCK"), of Torbay Holdings, Inc., a
Delaware  corporation  (the  "BORROWER")  according  to  the  conditions  of the
convertible  debentures  of  the  Borrower  dated  as  of  May  15,  2002  (the
"Debentures"),  as of the date written below.  If securities are to be issued in
the  name  of  a person other than the undersigned, the undersigned will pay all
transfer  taxes  payable  with  respect  thereto and is delivering herewith such
certificates.  No  fee  will be charged to the Holder for any conversion, except
for  transfer  taxes,  if  any.  A copy of each Debenture is attached hereto (or
evidence  of  loss,  theft  or  destruction  thereof).

          The  Borrower  shall electronically transmit the Common Stock issuable
pursuant  to  this Notice of Conversion to the account of the undersigned or its
nominee  with DTC through its Deposit Withdrawal Agent Commission system ( "DWAC
TRANSFER").

     Name  of  DTC  Prime  Broker: ____________________________________________
     Account  Number:__________________________________________________________

          In  lieu of receiving shares of Common Stock issuable pursuant to this
Notice  of Conversion by way of a DWAC Transfer, the undersigned hereby requests
that  the  Borrower issue a certificate or certificates for the number of shares
of  Common  Stock  set  forth  below  (which  numbers  are based on the Holder's
calculation  attached  hereto) in the name(s) specified immediately below or, if
additional  space  is  necessary,  on  an  attachment  hereto:

     Name:______________________________________________________________________
     Address:___________________________________________________________________

          The  undersigned  represents and warrants that all offers and sales by
the undersigned of the securities issuable to the undersigned upon conversion of
the  Debentures  shall  be made pursuant to registration of the securities under
the  Securities Act of 1933, as amended (the "ACT"), or pursuant to an exemption
from  registration  under  the  Act.

          Date  of  Conversion:_____________________________
          Applicable  Conversion  Price:____________________
          Number  of  Shares  of  Common  Stock  to  be  Issued  Pursuant  to
          Conversion  of  the  Debentures:__________________
          Signature:________________________________________
          Name:_____________________________________________
          Address:__________________________________________

The  Borrower  shall  issue  and  deliver shares of Common Stock to an overnight
courier  not  later  than  three business days following receipt of the original
Debenture(s) to be converted, and shall make payments pursuant to the Debentures
for  the  number  of  business  days  such  issuance  and  delivery  is  late.

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