Document:

EXHIBIT 10.11

                AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT

     This Amendment No. 1 to Securities Purchase Agreement, dated as of August
21, 2002, shall serve to amend the Securities Purchase Agreement (the
"Agreement"), dated as of May 15, 2002, by and among Torbay Holdings, Inc., a
Delaware corporation with its headquarters located at 4 Mulford Place, Suite 2G,
Hempstead, New York 11550, and each of the Buyers set forth in the Agreement.

     1.     The undersigned parties hereby agree to amend Section 4(l) of the
Agreement to provide that the Buyers will fund $55,000 of the subsequent
investment referred to in that section on the date hereof, with the remaining
$195,000 to be funded within five (5) business days following the Effective Date
of the Registration Statement (as defined in the Agreement).

2.     The undersigned hereby acknowledge that, subsequent to the date of the
Agreement, AJW/New Millennium Offshore, Ltd. changed its name to AJW Offshore,
Ltd. and Pegasus Capital Partners, LLC changed its name to AJW Qualified
Partners, LLC.

3.     All other provisions of the Agreement shall remain in full force and
effect.

                            [Signature Page Follows]

<PAGE>
ACCEPTED AND AGREED:

TORBAY HOLDINGS, INC.

By:  /s/ William Thomas Large
    _____________________________________
     William Thomas Large
     President and Chief Executive Officer

AJW PARTNERS, LLC
By: SMS Group, LLC

By:  /s/ Corey Ribotsky
    _____________________________________
     Corey S. Ribotsky
     Manager

AJW OFFSHORE, LTD.
By:  First Street Manager II, LLC

By:  /s/ Corey Ribotsky
     ______________________
     Corey S. Ribotsky
     Manager

AJW QUALIFIED PARTNERS, LLC
By:  AJW Manager, LLC

By:  /s/ Corey Ribotsky
    ____________________
     Corey S. Ribotsky
     Manager

<PAGE><PAGE>

EXHIBIT  10.12

THIS  WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN  REGIS-TERED  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, AJW Qualified Partners, LLC 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  $.05  (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.

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

1.     MANNER  OF  EXERCISE;  ISSUANCE  OF  CERTIFICATES;  PAYMENT  FOR  SHARES.
       ------------------------------------------------------------------------
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 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 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 generality 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 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.

(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.

(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, 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.

(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 Over-the-Counter
Bulletin Board (the "OTCBB") for the five (5) trading days immediately preceding
such  date  as  reported  by  Bloomberg Financial Markets or an equivalent,
reliable  reporting  service  mutually  acceptable to the Company and the holder
hereof  ("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.

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  contrary.
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 evidence 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 transfer, 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  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 communications 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,  New  York  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 receive 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 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 inserted 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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

By: /s/ William Thomas Large
  _______________________________
 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  payment  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 certificates 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  fraction  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 hereinbelow, 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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]