Document:

EXHIBIT 10.9
                               SECURITY AGREEMENT

     SECURITY  AGREEMENT  (this  "Agreement"),  dated as of May 15, 2002, by and
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among Torbay Holdings, Inc., a Delaware corporation ("Company"), and the secured
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parties signatory hereto and their respective endorsees, transferees and assigns
(collectively,  the  "Secured  Party").
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                              W I T N E S S E T H:

     WHEREAS, pursuant to a Securities Purchase Agreement, dated the date hereof
between  Company  and  the Secured Party (the "Purchase Agreement"), Company has
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agreed  to  issue  to  the  Secured  Party  and  the Secured Party has agreed to
purchase  from  Company certain of Company's 12% Secured Convertible Debentures,
due  one  year  from the date of issue (the "Debentures"), which are convertible
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into  shares  of  Company's Common Stock, no par value (the "Common Stock").  In
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connection therewith, Company shall issue the Secured Party certain Common Stock
purchase  warrants  dated as of the date hereof to purchase the number of shares
of  Common  Stock  indicated  below  each  Secured  Party's name on the Purchase
Agreement  (the  "Warrants");  and
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WHEREAS,  in  order  to  induce  the  Secured  Party to purchase the Debentures,
Company  has  agreed  to execute and deliver to the Secured Party this Agreement
for  the  benefit  of  the  Secured  Party  and  to grant to it a first priority
security  interest  in certain property of Company to secure the prompt payment,
performance  and  discharge  in  full  of all of Company's obligations under the
Debentures and exercise and discharge in full of Company's obligations under the
Warrants.

NOW,  THEREFORE,  in  consideration  of  the agreements herein contained and for
other  good  and valuable consideration, the receipt and sufficiency of which is
hereby  acknowledged,  the  parties  hereto  hereby  agree  as  follows:

1.     Certain  Definitions.  As  used  in  this  Agreement, the following terms
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shall  have  the  meanings  set  forth  in  this  Section 1.  Terms used but not
otherwise  defined  in  this  Agreement that are defined in Article 9 of the UCC
(such  as  "general  intangibles"  and  "proceeds")  shall  have  the respective
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meanings  given  such  terms  in  Article  9  of  the  UCC.

(a)     "Collateral"  means the collateral in which the Secured Party is granted
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a  security  interest  by  this Agreement and which shall include the following,
whether  presently  owned  or  existing  or  hereafter  acquired  or coming into
existence,  and  all  additions and accessions thereto and all substitutions and
replacements  thereof,  and  all  proceeds,  products  and  accounts  thereof,
including,  without  limitation,  all  proceeds from the sale or transfer of the
Collateral  and  of  insurance  covering  the  same  and  of  any tort claims in
connection  therewith:

(i)     All Goods of the Company, including, without limitations, all machinery,
     equipment,  computers,  motor  vehicles,  trucks,  tanks,  boats,  ships,
appliances,  furniture,  special  and  general tools, fixtures, test and quality
control  devices  and  other  equipment  of  every  kind and nature and wherever
situated,  together  with  all documents of title and documents representing the
same,  all  additions  and  accessions thereto, replacements therefor, all parts
therefor,  and all substitutes for any of the foregoing and all other items used
and  useful  in  connection  with  the Company's businesses and all improvements
thereto  (collectively,  the  "Equipment");  and
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(ii)     All  Inventory  of  the  Company;  and

(iii)     All  of  the  Company's  contract  rights  and  general  intangibles,
including,  without  limitation,  all  partnership  interests,  stock  or  other
securities,  licenses,  distribution  and  other  agreements,  computer software
development  rights,  leases,  franchises,  customer  lists,  quality  control
procedures,  grants  and  rights,  goodwill,  trademarks,  service  marks, trade
styles, trade names, patents, patent applications, copyrights, deposit accounts,
and  income  tax  refunds  (collectively,  the  "General  Intangibles");  and
                                                 --------------------
(iv)     All  Receivables  of  the Company including all insurance proceeds, and
rights  to  refunds  or  indemnification  whatsoever  owing,  together  with all
instruments,  all  documents  of  title  representing  any of the foregoing, all
rights  in  any merchandising, goods, equipment, motor vehicles and trucks which
any  of  the  same  may represent, and all right, title, security and guaranties
with respect to each Receivable, including any right of stoppage in transit; and

(v)     All  of  the  Company's documents, instruments and chattel paper, files,
records,  books  of account, business papers, computer programs and the products
and  proceeds  of  all of the foregoing Collateral set forth in clauses (i)-(iv)
above.

(b)     "Company"  shall mean, collectively, Company and all of the subsidiaries
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of  Company,  a  list  of  which  is  contained  in Schedule A, attached hereto.
                                                    ----------
(c)     "Obligations"  means  all  of  the  Company's  obligations  under  this
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Agreement  and  the Debentures, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
or  unliquidated,  whether  or  not jointly owed with others, and whether or not
from  time  to  time  decreased  or extinguished and later decreased, created or
incurred,  and  all  or  any portion of such obligations or liabilities that are
paid,  to  the  extent  all  or any part of such payment is avoided or recovered
directly  or  indirectly  from  the  Secured  Party  as a preference, fraudulent
transfer  or  otherwise  as  such  obligations  may  be  amended,  supplemented,
converted,  extended  or  modified  from  time  to  time.

(d)     "UCC"  means  the Uniform Commercial Code, as currently in effect in the
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State  of  New  York.

2.     Grant  of  Security  Interest.  As an inducement for the Secured Party to
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purchase  the  Debentures  and  to  secure  the  complete  and  timely  payment,
performance  and  discharge  in  full,  as  the  case  may  be,  of  all  of the
Obligations,  the  Company  hereby,  unconditionally  and  irrevocably, pledges,
grants and hypothecates to the Secured Party, a continuing security interest in,
a  continuing  first  lien  upon,  an  unqualified  right to possession and
disposition  of  and  a  right  of  set-off against, in each case to the fullest
extent  permitted  by  law,  all  of  the Company's right, title and interest of
whatsoever  kind  and nature in and to the Collateral (the "Security Interest").
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3.     Representations,  Warranties,  Covenants  and  Agreements of the Company.
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The  Company  represents  and  warrants  to,  and covenants and agrees with, the
Secured  Party  as  follows:

(a)     The  Company  has  the  requisite corporate power and authority to enter
into  this Agreement and otherwise to carry out its obligations thereunder.  The
execution,  delivery  and  performance  by the Company of this Agreement and the
filings  contemplated  therein have been duly authorized by all necessary action
on  the  part  of  the Company and no further action is required by the Company.
This  Agreement constitutes a legal, valid and binding obligation of the Company
enforceable  in  accordance  with  its  terms,  except  as enforceability may be
limited  by  bankruptcy,  insolvency, reorganization, moratorium or similar laws
affecting  the  enforcement  of  creidtor's  rights  generally.

(b)     The  Company represents and warrants that it has no place of business or
offices  where  its respective books of account and records are kept (other than
temporarily  at  the  offices  of  its attorneys or accountants) or places where
Collateral  is  stored  or  located,  except as set forth on Schedule A attached
                                                             ----------
hereto;

(c)     The  Company  is  the  sole  owner  of  the  Collateral  (except  for
non-exclusive  licenses  granted  by  the  Company  in  the  ordinary  course of
business), free and clear of any liens, security interests, encumbrances, rights
or  claims,  and  is  fully  authorized to grant the Security Interest in and to
pledge  the  Collateral.  There is not on file in any governmental or regulatory
authority, agency or recording office an effective financing statement, security
agreement, license or transfer or any notice of any of the foregoing (other than
those  that  have  been  filed  in  favor  of the Secured Party pursuant to this
Agreement)  covering  or  affecting  any  of  the  Collateral.  So  long as this
Agreement  shall  be  in  effect,  the  Company  shall not execute and shall not
knowingly  permit  to be on file in any such office or agency any such financing
statement  or  other  document  or  instrument  (except  to  the extent filed or
recorded in favor of the Secured Party pursuant to the terms of this Agreement).

(d)     No  part of the Collateral has been judged invalid or unenforceable.  No
written  claim has been received that any Collateral or the Company's use of any
Collateral  violates  the  rights  of any third party. There has been no adverse
decision  to  the  Company's claim of ownership rights in or exclusive rights to
use  the  Collateral  in  any jurisdiction or to the Company's right to keep and
maintain  such  Collateral  in full force and effect, and there is no proceeding
involving  said  rights  pending  or,  to  the  best  knowledge  of the Company,
threatened before any court, judicial body, administrative or regulatory agency,
arbitrator  or  other  governmental  authority.

(e)     The Company shall at all times maintain its books of account and records
relating to the Collateral at its principal place of business and its Collateral
at  the  locations  set forth on Schedule A attached hereto and may not relocate
                                 ----------
such  books  of account and records or tangible Collateral unless it delivers to
the  Secured  Party at least 30 days prior to such relocation (i) written notice
of such relocation and the new location thereof (which must be within the United
States)  and  (ii)  evidence  that  appropriate  financing  statements and other
necessary documents have been filed and recorded and other steps have been taken
to  perfect the Security Interest to create in favor of the Secured Party valid,
perfected  and  continuing  first  priority  liens  in  the  Collateral.

(f)     This  Agreement  creates  in favor of the Secured Party a valid security
interest  in  the  Collateral  securing  the  payment  and  performance  of  the
Obligations  and, upon making the filings described in the immediately following
sentence,  a  perfected  first  priority  security  interest in such Collateral.
Except  for the filing of financing statements on Form-1 under the UCC with  the
jurisdictions  indicated  on  Schedule  B,  attached hereto, no authorization or
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approval of or filing with or notice to any governmental authority or regulatory
body  is  required  either  (i)  for  the  grant  by  the  Company  of,  or  the
effectiveness  of,  the  Security  Interest granted hereby or for the execution,
delivery  and  performance  of  this  Agreement  by  the Company or (ii) for the
perfection  of  or  exercise  by  the  Secured  Party of its rights and remedies
hereunder.

(g)     On  the date of execution of this Agreement, the Company will deliver to
the  Secured  Party one or more executed UCC financing statements on Form-1 with
respect to the Security Interest for filing with  the jurisdictions indicated on
Schedule  B, attached hereto and in such other jurisdictions as may be requested
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by  the  Secured  Party.

(h)     The  execution,  delivery  and  performance  of  this Agreement does not
conflict with or cause a breach or default, or an event that with or without the
passage  of  time  or  notice,  shall  constitute a breach or default, under any
agreement  to which the Company is a party or by which the Company is bound.  No
consent  (including,  without limitation, from stock holders or creditors of the
Company)  is  required for the Company to enter into and perform its obligations
hereunder.

(i)     The  Company shall at all times maintain the liens and Security Interest
provided  for hereunder as valid and perfected first priority liens and security
interests  in  the Collateral in favor of the Secured Party until this Agreement
and  the  Security  Interest  hereunder  shall terminate pursuant to Section 11.
The  Company  hereby agrees to defend the same against any and all persons.  The
Company  shall  safeguard  and  protect  all  Collateral  for the account of the
Secured  Party.  At  the request of the Secured Party, the Company will sign and
deliver  to  the  Secured  Party  at  any  time or from time to time one or more
financing  statements  pursuant  to the UCC (or any other applicable statute) in
form  reasonably  satisfactory  to  the  Secured  Party and will pay the cost of
filing  the  same  in all public offices wherever filing is, or is deemed by the
Secured Party to be, necessary or desirable to effect the rights and obligations
provided  for  herein.  Without  limiting  the  generality of the foregoing, the
Company  shall  pay  all fees, taxes and other amounts necessary to maintain the
Collateral and the Security Interest hereunder, and the Company shall obtain and
furnish  to  the  Secured  Party  from  time to time, upon demand, such releases
and/or  subordinations of claims and liens which may be required to maintain the
priority  of  the  Security  Interest  hereunder.

(j)     The  Company  will  not transfer, pledge, hypothecate, encumber, license
(except for non-exclusive licenses granted by the Company in the ordinary course
of  business),  sell  or  otherwise dispose of any of the Collateral without the
prior  written  consent  of  the  Secured  Party.

(k)     The  Company  shall keep and preserve its Equipment, Inventory and other
tangible Collateral in good condition, repair and order and shall not operate or
locate  any  such  Collateral  (or  cause to be operated or located) in any area
excluded  from  insurance  coverage.

(l)     The  Company shall, within ten (10) days of obtaining knowledge thereof,
advise  the  Secured  Party  promptly,  in sufficient detail, of any substantial
change  in the Collateral, and of the occurrence of any event which would have a
material adverse effect on the value of the Collateral or on the Secured Party's
security  interest  therein.

(m)     The Company shall promptly execute and deliver to the Secured Party such
further deeds, mortgages, assignments, security agreements, financing statements
or  other  instruments,  documents,  certificates  and  assurances and take such
further action as the Secured Party may from time to time request and may in its
sole  discretion  deem  necessary  to  perfect,  protect or enforce its security
interest  in  the  Collateral  including,  without limitation, the execution and
delivery  of  a  separate  security  agreement  with  respect  to  the Company's
intellectual  property ("Intellectual Property Security Agreement") in which the
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Secured Party has been granted a security interest hereunder, substantially in a
form  acceptable  to  the  Secured  Party,  which Intellectual Property Security
Agreement,  other  than  as stated therein, shall be subject to all of the terms
and  conditions  hereof.

(n)     The  Company  shall permit the Secured Party and its representatives and
agents  to  inspect  the  Collateral  at any time, and to make copies of records
pertaining  to the Collateral as may be requested by the Secured Party from time
to  time.

(o)     The  Company  will  take  all  steps  reasonably necessary to diligently
pursue  and  seek to preserve, enforce and collect any rights, claims, causes of
action  and  accounts  receivable  in  respect  of  the  Collateral.

(p)     The Company shall promptly notify the Secured Party in sufficient detail
upon  becoming  aware  of any  attachment, garnishment, execution or other legal
process  levied  against any Collateral and of any other information received by
the Company that may materially affect the value of the Collateral, the Security
Interest  or  the  rights  and  remedies  of  the  Secured  Party  hereunder.

(q)     All  information heretofore, herein or hereafter supplied to the Secured
Party  by or on behalf of the Company with respect to the Collateral is accurate
and  complete  in  all  material  respects  as  of  the  date  furnished.

(r)     Schedule A attached hereto contains a list of all of the subsidiaries of
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Company.

4.     Defaults.  The  following  events  shall  be  "Events  of  Default":
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(a)     The  occurrence  of  an  Event of Default (as defined in the Debentures)
under  the  Debentures;
(b)     Any  representation  or  warranty of the Company in this Agreement or in
the  Intellectual Property Security Agreement shall prove to have been incorrect
in  any  material  respect  when  made;
(c)     The  failure by the Company to observe or perform any of its obligations
hereunder  or  in the Intellectual Property Security Agreement for ten (10) days
after  receipt  by the Company of notice of such failure from the Secured Party;
and
(d)     Any  breach  of,  or  default  under,  the  Warrants.

5.     Duty  To  Hold In Trust.  Upon the occurrence of any Event of Default and
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at  any  time  thereafter, the Company shall, upon receipt by it of any revenue,
income  or other sums subject to the Security Interest, whether payable pursuant
to  the  Debentures or otherwise, or of any check, draft, note, trade acceptance
or  other instrument evidencing an obligation to pay any such sum, hold the same
in trust for the Secured Party and shall forthwith endorse and transfer any such
sums  or  instruments, or both, to the Secured Party for application to the
satisfaction  of  the  Obligations.

6.     Rights  and  Remedies  Upon  Default.  Upon  occurrence  of  any Event of
       ------------------------------------
Default  and  at  any time thereafter, the Secured Party shall have the right to
exercise  all  of the remedies conferred hereunder and under the Debentures, and
the  Secured  Party  shall  have  all the rights and remedies of a secured party
under  the UCC and/or any other applicable law (including the Uniform Commercial
Code  of  any  jurisdiction  in  which any Collateral is then located).  Without
limitation,  the  Secured  Party  shall  have  the  following rights and powers:
(a)     The  Secured  Party  shall  have  the  right  to  take possession of the
Collateral  and,  for  that  purpose,  enter, with the aid and assistance of any
person,  any  premises  where  the Collateral, or any part thereof, is or may be
placed  and  remove  the same, and the Company shall assemble the Collateral and
make  it  available to the Secured Party at places which the Secured Party shall
reasonably  select,  whether  at  the  Company's premises or elsewhere, and make
available  to  the  Secured Party, without rent, all of the Company's respective
premises  and  facilities for the purpose of the Secured Party taking possession
of,  removing  or  putting  the  Collateral  in  saleable  or  disposable  form.
(b)     The  Secured  Party  shall have the right to operate the business of the
Company  using the Collateral and shall have the right to assign, sell, lease or
otherwise dispose of and deliver all or any part of the Collateral, at public or
private  sale  or  otherwise,  either  with  or  without  special  conditions or
stipulations,  for  cash  or on credit or for future delivery, in such parcel or
parcels  and  at  such  time or times and at such place or places, and upon such
terms  and conditions as the Secured Party may deem commercially reasonable, all
without (except as shall be required by applicable statute and cannot be waived)
advertisement  or demand upon or notice to the Company or right of redemption of
the  Company,  which  are  hereby expressly waived.  Upon each such sale, lease,
assignment  or  other  transfer  of  Collateral,  the  Secured Party may, unless
prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, right
of redemption and equities of the Company, which are hereby waived and released.

7.     Applications  of Proceeds.  The proceeds of any such sale, lease or other
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disposition  of the Collateral hereunder shall be applied first, to the expenses
of  retaking,  holding, storing, processing and preparing for sale, selling, and
the  like  (including,  without  limitation,  any  taxes,  fees  and other costs
incurred  in  connection  therewith)  of  the  Collateral,  to  the  reasonable
attorneys'  fees  and  expenses  incurred  by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the Obligations, and to the payment
of  any  other amounts required by applicable law, after which the Secured Party
shall  pay  to  the Company any surplus proceeds.  If, upon the sale, license or
other  disposition  of  the Collateral, the proceeds thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency, together with interest thereon, at the rate of 15%
per  annum  (the  "Default  Rate"),  and  the  reasonable  fees of any attorneys
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employed  by  the  Secured  Party  to  collect  such  deficiency.  To the extent
permitted  by applicable law, the Company waives all claims, damages and demands
against the Secured Party arising out of the repossession, removal, retention or
sale of the Collateral, unless due to the gross negligence or willful misconduct
of  the  Secured  Party.

8.     Costs and Expenses.     The Company agrees to pay all out-of-pocket fees,
       -------------------
costs  and  expenses  incurred in connection with any filing required hereunder,
including without limitation, any financing statements, continuation statements,
partial  releases  and/or termination statements related thereto or any expenses
of  any  searches  reasonably  required by the Secured Party.  The Company shall
also  pay  all  other  claims and charges which in the reasonable opinion of the
Secured Party might prejudice, imperil or otherwise affect the Collateral or the
Security  Interest  therein.  The  Company  will  also,  upon demand, pay to the
Secured  Party  the  amount  of  any  and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which
the  Secured  Party  may  incur  in  connection with (i) the enforcement of this
Agreement, (ii) the custody or preservation of, or the sale of, collection from,
or  other  realization  upon,  any  of  the Collateral, or (iii) the exercise or
enforcement  of  any  of  the  rights of the Secured Party under the Debentures.
Until so paid, any fees payable hereunder shall be added to the principal amount
of  the  Debentures  and  shall  bear  interest  at  the  Default  Rate.

9.     Responsibility  for  Collateral.  The Company assumes all liabilities and
       -------------------------------
responsibility  in  connection  with  all Collateral, and the obligations of the
Company  hereunder  or  under the Debentures and the Warrants shall in no way be
affected  or  diminished  by reason of the loss, destruction, damage or theft of
any  of  the  Collateral  or  its  unavailability  for  any  reason.

10.     Security  Interest  Absolute.  All  rights  of the Secured Party and all
        ----------------------------
Obligations  of  the  Company  hereunder,  shall  be absolute and unconditional,
irrespective  of:  (a) any lack of validity or enforceability of this Agreement,
the  Debentures,  the  Warrants or any agreement entered into in connection with
the  foregoing,  or  any  portion hereof or thereof; (b) any change in the time,
manner  or  place  of payment or performance of, or in any other term of, all or
any  of  the  Obligations, or any other amendment or waiver of or any consent to
any  departure from the Debentures, the Warrants  or any other agreement entered
into  in  connection  with  the  foregoing;  (c)  any  exchange,  release  or
nonperfection of any of the Collateral, or any release or amendment or waiver of
or  consent  to departure from any other collateral for, or any guaranty, or any
other security, for all or any of the Obligations; (d) any action by the Secured
Party  to obtain, adjust, settle and cancel in its sole discretion any insurance
claims  or matters made or arising in connection with the Collateral; or (e) any
other  circumstance  which  might  otherwise  constitute  any legal or equitable
defense  available  to  the  Company,  or  a discharge of all or any part of the
Security  Interest  granted  hereby.  Until the Obligations shall have been paid
and  performed  in  full, the rights of the Secured Party shall continue even if
the  Obligations  are  barred for any reason, including, without limitation, the
running  of  the  statute  of  limitations or bankruptcy.  The Company expressly
waives presentment, protest, notice of protest, demand, notice of nonpayment and
demand  for  performance.  In  the  event  that  at any time any transfer of any
Collateral  or  any  payment  received  by  the Secured Party hereunder shall be
deemed  by  final  order  of  a  court  of competent jurisdiction to have been a
voidable  preference or fraudulent conveyance under the bankruptcy or insolvency
laws  of  the United States, or shall be deemed to be otherwise due to any party
other than the Secured Party, then, in any such event, the Company's obligations
hereunder  shall  survive  cancellation  of  this  Agreement,  and  shall not be
discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement,  but  shall  remain  a  valid  and  binding obligation enforceable in
accordance  with  the terms and provisions hereof.  The Company waives all right
to require the Secured Party to proceed against any other person or to apply any
Collateral  which  the Secured Party may hold at any time, or to marshal assets,
or to pursue any other remedy.  The Company waives any defense arising by reason
of  the  application  of  the  statute  of limitations to any obligation secured
hereby.

11.     Term  of  Agreement.  This  Agreement  and  the  Security Interest shall
        -------------------
terminate  on the date on which all payments under the Debentures have been made
in  full  and  all  other  Obligations  have been paid or discharged.  Upon such
termination,  the  Secured  Party,  at  the  request  and  at the expense of the
Company,  will  join  in executing any termination statement with respect to any
financing  statement  executed  and  filed  pursuant  to  this  Agreement.

12.     Power  of  Attorney;  Further  Assurances.
        -----------------------------------------

(a)     The  Company  authorizes  the  Secured  Party,  and  does  hereby  make,
constitute  and  appoint  it, and its respective officers, agents, successors or
assigns  with  full  power  of  substitution,  as  the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
     after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including  payments  payable under or in respect of any policy of insurance) in
respect  of  the  Collateral that may come into possession of the Secured Party;

(ii)  to sign and endorse any UCC financing statement or any invoice, freight or
express  bill,  bill  of  lading,  storage or warehouse receipts, drafts against
debtors, assignments, verifications and notices in connection with accounts, and
other  documents  relating  to  the Collateral; (iii) to pay or discharge taxes,
liens,  security interests or other encumbrances at any time levied or placed on
or  threatened  against  the  Collateral;  (iv) to demand, collect, receipt for,
compromise,  settle and sue for monies due in respect of the Collateral; and (v)
generally,  to  do,  at  the  option  of the Secured Party, and at the Company's
expense,  at  any  time,  or  from  time  to time, all acts and things which the
Secured  Party  deems  necessary  to  protect,  preserve  and  realize  upon the
Collateral  and  the  Security  Interest  granted therein in order to effect the
intent  of  this  Agreement,  the  Debentures and the Warrants, all as fully and
effectually  as  the  Company might or could do; and the Company hereby ratifies
all  that  said attorney shall lawfully do or cause to be done by virtue hereof.
This  power of attorney is coupled with an interest and shall be irrevocable for
the  term  of  this  Agreement  and thereafter as long as any of the Obligations
shall  be  outstanding.

(b)     On  a  continuing  basis,  the  Company will make, execute, acknowledge,
deliver, file and record, as the case may be, in the proper filing and recording
places  in  any  jurisdiction,  including, without limitation, the jurisdictions
indicated  on  Schedule  B,  attached hereto, all such instruments, and take all
               -----------
such action as may reasonably be deemed necessary or advisable, or as reasonably
requested  by  the  Secured  Party,  to  perfect  the  Security Interest granted
hereunder  and otherwise to carry out the intent and purposes of this Agreement,
or for assuring and confirming to the Secured Party the grant or perfection of a
security  interest  in  all  the  Collateral.

(c)     The  Company  hereby  irrevocably  appoints  the  Secured  Party  as the
Company's  attorney-in-fact,  with  full authority in the place and stead of the
Company and in the name of the Company, from time to time in the Secured Party's
discretion,  to  take any action and to execute any instrument which the Secured
Party  may  deem  necessary  or  advisable  to  accomplish  the purposes of this
Agreement,  including  the  filing,  in  its  sole  discretion,  of  one or more
financing  or continuation statements and amendments thereto, relative to any of
the  Collateral  without  the  signature  of the Company where permitted by law.

13.     Notices.  All  notices,  requests,  demands  and  other  communications
        -------
hereunder  shall be in writing, with copies to all the other parties hereto, and
shall  be  deemed  to  have  been duly given when (i) if delivered by hand, upon
receipt,  (ii)  if  sent by facsimile, upon receipt of proof of sending thereof,
(iii)  if  sent  by  nationally  recognized  overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified  mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

If  to  the  Company:

Torbay  Holdings,  Inc.
4  Mulford  Place,  Suite  2G
Hempstead,  NY  11550
Attention:  William  Thomas  Large
Facsimile:  509-472-4654

With  copies  to:
Seth  A.  Farbman,  PC
301  Eastwood  Road
Woodmere,  NY  11598
Attention:  Seth  A.  Farbman,  Esq.
Facsimile:  516-569-6084

If  to  the  Secured  Party:
AJW  Partners,  LLC
New  Millennium  Capital  Partners  II,  LLC
AJW/New  Millennium  Offshore,  Ltd.
Pegasus  Capital  Partners,  LLC
155  First  Street,  Suite  B
Mineola,  New  York  11501
Attention:  Corey  Ribotsky
Facsimile:  516-739-7115

With  copies  to:
Ballard  Spahr  Andrews  &  Ingersoll,  LLP
1735  Market  Street,  51st  Floor
Philadelphia,  Pennsylvania  19103
Attention:  Gerald  J.  Guarcini,  Esq.
Facsimile:  215-864-8999

14.     Other Security.  To the extent that the Obligations are now or hereafter
        --------------
     secured  by  property  other  than  the  Collateral  or  by  the guarantee,
endorsement  or property of any other person, firm, corporation or other entity,
then  the Secured Party shall have the right, in its sole discretion, to pursue,
relinquish,  subordinate,  modify or take any other action with respect thereto,
without  in any way modifying or affecting any of the Secured Party's rights and
remedies  hereunder.

15.     Miscellaneous.
        -------------
(a)     No  course of dealing between the Company and the Secured Party, nor any
failure  to  exercise,  nor  any delay in exercising, on the part of the Secured
Party,  any  right,  power  or privilege hereunder or under the Debentures shall
operate  as  a  waiver  thereof; nor shall any single or partial exercise of any
right,  power or privilege hereunder or thereunder preclude any other or further
exercise  thereof  or  the  exercise  of  any  other  right, power or privilege.

(b)     All  of the rights and remedies of the Secured Party with respect to the
Collateral,  whether  established  hereby  or  by the Debentures or by any other
agreements,  instruments  or  documents or by law shall be cumulative and may be
exercised  singly  or  concurrently.

(c)     This  Agreement  constitutes  the  entire  agreement of the parties with
respect  to  the  subject  matter  hereof and is intended to supersede all prior
negotiations,  understandings  and  agreements  with respect thereto.  Except as
specifically  set forth in this Agreement, no provision of this Agreement may be
modified or amended except by a written agreement specifically referring to this
Agreement  and  signed  by  the  parties  hereto.

(d)     In the event that any provision of this Agreement is held to be invalid,
prohibited  or  unenforceable  in  any  jurisdiction for any reason, unless such
provision is narrowed by judicial construction, this Agreement shall, as to such
jurisdiction,  be  construed  as  if  such  invalid, prohibited or unenforceable
provision  had  been  more narrowly drawn so as not to be invalid, prohibited or
unenforceable.  If,  notwithstanding  the  foregoing,  any  provision  of  this
Agreement  is  held  to  be  invalid,  prohibited  or  unenforceable  in  any
jurisdiction,  such  provision, as to such jurisdiction, shall be ineffective to
the  extent  of  such  invalidity,  prohibition  or  unenforceability  without
invalidating  the remaining portion of such provision or the other provisions of
this  Agreement  and  without  affecting  the validity or enforceability of such
provision  or  the other provisions of this Agreement in any other jurisdiction.

(e)     No  waiver  of  any  breach or default or any right under this Agreement
shall  be considered valid unless in writing and signed by the party giving such
waiver,  and no such waiver shall be deemed a waiver of any subsequent breach or
default  or  right,  whether  of  the  same  or  similar  nature  or  otherwise.

(f)     This  Agreement  shall  be binding upon and inure to the benefit of each
party  hereto  and  its  successors  and  assigns.

(g)     Each  party  shall take such further action and execute and deliver such
further  documents  as may be necessary or appropriate in order to carry out the
provisions  and  purposes  of  this  Agreement.

(h)     This  Agreement  shall  be  construed in accordance with the laws of the
State  of New York, except to the extent the validity, perfection or enforcement
of  a  security interest hereunder in respect of any particular Collateral which
are  governed  by  a jurisdiction other than the State of New York in which case
such  law  shall  govern.  Each  of the parties hereto irrevocably submit to the
exclusive  jurisdiction  of  any  New  York State or United States Federal court
sitting  in  Manhattan  county  over  any action or proceeding arising out of or
relating to this Agreement, and the parties hereto hereby irrevocably agree that
all  claims  in respect of such action or proceeding may be heard and determined
in  such New York State or Federal court.  The parties hereto agree that a final
judgment  in  any  such  action  or  proceeding  shall  be conclusive and may be
enforced  in  other jurisdictions by suit on the judgment or in any other manner
provided by law.  The parties hereto further waive any objection to venue in the
State  of  New York and any objection to an action or proceeding in the State of
New  York  on  the  basis  of  forum  non  conveniens.

(i)     EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY
TRAIL  OF  ANY  CLAIM  OR  CAUSE  OF  ACTION  BASED  UPON OR ARISING OUT OF THIS
AGREEMENT.  THE  SCOPE  OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY
DISPUTES  THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF
THIS  AGREEMENT,  INCLUDING  WITHOUT  LIMITATION  CONTRACT  CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY
HERETO  ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO
ENTER  INTO  A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY
ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
REPRESENTS  THAT  IT  HAS  REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
SUCH  PARTY  HAS  KNOWINGLY  AND  VOLUNTARILY  WAIVES ITS RIGHTS TO A JURY TRIAL
FOLLOWING  SUCH  CONSULTATION.  THIS  WAIVER  IS  IRREVOCABLE,  MEANING  THAT,
NOTWITHSTANDING  ANYTHING  HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER
ORALLY  OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS  AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.  IN THE EVENT OF A
LITIGATION,  THIS  AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

(j)     This  Agreement  may  be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and, all of which taken
together  shall  constitute  one  and the same Agreement.  In the event that any
signature  is delivered by facsimile transmission, such signature shall create a
valid  binding  obligation  of  the  party  executing  (or  on whose behalf such
signature  is  executed)  the  same  with  the  same force and effect as if such
facsimile  signature  were  the  original  thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>
     IN  WITNESS WHEREOF, the parties hereto have caused this Security Agreement
to  be  duly  executed  on  the  day  and  year  first  above  written.

TORBAY  HOLDINGS,  INC.
By:  _____________________________________
William  Thomas  Large
President  and  Chief  Executive  Officer

     AJW  PARTNERS,  LLC
By:  SMS  Group,  LLC
By:  _____________________________________
Corey  S.  Ribotsky
Manager

NEW  MILLENNIUM  CAPITAL  PARTNERS  II,  LLC
By:  First  Street  Manager  II,  LLC
By:  _____________________________________
Corey  S.  Ribotsky
Manager

AJW/NEW  MILLENNIUM  OFFSHORE,  LTD.
By:  First  Street  Manager  II,  LLC
By:  _____________________________________
Corey  S.  Ribotsky
Manager

PEGASUS  CAPITAL  PARTNERS,  LLC
By:  Pegasus  Manager,  LLC

By:  _____________________________________
Corey  S.  Ribotsky
Manager

<PAGE>

                                   SCHEDULE A
                                   ----------
Principal  Place  of  Business  of  the  Company:
-------------------------------------------------

Locations  Where  Collateral  is  Located  or  Stored:
------------------------------------------------------

List  of  Subsidiaries  of  the  Company:
-----------------------------------------

<PAGE>
                                   SCHEDULE B
                                   ----------
Jurisdictions:
-------------EXHIBIT 10.10
REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (this "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
(the  "COMPANY"),  and  each  of the undersigned (together with their respective
affiliates  and  any  assignee  or  transferee of all of their respective rights
hereunder,  the  "INITIAL  INVESTORS").

WHEREAS:

   A.  In  connection  with  the  Securities Purchase Agreement by and among the
parties  hereto of even date herewith (the "SECURITIES PURCHASE AGREEMENT"), the
Company  has  agreed,  upon  the  terms  and subject to the conditions contained
therein,  to  issue and sell to the Initial Investors (i) convertible debentures
in  the  aggregate  principal  amount  of  up  to  Five Hundred Thousand Dollars
($500,000)  (the "DEBENTURES") that are convertible into shares of the Company's
common stock (the "COMMON STOCK"), upon the terms and subject to the limitations
and  conditions  set  forth  in  such  Debentures  and  (ii)  warrants (the
"WARRANTS")  to  acquire  an aggregate of 1,500,000 shares of Common Stock, upon
the terms and conditions and subject to the limitations and conditions set forth
in  the  Warrants  dated  May  15,  2002;  and

   B. To  induce  the  Initial  Investors to execute and deliver the Securities
Purchase  Agreement,  the  Company  has  agreed  to provide certain registration
rights  under  the  Securities  Act  of  1933,  as  amended,  and  the rules and
regulations  thereunder,  or  any  similar  successor statute (collectively, the
"1933  ACT"),  and  applicable  state  securities  laws;

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
contained  herein  and  other  good  and valuable consideration, the receipt and
sufficiency  of  which  are  hereby  acknowledged,  the  Company and each of the
Initial  Investors  hereby  agree  as  follows:

1.   DEFINITIONS.
     -----------

          A.   As used in this Agreement, the following terms shall have the
               following meanings:

               (i) "INVESTORS" means the Initial Investors and any transferee or
          assignee who agrees to become bound by the provisions of this
          Agreement in accordance with Section 9 hereof.

               (ii) "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
          registration effected by preparing and filing a Registration Statement
          or Statements in compliance with the 1933 Act and pursuant to Rule 415
          under the 1933 Act or any successor rule providing for offering
          securities on a continuous basis ("RULE 415"), and the declaration or
          ordering of effectiveness of such Registration Statement by the United
          States Securities and Exchange Commission (the "SEC").

               (iii) "REGISTRABLE SECURITIES" means the Conversion Shares issued
          or issuable upon conversion or otherwise pursuant to the Debentures
          and Additional Debentures (as

<PAGE>

          defined  in  the  Securities  Purchase  Agreement)  including, without
          limitation,  Damages  Shares  (as defined in the Debentures) issued or
          issuable  pursuant to the Debentures, shares of Common Stock issued or
          issuable  in  payment  of  the  Standard Liquidated Damages Amount (as
          defined  in  the  Securities  Purchase  Agreement),  shares  issued or
          issuable  in respect of interest or in redemption of the Debentures in
          accordance  with  the terms thereof) and Warrant Shares issuable, upon
          exercise or otherwise pursuant to the Warrants and Additional Warrants
          (as  defined  in the Securities Purchase Agreement), and any shares of
          capital  stock  issued or issuable as a dividend on or in exchange for
          or  otherwise  with  respect  to  any  of  the  foregoing.

               (iv) "REGISTRATION STATEMENT" means a registration statement of
          the Company under the 1933 Act.

          b. Capitalized terms used herein and not otherwise defined herein
          shall have the respective meanings set forth in the Securities
          Purchase Agreement or the Convertible Debenture.

2.     REGISTRATION.
       ------------
               a.  MANDATORY REGISTRATION. The Company shall prepare, and, on or
          prior  to thirty (30) days from the date of Closing (as defined in the
          Securities  Purchase Agreement) (the "FILING DATE"), file with the SEC
          a  Registration  Statement  on  Form  S-3 (or, if Form S-3 is not then
          available, on such form of Registration Statement as is then available
          to effect a registration of the Registrable Securities, subject to the
          consent  of  the  Initial  Investors,  which  consent  will  not  be
          unreasonably  withheld)  covering  the  resale  of  the  Registrable
          Securities  underlying  the Debentures and Warrants issued or issuable
          pursuant  to  the  Securities  Purchase  Agreement, which Registration
          Statement,  to  the  extent allowable under the 1933 Act and the rules
          and  regulations  promulgated  thereunder  (including Rule 416), shall
          state  that such Registration Statement also covers such indeterminate
          number  of  additional  shares  of Common Stock as may become issuable
          upon  conversion  of  or  otherwise  pursuant  to  the  Debentures and
          exercise  of  the  Warrants  to  prevent dilution resulting from stock
          splits,  stock dividends or similar transactions. The number of shares
          of  Common  Stock  initially  included  in such Registration Statement
          shall  be no less than an amount equal to two (2) times the sum of the
          number  of Conversion Shares that are then issuable upon conversion of
          the  Debentures  and  Additional  Debentures  (based  on  the Variable
          Conversion  Price as would then be in effect and assuming the Variable
          Conversion Price is the Conversion Price at such time), and the number
          of  Warrant  Shares  that  are  then  issuable  upon  exercise  of the
          Warrants,  without  regard to any limitation on the Investor's ability
          to  convert  the  Debentures  or  exercise  the  Warrants. The Company
          acknowledges  that  the  number  of  shares  initially included in the
          Registration Statement represents a good faith estimate of the maximum
          number  of  shares issuable upon conversion of the Debentures and upon
          exercise  of  the  Warrants.

               b.  UNDERWRITTEN  OFFERING.  If  any  offering  pursuant  to  a
          Registration  Statement  pursuant  to  Section 2(a) hereof involves an
          underwritten  offering,  the  Investors  who  hold  a majority in
          interest  of  the  Registrable Securities subject to such underwritten
          offering,  with  the  consent of a majority-in-interest of the Initial
          Investors,  shall  have  the  right to select one legal counsel and an
          investment banker or bankers and manager or managers to administer the

<PAGE>
          offering,  which  investment  banker or bankers or manager or managers
          shall  be  reasonably  satisfactory  to  the  Company.

               c.  PAYMENTS  BY  THE  COMPANY.  The  Company  shall use its best
          efforts  to obtain effectiveness of the Registration Statement as soon
          as  practicable.  If  (i)  the  Registration Statement(s) covering the
          Registrable Securities required to be filed by the Company pursuant to
          Section  2(a)  hereof  is  not  filed  by  the Filing Date or declared
          effective  by the SEC on or prior to ninety (90) days from the date of
          Closing,  or  (ii)  after the Registration Statement has been declared
          effective  by  the  SEC,  sales  of  all of the Registrable Securities
          cannot  be  made  pursuant to the Registration Statement, or (iii) the
          Common  Stock  is  not  listed or included for quotation on the Nasdaq
          National  Market  ("NASDAQ"),  the  Nasdaq  SmallCap  Market  ("NASDAQ
          SMALLCAP"),  the  New York Stock Exchange (the "NYSE") or the American
          Stock  Exchange  (the  "AMEX")  after  being so listed or included for
          quotation,  or  (iv)  the  Common  Stock  ceases  to  be traded on the
          Over-the-Counter Bulletin Board (the "OTCBB") prior to being listed or
          included  for quotation on one of the aforementioned markets, then the
          Company  will  make  payments  to the Investors in such amounts and at
          such  times  as  shall  be determined pursuant to this Section 2(c) as
          partial  relief for the damages to the Investors by reason of any such
          delay  in  or  reduction  of  their  ability  to  sell the Registrable
          Securities  (which remedy shall not be exclusive of any other remedies
          available  at  law or in equity). The Company shall pay to each holder
          of  the  Debentures  or  Registrable Securities an amount equal to the
          then  outstanding principal amount of the Debentures (and, in the case
          of  holders  of  Registrable  Securities,  the  principal  amount  of
          Debentures  from  which  such  Registrable  Securities were converted)
          ("OUTSTANDING  PRINCIPAL  AMOUNT"),  multiplied  by  the  Applicable
          Percentage  (as  defined  below)  times  the sum of: (i) the number of
          months  (prorated for partial months) after the Filing Date or the end
          of the aforementioned ninety (90) day period and prior to the date the
          Registration  Statement  is  declared  effective by the SEC, provided,
          however,  that  there  shall  be  excluded from such period any delays
          which  are solely attributable to changes required by the Investors in
          the Registration Statement with respect to information relating to the
          Investors,  including,  without  limitation,  changes  to  the plan of
          distribution,  or  to  the  failure  of the Investors to conduct their
          review of the Registration Statement pursuant to Section 3(h) below in
          a  reasonably  prompt  manner; (ii) the number of months (prorated for
          partial months) that sales of all of the Registrable Securities cannot
          be  made pursuant to the Registration Statement after the Registration
          Statement  has been declared effective (including, without limitation,
          when  sales  cannot  be  made  by  reason  of the Company's failure to
          properly  supplement  or  amend  the  prospectus  included  therein in
          accordance  with  the  terms of this Agreement, but excluding any days
          during  an  Allowed  Delay (as defined in Section 3(f)); and (iii) the
          number  of  months (prorated for partial months) that the Common Stock
          is  not  listed or included for quotation on the OTCBB, Nasdaq, Nasdaq
          SmallCap,  NYSE  or  AMEX  or that trading thereon is halted after the
          Registration  Statement  has  been  declared  effective.  The  term
          "APPLICABLE  PERCENTAGE"  means two hundredths (.02). (For example, if
          the  Registration  Statement becomes effective one (1) month after the
          end  of  such thirty-day period, the Company would pay $5,000 for each
          $250,000  of  Outstanding Principal Amount. If thereafter, sales could
          not  be  made pursuant to the Registration Statement for an additional
          period  of  one  (1) month, the Company would pay an additional $5,000
          for each $250,000 of Outstanding Principal Amount.) Such amounts shall
          be  paid  in  cash  or, at each Investor's option, in shares of Common
          Stock priced at the Conversion Price (as defined in the Debentures) on
          such  payment  date.
<PAGE>
               d. PIGGY-BACK REGISTRATIONS. Subject to the last sentence of this
          Section  2(d),  if  at  any  time  prior  to  the  expiration  of  the
          Registration  Period  (as  hereinafter  defined)  the  Company  shall
          determine to file with the SEC a Registration Statement relating to an
          offering  for  its own account or the account of others under the 1933
          Act  of  any  of its equity securities (other than on Form S-4 or Form
          S-8  or  their  then  equivalents  relating to equity securities to be
          issued  solely  in  connection  with  any acquisition of any entity or
          business or equity securities issuable in connection with stock option
          or  other  employee  benefit  plans),  the  Company shall send to each
          Investor  who  is  entitled  to registration rights under this Section
          2(d)  written notice of such determination and, if within fifteen (15)
          days  after  the effective date of such notice, such Investor shall so
          request  in  writing,  the  Company shall include in such Registration
          Statement  all or any part of the Registrable Securities such Investor
          requests  to  be  registered,  except  that if, in connection with any
          underwritten  public  offering  for  the  account  of  the Company the
          managing  underwriter(s)  thereof  shall  impose  a  limitation on the
          number  of  shares  of  Common  Stock  which  may  be  included in the
          Registration  Statement  because,  in  such  underwriter(s)' judgment,
          marketing  or  other  factors  dictate such limitation is necessary to
          facilitate public distribution, then the Company shall be obligated to
          include  in  such  Registration Statement only such limited portion of
          the  Registrable  Securities  with  respect to which such Investor has
          requested  inclusion  hereunder  as  the underwriter shall permit. Any
          exclusion  of  Registrable Securities shall be made pro rata among the
          Investors  seeking  to include Registrable Securities in proportion to
          the  number  of  Registrable  Securities sought to be included by such
          Investors;  provided,  however, that the Company shall not exclude any
          Registrable  Securities  unless  the  Company  has  first excluded all
          outstanding  securities,  the  holders  of  which  are not entitled to
          inclusion of such securities in such Registration Statement or are not
          entitled  to  pro  rata inclusion with the Registrable Securities; and
          provided,  further,  however,  that,  after  giving  effect  to  the
          immediately preceding proviso, any exclusion of Registrable Securities
          shall  be  made  pro  rata with holders of other securities having the
          right to include such securities in the - Registration Statement other
          than  holders  of securities entitled to inclusion of their securities
          in  such  Registration  Statement  by  reason  of  demand registration
          rights.  No right to registration of Registrable Securities under this
          Section  2(d)  shall  be  construed to limit any registration required
          under  Section 2(a) hereof. If an offering in connection with which an
          Investor  is  entitled  to  registration under this Section 2(d) is an
          underwritten offering, then each Investor whose Registrable Securities
          are  included  in  such Registration Statement shall, unless otherwise
          agreed  by  the Company, offer and sell such Registrable Securities in
          an  underwritten  offering  using the same underwriter or underwriters
          and,  subject  to  the provisions of this Agreement, on the same terms
          and  conditions  as  other  shares  of  Common  Stock included in such
          underwritten  offering.  Notwithstanding  anything to the contrary set
          forth  herein,  the  registration  rights of the Investors pursuant to
          this  Section  2(d)  shall  only be available in the event the Company
          fails  to  timely file, obtain effectiveness or maintain effectiveness
          of  any Registration Statement to be filed pursuant to Section 2(a) in
          accordance  with  the  terms  of  this  Agreement.

             e.  ELIGIBILITY FOR FORM S-3, SB-2 OR S-1: CONVERSION TO FORM S-3.
          The Company represents and warrants that it meets the requirements for
          the  use of Form S-3, ---- SB-2 or S-1 for registration of the sale by
          the  Initial  Investors  and  any  other  Investors of the Registrable
          Securities.  The  Company  agrees  to  file all reports required to be
          filed  by  the Company with the SEC in a timely manner so as to remain
          eligible  or  become  eligible,  as the case may be, and thereafter to
          maintain  its  eligibility, for the use of Form S-3. If the Company is
          not  currently  eligible  to  use  Form  S-3,  not later than five (5)
          business  days  after  the  Company  first  meets  the
<PAGE>
          registration  eligibility  and transaction requirements for the use of
          Form  S-3  (or  any  successor form) for registration of the offer and
          sale  by  the Initial Investors and any other Investors of Registrable
          Securities,  the  Company  shall file a Registration Statement on Form
          S-3  (or  such  successor  form)  with  respect  to  the  Registrable
          Securities  covered by the Registration Statement on Form SB-2 or Form
          S-1,  whichever  is  applicable,  filed  pursuant to Section 2(a) (and
          include  in  such  Registration  Statement on Form S-3 the information
          required  by  Rule 429 under the 1933 Act) or convert the Registration
          Statement  on  Form  SB-2  or Form S-1, whichever is applicable, filed
          pursuant  to Section 2(a) to a Form S-3 pursuant to Rule 429 under the
          1933  Act and cause such Registration Statement (or such amendment) to
          be declared effective no later than forty-five (45) days after filing.
          In  the  event  of  a  breach by the Company of the provisions of this
          Section  2(e),  the Company will be required to make payments pursuant
          to  Section  2(c)  hereof.

3. OBLIGATIONS OF THE COMPANY.
   --------------------------
     In  connection  with  the  registration  of the Registrable Securities, the
Company  shall  have  the  following  obligations:

                    a. The Company shall prepare promptly, and file with the SEC
               not later than the Filing Date, a Registration Statement with
               respect to the number of Registrable Securities provided in
               Section 2(a), and thereafter use its best efforts to cause such
               Registration Statement relating to Registrable Securities to
               become effective as soon as possible after such filing but in no
               event later than ninety (90) days from the date of Closing), and
               keep the Registration Statement effective pursuant to Rule 415 at
               all times until such date as is the earlier of (i) the date on
               which all of the Registrable Securities have been sold and (ii)
               the date on which the Registrable Securities (in the opinion of
               counsel to the Initial Investors) may be immediately sold to the
               public without registration or restriction (including without
               limitation as to volume by each holder thereof) under the 1933
               Act (the "REGISTRATION PERIOD"), which Registration Statement
               (including any amendments or supplements thereto and prospectuses
               contained therein) shall not contain any untrue statement of a
               material fact or omit to state a material fact required to be
               stated therein, or necessary to make the statements therein not
               misleading.

                    b. The Company shall prepare and file with the SEC such
               amendments (including post-effective amendments) and supplements
               to the Registration Statements and the prospectus used in
               connection with the Registration Statements as may be necessary
               to keep the Registration Statements effective at all times during
               the Registration Period, and, during such period, comply with the
               provisions of the 1933 Act with respect to the disposition of all
               Registrable Securities of the Company covered by the Registration
               Statements until such time as all of such Registrable Securities
               have been disposed of in accordance with the intended methods of
               disposition by the seller or sellers thereof as set forth in the
               Registration Statements. In the event the number of shares
               available under a Registration Statement filed pursuant to this
               Agreement is insufficient to cover all of the Registrable
               Securities issued or issuable upon conversion of the Debentures
               and exercise of the Warrants, the Company shall amend the
               Registration Statement, or file a new Registration Statement (on
               the short form available therefor, if applicable), or both, so as
               to cover all of the Registrable Securities, in each case, as soon
               as practicable, but in any event within fifteen (15) days after
               the necessity therefor arises (based on the market price of the
               Common Stock and other relevant factors on which the Company
               reasonably elects to rely). The Company shall use its best
               efforts to cause such

<PAGE>
               amendment  and/or  new  Registration  Statement  to  become
               effective  as  soon  as practicable following the filing thereof,
               but  in any event within thirty (30) days after the date on which
               the  Company  reasonably  first  determines (or reasonably should
               have  determined)  the  need  therefor. The provisions of Section
               2(c)  above  shall be applicable with respect to such obligation,
               with  the  ninety  (90)  days  running  from  the day the Company
               reasonably  first  determines  (or  reasonably  should  have
               determined)  the  need  therefor.

                    c.  The  Company  shall  furnish  to  each  Investor  whose
               Registrable  Securities  are included in a Registration Statement
               and its legal counsel (i) promptly (but in no event more than two
               (2)  business  days)  after  the  same  is  prepared and publicly
               distributed,  filed with the SEC, or received by the Company, one
               copy  of  each  Registration Statement and any amendment thereto,
               each  preliminary prospectus and prospectus and each amendment or
               supplement  thereto,  and,  in  the  case  of  the  Registration
               Statement  referred to in Section 2(a), each letter written by or
               on  behalf of the Company to the SEC or the staff of the SEC, and
               each item of correspondence from the SEC or the staff of the SEC,
               in  each case relating to such Registration Statement (other than
               any  portion  of any thereof which contains information for which
               the Company has sought confidential treatment), and (ii) promptly
               (but  in  no  event  more  than  two (2) business days) after the
               Registration  Statement  is  declared  effective by the SEC, such
               number  of  copies  of  a  prospectus,  including  a  preliminary
               prospectus,  and  all amendments and supplements thereto and such
               other  documents as such Investor may reasonably request in order
               to facilitate the disposition of the Registrable Securities owned
               by  such  Investor.  The  Company  will  immediately  notify each
               Investor  by  facsimile of the effectiveness of each Registration
               Statement  or  any  post-effective  amendment.  The  Company will
               promptly  (but  in  no  event  more  than five (5) business days)
               respond  to  any  and  all  comments received from the SEC (which
               comments  shall  promptly be made available to the Investors upon
               request), with a view towards causing each Registration Statement
               or  any  amendment thereto to be declared effective by the SEC as
               soon  as practicable, shall promptly file an acceleration request
               as  soon  as  practicable  (but  in  no  event  more than two (2)
               business  days)  following the resolution or clearance of all SEC
               comments  or,  if  applicable,  following notification by the SEC
               that  any  such  Registration  Statement or any amendment thereto
               will  not  be  subject to review and shall promptly file with the
               SEC  a  final  prospectus as soon as practicable (but in no event
               more than two (2) business days) following receipt by the Company
               from  the  SEC  of  an order declaring the Registration Statement
               effective.  In  the  event  of  a  breach  by  the Company of the
               provisions  of this Section 3(c), the Company will be required to
               make  payments pursuant to Section 2(c) hereof. The Company shall
               use  reasonable  efforts  to  (i)  register  and  qualify  the
               Registrable  Securities  covered  by  the Registration Statements
               under  such  other  securities  or  "blue  sky"  laws  of  such
               jurisdictions  in  the  United States as the Investors who hold a
               majority  in interest of the Registrable Securities being offered
               reasonably  request, (ii) prepare and file in those jurisdictions
               such  amendments  (including  post-effective  amendments)  and
               supplements  to  such  registrations and qualifications as may be
               necessary  to  maintain  the  effectiveness  thereof  during  the
               Registration  Period,  (iii)  take  such  other actions as may be
               necessary  to  maintain  such registrations and qualifications in
               effect at all times during the Registration Period, and (iv) take
               all  other  actions  reasonably necessary or advisable to qualify
               the  Registrable  Securities  for  sale  in  such  jurisdictions;
               provided,  however,  that  the  Company  shall not be required in
               connection  therewith or as a condition thereto to (a) qualify to
               do  business  in any jurisdiction where it would not otherwise be
               required to qualify but for this Section 3(d), (b) subject itself
               to  general  taxation

<PAGE>

               in  any  such  jurisdiction,  (c)  file a general consent to
               service  of  process  in  any  such jurisdiction, (d) provide any
               undertakings  that  cause the Company undue expense or burden, or
               (e)  make any change in its charter or bylaws, which in each case
               the  Board  of Directors of the Company determines to be contrary
               to  the  best  interests  of  the  Company  and its stockholders.

                    e. In the event Investors who hold a majority-in-interest of
               the  Registrable  Securities  being offered in the offering (with
               the  approval of a majority-in-interest of the Initial Investors)
               select  underwriters  for  the  offering, the Company shall enter
               into and perform its obligations under an underwriting agreement,
               in  usual  and  customary  form,  including,  without limitation,
               customary  indemnification and contribution obligations, with the
               underwriters  of  such  offering.

                    f.  As  promptly as practicable after becoming aware of such
               event, the Company shall notify each Investor of the happening of
               any  event,  of  which  the Company has knowledge, as a result of
               which  the  prospectus included in any Registration Statement, as
               then  in  effect, includes an untrue statement of a material fact
               or  omission  to  state  a  material  fact  required to be stated
               therein  or  necessary  to  make  the  statements  therein  not
               misleading,  and  use  its  best  efforts  promptly  to prepare a
               supplement  or amendment to any Registration Statement to correct
               such  untrue  statement  or  omission, and deliver such number of
               copies  of  such supplement or amendment to each Investor as such
               Investor may reasonably request; provided that, for not more than
               ten  (10)  consecutive  trading days (or a total of not more than
               twenty  (20)  trading  days in any twelve (12) month period), the
               Company  may  delay  the  disclosure  of  material  non-public
               information  concerning  the  Company  (as  well as prospectus or
               Registration  Statement  updating) the disclosure of which at the
               time  is  not,  in  the good faith opinion of the Company, in the
               best  interests  of  the  Company (an "ALLOWED DELAY"); provided,
               further, that the Company shall promptly (i) notify the Investors
               in  writing  of  the  existence  of (but in no event, without the
               prior  written consent of an Investor, shall the Company disclose
               to  such  investor  any  of the facts or circumstances regarding)
               material  non-public  information giving rise to an Allowed Delay
               and (ii) advise the Investors in writing to cease all sales under
               such  Registration  Statement until the end of the Allowed Delay.
               Upon  expiration of the Allowed Delay, the Company shall again be
               bound  by the first sentence of this Section 3(f) with respect to
               the  information  giving  rise  thereto.

                    g.  The  Company  shall  use its best efforts to prevent the
               issuance  of  any stop order or other suspension of effectiveness
               of  any  Registration Statement, and, if such an order is issued,
               to  obtain  the withdrawal of such order at the earliest possible
               moment  and  to  notify  each  Investor  who  holds  Registrable
               Securities  being  sold  (or,  in  the  event  of an underwritten
               offering,  the  managing  underwriters)  of  the issuance of such
               order  and  the  resolution  thereof.

                    h.  The  Company  shall  permit  a  single  firm  of counsel
               designated  by  the Initial Investors to review such Registration
               Statement  and all amendments and supplements thereto (as well as
               all  requests  for  acceleration  or  effectiveness  thereof)  a
               reasonable period of time prior to their filing with the SEC, and
               not  file any document in a form to which such counsel reasonably
               objects  and  will  not request acceleration of such Registration
               Statement  without  prior notice to such counsel. The sections of
               such  Registration Statement covering information with respect to
               the  Investors, the Investor's beneficial ownership of securities
               of the Company or the Investors intended method of disposition of
               Registrable  Securities shall conform to the information provided
               to  the  Company  by  each  of  the  Investors.

<PAGE>

                    i.  The  Company  shall  make  generally  available  to  its
               security  holders  as  soon  as  practicable,  but not later than
               ninety  (90)  days after the close of the period covered thereby,
               an  earnings  statement (in form complying with the provisions of
               Rule  158  under  the  1933  Act)  covering a twelve-month period
               beginning  not  later  than the first day of the Company's fiscal
               quarter  next  following  the  effective date of the Registration
               Statement.

                    j.  At  the  request  of  any  Investor,  the  Company shall
               furnish, on the date that Registrable Securities are delivered to
               an  underwriter,  if  any,  for  sale  in  connection  with  any
               Registration  Statement or, if such securities are not being sold
               by  an  underwriter,  on the date of effectiveness thereof (i) an
               opinion,  dated  as  of  such date, from counsel representing the
               Company  for  purposes  of  such Registration Statement, in form,
               scope  and  substance  as is customarily given in an underwritten
               public  offering,  addressed to the underwriters, if any, and the
               Investors  and (ii) a letter, dated such date, from the Company's
               independent certified public accountants in form and substance as
               is  customarily given by independent certified public accountants
               to  underwriters in an underwritten public offering, addressed to
               the  underwriters,  if  any,  and  the  Investors.

                k.  The  Company  shall make available for inspection by (i) any
               Investor,  (ii)  any underwriter participating in any disposition
               pursuant to a Registration Statement, (iii) one firm of attorneys
               and  one  firm  of  accountants  or  other agents retained by the
               Initial  Investors,  (iv)  one  firm of attorneys and one firm of
               accountants  or other agents retained by all other Investors, and
               (v)  one  firm  of  attorneys  retained  by all such underwriters
               (collectively,  the  "INSPECTORS")  all  pertinent  financial and
               other  records,  and pertinent corporate documents and properties
               of  the  Company,  including  without  limitation,  records  of
               conversions  by other holders of convertible securities issued by
               the Company and the issuance of stock to such holders pursuant to
               the  conversions  (collectively,  the  "RECORDS"),  as  shall  be
               reasonably  deemed  necessary  by  each  Inspector to enable each
               Inspector to exercise its due diligence responsibility, and cause
               the  Company's  officers,  directors  and employees to supply all
               information  which  any  Inspector  may  reasonably  request  for
               purposes  of  such  due  diligence;  provided, however, that each
               Inspector  shall  hold  in  confidence  and  shall  not  make any
               disclosure  (except  to  an  Investor)  of  any  Record  or other
               information  which  the  Company  determines  in good faith to be
               confidential,  and  of  which determination the Inspectors are so
               notified,  unless (a) the disclosure of such Records is necessary
               to  avoid  or  correct  a  misstatement  or  omission  in  any
               Registration  Statement,  (b)  the  release  of  such  Records is
               ordered  pursuant  to  a  subpoena or other order from a court or
               government body of competent jurisdiction, or (c) the information
               in  such  Records has been made generally available to the public
               other  than  by  disclosure  in  violation  of  this or any other
               agreement.  The  Company  shall  not  be required to disclose any
               confidential  information  in such Records to any Inspector until
               and unless such Inspector shall have entered into confidentiality
               agreements  (in  form  and substance satisfactory to the Company)
               with  the Company with respect thereto, substantially in the form
               of  this  Section  3(k). Each Investor agrees that it shall, upon
               learning  that  disclosure  of  such Records is sought in or by a
               court  or  governmental body of competent jurisdiction or through
               other  means,  give  prompt  notice  to the Company and allow the
               Company,  at  its  expense,  to  undertake  appropriate action to
               prevent  disclosure  of, or to obtain a protective order for, the
               Records  deemed  confidential.  Nothing  herein  (or in any other
               confidentiality  agreement  between the Company and any Investor)
               shall  be  deemed  to  limit  the  Investor's  ability  to  sell
               Registrable  Securities in a manner which is otherwise consistent
               with  applicable  laws  and  regulations.
<PAGE>

                    l.  The  Company  shall  hold in confidence and not make any
               disclosure  of information concerning an Investor provided to the
               Company unless (i) disclosure of such information is necessary to
               comply with federal or state securities laws, (ii) the disclosure
               of  such  information  is  necessary  to  avoid  or  correct  a
               misstatement or omission in any Registration Statement, (iii) the
               release  of such information is ordered pursuant to a subpoena or
               other  order  from  a  court  or  governmental  body of competent
               jurisdiction,  or  (iv)  such information has been made generally
               available  to the public other than by disclosure in violation of
               this  or  any  other agreement. The Company agrees that it shall,
               upon  learning  that disclosure of such information concerning an
               Investor  is  sought  in  or  by  a court or governmental body of
               competent jurisdiction or through other means, give prompt notice
               to  such  Investor prior to making such disclosure, and allow the
               Investor,  at  its  expense,  to  undertake appropriate action to
               prevent  disclosure of, or to obtain a protective order for, such
               information.

                    m.  The  Company  shall  (i)  cause  all  the  Registrable
               Securities  covered by the Registration Statement to be listed on
               each national securities exchange on which securities of the same
               class or series issued by the Company are then listed, if any, if
               the  listing  of  such  Registrable  Securities is then permitted
               under  the  rules  of  such  exchange,  or (ii) to the extent the
               securities  of  the same class or series are not then listed on a
               national  securities  exchange,  secure  the  designation  and
               quotation,  of  all  the  Registrable  Securities  covered by the
               Registration  Statement on Nasdaq or, if not eligible for Nasdaq,
               on  Nasdaq  SmallCap  or,  if  not  eligible for Nasdaq or Nasdaq
               SmallCap,  on  the  OTCBB and, without limiting the generality of
               the  foregoing,  to  arrange  for  at  least two market makers to
               register  with  the  National  Association of Securities Dealers,
               Inc.  ("NASD")  as  such  with  respect  to  such  Registrable
               Securities.

                    n. The Company shall provide a transfer agent and registrar,
               which  may be a single entity, for the Registrable Securities not
               later  than  the  effective  date  of the Registration Statement.

                    o.  The  Company shall cooperate with the Investors who hold
               Registrable Securities being offered and the managing underwriter
               or underwriters, if any, to facilitate the timely preparation and
               delivery  of  certificates  (not bearing any restrictive legends)
               representing  Registrable  Securities to be offered pursuant to a
               Registration Statement and enable such certificates to be in such
               denominations  or  amounts,  as  the case may be, as the managing
               underwriter  or  underwriters,  if  any,  or  the  Investors  may
               reasonably  request  and registered in such names as the managing
               underwriter  or  underwriters,  if  any,  or  the  Investors  may
               request, and, within three (3) business days after a Registration
               Statement  which  includes  Registrable  Securities  is  ordered
               effective  by the SEC, the Company shall deliver, and shall cause
               legal counsel selected by the Company to deliver, to the transfer
               agent  for  the  Registrable  Securities  (with  copies  to  the
               Investors  whose  Registrable  Securities  are  included  in such
               Registration  Statement)  an  instruction  in  the  form attached
               hereto  as  EXHIBIT  1 and an opinion of such counsel in the form
               attached  hereto  as  EXHIBIT  2.

                    p.  At  the request of the holders of a majority-in-interest
               of the Registrable Securities, the Company shall prepare and file
               with  the  SEC  such  amendments  (including  post-effective
               amendments)  and  supplements to a Registration Statement and any
               prospectus  used in connection with the Registration Statement as
               may  be necessary in order to change the plan of distribution set
               forth  in  such  Registration  Statement.
<PAGE>
                    q.  From  and  after the date of this Agreement, the Company
               shall  not,  and  shall  not  agree  to, allow the holders of any
               securities  of  the Company to include any of their securities in
               any  Registration  Statement  under  Section  2(a)  hereof or any
               amendment or supplement thereto under Section 3(b) hereof without
               the  consent  of  the  holders  of  a majority-in-interest of the
               Registrable  Securities.

                    r.  The  Company  shall  take  all  other reasonable actions
               necessary to expedite and facilitate disposition by the Investors
               of  Registrable  Securities pursuant to a Registration Statement.

4.  OBLIGATIONS  OF  THE  INVESTORS.
    -------------------------------
     In  connection  with  the  registration  of the Registrable Securities, the
Investors  shall  have  the  following  obligations:

                    a.  It  shall be a condition precedent to the obligations of
               the  Company  to  complete  the  registration  pursuant  to  this
               Agreement  with  respect  to  the  Registrable  Securities  of  a
               particular  Investor  that  such  Investor  shall  furnish to the
               Company  such  information  regarding  itself,  the  Registrable
               Securities  held  by it and the intended method of disposition of
               the  Registrable  Securities  held  by  it as shall be reasonably
               required  to  effect  the  registration  of  such  Registrable
               Securities  and  shall  execute such documents in connection with
               such registration as the Company may reasonably request. At least
               three  (3)  business  days  prior to the first anticipated filing
               date of the Registration Statement, the Company shall notify each
               Investor  of  the information the Company requires from each such
               Investor.

                    b.  Each  Investor,  by  such  Investor's  acceptance of the
               Registrable  Securities,  agrees to cooperate with the Company as
               reasonably  requested  by  the  Company  in  connection  with the
               preparation  and filing of the Registration Statements hereunder,
               unless  such Investor has notified the Company in writing of such
               Investor's election to exclude all of such Investor's Registrable
               Securities  from  the  Registration  Statements.

                    c.  In the event Investors holding a majority-in-interest of
               the Registrable Securities being registered (with the approval of
               the  Initial  Investors)  determine  to engage the services of an
               underwriter,  each Investor agrees to enter into and perform such
               Investor's  obligations under an underwriting agreement, in usual
               and  customary  form,  including,  without  limitation, customary
               indemnification  and  contribution obligations, with the managing
               underwriter  of  such offering and take such other actions as are
               reasonably  required  in  order  to  expedite  or  facilitate the
               disposition  of  the Registrable Securities, unless such Investor
               has  notified  the Company in writing of such Investor's election
               to  exclude  all  of  such Investor's Registrable Securities from
               such  Registration  Statement.

                    d.  Each  Investor  agrees  that, upon receipt of any notice
               from  the  Company  of  the  happening  of  any event of the kind
               described in Section 3(f) or 3(g), such Investor will immediately
               discontinue disposition of Registrable Securities pursuant to the
               Registration Statement covering such Registrable Securities until
               such  Investor's  receipt  of  the  copies of the supplemented or
               amended  prospectus  contemplated by Section 3(f) or 3(g) and, if
               so  directed  by  the Company, such Investor shall deliver to the
               Company  (at  the  expense  of  the  Company)  or
<PAGE>
               destroy (and deliver to the Company a certificate of destruction)
               all  copies  in  such  Investor's  possession,  of the prospectus
               covering  such  Registrable  Securities  current  at  the time of
               receipt  of  such  notice.  B. No Investor may participate in any
               underwritten  registration  hereunder  unless  such  Investor (i)
               agrees  to  sell  such  Investor's  Registrable Securities on the
               basis  provided  in  any  underwriting  arrangements in usual and
               customary  form  entered  into by the Company, (ii) completes and
               executes  all  questionnaires,  powers  of attorney, indemnities,
               underwriting  agreements  and other documents reasonably required
               under  the  terms  of  such  underwriting arrangements, and (iii)
               agrees  to  pay  its pro rata share of all underwriting discounts
               and  commissions  and  any expenses in excess of those payable by
               the  Company  pursuant  to  Section  5  below.

5.     EXPENSES  OF  REGISTRATION.
       --------------------------
     All reasonable expenses, other than underwriting discounts and commissions,
incurred in connection with registrations, filings or qualifications pursuant to
Sections  2  and 3, including, without limitation, all registration, listing and
qualification  fees, printers and accounting fees, the fees and disbursements of
counsel  for  the  Company,  and  the  reasonable  fees and disbursements of one
counsel  selected  by  the  Initial Investors pursuant to Sections 2(b) and 3(h)
hereof  shall  be  borne  by  the  Company.

6.     INDEMNIFICATION.
       ---------------
     In  the  event  any  Registrable  Securities are included in a Registration
Statement  under  this  Agreement:

                    a.  To  the  extent  permitted  by  law,  the  Company  will
               indemnify,  hold  harmless and defend (i) each Investor who holds
               such  Registrable  Securities,  (ii)  the  directors,  officers,
               partners,  employees,  agents  and  each  person who controls any
               Investor  within  the  meaning  of the 1933 Act or the Securities
               Exchange  Act of 1934, as amended (the "1934 ACT"), if any, (iii)
               any  underwriter  (as defined in the 1933 Act) for the Investors,
               and  (iv)  the  directors, officers, partners, employees and each
               person  who  controls  any such underwriter within the meaning of
               the  1933  Act  or  the  1934  Act, if any (each, an "INDEMNIFIED
               PERSON"),  against  any joint or several losses, claims, damages,
               liabilities  or  expenses  (collectively,  together with actions,
               proceedings  or  inquiries  by  any regulatory or self-regulatory
               organization,  whether  commenced  or  threatened,  in  respect
               thereof,  "CLAIMS")  to  which  any  of  them  may become subject
               insofar  as  such  Claims arise out of or are based upon: (i) any
               untrue  statement  or alleged untrue statement of a material fact
               in  a  Registration Statement or the omission or alleged omission
               to  state  therein  a  material  fact  required  to  be stated or
               necessary to make the statements therein not misleading; (ii) any
               untrue  statement  or alleged untrue statement of a material fact
               contained  in  any  preliminary  prospectus  if used prior to the
               effective  date  of  such Registration Statement, or contained in
               the  final prospectus (as amended or supplemented, if the Company
               files  any  amendment thereof or supplement thereto with the SEC)
               or the omission or alleged omission to state therein any material
               fact  necessary  to make the statements made therein, in light of
               the  circumstances  under which the statements therein were made,
               not  misleading;  or  (iii) any violation or alleged violation by
               the  Company  of  the  1933  Act,  the  1934  Act, any other law,

<PAGE>
               including,  without  limitation, any state securities law, or any
               rule  or  regulation  thereunder relating to the offer or sale of
               the  Registrable Securities (the matters in the foregoing clauses
               (i)  through (iii) being, collectively, "VIOLATIONS"). Subject to
               the  restrictions  set  forth in Section 6(c) with respect to the
               number  of  legal  counsel,  the  Company  shall  reimburse  the
               Indemnified  Person,  promptly  as such expenses are incurred and
               are  due  and  payable,  for  any  reasonable legal fees or other
               reasonable  expenses  incurred  by  them  in  connection  with
               investigating  or  defending  any  such  Claim.  Notwithstanding
               anything  to  the  contrary contained herein, the indemnification
               agreement  contained in this Section 6(a): (i) shall not apply to
               a  Claim arising out of or based upon a Violation which occurs in
               reliance  upon  and  in  conformity with information furnished in
               writing  to  the Company by any Indemnified Person or underwriter
               for  such Indemnified Person expressly for use in connection with
               the  preparation  of  such  Registration  Statement  or  any such
               amendment  thereof  or supplement thereto, if such prospectus was
               timely  made  available  by  the Company pursuant to Section 3(c)
               hereof; (ii) shall not apply to amounts paid in settlement of any
               Claim  if  such  settlement is effected without the prior written
               consent  of  the Company, which consent shall not be unreasonably
               withheld;  and  (iii) with respect to any preliminary prospectus,
               shall  not  inure to the benefit of any Indemnified Person if the
               untrue  statement  or  omission of material fact contained in the
               preliminary  prospectus  was  corrected  on a timely basis in the
               prospectus,  as  then  amended  or  supplemented,  such corrected
               prospectus  was  timely made available by the Company pursuant to
               Section  3(c)  hereof,  and  the  Indemnified Person was promptly
               advised  in  writing not to use the incorrect prospectus prior to
               the  use  giving rise to a Violation and such Indemnified Person,
               notwithstanding such advice, used it. Such indemnity shall remain
               in  full force and effect regardless of any investigation made by
               or  on  behalf  of  the  Indemnified Person and shall survive the
               transfer  of the Registrable Securities by the Investors pursuant
               to  Section  9.

               b.  In  connection  with  any  Registration Statement in which an
               Investor  is  participating,  each such Investor agrees severally
               and  not  jointly  to indemnify, hold harmless and defend, to the
               same extent and in the same manner set forth in Section 6(a), the
               Company,  each  of  its directors, each of its officers who signs
               the Registration Statement, each person, if any, who controls the
               Company  within  the meaning of the 1933 Act or the 1934 Act, any
               underwriter and any other stockholder selling securities pursuant
               to the Registration Statement or any of its directors or officers
               or any person who controls such stockholder or underwriter within
               the  meaning  of  the  1933 Act or the 1934 Act (collectively and
               together  with  an  Indemnified  Person, an "INDEMNIFIED PARTY"),
               against  any Claim to which any of them may become subject, under
               the  1933  Act,  the 1934 Act or otherwise, insofar as such Claim
               arises out of or is based upon any Violation by such Investor, in
               each  case  to  the  extent  (and  only  to the extent) that such
               Violation  occurs in reliance upon and in conformity with written
               information  furnished  to the Company by such Investor expressly
               for  use  in  connection  with  such  Registration Statement; and
               subject to Section 6(c) such Investor will reimburse any legal or
               other  expenses  (promptly  as such expenses are incurred and are
               due  and  payable) reasonably incurred by them in connection with
               investigating  or  defending  any  such Claim; provided, however,
               that the indemnity agreement contained in this Section 6(b) shall
               not  apply  to  amounts  paid  in settlement of any Claim if such
               settlement  is effected without the prior written consent of such
               Investor,  which  consent  shall  not  be  unreasonably withheld;
               provided,  further,  however,  that  the Investor shall be liable
               under  this Agreement (including this Section 6(b) and Section 7)
               for  only that amount as does not exceed the net proceeds to such
               Investor  as  a  result  of  the  sale  of Registrable Securities
               pursuant  to  such  Registration  Statement. Such indemnity shall
               remain  in  full  force  and  effect  regardless  of  any
<PAGE>

               investigation  made by or on behalf of such Indemnified Party and
               shall  survive  the transfer of the Registrable Securities by the
               Investors  pursuant to Section 9. Notwithstanding anything to the
               contrary  contained  herein,  the  indemnification  agreement
               contained  in  this  Section 6(b) with respect to any preliminary
               prospectus  shall  not  inure  to  the benefit of any Indemnified
               Party  if  the  untrue  statement  or  omission  of material fact
               contained in the preliminary prospectus was corrected on a timely
               basis  in  the  prospectus,  as  then  amended  or  supplemented.

                   c.  Promptly  after  receipt  by  an  Indemnified  Person or
               Indemnified  Party  under  this  Section  6  of  notice  of  the
               commencement  of  any action (including any governmental action),
               such Indemnified Person or Indemnified Party shall, if a Claim in
               respect  thereof  is  to  be  made against any indemnifying party
               under this Section 6, deliver to the indemnifying party a written
               notice  of  the  commencement thereof, and the indemnifying party
               shall  have  the  right to participate in, and, to the extent the
               indemnifying  party  so  desires,  jointly  with  any  other
               indemnifying  party  similarly  noticed, to assume control of the
               defense  thereof  with  counsel  mutually  satisfactory  to  the
               indemnifying  party and the Indemnified Person or the Indemnified
               Party, as the case may be; provided, however, that an Indemnified
               Person  or  Indemnified  Party shall have the right to retain its
               own  counsel  with  the  fees  and  expenses  to  be  paid by the
               indemnifying  party,  if,  in  the  reasonable opinion of counsel
               retained  by  the  indemnifying party, the representation by such
               counsel  of  the  Indemnified Person or Indemnified Party and the
               indemnifying  party  would  be  inappropriate  due  to  actual or
               potential  differing interests between such Indemnified Person or
               Indemnified Party and any other party represented by such counsel
               in such proceeding. The indemnifying party shall pay for only one
               separate  legal  counsel  for  the  Indemnified  Persons  or  the
               Indemnified  Parties, as applicable, and such legal counsel shall
               be  selected  by  Investors holding a majority-in-interest of the
               Registrable  Securities included in the Registration Statement to
               which  the  Claim  relates  (with  the  approval  of  a
               majority-in-interest  of the Initial Investors), if the Investors
               are entitled to indemnification hereunder, or the Company, if the
               Company  is entitled to indemnification hereunder, as applicable.
               The  failure  to deliver written notice to the indemnifying party
               within  a  reasonable time of the commencement of any such action
               shall not relieve such indemnifying party of any liability to the
               Indemnified  Person  or  Indemnified  Party under this Section 6,
               except  to  the  extent  that  the indemnifying party is actually
               prejudiced  in  its  ability  to  defend  such  action.  The
               indemnification  required  by  this  Section  6  shall be made by
               periodic  payments of the amount thereof during the course of the
               investigation  or  defense,  as  such  expense,  loss,  damage or
               liability  is  incurred  and  is  due  and  payable.
<PAGE>

7.     CONTRIBUTION.
       ------------
     To the extent any indemnification by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6  to  the  fullest  extent  permitted  by  law;  provided, however, that (i) no
                                                  --------  -------
contribution  shall  be  made under circumstances where the maker would not have
been  liable  for indemnification under the fault standards set forth in Section
6,  (ii)  no  seller  of  Registrable  Securities  guilty  of  fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled  to  contribution from any seller of Registrable Securities who was not
guilty  of  such  fraudulent misrepresentation, and (iii) contribution (together
with  any  indemnification  or  other  obligations  under this Agreement) by any
seller of Registrable Securities shall be limited in amount to the net amount of
proceeds  received  by such seller from the sale of such Registrable Securities.

8.     REPORTS  UNDER  THE  1934  ACT.
       ------------------------------
     With  a  view to making available to the Investors the benefits of Rule 144
promulgated  under  the  1933 Act or any other similar rule or regulation of the
SEC  that may at any time permit the investors to sell securities of the Company
to  the  public  without  registration  ("RULE  144"),  the  Company  agrees to:

                    a.  make  and  keep  public  information available, as those
               terms  are  understood  and  defined  in  Rule  144;

                    b.  file  with  the  SEC  in a timely manner all reports and
               other  documents  required  of the Company under the 1933 Act and
               the  1934  Act  so  long  as  the Company remains subject to such
               requirements (it being understood that nothing herein shall limit
               the  Company's  obligations  under Section 4(c) of the Securities
               Purchase  Agreement)  and  the  filing  of such reports and other
               documents  is required for the applicable provisions of Rule 144;
               and
                    c.  furnish  to  each Investor so long as such Investor owns
               Registrable  Securities,  promptly  upon  request,  (i) a written
               statement  by the Company that it has complied with the reporting
               requirements  of  Rule 144, the 1933 Act and the 1934 Act, (ii) a
               copy of the most recent annual or quarterly report of the Company
               and such other reports and documents so filed by the Company, and
               (iii)  such  other  information as may be reasonably requested to
               permit the Investors to sell such securities pursuant to Rule 144
               without  registration.

9.     ASSIGNMENT  OF  REGISTRATION  RIGHTS.
       ------------------------------------

     The  rights  under  this Agreement shall be automatically assignable by the
Investors  to any transferee of all or any portion of Registrable Securities if:
(i)  the  Investor  agrees  in writing with the transferee or assignee to assign
such  rights,  and a copy of such agreement is furnished to the Company within a
reasonable  time after such assignment, (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name  and  address  of  such transferee or assignee, and (b) the securities with
respect  to  which  such  registration rights are being transferred or assigned,
(iii)  following  such  transfer  or assignment, the further disposition of such
securities  by  the  transferee or assignee is restricted under the 1933 Act and
applicable  state  securities  laws,  (iv)  at  or  before  the time the Company
receives  the
<PAGE>
     written notice contemplated by clause (ii) of this sentence, the transferee
or  assignee  agrees  in  writing  with  the  Company  to be bound by all of the
provisions  contained  herein,  (v)  such  transfer  shall  have  been  made  in
accordance  with  the  applicable  requirements  of  the  Securities  Purchase
Agreement,  and  (vi)  such transferee shall be an "ACCREDITED INVESTOR" as that
term  defined  in  Rule  501  of  Regulation  D  promulgated under the 1933 Act.

10.     AMENDMENT  OF  REGISTRATION  RIGHTS.
        -----------------------------------
     Provisions  of this Agreement may be amended and the observance thereof may
be waived (either generally or in a particular instance and either retroactively
or prospectively), only with written consent of the Company, each of the Initial
Investors  (to  the  extent  such  Initial  Investor  still  owns  Registrable
Securities)  and  Investors  who  hold  a  majority  interest of the Registrable
Securities.  Any amendment or waiver effected in accordance with this Section 10
shall  be  binding  upon  each  Investor  and  the  Company.

     11.  MISCELLANEOUS.
          -------------
                    a.  A  person  or  entity  is  deemed  to  be  a  holder  of
               Registrable  Securities  whenever  such  person or entity owns of
               record  such  Registrable  Securities.  If  the  Company receives
               conflicting  instructions,  notices or elections from two or more
               persons  or  entities  with  respect  to  the  same  Registrable
               Securities, the Company shall act upon the basis of instructions,
               notice  or  election  received  from the registered owner of such
               Registrable  Securities.

                    b.  Any  notices required or permitted to be given under the
               terms  hereof  shall  be  sent  by  certified  or registered mail
               (return  receipt requested) or delivered personally or by courier
               (including  a  recognized  overnight  delivery  service)  or  by
               facsimile  and shall be effective five days after being placed in
               the  mail,  if  mailed  by  regular  United  States mail, or upon
               receipt,  if  delivered  personally  or  by  courier (including a
               recognized  overnight  delivery service) or by facsimile, in each
               case  addressed to a party. The addresses for such communications
               shall  be:

                          If  to  the  Company:

                          Torbay  Holdings,  Inc.
                          4  Mulford  Place,  Suite  2G
                          Hempstead,  NY  11550
                          Attention:  Thomas  Large
                          Telephone:  516-292-2023
                          Facsimile:   509-472-4654
                          Email:  Thomas_Large@msn.com
<PAGE>

                          With  copy  to:
                          Seth  A.  Farbman,  PC
                          301  Eastwood  Road
                          Woodmere,  NY  11598
                          Telephone:  516-569-6084
                          Facsimile:   516-569-6089
                          Email:  zsfarbman@aol.com

If  to  an  Investor: to the address set forth immediately below such Investor's
name  on  the  signature pages to the Securities Purchase Agreement. With a copy
to:

                          Ballard  Spahr  Andrews  &  Ingersoll,  LLP
                          1735  Market  Street
                          51st  Floor
                          Philadelphia,  Pennsylvania  19103
                          Attention:  Gerald  J.  Guarcini,  Esq.
                          Telephone:  215-865-8625
                          Facsimile:  215-864-8999
                          Email:  guarcini@ballardspahr.com

                    c.  Failure  of  any  party  to exercise any right or remedy
               under  this  Agreement  or  otherwise,  or  delay  by  a party in
               exercising  such  right  or remedy, shall not operate as a waiver
               thereof.

                    d.  THIS  AGREEMENT  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 PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF
               THE  UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH
               RESPECT  TO  ANY  DISPUTE  ARISING  UNDER  THIS  AGREEMENT,  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 AGREEMENT SHALL BE
               RESPONSIBLE  FOR  ALL  FEES  AND
<PAGE>

               EXPENSES,  INCLUDING  ATTORNEYS' FEES, INCURRED BY THE PREVAILING
               PARTY  IN  CONNECTION  WITH  SUCH  DISPUTE.

                    e.  In  the  event  that  any provision of this Agreement is
               invalid  or unenforceable under any applicable statute or rule of
               law,  then  such  provision  shall  be  deemed inoperative to the
               extent  that  it  may  conflict  therewith  and  shall  be deemed
               modified  to  conform  with  such  statute  or  rule  of law. Any
               provision  hereof  which may prove invalid or unenforceable under
               any  law  shall  not affect the validity or enforceability of any
               other  provision  hereof.

                    f.  This Agreement, the Warrants and the Securities Purchase
               Agreement  (including  all  schedules  and  exhibits  thereto)
               constitute  the  entire  agreement  among the parties hereto with
               respect  to  the  subject matter hereof and thereof. There are no
               restrictions,  promises,  warranties  or undertakings, other than
               those set forth or referred to herein and therein. This Agreement
               and  the  Securities  Purchase  Agreement  supersede  all  prior
               agreements  and  understandings  among  the  parties  hereto with
               respect  to  the subject matter hereof and thereof.

                    g  Subject  to  the  requirements of Section 9 hereof, this
               Agreement  shall  be binding upon and inure to the benefit of the
               parties  and  their  successors  and  assigns.

                    h.  The  headings  in  this Agreement are for convenience of
               reference  only  and  shall  not  form  part  of,  or  affect the
               interpretation  of,  this  Agreement.

                    i.  This  Agreement  may  be  executed  in  two  or  more
               counterparts,  each  of which shall be deemed an original but all
               of  which  shall  constitute one and the same agreement and shall
               become effective when counterparts have been signed by each party
               and  delivered  to the other party. This Agreement, once executed
               by  a  party,  may  be  delivered  to  the  other party hereto by
               facsimile  transmission  of  a copy of this Agreement bearing the
               signature  of  the  party  so  delivering  this  Agreement.

                    j.  Each party shall do and perform, or cause to be done and
               performed,  all  such  further acts and things, and shall execute
               and  deliver all such other agreements, certificates, instruments
               and documents, as the other party may reasonably request in order
               to  carry  out  the  intent  and  accomplish the purposes of this
               Agreement  and  the consummation of the transactions contemplated
               hereby.

                    k.  Except  as  otherwise  provided herein, all consents and
               other determinations to be made by the Investors pursuant to this
               Agreement  shall  be  made by Investors holding a majority of the
               Registrable  Securities,  determined  as  if  the  all  of  the
               Debentures  then  outstanding  have  been  converted  into  for
               Registrable  Securities.

                    l.  The  Company  acknowledges  that  a  breach by it of its
               obligations  hereunder  will  cause  irreparable  harm  to  each
               Investor  by vitiating the intent and purpose of the transactions
               contemplated  hereby.  Accordingly, the Company acknowledges that
               the  remedy  at  law  for  breach  of  its obligations under this
               Agreement will be inadequate and agrees, in the event of a breach
               or  threatened  breach  by  the  Company of any of the provisions
               under  this  Agreement,  that each Investor shall be entitled, in
               addition to all other available remedies in 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  Agreement  and  to  enforce  specifically  the  terms  and
<PAGE>

               provisions hereof, without the necessity of showing economic loss
               and  without  any  bond  or  other  security  being  required.

                    m.  The language used in this Agreement will be deemed to be
               the  language  chosen  by  the  parties  to  express their mutual
               intent,  and  no  rules  of  strict  construction will be applied
               against  any  party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN  WITNESS WHEREOF, the Company and the undersigned Initial Investors have
caused  this  Agreement  to be duly executed as of the date first above written.

TORBAY  HOLDINGS,  INC.

______________________________________
William  Thomas  Large
President  and  Chief  Executive  Officer

AJW  PARTNERS,  LLC
By:  SMS  Group,  LLC
______________________________________
Corey  S.  Ribotsky
Manager

NEW  MILLENNIUM  CAPITAL  PARTNERS  II,  LLC
By:  First  Street  Manager  II,  LLC
______________________________________
Corey  S.  Ribotsky
Manager

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

______________________________________
Corey  S.  Ribotsky
Manager

PEGASUS  CAPITAL  PARTNERS,  LLC
By:  Pegasus  Manager,  LLC

____________________________________
Corey  S.  Ribotsky
Manager

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