Document:

EXHIBIT
      10.25 

    PROMISSORY
      NOTE 

    

    September
      26, 2005 

    

     
      

    
      	
               
                Vienna,
                Virginia 

            	
                
                $
                70,000 

            

    

     
      

    FOR
      VALUE RECEIVED ,
      the
      undersigned, ARIEL
      WAY, INC. ,
      a
      Florida corporation (the “ Company
      ”),
      promises to pay EVA
      DUNHEM (the
“
      Lender
      ”)
      at
      7901 Ariel Way, McLean, Virginia 22102 or other address as the Lender shall
      specify in writing, the principal sum of Seventy
      Thousand U.S. Dollars and 00/100 ($70,000) (the
“
      Principal
      Amount ”)
      and
      interest at the annual rate of twelve percent (12%) on the unpaid balance
      pursuant to the following terms: 

    

    1.
        
      Principal
      and Interest .
      The
      Principal Amount of this Promissory Note (this “Note”) was funded to the Company
      on May 17, 2005 (the “Funding Date”). 

    

    The
      Company hereby promises to pay to the order of the Lender in lawful money of
      the
      United States of American and in immediately available funds, the Principal
      Amount of Seventy Thousand Dollars ($70,000), together with interest on the
      unpaid principal of this Note on or before the twelve (12) month anniversary
      of
      the Funding Date which will be May 17, 2006. 

    

    2.
        
      Right
      of Prepayment .
      Notwithstanding the payment(s) pursuant to Section 1, the Company at its option
      shall have the right to prepay, with three (3) business days advance written
      notice, a portion or all outstanding principal plus outstanding Interest of
      this
      Note. 

    

    3.
        
      Warrants
      .
      The
      Company shall issue, on the date hereof, to the Lender, a warrant to purchase
      Two Hundred Thousand (200,000) shares of the Company’s Common Stock (the “
Warrant
      Shares ”)
      for a
      period of three (3) years at an exercise price per share pursuant to the terms
      noted on the form of Warrant attached hereto as Schedule I. The Warrant Shares
      shall have “piggy-back” and demand registration rights. 

    

    

    4.
        
      Waiver
      and Consent .
      To the
      fullest extent permitted by law and except as otherwise provided herein, the
      Company waives demand, presentment, protest, notice of dishonor, suit against
      or
      joinder of any other person, and all other requirements necessary to charge
      or
      hold the Company liable with respect to this Note. 

    

    5.
        
      Costs,
      Indemnities and Expenses .
      In the
      event of default as described herein, the Company agrees to pay all reasonable
      fees and costs incurred by the Lender in collecting or securing or attempting
      to
      collect or secure this Note, including reasonable attorneys’ fees and expenses,
      whether or not involving litigation, collecting upon any judgments and/or
      appellate or bankruptcy proceedings. The Company agrees to pay any documentary
      stamp taxes, intangible taxes or other taxes which may now or hereafter apply
      to
      this Note or any payment made in respect of this Note, and the Company agrees
      to
      indemnify and hold the Lender harmless from and against any liability, costs,
      attorneys’ fees, penalties, interest or expenses relating to any such taxes, as
      and when the same may be incurred. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.
        
      Event
      of Default .
      An “
Event
      of Default ”
shall
      be deemed to have occurred upon the occurrence of any of the following: (i)
      the
      Company should fail for any reason or for no reason to make any payment of
      the
      interest or principal pursuant to this Note within ten (10) days of the date
      due
      as prescribed herein; (ii) the Company shall fail to observe or perform any
      other covenant, agreement or warranty contained in, or otherwise commit any
      material breach or default of any material provision of this Note or any of
      the
      Transaction Documents (as defined herein), which is not cured within ten (10)
      days notice of the default; (iii) the Company or any subsidiary of the
      Company shall commence, or there shall be commenced against the Company or
      any
      subsidiary of the Company under any applicable bankruptcy or insolvency laws
      as
      now or hereafter in effect or any successor thereto, or the Company or any
      subsidiary of the Company commences any other proceeding under any
      reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
      insolvency or liquidation or similar law of any jurisdiction whether now or
      hereafter in effect relating to the Company or any subsidiary of the Company
      or
      there is commenced against the Company or any subsidiary of the Company any
      such
      bankruptcy, insolvency or other proceeding which remains undismissed for a
      period of 61 days; or the Company or any subsidiary of the Company is
      adjudicated insolvent or bankrupt; or any order of relief or other order
      approving any such case or proceeding is entered; or the Company or any
      subsidiary of the Company suffers any appointment of any custodian, private
      or
      court appointed receiver or the like for it or any substantial part of its
      property which continues undischarged or unstayed for a period of sixty one
      (61)
      days; or the Company or any subsidiary of the Company makes a general assignment
      for the benefit of creditors; or the Company or any subsidiary of the Company
      shall fail to pay, or shall state that it is unable to pay, or shall be unable
      to pay, its debts generally as they become due; or the Company or any subsidiary
      of the Company shall call a meeting of its creditors with a view to arranging
      a
      composition, adjustment or restructuring of its debts; or the Company or any
      subsidiary of the Company shall by any act or failure to act expressly indicate
      its consent to, approval of or acquiescence in any of the foregoing; or any
      corporate or other action is taken by the Company or any subsidiary of the
      Company for the purpose of effecting any of the foregoing; (iv) the Common
      Stock
      of the Company shall cease to be quoted for trading or listed for trading on
      the
      National Association of Securities Dealers Inc.’s Over the Counter Bulletin
      Board, Nasdaq SmallCap Market, New York Stock Exchange, American Stock Exchange
      or the Nasdaq National Market (each, a “ Subsequent
      Market ”)
      and
      shall not again be quoted or listed for trading thereon within five (5) Trading
      Days of such delisting; or (v) a breach by the Company of its obligations,
      or an
      event of default, under any of the Transaction Documents, or any other
      agreements entered into between the Company and the Lender which is not cured
      by
      any applicable cure period set forth therein. 

    Upon
      an
      Event of Default (as defined above), the entire principal balance and accrued
      interest outstanding under this Note, and all other obligations of the Company
      under this Note, shall be immediately due and payable without any action on
      the
      part of the Lender, interest shall accrue on the unpaid principal balance at
      twenty four percent (24%) or the highest rate permitted by applicable law,
      if
      lower, and the Lender shall be entitled to seek and institute any and all
      remedies available to it. 

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    7.
        
      Maximum
      Interest Rate .
      In no
      event shall any agreed to or actual interest charged, reserved or taken by
      the
      Lender as consideration for this Note exceed the limits imposed by Virginia
      law.
      In the event that the interest provisions of this Note shall result at any
      time
      or for any reason in an effective rate of interest that exceeds the maximum
      interest rate permitted by applicable law, then without further agreement or
      notice the obligation to be fulfilled shall be automatically reduced to such
      limit and all sums received by the Lender in excess of those lawfully
      collectible as interest shall be applied against the principal of this Note
      immediately upon the Lender’s receipt thereof, with the same force and effect as
      though the Company had specifically designated such extra sums to be so applied
      to principal and the Lender had agreed to accept such extra payment(s) as a
      premium-free prepayment or prepayments. 

    

    8.
        
      Issuance
      of Capital Stock .
      So long
      as any portion of this Note is outstanding, the Company shall not, without
      the
      prior written consent of the Lender, (i) issue or sell shares of common stock
      or
      preferred stock without consideration or for a consideration per share less
      than
      the bid price of the common stock determined immediately prior to its issuance,
      or (ii) issue any warrant, option, right, contract, call, or other security
      instrument granting the holder thereof, the right to acquire common stock
      without consideration or for a consideration less than such common stock’s bid
      price value determined immediately prior to it’s issuance. 

    

    9.
        
      Cancellation
      of Note .
      Upon
      the repayment by the Company of all of its obligations hereunder to the Lender,
      including, without limitation, the principal amount of this Note, plus accrued
      but unpaid interest, the indebtedness evidenced hereby shall be deemed canceled
      and paid in full. Except as otherwise required by law or by the provisions
      of
      this Note, payments received by the Lender hereunder shall be applied first
      against expenses and indemnities, next against interest accrued on this Note,
      and next in reduction of the outstanding principal balance of this Note.

    

    10.
        
      Severability
      .
      If
      any
      provision of this Note is, for any reason, invalid or unenforceable, the
      remaining provisions of this Note will nevertheless be valid and enforceable
      and
      will remain in full force and effect. Any provision of this Note that is held
      invalid or unenforceable by a court of competent jurisdiction will be deemed
      modified to the extent necessary to make it valid and enforceable and as so
      modified will remain in full force and effect. 

    

    11.
        
      Amendment
      and Waiver .
      This
      Note
      may be amended, or any provision of this Note may be waived, provided that
      any
      such amendment or waiver will be binding on a party hereto only if such
      amendment or waiver is set forth in a writing executed by the parties hereto.
      The waiver by any such party hereto of a breach of any provision of this Note
      shall not operate or be construed as a waiver of any other breach. 

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    12.
        
      Successors
      .
      Except
      as
      otherwise provided herein, this Note shall bind and inure to the benefit of
      and
      be enforceable by the parties hereto and their permitted successors and assigns.
      

    

    13.
        
      Assignment
      .
      This
      Note
      shall not be directly or indirectly assignable or delegable by the Company.
      The
      Lender may assign this Note as long as such assignment complies with the
      Securities Act of 1933, as amended. 

    

    14.
        
      No
      Strict Construction .
      The
      language used in this Note will be deemed to be the language chosen by the
      parties hereto to express their mutual intent, and no rule of strict
      construction will be applied against any party. 

    

    15.
        
      Further
      Assurances .
      Each
      party hereto will execute all documents and take such other actions as the
      other
      party may reasonably request in order to consummate the transactions provided
      for herein and to accomplish the purposes of this Note. 

    

    16.
        
      Notices,
      Consents, etc.   Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof must be in writing and will be deemed to have
      been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile (provided confirmation of transmission is mechanically or
      electronically generated and kept on file by the sending party); or (iii) one
      (1) trading day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be: 

    

    

    
      	
              If
                to Company: 

            	
              Ariel
                Way, Inc. 

            
	
               
                

            	
              8000
                Towers Crescent Drive 

              Suite
                1220 

            
	
               
                

            	
              Vienna,
                VA 22182 

            
	
               
                

            	
              Attention:
                 
                Chief
                Executive Officer 

            
	
               
                

            	
              Telephone:
                 
                (703)
                918-2420 

            
	
               
                

            	
              Facsimile:
                 
                (703)
                991-0841 

            
	
               
                

            	
               
                

            
	
              With
                a copy to: 

            	
              Kelley
                Drye & Warren, LLP 

            
	
               
                

            	
              8000
                Towers Crescent Drive 

              Suite
                1200 

            
	
               
                

            	
              Vienna,
                VA 22182 

            
	
               
                

            	
              Attention:
                 
                Jay
                Schifferli, Esq. 

            
	
               
                

            	
              Telephone:
                 
                (703)
                918-2394 

            
	
               
                

            	
              Facsimile:
                 
                (703)
                918-2450 

            
	
               
                

            	
               
                

            
	
              If
                to the Lender: 

            	
              Eva
                Dunhem 

            
	
               
                

            	
              7901
                Ariel Way 

            
	
               
                

            	
              McLean,
                VA 22102 

            
	
               
                

            	
              Telephone:
                (703) 847-0940 

            
	
               
                

            	
               
                

            

    

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) trading days prior to the effectiveness of such change.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, waiver or other communication, (B) mechanically or electronically
      generated by the sender's facsimile machine containing the time, date, recipient
      facsimile number and an image of the first page of such transmission or (C)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively. 

    

    17.
        
      Remedies,
      Other Obligations, Breaches and Injunctive Relief .
      The
      Lender’s remedies provided in this Note shall be cumulative and in addition to
      all other remedies available to the Lender under this Note, at law or in equity
      (including a decree of specific performance and/or other injunctive relief),
      no
      remedy of the Lender contained herein shall be deemed a waiver of compliance
      with the provisions giving rise to such remedy and nothing herein shall limit
      the Lender’s right to pursue actual damages for any failure by the Company to
      comply with the terms of this Note. No remedy conferred under this Note upon
      the
      Lender is intended to be exclusive of any other remedy available to the Lender,
      pursuant to the terms of this Note or otherwise. No single or partial exercise
      by the Lender of any right, power or remedy hereunder shall preclude any other
      or further exercise thereof. The failure of the Lender to exercise any right
      or
      remedy under this Note or otherwise, or delay in exercising such right or
      remedy, shall not operate as a waiver thereof. Every right and remedy of the
      Lender under any document executed in connection with this transaction may
      be
      exercised from time to time and as often as may be deemed expedient by the
      Lender. The Company acknowledges that a breach by it of its obligations
      hereunder will cause irreparable harm to the Lender and that the remedy at
      law
      for any such breach may be inadequate. The Company therefore agrees that, in
      the
      event of any such breach or threatened breach, the Lender shall be entitled,
      in
      addition to all other available remedies, to an injunction restraining any
      breach, and specific performance without the necessity of showing economic
      loss
      and without any bond or other security being required. 

    

    18.
        
      Governing
      Law; Jurisdiction .
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the Commonwealth
      of
      Virginia, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the Commonwealth of Virginia or any other
      jurisdictions) that would cause the application of the laws of any jurisdictions
      other than the Commonwealth of Virginia. Each party hereby irrevocably submits
      to the exclusive jurisdiction of the Superior Court of the Commonwealth of
      Virginia sitting in Richmond, Virginia and the United States Federal District
      Court for the District of Washington, D.C., for the adjudication of any dispute
      hereunder or in connection herewith or therewith, or with any transaction
      contemplated hereby or discussed herein, and hereby irrevocably waives, and
      agrees not to assert in any suit, action or proceeding, any claim that it is
      not
      personally subject to the jurisdiction of any such court, that such suit, action
      or proceeding is brought in an inconvenient forum or that the venue of such
      suit, action or proceeding is improper. Each party hereby irrevocably waives
      personal service of process and consents to process being served in any such
      suit, action or proceeding by mailing a copy thereof to such party at the
      address for such notices to it under this Agreement and agrees that such service
      shall constitute good and sufficient service of process and notice thereof.
      Nothing contained herein shall be deemed to limit in any way any right to serve
      process in any manner permitted by law. 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    19.
        
      No
      Inconsistent Agreements .
      None
      of
      the parties hereto will hereafter enter into any agreement, which is
      inconsistent with the rights granted to the parties in this Note.

    

    20.
        
      Third
      Parties .
      Nothing
      herein expressed or implied is intended or shall be construed to confer upon
      or
      give to any person or entity, other than the parties to this Note and their
      respective permitted successor and assigns, any rights or remedies under or
      by
      reason of this Note. 

    

    21.
        
      Waiver
      of Jury Trial .
      AS A MATERIAL INDUCEMENT FOR THE LENDER TO LOAN TO THE COMPANY THE MONIES
      HEREUNDER, THE COMPANY HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL
      PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND ALL OF THE OTHER
      DOCUMENTS ASSOCIATED WITH THIS TRANSACTION. 

    

    22.
        
      Entire
      Agreement .  This
      Note (including any recitals hereto) set forth the entire understanding of
      the
      parties with respect to the subject matter hereof, and shall not be modified
      or
      affected by any offer, proposal, statement or representation, oral or written,
      made by or for any party in connection with the negotiation of the terms hereof,
      and may be modified only by instruments signed by all of the parties hereto.
      

    

    

    

    

    [REMAINDER
      OF PAGE INTENTIONALY LEFT BLANK] 

    

    

    

     

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF ,
      this
      Promissory Note is executed by the undersigned as of the date hereof.

    

    

    
      	
               
                

            	
              EVA
                DUNHEM 

            
	
               
                

            	
               
                

            
	
               
                

            	
               
                

            
	
               
                

            	
              By:
                ______________________________ 

            
	
               
                

            	
              Name:
                Eva Dunhem 

            
	
               
                

            	
               
                

            
	
               
                

            	
               
                

            
	
               
                

            	
              ARIEL
                WAY, INC. 

            
	
               
                

            	
               
                

            
	
               
                

            	
              By:
                _____________________________ 

            
	
               
                

            	
              Name:
                Leif T. Carlsson 

            
	
               
                

            	
              Title:
                Director 

            

    

    

    
      
        
        

      

      7THIS
      WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
      THE SECURITIES LAWS OF APPLICABLE STATES. THESE SECURITIES ARE SUBJECT TO
      RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
      EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS,
      PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE
      THAT
      THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
      INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION
      OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
      ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
      STATE SECURITIES LAWS. 

     
      

    WARRANT
      TO PURCHASE COMMON STOCK 

     
      

    OF
      

     
      

    ARIEL
      WAY, INC. 

     
      

    Issued
      on
      September 26, 2005 (“ Issue
      Date ”)
      

    Void
      after September 25, 2015 (“ Expiration
      Date ”)
      

     
      

    This
      certifies that in consideration of the execution of that certain Promissory
      Note
      (the “ Promissory
      Note ”),
      dated
      as of September 26, 2005, as amended, by and between Ariel Way, Inc., a Florida
      corporation (the “ Company
      ”),
      with
      principal offices at 8000 Towers Crescent Drive, Suite 1220, Vienna, VA 22182,
      and Mrs. Eva Dunhem, an individual living at address 7901 Ariel Way, McLean,
      Virginia 22102 (“ Mrs.
      Dunhem ”)
      is
      entitled, subject to the terms and conditions of this Warrant, to purchase
      from
      the Company at any time during the Exercise Period (as defined below) and with
      vesting as defined below, up to Two Hundred Thousand (200,000) shares (the
“
Number
      of Warrant Shares ”)
      of
      Warrant Stock (as defined below) at a price per share equal to the Warrant
      Price
      (as defined below), upon surrender of this Warrant at the principal offices
      of
      the Company, together with a duly executed subscription form in the form
      attached hereto as Exhibit 1
      and
      simultaneous payment of the full Warrant Price for the shares of Warrant Stock
      so purchased in lawful money of the United States. The Warrant Price and the
      number and character of shares of Warrant Stock purchasable under this Warrant
      are subject to adjustment as provided herein. The shares underlying the warrants
      shall entitle the Warrant Holder to one-time “piggyback” registration rights.

     
      

    1.
        
      DEFINITIONS
      .
      The
      following definitions shall apply for purposes of this Warrant: 

     
      

    1.1
        
      “
      Company
      ”
means
      the “ Company
      ”
as
      defined above and includes any corporation which shall succeed to or assume
      the
      obligations of the Company under this Warrant. 

     
      

     
      

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     
      

    1.2
        
      “
      Exercise
      Period ”
means
      the period (A) commencing on the Issue Date and (B) ending at 5:00 p.m. Eastern
      Standard Time on the Expiration Date (as defined on the first page of this
      Warrant, and as subject to adjustment as provided herein). 

     
      

    1.3
        
      “
      SEC
      ”
means
      the U.S. Securities and Exchange Commission. 

     
      

    1.4
        
      “
      Warrant
      ”
means
      this Warrant and any warrant(s) delivered in substitution or exchange therefor,
      as provided herein. 

     
      

    1.5
        
      “
      Warrant
      Holder ”
means
      any person who shall at the time be the registered holder of this Warrant.
      

     
      

    1.6
        
      “
      Warrant
      Price ”
means
      $0.030 per share. The Warrant Price is subject to adjustment as provided herein.
      

     
      

    1.7
        
      “
      Warrant
      Stock ”
means
      the Common Stock of the Company, $0.001 par value per share. The number and
      character of shares of Warrant Stock are subject to adjustment as provided
      herein and the term “ Warrant
      Stock ”
shall
      include stock and other securities and property at any time receivable or
      issuable upon exercise of this Warrant in accordance with its terms.

     
      

    2.
        
      EXERCISE
      .
      

     
      

    2.1
        
      Method
      of Exercise .
      Subject
      to the terms and conditions of this Warrant, the Warrant Holder may exercise
      this Warrant in whole or in part, at any time or from time to time, on any
      business day during the Exercise Period, for up to that number of shares of
      Warrant Stock that has vested pursuant to Section 2.2 below by surrendering
      this
      Warrant at the principal offices of the Company, with the subscription form
      attached hereto duly executed by the Warrant Holder, and payment of an amount
      equal to the p roduct obtained by multiplying (i) the number of shares of
      Warrant Stock to be purchased by the Warrant Holder by (ii) the Warrant
      Price or adjusted Warrant Price therefor, if applicable, as determined in
      accordance with the terms hereof or cancellation of indebtedness of the Company
      to the Warrant Holder of the same equal amount at the option of the Warrant
      Holder. The Warrant Holder shall also have a “cash-less” exercise option such
      that exercising certain number of shares of Warrant Stock and the sales proceeds
      from the sale of such shares shall provide for the payment to the Company of
      an
      amount equal to the total warrant purchase price as defined above. 

     
      

    2.2
        
      Vesting
      and Exercisability of Warrant .
      This
      Warrant for Two Hundred Thousand (200,000) Warrant Shares will vest immediately
      .   

     
      

    2.3
        
      Form
      of Payment .
      Payment
      may be made by (i) a check payable to the Company’s order, (ii) wire
      transfer of funds to the Company, (iii) cancellation of indebtedness of the
      Company to the Warrant Holder, or (iv) any combination of the foregoing.

     
      

    2.4
        
      Partial
      Exercise .
       
      Upon
      a
      partial exercise of this Warrant, this Warrant shall be surrendered by the
      Warrant Holder and replaced with a new Warrant of like tenor in which the Number
      of Shares shall be reduced by the number of shares of Warrant Stock purchased
      upon such exercise. 

     
      

     
      

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     
      

    2.5
        
      No
      Fractional Shares .
      No
      fractional shares may be issued upon any exercise of this Warrant, and any
      fractions shall be rounded down to the nearest whole number of shares. If upon
      any exercise of this Warrant a fraction of a share results, the Company will
      pay
      the cash value of any such fractional share, calculated on the basis of the
      Warrant Price. 

     
      

    2.6
        
      Restrictions
      on Exercise .
      This
      Warrant may not be exercised if the issuance of the Warrant Stock upon such
      exercise would constitute a violation of any applicable federal or state
      securities laws or other laws or regulations. As a condition to the exercise
      of
      this Warrant, the Warrant Holder shall execute the subscription form attached
      hereto as Exhibit 1
      ,
      confirming and acknowledging that the representations and warranties of the
      Warrant Holder set forth in Section  5 are true and correct as of the date
      of exercise. 

     
      

    3.
        
      ISSUANCE
      OF STOCK .
      This
      Warrant shall be deemed to have been exercised immediately prior to the close
      of
      business on the date of its surrender for exercise as provided above, and the
      person entitled to receive the shares of Warrant Stock issuable upon such
      exercise shall be treated for all purposes as the holder of record of such
      shares as of the close of business on such date. As soon as practicable on
      or
      after such date, the Company shall issue and deliver to the person or persons
      entitled to receive the same a certificate or certificates for the number of
      whole shares of Warrant Stock issuable upon such exercise. 

     
      

    4.
        
      ADJUSTMENT
      PROVISIONS .
      The
      number and character of shares of Warrant Stock issuable upon exercise of this
      Warrant (or any shares of stock or other securities or property at the time
      receivable or issuable upon exercise of this Warrant) and the Warrant Price
      therefor, are subject to adjustment upon the occurrence of the following events
      between the date this Warrant is issued and the date it is exercised:

     
      

    4.1
        
      Adjustment
      for Stock Splits and Stock Dividends .
      The
      Warrant Price of this Warrant and the Number of Shares of Warrant Stock issuable
      upon exercise of this Warrant (or any shares of stock or other securities at
      the
      time issuable upon exercise of this Warrant) shall each be proportionally
      adjusted to reflect any stock dividend, stock split or reverse stock split,
      or
      other similar event affecting the number of outstanding shares of Warrant Stock
      (or such other stock or securities).   

     
      

    4.2
        
      Adjustment
      for Other Dividends and Distributions .
      In case
      the Company shall make or issue, or shall fix a record date for the
      determination of eligible holders entitled to receive, a dividend or other
      distribution payable respect to the Warrant Stock that is payable in
      (a) securities of the Company (other than issuances with respect to which
      adjustment is made under Sections  4.1 or 4.3 ) or (b) assets (other
      than cash dividends paid or payable solely out of retained earnings), then,
      and
      in each such case, the Warrant Holder, upon exercise of this Warrant at any
      time
      after the consummation, effective date or record date of such event, shall
      receive, in addition to the shares of Warrant Stock issuable upon such exercise
      prior to such date, the securities or such other assets of the Company to which
      the Warrant Holder would have been entitled upon such date if the Warrant Holder
      had exercised this Warrant immediately prior thereto (all subject to further
      adjustment as provided in this Warrant). 

     
      

     
      

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     
      

    4.3
        
      Adjustment
      for Reorganization, Consolidation, Merger .
      In case
      of any recapitalization or reorganization of the Company after the date of
      this
      Warrant, or in case, after such date, the Company shall consolidate with or
      merge into another corporation, then, and in each such case, the Warrant Holder,
      upon the exercise of this Warrant (as provided in Section  2 ), at any time
      after the consummation of such recapitalization, reorganization, consolidation
      or merger, shall be entitled to receive, in lieu of the stock or other
      securities and property receivable upon the exercise of this Warrant prior
      to
      such consummation, the stock or other securities or property to which the
      Warrant Holder would have been entitled upon the consummation of such
      recapitalization, reorganization, consolidation or merger if the Warrant Holder
      had exercised this Warrant immediately prior thereto, all subject to further
      adjustment as provided in this Warrant, and the successor or purchasing
      corporation in such reorganization, consolidation or merger (if other than
      the
      Company) shall duly execute and deliver to the Warrant Holder a supplement
      hereto acknowledging such corporation’s obligations under this Warrant; and in
      each such case, the terms of this Warrant shall be applicable to the shares
      of
      stock or other securities or property receivable upon the exercise of this
      Warrant after the consummation of such reorganization, consolidation or merger.
      

     
      

    4.4
        
      Conversion
      of Stock .
      In case
      all the authorized Common Stock of the Company is converted, pursuant to the
      Company’s Certificate of Incorporation, into other securities or property, or
      the Common Stock otherwise ceases to exist, then, in such case, the Warrant
      Holder, upon exercise of this Warrant at any time after the date on which the
      Common Stock is so converted or ceases to exist (the “ Termination
      Date ”),
      shall
      receive, in lieu of the number of shares of Common Stock that would have been
      issuable upon such exercise immediately prior to the Termination Date (the
“
Former
      Number of Shares of Warrant Stock ”),
      the
      stock and other securities and property which the Warrant Holder would have
      been
      entitled to receive upon the Termination Date if the Warrant Holder had
      exercised this Warrant with respect to the Former Number of Shares of Warrant
      Stock immediately prior to the Termination Date (all subject to further
      adjustment as provided in this Warrant). 

     
      

    4.5
        
      Notice
      of Adjustments .
      The
      Company shall promptly give written notice of each adjustment or readjustment
      of
      the Warrant Price or the number of shares of Warrant Stock or other securities
      issuable upon exercise of this Warrant. The notice shall describe the adjustment
      or readjustment and show in reasonable detail the facts on which the adjustment
      or readjustment is based. 

     
      

    4.6
        
      No
      Change Necessary .
      The
      form of this Warrant need not be changed because of any adjustment in the
      Warrant Price or in the number of shares of Warrant Stock issuable upon its
      exercise. 

     
      

    4.7
        
      Reservation
      of Stock .
      If at
      any time the number of shares of Warrant Stock or other securities issuable
      upon
      exercise of this Warrant shall not be sufficient to effect the exercise of
      this
      Warrant, the Company will take such corporate action as may, in the opinion
      of
      its counsel, be necessary to increase its authorized but unissued shares of
      Warrant Stock or other securities issuable upon exercise of this Warrant as
      shall be sufficient for such purpose. 

     
      

    5.
        
      REPRESENTATIONS
      AND WARRANTIES OF WARRANT HOLDER .
      Warrant
      Holder represents and warrants to the Company as follows: 

     
      

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     
      

    5.1
        
      Purchase
      for Own Account for Investment .
      Warrant
      Holder is purchasing the Warrant Stock for Warrant Holder’s own account for
      investment purposes only and not with a view to, or for sale in connection
      with,
      a distribution of the Warrant Stock within the meaning of the Securities Act
      of
      1933, as amended (the “ 1933
      Act ”).
      Warrant Holder has no present intention of selling or otherwise disposing of
      all
      or any portion of the Warrant Stock and no one other than Warrant Holder has
      any
      beneficial ownership of any of the Warrant Stock. 

     
      

    5.2
        
      Access
      to Information .
      Warrant
      Holder has had access to all information regarding the Company and its present
      and prospective business, assets, liabilities and financial condition that
      Warrant Holder reasonably considers important in making the decision to purchase
      the Warrant Stock, and Warrant Holder has had ample opportunity to ask questions
      of the Company’s representatives concerning such matters and this investment.

     
      

    5.3
        
      Understanding
      of Risks .
      Warrant
      Holder is fully aware of: (a) the highly speculative nature of the
      investment in the Warrant Stock; (b) the financial hazards involved;
      (c) the lack of liquidity of the Warrant Stock and the restrictions on
      transferability of the Warrant Stock ( e.g.
      ,
      that
      Warrant Holder may not be able to sell or dispose of the Warrant Stock or use
      them as collateral for loans); (d) the qualifications and backgrounds of the
      management of the Company; and (e) the tax consequences of investment in the
      Warrant Stock. 

     
      

    5.4
        
      Warrant
      Holder’s Qualifications .
      Warrant
      Holder has a preexisting personal or business relationship with the Company
      and/or certain of its officers and/or directors of a nature and duration
      sufficient to make Warrant Holder aware of the character, business acumen and
      general business and financial circumstances of the Company and/or such officers
      and directors. By reason of Warrant Holder’s business or financial experience,
      Warrant Holder is capable of evaluating the merits and risks of this investment,
      has the ability to protect Warrant Holder’s own interests in this transaction
      and is financially capable of bearing a total loss of this investment.

     
      

    5.5
        
      No
      General Solicitation .
      At
      no
      time was Warrant Holder presented with or solicited by any publicly issued
      or
      circulated newspaper, mail, radio, television or other form of general
      advertising or solicitation in connection with the offer, sale and purchase
      of
      the Warrant Stock. 

     
      

    5.6
        
      Compliance
      with Securities Laws .
      Warrant
      Holder understands and acknowledges that, in reliance upon the representations
      and warranties made by Warrant Holder herein, the Warrant Stock are not
      being registered with the SEC under the 1933 Act, but instead are being issued
      under an exemption or exemptions from the registration and qualification
      requirements of the 1933 Act which impose certain restrictions on Warrant
      Holder’s ability to transfer the Warrant Stock. 

     
      

    5.7
        
      Restrictions
      on Transfer .
      Warrant
      Holder understands that Warrant Holder may not transfer any Warrant Stock unless
      such Warrant Stock is registered under the 1933 Act or other applicable state
      securities laws or unless, in the opinion of counsel to the Company, exemptions
      from such registration and qualification requirements are available. Warrant
      Holder understands that only the Company may file a registration statement
      with
      the SEC. Warrant Holder has also been advised that exemptions from registration
      and qualification may not be available or may not permit Warrant Holder to
      transfer all or any of the Warrant Stock in the amounts or at the times proposed
      by Warrant Holder. 

     
      

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    5.8
        
      Legends
      .
      It
      is
      understood that the certificates evidencing the Warrant Stock and the Common
      Stock issuable upon exercise thereof, will bear the legend set forth below:
      

     
      

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY OTHER
      JURISDICTIONS. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY
      AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
      ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR
      EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO
      BEAR
      THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE
      ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND
      SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER
      OR
      RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
      

     
      

    6.
        
      NO
      RIGHTS OR LIABILITIES AS STOCKHOLDER .
      This
      Warrant does not by itself entitle the Warrant Holder to any voting rights
      or
      other rights as a shareholder of the Company. In the absence of affirmative
      action by the Warrant Holder to purchase Warrant Stock by exercise of this
      Warrant, no provisions of this Warrant, and no enumeration herein of the rights
      or privileges of the Warrant Holder, shall cause the Warrant Holder to be a
      shareholder of the Company for any purpose. 

     
      

    7.
        
      NO
      IMPAIRMENT .
      T
      he
      Company will not, by amendment of its Certificate of Incorporation or Bylaws,
      or
      through reorganization, consolidation, merger, dissolution, issue or sale of
      securities, sale of assets or any other voluntary action, willfully avoid or
      seek to avoid the observance or performance of any of the terms of this Warrant,
      but will at all times in good faith assist in the carrying out of all such
      terms
      and in the taking of all such action as may be necessary or appropriate in
      order
      to protect the rights of the holder against wrongful impairment. Without
      limiting the generality of the foregoing, the Company will take all such action
      as may be necessary or appropriate in order that the Company may duly and
      validly issue fully paid and nonassessable shares of Warrant Stock upon the
      exercise of this Warrant. 

     
      

    8.
        
      ATTORNEYS’
      FEES .
      In
      the
      event any party is required to engage the services of any attorneys for the
      purpose of enforcing this Warrant, or any provision thereof, the prevailing
      party shall be entitled to recover its reasonable expenses and costs in
      enforcing this Warrant, including attorneys’ fees. 

     
      

    9.
        
      TRANSFER
      .
      Neither
      this Warrant nor any rights hereunder may be assigned, conveyed or transferred,
      in whole or in part, without the Company’s prior written consent, which the
      Company may withhold in its sole discretion. The rights and obligations of
      the
      Company and the Warrant Holder under this Warrant shall be binding upon and
      benefit their respective permitted successors, assigns, heirs, administrators
      and transferees. 

     
      

     
      

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     
      

    10.
        
      GOVERNING
      LAW .
      This
      Warrant shall be governed by and construed under the internal laws of the State
      of Florida as applied to agreements among Florida residents entered into and
      to
      be performed entirely within Florida, without reference to principles of
      conflict of laws or choice of laws. 

     
      

    11.
        
      HEADINGS
      .
      The
      headings and captions used in this Warrant are used only for convenience and
      are
      not to be considered in construing or interpreting this Warrant. All references
      in this Warrant to sections and exhibits shall, unless otherwise provided,
      refer
      to sections hereof and exhibits attached hereto, all of which exhibits are
      incorporated herein by this reference. 

     
      

    12.
        
      NOTICES
      .
      Unless
      otherwise provided, any notice required or permitted under this Agreement shall
      be given in writing and shall be deemed effectively given (i) at the time
      of personal delivery, if delivery is in person; (ii) one (1) business day
      after deposit with an express overnight courier for United States deliveries,
      or
      two (2) business days after such deposit for deliveries outside of the United
      States, with proof of delivery from the courier requested; or (iii) three
      (3) business days after deposit in the United States mail by certified mail
      (return receipt requested) for United States deliveries when addressed to the
      party to be notified at the address indicated for such party in the first
      paragraph of this Warrant or, in the case of the Company, at 8000 Towers
      Crescent Drive, Suite 1220, Vienna, VA 22182, or at such other address as any
      party or the Company may designate by giving ten (10) days’ advance written
      notice to all other parties. 

     
      

    13.
        
      AMENDMENT;
      WAIVER .
       
      A
      ny term
      of this Warrant may be amended, and the observance of any term of this Warrant
      may be waived (either generally or in a particular instance and either
      retroactively or prospectively) only with the written consent of the Company
      and
      the Warrant Holder. Any amendment or waiver effected in accordance with this
      Section shall be binding upon the Warrant Holder, each future holder of such
      securities, and the Company. 

     
      

    14.
        
      SEVERABILITY
      .
      If
      one or
      more provisions of this Warrant are held to be unenforceable under applicable
      law, such provision(s) shall be excluded from this Warrant and the balance
      of
      the Warrant shall be interpreted as if such provision(s) were so excluded and
      shall be enforceable in accordance with its terms. 

     
      

    15.
        
      TERMS
      BINDING .
      By
      acceptance of this Warrant, the Warrant Holder accepts and agrees to be bound
      by
      all the terms and conditions of this Warrant. 

     
      

    16.
        
      COUNTERPARTS
      .
      This
      Warrant may be executed in any number of counterparts, each of which when so
      executed and delivered will be deemed an original, and all of which together
      shall constitute one and the same agreement. 

     

     
      

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     
      

    IN
      WITNESS WHEREOF, the
      parties hereto have executed this Warrant as of the date first above written.
      

     
      

     
      

     
      

     
      

     
      

     
      

    
      	
              THE
                COMPANY :
                

               
                

              ARIEL
                WAY, INC. 

               
                

            	
               
                

            
	
              By:
                

            	
               
                

            	
               
                

            
	
               
                

              Name:
                

            	
               
                

              Leif
                Carlsson 

            	
               
                

            
	
               
                

              Title:
                

            	
               
                

              Director
                of the Board 

            	
               
                

            
	
               
                

              AGREED
                AND ACKNOWLEDGED 

               
                

            	
               
                

            
	
               
                

              THE
                HOLDER :
                

               
                

               
                

              MRS.
                EVA DUNHEM 

               
                

               
                

               
                

            	
               
                

            

    

    

     
      

    

    
      
         

      

        9

        
          

        

      

      
         

      

    
     
      

     

    

    

  
     
      

    

    

     

    EXHIBIT
       1 

     
      

    FORM
      OF SUBSCRIPTION 

     
      

    (To
      be signed only upon exercise of Warrant) 

     
      

    To:
      Ariel
      Way, Inc. 

     
      

    (1)
        
      The
      undersigned Warrant Holder hereby elects to purchase     
         shares
      of
      Common Stock of Ariel Way, Inc. (the “ Warrant
      Stock ”),
      pursuant to the terms of the attached Warrant, and tenders herewith payment
      of
      the purchase price for such shares in full or accepts cancellation of
      indebtedness of the Company to the Warrant Holder of the same equal amount.
      

     
      

    (2)
        
      In
      exercising the Warrant, the undersigned Warrant Holder hereby confirms and
      acknowledges that the representations and warranties set forth in Section 5
      of the Warrant as they apply to the undersigned Warrant Holder continue to
      be
      true and correct as of this date. 

     
      

    (3)
        
      Please
      issue a certificate or certificates representing such shares of Warrant Stock
      in
      the name specified below: 

     
      

    
      	
               
                

            	
               
                

            
	
               
                

            	
              (Name)
                

            
	
               
                

            	
               
                

            
	
               
                

            	
              (Address)
                

            
	
               
                

            	
               
                

            
	
               
                

            	
              (City,
                State, Zip Code) 

            
	
               
                

            	
               
                

            
	
               
                

            	
              (Federal
                Tax Identification Number) 

            
	
               
                

            	
               
                

            
	
               
                

            	
              (Date)

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