Document:

Exhibit 4.1

                          REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of August 9,
2006 by and among CARSUNLIMITED.COM, Inc., a Nevada corporation (the "Company"),
and each person identified as a Holder on the signature pages hereto. All terms
used herein but not defined herein shall have the meaning given to them in the
Securities Purchase Agreement by and among the Company and the Holders dated as
of the date hereof (the "Purchase Agreement").

                                   SECTION 1

                                   DEFINITIONS

For purposes of this Agreement the following terms shall be defined as follows:

The term "Common Shares" means the shares of common stock, par value, $.001 per
share of the Company.

The term the "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

The term "Holder" means initially an Investor, and thereafter any person who at
a given time is the Holder of record of any Registrable Securities, so long as
such transfers or assignments were made in compliance with Section 6.2 hereof.

The term "Investor" means a purchaser of Redeemable Convertible Notes pursuant
to the Purchase Agreement.

The terms "register," "registered" and "registration" refer to a registration
effected by preparing and filing a Registration Statement or statements or
similar documents in compliance with the Securities Act and pursuant to Rule 415
under the Securities 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 or document by the SEC.

The term "Registrable Securities" means (i) the Shares issuable upon conversion
of the Redeemable Convertible Notes, (ii) the Shares issuable upon exercise of
the Warrants , (iii) shares issuable upon exercise of the EBIDTA Shortfall
Warrants and the Liquidated Damage Warrants ( defined hereafter), and (iv) any
securities issued upon any stock split, stock dividend, recapitalization or
similar event with respect to any of the Shares specified in the preceding
clauses (i), (ii) and (iii) ; provided however that securities shall only be
treated as Registrable Securities if and only so long as they (A) have not been
disposed of pursuant to a registration statement declared effective by the SEC
or (B) have not been sold in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act so that all transfer
restrictions and restrictive legends with respect thereto are removed upon or
prior to the consummation of such sale.

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The term "Registration Statement" means any registration statement, including a
Shelf Registration Statement, or comparable document of the Company under the
Securities Act that registers the resale of any of the Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to such Registration Statement, including post-effective amendments, all
exhibits and all material incorporated by reference in such Registration
Statement.

The terms "Redeemable Convertible Notes" means the senior secured redeemable
convertible promissory notes of the Company issued pursuant to the Purchase
Agreement.

The term "Securities Act" shall mean the Securities Act of 1933, as amended.

The term "Warrants" means (i) the common stock purchase warrants issued pursuant
to the Purchase Agreement, including any EBITDA Shortfall Warrants, and (ii) any
Liquidated Damages Warrants.

                                   SECTION 2

                               REGISTRATION RIGHTS

      2.1 Registration.

            (a) The Company shall use its best efforts to prepare and file a
Registration Statement on a form that shall (A) be available for the sale of the
Registrable Securities by the selling Holders thereof and (B) comply as to form
with the requirements of the applicable form on which such Registration
Statement is filed and include all financial statements required by the SEC to
be filed therewith ("Shelf Registration Statement") with the SEC within ninety
(90) days of the Closing Date to provide for the offer and sale of the
Registrable Securities and shall cause the Shelf Registration Statement to
become effective under the Act no later than the earlier of (i) one hundred
eighty (180) days after the Closing Date and (ii) the thirtieth (30th) day
following the date on which the Company is notified by the SEC that such Shelf
Registration Statement will not be reviewed or is no longer subject to further
review and comments (the "Effective Date"). The Registration Statement filed
pursuant to this Section 2.1(a) may, at the Company's discretion and with the
consent of the Holders of not less than fifty percent (50%) of the Registrable
Securities, include securities of the Company other than the Registrable
Securities.

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            (b) In the event the Shelf Registration Statement is not declared
effective by the Effective Date, the Company shall promptly, but no later than
ten (10) business days from the Effective Date, issue to each Holder warrants
exercisable for a number of shares of Common Stock equal to two percent (2%) of
the number of shares of Common Stock issuable to such Holder upon conversion of
all Redeemable Convertible Notes held by such Holder. In addition, for each full
thirty (30) day period (each such period consisting of thirty consecutive days)
after the Effective Date that the Shelf Registration has not been declared
effective (each, a "Default Period"), the Company shall be obligated to issue to
the Holder (or any assignee thereof) warrants exercisable for a number of shares
of Common Stock equal to two percent (2%) of the number of shares of Common
Stock issuable to such Holder upon conversion of all Redeemable Convertible
Notes held by such Holder. Any issuances of warrants the Company is obligated to
make for subsequent Default Periods shall be made no later than ten (10)
business days from the last day of such Default Period. The warrants issued
pursuant to this Section 2.1(b) shall be hereinafter referred to as a
"Liquidated Damages Warrants." The parties acknowledge the irresolvable
uncertainty entailed in any effort to calculate the actual damage shall the
Registration Statement fail to be effective on or prior to the Effective Date,
and hereby agree that the Liquidated Damage Warrants represent a reasonable
estimate on the part of the parties, as of the date of this Agreement, of the
amount of damages that may be incurred by the Holder if the Registration
Statement has not been declared effective by the SEC on or prior to the
Effective Date.

            (c) Notwithstanding the foregoing, the Company's obligation to issue
the Liquidated Damages Warrants shall cease one (1) year from the date hereof so
long as the Company has remained current, and remains current for at least one
(1) contiguous year thereafter, with respect to all of its filings required
under the Exchange Act (the "Filings"). In the event that subsequent to the
first anniversary of the date hereof and prior to the second anniversary of the
date hereof, the Holders are not eligible to sell any Registrable Securities
pursuant to Rule 144 under the Securities Act ("Rule 144") because the Company
has ceased to be current with respect to all of its Filings or because the
Company's transfer agent refuses to remove the restrictive legend with respect
to such Registrable Securities (including without limitation, as a result of the
failure of the Company's legal counsel to issue an appropriate legal opinion to
the transfer agent), the Company's obligation to issue the Liquidated Damages
Warrants pursuant to Section 2.1(a) above shall resume with respect to each
period of 30 consecutive days after the first anniversary of the date hereof
during which the Company is not current with respect to its Filings. Any and all
obligations of the Company to issue any Liquidated Damages Warrants shall be
contingent upon the Holder delivering appropriate documentation to the Company,
as determined by the Company in its reasonable discretion, in order to satisfy
applicable Federal and state securities laws.

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      2.2 Piggyback Registration.

            (a) From and after the Closing Date and until such time as the
Registrable Securities are freely saleable under Rule 144(k) without volume
limitations, if the Company shall determine to proceed with the preparation and
filing of a Registration Statement in connection with the proposed offer and
sale of any of its securities by it or any of its security Holders (other than a
registration statement on Form S-4, S-8, any successor form thereto or other
limited purpose form), the Company will give written notice of its determination
to all record Holders of the Registrable Securities at least twenty (20) days
prior to filing. Upon receipt of a written request from any such Holder within
twenty (20) days after receipt of any such notice from the Company, the Company
will, except as herein provided, cause all the Registrable Securities owned by
such Holders to be included in such Registration Statement in order to permit
the sale or other disposition by the prospective seller or sellers of the
Registrable Securities to be so registered. If any registration pursuant to this
Section 2.2 shall be underwritten in whole or in part, the Company shall cause
the Registrable Securities requested for inclusion pursuant to this Section 2.2
to be included in the underwriting on the same terms and conditions as the
securities otherwise being sold through the underwriters, except to the extent
provided in Section 2.2(b) below. In such event the right of any Holder to
registration shall be conditioned upon such underwriting and the inclusion of
such Holder's Registrable Securities in such underwriting to the extent provided
in Section 2.2(b) below. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company and the other Holders
distributing their securities through such underwriting) enter into an
underwriting agreement with the underwriters' representative for such offering;
provided that such Holders shall have no right to participate in the selection
of the underwriters for an offering pursuant to this Section 2.2(a). The
obligation of the Company under this Section 2.2 shall be unlimited as to the
number of Registration Statements to which it applies. Notwithstanding the
foregoing, to the extent that all Registrable Securities are registered on an
effective Registration Statement on Form S-3, the Company shall not be required
to provide notice to Holders of the preparation and filing of a registration
statement in connection with the proposed nonunderwritten offer and sale of any
of its securities and the Holders shall not he entitled to include any
Registrable Securities in such registration statement.

                        (b) In connection with an underwritten public offering
for the account of the Company, if, in the opinion of the
underwriters' representative market factors (including, without limitation, the
aggregate number of shares of Common Stock requested to be registered, the
general condition of the market, and the status of the persons proposing to sell
securities pursuant to the registration) require a limitation of the number of
shares to be underwritten, the underwriters' representative may exclude some or
all Registrable Securities from such registration and underwriting and the
Company shall be obligated to include in such Registration Statement only such
limited portion of the Registrable Securities with respect to which the Holders
have requested inclusion hereunder as the underwriters shall permit. Any
exclusion of Registrable Securities shall be made pro rata among the Holders
seeking to include Registrable Securities, in proportion to the number of
Registrable Securities sought to be included by such Holder; 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
contractually entitled to inclusion of such securities in such Registration
Statement or are not contractually 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. No Registrable
Securities excluded from the underwriting by reason of this Section 2.2(b) shall
be included in such Registration Statement.

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      2.3 Limitations on Subsequent Registration Rights. From and after the date
of this Agreement and until sixty (60) days following the Effective Date, the
Company shall not, without the prior written consent of the Holders of a
majority of the Registrable Securities then outstanding, enter into any
agreement with any Holder or prospective Holder of any securities of the Company
that provides such Holder or prospective Holder with registration rights
superior to or that conflict with the registration rights provided to the
Holders pursuant to this SECTION 2.

                                   SECTION 3

                      REGISTRATION PROCEDURES AND EXPENSES

      3.1 Registration Procedures. If and whenever the Company is required by
the provisions of Sections 2.1 or 2.2 to effect the registration of Registrable
Securities under the Securities Act, the Company will:

            (a) use its best efforts to cause such a Registration Statement to
become and remain effective for a period of two (2) years from the date the
Registration Statement becomes effective; provided, however, that any
Registration Statement filed pursuant to Section 2.2 may be kept effective for
such lesser period of time until which all Registrable Securities included
thereunder are freely saleable (without any volume, legend or other restriction,
except with regard to Registrable Securities held by persons deemed to be
"affiliates" of the Company) or have been disposed of pursuant to a registration
statement or all transfer restrictions or legends have otherwise been removed;

            (b) prepare and file with the SEC such amendments to such
Registration Statement and supplements to the prospectus contained therein as
may be necessary to keep such Registration Statement effective for the period of
time described in paragraph (a) above;

            (c) furnish to the Holders participating in such registration such
reasonable number of copies of such Registration Statement, preliminary
prospectus, final prospectus in conformity with the requirements of the Act and
such other documents as such underwriters or selling shareholders may reasonably
request in order to facilitate the public offering of such securities;

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            (d) use its best efforts to register or qualify the securities
covered by the Registration Statement under such state securities or blue sky
laws of such jurisdictions as such participating Holders may reasonably request
in writing within twenty (20) days following the original filing of such
Registration Statement, except that the Company shall not for any purpose be
required to execute a general consent to service of process or to qualify to do
business as a foreign corporation in any jurisdiction wherein it is not so
qualified;

            (e) in the event that a registration involves an underwritten
offering, 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 managing underwriter of
such offering;

            (f) notify the Holders participating in such registration, promptly,
and in no event later than two (2) business days after, the Registration
Statement has become effective or a supplement to any prospectus forming a part
of the Registration Statement has been filed;

            (g) notify such Holders promptly of any request by the SEC for
amending or supplementing the Registration Statement or prospectus or for
additional information;

            (h) within ten (10) business days (subject to extension for delivery
by auditors for the Company of materials, information or other responses
required to so respond) of its receipt of any comment or inquiry from the SEC
regarding the Registration Statement, respond to the SEC's comment or inquiry;

            (i) notify such Holders promptly of the Company's reasonable
determination that a post-effective amendment to a Registration Statement or
prospectus would be appropriate;

            (j) prepare and file with the SEC, promptly upon the request of any
such Holders, any amendments or supplements to the Registration Statement or
prospectus which, in the opinion of counsel for such Holders (and concurred in
by counsel for the Company), is required under the Securities Act or the rules
and regulations thereunder in connection with the distribution of the
Registrable Securities;

            (k) prepare and promptly file with the SEC and promptly notify such
Holders of the filing of such amendment or supplement to the Registration
Statement or prospectus as may be necessary to correct any statements or
omissions if, at the time when a prospectus relating to such securities is
required to be delivered under the Securities Act, any event shall have occurred
as the result of which any such prospectus or any other prospectus as then in
effect would include an untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading;

            (l) advise such Holders, promptly after it shall receive notice or
obtain knowledge thereof, of the issuance of any stop order by the SEC
suspending the effectiveness of the Registration Statement or the initiation or
threatening of any proceeding for that purpose and promptly use its best efforts
to prevent the issuance of any stop order or, to obtain its withdrawal if such
stop order should be issued;

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            (m) at the request of Holders of a majority of the Registrable
Securities included in the Registration Statement, finish to the underwriters or
selling shareHolders on the date that the Registrable Securities are delivered
to underwriters for sale in connection with a registration pursuant to this
Agreement (i) an opinion, dated such date, of the counsel representing the
Company for the purposes of such registration, in form and substance as is
customarily given to underwriters in an underwritten public offering, addressed
to the underwriters and (ii) a letter dated such date, from the independent
certified accountants of the Company, in form an substance as is customarily
given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to the underwriters;

            (n) make available for inspection by any underwriters participating
in an offering covering Registrable Securities, and the counsel, accountants or
other agents retained by any such underwriter, all pertinent financial and other
records, corporate documents and properties of the Company, and cause the
Company's officers, directors and employees to supply all information reasonably
requested by any such underwriters in connection with such offering;

            (o) to the extent the Registration Statement is not filed on Form
S-3, convert such Registration Statement to Form S-3 as soon as reasonably
practicable following the Company becoming eligible to register securities on
Form S-3;

            (p) if the Common Stock is then listed on a national securities
exchange, cause all the Registrable Securities to be listed on each such
exchange, or if reported on Nasdaq, to be reported on Nasdaq;

            (q) 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 in which Registrable Securities are included; and

            (r) comply with all applicable rules and regulations of the
Commission and make generally available to its security Holders earning
statements satisfying the provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder no later than forty five (45) days after the end of any
twelve (12) month period (or ninety (90) days after the end of any twelve (12)
month period if such period is a fiscal year) commencing on the first day of the
first fiscal quarter of the Company after the effective date of the Shelf
Registration Statement, which statements shall cover said twelve (12) month
period.

      3.2 Expenses. With respect to each inclusion of Registrable Securities in
a Registration Statement pursuant to Sections 2.1 and 2.2 hereof, the fees,
costs and expenses of registration to be borne by the Company shall include all
registration, filing, and NASD fees; printing expenses, fees and disbursements
of counsel and accountants for the Company; all legal fees and disbursements and
other expenses of complying with state securities or blue sky laws of any
jurisdictions in which the securities to be offered are to be registered and
qualified. Fees and disbursements of counsel and accountants for the selling
security Holders shall be borne by the selling security Holders, and selling
security Holders participating in such registration shall bear their pro rata
share of the underwriting discounts and commissions and transfer taxes. If NASD
Rule 2710 or any similar rule requires any broker-dealer to make a filing prior
to executing a sale of Registrable Securities, the Company shall make an Issuer
Filing with the NASD Corporate Financing Department pursuant to NASD Rule 2710
and respond within five (5) business days to any comments received from the NASD
in connection therewith.

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<PAGE>

                                   SECTION 4
                         CERTAIN OBLIGATIONS OF HOLDERS

      4.1(a) Each Holder agrees that, upon receipt of any notice from the
Company of the happening of (i) any event of the kind described in Sections
3.1(g), 3.1(h), 3.1(i), 3.1(j) or 3.1(k) hereof, or (ii) a determination by the
Company's Board of Directors that it is advisable to suspend use of the
prospectus for a discrete period of time due to pending corporate developments
such as negotiation of a material transaction which the Company, in its sole
discretion after consultation with legal counsel, determines it would be
obligated to disclose in the Shelf Registration Statement, which disclosure the
Company believes would be premature or otherwise inadvisable at such time or
would have a material adverse effect on the Company and its stockHolders, such
Holder will forthwith discontinue disposition of such Registrable Securities
covered by the Shelf Registration Statement or prospectus until such Holder's
receipt of the copies of the supplemented or amended prospectus contemplated by
Section 3.1 hereof, or until such Holder is advised in writing by the Company
that the use of the applicable prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated or deemed
to be incorporated by reference in such prospectus. The period of time in which
the use of a prospectus or Shelf Registration Statement is so suspended shall be
referred to as a "Black-Out Period." The Company agrees to so advise such Holder
promptly of the commencement and termination of any such Black-Out Period, and
the Holder agrees to keep the fact of such Black-Out Period confidential. The
Company shall not impose a Black-Out Period under this SECTION 4 for more than
thirty (30) consecutive days and not more than twice in any given twelve (12)
month period; provided, that at least ninety (90) days must pass between
Black-Out Periods. Notwithstanding the foregoing, the Company may suspend the
effectiveness of any Shelf Registration Statement if the SEC rules and
regulations prohibit the Company from maintaining the effectiveness of a Shelf
Registration because its financial statements are stale at a time when its
fiscal year has ended or it has made an acquisition reportable under Item 2 of
Form 8-K or any other similar situation until the earliest time in which the SEC
would allow the Company to re-effect a Shelf Registration Statement (provided
that the Company shall use its reasonable best efforts to cure any such
situation as soon as possible so that the Shelf Registration Statement can be
made effective at the earliest possible time). The Company shall not effect a
Black-Out Period unless the Company also institutes such Black-Out Period
against sales under any Registration Statements on Form S-8 or any other
registration statement that the Company has on file with the SEC at such time.
Notwithstanding the foregoing, the Company undertakes and covenants that until
the first to occur of (i) the end of sixty (60) days following the effective
date of the Shelf Registration Statement, or (ii) the date that all the Shares
have been resold pursuant to a registration statement or Rule 144, the Company
will not take any action, including, without limitation, entering into any
acquisition, share exchange or sale or other transaction that could have the
effect of delaying the effectiveness of any pending Registration Statement,
requiring a post-effective amendment to be filed or causing a post-effective
amendment to a Registration Statement to not be declared effective or for a
Holder not to be able to effect sales for a period of fifteen (15) or more days.

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            (b) in connection with the registration of the Registrable
Securities, each of the Holders shall have the following obligations:

                  (i) It shall be a condition precedent to the obligations of
the Company to take any action pursuant to this Agreement with respect to each
Holder that such Holder shall furnish to the Company such information regarding
itself, the Registrable Securities held by it and the intended methods of
disposition of such securities as shall be reasonably required to effect the
registration of the Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request. At
least fifteen (15) days prior to the first anticipated filing date of the
Registration Statement, the Company shall notify each Holder of the information
the Company requires from each such Holder (the "Requested Information") if it
elects to have any of his Registrable Securities included in the Registration
Statement. If within seven (7) days of the filing date the Company has not
received the Requested Information from a Holder (a "Non-Responsive Holder"),
then the Company may file the Registration Statement without including
Registrable Securities of such Non-Responsive Holder.

                  (ii) Each Holder participating in an underwritten offering
agrees to cooperate with the Company in connection with the preparation and
filing of any Registration Statement hereunder, unless any such Holder has
notified the Company in writing of its election to exclude all of its
Registrable Securities from the Registration Statement.

                  (iii) In the event Holders holding a majority in interest of
the Registrable Securities being sold pursuant to the Shelf Registration
Statement select underwriters for the offering, each Holder agrees to enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, including, without limitation, customary indemnification and
contribution obligations and market stand-off obligations, with the managing
underwriter of such offering and to take such other actions as are reasonably
required in order to expedite or facilitate the disposition of the Registrable
Securities being sold, unless such Holder has notified the Company in writing of
its election to exclude all of his Registrable Securities from the Registration
Statement.

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                                   SECTION 5

                                 INDEMNIFICATION

      5.1 Indemnification by the Company. To the extent permitted by law, the
Company will indemnify and hold harmless each Holder of Registrable Securities
which are included in a Registration Statement pursuant to the provisions of
Sections 2.1 and 2.2 hereof, such Holder's directors and officers, employees,
assignees, agents, brokers, and investment advisors, and any underwriter (as
defined in the Securities Act) for such Holder and each person, if any, who
controls such Holder or such underwriter within the meaning of the Securities
Act, and directors, officers, employees and designees of such controlling person
from and against, and will reimburse such Holder and each such underwriter and
controlling person with respect to, any and all loss, damage, liability, cost
and expense to which such Holder or any such underwriter or controlling person
may become subject under the Securities Act or otherwise, insofar as such
losses, damages, liabilities, costs or expenses are caused by any untrue
statement or alleged untrue statement of any material fact contained in a
Registration Statement, any prospectus contained therein or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading; provided, however, that the Company will not be
liable in any such case to the extent that any such loss, damage, liability,
cost or expenses arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission so made in conformity with
written information furnished by such Holder, such underwriter or such
controlling person specifically for use in the preparation thereof; provided,
however, that the indemnity agreement set forth herein shall not apply (i) to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the prior consent of the Company (which
consent shall not be unreasonably withheld) or (ii) with respect to any
preliminary prospectus, if the untrue statement or omission of material fact
contained in such preliminary prospectus was corrected in an amended prospectus
and the Company has provided notice of such amendment to each Investor pursuant
to Section 3.1 hereof. The indemnification undertaking set forth in This Section
5.1 shall remain in full force and effect regardless of any investigation made
by or on behalf of an indemnified party and shall survive the transfer of
Registrable Securities by the Holder.

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      5.2 Indemnification by the Holders. Each Holder of Registrable Securities
included in a registration pursuant to the provisions of Sections 2.1 and 2.2
hereof will indemnify and hold harmless the Company, its directors and officers,
any controlling person and any underwriter from and against, and will reimburse
the Company, its directors and officers, any controlling person and any
underwriter with respect to, any and all loss, damage, liability, cost or
expense to which the Company or any controlling person and/or any underwriter
may become subject under the Securities Act or otherwise, insofar as such
losses, damages, liabilities, costs or expenses are caused by any untrue
statement or alleged untrue statement of any material fact contained in the
Registration Statement, any prospectus contained therein or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was so made in reliance upon and in strict conformity with
written information furnished by or on behalf of such Holder specifically for
use in the preparation thereof; provided, however, that the indemnity agreement
set forth herein shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
prior consent of the Holder (which consent shall not be unreasonably withheld )
and provided further, that the maximum amount that may be recovered from any
Holder shall be limited to the net amount of proceeds received by such Holder
from the sale of the Registrable Securities pursuant to the Registration
Statement.

      5.3 Indemnification Procedure. Promptly after receipt by an indemnified
party under this SECTION 5 of a notice of the commencement of any action
(including any governmental action) such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party hereunder, deliver
to the indemnifying party a written notice of the commencement thereof. The
failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action shall relieve such indemnifying
party of any liability to the indemnified party under this SECTION 5 only to the
extent prejudicial to its ability to defend such action, but the omission so to
deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to an indemnified party otherwise than under this
Agreement. 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 parties; provided, however, that an
indemnified party shall have the right to retain its own counsel, with the
reasonable fees and expenses to be paid by the indemnifying party, if in the
reasonable determination of counsel for the indemnifying party, representation
of such indemnified party by the counsel obtained by the indemnifying party
would be inappropriate due to actual or potential conflicting interests between
such indemnified party and any other party represented by such counsel in such
proceeding. After notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party will
not be liable to such indemnified party pursuant to the provisions of paragraph
5.1 or 5.2 above for any legal or other expense subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation, unless (i) the indemnified party shall have employed
counsel in accordance with the provisions of the preceding sentence, (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after the notice of the commencement of the action or (iii) the
indemnifying party has authorized in writing the employment of counsel for the
indemnified party at the expense of the indemnifying party.

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      5.4 Survival. The indemnification undertakings set forth above in this
Section 5 shall survive the completion of any offering of Registrable
Securities.

                                   SECTION 6

                        ADDITIONAL RIGHTS AND OBLIGATIONS

      6.1 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 5 hereof to the extent permitted by law, provided that (i)
no contribution shall be made under circumstances where the maker would not have
been liable for indemnification pursuant to the provisions of SECTION 5 hereof,
(ii) no seller of Registrable Securities guilty of fraudulent misrepresentation
(within the meaning of Section 11 (f) of the Securities Act) shall be entitled
to contribution from any seller of Registrable Securities who was not guilty of
such fraudulent misrepresentation, and (iii) contribution by any seller of
Registrable Securities shall be limited to the net amount of proceeds received
by such seller from the sale of such Registrable Securities.

      6.2 Assignable Rights. The rights with respect to any Registrable
Securities under this Agreement shall, in addition to being for the benefit of
the parties hereto, be for the benefit of and enforceable by a transferee of
such Registrable Securities, provided that the Company is furnished with written
notice of the name and address of such transferee or assignee with respect to
which such registration rights are being assigned, such notice provides a
written agreement for the transferee or assignee to be bound by the terms and
provisions of this Agreement and the Purchase Agreement and such assignment or
transfer is in accordance with and permitted by applicable Federal and state
securities laws and the terms of the Purchase Agreement. The obligations of the
Company contained in this Agreement shall be binding upon any successor to the
Company and continue to be in effect with respect to any securities issued by
any successor to the Company in substitution or exchange for any Registrable
Securities.

      6.3 Reports Under Exchange Act. With a view to making available to the
Holders of Registrable Securities the benefits of Rule 144 and any other rule or
regulation of the SEC that may at any time permit the Holders of the Registrable
Securities to sell any of the Registrable Securities to the public without
registration, the Company agrees to apply its commercially reasonable best
efforts to:

            (a) make and keep public information available, as those terms are
understood and declined in Rule 144, at all times;

            (b) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;

            (c) furnish to each Holder of Registrable Securities, forthwith upon
request (I) (if true) a written statement by the Company that it has complied
with the reporting requirements of Rule 144, the Securities Act and the Exchange
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 in availing the Holders of any
Registrable Securities of any rule or regulation of the SEC which permits the
selling of any such securities without registration; and

                                       12
<PAGE>

            (d) direct its counsel to issue an appropriate legal opinion
instructing the Company's transfer agent to remove the legend with respect to
such Registrable Securities, subject to Investor providing any documentation
reasonably requested by the Company or its counsel for review in connection with
such request.

                                   SECTION 7

                            MISCELLANEOUS PROVISIONS

      7.1 Waivers and Amendments. Except as expressly provided herein, neither
this Agreement nor any term hereof may be amended or waived except pursuant to a
written instrument executed by the Company and the Holders that hold at least
two-thirds (66 2/3%) of the Registrable Securities held by all Holders. Any
amendment or waiver effected in accordance with this paragraph shall be binding
upon all Holders and the Company. The failure of any party to exercise any right
or remedy under this Agreement or otherwise, or the delay by any party in
exercising such right or remedy, shall not operate as a waiver thereof

      7.2 Notices. Any notice, demand or other communication which any party
hereto may be required, or may elect, to give to anyone interested hereunder
shall be sufficiently given if delivered via fax, personally or by nationally
recognized overnight courier service or sent by registered or certified mail,
return receipt requested, addressed to such address as may be given herein;
provided, however, that notices with respect to Sections 3.1(f) , 3.1(g) and
3.1(h) hereof may be delivered via email; and, except as otherwise noted herein,
must be addressed as follows:

if to the Company, to:

            CARSUNLIMITED.COM, Inc.
            Suite 4510
            305 Madison Avenue
            New York, NY 10168
            Attn: President
            Facsimile:  (212) 808-0113

                                       13
<PAGE>

with a copy (which shall not constitute notice) to:

            Beckman, Lieberman & Barandes, LLP
            116 John Street, Suite 1313
            New York, NY  10038
            Attn: Robert Barandes
            Facsimile:(212) 608-9687

and

if to any Holder, to the address shown on such Holder's signature page hereto,
marked for attention as there indicated, or to such other address as the party
to whom notice is to be given may have furnished to the other parties in writing
in accordance with the provisions of this Section 7.2 . Any such notice or
communication will he deemed to have been received: (A) in the case of
facsimile, email or personal delivery, on the date of such delivery; or (B) in
the case of nationally-recognized overnight courier, on the next business day
after the date sent.

      7.3 Descriptive Headings and References. The descriptive headings herein
have been inserted for convenience only and are not deemed to limit or otherwise
affect the construction of any provisions hereof.

      7.4 Applicable Law: Jurisdiction. This Agreement shall be governed by and
construed under the internal laws of the State of New York without regard to
conflict of law rules. The parties hereby submit to the exclusive jurisdiction
of the courts of the State of New York located in New York County and the
Federal courts located in the Southern District of New York, with respect to any
action or legal proceeding commenced by either party with respect to this
Agreement or the Registrable Securities. Each party irrevocably waives any
objection it now has or hereafter may have respecting the venue of any such
action or proceeding or the inconvenience of such forum, and each party consents
to the service of process in any such action or proceeding in the manner set
forth for the delivery of notices herein.

      7.5 Waiver of Jury Trial. The parties hereby waive their rights to a trial
by jury in any action or proceeding involving any matter arising out of or
relating to this Agreement or to the Registrable Securities.

      7.6 Counterparts. This Agreement may by executed through the use of
separate signature pages or in any number of counterparts, and each of such
counterparts shall, for all purposes, constitute one agreement binding on all
the parties, notwithstanding that all parties are not signatories to the same
counterpart. Any signature delivered by facsimile transmission shall create a
valid and binding obligation of the party so executing with the same force and
effect as if such facsimile signature page were an original thereof.

                                       14
<PAGE>

      7.7 Entire Agreement. This instrument contains the entire agreement of the
parties, and there are no representations, covenants or other agreements except
as stated or referred to herein.

      7.8 Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be deemed
prohibited or invalid under such applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, and such
prohibition or invalidity shall not invalidate the remainder of such provision
or the other provisions of this Agreement.

      7.9 Third Party Beneficiaries. Except as expressly provided herein, no
provision of this Agreement is intended to confer any rights, benefits or
remedies upon any person other than the parties hereto and their respective
successors and assigns.

      7.10 Remedies. The Holders, in addition to being entitled to exercise all
rights granted by law, including recovery of damages, shall be entitled to
specific performance of their rights under this Agreement. The Company agrees
that monetary damages would not be adequate compensation for any loss incurred
by any Holder by reason of a breach by it of the provisions of this Agreement
and hereby agrees to waive in any action for specific performance the defense
that a remedy at law would be adequate.

      7.11 Further Assurances. Each of the parties hereto shall execute and
deliver such documents and perform such further acts (including, without
limitation, obtaining any consents, exemptions, authorizations or other actions
by, or giving any notices to, or making any filings with, any governmental
authority or any other Person) as may be reasonably required or desirable to
carry out or to perform the provisions of this Agreement.

      7.12 Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the respective successors and assigns of the
parties, except that the Company shall not have the right to assign or otherwise
transfer all or any part of its rights or obligations hereunder or any interest
herein without the prior written consent of the Holders.

                            [SIGNATURE PAGES FOLLOW]

                                       15
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
on the day and year first set forth above.

CARSUNLIMITED.COM, INC.

By: /s/ Dan Myers
Name:   Dan Myers
Title:  CEO

HOLDER SIGNATURE PAGES FOLLOW

                                       16
<PAGE>

             HOLDER SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

The undersigned Holder hereby executes this counterpart signature page to the
Registration Rights Agreement, dated as of August 9, 2006 by and among
CARSUNLIMITED.COM, INC. and certain Holders, including the undersigned.

                                    Mellon HBV Master U.S. Event Driven Fund, LP

                                    By:  /s/ M. Hawthorne
                                    (Signature)

                                    Print Name:  Michael Hawthorne
                                    Title:  Managing Director
                                    Address: ___________________________
                                    Phone:  _____________________________
                                    Fax:  _______________________________
                                    Email:  ______________________________

                                    Mellon HBV Master Global
                                    Event  Driven Fund, LP

                                    By:/s/ William F. Harley III
                                    (Signature)

                                    Print Name: William F. Harley III
                                    Title:  President/CEO
                                    Address:  ___________________
                                    Phone:  ______
                                    Fax:      _________
                                    Email:_______________

                                       17Exhibit 4.2

         THIS PROMISSORY NOTE AND THE SECURITIES OBTAINABLE UPON CONVERSION
         HEREOF (COLLECTIVELY, THE "SECURITIES") HAVE NOT BEEN REGISTERED UNDER
         THE SECURITIES ACT OF 1933, AS AMENDED ("THE ACT"), OR THE SECURITIES
         LAWS OF ANY STATE. THE SECURITIES MAY NOT BE PLEDGED, SOLD, ASSIGNED OR
         TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
         UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
         APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND
         SUCH LAWS.

              SENIOR SECURED CONVERTIBLE REDEEMABLE PROMISSORY NOTE

U.S. $                                                                  , 2006
      -------                                                 ----------

      FOR VALUE RECEIVED, Carsunlimited.com, Inc., a Nevada corporation (the
"Company"), hereby promises to pay to the order of ___________(the "Lender") the
principal amount of _____________Dollars ($_________) Dollars (the "Principal
Amount"), together with interest on the Principal Amount under this senior
secured convertible redeemable promissory note (this "Note") at the per annum
rate of ten (10%) percent (calculated daily on the basis of a 360-day year and
actual calendar days elapsed). Subject to conversion as provided herein, the
Principal Amount shall become due and payable in one installment on [30 months]
2009 (the "Maturity Date"), together with accrued but unpaid interest and any
unreimbursed expenses due pursuant to the terms of this Note. Interest shall
accrue, due and be payable in instalments, commencing on the first anniversary
of this Note and quarterly thereafter and on the Maturity Date. Interest shall
be payable, at the option of the Company, either in lawful currency of the
United States of America or added to the unpaid principal amount of the Note, if
not paid in such currency. The Company shall not have the option to prepay this
Note prior to the Maturity Date, either in whole or in part.

      Both the Principal Amount and accrued interest shall be paid in lawful
currency of the United States of America to the Lender at c/o Mellon HBV
Alternative Strategies LLC, 200 Park Avenue, 54th Floor, New York, New York
10166, or at such other address as the Lender may designate by notice in writing
to the Company, in immediately available funds.

      If any payment hereunder falls due on a Saturday, Sunday or legal holiday,
it shall be payable on the next succeeding business day and such additional time
shall be included in the computation of interest.

      This Note is one of a series of Senior Secured Convertible Redeemable
Promissory Notes containing substantially identical terms and conditions issued
pursuant to that certain Securities Purchase Agreement by and between the
Company and certain Lenders of even date herewith (the "Purchase Agreement").
All capitalized terms not defined herein shall have the meanings ascribed
thereto in the Purchase Agreement. This Note is subject to the terms and
conditions of the Purchase Agreement.

<PAGE>

1) Senior. The indebtedness evidenced by this Note and the payment of the
Principal Amount and interest thereof shall be Senior (as hereinafter defined)
to, and have priority in right of payment over, all indebtedness of the Company,
now existing or hereafter arising other than Permissible Parity Indebtedness (as
hereinafter defined). "Senior" shall be deemed to mean that, in the event of any
default in the payment of the obligations represented by this Note or of any
liquidation, insolvency, bankruptcy, reorganization, or similar proceedings
relating to the Company, all sums payable on this Note, shall first be paid in
full, with interest, if any, before any payment is made upon any other
indebtedness, now outstanding or hereinafter incurred, and, in any such event,
any payment or distribution of any character which shall be made in respect of
any other indebtedness of the Company, shall be paid over to the holder of this
Note for application to the payment hereof, unless and until the obligations
under this Note (which shall mean the Principal Amount and other obligations
arising out of, premium, if any, interest on, and any costs and expenses payable
under, this Note) shall have been paid and satisfied in full. "Permissible
Parity Indebtedness" shall mean (i) indebtedness of the Company secured by an
assignment or sale of accounts receivable in an aggregate amount not to exceed
eighty (80%) per cent of the face amount of the receivables assigned or sold,
and (ii) lease financing indebtedness incurred in connection with the
acquisition of molds and other manufacturing equipment in the ordinary course of
business and secured only by the molds or other manufacturing equipment
acquired. "Permitted Liens" shall mean (i) liens securing the repayment of
Permissible Parity Indebtedness, (ii) liens in favor of the Investors securing
repayment of the Notes, (iii) liens for taxes, assessments or other governmental
charges not yet due and payable or being contested in good faith by appropriate
proceedings and for which appropriate reserves are maintained, (iv)) liens
imposed by law such as mechanics, carriers and similar liens securing
obligations (other than for borrowed money) incurred in the ordinary course of
business, and (v) liens securing the performance of bids or contracts and surety
bonds incurred in the ordinary course of business.

2) Redemption and Conversion.

      a) Mandatory Redemption. Unless this Note is converted into Common Stock
of the Company, the Company shall redeem this Note for an amount equal to one
hundred twenty percent (120%) of the outstanding principal amount plus interest
and any unreimbursed expenses due under this Note.

      b) Redemption at Option of Lender. In the event the Company sells all or
substantially all of the assets of the Company, consolidates with, or merges
into, another corporation or entity, or effects any other corporate
reorganization or other transaction or series of transactions as a result of
which the holders of the outstanding voting shares of the Company prior to such
transaction or series of transactions own less than 50% of the outstanding
voting shares of the Company or the acquiring company after such transaction or
series of transactions ("Change in Control Transaction"), at the Lender's
option, either (a) this Note shall be assumed by the surviving company on the
same terms with an appropriate adjustment in the conversion price, as per
Section 5 hereof or (b) the Company shall redeem this Note for an amount equal
to one hundred twenty (120%) percent of the outstanding principal amount plus
accrued interest and any unreimbursed expenses due under the provisions of this
Note. Such option shall be exercised by the Lender within ten (10) days
following the Change in Control Transaction. If the Lender does not exercise the
option, the Note shall be assumed by the surviving company.

                                      -2-
<PAGE>

      c) Mechanics and Conversion.

            i) Redemption. Against the payment of the redemption price, the
Lender shall surrender this Note, duly endorsed, for redemption at the principal
offices of the Company. This Note is subject to mandatory redemption on the
Maturity Date.

            ii) Discretionary Conversion. The Lender shall have the right at any
time from time to time in whole or in part ("Discretionary Conversion") to
convert the entire principal amount of this Note, together with accrued interest
hereon, into Common Stock at the Conversion Price (the "Note Shares"). The
Conversion Price, subject to adjustment as set forth in Section 5, represents
the number of shares of Common Stock obtained by dividing (i) the amount of
principal and interest and any unreimbursed expenses converted by the Lender by
(ii) $(1) . Any fraction of a share resulting from these calculations shall be
rounded upward to the next whole share. The Company covenants to cause such
shares, when issued pursuant to this Section 2(b), to be fully paid and
nonassessable, and free from all taxes, liens and charges with respect to the
issuance thereof, other than any taxes, liens or charges not caused by the
Company. Upon conversion, the Company shall deliver, in addition to the
certificates representing the Note Shares, any other securities or property to
which the Holder is entitled upon conversion under the terms of this Note.

      Upon the exercise of a Discretionary Conversion, the Lender shall
surrender its Note, duly endorsed, together with a written conversion notice to
the Company at its principal office. At its expense, the Company will, as soon
as practicable thereafter, issue and deliver to such Lender, at its address, a
certificate or certificates for the number of shares to which such Lender is
entitled upon such conversion. This Note shall be deemed to have been converted
immediately prior to the close of business on the date of giving of such notice
and the Lender shall be treated for all purposes as the record holder of the
Common Stock deliverable upon such conversion as of the close of business on
such date.

      d) No Impairment. The Company will not, by amendment of its Articles of
Incorporation or through any reorganization, recapitalization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed hereunder by the Company, but will
at all times in good faith assist in the carrying out of all the provisions of
this Section 2 and in the taking of all such action as may be necessary or
appropriate in order to protect the conversion rights of the Lender pursuant to
this Note against impairment.

3) Reservation of Shares. The Company shall at all times have authorized and
reserved for issuance a sufficient number of shares of its capital stock to
provide for the full conversion of this Note.

----------
(1)   The result obtained by dividing $16,000,000 by the number of outstanding
      shares of common stock of the Company calculated on the date hereof on a
      fully diluted basis after giving effect to the reverse merger of Innopump,
      Inc. into a subsidiary of the Company.

                                      -3-
<PAGE>

4) Security. Payment of the indebtedness represented by this Note is secured by
a perfected first priority lien and security interest under a Security Agreement
dated the date hereof from the Company to the Lender or its designated agent,
and by a guaranty of the Notes from the Company's subsidiary and Innopump, Inc.

5) Certain Adjustments. The number and class or series of shares into which this
Note may be converted under Section 2 shall be subject to adjustment in
accordance with the following provisions:

      a) Computation of Adjusted Exercise Price. Except as hereinafter provided,
in case the Company shall at any time after the date hereof issue or sell any
shares of its Stock (as defined in Section 5(g)), for a consideration per share
less than the Conversion Price in effect immediately prior to the issuance or
sale of such shares, or without consideration, then forthwith upon such issuance
or sale, the Conversion Price shall (until another such issuance or sale) be
reduced to the price (calculated to the nearest full cent) equal to the quotient
derived by dividing (A) an amount equal to the sum of (X) the product of (a) the
Conversion Price in effect immediately prior to such issuance or sale,
multiplied by (b) the total number of shares of Stock outstanding immediately
prior to such issuance or sale, plus (Y) the aggregate of the amount of all
consideration, if any, received by the Company upon such issuance or sale, by
(B) the total number of shares of Stock outstanding immediately after such
issuance or sale; provided, however, that in no event shall the Conversion Price
be adjusted pursuant to this computation to an amount in excess of the
Conversion Price in effect immediately prior to such computation, except in the
case of a combination of outstanding shares of Stock, as provided by Section
5(c) hereof.

      For the purposes of this Section 5 the term Conversion Price shall mean
the Conversion Price per share set forth in Section 2(b) (ii) of this Note, as
adjusted from time to time pursuant to the provisions of this Section 5. For
purposes of any computation to be made in accordance with this Section 5(a), the
following provisions shall be applicable:

            i) In case of the issuance or sale of shares of Stock for a
consideration part or all of which shall be cash, the amount of the cash
consideration, shall be deemed to be the amount of cash received by the Company
for such shares (or, if shares of Stock are offered by the Company for
subscription, the subscription price, or, if either of such securities shall be
sold to underwriters or dealers for public offering without a subscription
price, the public offering price, before deducting therefrom any compensation
paid or discount allowed in the sale, underwriting or purchase thereof by
underwriters or dealers or other persons or entities performing similar
services), or any expenses incurred in connection therewith and less any amounts
payable to security holders or any affiliate thereof, including, without
limitation, any employment agreement, royalty, consulting agreement, covenant
not to compete, earnout or contingent payment right or similar arrangement,
agreement or understanding, whether oral or written; all such amounts shall be
valued at the aggregate amount payable thereunder whether such payments are
absolute or contingent and irrespective of the period or uncertainty of payment,
the rate of interest, if any, or the contingent nature thereof.

            ii) In case of the issuance or sale (otherwise than as a dividend or
other distribution on any stock of the Company) of shares of Stock for a
consideration part or all of which shall be other than cash, the amount of the
consideration therefor other than cash shall be deemed to be the value of such
consideration as determined in good faith by the Board of Directors of the
Company.

                                      -4-
<PAGE>

            iii) Shares of Stock issuable by way of dividend or other
distribution on any capital stock of the Company shall be deemed to have been
issued immediately after the opening of business on the day following the record
date for the determination of stockholders entitled to receive such dividend or
other distribution and shall be deemed to have been issued without
consideration.

            iv) The reclassification of securities of the Company other than
shares of Stock into securities including shares of Stock shall be deemed to
involve the issuance of such shares of Stock for consideration other than cash
immediately prior to the close of business on the date fixed for the
determination of security holders entitled to receive such shares, and the value
of the consideration allocable to such shares of Stock shall be determined as
provided in Section 5(iv).

            v) The number of shares of Stock at any one time outstanding shall
include the aggregate number of shares issued or issuable (subject to
readjustment upon the actual issuance thereof) upon the exercise of then
outstanding options, rights, warrants, and convertible and exchangeable
securities.

      b) Options, Rights, Warrants and Convertible and Exchangeable Securities.

            i) In case the Company shall at any time after the date hereof issue
options, rights or warrants to subscribe for shares of Stock, or issue any
securities convertible into or exchangeable for shares of Stock, for a
consideration per share less than the Conversion Price in effect immediately
prior to the issuance of such options, rights, warrants or such convertible or
exchangeable securities, or without consideration, the Conversion Price in
effect immediately prior to the issuance of such options, rights, warrants or
such convertible or exchangeable securities, as the case may be, shall be
reduced to a price determined by making a computation in accordance with the
provisions of Section 5(a) hereof, provided that:

            ii) The aggregate maximum number of shares of Stock, as the case may
be, issuable under such options, rights or warrants shall be deemed to be issued
and outstanding at the time such options, rights or warrants were issued, for a
consideration equal to the minimum purchase price per share provided for in such
options, rights or warrants at the time of issuance, plus the consideration
(determined in the same manner as consideration received on the issue or sale of
shares in accordance with the terms of this Note), if any, received by the
Company for such options, rights or warrants. The aggregate maximum number of
shares of Stock issuable upon conversion or exchange of any convertible or
exchangeable securities shall be deemed to be issued and outstanding at the time
of issuance of such securities, and for a consideration equal to the
consideration (determined in the same manner as consideration received on the
issue or sale of shares of Stock in accordance with the terms of this Note)
received by the Company for such securities, plus the minimum consideration, if
any, receivable by the Company upon the conversion or exchange thereof. If any
change shall occur in the price per share provided for in any of the options,
rights or warrants referred to in subsection, or in the price per share at which
the securities referred to in this subsection are exchangeable, such options,
rights or warrants or exchange rights, as the case may be, shall be deemed to
have expired or terminated on the date when such price change became effective
in respect to shares not theretofore issued pursuant to the exercise or exchange
thereof, and the Company shall be deemed to have issued upon such date new
options, rights or warrants or exchangeable securities at the new price in
respect of the number of shares issuable upon the exercise of such options,
rights or warrants or the conversion or exchange of such exchangeable
securities.

                                      -5-
<PAGE>

      c) Subdivision and Combination. If the Company at any time subdivides (by
any stock split, stock dividend, recapitalization, reorganization,
reclassification or otherwise) the shares of Stock subject to acquisition
hereunder into a greater number of shares, then, after the date of record for
effecting such subdivision, the Conversion Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of shares of
Common Stock subject to acquisition upon conversion of this Note will be
proportionately increased. If the Company at any time combines (by reverse stock
split, recapitalization, reorganization, reclassification or otherwise) the
shares of Stock subject to acquisition hereunder into a smaller number of
shares, then, after the date of record for effecting such combination, the
Conversion Price in effect immediately prior to such combination will be
proportionately increased and the number of shares of Common Stock subject to
acquisition upon conversion of this Note will be proportionately decreased.

      d) Merger or Consolidation. In case of any consolidation of the Company
with, or merger of the Company into any other corporation, or in case of any
sale or conveyance of all or substantially all of the assets of the Company
other than in connection with a plan of complete liquidation of the Company,
then as a condition of such consolidation, merger or sale or conveyance,
adequate provision will be made whereby the Lender will have the right to
acquire and receive upon conversion of this Note in lieu of the shares of Common
Stock immediately theretofore subject to acquisition upon the conversion of this
Note, such shares of stock, securities or assets as may be issued or payable
with respect to or in exchange for the number of shares of Common Stock
immediately theretofore subject to acquisition and receivable upon conversion of
this Note had such consolidation, merger or sale or conveyance not taken place.
In any such case, the Company will make appropriate provision to insure that the
provisions of this Section 5 hereof will thereafter be applicable as nearly as
may be in relation to any shares of stock or securities thereafter deliverable
upon the conversion of this Note.

      e) Notice of Adjustment. Upon the occurrence of any event which requires
any adjustment of the Conversion Price, then and in each such case the Company
shall give notice thereof to the Lender, which notice shall state the Conversion
Price resulting from such adjustment and the increase or decrease, if any, in
the number of Note Shares purchasable at such price upon conversion, setting
forth in reasonable detail the method of calculation and the facts upon which
such calculation is based.

      f) Adjustment in Number of Securities. Upon each adjustment of the
Conversion Price pursuant to the provisions of this Section 5, the number of
securities issuable upon the conversion of this Note shall be adjusted to the
nearest full share by multiplying a number equal to the Conversion Price in
effect immediately prior to such adjustment by the number of Note Shares
issuable upon conversion of this Note immediately prior to such adjustment and
dividing the product so obtained by the adjusted Conversion Price.

                                      -6-
<PAGE>

      g) Definition of Stock. For the purpose of this Note, the term "Stock"
shall mean (i) the class of stock designated as Common Stock in the Articles of
Incorporation of the Company as may be amended as of the date hereof, or (ii)
any other class of stock resulting from successive changes or reclassifications
of such Stock consisting solely of changes in par value, or from par value to no
par value, or from no par value to par value.

      h) No Adjustment of Conversion Price in Certain Cases. No adjustment of
the Conversion Price shall be made:

            i) Upon issuance or sale of this Note or Note Shares, or the other
Notes issued pursuant to the Purchase Agreement and Note Shares issued upon
conversion thereof, or other options, warrants and convertible securities
outstanding as of the date hereof into or for shares of Common Stock.

            ii) Upon the issuance or sale of any shares of capital stock, or the
grant of options exercisable therefor, issued or issuable after the date of this
Note, to directors, officers, employees, advisers and consultants of the Company
or any subsidiary pursuant to any incentive or non-qualified stock option plan
or agreement, stock purchase plan or agreement, stock restriction agreement or
restricted stock plan, employee stock ownership plan (ESOP), consulting
agreement, stock appreciation right (SAR), stock depreciation right (SDR), bonus
stock arrangement, or such other similar compensatory options, issuances,
arrangements, agreements or plans approved by the compensation committee of the
Board of Directors.

            iii) If the amount of said adjustment shall be less than one cent
($0.01) per security issuable upon conversion of this Note, provided, however,
that in such case any adjustment that would otherwise be required then to be
made shall be carried forward and shall be made at the time of and together with
the next subsequent adjustment which, together with any adjustment so carried
forward, shall amount to at least two cents ($0.02) per security issuable upon
conversion of this Note.

6) Further Adjustments. In case at any time or, from time to time, the Company
shall take any action that affects the class of securities into which this Note
may be converted under Section 2(b)(ii), other than an action described in
Section 5, then, unless such action will not have a materially adverse effect
upon the rights of the Lender, the number of shares of such class of securities
(or other securities) into which this Note is convertible shall be adjusted in
such a manner and at such time as shall be equitable in the circumstances.

7) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to Section 5 or Section 6, the Company at its sole expense
shall promptly compute such adjustment or readjustment in accordance with the
terms hereof and furnish to the Lender a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, upon the written request
at any time of the Lender, furnish or cause to be furnished to Lender a like
certificate setting forth (i) such adjustments and readjustments, and (ii) the
number and class of securities and the amount, if any, of other property which
at the time would be received upon the conversion of this Note under Section 2.

                                      -7-
<PAGE>

8) Affirmative Covenants. The Company covenants and agrees that, while any
amounts under this Note are outstanding, it shall:

      a) Do all things necessary to preserve and keep in full force and effect
its corporate existence, including, without limitation, all licenses or similar
qualifications required by it to engage in its business in all jurisdictions in
which it is at the time so engaged; and continue to engage in business of the
same general type as conducted as of the date hereof; and (ii) continue to
conduct its business substantially as now conducted or as otherwise permitted
hereunder;

      b) Pay and discharge promptly when due all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
in respect of its property before the same shall become delinquent or in
default, which, if unpaid, might reasonably be expected to give rise to liens or
charges upon such properties or any part thereof, unless, in each case, the
validity or amount thereof is being contested in good faith by appropriate
proceedings and the Company has maintained adequate reserves with respect
thereto in accordance with generally accepted accounting principles ("GAAP");

      c) Comply in all material respects with all federal, state and local laws
and regulations, orders, judgments, decrees, injunctions, rules, regulations,
permits, licenses, authorizations and requirements applicable to it
(collectively, "Requirements") of all governmental bodies, departments,
commissions, boards, companies or associations insuring the premises, courts,
authorities, officials or officers which are applicable to the Company or any of
its properties, except where the failure to so comply would not have a material
effect ("Material Adverse Effect") on the Company or any of its properties;
provided, however, that nothing provided herein shall prevent the Company from
contesting the validity or the application of any Requirements;

      d) Keep proper records and books of account with respect to its business
activities, in which proper entries, reflecting all of their financial
transactions, are made in accordance with GAAP;

      e) Within 30 days prior to the beginning of each fiscal year of the
Company, provide to the Lender a copy of the Company's annual operating plan;

      f) Within 20 days following the end of each calendar month during the
first twelve months following the date of this Note, provide to the Lender a
monthly management report and monthly financial statements, consisting of a
balance sheet, statement of operations and statement of cash flows, of the
Company on a consolidated basis compared against the Company's annual operating
plan;

      g) Within 40 days following the end of each fiscal quarter, commencing
with the fiscal quarter following the first anniversary of this Note, provide to
the Lender a quarterly management report and financed statements, consisting of
a balance sheet, statement of operations and statement of cash flows, of the
Company on a consolidated basis compared against the Company's annual operating
plan, until such time as the Lender advises the Company it no longer requires
such documents;

                                      -8-
<PAGE>

      h) Promptly after filing with the Securities and Exchange Commission,
furnish to the Lender a copy of all reports filed by the Company pursuant to the
provisions of the Securities Exchange Act of 1934, as amended;

      i) Upon reasonable advance notice and during normal business hours,
provide to the Lender and its representatives access and right to inspect to the
books and records of the Company, subject to the execution of a customary
confidentiality agreement prior to such access or inspection.

      j) Administer the employee option pool through a compensation committee
comprised solely of independent directors (as the term independent director is
defined in Section 10A (m) of the Securities Exchange Act of 1934, and the rules
and regulations of the Securities and Exchange Commission, and the requirements
of NASDAQ).

      k) Notify the Lender in writing, promptly upon learning thereof, of any
litigation or administrative proceeding commenced or threatened against the
Company which involves a claim in excess of $100,000;

      l) Keep and maintain all property material to the conduct of its business
in good working order and condition, ordinary wear and tear excepted;

      m) Maintain, with financially sound and reputable insurance companies,
insurance in such amounts and against such risks as are customarily maintained
by companies engaged in the same or similar businesses operating in the same or
similar locations; and

      n) Use the proceeds from this Note for those purposes set forth in the
Purchase Agreement.

9) Negative Covenants. The Company covenants and agrees that while any amount of
this Note is outstanding it will not directly or indirectly:

      a) Guarantee, assume or otherwise become responsible for (directly or
indirectly) any other indebtedness for borrowed funds (exclusive of the other
Notes), performance, obligations, of any person, or the agreement by the Company
or any of its subsidiaries to do any of the foregoing, without the prior written
consent of the Lender;

      b) Declare or pay, directly and indirectly, any dividends or make any
distributions, whether in cash, property, securities or a combination thereof,
with respect to (whether by reduction of capital or otherwise) any shares of its
capital stock (including without limitation any preferred stock) or directly or
indirectly redeem, purchase, retire or otherwise acquire for value any shares of
any class of its capital stock or set aside any amount for any such purpose; and

                                      -9-
<PAGE>

      c) Take any action without a prior written consent of the Holders of a
majority of the outstanding principal amount of the Notes that: (i) increases or
decreases the authorized number of shares of Common or Preferred Stock, (ii)
creates (by reclassification or otherwise) any new class or series of shares,
(iii) results in the redemption of any shares of Common Stock or Preferred Stock
(other than pursuant to equity incentive agreements with service providers
giving the Company the right to repurchase shares upon the termination of
services), (iv) results in any merger, other corporate reorganization, sale of
control, or any transaction in which all or substantially all of the assets of
the Company are sold, (v) amends or waives any provision of the Company's
Articles of Incorporation or Bylaws, (vi) increases or decreases the authorized
size of the Company's board, (vii) results in the payment or declaration of any
dividend on any shares of Common Stock or Preferred Stock, (vii) (exclusive of
Permissible Parity Indebtedness, and subordinated working capital lines) results
in borrowing in excess of the amount of the Notes without consent of the holder
of the Notes, which consent shall not be unreasonably withheld, (ix) results in
the creation of any lien or encumbrance on the assets of the Company (other than
in favor of the holders of the Notes, and Permitted Liens, as hereinafter
defined), (x) authorizes or increases the number of shares reserved in the
employee pool above 10% on a fully diluted basis, (xi) changes the Company's
principal line of business, (xii) results in the acquisition of any other
business or material assets, or (xiii) results in the sublicense or transfer of
any intellectual property of the Company without consent of the holder of the
Note, which consent shall not be unreasonably withheld. Any action by the
Company in breach of the aforementioned provisions shall be void and invalid.
"Permitted Liens" shall mean (i) liens securing the repayment of Permissible
Parity Indebtedness, (ii) liens for taxes, assessments or other governmental
charges not yet due and payable or being contested in good faith by appropriate
proceedings and for which appropriate reserves are maintained, (iii)) liens
imposed by law such as mechanics, carriers and similar liens securing
obligations (other than for borrowed money) incurred in the ordinary course of
business and securing obligations which are not yet delinquent, and (iv) liens
securing the performance of bids or contracts and surety bonds incurred in the
ordinary course of business.

10) Events of Default. The entire unpaid Principal Amount under this Note and
the interest due thereon shall forthwith become and be immediately due and
payable, without presentment, demand, protest or other notice of any kind, all
of which are hereby expressly waived, if any one or more of the following events
(herein called "Events of Default") shall have occurred (for any reason
whatsoever and whether such happening shall be voluntary or involuntary or come
about or be effected by operation of law or pursuant to or in compliance with
any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

      a) The Company shall breach any of the covenants, material terms or
provisions in this Note, the Securities Purchase Agreement, the Guaranty or any
related documents or instruments; provided that such failure shall continue for
a period of 10 days.

      b) the Company shall (i) fail to pay any amounts owed hereunder as
required under the terms of this Note or (ii) have an event of default occur and
be continuing under indebtedness of the Company (other than this Notes) such
that the holders of such indebtedness have declared the outstanding principal
and accrued interest to be immediately due and payable;

      c) if the Company shall:

            i) admit in writing its inability to pay its debts generally as they
become due;

                                      -10-
<PAGE>

            ii) file a petition in bankruptcy or a petition to take advantage of
any insolvency act;

            iii) make an assignment for the benefit of creditors;

            iv) consent to the appointment of a receiver of the whole or any
substantial part of its assets;

            v) on a petition in bankruptcy filed against it, be adjudicated a
bankrupt;

            vi) file a petition or answer seeking reorganization or arrangement
under the Federal bankruptcy laws or any other applicable law or statute of the
United States of America or any State, district or territory thereof; or

            vii) enter into a voluntary or involuntary liquidation of the
Company;

      d) if a court of competent jurisdiction shall enter an order, judgment, or
decree appointing, without the consent of the Company, a receiver of the whole
or any substantial part of Company's assets, and such order, judgment or decree
shall not be vacated or set aside or stayed within 90 days from the date of
entry thereof;

      e) if, under the provisions of any other law for the relief or aid of
debtors, any court of competent jurisdiction shall assume custody or control of
the whole or any substantial part of Company's assets and such custody or
control shall not be terminated or stayed within 90 days from the date of
assumption of such custody or control; or

      f) the Company shall default (and not cure within 10 days after receipt of
written notice of such default) in the performance of any covenant contained in
this Note or in the Purchase Agreement;

      g) Any representation and warranty of the Company contained in this Note
or the Purchase Agreement or in any written statement delivered pursuant thereto
or hereto, or any report, financial statement or certificate made or delivered
to the Lender by the Company pursuant hereto or hereto shall be untrue or
incorrect in any material respect, as of the date when made or deemed made; or

      h) Any provision of this Note, the Purchase Agreement, the Guaranty, or
any other related documents or instruments shall for any reason cease to be
valid and binding on the Company or the guarantors or the Company or the
guarantors shall so state in writing.

11) Remedies. In case any one or more of the Events of Default specified in
Section 10 hereof shall have occurred and be continuing, the Lender may proceed
to protect and enforce its rights either by suit in equity and/or by action at
law, whether for the specific performance of any covenant or agreement contained
in this Note or in aid of the exercise of any power granted in this Note, or the
Lender may proceed to enforce the payment of all sums due upon this Note or to
enforce any other legal or equitable right of the Lender.

                                      -11-
<PAGE>

12) Maximum Interest Rate. Notwithstanding anything in this Note or the Purchase
Agreement to the contrary, in no event shall the changes consisting interest
payable under this Note exceed the maximum rate of interest permitted under
applicable law. Any payment made which if treated as interest would cause the
interest charged to exceed the maximum rate permitted shall instead be held by
the Lender to the extent of such excess as additional collateral under the
Security Agreement and applied to future interest payments as and when such
amount becomes due and payable hereunder.

13) Amendments and Waivers. No term of this Note may be amended and no
observance of any term of this Note may be waived (either generally or in a
particular instance and either retroactively or prospectively) without the
written consent of the Company and the Lender.

14) Notices. All notices, requests, consents, and other communications under
this Note shall be in writing and shall be deemed delivered (i) three (3)
business days after being sent by registered or certified mail, return receipt
requested, postage prepaid or (ii) one (1) business day after being sent via a
reputable nationwide overnight courier service guaranteeing next business day
delivery, in each case to the intended recipient as set forth below:

                  If to the Company:

                  Carsunlimited.com, Inc.
                  305 Madison Avenue, Suite 4510
                  New York, NY 10165
                  Attn: Paul L. Block, President
                  Fax: (212)808-0113

                  With a copy (which shall not constitute notice):

                  Beckman, Lieberman & Barandes, LLP
                  116 John Street, Suite 1313
                  New York, NY 10038
                  Attn: Robert Barandes, Esq.
                  Fax: (212)608-9687

                  If to the Lender:

                  [Mellon HBV Master U.S. Event Driven L.P.]
                  [Mellon HBV Master Global Event Driven L.P.]
                  c/o Mellon HBV Alternative Strategies LLC
                  200 Park Avenue, 54th Floor
                  New York, NY 10161

                                      -12-
<PAGE>

      Any party may give any notice, request, consent or other communication
under this Note using any other means (including, without limitation, personal
delivery, messenger service, telecopy, first class mail or electronic mail), but
no such notice, request, consent or other communication shall be deemed to have
been duly given unless and until it is actually received by the party for whom
it is intended. Any party may change the address to which notices, requests,
consents or other communications hereunder are to be delivered by giving the
other parties notice in the manner set forth in this Section.

15) Conflicting Agreements. In the event of any inconsistencies between the
terms of this Note and the terms of any other document related to the loan
evidenced by this Note, the terms of this Note shall prevail.

16) Severability. The unenforceability or invalidity of any provision or
provisions of this Note as to any persons or circumstances shall not render that
provision or those provisions unenforceable or invalid as to any other
provisions or circumstances, and all provisions hereof, in all other respects,
shall remain valid and enforceable.

17) Collection and Enforcement. The Company promises to pay all reasonable costs
and expenses of the Lender, including reasonable attorney's fees incurred in the
collection and enforcements of this Note. The Company hereby waives diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by Law, the right to plead any statute of limitation defense to any
demand under this Note.

18) Governing Law. This Note shall be governed by and construed under the laws
of the State of New York as applied to agreements among New York residents
entered into and to be performed entirely within New York. The Company (1)
agrees that any legal suit, action or proceeding arising out of or relating to
this Note shall be instituted exclusively in New York State Supreme Court,
County of New York, or in the United States District Court for the Southern
District of New York, (2) waives any objection which the Company may have now or
hereafter to the venue of any such suit, action or proceeding, and (3)
irrevocably consents to the jurisdiction of the New York State Supreme Court,
County of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding. The Company further
agrees to accept and acknowledge service of any and all process which may be
served in any such suit, action or proceeding in the New York State Supreme
Court, County of New York, or in the United States District Court for the
Southern District of New York and agrees that service of process upon the
Company mailed by certified mail to the Company's address shall be deemed in
every respect effective service of process upon the Company, in any such suit,
action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS NOTE OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

19) Waivers. The nonexercise by either party of any of its rights hereunder in
any particular instance shall not constitute a waiver thereof in that or any
subsequent instance.

                                      -13-
<PAGE>

20) Lost Documents. Upon receipt by the Company of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Note or any Note exchanged
for it, and (in the case of loss, theft or destruction) of indemnity
satisfactory to it, and upon reimbursement to the Company of all reasonable
expenses incidental thereto, and upon surrender and cancellation of such Note,
if mutilated, the Company will make and deliver in lieu of such Note a new Note
of like tenor and unpaid principal amount and dated as of the original date of
this Note.

21) Successors and Assigns. This Note shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties, except that
the Company shall not have the right to assign or otherwise transfer all or any
part of its rights or obligations hereunder or any interest herein without the
prior written consent of the Lender.

                            [Signature Page Follows]

                                      -14-
<PAGE>

      IN WITNESS WHEREOF, the Company has caused its duly authorized officer to
execute this Note as of the date first written above.

                                            CARSUNLIMITED.COM, INC.

                                                   By:
                                                       ------------------------
                                                           [----------------],
                                                            President

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