Document:

EXHIBIT 10.24

                                     WARRANT

THE SECURITIES  REPRESENTED BY THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS. THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE  ABSENCE OF AN  EFFECTIVE  REGISTRATION
STATEMENT FOR THE SECURITIES  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR
APPLICABLE  STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
SATISFACTORY  TO THE ISSUER THAT  REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE  STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.  NOTWITHSTANDING  THE FOREGOING,  THIS WARRANT MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT.

                                 ARIEL WAY, INC.

                        Warrant To Purchase Common Stock

Warrant No.: CCP-001                                 Number of Shares: 1,000,000

Date of Issuance: July 28, 2005

Ariel Way, Inc., a Florida  corporation (the "Company"),  hereby certifies that,
for  Ten  United   States   Dollars   ($10.00)   and  other  good  and  valuable
consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,
Cornell Capital  Partners,  LP ("Cornell"),  the registered holder hereof or its
permitted  assigns,  is  entitled,  subject  to the terms set  forth  below,  to
purchase from the Company upon  surrender of this Warrant,  at any time or times
on or after  the date  hereof,  but not after  11:59  P.M.  Eastern  Time on the
Expiration  Date (as  defined  herein) One  Million  (1,000,000)  fully paid and
nonassessable  shares of Common  Stock (as defined  herein) of the Company  (the
"Warrant Shares") at the exercise price per share provided in Section 1(b) below
or as  subsequently  adjusted;  provided,  however,  that in no event  shall the
holder be entitled to exercise  this  Warrant for a number of Warrant  Shares in
excess of that  number of  Warrant  Shares  which,  upon  giving  effect to such
exercise,   would  cause  the  aggregate   number  of  shares  of  Common  Stock
beneficially  owned by the  holder  and its  affiliates  to exceed  4.99% of the
outstanding  shares of the Common Stock  following such exercise,  except within
sixty (60) days of the Expiration  Date. For purposes of the foregoing  proviso,
the aggregate number of shares of Common Stock  beneficially owned by the holder
and its  affiliates  shall include the number of shares of Common Stock issuable
upon  exercise of this Warrant with respect to which the  determination  of such
proviso is being made,  but shall exclude  shares of Common Stock which would be
issuable upon (i) exercise of the remaining,  unexercised Warrants  beneficially
owned by the holder and its  affiliates  and (ii)  exercise or conversion of the
unexercised  or  unconverted  portion  of any other  securities  of the  Company
beneficially  owned  by  the  holder  and  its  affiliates  (including,  without
limitation, any convertible notes or preferred stock) subject to a limitation on
conversion or exercise analogous to the limitation  contained herein.  Except as
set forth in the preceding sentence, for purposes of this paragraph,  beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended.  For purposes of this Warrant,  in determining
the number of outstanding shares of Common Stock a holder may rely on the number
of  outstanding  shares of Common Stock as reflected in (1) the  Company's  most
recent Form 10-QSB or Form 10-KSB,  as the case may be, (2) a more recent public
announcement  by the  Company  or (3) any  other  notice by the  Company  or its
transfer  agent setting forth the number of shares of Common Stock  outstanding.
Upon the written request of any holder,  the Company shall  promptly,  but in no
event later than one (1)  Business  Day  following  the receipt of such  notice,
confirm in writing to any such holder the number of shares of Common  Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the exercise of Warrants (as defined below)
by such  holder and its  affiliates  since the date as of which  such  number of
outstanding shares of Common Stock was reported.

<PAGE>

      Section 1.

            (a)  This  Warrant  is  the  common  stock  purchase   warrant  (the
"Warrant")  issued  pursuant to the  Promissory  Note dated July 28, 2005 by and
between the Company and Cornell.

            (b)  Definitions.  The  following  words  and  terms as used in this
Warrant shall have the following meanings:

                  (i)  "Approved  Stock Plan" means any  employee  benefit  plan
which has been  approved by the Board of Directors  of the Company,  pursuant to
which  the  Company's  securities  may be  issued to any  employee,  officer  or
director for services provided to the Company.

                  (ii) "Business Day" means any day other than Saturday,  Sunday
or other day on which commercial banks in the City of New York are authorized or
required by law to remain closed.

                  (iii)  "Closing  Bid  Price"  means the  closing  bid price of
Common  Stock as  quoted on the  Principal  Market  (as  reported  by  Bloomberg
Financial Markets ("Bloomberg") through its "Volume at Price" function).

                  (iv) "Common Stock" means (i) the Company's  common stock, par
value $0.001 per share,  and (ii) any capital stock into which such Common Stock
shall have been changed or any capital stock  resulting from a  reclassification
of such Common Stock.

                  (v)  "Excluded  Securities"  means,  provided such security is
issued at a price which is greater  than or equal to the  arithmetic  average of
the Closing Bid Prices of the Common Stock for the ten (10) consecutive  trading
days immediately preceding the date of issuance,  any of the following:  (a) any
issuance by the Company of securities in connection with a strategic partnership
or a joint  venture  (the  primary  purpose  of  which  is not to  raise  equity
capital),  (b) any issuance by the Company of securities as consideration  for a
merger or consolidation or the acquisition of a business,  product,  license, or
other assets of another  person or entity and (c) options to purchase  shares of
Common  Stock,  provided  (I) such  options  are  issued  after the date of this
Warrant to employees of the Company  within thirty (30) days of such  employee's
starting his  employment  with the Company,  and (II) the exercise price of such
options is not less than the Closing  Bid Price of the Common  Stock on the date
of issuance of such option.

                                       2
<PAGE>

            (vi)  "Expiration  Date"  means the date  three  (3) years  from the
Issuance  Date of this  Warrant or, if such date falls on a Saturday,  Sunday or
other day on which banks are required or  authorized to be closed in the City of
New York or the State of New York or on which trading does not take place on the
Principal  Exchange or automated  quotation  system on which the Common Stock is
traded (a "Holiday"), the next date that is not a Holiday.

            (vii) "Issuance Date" means the date hereof.

            (viii) "Options" means any rights,  warrants or options to subscribe
for or purchase Common Stock or Convertible Securities.

            (ix) "Other  Securities" means (i) those options and warrants of the
Company issued prior to, and  outstanding on, the Issuance Date of this Warrant,
(ii) the  shares of Common  Stock  issuable  on  exercise  of such  options  and
warrants,  provided such options and warrants are not amended after the Issuance
Date of this Warrant and (iii) the shares of Common Stock issuable upon exercise
of this Warrant.

            (x) "Person" means an individual,  a limited  liability  company,  a
partnership,  a  joint  venture,  a  corporation,  a  trust,  an  unincorporated
organization and a government or any department or agency thereof.

            (xi)  "Principal  Market"  means the New York  Stock  Exchange,  the
American Stock Exchange, the Nasdaq National Market, the Nasdaq SmallCap Market,
whichever  is at the time the  principal  trading  exchange  or market  for such
security,  or the  over-the-counter  market on the electronic bulletin board for
such  security as reported by  Bloomberg  or, if no bid or sale  information  is
reported for such security by  Bloomberg,  then the average of the bid prices of
each of the market  makers for such security as reported in the "pink sheets" by
the National Quotation Bureau, Inc.

            (xii) "Registration  Rights".  The shares of common stock underlying
this Warrant shall have "piggy-back" registration rights.

            (xiii)  "Securities  Act"  means  the  Securities  Act of  1933,  as
amended.

            (xiv)  "Warrant"  means  this  Warrant  and all  Warrants  issued in
exchange, transfer or replacement thereof.

            (xv)  "Warrant  Exercise  Price"  shall be equal to the  Closing Bid
Price of the Company's  Common Stock as reported by Bloomberg on the date hereof
or as subsequently adjusted as provided in Section 8 hereof.

            (xvi) "Warrant  Shares" means the shares of Common Stock issuable at
any time upon exercise of this Warrant.

                                       3
<PAGE>

      (c) Other Definitional Provisions.

            (i) Except as otherwise  specified herein, all references herein (A)
to the Company  shall be deemed to include the Company's  successors  and (B) to
any applicable  law defined or referred to herein shall be deemed  references to
such  applicable law as the same may have been or may be amended or supplemented
from time to time.

            (ii) When used in this Warrant,  the words "herein",  "hereof",  and
"hereunder" and words of similar import,  shall refer to this Warrant as a whole
and not to any provision of this Warrant,  and the words "Section",  "Schedule",
and  "Exhibit"  shall refer to Sections of, and  Schedules and Exhibits to, this
Warrant unless otherwise specified.

            (iii) Whenever the context so requires,  the neuter gender  includes
the masculine or feminine, and the singular number includes the plural, and vice
versa.

      Section  2.  Exercise  of  Warrant.  Subject  to the terms and  conditions
hereof,  this Warrant may be exercised by the holder  hereof then  registered on
the books of the Company, pro rata as hereinafter  provided,  at any time on any
Business  Day on or  after  the  opening  of  business  on  such  Business  Day,
commencing  with the first day after the date  hereof,  and prior to 11:59  P.M.
Eastern Time on the Expiration Date, by (i) delivery of a written notice, in the
form of the  subscription  notice  attached as Exhibit A hereto  (the  "Exercise
Notice"), of such holder's election to exercise this Warrant, which notice shall
specify  the  number of  Warrant  Shares to be  purchased,  (ii)  payment to the
Company of an amount equal to the Warrant  Exercise  Price(s)  applicable to the
Warrant Shares being  purchased,  multiplied by the number of Warrant Shares (at
the  applicable  Warrant  Exercise  Price)  as to which  this  Warrant  is being
exercised (plus any applicable issue or transfer taxes) (the "Aggregate Exercise
Price") in cash or wire transfer of  immediately  available  funds and (iii) the
surrender of this  Warrant (or an  indemnification  undertaking  with respect to
this Warrant in the case of its loss,  theft or destruction) to a common carrier
for  overnight  delivery to the Company as soon as  practicable  following  such
date. In the event of any exercise of the rights  represented by this Warrant in
compliance with this Section 2(a), the Company shall on the fifth (5th) Business
Day following the date of receipt of the Exercise Notice, the Aggregate Exercise
Price and this Warrant (or an  indemnification  undertaking with respect to this
Warrant in the case of its loss,  theft or  destruction)  and the receipt of the
representations of the holder specified in Section 6 hereof, if requested by the
Company  (the  "Exercise  Delivery  Documents"),  and if the Common Stock is DTC
eligible  credit such  aggregate  number of shares of Common  Stock to which the
holder shall be entitled to the holder's or its designee's  balance account with
The Depository Trust Company; provided, however, if the holder who submitted the
Exercise Notice requested physical delivery of any or all of the Warrant Shares,
or, if the Common Stock is not DTC eligible then the Company shall, on or before
the  fifth  (5th)  Business  Day  following  receipt  of the  Exercise  Delivery
Documents, issue and surrender to a common carrier for overnight delivery to the
address specified in the Exercise Notice, a certificate,  registered in the name
of the  holder,  for the  number of shares of Common  Stock to which the  holder
shall be entitled pursuant to such request. Upon delivery of the Exercise Notice
and Aggregate Exercise Price referred to in clause (ii) above the holder of this
Warrant shall be deemed for all corporate  purposes to have become the holder of
record of the  Warrant  Shares  with  respect  to which  this  Warrant  has been
exercised.  In the case of a  dispute  as to the  determination  of the  Warrant
Exercise  Price,  the Closing  Bid Price or the  arithmetic  calculation  of the
Warrant  Shares,  the Company shall  promptly  issue to the holder the number of
Warrant Shares that is not disputed and shall submit the disputed determinations
or arithmetic  calculations to the holder via facsimile  within one (1) Business
Day of receipt of the holder's  Exercise  Notice.  If the holder and the Company
are unable to agree upon the  determination  of the  Warrant  Exercise  Price or
arithmetic calculation of the Warrant Shares within one (1) day of such disputed
determination or arithmetic  calculation being submitted to the holder, then the
Company shall immediately submit via facsimile (i) the disputed determination of
the Warrant Exercise Price or the Closing Bid Price to an independent, reputable
investment  banking  firm or (ii) the  disputed  arithmetic  calculation  of the
Warrant Shares to its independent,  outside accountant.  The Company shall cause
the investment  banking firm or the  accountant,  as the case may be, to perform
the  determinations or calculations and notify the Company and the holder of the
results no later than  forty-eight  (48)  hours  from the time it  receives  the
disputed  determinations  or  calculations.  Such  investment  banking firm's or
accountant's  determination or calculation,  as the case may be, shall be deemed
conclusive absent manifest error.

                                       4
<PAGE>

            (a) Unless the rights represented by this Warrant shall have expired
or shall have been fully  exercised,  the Company shall,  as soon as practicable
and in no event later than five (5) Business  Days after any exercise and at its
own  expense,  issue a new Warrant  identical  in all  respects to this  Warrant
exercised  except it shall  represent  rights to purchase  the number of Warrant
Shares  purchasable  immediately  prior  to such  exercise  under  this  Warrant
exercised,  less the number of Warrant Shares with respect to which such Warrant
is exercised.

            (b) No fractional  Warrant Shares are to be issued upon any pro rata
exercise of this  Warrant,  but rather the number of Warrant  Shares issued upon
such  exercise of this Warrant  shall be rounded up or down to the nearest whole
number.

            (c) If the Company or its  Transfer  Agent shall fail for any reason
or for no reason to issue to the  holder  within ten (10) days of receipt of the
Exercise Delivery  Documents,  a certificate for the number of Warrant Shares to
which the holder is entitled or to credit the holder's  balance account with The
Depository  Trust Company for such number of Warrant  Shares to which the holder
is entitled upon the holder's  exercise of this Warrant,  the Company shall,  in
addition  to any other  remedies  under  this  Warrant  or the  Placement  Agent
Agreement or otherwise  available to such holder,  pay as additional  damages in
cash to such  holder on each day the  issuance of such  certificate  for Warrant
Shares is not timely  effected  an amount  equal to 0.025% of the product of (A)
the sum of the  number of  Warrant  Shares  not issued to the holder on a timely
basis and to which the holder is entitled,  and (B) the Closing Bid Price of the
Common Stock for the trading day  immediately  preceding  the last possible date
which the Company  could have issued  such  Common  Stock to the holder  without
violating this Section 2.

            (d) If within  ten (10)  days  after the  Company's  receipt  of the
Exercise Delivery  Documents,  the Company fails to deliver a new Warrant to the
holder  for the  number of  Warrant  Shares  to which  such  holder is  entitled
pursuant to Section 2 hereof,  then, in addition to any other available remedies
under this Warrant or the Placement Agent Agreement,  or otherwise  available to
such holder,  the Company shall pay as additional damages in cash to such holder
on each day after such tenth  (10th) day that such  delivery of such new Warrant
is not timely  effected  in an amount  equal to 0.25% of the  product of (A) the
number of Warrant Shares represented by the portion of this Warrant which is not
being  exercised  and (B) the  Closing  Bid  Price of the  Common  Stock for the
trading day immediately preceding the last possible date which the Company could
have issued such Warrant to the holder without violating this Section 2.

                                       5
<PAGE>

      Section 3. Covenants as to Common Stock.  The Company hereby covenants and
agrees as follows:

            (a) This Warrant is, and any Warrants issued in substitution  for or
replacement  of this Warrant will upon issuance be, duly  authorized and validly
issued.

            (b) All Warrant  Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued, fully
paid and nonassessable  and free from all taxes,  liens and charges with respect
to the issue thereof.

            (c) During the period  within which the rights  represented  by this
Warrant may be  exercised,  the Company  will at all times have  authorized  and
reserved at least one hundred  percent  (100%) of the number of shares of Common
Stock needed to provide for the exercise of the rights then  represented by this
Warrant and the par value of said shares will at all times be less than or equal
to the applicable  Warrant  Exercise  Price. If at any time the Company does not
have a sufficient  number of shares of Common Stock  authorized  and  available,
then the  Company  shall  call and hold a special  meeting  of its  stockholders
within  thirty  (30) days of that time for the sole  purpose of  increasing  the
number of authorized shares of Common Stock.

            (d) If at any time after the date  hereof the  Company  shall file a
registration statement, the Company shall include the Warrant Shares issuable to
the holder, pursuant to the terms of this Warrant and shall maintain, so long as
any other shares of Common Stock shall be so listed, such listing of all Warrant
Shares from time to time  issuable  upon the exercise of this  Warrant;  and the
Company  shall  so  list on  each  national  securities  exchange  or  automated
quotation  system,  as the case may be, and shall  maintain such listing of, any
other shares of capital stock of the Company  issuable upon the exercise of this
Warrant if and so long as any  shares of the same class  shall be listed on such
national securities exchange or automated quotation system.

            (e)  The  Company   will  not,  by  amendment  of  its  Articles  of
Incorporation or through any reorganization,  transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the  observance or  performance of any of the terms to be
observed  or  performed  by it  hereunder,  but will at all times in good  faith
assist in the  carrying  out of all the  provisions  of this  Warrant and in the
taking of all such action as may  reasonably  be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against dilution or other  impairment,  consistent with the tenor and purpose of
this  Warrant.  The  Company  will not  increase  the par value of any shares of
Common Stock  receivable  upon the  exercise of this  Warrant  above the Warrant
Exercise  Price  then in effect,  and (ii) will take all such  actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and  nonassessable  shares of Common  Stock upon the exercise of this
Warrant.

                                       6
<PAGE>

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

      Section 4.  Taxes.  The  Company  shall pay any and all taxes,  except any
applicable  withholding,  which may be payable  with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

      Section 5. Warrant  Holder Not Deemed a  Stockholder.  Except as otherwise
specifically  provided  herein,  no holder,  as such,  of this Warrant  shall be
entitled  to vote or  receive  dividends  or be deemed  the  holder of shares of
capital stock of the Company for any purpose,  nor shall  anything  contained in
this Warrant be construed to confer upon the holder hereof,  as such, any of the
rights of a  stockholder  of the Company or any right to vote,  give or withhold
consent to any corporate  action  (whether any  reorganization,  issue of stock,
reclassification  of stock,  consolidation,  merger,  conveyance or  otherwise),
receive  notice of  meetings,  receive  dividends  or  subscription  rights,  or
otherwise,  prior to the  issuance to the holder of this  Warrant of the Warrant
Shares which he or she is then entitled to receive upon the due exercise of this
Warrant.  In addition,  nothing  contained in this Warrant shall be construed as
imposing  any  liabilities  on such  holder to  purchase  any  securities  (upon
exercise of this  Warrant or  otherwise)  or as a  stockholder  of the  Company,
whether  such  liabilities  are  asserted by the Company or by  creditors of the
Company.  Notwithstanding this Section 5, the Company will provide the holder of
this Warrant with copies of the same notices and other  information given to the
stockholders of the Company generally, contemporaneously with the giving thereof
to the stockholders.

      Section 6.  Representations of Holder. The holder of this Warrant,  by the
acceptance hereof,  represents that it is acquiring this Warrant and the Warrant
Shares for its own account for investment  only and not with a view towards,  or
for resale in connection  with, the public sale or  distribution of this Warrant
or the Warrant Shares, except pursuant to sales registered or exempted under the
Securities Act; provided,  however,  that by making the representations  herein,
the holder does not agree to hold this Warrant or any of the Warrant  Shares for
any minimum or other  specific  term and  reserves  the right to dispose of this
Warrant and the Warrant  Shares at any time in accordance  with or pursuant to a
registration  statement or an exemption  under the Securities Act. The holder of
this Warrant further  represents,  by acceptance hereof,  that, as of this date,
such  holder  is an  "accredited  investor"  as  such  term is  defined  in Rule
501(a)(1) of Regulation D promulgated by the Securities and Exchange  Commission
under the  Securities  Act (an  "Accredited  Investor").  Upon  exercise of this
Warrant the holder shall, if requested by the Company,  confirm in writing, in a
form satisfactory to the Company, that the Warrant Shares so purchased are being
acquired  solely for the holder's own account and not as a nominee for any other
party,  for  investment,  and not with a view toward  distribution or resale and
that such holder is an  Accredited  Investor.  If such  holder  cannot make such
representations  because  they  would  be  factually  incorrect,  it  shall be a
condition to such  holder's  exercise of this  Warrant that the Company  receive
such other  representations  as the Company  considers  reasonably  necessary to
assure the Company that the  issuance of its  securities  upon  exercise of this
Warrant shall not violate any United States or state securities laws.

                                       7
<PAGE>

      Section 7. Ownership and Transfer.

            (a) The Company shall  maintain at its principal  executive  offices
(or such other office or agency of the Company as it may  designate by notice to
the holder  hereof),  a register for this  Warrant,  in which the Company  shall
record the name and  address of the person in whose name this  Warrant  has been
issued,  as well as the name and  address of each  transferee.  The  Company may
treat the person in whose name any Warrant is  registered on the register as the
owner and holder  thereof for all  purposes,  notwithstanding  any notice to the
contrary,  but in all events  recognizing  any transfers made in accordance with
the terms of this Warrant.

      Section 8. Adjustment of Warrant Exercise Price and Number of Shares.  The
Warrant  Exercise  Price and the number of shares of Common Stock  issuable upon
exercise of this Warrant shall be adjusted from time to time as follows:

            (a)  Adjustment of Warrant  Exercise Price and Number of Shares upon
Issuance of Common Stock.  If and whenever on or after the Issuance Date of this
Warrant,  the Company issues or sells,  or is deemed to have issued or sold, any
shares of Common Stock (other than (i)  Excluded  Securities  and (ii) shares of
Common  Stock  which are issued or deemed to have been  issued by the Company in
connection  with an Approved  Stock Plan or upon  exercise or  conversion of the
Other  Securities)  for a  consideration  per  share  less  than  a  price  (the
"Applicable  Price") equal to the Warrant  Exercise Price in effect  immediately
prior to such issuance or sale,  then  immediately  after such issue or sale the
Warrant  Exercise  Price then in effect  shall be reduced to an amount  equal to
such  consideration per share. Upon each such adjustment of the Warrant Exercise
Price  hereunder,  the number of Warrant  Shares  issuable upon exercise of this
Warrant shall be adjusted to the number of shares  determined by multiplying the
Warrant  Exercise Price in effect  immediately  prior to such  adjustment by the
number of Warrant  Shares  issuable  upon  exercise of this Warrant  immediately
prior to such  adjustment  and  dividing  the  product  thereof  by the  Warrant
Exercise Price resulting from such adjustment.

            (b) Effect on Warrant Exercise Price of Certain Events. For purposes
of determining the adjusted Warrant Exercise Price under Section 8(a) above, the
following shall be applicable:

                  (i) Issuance of Options. If after the date hereof, the Company
in any manner  grants any Options  and the lowest  price per share for which one
share of Common  Stock is issuable  upon the exercise of any such Option or upon
conversion or exchange of any convertible  securities  issuable upon exercise of
any such  Option is less than the  Applicable  Price,  then such share of Common
Stock shall be deemed to be outstanding  and to have been issued and sold by the
Company at the time of the  granting  or sale of such  Option for such price per
share.  For  purposes of this  Section  8(b)(i),  the lowest price per share for
which one share of Common  Stock is issuable  upon  exercise of such  Options or
upon conversion or exchange of such Convertible Securities shall be equal to the
sum of the lowest  amounts of  consideration  (if any) received or receivable by
the Company  with  respect to any one share of Common Stock upon the granting or
sale of the Option,  upon exercise of the Option or upon  conversion or exchange
of any convertible  security  issuable upon exercise of such Option.  No further
adjustment of the Warrant  Exercise Price shall be made upon the actual issuance
of such Common Stock or of such convertible securities upon the exercise of such
Options or upon the actual  issuance of such  Common  Stock upon  conversion  or
exchange of such convertible securities.

                                       8
<PAGE>

                  (ii) Issuance of Convertible Securities. If the Company in any
manner issues or sells any convertible securities and the lowest price per share
for which one share of Common Stock is issuable upon the  conversion or exchange
thereof is less than the Applicable Price, then such share of Common Stock shall
be deemed to be  outstanding  and to have been issued and sold by the Company at
the time of the issuance or sale of such  convertible  securities for such price
per share. For the purposes of this Section 8(b)(ii), the lowest price per share
for which one share of Common Stock is issuable upon such conversion or exchange
shall  be equal  to the sum of the  lowest  amounts  of  consideration  (if any)
received or  receivable by the Company with respect to one share of Common Stock
upon the issuance or sale of the  convertible  security and upon  conversion  or
exchange of such  convertible  security.  No further  adjustment  of the Warrant
Exercise Price shall be made upon the actual  issuance of such Common Stock upon
conversion or exchange of such convertible securities,  and if any such issue or
sale of such  convertible  securities  is made upon  exercise of any Options for
which  adjustment  of the  Warrant  Exercise  Price  had  been or are to be made
pursuant to other provisions of this Section 8(b), no further  adjustment of the
Warrant Exercise Price shall be made by reason of such issue or sale.

                  (iii)  Change in Option  Price or Rate of  Conversion.  If the
purchase price provided for in any Options,  the  additional  consideration,  if
any,  payable  upon  the  issue,  conversion  or  exchange  of  any  convertible
securities, or the rate at which any convertible securities are convertible into
or exchangeable for Common Stock changes at any time, the Warrant Exercise Price
in effect at the time of such change  shall be adjusted to the Warrant  Exercise
Price  which  would  have  been in  effect  at such  time  had such  Options  or
convertible  securities  provided for such changed  purchase  price,  additional
consideration  or  changed  conversion  rate,  as the case  may be,  at the time
initially granted, issued or sold and the number of Warrant Shares issuable upon
exercise of this Warrant shall be  correspondingly  readjusted.  For purposes of
this Section 8(b)(iii),  if the terms of any Option or convertible security that
was  outstanding  as of the  Issuance  Date of this  Warrant  are changed in the
manner  described in the  immediately  preceding  sentence,  then such Option or
convertible  security  and the  Common  Stock  deemed  issuable  upon  exercise,
conversion  or  exchange  thereof  shall be deemed to have been issued as of the
date of such change.  No adjustment  pursuant to this Section 8(b) shall be made
if such  adjustment  would result in an increase of the Warrant  Exercise  Price
then in effect.

            (c) Effect on Warrant Exercise Price of Certain Events. For purposes
of determining the adjusted Warrant Exercise Price under Sections 8(a) and 8(b),
the following shall be applicable:

                                       9
<PAGE>

                  (i)  Calculation  of  Consideration  Received.  If any  Common
Stock,  Options or  convertible  securities are issued or sold or deemed to have
been  issued or sold for cash,  the  consideration  received  therefore  will be
deemed to be the net amount  received  by the Company  therefore.  If any Common
Stock, Options or convertible  securities are issued or sold for a consideration
other than cash, the amount of such  consideration  received by the Company will
be the  fair  value  of such  consideration,  except  where  such  consideration
consists of  marketable  securities,  in which case the amount of  consideration
received by the Company will be the market price of such  securities on the date
of  receipt of such  securities.  If any Common  Stock,  Options or  convertible
securities  are issued to the owners of the  non-surviving  entity in connection
with any merger in which the  Company  is the  surviving  entity,  the amount of
consideration  therefore  will be deemed to be the fair value of such portion of
the net assets and business of the  non-surviving  entity as is  attributable to
such Common Stock,  Options or convertible  securities,  as the case may be. The
fair value of any consideration other than cash or securities will be determined
jointly  by the  Company  and the  holders  of  Warrants  representing  at least
two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants then
outstanding.  If such parties are unable to reach agreement within ten (10) days
after the occurrence of an event requiring  valuation (the  "Valuation  Event"),
the fair value of such consideration will be determined within five (5) Business
Days after the tenth (10th) day following the Valuation Event by an independent,
reputable  appraiser jointly selected by the Company and the holders of Warrants
representing  at  least  two-thirds  (b) of the  Warrant  Shares  issuable  upon
exercise of the Warrants then  outstanding.  The determination of such appraiser
shall be final and binding  upon all  parties and the fees and  expenses of such
appraiser shall be borne jointly by the Company and the holders of Warrants.

                  (ii) Integrated Transactions.  In case any Option is issued in
connection with the issue or sale of other  securities of the Company,  together
comprising one  integrated  transaction  in which no specific  consideration  is
allocated to such Options by the parties thereto,  the Options will be deemed to
have been issued for a consideration of $.01.

                  (iii)  Treasury  Shares.  The number of shares of Common Stock
outstanding  at any given time does not include  shares  owned or held by or for
the account of the Company,  and the  disposition of any shares so owned or held
will be considered an issue or sale of Common Stock.

                  (iv) Record Date. If the Company takes a record of the holders
of Common Stock for the purpose of  entitling  them (1) to receive a dividend or
other distribution payable in Common Stock, Options or in convertible securities
or (2) to  subscribe  for or  purchase  Common  Stock,  Options  or  convertible
securities,  then such record date will be deemed to be the date of the issue or
sale of the shares of Common  Stock  deemed to have been issued or sold upon the
declaration  of such  dividend or the making of such other  distribution  or the
date of the granting of such right of subscription or purchase,  as the case may
be.

            (d)  Adjustment  of  Warrant  Exercise  Price  upon  Subdivision  or
Combination  of  Common  Stock.  If the  Company  at any time  after the date of
issuance  of this  Warrant  subdivides  (by any  stock  split,  stock  dividend,
recapitalization  or otherwise) one or more classes of its outstanding shares of
Common  Stock into a greater  number of shares,  any Warrant  Exercise  Price in
effect immediately prior to such subdivision will be proportionately reduced and
the number of shares of Common Stock  obtainable  upon  exercise of this Warrant
will be proportionately  increased. If the Company at any time after the date of
issuance  of this  Warrant  combines  (by  combination,  reverse  stock split or
otherwise) one or more classes of its outstanding  shares of Common Stock into a
smaller number of shares, any Warrant Exercise Price in effect immediately prior
to such combination will be proportionately  increased and the number of Warrant
Shares issuable upon exercise of this Warrant will be proportionately decreased.
Any  adjustment  under this Section 8(d) shall become  effective at the close of
business on the date the subdivision or combination becomes effective.

                                       10
<PAGE>

            (e) Distribution of Assets. If the Company shall declare or make any
dividend or other  distribution  of its assets (or rights to acquire its assets)
to holders of Common Stock, by way of return of capital or otherwise (including,
without  limitation,  any  distribution  of cash,  stock  or  other  securities,
property or options by way of a dividend, spin off, reclassification,  corporate
rearrangement  or other similar  transaction)  (a  "Distribution"),  at any time
after the issuance of this Warrant, then, in each such case:

                  (i) any Warrant Exercise Price in effect  immediately prior to
the close of business on the record date fixed for the  determination of holders
of Common Stock entitled to receive the Distribution shall be reduced, effective
as of the close of  business  on such  record  date,  to a price  determined  by
multiplying such Warrant Exercise Price by a fraction of which (A) the numerator
shall  be the  Closing  Sale  Price  of the  Common  Stock  on the  trading  day
immediately  preceding such record date minus the value of the  Distribution (as
determined in good faith by the Company's Board of Directors)  applicable to one
share of Common Stock,  and (B) the denominator  shall be the Closing Sale Price
of the Common Stock on the trading day  immediately  preceding such record date;
and

                  (ii) either (A) the number of Warrant Shares  obtainable  upon
exercise of this  Warrant  shall be increased to a number of shares equal to the
number of shares of Common Stock  obtainable  immediately  prior to the close of
business  on the record  date fixed for the  determination  of holders of Common
Stock entitled to receive the  Distribution  multiplied by the reciprocal of the
fraction set forth in the immediately  preceding clause (i), or (B) in the event
that the  Distribution  is of common  stock of a company  whose  common stock is
traded on a  national  securities  exchange  or a national  automated  quotation
system,  then the holder of this Warrant shall receive an additional  warrant to
purchase  Common  Stock,  the terms of which shall be identical to those of this
Warrant,  except that such warrant shall be  exercisable  into the amount of the
assets that would have been  payable to the holder of this  Warrant  pursuant to
the Distribution had the holder exercised this Warrant immediately prior to such
record date and with an exercise price equal to the amount by which the exercise
price of this Warrant was decreased with respect to the Distribution pursuant to
the terms of the immediately preceding clause (i).

            (f) Certain Events.  If any event occurs of the type contemplated by
the  provisions  of  this  Section  8 but  not  expressly  provided  for by such
provisions  (including,  without limitation,  the granting of stock appreciation
rights,  phantom  stock rights or other rights with equity  features),  then the
Company's Board of Directors will make an appropriate  adjustment in the Warrant
Exercise Price and the number of shares of Common Stock obtainable upon exercise
of this  Warrant so as to protect  the  rights of the  holders of the  Warrants;
provided,  except as set forth in section 8(d),that no such adjustment  pursuant
to this Section 8(f) will  increase the Warrant  Exercise  Price or decrease the
number of shares of Common Stock obtainable as otherwise  determined pursuant to
this Section 8.

                                       11
<PAGE>

            (g) Notices.

                  (i)  Immediately  upon any adjustment of the Warrant  Exercise
Price,  the  Company  will give  written  notice  thereof  to the holder of this
Warrant, setting forth in reasonable detail, and certifying,  the calculation of
such adjustment.

                  (ii) The  Company  will give  written  notice to the holder of
this  Warrant  at least  ten (10) days  prior to the date on which  the  Company
closes  its  books  or  takes a  record  (A) with  respect  to any  dividend  or
distribution   upon  the  Common  Stock,  (B)  with  respect  to  any  pro  rata
subscription  offer to holders of Common Stock or (C) for determining  rights to
vote with  respect to any Organic  Change (as  defined  below),  dissolution  or
liquidation,  provided that such  information  shall be made known to the public
prior to or in conjunction with such notice being provided to such holder.

                  (iii) The Company will also give written  notice to the holder
of this  Warrant at least ten (10) days  prior to the date on which any  Organic
Change,   dissolution  or  liquidation  will  take  place,  provided  that  such
information  shall be made known to the public prior to or in  conjunction  with
such notice being provided to such holder.

      Section   9.   Purchase    Rights;    Reorganization,    Reclassification,
Consolidation, Merger or Sale.

            (a) In addition to any  adjustments  pursuant to Section 8 above, if
at any  time the  Company  grants,  issues  or sells  any  Options,  Convertible
Securities or rights to purchase stock,  warrants,  securities or other property
pro rata to the  record  holders  of any class of Common  Stock  (the  "Purchase
Rights"),  then the holder of this Warrant will be entitled to acquire, upon the
terms  applicable to such Purchase Rights,  the aggregate  Purchase Rights which
such holder could have  acquired if such holder had held the number of shares of
Common Stock  acquirable  upon  complete  exercise of this  Warrant  immediately
before  the date on which a record is taken for the grant,  issuance  or sale of
such Purchase  Rights,  or, if no such record is taken, the date as of which the
record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights.

            (b)   Any   recapitalization,    reorganization,   reclassification,
consolidation,  merger, sale of all or substantially all of the Company's assets
to another Person or other  transaction in each case which is effected in such a
way that  holders of Common Stock are  entitled to receive  (either  directly or
upon subsequent  liquidation) stock,  securities or assets with respect to or in
exchange for Common Stock is referred to herein as an "Organic Change." Prior to
the  consummation of any (i) sale of all or  substantially  all of the Company's
assets to an acquiring  Person or (ii) other Organic Change  following which the
Company is not a  surviving  entity,  the  Company  will  secure from the Person
purchasing  such assets or the successor  resulting from such Organic Change (in
each case,  the "Acquiring  Entity") a written  agreement (in form and substance
satisfactory to the holders of Warrants  representing at least  two-thirds (iii)
of the Warrant Shares  issuable upon exercise of the Warrants then  outstanding)
to deliver to each holder of Warrants in exchange for such Warrants,  a security
of the Acquiring Entity evidenced by a written instrument  substantially similar
in form and  substance  to this Warrant and  satisfactory  to the holders of the
Warrants  (including an adjusted  warrant  exercise price equal to the value for
the Common Stock reflected by the terms of such  consolidation,  merger or sale,
and exercisable for a corresponding  number of shares of Common Stock acquirable
and receivable  upon exercise of the Warrants  without regard to any limitations
on  exercise,  if the value so  reflected  is less than any  Applicable  Warrant
Exercise Price immediately prior to such  consolidation,  merger or sale). Prior
to the  consummation  of any  other  Organic  Change,  the  Company  shall  make
appropriate  provision  (in form and  substance  satisfactory  to the holders of
Warrants representing a majority of the Warrant Shares issuable upon exercise of
the  Warrants  then  outstanding)  to  insure  that each of the  holders  of the
Warrants will  thereafter have the right to acquire and receive in lieu of or in
addition  to (as the case may be) the  Warrant  Shares  immediately  theretofore
issuable and  receivable  upon the exercise of such holder's  Warrants  (without
regard to any  limitations  on  exercise),  such shares of stock,  securities or
assets  that would  have been  issued or payable  in such  Organic  Change  with
respect to or in exchange for the number of Warrant Shares which would have been
issuable and  receivable  upon the exercise of such  holder's  Warrant as of the
date of such Organic  Change  (without  taking into account any  limitations  or
restrictions on the exercisability of this Warrant).

                                       12
<PAGE>

      Section 10. Lost, Stolen,  Mutilated or Destroyed Warrant. If this Warrant
is lost, stolen,  mutilated or destroyed, the Company shall promptly, on receipt
of an indemnification  undertaking (or, in the case of a mutilated Warrant,  the
Warrant),  issue a new Warrant of like denomination and tenor as this Warrant so
lost, stolen, mutilated or destroyed.

      Section 11. Notice. Any notices, consents, waivers or other communications
required or  permitted  to be given under the terms of this  Warrant  must be in
writing  and will be deemed  to have  been  delivered:  (i) upon  receipt,  when
delivered  personally;  (ii)  upon  receipt,  when sent by  facsimile  (provided
confirmation  of  receipt is  received  by the  sending  party  transmission  is
mechanically or electronically generated and kept on file by the sending party);
or (iii) one Business Day after deposit with a nationally  recognized  overnight
delivery  service,  in each case properly  addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

If to Cornell:            Cornell Capital Partners, LP
                          101 Hudson Street - Suite 3700
                          Jersey City, NJ  07302
                          Attention: Mark A. Angelo
                          Telephone: (201) 985-8300
                          Facsimile: (201) 985-8266

With Copy to:             David Gonzalez, Esq.
                          101 Hudson Street - Suite 3700
                          Jersey City, NJ 07302
                          Telephone: (201) 985-8300
                          Facsimile: (201) 985-8266

If to the Company, to:    Ariel Way, Inc.
                          8000 Towers Crescent Drive
                          Suite 1220
                          Vienna, VA  22182
                          Attention: Arne Dunhem, Chief Executive Officer
                          Telephone: (703) 918-2420
                          Facsimile: (703) 918-2450

With a copy to:           Kirkpatrick & Lockhart Nicholson Graham LLP
                          201 South Biscayne Boulevard - Suite 2000
                          Miami, FL  33131-2399
                          Attention: Clayton E. Parker, Esq.
                          Telephone: (305) 539-3300
                          Facsimile: (305) 358-7095

                                       13

<PAGE>

If to a holder of this Warrant,  to it at the address and  facsimile  number set
forth on Exhibit C hereto,  with copies to such holder's  representatives as set
forth on Exhibit C, or at such other address and facsimile as shall be delivered
to the Company upon the issuance or transfer of this  Warrant.  Each party shall
provide  five days'  prior  written  notice to the other  party of any change in
address or facsimile  number.  Written  confirmation of receipt (A) given by the
recipient of such notice, consent, facsimile, waiver or other communication, (or
(B) provided by a nationally  recognized  overnight  delivery  service  shall be
rebuttable evidence of personal service,  receipt by facsimile or receipt from a
nationally  recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

      Section 12. Date.  The date of this Warrant is set forth on page 1 hereof.
This  Warrant,  in all events,  shall be wholly void and of no effect  after the
close of business on the Expiration Date, except that  notwithstanding any other
provisions  hereof,  the provisions of Section 8(b) shall continue in full force
and effect after such date as to any Warrant Shares or other  securities  issued
upon the exercise of this Warrant.

      Section 13. Amendment and Waiver. Except as otherwise provided herein, the
provisions  of the  Warrants  may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it,  only if the  Company has  obtained  the  written  consent of the holders of
Warrants  representing  at least  two-thirds of the Warrant Shares issuable upon
exercise of the Warrants then  outstanding;  provided  that,  except for Section
8(d),  no such action may  increase the Warrant  Exercise  Price or decrease the
number of shares  or class of stock  obtainable  upon  exercise  of any  Warrant
without the written consent of the holder of such Warrant.

                                       14
<PAGE>

      Section 14. Descriptive Headings;  Governing Law. The descriptive headings
of the  several  sections  and  paragraphs  of this  Warrant  are  inserted  for
convenience  only and do not  constitute a part of this  Warrant.  The corporate
laws of the State of New Jersey shall govern all issues  concerning the relative
rights of the Company and its stockholders.  All other questions  concerning the
construction,  validity,  enforcement and interpretation of this Agreement shall
be governed by the  internal  laws of the State of New  Jersey,  without  giving
effect to any choice of law or conflict of law provision or rule (whether of the
State of New Jersey or any other jurisdictions) that would cause the application
of the laws of any jurisdictions  other than the State of New Jersey. Each party
hereby  irrevocably  submits  to the  exclusive  jurisdiction  of the  state and
federal courts sitting in Hudson County and the United States District Court for
the District of New Jersey,  for the adjudication of any dispute hereunder or in
connection herewith or therewith, or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding,  any claim that it is not personally  subject to the
jurisdiction of any such court,  that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each party hereby  irrevocably waives personal service of process and
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.

      Section 15. Waiver of Jury Trial. AS A MATERIAL  INDUCEMENT FOR EACH PARTY
HERETO TO ENTER INTO THIS WARRANT,  THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING  RELATED IN ANY WAY TO THIS WARRANT AND/OR
ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

      IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as of
the date first set forth above.

                                         ARIEL WAY, INC.

                                         By:___________________________
                                            Name:  Arne Dunhem
                                            Title: Chief Executive Officer

                                       15
<PAGE>

                              EXHIBIT A TO WARRANT

                                 EXERCISE NOTICE

                                 TO BE EXECUTED
                BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                                 ARIEL WAY, INC.

      The   undersigned   holder   hereby   exercises   the  right  to  purchase
______________  of the shares of Common Stock  ("Warrant  Shares") of Ariel Way,
Inc., a Florida  corporation (the "Company"),  evidenced by the attached Warrant
(the "Warrant").  Capitalized  terms used herein and not otherwise defined shall
have the respective meanings set forth in the Warrant.

      1. Form of Warrant  Exercise Price. The Holder intends that payment of the
Warrant  Exercise  Price  shall  be  made  on  a  Cash  Basis  with  respect  to
______________ Warrant Shares.

      2.  Payment of Warrant  Exercise  Price.  The holder  shall pay the sum of
$______________ to the Company in accordance with the terms of the Warrant.

      3.  Delivery of Warrant  Shares.  The Company  shall deliver to the holder
_________ Warrant Shares in accordance with the terms of the Warrant.

Date: _______________ __, ______

Name of Registered Holder

By:
   -----------------------------------------

Name:
     ---------------------------------------

Title:
      --------------------------------------

                                      A-1

<PAGE>

                              EXHIBIT B TO WARRANT

                              FORM OF WARRANT POWER

      FOR VALUE  RECEIVED,  the  undersigned  does hereby assign and transfer to
________________,  Federal Identification No. __________,  a warrant to purchase
____________  shares  of the  capital  stock  of  Ariel  Way,  Inc.,  a  Florida
corporation,  represented by warrant certificate no. _____, standing in the name
of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably  constitute  and appoint  ______________,  attorney to transfer  the
warrants of said corporation, with full power of substitution in the premises.

Dated: __________________________

                                     By:
                                        ----------------------------------------

                                     Name:
                                          --------------------------------------

                                     Title:
                                           -------------------------------------

                                      B-1Exhibit
      10.1

    

    THIRD
      AMENDMENT TO OEM PURCHASE AGREEMENT 

     

    This
      Third Amendment (the “Amendment”) is made as of June 10, 2005, by and between
      Cardiac Science, Inc., a Delaware corporation (“Supplier” or “Cardiac Science”
      or “CSI”), a medical device developer and manufacturer of automated external
      defibrillators having its principal place of business at 1900 Main Street,
      Irvine, CA 92614 and GE Medical Systems Information Technologies, Inc., a
      Wisconsin corporation d/b/a GE Healthcare (“GEMS-IT”), having its principal
      place of business at 8200 W. Tower Avenue, Milwaukee, WI 53223. 

     

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      CSI
      and
      GEMS-IT are
      parties to that certain OEM Purchase Agreement dated July 29, 2003, Amendment
      One to OEM Purchase Agreement dated August 10, 2004 (“Amendment One”) and Second
      Amendment to OEM Purchase Agreement dated February 14, 2005 (collectively,
      the
“OEM Purchase Agreement”).

     

    WHEREAS,
      CSI and GEMS-IT desire to supplement and further amend the OEM
      Purchase Agreement as
      set
      forth herein.

     

    NOW
      THEREFORE, in consideration of the premises and other good and valuable
      consideration, the receipt and adequacy of which are hereby acknowledged, the
      parties hereto agree as follows: 

     

    1.  Construction.
      Except
      as provided in this Amendment, the terms and conditions set forth in the
OEM
      Purchase Agreement shall
      remain unaffected by the execution of this Amendment. To the extent any
      provisions or terms set forth in this Amendment conflict with the terms set
      forth in the OEM
      Purchase Agreement,
      the
      terms set forth in this Amendment shall govern and control. Terms not otherwise
      defined herein, shall have the meanings set forth in the OEM
      Purchase Agreement.
      This
      Amendment amends the OEM Purchase Agreement and not that certain OEM Purchase
      and Supply Agreement entered into by the parties on July 29, 2003.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.  Section
      1.5 is hereby amended by inserting the following sentence at the end of such
      section:

     

    “For
      the
      purposes of this Agreement, “GEMS-IT” shall include GEMS-IT and any GEMS-IT
      Affiliate or GEMS-IT Subcontractor (including distributors) involved in the
      marketing, sale, distribution or servicing of the OEM Products.”

    

    3.  Section
      1.6 is hereby deleted in its entirety and replaced with the
      following:

     

    “Term
      of Agreement.
      This
      Agreement will commence as of the Effective Date and continue until the latter
      to occur of: (a) three (3) years after the date of the first delivery to GEMS-IT
      by Cardiac Science of the OEM Products capable of commercial resale by GEMS-IT
      in the United States and European countries accepting the CE Mark (the “First
      Delivery Date) or (b) December 31, 2008 (the “Term”), unless terminated earlier
      under the terms of this Agreement. If the First Delivery Date has not occurred
      prior to December 31, 2005, GEMS-IT may at its option terminate this Agreement.
      

    

    Renewal
      Option.
      After
      the initial Term, this Agreement may be extended for up to two (2) additional
      one-year periods at the option of GEMS-IT, provided that at least two thousand
      one hundred and twenty five (2,125) units of OEM Products were purchased in
      the
      twelve- (12) month period immediately preceding each such additional
      period.  The parties agree to review and adjust, by mutual agreement
      and in
      good faith, the pricing of the OEM Products for any such additional periods,
      to
      take into account any material changes in the component or assembly costs of
      the
      OEM Products. If the parties are unable to mutually agree on such pricing
      adjustment, the supply of OEM Products shall continue unabated, and the pricing
      adjustment shall be resolved in accordance with the arbitration provision
      contained in this Agreement, which pricing adjustment shall apply to all OEM
      Products purchased during the extension.”

    

    4.  Section
      2.16 is hereby deleted in its entirety and replaced with the
      following:

     

    ““Parts”
      means
      the Service Parts and the Supplies and Accessories, collectively. “Service
      Parts” means the replacement parts and components used to service, maintain and
      repair the OEM Products. “Supplies and Accessories” means the accessories,
      consumables and other products that may be supplied in conjunction with, used
      with, or used as additions to the OEM Products.”

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    5.  The
      third
      sentence of Section 3.4 is hereby deleted in its entirety and replaced with
      the
      following:

     

    “During
      the initial Term, GEMS-IT shall purchase from Supplier a minimum of four hundred
      and twenty five (425) units of the OEM Products per calendar quarter (“Quarterly
      Minimum Purchase”), commencing with the first full calendar quarter after the
      First Delivery Date; provided, that (i) the OEM Products perform in accordance,
      and fully comply, with the Specifications and (ii) all regulatory approvals
      remain in full effect in accordance with Section 14.3. If any of the above
      conditions are not satisfied, then GEMS-IT shall be released from the Quarterly
      Minimum Purchase obligations for the quarter(s) in which such conditions are
      not
      satisfied. Any purchases in excess of one quarter’s Quarterly Minimum Purchase
      will count toward the next Quarterly Minimum Purchase obligation that is not
      released; therefore, GEMS-IT’s aggregate Quarterly Minimum Purchase requirement
      over the initial Term will not exceed five thousand nine hundred and fifty
      (5,950) units. If a Quarterly Minimum Purchase obligation is waived or released,
      GEMS-IT shall still be entitled to carry forward any purchases in excess of
      the
      Quarterly Minimum Purchase obligation that would otherwise have been in
      effect.”

    

    6.  Section
      3.5 is hereby deleted in its entirety and replaced with the
      following:

     

    “The
      Lead
      Time for the OEM Products is two (2) weeks for
      Order(s) of units of OEM Products that are within one hundred and ten percent
      (110%) of the respective Quarterly Minimum Purchase obligation; provided,
      however, that for the last four (4) weeks of the quarter, the Lead Time will
      be
      one (1) week for the remaining amount of the Quarterly Minimum Purchase
      obligation.
      Supplier will fully support GEMS-IT’s desire to deliver goods to its customers
      within seven (7) days of order placement and agrees that it is in the mutual
      business interest of the parties to ship the OEM Products on the next day or
      as
      soon as practicable after receipt of an Order. 

    

    If,
      during any calendar quarter, Supplier fails to meet three (3) or more Delivery
      Dates it has confirmed or that has been deemed accepted in accordance with
      Section 3.2, GEMS-IT will be released from the Quarterly Minimum Purchase for
      such quarter.”

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    7.  Section
      9.4.2 is hereby deleted in its entirety and replaced with the
      following:

     

    “Customer
      and Warranty Service. Outside
      the United States and Canada, customer service calls will be handled by GEMS-IT.
      If a customer calls GEMS-IT with a Product Warranty issue (GEMS-IT fields the
      warranty call), GEMS-IT will inform Supplier of the warranty call and will
      receive a RMA from Supplier. GEMS-IT or its customer will return the OEM Product
      for repair or replacement to Supplier’s facility in Minnetonka, MN or the then
      current repair facility location, unless however, the repair is determined
      by
      the parties to be minor in nature, whereby based on the mutual agreement of
      the
      parties, qualified GEMS-IT service personnel may affect the minor repair on
      behalf of Supplier. In such instances, Supplier shall provide the replacement
      parts at no cost to GEMS-IT and GEMS-IT shall not charge Supplier any fee for
      facilitating the repair. The parties agree to work together subsequent to the
      launch of the OEM Product to define which minor repairs may be facilitated
      by
      GEMS-IT and to more precisely determine the parameters of the collaboration.
      In
      all other instances, Supplier will repair or replace the OEM Product and deliver
      the OEM Product to a location requested by GEMS-IT within two (2) weeks of
      Supplier’s receipt of a returned OEM Product. Within the United States and
      Canada, customer service calls will be handled directly by Cardiac Science,
      and
      all repaired or replaced OEM Products must be delivered within two (2) weeks
      of
      Supplier’s receipt of a returned OEM Product. Supplier and GEMS-IT shall work
      together to ensure prompt communication to the other party of all customer
      communication.

    

    Loaner
      Inventory.
      Within
      thirty (30) days of receipt of FDA clearance of the OEM Product, Cardiac Science
      shall provide, at no cost to GEMS-IT, eighteen (18) OEM Products to be used
      by
      GEMS-IT as loaner inventory and to facilitate warranty exchanges for end users.
      These units shall be suitably configured with local languages as per GEMS-IT
      instructions. In all cases, freight charges to and from Supplier’s facility for
      warranty service and loaner inventory will be paid by Supplier. 

    

    Out
      of
      Warranty Service.
      Outside
      the United States and Canada, if
      GEMS-IT requires out of warranty service from Cardiac Science, GEMS-IT will
      bill
      the customer as appropriate per GEMS-IT policies. GEMS-IT will inform Supplier
      of the customer issue and will receive a RMA from Supplier. GEMS-IT or its
      customer will return the product to Supplier’s facility as outlined above.
      Supplier will repair and deliver the product to a location requested by GEMS-IT
      within two (2) weeks of Supplier’s receipt of a returned OEM Product. Supplier
      will bill GEMS-IT at a discount to Supplier’s then current service fee schedule,
      which service fee schedule shall not exceed the amount Supplier charges (after
      discounts) for providing similar services to its own customers. GEMS-IT will
      bill the customer for the service provided. Within the United States and Canada,
      out of warranty customer service calls will be handled directly by Cardiac
      Science, and all repaired OEM Products shall be delivered within two (2) weeks
      of Supplier’s receipt of a returned OEM Product. The parties agree that a list
      of out of warranty services, including prices and the discount rate described
      above, will be added to this Agreement within sixty (60) days of the effective
      date of the third amendment to this Agreement, or such later date as is mutually
      agreed upon by the parties. 

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Service
      Training.
      Within
      the first year after the launch of the OEM Product, Supplier agrees conduct,
      at
      no cost to GEMS-IT, two (2) service training sessions at mutually agreed upon
      date(s) in order to train qualified GEMS-IT service personnel to provide
      post-warranty repair of OEM Products. Said training shall be conducted at
      Supplier’s premises and the parties shall each bear its own travel costs. After
      the initial year, Supplier agrees to conduct an annual service training session
      at a mutually agreed upon location and date.

    

    Service
      Parts.
      Outside
      the United States and Canada, if Parts are required by either GEMS-IT or its
      customers, GEMS-IT will inform Supplier and request direct shipment of such
      Parts to GEMS-IT or its customer. Supplier will bill GEMS-IT at a discount
      to
      Supplier’s then current service parts schedule, which service parts schedule
      shall not exceed the amount Supplier charges (after discounts) for providing
      similar parts to its own customers. The parties agree that a list of Parts,
      including prices and the discount rate described above, will be added to this
      Agreement within sixty (60) days of the effective date of the third amendment
      to
      this Agreement, or such later date as is mutually agreed upon by the parties.
      Within the United States and Canada, if Service Parts are requested by a GEMS-IT
      customer, Supplier may sell such Service Parts directly to such customer.

    

    Quality
      Reports.
      Supplier
      will provide, on a monthly basis, a quality assurance report, which will include
      a listing of all product related corrective and preventative action reports
      (CAPAs) issued globally for OEM Products (regardless of brand), and a detailed
      description of the root cause analysis of the reason for the report. Upon
      request, Supplier will provide GEMS-IT with additional information on any item
      that appears in the quality assurance report and participate in phone calls
      with
      GEMS-IT regarding the same.
      Supplier
      will provide, on a monthly basis, a report listing all RMAs issued globally
      for
      OEM Products, and a detailed description of the root cause analysis of the
      reason for the return. Supplier shall promptly respond to GEMS-IT’s reasonable
      inquiries regarding such RMAs and, if they involve GEMS-IT’s customers, the
      resolution of such RMAs.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    Confidentiality
      of Customer Information.
      Supplier
      agrees that any customer-related information obtained by Supplier as a result
      of
      its interaction with GEMS-IT customers will be deemed to be GEMS-IT’s
“Confidential Information”, and will not be used by Supplier for any commercial
      reason other than to fulfill its obligations under this Agreement. For clarity,
      this provision shall not restrict Supplier in any way from doing business with,
      from transmitting information, or otherwise soliciting entities or organizations
      that happen to be GEMS-IT customers provided that Supplier has not obtained
      the
      names, addresses and contact information for such entities or organizations
      by
      reviewing the GEMS-IT Confidential Information.”

    

    8.  Section
      9.5 is hereby amended by inserting the following sentence at the end of such
      section:

     

    “The
      prices for such replacement parts, technical support, repair services and
      exchange units shall be calculated by adding a reasonable margin to Supplier’s
      cost of procuring or producing such parts, support, services and units, and
      shall not exceed the amount Supplier charges (after discounts) for providing
      similar parts, support, services and units to its own customers. The parties
      agree that a list of such items, including prices, will be added to this
      Agreement within sixty (60) days of the effective date of the third amendment
      to
      this Agreement, or such later date as shall be mutually agreed upon by the
      parties.”

    

    9.  Section
      14.3 is hereby amended by inserting the following sentence after the sentence
      “Supplier shall be responsible for providing all necessary objective evidence
      and other documentation to GEMS-IT to support these filings.”:

     

    “Supplier
      shall provide GEMS-IT Regulatory Affairs with any proposed submission to the
      US
      Food & Drug Administration, no less than five (5) working days prior to the
      proposed submission date, in order for GEMS-IT Regulatory Affairs to review
      and
      revise any such proposed submission with the intention of uncovering any errors
      or omissions which might cause a delay in approval. Supplier shall consider
      revising its proposed submissions to include any reasonable revisions that
      GEMS-IT Regulatory Affairs shall make to any such submissions, but shall have
      no
      obligation to do so.”

     

    10.  Exhibit
      C
      is hereby amended by replacing “Responder 2000” with “OEM Products” each time
“Responder 2000” appears. The parties agree that the Exhibit C attached to
      Amendment One is the Exhibit C in effect at the time of this
      Amendment.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    11.  The
      portion of Exhibit C that begins “Each Responder 2000 defibrillator package
      includes:” is hereby deleted in its entirety and replaced with the
      following:

     

    “Each
      OEM
      Product package includes: 

     

    
      	·  	One OEM Product, one pair of defibrillation paddles,
              one
              rechargeable battery, one power cord and one user
              manual.

      	 	 

      	·  	
              Upon
                request of GEMS-IT, Supplier agrees that certain additional items,
                including without limitation patient cables, electrodes and Sp02
                sensors,
                will be kitted together with the OEM Product for an additional charge
                of
                two hundred and fifty dollars ($250) per package kitted. For example,
                Supplier’s kitting an order for one Powerheart ECD package (which includes
                one defibrillator, one user manual, one battery, & one power cord)
                shall entitle Supplier to a fee of $250—regardless of the value of the
                additional accessories to be shipped along with this one ECD package.
                Supplier may purchase such additional items from GEMS-IT’s accessory
                suppliers at the same prices at which GEMS-IT is entitled to purchase.
                Supplier will transfer these accessories to GEMS-IT with no mark-up.
                At
                its sole discretion, GEMS-IT may choose to take over this kitting
                responsibility from Supplier after first giving Supplier ninety (90)
                days
                notice of its intent.”

            

    

    

    12.  Exhibit
      C
      is hereby amended by inserting the following immediately below the Quantity
      Purchase Volume schedule: 

     

    “Volume
      discounts shall be determined by aggregating all purchases made by or through
      GEMS-IT, its Affiliates or distributors, regardless of how such OEM Products
      are
      branded. The parties agree that the charges on all invoices for OEM Products,
      regardless of the volume actually purchased, will remain at the pricing for
      the
      initial 1,000 units of an OEM Product, and within thirty (30) days following
      the
      end of any calendar year (including the year following the expiration of the
      Term), Supplier will provide Purchaser with a written accounting of the
      purchasing volume for all OEM Products as well as immediate payment to GEMS-IT
      for any discounts earned during the previous year. GEMS-IT will then have the
      opportunity to provide a written response to Supplier of whether it agrees
      or
      disagrees with such accounting; acceptance of the immediate payment shall not
      be
      construed as agreement with Supplier’s conclusions.”

    

    13.  Section
      7
      of Amendment One is hereby amended by deleting the following words from the
      fourth sentence of the first paragraph: “in the United States and
      Canada”.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    14.  Section
      7
      of Amendment One is hereby amended by inserting a new subsection (d) to read
      as
      follows:

     

    “(d) If
      CSI
      receives a request for OEM Products or Parts (provided, however, that this
      shall
      only be read as Supplies and Accessories in the United States and Canada),
      CSI
      will refer the request to GEMS-IT to provide such OEM Products or Parts.”

     

    15.   Branding.
      Supplier agrees that the branding on all of Supplier’s non-OEM defibrillator
      products that are sold into the hospital market in the United States and Canada,
      including without limitation, the Powerheart ECD, shall remain branded as
“Powerheart”, with the Cardiac Science name or logo. Supplier has the right
to
      change
      the brand name, provide however, that Supplier receives prior written consent
      from GEMS-IT, which shall not be unreasonably withheld. 

     

    16.  Governing
      Law.
      The
      validity, construction, performance and enforceability of this Amendment shall
      be governed in all respects by the laws of the State of New York, without
      reference to the choice-of-law provisions thereof.

     

    17.  Counterparts;
      Facsimile.
      This
      Amendment may be executed simultaneously in multiple counterparts, each of
      which
      shall be deemed an original, but all of which taken together shall constitute
      one and the same instrument. Execution and delivery of this Amendment by
      exchange of facsimile copies bearing the facsimile signature of a party hereto
      shall constitute a valid and binding execution and delivery of this Amendment
      by
      such party. Such facsimile copies shall constitute enforceable original
      documents.

     

    18.  Severability.
      In the
      event any provision of this Amendment shall be determined to be invalid or
      unenforceable under applicable law, all other provisions of this Amendment
      shall
      continue in full force and effect unless such invalidity or unenforceability
      causes substantial deviation from the underlying intent of the parties expressed
      in this Amendment or unless the invalid or unenforceable provisions comprise
      an
      integral part of, or in inseparable from, the remainder of this Amendment.
      If
      this Amendment continues in full force and effect as provided above, the parties
      shall replace the invalid provision with a valid provision which corresponds
      as
      far as possible to the spirit and purpose of the invalid provision.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    19.  Interpretation.
      This
      Amendment has been negotiated at arm’s length and between persons sophisticated
      and knowledgeable in the matters dealt with in this Amendment. Each party has
      been represented by experienced and knowledgeable legal counsel. Accordingly,
      any rule of law or legal decision that would require interpretation of any
      ambiguities in this Amendment against the party that has drafted it is not
      applicable and is waived. The provisions of this Amendment shall be interpreted
      in a reasonable manner to effect the purposes of the parties and this
      Amendment.

     

    20.  Entire
      Agreement.
      The
      terms of this Amendment are intended by the parties to be the final expression
      of their agreement with respect to the subject matter hereof and may not be
      contradicted by evidence of any prior or contemporaneous agreement. The parties
      further intend that this Amendment constitute the complete and exclusive
      statement of its terms and shall supersede any prior agreement with respect
      to
      the subject matter hereof.

     

    21.  Headings.
      The
      article and section headings contained in this Amendment are for reference
      purposes only and will not affect in any way the meaning or interpretation
      of
      this Amendment.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      IN
        WITNESS WHEREOF, the parties have caused this Amendment to be signed by their
        thereunto duly authorized representatives as of the date first above
        written.

       

    

     

    
      	Cardiac Science, Inc.	 	 	GE Medical Systems
	 	 	 	Information Technologies, Inc.
	 	 	 	 
	By:
              /s/ Raymond W. Cohen 	 	 	By:
              /s/ Matthias Weber
	
              

            	 	 	
              

            
	
              Name:
                Raymond W. Cohen

              Title:
                Chairman and CEO

            	 	 	
              Name:
                Matthias Weber

              Title:
                Vice President & General Manager

              Cardiology
                Systems

            

    
      
         

      

       10

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