Document:

Unassociated Document

    

      AMENDMENT
        NO. 1

    

     

    Execution
      Copy

     

    EXHIBIT
      10.1

    
       
AMENDMENT
      NO. 1 TO SECURITIES PURCHASE AGREEMENT

     

    Amendment
      No. 1 to Securities Purchase Agreement by and among Carsunlimited.com, a Nevada
      corporation (the “Company”), Mellon HBV Master U.S. Event Driven Fund LP and
      Mellon HBV Master Global Event Driven Fund LP (collectively, “Investors”), who
      are signatories to the Securities Purchase Agreement dated as of August 9,
      2006
      (the “Agreement”) between the Company and the Investors. Capitalized terms used
      but not otherwise defined in this Amendment have the meanings assigned to them
      in the Agreement. This Amendment also amends the Registration Rights Agreement
      among the parties, as set forth below.

     

    RECITALS

     

    A.  WHEREAS,
      pursuant to the Agreement, the Investors purchased Notes and Warrants of the
      Company; 

     

    B.  WHEREAS,
      the Agreement provided for the issuance of additional stock purchase warrants
      to
      the Investors if certain EBITDA tests were not met (“EBITDA Shortfall
      Warrants”); 

     

    C.  WHEREAS,
      the Company has obtained $700,000 in advance funding from a prospective customer
      (the “Prospective Customer”) for the purchase of molds and tooling so that it
      may produce pre-production samples of a specially designed dual chamber
      dispensing pump (“New Product”) for the customer’s testing and acceptance, and
      has provided to the Investors evidence of its receipt of such funding;
      and

     

    D.  WHEREAS,
      the Company and the Investors wish to amend the Agreement and the Registration
      Rights Agreement in the manner set forth in this Amendment. 

     

    AGREEMENT
      

    
       

      NOW,
        THEREFORE, in consideration of the foregoing and the promises and covenants
        contained herein and in the Agreement, and for other good and valuable
        consideration the receipt of which is acknowledged, the parties agree as
        follows: 

       

      1. Initial
        Additional Warrants.
        In
        consideration of the deletion of Section 7.2 and Schedule A from the Agreement,
        the Company shall issue to the Investors, within two business days of the
        Investors delivery of this Agreement to the Company, additional warrants,
        in the
        form of Exhibits A and B hereto, respectively, covering an aggregate of
        14,340,183.45 shares of common stock of the Company at an initial exercise
        price
        of $.02615 per share, with an expiration date of August 9, 2011 (the “Additional
        Warrants”; which defined term shall also include any Further Additional
        Warrants, if issued as contemplated by Section 2 below).

       

      2. Potential
        Further Additional Warrants.
        In the
        event that the New Product does not pass the testing requirements for the
        New
        Product that may be specified by the Prospective Customer by March 31, 2007,
        the
        Company shall issue to the Investors further additional warrants in
        substantially the form of Exhibits A and B hereto respectively, covering
        an
        aggregate of 14,340,183.45 shares of common stock of the Company at an initial
        exercise price of $.02615 per share, with an expiration date of August 9,
        2011
        (the “Further Additional Warrants”). Such Further Additional Warrants shall be
        issued by the Company on the earlier of (i) March 31, 2007 or (ii) five business
        days after the Company has received irrevocable written notice from the
        Prospective Customer that the New Product has not met the testing requirements
        specified by such prospective customer, and either (x) instructing the Company
        to cease efforts at attempting to meet the testing requirements set forth
        by the
        Prospective Customer or (y) informing the Company that the Prospective Customer
        will not enter into a supply agreement with the Company for the New Product.
        The
        Company covenants that it will promptly notify the Investors if it receives
        from
        the Prospective Customer the notice referred to in the preceding sentence,
        or if
        the New Product meets the testing requirements specified, and is accepted,
        by
        the Prospective Customer. No Further Additional Warrants will be issued if,
        no
        later than March 31, 2007, the Prospective Customer advises the Company in
        writing that the New Product meets the testing requirements specified, and
        is
        accepted, by the Prospective Customer.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      3. Amendment
        to Registration Rights Agreement.
        The
        terms “Registrable Securities” and the “Warrants”, as used in the Registration
        Rights Agreement, are each hereby amended to delete the phrase “EBITDA Shortfall
        Warrants” and insert, in lieu thereof, the phrase “Additional
        Warrants”.

       

      4.
         Effect
        of Amendment.
        Except
        as expressly modified by this Amendment, the Agreement and the Registration
        Rights Agreement shall remain unmodified and in full force and effect.

       

      5. Entire
        Agreement.
        This
        Amendment together with the Agreement and the Registration Rights Agreement
        constitute the full and entire understanding and agreement among the Company
        and
        the Investors with regard to the
        EBITDA Shortfall Warrants and the Additional Warrants.

       

      6. Headings. The
        headings contained in this Amendment are for convenience of reference only
        and
        are not to be given any legal effect and shall not affect the meaning or
        interpretation of this Amendment.

      

       

      

       

      SIGNATURE
        PAGES FOLLOW

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      IN
        WITNESS WHEREOF, the parties have executed this Amendment effective as of
        the
        date that the last party signs this Amendment. 

       

      

      
        	
                COMPANY:

                

                CARSUNLIMITED.COM,
                  INC.

                

                

                By:
                  ____________________________

                

                Name:
                  ___________________________

                

                Title:
                  ___________________________

                

                Address:
                  _________________________

                _________________________

                

                Facsimile
                  Number: ________________

                Date
                  of Signature: ________________

              

      

      

      

       

      

      Company
        Signature Page to Amendment to Securities Purchase Agreement

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      IN
        WITNESS WHEREOF, the parties have executed this Amendment effective as of
        the
        date that the last party signs this Amendment.

      

      

      
        	
                INVESTORS:

                

                MELLON
                  HBV MASTER U.S. EVENT 

                DRIVEN
                  FUND LP

                

                

                By:
                  ____________________________

                

                Name:
                  ___________________________

                

                Title:
                  ___________________________

                

                Address:
                  _________________________

                _________________________

                

                Facsimile
                  Number: ________________

                Date
                  of Signature: ________________

                

                

                 

                MELLON
                  HBV MASTER GLOBAL

                 

                EVENT
                  DRIVEN FUND LP

                 

                

                

                

                By:
                  ____________________________

                

                Name:
                  ___________________________

                

                Title:
                  ___________________________

                

                Address:
                  _________________________

                _________________________

                

                Facsimile
                  Number: ________________

                Date
                  of Signature: ________________

              

      

       

      Investors
        Signature Page to Amendment to Securities Purchase Agreement

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

       

      
        THE
          SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT
          AND
          HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          “SECURITIES
          ACT”).
          THESE
          SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
          OR
          AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OR UNDER STATE SECURITIES
          LAWS.
          THIS WARRANT MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED
          OF
          EXCEPT PURSUANT TO THE EXPRESS PROVISIONS OF THIS WARRANT, AND NO SALE,
          ASSIGNMENT, TRANSFER, OR OTHER DISPOSITION OF THIS WARRANT SHALL BE VALID
          OR
          EFFECTIVE UNLESS AND UNTIL SUCH PROVISIONS SHALL HAVE BEEN COMPLIED
          WITH.

      

      

      Date
        of
        Issuance: , 2006

      CARSUNLIMITED.COM,
        INC.

      Stock
        Purchase Warrant

      (Void
        after August 9, 2011)

      

      CARSUNLIMITED.COM,
        INC., a Nevada corporation (the “Company”), for value received, hereby certifies
        and agrees that MELLON HBV MASTER U.S. EVENT DRIVEN FUND, L.P. or its registered
        assigns (the “Registered Holder”), is entitled, subject to the terms set forth
        below, to purchase from the Company, at any time or from time to time on
        or
        after the date hereof (the “Date of Issuance”) and on or before 5:00 p.m. New
        York time on August 9, 2011 (such date and time, the “Expiration Time”), two
        million eight hundred sixty eight thousand and thirty seven plus forty
        five/hundredths (2,868,037.45) duly authorized, validly issued, fully paid
        and
        non-assessable shares of the Company’s
        common stock, $0.001 par value per share (the “Common Stock”)
        at an
        initial exercise price equal to $.02615 per share, subject to adjustment
        in
        certain cases as described herein. The shares issuable upon exercise of this
        Warrant, and the purchase price per share, are hereinafter referred to as
        the
“Warrant Shares” and the “Exercise Price,” respectively. The term “Warrant” as
        used herein shall include this Warrant and any other warrants delivered in
        substitution or exchange therefor, as provided herein. The Warrant shall
        terminate at the Expiration Time.

      

      This
        Warrant is issued pursuant to Amendment No. 1 effective as of October 17,
        2006
        to that certain Securities Purchase Agreement dated as of August 9, 2006
        by and
        among the Company and certain investors set forth therein (as so amended,
        the
“Securities Purchase Agreement”). 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	I.  	
              Exercise.
                

            

       

      

      Method
        of Exercise

       

      1.  This
        Warrant may be exercised by the Registered Holder at any time from time to
        time,
        in whole or in part, prior to the Expiration Time by surrendering this Warrant,
        with a Notice of Exercise in the form of Annex
        A
        hereto
        (the “Notice of Exercise”) duly executed by such Registered Holder or by such
        Registered Holder’s duly authorized attorney, at the principal office of the
        Company set forth on the signature page hereto, or at such other office or
        agency as the Company may designate in writing (the “Company’s Office”),
        accompanied by payment in full, in lawful money of the United States (by
        wire
        transfer of immediately available funds or by bank cashier’s or certified
        check), of the Exercise Price payable in respect of the number of shares
        of
        Warrant Shares purchased upon such exercise. In lieu of cash payment, the
        Warrant may be exercised through a cashless exercise in the manner set forth
        in
        Section 1.2 below.

       

       

      2.  Each
        exercise of this Warrant shall be deemed to have been effected immediately
        prior
        to the close of business on the day on which the appropriate Annex form shall
        be
        dated and directed to the Company (as evidenced by the applicable postmark
        or
        other evidence of transmittal) as provided in Section 1(a) hereof. At such
        time,
        the person or persons in whose name or names any certificates for Warrant
        Shares
        shall be issuable upon such exercise as provided in Section 1(c) hereof shall
        be
        deemed to have become the holder or holders of record of the Warrant Shares
        represented by such certificates.

       

       

      3.  As
        soon
        as practicable after the exercise of this Warrant, in full or in part, and
        in
        any event within ten (10) days thereafter, the Company, at its expense, will
        cause to be issued in the name of, and delivered to, the Registered Holder,
        or
        as such Registered Holder (upon payment by such Registered Holder of any
        applicable transfer taxes) may direct:

       

       

      	a.  	
              a
                certificate or certificates for the number of full Warrant Shares
                to which
                such Registered Holder shall be entitled upon such exercise plus,
                in lieu
                of any fractional share to which such Registered Holder would otherwise
                be
                entitled, cash in an amount determined pursuant to Section 4 hereof;
                and

            

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	b.  	
              in
                case such exercise is in part only, a new warrant or warrants (dated
                the
                date hereof) of like tenor, representing in the aggregate on the
                face or
                faces thereof the number of Warrant Shares equal (without giving
                effect to
                any adjustment therein) to the number of such shares called for on
                the
                face of this Warrant minus the number of such shares purchased by
                the
                Registered Holder upon such exercise as provided in Section 3 hereof
                or
                received pursuant to Section 1.2 hereof.

            

       

       

      Exercise
        by Surrender of Warrant.
        In
        addition to the method of payment set forth in Section 1.1 and in lieu of
        any
        cash payment required thereunder, the Warrant may be exercised by surrendering
        the Warrant in the manner specified in this Section 1.2, together with
        irrevocable instructions to the Company to issue in exchange for the Warrant
        the
        number of shares of Common Stock equal to the product of (x) the number of
        shares of Common Stock underlying the Warrants multiplied by (y) a fraction,
        the
        numerator of which is the Market Value (as defined below) of the Common Stock
        less the Exercise Price and the denominator of which is such Market Value.
        As
        used herein, the phrase “Market Value” at any date shall be deemed to be the
        last reported sale price, or, in case no such reported sale takes place on
        such
        day, the average of the last reported sale prices for the last three (3)
        trading
        days, in either case as officially reported by the principal securities exchange
        or “over the counter” (including on the pink sheets or bulletin board) exchange
        on which the Common Stock is listed or admitted to trading, or, if the Common
        Stock is not listed or admitted to trading on any national securities exchange
        or sold “over the counter”, the average closing bid price as furnished by the
        NASD through NASDAQ or similar organization if NASDAQ is no longer reporting
        such information, or if the Common Stock is not quoted on NASDAQ, as determined
        in good faith by resolution of the Board of Directors of the Company, based
        on
        the best information available to it.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	II.  	
              Shares
                to be Fully Paid; Reservation of Shares.
                The Company covenants and agrees that all shares of Common Stock
                which may
                be issued upon the exercise of the rights represented by this Warrant
                will, upon issuance by the Company, be validly issued, fully paid
                and
                nonassessable, and free from preemptive rights and free from all
                taxes,
                liens and charges with respect thereto. The Company further covenants
                and
                agrees that, from and after the Date of Issuance and during the period
                within which the rights represented by this Warrant may be exercised,
                the
                Company will at all times have authorized, and reserve, free from
                preemptive rights, out of its authorized but unissued shares of Common
                Stock, solely for the purpose of effecting the exercise of this Warrant,
                a
                sufficient number of shares of Common Stock to provide for the exercise
                of
                the rights represented by this Warrant.

            

       

       

      	III.  	
              Fractional
                Shares.
                The Company shall not be required upon the exercise of this Warrant
                to
                issue any fractional shares, but shall make an adjustment therefor
                in cash
                on the basis of the Market Value for each fractional share of the
                Company’s Common Stock which would be issuable upon exercise of this
                Warrant.

            

       

       

      	IV.  	
              Requirements
                for Transfer.

            

       

      1.  Warrant
        Register.
        The
        Company will maintain a register (the “Warrant Register”) containing the names
        and addresses of the Registered Holder or Registered Holders. Any Registered
        Holder of this Warrant or any portion thereof may change its address as shown
        on
        the Warrant Register by written notice to the Company requesting such change,
        and the Company shall promptly make such change. Until this Warrant is
        transferred on the Warrant Register of the Company, the Company may treat
        the
        Registered Holder as shown on the Warrant Register as the absolute owner
        of this
        Warrant for all purposes, notwithstanding any notice to the contrary, provided,
        however, that if and when this Warrant is properly assigned in blank, the
        Company may, but shall not be obligated to, treat the bearer hereof as the
        absolute owner hereof for all purposes, notwithstanding any notice to the
        contrary. 

       

      2.  Warrant
        Agent.
        The
        Company may, by written notice to the Registered Holder, appoint an agent
        for
        the purpose of maintaining the Warrant Register referred to in Section 4(a)
        hereof, issuing the Common Stock issuable upon the exercise of this Warrant,
        exchanging this Warrant, replacing this Warrant or any or all of the foregoing.
        Thereafter, any such registration, issuance, exchange, or replacement, as
        the
        case may be, may be made at the office of such agent.

       

      3.  Transfer.
        Subject
        to the provisions of this Section 4, this Warrant and all rights hereunder
        are
        transferable, in whole or in part, upon the surrender of this Warrant with
        a
        properly executed Assignment Form in substantially the form attached hereto
        as
Annex
        B
        (the
“Assignment”) at the principal office of the Company.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      

      Exchange
        of Warrant Upon a Transfer.
        On
        surrender of this Warrant for exchange, properly endorsed on the Assignment
        and
        subject to the provisions of this Warrant and with the limitations on
        assignments and transfers as contained in this Section 4, the Company at
        its
        expense shall issue to or on the order of the Registered Holder a new warrant
        or
        warrants of like tenor, in the name of the Registered Holder or as the
        Registered Holder (on payment by the Registered Holder of any applicable
        transfer taxes) may direct, for the number of shares issuable upon exercise
        hereof.

       

      	V.  	
              Adjustment. 

            

       

      1.
        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)),
        other
        than the issuances or sales referred to in Section 5(h) hereof, for a
        consideration per share less than the Exercise Price in effect immediately
        prior
        to the issuance or sale of such shares, or without consideration, then forthwith
        upon such issuance or sale, the Exercise 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 Exercise 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 Exercise Price be adjusted pursuant to this computation to an amount
        in excess of the Exercise 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 Exercise
        Price shall mean the Exercise Price per share set forth on the first page
        of
        this Warrant, as adjusted from time to time pursuant to the provisions of
        this
        Section 5.

       

      	a.  	
              For
                purposes of any computation to be made in accordance with this Section
                5(a), the following provisions shall be
                applicable:

            

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

         

      

      	b.  	
              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.

            

       

      	c.  	
              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.

            

       

      	d.  	
              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.

            

       

      
        
          
          

        

        
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          AMENDMENT
            NO. 1

        

      

       

      	e.  	
              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(v).

            

       

      	f.  	
              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.

            

       

      2.
        Options, Rights, Warrants and Convertible and Exchangeable
        Securities.

       

      	a.  	
              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 Exercise Price in effect immediately
                prior to the issuance of such options, rights, warrants or such
                convertible or exchangeable securities, or without consideration,
                the
                Exercise 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:

            

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	b.  	
              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 the Warrant),
                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 the Warrant) 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.

            

       

      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 Exercise Price
        in
        effect immediately prior to such subdivision will be proportionately reduced
        and
        the number of shares of Common Stock subject to acquisition upon exercise
        of
        this Warrant 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 Exercise Price in effect immediately prior
        to
        such combination will be proportionately increased and the number of shares
        of
        Common Stock subject to acquisition upon exercise of this Warrant will be
        proportionately decreased.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      3.  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
        Registered Holder will have the right to acquire and receive upon exercise
        of
        this Warrant in lieu of the shares of Common Stock immediately theretofore
        subject to acquisition upon the exercise of this Warrant, such shares of
        stock,
        securities or assets as may be issued or payable with respect to or in exchange
        for the number of shares of Common Stock immediately theretofore subject
        to
        acquisition and receivable upon exercise of this Warrant had such consolidation,
        merger or sale or conveyance not taken place. In any such case, the Company
        will
        make appropriate provision to insure that the provisions of this 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 exercise of
        this
        Warrant. 

       

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

       

      5.  Adjustment
        in Number of Securities.
        Upon
        each adjustment of the Exercise Price pursuant to the provisions of this
        Section
        5, the number of securities issuable upon the exercise of each Warrant shall
        be
        adjusted to the nearest full amount by multiplying a number equal to the
        Exercise Price in effect immediately prior to such adjustment by the number
        of
        Warrant Shares issuable upon exercise of the Warrants immediately prior to
        such
        adjustment and dividing the product so obtained by the adjusted Exercise
        Price.

      

      Definition of Stock.
        For the
        purpose of this Agreement, 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. 

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      No
        Adjustment of Exercise Price in Certain Cases.
        No
        adjustment of the Exercise Price shall be made:

      

      	a.  	
              Upon
                issuance or sale of this Warrant or Warrant Shares, or the other
                Warrants
                issued pursuant to the Purchase Agreement and Warrant Shares issued
                upon
                exercise thereof, or other options, warrants and convertible securities
                outstanding as of the date hereof into or for shares of Common
                Stock.

            

       

      	b.  	
              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
                Warrant, 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 Board of Directors.

            

       

      	c.  	
              If
                the amount of said adjustment shall be less than one cent ($0.01)
                per
                security issuable upon exercise of this Warrant, 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 exercise of this
                Warrant.

            

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	VI.  	
              No
                Impairment.
                The Company will not, by amendment of its charter or through
                reorganization, consolidation, merger, dissolution, sale of assets
                or any
                other voluntary action, avoid or seek to avoid the observance or
                performance of any of the terms of this Warrant but will at all times
                carry out all such terms and take all such action as may be reasonably
                necessary or appropriate in order to protect the rights of the holder
                of
                this Warrant against impairment.

            

       

      	VII.  	
              Liquidating
                Dividends and Other Distributions.
                The Company agrees and covenants that, while any amount of the Notes
                is
                outstanding, it will not directly or indirectly declare or pay any
                dividend or make any distributions. After the payment in full of
                the
                Notes, if the Company pays a dividend or makes a distribution on
                the
                Common Stock payable otherwise than in cash out of earnings or earned
                surplus (determined in accordance with generally accepted accounting
                principles) except for a stock dividend payable in shares of Common
                Stock
                (a “Liquidating Dividend”) or otherwise distributes to its stockholders
                any assets, properties, rights, evidence of indebtedness, securities
                whether issued by the Company or by another, or any other thing of
                value,
                then the Company will pay or distribute to the Registered Holder
                of this
                Warrant, upon the exercise hereof, in addition to the Warrant Shares
                purchased upon such exercise, either (i) the Liquidating Dividend
                that
                would have been paid to such Registered Holder if he had been the
                owner of
                record of such Warrant Shares immediately prior to the date on which
                a
                record is taken for such Liquidating Dividend or, if no record is
                taken,
                the date as of which the record holders of Common Stock entitled
                to such
                dividends or distribution are to be determined or (ii) the same property,
                assets, rights, evidences of indebtedness, securities or any other
                thing
                of value that the Registered Holder would have been entitled to receive
                at
                the time of such distribution as if the Warrant had been exercised
                immediately prior to such distribution.

            

       

      	VIII.  	
              Notices
                of Record Date, Etc.
                In case:

            

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      1.  the
        Company shall take a record of the holders of its Common Stock (or other
        stock
        or securities at the time deliverable upon the exercise of this Warrant)
        for the
        purpose of entitling or enabling them to receive any dividend or other
        distribution, or to receive any right to subscribe for or purchase any shares
        of
        stock of any class or any other securities, or to receive any other right;
        or of
        any capital reorganization of the Company, any reclassification of the capital
        stock of the Company, any consoli-dation or merger of the Company with or
        into
        another corporation (other than a consolidation or merger in which the Company
        is the surviving entity), or any transfer of all or substantially all of
        the
        assets of the Company; or of the voluntary or involuntary dissolution,
        liquidation or winding-up of the Company, then, and in each such case, the
        Company will mail or cause to be mailed to the Registered Holder of this
        Warrant
        a notice specifying, as the case may be, (i) the date on which a record is
        to be
        taken for the purpose of such dividend, distribution or right, and stating
        the
        amount and character of such dividend, distribution or right, or (ii) the
        effective date on which such reorganization, reclassification, consolidation,
        merger, transfer, dissolution, liquidation or winding-up is to take place,
        and
        the time, if any is to be fixed, as of which the holders of record of Common
        Stock (or such other stock or securities at the time deliverable upon the
        exercise of this Warrant) shall be entitled to exchange their shares of Common
        Stock (or such other stock or securities) for securities or other property
        deliverable upon such reorganization, reclassification, consolidation, merger,
        transfer, dissolution, liquidation or winding-up. Such notice shall be mailed
        at
        least ten (10) days prior to the record date or effective date for the event
        specified in such notice unless such prior notice is waived by the Registered
        Holder.

       

      	IX.  	
              No
                Rights of Stockholders.
                Subject to other Sections of this Warrant, the Registered Holder
                shall not
                be entitled to vote, to receive dividends or subscription rights,
                nor
                shall anything contained herein be construed to confer upon the Registered
                Holder, as such, any of the rights of a stockholder of the Company,
                including without limitation any right to vote for the election of
                directors or upon any matter submitted to stockholders, to give or
                withhold consent to any corporate action (whether upon any
                recapitalization, issuance of stock, reclassification of stock, change
                of
                par value or change of stock to no par value, consolidation, merger,
                conveyance, or otherwise), to receive notices, or otherwise, until
                the
                Warrant shall have been exercised as provided
                herein.

            

       

      	X.  	
              Registration
                Rights.
                The Registered Holder shall be entitled to the registration rights
                set
                forth in the Registration Rights Agreement dated as of August 9,
                2006
                executed in connection with the Securities Purchase Agreement.
                

            

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XI.  	
              Replacement
                of Warrant.
                Upon receipt of evidence reasonably satisfactory to the Company of
                the
                loss, theft, destruction or mutilation of this Warrant and (in the
                case of
                loss, theft or destruction) upon delivery of an indemnity agreement
                reasonably satisfactory to the Company, or (in the case of mutilation)
                upon surrender and cancellation of this Warrant, the Company will
                issue,
                in lieu thereof, a new Warrant of like
                tenor.

            

       

      	XII.  	
              Mailing
                of Notices, Etc.
                All notices and other communi-cations from the Company to the Registered
                Holder of this Warrant shall be mailed by first-class certified or
                registered mail, postage prepaid, to the address furnished to the
                Company
                in writing by the last Registered Holder of this Warrant who shall
                have
                furnished an address to the Company in writing. All notices and other
                communications from the Registered Holder of this Warrant or in connection
                herewith to the Company shall be mailed by first-class certified
                or
                registered mail, postage prepaid, to the Company at its principal
                office
                set forth below. If the Company should at any time change the location
                of
                its principal office to a place other than as set forth below, then
                it
                shall give prompt written notice to the Registered Holder of this
                Warrant
                and thereafter all references in this Warrant to the location of
                its
                principal office at the particular time shall be as so specified
                in such
                notice.

            

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XIII.  	
              Change
                or Waiver.
                Any term of this Warrant may be changed or waived only by an instrument
                in
                writing signed by the party against which enforcement of the change
                or
                waiver is sought.

            

       

      	XIV.  	
              Headings.
                The headings in this Warrant are for purposes of reference only and
                shall
                not limit or otherwise affect the meaning of any provision of this
                Warrant. 

            

       

      	XV.  	
               Severability.
                If any provision of this Warrant shall be held to be invalid and
                unenforceable, such invalidity or unenforceability shall not affect
                any
                other provision of this Warrant.

            

       

      	XVI.  	
              Governing
                Law and Submission to Jurisdiction.
                This Warrant will be governed by and construed in accordance with
                the laws
                of the State of New York without regard to principles of conflict
                or
                choice of laws of any jurisdiction. The parties hereby agree that
                any
                action, proceeding or claim against it arising out of, or relating
                in any
                way to this Warrant shall be brought and enforced in the courts of
                the
                State of New York, and irrevocably submit to such jurisdiction, which
                jurisdiction shall be exclusive.

            

       

      	XVII.  	
              Certificate.
                Upon request by the Registered Holder of this Warrant, the Company
                shall
                promptly deliver to such holder a certificate executed by its President
                or
                Chief Financial Officer setting forth the total number of outstanding
                shares of capital stock, convertible debt instruments and options,
                rights,
                warrants or other agreements relating to the purchase of such capital
                stock or convertible debt instruments, together with its calculation
                of
                the number of shares remaining available for issuance upon exercise
                of
                this Warrant, and a certificate of the accuracy of the statements
                set
                forth therein. 

            

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XVIII.  	
              Supplements
                and Amendments.
                The Company and the Registered Holder may from time to time supplement
                or
                amend this Warrant in order to cure any ambiguity, to correct or
                supplement any provision contained herein which may be defective
                or
                inconsistent with any provision herein, or to make any other provisions
                in
                regard to matters or questions arising hereunder which the Company
                and the
                Holder may deem necessary or desirable.

            

       

      	XIX.  	
              Successors.
                This Warrant 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 Registered
                Holder.

            

       

      	XX.  	
              Benefits
                of this Warrant.
                Nothing in this Warrant shall be construed to give to any person,
                entity
                or corporation other than the Company and the Registered Holder of
                the
                Warrant Certificate any legal or equitable right, remedy or claim
                under
                this Warrant; and this Warrant shall be for the sole and exclusive
                benefit
                of the Company and the Registered Holder of the Warrant
                Certificate.

            

       

      

      Balance
        of Page Intentionally left Blank

      Signature
        Page Follows

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      IN
        WITNESS WHEREOF, CARSUNLIMITED.COM, INC. has caused this Warrant to be signed
        by
        its duly authorized officers under its corporate seal and to be dated on
        the day
        and year first written above.

      

      

      
        	
                CARSUNLIMITED.COM,
                  INC.

                

                

                By:_________________________________

                Name:
                  Paul Block

                Title:
                  President

                

                

                Principal
                  Office: 305
                  Madison Avenue, 

                 Suite
                  4510

                 New
                  York, NY 10165

              

      

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      

      	i.  	
              ANNEX
                A

            

       

      

      NOTICE
        OF EXERCISE FORM

      

      

      
        

        

          
            	
                    To:

                  	
                    Dated: 

                  

          

        

        

      

      

      

      The
        undersigned, pursuant to the provisions in the attached Warrant, hereby
        irrevocably elects to: [check the appropriate box]

      

      

      

      __
        (i) purchase
        _____ shares of Common Stock covered by such Warrant and hereby makes payment
        of
        $_______, representing the full purchase price for shares at the exercise
        price
        per share provided for in such Warrant. Enclosed herewith is payment of the
        exercise price of such shares in full; or 

      

      __
        (ii)
        exercise the Warrant on a “cashless” basis in the manner set forth in Section
        1.2 of the Warrant. Such calculation results in the net issuance of _______
        shares of Common Stock of the Company to the undersigned. 

      

      Please
        have the shares of Common Stock of the Company issuable pursuant to this
        exercise delivered to ________________.

      

      

      
        	
                Signature:

                Dated: 

                Address:

              

      

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      ANNEX
        B

      

      ASSIGNMENT
        FORM

      

      FOR
        VALUE
        RECEIVED, _________________________________ hereby sells, assigns and transfers
        all of the rights of the undersigned under the attached Warrant with respect
        to
        the number of shares of Common Stock covered thereby set forth below,
        unto:

      

       

      

        
          	
                  Name
                    of Assignee

                	
                  Address

                	
                  No.
                    of Shares

                

        

      

      

      

      
        	
                Dated:
                  

                

                Signature:

                Dated:

                

                Witness:

              

      

      

      

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      

      THE
        SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT
        AND
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
        “SECURITIES
        ACT”).
        THESE
        SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
        OR
        AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OR UNDER STATE SECURITIES
        LAWS.
        THIS WARRANT MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED
        OF
        EXCEPT PURSUANT TO THE EXPRESS PROVISIONS OF THIS WARRANT, AND NO SALE,
        ASSIGNMENT, TRANSFER, OR OTHER DISPOSITION OF THIS WARRANT SHALL BE VALID
        OR
        EFFECTIVE UNLESS AND UNTIL SUCH PROVISIONS SHALL HAVE BEEN COMPLIED
        WITH.

      

      

      Date
        of
        Issuance: , 200

      CARSUNLIMITED.COM,
        INC.

      Stock
        Purchase Warrant

      (Void
        after August 9, 2011)

      

      CARSUNLIMITED.COM,
        INC., a Nevada corporation (the “Company”), for value received, hereby certifies
        and agrees that MELLON HBV MASTER GLOBAL EVENT DRIVEN FUND, L.P. or its
        registered assigns (the “Registered Holder”), is entitled, subject to the terms
        set forth below, to purchase from the Company, at any time or from time to
        time
        on or after the date hereof (the “Date of Issuance”) and on or before 5:00 p.m.
        New York time on August 9, 2011 (such date and time, the “Expiration Time”),
        eleven million four hundred seventy seven thousand one hundred and forty
        six
        (11,472,146) duly authorized, validly issued, fully paid and non-assessable
        shares of the Company’s
        common stock, $0.001 par value per share (the “Common Stock”)
        at an
        initial exercise price equal to $.02615 per share, subject to adjustment
        in
        certain cases as described herein. The shares issuable upon exercise of this
        Warrant, and the purchase price per share, are hereinafter referred to as
        the
“Warrant Shares” and the “Exercise Price,” respectively. The term “Warrant” as
        used herein shall include this Warrant and any other warrants delivered in
        substitution or exchange therefor, as provided herein. The Warrant shall
        terminate at the Expiration Time.

      

      This
        Warrant is issued pursuant to Amendment No. 1 effective as of October 17,
        2006
        to that certain Securities Purchase Agreement dated as of August 9, 2006
        by and
        among the Company and certain investors set forth therein (as so amended,
        the
“Securities Purchase Agreement”). 

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XXI.  	
              Exercise.
                

            

       

      

      1.1.  Method
        of Exercise

       

      1.  This
        Warrant may be exercised by the Registered Holder at any time from time to
        time,
        in whole or in part, prior to the Expiration Time by surrendering this Warrant,
        with a Notice of Exercise in the form of Annex
        A
        hereto
        (the “Notice of Exercise”) duly executed by such Registered Holder or by such
        Registered Holder’s duly authorized attorney, at the principal office of the
        Company set forth on the signature page hereto, or at such other office or
        agency as the Company may designate in writing (the “Company’s Office”),
        accompanied by payment in full, in lawful money of the United States (by
        wire
        transfer of immediately available funds or by bank cashier’s or certified
        check), of the Exercise Price payable in respect of the number of shares
        of
        Warrant Shares purchased upon such exercise. In lieu of cash payment, the
        Warrant may be exercised through a cashless exercise in the manner set forth
        in
        Section 1.2 below.

       

      2.  Each
        exercise of this Warrant shall be deemed to have been effected immediately
        prior
        to the close of business on the day on which the appropriate Annex form shall
        be
        dated and directed to the Company (as evidenced by the applicable postmark
        or
        other evidence of transmittal) as provided in Section 1(a) hereof. At such
        time,
        the person or persons in whose name or names any certificates for Warrant
        Shares
        shall be issuable upon such exercise as provided in Section 1(c) hereof shall
        be
        deemed to have become the holder or holders of record of the Warrant Shares
        represented by such certificates.

       

      3.  As
        soon
        as practicable after the exercise of this Warrant, in full or in part, and
        in
        any event within ten (10) days thereafter, the Company, at its expense, will
        cause to be issued in the name of, and delivered to, the Registered Holder,
        or
        as such Registered Holder (upon payment by such Registered Holder of any
        applicable transfer taxes) may direct:

       

      	a.  	
              a
                certificate or certificates for the number of full Warrant Shares
                to which
                such Registered Holder shall be entitled upon such exercise plus,
                in lieu
                of any fractional share to which such Registered Holder would otherwise
                be
                entitled, cash in an amount determined pursuant to Section 4 hereof;
                and

            

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	b.  	
              in
                case such exercise is in part only, a new warrant or warrants (dated
                the
                date hereof) of like tenor, representing in the aggregate on the
                face or
                faces thereof the number of Warrant Shares equal (without giving
                effect to
                any adjustment therein) to the number of such shares called for on
                the
                face of this Warrant minus the number of such shares purchased by
                the
                Registered Holder upon such exercise as provided in Section 3 hereof
                or
                received pursuant to Section 1.2 hereof.

            

       

      1.2.  Exercise
        by Surrender of Warrant.
        In
        addition to the method of payment set forth in Section 1.1 and in lieu of
        any
        cash payment required thereunder, the Warrant may be exercised by surrendering
        the Warrant in the manner specified in this Section 1.2, together with
        irrevocable instructions to the Company to issue in exchange for the Warrant
        the
        number of shares of Common Stock equal to the product of (x) the number of
        shares of Common Stock underlying the Warrants multiplied by (y) a fraction,
        the
        numerator of which is the Market Value (as defined below) of the Common Stock
        less the Exercise Price and the denominator of which is such Market Value.
        As
        used herein, the phrase “Market Value” at any date shall be deemed to be the
        last reported sale price, or, in case no such reported sale takes place on
        such
        day, the average of the last reported sale prices for the last three (3)
        trading
        days, in either case as officially reported by the principal securities exchange
        or “over the counter” (including on the pink sheets or bulletin board) exchange
        on which the Common Stock is listed or admitted to trading, or, if the Common
        Stock is not listed or admitted to trading on any national securities exchange
        or sold “over the counter”, the average closing bid price as furnished by the
        NASD through NASDAQ or similar organization if NASDAQ is no longer reporting
        such information, or if the Common Stock is not quoted on NASDAQ, as determined
        in good faith by resolution of the Board of Directors of the Company, based
        on
        the best information available to it.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XXII.  	
              Shares
                to be Fully Paid; Reservation of Shares.
                The Company covenants and agrees that all shares of Common Stock
                which may
                be issued upon the exercise of the rights represented by this Warrant
                will, upon issuance by the Company, be validly issued, fully paid
                and
                nonassessable, and free from preemptive rights and free from all
                taxes,
                liens and charges with respect thereto. The Company further covenants
                and
                agrees that, from and after the Date of Issuance and during the period
                within which the rights represented by this Warrant may be exercised,
                the
                Company will at all times have authorized, and reserve, free from
                preemptive rights, out of its authorized but unissued shares of Common
                Stock, solely for the purpose of effecting the exercise of this Warrant,
                a
                sufficient number of shares of Common Stock to provide for the exercise
                of
                the rights represented by this Warrant.

            

       

      	XXIII.  	
              Fractional
                Shares.
                The Company shall not be required upon the exercise of this Warrant
                to
                issue any fractional shares, but shall make an adjustment therefor
                in cash
                on the basis of the Market Value for each fractional share of the
                Company’s Common Stock which would be issuable upon exercise of this
                Warrant.

            

       

      	XXIV.  	
              Requirements
                for Transfer.

            

       

      1.  Warrant
        Register.
        The
        Company will maintain a register (the “Warrant Register”) containing the names
        and addresses of the Registered Holder or Registered Holders. Any Registered
        Holder of this Warrant or any portion thereof may change its address as shown
        on
        the Warrant Register by written notice to the Company requesting such change,
        and the Company shall promptly make such change. Until this Warrant is
        transferred on the Warrant Register of the Company, the Company may treat
        the
        Registered Holder as shown on the Warrant Register as the absolute owner
        of this
        Warrant for all purposes, notwithstanding any notice to the contrary, provided,
        however, that if and when this Warrant is properly assigned in blank, the
        Company may, but shall not be obligated to, treat the bearer hereof as the
        absolute owner hereof for all purposes, notwithstanding any notice to the
        contrary. 

       

      2.  Warrant
        Agent.
        The
        Company may, by written notice to the Registered Holder, appoint an agent
        for
        the purpose of maintaining the Warrant Register referred to in Section 4(a)
        hereof, issuing the Common Stock issuable upon the exercise of this Warrant,
        exchanging this Warrant, replacing this Warrant or any or all of the foregoing.
        Thereafter, any such registration, issuance, exchange, or replacement, as
        the
        case may be, may be made at the office of such agent.

       

      3.  Transfer.
        Subject
        to the provisions of this Section 4, this Warrant and all rights hereunder
        are
        transferable, in whole or in part, upon the surrender of this Warrant with
        a
        properly executed Assignment Form in substantially the form attached hereto
        as
Annex
        B
        (the
“Assignment”) at the principal office of the Company.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      

      (a)  Exchange
        of Warrant Upon a Transfer.
        On
        surrender of this Warrant for exchange, properly endorsed on the Assignment
        and
        subject to the provisions of this Warrant and with the limitations on
        assignments and transfers as contained in this Section 4, the Company at
        its
        expense shall issue to or on the order of the Registered Holder a new warrant
        or
        warrants of like tenor, in the name of the Registered Holder or as the
        Registered Holder (on payment by the Registered Holder of any applicable
        transfer taxes) may direct, for the number of shares issuable upon exercise
        hereof.

       

      	XXV.  	
              Adjustment. 

            

       

      

      1.
        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)),
        other
        than the issuances or sales referred to in Section 5(h) hereof, for a
        consideration per share less than the Exercise Price in effect immediately
        prior
        to the issuance or sale of such shares, or without consideration, then forthwith
        upon such issuance or sale, the Exercise 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 Exercise 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 Exercise Price be adjusted pursuant to this computation to an amount
        in excess of the Exercise 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 Exercise
        Price shall mean the Exercise Price per share set forth on the first page
        of
        this Warrant, as adjusted from time to time pursuant to the provisions of
        this
        Section 5.

       

      	a.  	
              For
                purposes of any computation to be made in accordance with this Section
                5(a), the following provisions shall be
                applicable:

            

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	b.  	
              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.

            

       

      	c.  	
              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.

            

       

      	d.  	
              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.

            

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	e.  	
              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(v).

            

       

      	f.  	
              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.

            

       

      2.
        Options, Rights, Warrants and Convertible and Exchangeable
        Securities.

       

      	a.  	
              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 Exercise Price in effect immediately
                prior to the issuance of such options, rights, warrants or such
                convertible or exchangeable securities, or without consideration,
                the
                Exercise 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:

            

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	b.  	
              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 the Warrant),
                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 the Warrant) 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.

            

       

      (b)  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 Exercise Price
        in
        effect immediately prior to such subdivision will be proportionately reduced
        and
        the number of shares of Common Stock subject to acquisition upon exercise
        of
        this Warrant 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 Exercise Price in effect immediately prior
        to
        such combination will be proportionately increased and the number of shares
        of
        Common Stock subject to acquisition upon exercise of this Warrant will be
        proportionately decreased.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      3.  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
        Registered Holder will have the right to acquire and receive upon exercise
        of
        this Warrant in lieu of the shares of Common Stock immediately theretofore
        subject to acquisition upon the exercise of this Warrant, such shares of
        stock,
        securities or assets as may be issued or payable with respect to or in exchange
        for the number of shares of Common Stock immediately theretofore subject
        to
        acquisition and receivable upon exercise of this Warrant had such consolidation,
        merger or sale or conveyance not taken place. In any such case, the Company
        will
        make appropriate provision to insure that the provisions of this 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 exercise of
        this
        Warrant. 

       

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

       

      5.  Adjustment
        in Number of Securities.
        Upon
        each adjustment of the Exercise Price pursuant to the provisions of this
        Section
        5, the number of securities issuable upon the exercise of each Warrant shall
        be
        adjusted to the nearest full amount by multiplying a number equal to the
        Exercise Price in effect immediately prior to such adjustment by the number
        of
        Warrant Shares issuable upon exercise of the Warrants immediately prior to
        such
        adjustment and dividing the product so obtained by the adjusted Exercise
        Price.

      

      (c)  Definition of Stock.
        For the
        purpose of this Agreement, 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. 

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      (d)  No
        Adjustment of Exercise Price in Certain Cases.
        No
        adjustment of the Exercise Price shall be made:

      

      	a.  	
              Upon
                issuance or sale of this Warrant or Warrant Shares, or the other
                Warrants
                issued pursuant to the Purchase Agreement and Warrant Shares issued
                upon
                exercise thereof, or other options, warrants and convertible securities
                outstanding as of the date hereof into or for shares of Common
                Stock.

            

       

      	b.  	
              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
                Warrant, 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 Board of Directors.

            

       

      	c.  	
              If
                the amount of said adjustment shall be less than one cent ($0.01)
                per
                security issuable upon exercise of this Warrant, 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 exercise of this
                Warrant.

            

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XXVI.  	
              No
                Impairment.
                The Company will not, by amendment of its charter or through
                reorganization, consolidation, merger, dissolution, sale of assets
                or any
                other voluntary action, avoid or seek to avoid the observance or
                performance of any of the terms of this Warrant but will at all times
                carry out all such terms and take all such action as may be reasonably
                necessary or appropriate in order to protect the rights of the holder
                of
                this Warrant against impairment.

            

       

      	XXVII.  	
              Liquidating
                Dividends and Other Distributions.
                The Company agrees and covenants that, while any amount of the Notes
                is
                outstanding, it will not directly or indirectly declare or pay any
                dividend or make any distributions. After the payment in full of
                the
                Notes, if the Company pays a dividend or makes a distribution on
                the
                Common Stock payable otherwise than in cash out of earnings or earned
                surplus (determined in accordance with generally accepted accounting
                principles) except for a stock dividend payable in shares of Common
                Stock
                (a “Liquidating Dividend”) or otherwise distributes to its stockholders
                any assets, properties, rights, evidence of indebtedness, securities
                whether issued by the Company or by another, or any other thing of
                value,
                then the Company will pay or distribute to the Registered Holder
                of this
                Warrant, upon the exercise hereof, in addition to the Warrant Shares
                purchased upon such exercise, either (i) the Liquidating Dividend
                that
                would have been paid to such Registered Holder if he had been the
                owner of
                record of such Warrant Shares immediately prior to the date on which
                a
                record is taken for such Liquidating Dividend or, if no record is
                taken,
                the date as of which the record holders of Common Stock entitled
                to such
                dividends or distribution are to be determined or (ii) the same property,
                assets, rights, evidences of indebtedness, securities or any other
                thing
                of value that the Registered Holder would have been entitled to receive
                at
                the time of such distribution as if the Warrant had been exercised
                immediately prior to such distribution.

            

       

      	XXVIII.  	
              Notices
                of Record Date, Etc.
                In case:

            

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      1.  the
        Company shall take a record of the holders of its Common Stock (or other
        stock
        or securities at the time deliverable upon the exercise of this Warrant)
        for the
        purpose of entitling or enabling them to receive any dividend or other
        distribution, or to receive any right to subscribe for or purchase any shares
        of
        stock of any class or any other securities, or to receive any other right;
        or of
        any capital reorganization of the Company, any reclassification of the capital
        stock of the Company, any consoli-dation or merger of the Company with or
        into
        another corporation (other than a consolidation or merger in which the Company
        is the surviving entity), or any transfer of all or substantially all of
        the
        assets of the Company; or of the voluntary or involuntary dissolution,
        liquidation or winding-up of the Company, then, and in each such case, the
        Company will mail or cause to be mailed to the Registered Holder of this
        Warrant
        a notice specifying, as the case may be, (i) the date on which a record is
        to be
        taken for the purpose of such dividend, distribution or right, and stating
        the
        amount and character of such dividend, distribution or right, or (ii) the
        effective date on which such reorganization, reclassification, consolidation,
        merger, transfer, dissolution, liquidation or winding-up is to take place,
        and
        the time, if any is to be fixed, as of which the holders of record of Common
        Stock (or such other stock or securities at the time deliverable upon the
        exercise of this Warrant) shall be entitled to exchange their shares of Common
        Stock (or such other stock or securities) for securities or other property
        deliverable upon such reorganization, reclassification, consolidation, merger,
        transfer, dissolution, liquidation or winding-up. Such notice shall be mailed
        at
        least ten (10) days prior to the record date or effective date for the event
        specified in such notice unless such prior notice is waived by the Registered
        Holder.

       

      	XXIX.  	
              No
                Rights of Stockholders.
                Subject to other Sections of this Warrant, the Registered Holder
                shall not
                be entitled to vote, to receive dividends or subscription rights,
                nor
                shall anything contained herein be construed to confer upon the Registered
                Holder, as such, any of the rights of a stockholder of the Company,
                including without limitation any right to vote for the election of
                directors or upon any matter submitted to stockholders, to give or
                withhold consent to any corporate action (whether upon any
                recapitalization, issuance of stock, reclassification of stock, change
                of
                par value or change of stock to no par value, consolidation, merger,
                conveyance, or otherwise), to receive notices, or otherwise, until
                the
                Warrant shall have been exercised as provided
                herein.

            

       

      	XXX.  	
              Registration
                Rights.
                The Registered Holder shall be entitled to the registration rights
                set
                forth in the Registration Rights Agreement dated as of August 9,
                2006
                executed in connection with the Securities Purchase Agreement.
                

            

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XXXI.  	
              Replacement
                of Warrant.
                Upon receipt of evidence reasonably satisfactory to the Company of
                the
                loss, theft, destruction or mutilation of this Warrant and (in the
                case of
                loss, theft or destruction) upon delivery of an indemnity agreement
                reasonably satisfactory to the Company, or (in the case of mutilation)
                upon surrender and cancellation of this Warrant, the Company will
                issue,
                in lieu thereof, a new Warrant of like
                tenor.

            

       

      	XXXII.  	
              Mailing
                of Notices, Etc.
                All notices and other communi-cations from the Company to the Registered
                Holder of this Warrant shall be mailed by first-class certified or
                registered mail, postage prepaid, to the address furnished to the
                Company
                in writing by the last Registered Holder of this Warrant who shall
                have
                furnished an address to the Company in writing. All notices and other
                communications from the Registered Holder of this Warrant or in connection
                herewith to the Company shall be mailed by first-class certified
                or
                registered mail, postage prepaid, to the Company at its principal
                office
                set forth below. If the Company should at any time change the location
                of
                its principal office to a place other than as set forth below, then
                it
                shall give prompt written notice to the Registered Holder of this
                Warrant
                and thereafter all references in this Warrant to the location of
                its
                principal office at the particular time shall be as so specified
                in such
                notice.

            

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XXXIII.  	
              Change
                or Waiver.
                Any term of this Warrant may be changed or waived only by an instrument
                in
                writing signed by the party against which enforcement of the change
                or
                waiver is sought.

            

       

      	XXXIV.  	
              Headings.
                The headings in this Warrant are for purposes of reference only and
                shall
                not limit or otherwise affect the meaning of any provision of this
                Warrant. 

            

       

      	XXXV.  	
               Severability.
                If any provision of this Warrant shall be held to be invalid and
                unenforceable, such invalidity or unenforceability shall not affect
                any
                other provision of this Warrant.

            

       

      	XXXVI.  	
              Governing
                Law and Submission to Jurisdiction.
                This Warrant will be governed by and construed in accordance with
                the laws
                of the State of New York without regard to principles of conflict
                or
                choice of laws of any jurisdiction. The parties hereby agree that
                any
                action, proceeding or claim against it arising out of, or relating
                in any
                way to this Warrant shall be brought and enforced in the courts of
                the
                State of New York, and irrevocably submit to such jurisdiction, which
                jurisdiction shall be exclusive.

            

       

      	XXXVII.  	
              Certificate.
                Upon request by the Registered Holder of this Warrant, the Company
                shall
                promptly deliver to such holder a certificate executed by its President
                or
                Chief Financial Officer setting forth the total number of outstanding
                shares of capital stock, convertible debt instruments and options,
                rights,
                warrants or other agreements relating to the purchase of such capital
                stock or convertible debt instruments, together with its calculation
                of
                the number of shares remaining available for issuance upon exercise
                of
                this Warrant, and a certificate of the accuracy of the statements
                set
                forth therein. 

            

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

       

      	XXXVIII.  	
              Supplements
                and Amendments.
                The Company and the Registered Holder may from time to time supplement
                or
                amend this Warrant in order to cure any ambiguity, to correct or
                supplement any provision contained herein which may be defective
                or
                inconsistent with any provision herein, or to make any other provisions
                in
                regard to matters or questions arising hereunder which the Company
                and the
                Holder may deem necessary or desirable.

            

       

      	XXXIX.  	
              Successors.
                This Warrant 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 Registered
                Holder.

            

       

      	XL.  	
              Benefits
                of this Warrant.
                Nothing in this Warrant shall be construed to give to any person,
                entity
                or corporation other than the Company and the Registered Holder of
                the
                Warrant Certificate any legal or equitable right, remedy or claim
                under
                this Warrant; and this Warrant shall be for the sole and exclusive
                benefit
                of the Company and the Registered Holder of the Warrant
                Certificate.

            

       

      

      Balance
        of Page Intentionally left Blank

      Signature
        Page Follows

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      IN
        WITNESS WHEREOF, CARSUNLIMITED.COM, INC. has caused this Warrant to be signed
        by
        its duly authorized officers under its corporate seal and to be dated on
        the day
        and year first written above.

       

      

      
        
          	
                  CARSUNLIMITED.COM,
                    INC.

                  

                  

                  By:_________________________________

                  Name:
                    Paul Block

                  Title:
                    President

                  

                  

                  Principal
                    Office: 305
                    Madison Avenue, 

                   Suite
                    4510

                   New
                    York, NY 10165

                

        

      

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

       

      	i.  	
              ANNEX
                A

            

       

      

      NOTICE
        OF EXERCISE FORM

      

      

      

        
          	
                  To:

                	
                  Dated: 

                

        

      

      

      

      The
        undersigned, pursuant to the provisions in the attached Warrant, hereby
        irrevocably elects to: [check the appropriate box]

      

      

      

      __
        (i) purchase
        _____ shares of Common Stock covered by such Warrant and hereby makes payment
        of
        $_______, representing the full purchase price for shares at the exercise
        price
        per share provided for in such Warrant. Enclosed herewith is payment of the
        exercise price of such shares in full; or 

      

      __
        (ii)
        exercise the Warrant on a “cashless” basis in the manner set forth in Section
        1.2 of the Warrant. Such calculation results in the net issuance of _______
        shares of Common Stock of the Company to the undersigned. 

      

      Please
        have the shares of Common Stock of the Company issuable pursuant to this
        exercise delivered to ________________.

      

      

      
        	
                Signature:

                Dated: 

                Address:

              

      

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

          AMENDMENT
            NO. 1

        

      

      

      ANNEX
        B

      

      ASSIGNMENT
        FORM

      

      FOR
        VALUE
        RECEIVED, _________________________________ hereby sells, assigns and transfers
        all of the rights of the undersigned under the attached Warrant with respect
        to
        the number of shares of Common Stock covered thereby set forth below,
        unto:

      

      
         

        

          
            	
                    Name
                      of Assignee

                  	
                    Address

                  	
                    No.
                      of Shares

                  

          

      

      

      

      

      

      
        
          	
                  Dated:
                    

                  

                  Signature:

                  Dated:

                  

                  Witness:

                

        

      

       

       

      
        
          
          

        

        
          40Exhibit 10.1

               FIRST AMENDMENT TO OFFICE BUILDING LEASE AGREEMENT

                                    RECITALS

A. HEALTHRENU MEDICAL, INC. ("Tenant") and DENMARK HOUSE INVESTMENT, LTD., a
Texas limited partnership, ("Landlord"), entered into that certain Lease
Agreement effective as of the 30th day of June 2004 ("Lease"), in regard to the
leasing of that certain space containing approximately 1,692 square feet, (the
"Premises") at the office building located at 12777 Jones, Houston, TX 77070
(the "Project").

B. Tenant and Landlord desire to amend certain provisions of the Lease,
effective as of the 1st day of January 2006;

NOW THEREFORE, for good, valuable and sufficient consideration received,
Landlord and Tenant hereby agree as follows:

                                    AGREEMENT

1. On the Effective Date, the term of the Lease shall be modified to expire on
the 31st day of January 2009.

2. On the Effective Date, the Leased Premises shall be increased by 786
non-contiguous square feet of Net Rentable Area ("Increased Lease Premises"), as
outlined on the attached Exhibit "A-1".

3. Upon execution of this agreement, Tenant shall deposit with Landlord the sum
of One Thousand Eighty and 75/100 Dollars ($1,080.75) as additional deposit
("Security Deposit") associated with the Increased Lease Premises.

4. On the Effective Date, the Base Rent shall increase to Three Thousand One
Hundred Ninety-Five and 75/100 Dollars ($3,195.75) per month through the 31st
day of January 2006. Effective the 1st day of February 2006, the Base Rent shall
increase to Three Thousand Four Hundred Seven and 25/100 Dollars ($3,407.25) per
month through the 31st day of January 2007. Effective the 1st day of February
2007, the Base Rent shall increase to Three Thousand Five Hundred Ten and 50/100
Dollars ($3,510.50) per month through the 31st day of January 2008. Effective
the 1st day of February 2008, the Base Rent shall increase to Three Thousand Six
Hundred Thirteen and 75/100 Dollars ($3,613.75) per month through the 31st day
January 2009.

5. Landlord and Tenant agree to incorporate herein by this reference, the
following Sections which were intentionally stricken from the Lease: Section
5.02 Additional Rent, Section 5.05 Payment of Additional Rent (a) and (b),
Section 5.06 Gross Up, Section 5.07 Right to Audit or Inspect and Section 12.03
Casualty During the Last Two Years. These Sections pertain to the Premises and
the Increased Lease Premises where applicable. These Sections are defined on the
attached Exhibit "D".

<PAGE>

6. Landlord agrees to furnish and install Building Standard Leasehold
Improvements within the Premises and the Increased Lease Premises collectively,
at an allowance not to exceed $2.10 per rentable square foot. Leasehold
Improvements shall be based upon plans and specifications approved by Landlord
and Tenant and preliminary remodel proposals presented by Ray Scaggs
Construction Company dated November 1, 2005 and Prime Flooring Building Systems,
Inc. dated October 27, 2005. Additionally, the sink and faucet will be replaced
and an interior passage set will be replaced with a lockset within the Premises.
The locks on the entry door to the Increased Lease Premises will be keyed to
match the Premises and a name plaque and directory strip will be provided.
Except as set forth above, Landlord shall have no further obligation to make any
further Leasehold Improvements or bear any costs associated with Leasehold
Improvements.

7. Tenant, upon paying the rent herein reserved and performing all the terms,
covenants and conditions herein contained on its part to be kept and performed,
shall be granted a right to renew and extend this agreement (the "Renewal
Option") for one (1), three (3) year period following the expiration of this
Amendment to Office Lease Agreement. Tenant shall be required to provide
Landlord with six (6) months prior written notice and shall not have the right
to exercise the Renewal Option at a time when Tenant is in default under the
Lease. Tenant's failure to timely exercise the Renewal Option, for any reason
whatsoever, shall conclusively be deemed a waiver of such Renewal Option. Tenant
and Landlord agree that the annual Base Rent for the Renewal Option Term shall
be at the prevailing market rate for similar space at Denmark House at the time
Tenant exercises the option. Tenant shall take the Premises and the Increased
Lease Premises "as is" for the Renewal Term and Landlord shall have no
obligation to make any improvements or alterations to the Premises or the
Increased Lease Premises. Except as set forth in this agreement, the leasing of
the Premises and the Increased Lease Premises for the Renewal Term shall be upon
the same terms, covenants and conditions as set forth herein. Any modifications
and/or additions as may be mutually agreed upon by both parties shall be in
writing and approved by Tenant and Landlord.

Except as expressly amended herein, the Lease shall control the terms and
provisions pertaining to the Lease and no modifications, changes or amendments
in regard to the Lease other than expressly provided for herein are intended.

Dated as of the 17th day of November 2005

                               TENANT:        HEALTHRENU MEDICAL, INC.

                                              ----------------------------------
                                              Robert W Prokos,  President

                               LANDLORD:      DENMARK HOUSE INVESTMENT, LTD.
                                              A Texas limited partnership

                                          By: Denmark House Management LLC.
                                              a Texas limited liability company

                                              ----------------------------------
                                              Mark Winkleman, Manager

<PAGE>

                                                                     Exhibit A-1

                                    [GRAPHIC]

<PAGE>

                                   EXHIBIT "D"

Section 5.02 Additional Rent. Tenant agrees to pay, as "Additional Rent",
"Tenant's Share" as determined by dividing the Net Rentable Area of the Premises
by the Net Rentable Area of the Building (and which is stipulated, unless the
Premises or the Building are increased or decreased, to be 2.0756%) of any
increase in the Operating Costs, as defined in Section 5.03 Determination of
Operating Costs, of the Project for the calendar year 2006.

Section 5.03 Payment of Additional Rent (a) Prior to the Commencement Date and
(b) for each calendar year during the Term following that in which the
Commencement Date occurs, prior to January 1 of each such year, Landlord shall
provide Tenant with a projection of Tenant's Share of the Operating Costs for
the ensuing year, and Tenant shall thereafter pay on the first day of each month
during such year, as Additional Rent, without demand, set-off or counterclaim,
one-twelfth of Tenant's Shares of the projected increase of Operating Costs over
the Operating Costs for the Base Year. On or before June 1 of each year during
the Term, Landlord shall provide Tenant with a statement of the prior year's
actual Operating Costs showing the calculated increase in the Operating Costs
over the Base Year and Tenant's Share thereof. If Tenant's Share of the increase
of Operating Costs over the Base Year Operating Costs is more than that paid by
Tenant during the prior calendar year as Additional Rent, Tenant shall pay
Landlord, within thirty (30) days of the statement receipt, the difference. If
Tenant paid more as Additional Rent during the prior calendar year than Tenant's
Share of the actual Operating Cost for the year in which the Lease expires or is
otherwise terminated shall be prorated through the date of such expiration or
termination. The obligations of the Landlord or Tenant to pay the adjustment for
actual Operating Cost shall survive such expiration or termination.

Section 5.06 Gross Up Operating Costs for any calendar year during which actual
occupancy of the Project is less than 95% of the Rentable Area of the Project,
shall be appropriately adjusted to reflect 95% occupancy of the existing
Rentable Area of the Project during such period. In determining Operating Costs,
if any service or utilities are separately charged to tenants of the Project or
others, Operating Costs shall be adjusted by Landlord to reflect the amount of
expense which would have been incurred for such services or utilities on a full
time basis for normal Project operating hours. In the event (i) the Commencement
Date shall be a date other than January 1, (ii) the date fixed or the expiration
of the term shall be a date other than December 31, (iii) of any early
termination of this Lease, or (iv) of any increase or decrease in the size of
the Premises, then in each such event, an appropriate adjustment in the
application of this Section 5.06 shall, subject to the provisions of this Lease,
be made to reflect such event on a basis determined by Landlord to be consistent
with the principles underlying the provisions of this Section 5.06.

Section 5.07 Right to Audit or Inspect Tenant, at its expense, shall have the
right at all reasonable times to audit or inspect Landlord's books and records
relating to this Lease for any year, upon thirty (30) business days' written
notice to Landlord. Such inspection or audit shall take place where the books
and records of Landlord for the Project are kept. Said records shall be kept at
the Building Management office located at 12777 Jones Road, Houston, Texas.
Section 12.03 Casualty During Last Two Lease Years If the Building, the Parking
Lot, the Premises, or Leasehold Improvements installed by Landlord as part of
Landlord's Work are substantially destroyed by fire or other cause at any time
during the last two (2) years of the Term, either the Landlord or Tenant may
terminate this Lease upon written notice to the other given within (60) days of
the date of such destruction, effective as of the date of the casualty. Tenant
shall vacate the Premises on or before the date occurring thirty days from the
date the termination notice by either Landlord or Tenant is given to the other.

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