Document:

THIS
      WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGIS-TERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS OTHERWISE
      SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED AS OF DECEMBER
      15,
      2006, NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED
      OR
      ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRA-TION STATEMENT FOR SUCH
      SECURITIES UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND
      SCOPE, CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT
      REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE
      144
      OR REGULATION S UNDER SUCH ACT.

    

      
        	 	
                Right
                  to Purchase _________ Shares of Common Stock, $.0001 par value
                  per
                  share

              

      

    

     

    STOCK
      PURCHASE WARRANT

     

    THIS
      CERTIFIES THAT,
      for
      value received, ________________________ or its registered assigns, is entitled
      to purchase from DealerAdvance, Inc., a Nevada corporation (the “Company”), at
      any time or from time to time during the period specified in Paragraph 2
      hereof, _______ fully paid and nonassessable shares of the Company’s Common
      Stock, $.0001 par value per share (the “Common Stock”), at an exercise price per
      share equal to $.05 (the “Exercise Price”). The term “Warrant Shares,” as used
      herein, refers to the shares of Common Stock purchasable hereunder. The Warrant
      Shares and the Exercise Price are subject to adjustment as provided in Paragraph
      4 hereof. The term “Warrants” means this Warrant and the other warrants issued
      pursuant to that certain Securities Purchase Agreement, dated December 15,
      2006,
      by and among the Company and the Buyers listed on the execution page thereof
      (the “Securities Purchase Agreement”), including any additional warrants
      issuable pursuant to Section 4(l) thereof. 

     

    This
      Warrant is subject to the following terms, provisions, and conditions:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    1. Manner
      of Exercise; Issuance of Certificates; Payment for Shares. 
Subject
      to the provisions hereof and the Company obtaining Stockholder Approval as
      defined in Section 4(n) of the Securities Purchase Agreement, this Warrant
      may
      be exercised by the holder hereof, in whole or in part, by the surrender of
      this
      Warrant, together with a completed exercise agreement in the form attached
      hereto (the “Exercise Agreement”), to the Company during normal business hours
      on any business day at the Company’s principal executive offices (or such other
      office or agency of the Company as it may designate by notice to the holder
      hereof), and upon (i) payment to the Company in cash, by certified or offi-cial
      bank check or by wire transfer for the account of the Company of the Exercise
      Price for the Warrant Shares specified in the Exercise Agreement or (ii) if
      the
      resale of the Warrant Shares by the holder is not then registered pursuant
      to an
      effective registration statement under the Securities Act of 1933, as amended
      (the “Securities Act”), delivery to the Company of a written notice of an
      election to effect a “Cashless Exercise” (as defined in Section 11(c) below) for
      the Warrant Shares specified in the Exercise Agreement. The Warrant Shares
      so
      purchased shall be deemed to be issued to the holder hereof or such holder’s
      designee, as the record owner of such shares, as of the close of business on
      the
      date on which this Warrant shall have been surrendered, the completed Exercise
      Agreement shall have been deliv-ered, and payment shall have been made for
      such
      shares as set forth above. Certifi-cates for the Warrant Shares so purchased,
      representing the aggregate number of shares specified in the Exercise Agreement,
      shall be delivered to the holder hereof within a reasonable time, not exceeding
      three (3) business days, after this Warrant shall have been so exercised. The
      certificates so delivered shall be in such denominations as may be requested
      by
      the holder hereof and shall be registered in the name of such holder or such
      other name as shall be designated by such holder. If this Warrant shall have
      been exercised only in part, then, unless this Warrant has expired, the Company
      shall, at its expense, at the time of delivery of such certificates, deliver
      to
      the holder a new Warrant representing the number of shares with respect to
      which
      this Warrant shall not then have been exercised. In addition to all other
      available remedies at law or in equity, if the Company fails to deliver
      certificates for the Warrant Shares within three (3) business days after this
      Warrant is exercised, then the Company shall pay to the holder in cash a penalty
      (the “Penalty”) equal to 2% of the number of Warrant Shares that the holder is
      entitled to multiplied by the Market Price (as hereinafter defined) for each
      day
      that the Company fails to deliver certificates for the Warrant Shares. For
      example, if the holder is entitled to 100,000 Warrant Shares and the Market
      Price is $2.00, then the Company shall pay to the holder $4,000 for each day
      that the Company fails to deliver certificates for the Warrant Shares. The
      Penalty shall be paid to the holder by the fifth day of the month following
      the
      month in which it has accrued.

     

    Notwithstanding
      anything in this Warrant to the contrary, in no event shall the holder of this
      Warrant be entitled to exercise a number of Warrants (or portions thereof)
      in
      excess of the number of Warrants (or portions thereof) upon exercise of which
      the sum of (i) the number of shares of Common Stock beneficially owned by the
      holder and its affiliates (other than shares of Common Stock which may be deemed
      beneficially owned through the ownership of the unexercised Warrants and the
      unexercised or unconverted portion of any other securities of the Company
      (including the Notes (as defined in the Securities Purchase Agreement)) subject
      to a limitation on conversion or exercise analogous to the limitation contained
      herein) and (ii) the number of shares of Common Stock issuable upon exercise
      of
      the Warrants (or portions thereof) with respect to which the determination
      described herein is being made, would result in beneficial ownership by the
      holder and its affiliates of more than 4.9% of the outstanding shares of Common
      Stock. For purposes of the immediately preceding sentence, beneficial ownership
      shall be determined in accordance with Section 13(d) of the Securities Exchange
      Act of 1934, as amended, and Regulation 13D-G thereunder, except as otherwise
      provided in clause (i) of the preceding sentence. Notwithstanding anything
      to
      the contrary contained herein, the limitation on exercise of this Warrant set
      forth herein may not be amended without (i) the written consent of the holder
      hereof and the Company and (ii) the approval of a majority of shareholders
      of
      the Company.

     

    
      
         

      

      
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    2. Period
      of Exercise.  This
      Warrant is exercisable at any time or from time to time on or after the date
      on
      which this Warrant is issued and delivered pursuant to the terms of the
      Securities Purchase Agreement and before 6:00 p.m., New York, New York time
      on
      the fifth (5th)
      anniversary of the date of issuance (the “Exercise Period”).

     

    3. Certain
      Agreements of the Company. The
      Company hereby covenants and agrees as follows:

     

    (a) Shares
      to be Fully Paid.
      All
      Warrant Shares will, upon issuance in accordance with the terms of this Warrant,
      be validly issued, fully paid, and nonassessable and free from all taxes, liens,
      and charges with respect to the issue thereof.

     

    (b) Reservation
      of Shares.
      During
      the Exercise Period, the Company shall at all times have authorized, and
      reserved for the purpose of issuance upon exercise of this Warrant, a
      suf-ficient number of shares of Common Stock to provide for the exercise of
      this
      Warrant.

     

    (c) Listing.
      The
      Company shall promptly secure the listing of the shares of Common Stock issuable
      upon exercise of the Warrant upon each national securities exchange or automated
      quotation system, if any, upon which shares of Common Stock are then listed
      (subject to official notice of issuance upon exercise of this Warrant) and
      shall
      maintain, so long as any other shares of Common Stock shall be so listed, such
      listing of all shares of Common Stock from time to time issuable upon the
      exercise of this Warrant; and the Company shall so list on each national
      securities exchange or automated quotation system, as the case may be, and
      shall
      maintain such listing of, any other shares of capital stock of the Company
      issuable upon the exercise of this Warrant if and so long as any shares of
      the
      same class shall be listed on such national securities exchange or automated
      quotation system.

     

    (d) Certain
      Actions Prohibited.
      The
      Company will not, by amendment of its charter or through any re-organi-zation,
      transfer of assets, consolidation, mer-ger, dissolution, issue or sale of
      securities, or any other voluntary action, avoid or seek to avoid the observance
      or performance of any of the terms to be observed or performed by it hereunder,
      but will at all times in good faith assist in the carrying out of all the
      provisions of this Warrant and in the taking of all such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilu-tion or other
      impairment, consistent with the tenor and purpose of this Warrant. Without
      limiting the general-ity of the foregoing, the Company (i) will not increase
      the
      par value of any shares of Common Stock receivable upon the exercise of this
      Warrant above the Exercise Price then in effect, and (ii) will take all such
      actions as may be necessary or appropriate in order that the Company may validly
      and legally issue fully paid and nonassessable shares of Common Stock upon
      the
      exercise of this Warrant.

     

    (e) Successors
      and Assigns.
      This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation, or acquisition of all or sub-stantially all the Company’s
      assets.

     

    4. Antidilution
      Provisions.  During
      the Exercise Period, the Exercise Price and the number of Warrant Shares shall
      be subject to adjustment from time to time as provided in this Paragraph
      4.

     

    
      
         

      

      
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    In
      the
      event that any adjustment of the Exercise Price as required herein results
      in a
      fraction of a cent, such Exercise Price shall be rounded up to the nearest
      cent.

     

    (a) Adjustment
      of Exercise Price and Number of Shares upon Issuance of Common
      Stock.
      Except
      as otherwise provided in Paragraphs 4(c) and 4(e) hereof, if and whenever on
      or
      after the date of issuance of this Warrant, the Company issues or sells, or
      in
      accordance with Paragraph 4(b) hereof is deemed to have issued or sold, any
      shares of Common Stock for no consideration or for a consideration per share
      (before deduction of reasonable expenses or commissions or underwriting
      discounts or allowances in connection therewith) less than the Market Price
      on
      the date of issuance (a “Dilutive Issuance”), then immediately upon the Dilutive
      Issuance, the Exercise Price will be reduced to a price determined by
      multiplying the Exercise Price in effect immediately prior to the Dilutive
      Issuance by a fraction, (i) the numerator of which is an amount equal to the
      sum
      of (x) the number of shares of Common Stock actually outstanding immediately
      prior to the Dilutive Issuance, plus (y) the quotient of the aggregate
      consideration, calculated as set forth in Paragraph 4(b) hereof, received by
      the
      Company upon such Dilutive Issuance divided by the Market Price in effect
      immediately prior to the Dilutive Issuance, and (ii) the denominator of which
      is
      the total number of shares of Common Stock Deemed Outstanding (as defined below)
      immediately after the Dilutive Issuance. 

     

    (b) Effect
      on Exercise Price of Certain Events.
      For
      purposes of determining the adjusted Exercise Price under Paragraph 4(a) hereof,
      the following will be applicable:

     

    (i) Issuance
      of Rights or Options.
      If the
      Company in any manner issues or grants any warrants, rights or options, whether
      or not immediately exercisable, to subscribe for or to purchase Common Stock
      or
      other securities convertible into or exchangeable for Common Stock (“Convertible
      Securities”) (such warrants, rights and options to purchase Common Stock or
      Convertible Securities are hereinafter referred to as “Options”) and the price
      per share for which Common Stock is issuable upon the exercise of such Options
      is less than the Market Price on the date of issuance or grant of such Options,
      then the maximum total number of shares of Common Stock issuable upon the
      exercise of all such Options will, as of the date of the issuance or grant
      of
      such Options, be deemed to be outstanding and to have been issued and sold
      by
      the Company for such price per share. For purposes of the preceding sentence,
      the “price per share for which Common Stock is issuable upon the exercise of
      such Options” is determined by dividing (i) the total amount, if any, received
      or receivable by the Company as consideration for the issuance or granting
      of
      all such Options, plus the minimum aggregate amount of additional consideration,
      if any, payable to the Company upon the exercise of all such Options, plus,
      in
      the case of Convertible Securities issuable upon the exercise of such Options,
      the minimum aggregate amount of additional consideration payable upon the
      conversion or exchange thereof at the time such Convertible Securities first
      become convertible or exchangeable, by (ii) the maximum total number of shares
      of Common Stock issuable upon the exercise of all such Options (assuming full
      conversion of Convertible Securities, if applicable). No further adjustment
      to
      the Exercise Price will be made upon the actual issuance of such Common Stock
      upon the exercise of such Options or upon the conversion or exchange of
      Convertible Securities issuable upon exercise of such Options.

     

    (ii) Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities, whether or
      not
      immediately convertible (other than where the same are issuable upon the
      exercise of Options) and the price per share for which Common Stock is issuable
      upon such conversion or exchange is less than the Market Price on the date
      of
      issuance, then the maximum total number of shares of Common Stock issuable
      upon
      the conversion or exchange of all such Convertible Securities will, as of the
      date of the issuance of such Convertible Securities, be deemed to be outstanding
      and to have been issued and sold by the Company for such price per share. For
      the purposes of the preceding sentence, the “price per share for which Common
      Stock is issuable upon such conversion or exchange” is determined by dividing
      (i) the total amount, if any, received or receivable by the Company as
      consideration for the issuance or sale of all such Convertible Securities,
      plus
      the minimum aggregate amount of additional consideration, if any, payable to
      the
      Company upon the conversion or exchange thereof at the time such Convertible
      Securities first become convertible or exchangeable, by (ii) the maximum total
      number of shares of Common Stock issuable upon the conversion or exchange of
      all
      such Convertible Securities. No further adjustment to the Exercise Price will
      be
      made upon the actual issuance of such Common Stock upon conversion or exchange
      of such Convertible Securities.

     

    
      
         

      

      
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    (iii) Change
      in Option Price or Conversion Rate.
      If there
      is a change at any time in (i) the amount of additional consideration payable
      to
      the Company upon the exercise of any Options; (ii) the amount of additional
      consideration, if any, payable to the Company upon the conversion or exchange
      of
      any Convertible Securities; or (iii) the rate at which any Convertible
      Securities are convertible into or exchangeable for Common Stock (other than
      under or by reason of provisions designed to protect against dilution), the
      Exercise Price in effect at the time of such change will be readjusted to the
      Exercise Price which would have been in effect at such time had such Options
      or
      Convertible Securities still outstanding provided for such changed additional
      consideration or changed conversion rate, as the case may be, at the time
      initially granted, issued or sold.

     

    (iv) Treatment
      of Expired Options and Unexercised Convertible
      Securities.
      If, in
      any case, the total number of shares of Common Stock issuable upon exercise
      of
      any Option or upon conversion or exchange of any Convertible Securities is
      not,
      in fact, issued and the rights to exercise such Option or to convert or exchange
      such Convertible Securities shall have expired or terminated, the Exercise
      Price
      then in effect will be readjusted to the Exercise Price which would have been
      in
      effect at the time of such expiration or termination had such Option or
      Convertible Securities, to the extent outstanding immediately prior to such
      expiration or termination (other than in respect of the actual number of shares
      of Common Stock issued upon exercise or conversion thereof), never been
      issued.

     

    (v) Calculation
      of Consideration Received.
      If any
      Common Stock, Options or Convertible Securities are issued, granted or sold
      for
      cash, the consideration received therefor for purposes of this Warrant will
      be
      the amount received by the Company therefor, before deduction of reasonable
      commissions, underwriting discounts or allowances or other reasonable expenses
      paid or incurred by the Company in connection with such issuance, grant or
      sale.
      In case any Common Stock, Options or Convertible Securities are issued or sold
      for a consideration part or all of which shall be other than cash, the amount
      of
      the consideration other than cash received by the Company will be the fair
      value
      of such consideration, except where such consideration consists of securities,
      in which case the amount of consideration received by the Company will be the
      Market Price thereof as of the date of receipt. In case any Common Stock,
      Options or Convertible Securities are issued in connection with any acquisition,
      merger or consolidation in which the Company is the surviving corporation,
      the
      amount of consideration therefor will be deemed to be the fair value of such
      portion of the net assets and business of the non-surviving corporation as
      is
      attributable to such Common Stock, Options or Convertible Securities, as the
      case may be. The fair value of any consideration other than cash or securities
      will be determined in good faith by the Board of Directors of the
      Company.

     

    
      
         

      

      
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    (vi) Exceptions
      to Adjustment of Exercise Price.
      No
      adjustment to the Exercise Price will be made (i) upon the exercise of any
      warrants, options or convertible securities granted, issued and outstanding
      on
      the date of issuance of this Warrant; (ii) upon the grant or exercise of any
      stock or options which may hereafter be granted or exercised under any employee
      benefit plan, stock option plan or restricted stock plan of the Company now
      existing or to be implemented in the future, so long as the issuance of such
      stock or options is approved by a majority of the independent members of the
      Board of Directors of the Company or a majority of the members of a committee
      of
      independent directors established for such purpose; or (iii) upon the exercise
      of the Warrants.

     

    (c) Subdivision
      or Combination of Common Stock.
      If the
      Company at any time subdivides (by any stock split, stock dividend,
      recapitalization, reorganization, reclassification or otherwise) the shares
      of
      Common Stock acquirable 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. If the
      Company at any time combines (by reverse stock split, recapitalization,
      reorganization, reclassification or otherwise) the shares of Common Stock
      acquirable 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.

     

    (d) Adjustment
      in Number of Shares.
      Upon
      each adjustment of the Exercise Price pursuant to the provisions of this
      Paragraph 4, the number of shares of Common Stock issuable upon exercise of
      this
      Warrant shall be adjusted by multiplying a number equal to the Exercise Price
      in
      effect immediately prior to such adjustment by the number of shares of Common
      Stock issuable upon exercise of this Warrant immediately prior to such
      adjustment and dividing the product so obtained by the adjusted Exercise
      Price.

     

    (e) Consolidation,
      Merger or Sale.
      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 holder
      of this Warrant will have the right to acquire and receive upon exercise of
      this
      Warrant in lieu of the shares of Common Stock immediately theretofore acquirable
      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 acquirable 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 Paragraph 4 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. The Company will not effect
      any
      consolidation, merger or sale or conveyance unless prior to the consummation
      thereof, the successor corporation (if other than the Company) assumes by
      written instrument the obligations under this Paragraph 4 and the obligations
      to
      deliver to the holder of this Warrant such shares of stock, securities or assets
      as, in accordance with the foregoing provisions, the holder may be entitled
      to
      acquire.

     

    
      
         

      

      
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    (f) Distribution
      of Assets.
      In case
      the Company shall declare or make any distribution of its assets (including
      cash) to holders of Common Stock as a partial liquidating dividend, by way
      of
      return of capital or otherwise, then, after the date of record for determining
      shareholders entitled to such distribution, but prior to the date of
      distribution, the holder of this Warrant shall be entitled upon exercise of
      this
      Warrant for the purchase of any or all of the shares of Common Stock subject
      hereto, to receive the amount of such assets which would have been payable
      to
      the holder had such holder been the holder of such shares of Common Stock on
      the
      record date for the determination of shareholders entitled to such
      distribution.

     

    (g) 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 holder
      of this Warrant, which notice shall state the Exercise Price resulting from
      such
      adjustment and the increase or decrease 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. Such
      calculation shall be certified by the Chief Financial Officer of the
      Company.

     

    (h) Minimum
      Adjustment of Exercise Price.
      No
      adjustment of the Exercise Price shall be made in an amount of less than 1%
      of
      the Exercise Price in effect at the time such adjustment is otherwise required
      to be made, but any such lesser adjustment shall be carried forward and shall
      be
      made at the time and together with the next subsequent adjustment which,
      together with any adjustments so carried forward, shall amount to not less
      than
      1% of such Exercise Price.

     

    (i) No
      Fractional Shares.
      No
      fractional shares of Common Stock are to be issued upon the exercise of this
      Warrant, but the Company shall pay a cash adjustment in respect of any
      fractional share which would otherwise be issuable in an amount equal to the
      same fraction of the Market Price of a share of Common Stock on the date of
      such
      exercise.

     

    (j) Other
      Notices.
      In case
      at any time:

     

    (i) the
      Company shall declare any dividend upon the Common Stock payable in shares
      of
      stock of any class or make any other distribution (including dividends or
      distributions payable in cash out of retained earnings) to the holders of the
      Common Stock;

     

    (ii) the
      Company shall offer for subscription pro rata to the holders of the Common
      Stock
      any additional shares of stock of any class or other rights;

     

    (iii) there
      shall be any capital reorganiza-tion of the Company, or reclassification of
      the
      Common Stock, or consolidation or merger of the Company with or into, or sale
      of
      all or substan-tially all its assets to, another corporation or entity;
      or

     

    (iv) there
      shall be a voluntary or involun-tary dissolution, liquidation or winding up
      of
      the Company;

     

    
      
         

      

      
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    then,
      in
      each such case, the Company shall give to the holder of this Warrant (a) notice
      of the date on which the books of the Company shall close or a record shall
      be
      taken for determining the holders of Common Stock entitled to receive any such
      divi-dend, distribution, or subscription rights or for determining the holders
      of Common Stock entitled to vote in respect of any such reorganization,
      reclassification, consolidation, merger, sale, dissolution, liquidation or
      winding-up and (b) in the case of any such reorganization, reclassification,
      consolidation, merger, sale, dissolution, liquidation or winding-up, notice
      of
      the date (or, if not then known, a reasonable approximation thereof by the
      Company) when the same shall take place. Such notice shall also specify the
      date
      on which the holders of Common Stock shall be entitled to receive such dividend,
      distribution, or subscription rights or to exchange their Common Stock for
      stock
      or other securities or property deliverable upon such reorganization,
      re-classification, consolidation, merger, sale, dissolution, liquidation, or
      winding-up, as the case may be. Such notice shall be given at least thirty
      (30)
      days prior to the record date or the date on which the Company’s books are
      closed in respect thereto. Failure to give any such notice or any defect therein
      shall not affect the validity of the proceedings referred to in clauses (i),
      (ii), (iii) and (iv) above.

     

    (k) Certain
      Events.
      If any
      event occurs of the type contemplated by the adjustment provisions of this
      Paragraph 4 but not expressly provided for by such provisions, the Company
      will
      give notice of such event as provided in Paragraph 4(g) hereof, and the
      Company’s Board of Directors will make an appropriate adjustment in the Exercise
      Price and the number of shares of Common Stock acquirable upon exercise of
      this
      Warrant so that the rights of the holder shall be neither enhanced nor
      diminished by such event.

     

    (l) Certain
      Definitions. 

     

    (i) “Common
      Stock Deemed Outstanding”
      shall
      mean the number of shares of Common Stock actually outstanding (not including
      shares of Common Stock held in the treasury of the Company), plus (x) pursuant
      to Paragraph 4(b)(i) hereof, the maximum total number of shares of Common Stock
      issuable upon the exercise of Options, as of the date of such issuance or grant
      of such Options, if any, and (y) pursuant to Paragraph 4(b)(ii) hereof, the
      maximum total number of shares of Common Stock issuable upon conversion or
      exchange of Convertible Securities, as of the date of issuance of such
      Convertible Securities, if any. 

     

    (ii) “Market
      Price,”
      as of
      any date, (i) means the average of the last reported sale prices for the shares
      of Common Stock on the OTCBB for the five (5) Trading Days immediately preceding
      such date as reported by Bloomberg, or (ii) if the OTCBB is not the principal
      trading market for the shares of Common Stock, the average of the last reported
      sale prices on the principal trading market for the Common Stock during the
      same
      period as reported by Bloomberg, or (iii) if market value cannot be calculated
      as of such date on any of the foregoing bases, the Market Price shall be the
      fair market value as reasonably determined in good faith by (a) the Board of
      Directors of the Company or, at the option of a majority-in-interest of the
      holders of the outstanding Warrants by (b) an independent investment bank of
      nationally recognized standing in the valuation of businesses similar to the
      business of the corporation. The manner of determining the Market Price of
      the
      Common Stock set forth in the foregoing definition shall apply with respect
      to
      any other security in respect of which a determination as to market value must
      be made hereunder.

     

    
      
         

      

      
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    (iii) “Common
      Stock,”
      for
      purposes of this Paragraph 4, includes the Common Stock, par value $.0001 per
      share, and any additional class of stock of the Company having no preference
      as
      to dividends or distributions on liquidation, provided that the shares
      purchasable pursuant to this Warrant shall include only shares of Common Stock,
      par value $.0001 per share, in respect of which this Warrant is exercisable,
      or
      shares resulting from any subdivision or combination of such Common Stock,
      or in
      the case of any reorganization, reclassification, consolidation, merger, or
      sale
      of the character referred to in Paragraph 4(e) hereof, the stock or other
      securities or property provided for in such Paragraph.

     

    5. Issue
      Tax.  The
      issuance of certificates for Warrant Shares upon the exercise of this Warrant
      shall be made without charge to the holder of this Warrant or such shares for
      any issuance tax or other costs in respect thereof, provided that the Company
      shall not be required to pay any tax which may be payable in respect of any
      transfer involved in the issuance and delivery of any certificate in a name
      other than the holder of this Warrant.

     

    6. No
      Rights or Liabilities as a Shareholder. This
      Warrant shall not entitle the holder hereof to any voting rights or other rights
      as a shareholder of the Company. No provision of this Warrant, in the absence
      of
      affirmative action by the holder hereof to purchase Warrant Shares, and no
      mere
      enumeration herein of the rights or privileges of the holder hereof, shall
      give
      rise to any liability of such holder for the Exercise Price or as a shareholder
      of the Company, whether such liability is asserted by the Company or by
      creditors of the Company.

     

    7. Transfer,
      Exchange, and Replacement of Warrant.

     

    (a) Restriction
      on Transfer.
      This
      Warrant and the rights granted to the holder hereof are transferable, in whole
      or in part, upon surrender of this Warrant, together with a properly executed
      assignment in the form attached hereto, at the office or agency of the Company
      referred to in Paragraph 7(e) below, pro-vided, however, that any transfer
      or assignment shall be subject to the conditions set forth in Paragraph 7(f)
      hereof and to the applicable provisions of the Securities Purchase Agreement.
      Until due presentment for registration of transfer on the books of the Company,
      the Company may treat the registered holder hereof as the owner and holder
      hereof for all purposes, and the Company shall not be affected by any notice
      to
      the con-trary. Notwithstanding anything to the contrary contained herein, the
      registration rights described in Paragraph 8 are assignable only in accordance
      with the provisions of that certain Registration Rights Agreement, dated June
      18, 2004, by and among the Company and the other signatories thereto (the
“Registration Rights Agreement”).

     

    (b) Warrant
      Exchangeable for Different Denomina-tions.
      This
      Warrant is exchange-able, upon the surrender hereof by the holder hereof at
      the
      office or agency of the Company referred to in Paragraph 7(e) below, for new
      Warrants of like tenor representing in the aggregate the right to purchase
      the
      number of shares of Common Stock which may be purchased hereunder, each of
      such
      new Warrants to represent the right to purchase such number of shares as shall
      be designated by the holder hereof at the time of such surrender.

     

    (c) Replacement
      of Warrant.
      Upon
      receipt of evi-dence reasonably satisfactory to the Company of the loss, theft,
      destruction, or mutilation of this Warrant and, in the case of any such loss,
      theft, or destruc-tion, upon delivery of an indemnity agreement reason-ably
      satisfactory in form and amount to the Company, or, in the case of any such
      mutilation, upon surrender and cancellation of this Warrant, the Company, at
      its
      expense, will execute and deliver, in lieu thereof, a new Warrant of like
      tenor.

     

    
      
         

      

      
        -
          9 -

        
          

        

      

      
         

      

    

    

     

    (d) Cancellation;
      Payment of Expenses.
      Upon the
      surrender of this Warrant in connection with any trans-fer, exchange, or
      replacement as provided in this Paragraph 7, this Warrant shall be promptly
      canceled by the Company. The Company shall pay all taxes (other than securities
      transfer taxes) and all other expenses (other than legal expenses, if any,
      incurred by the holder or transferees) and charges payable in connection with
      the preparation, execution, and delivery of Warrants pursuant to this Paragraph
      7.

     

    (e) Register.
      The
      Company shall maintain, at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee and each prior owner of this
      Warrant.

     

    (f) Exercise
      or Transfer Without Registration.
      If, at
      the time of the surrender of this Warrant in connection with any exercise,
      transfer, or exchange of this Warrant, this Warrant (or, in the case of any
      exercise, the Warrant Shares issuable hereunder), shall not be registered under
      the Securities Act of 1933, as amended (the “Securities Act”) and under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such exercise, transfer, or exchange, (i) that the holder
      or transferee of this Warrant, as the case may be, furnish to the Company a
      written opinion of counsel, which opinion and counsel are acceptable to the
      Company, to the effect that such exercise, transfer, or exchange may be made
      without registration under said Act and under applicable state securities or
      blue sky laws, (ii) that the holder or transferee execute and deliver to the
      Company an investment letter in form and substance acceptable to the Company
      and
      (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)
      promulgated under the Securities Act; provided that no such opinion, letter
      or
      status as an “accredited investor” shall be required in connection with a
      transfer pursuant to Rule 144 under the Securities Act. The first holder of
      this
      Warrant, by taking and holding the same, represents to the Company that such
      holder is acquiring this Warrant for investment and not with a view to the
      distribution thereof. 

     

    8. Registration
      Rights. 

     

    The
      initial holder of this Warrant (and certain assignees thereof) is entitled
      to
      the benefit of such registration rights in respect of the Warrant Shares as
      are
      set forth in Section 2 of the Registration Rights Agreement.

     

    
      
         

      

      
        -
          10 -

        
          

        

      

      
         

      

    

    

     

    9. Notices.
      All
      notices, requests, and other communications required or permitted to be given
      or
      delivered hereunder to the holder of this Warrant shall be in writing, and
      shall
      be personally delivered, or shall be sent by certified or registered mail or
      by
      recognized overnight mail courier, postage prepaid and addressed, to such holder
      at the address shown for such holder on the books of the Company, or at such
      other address as shall have been furnished to the Company by notice from such
      holder. All notices, requests, and other communications required or permitted
      to
      be given or delivered hereunder to the Company shall be in writing, and shall
      be
      personally delivered, or shall be sent by certified or registered mail or by
      recognized overnight mail courier, postage prepaid and addressed, to the office
      of the Company at 16801 Addison Road, Suite 310, Addison, TX 75001, Attention:
      President and Chief Executive Officer, or at such other address as shall have
      been furnished to the holder of this Warrant by notice from the Company. Any
      such notice, request, or other communication may be sent by facsimile, but
      shall
      in such case be subsequently confirmed by a writing personally delivered or
      sent
      by certified or registered mail or by recognized overnight mail courier as
      provided above. All notices, requests, and other communications shall be deemed
      to have been given either at the time of the receipt thereof by the person
      entitled to re-ceive such notice at the address of such person for purposes
      of
      this Paragraph 9, or, if mailed by registered or certified mail or with a
      recognized overnight mail courier upon deposit with the United States Post
      Office or such overnight mail courier, if postage is prepaid and the mailing
      is
      properly addressed, as the case may be.

     

    10. Governing
      Law. THIS
      WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS
      OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
      LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT TO
      ANY
      DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED INTO IN CONNECTION
      HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
      IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
      SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
      UPON
      A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
      SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
      SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
      BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
      SUIT
      OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
      BY
      SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT
      PREVAIL IN ANY DISPUTE ARISING UNDER THIS WARRANT SHALL BE RESPONSIBLE FOR
      ALL
      FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
      IN CONNECTION WITH SUCH DISPUTE.

     

    11. Miscellaneous.

     

    (a) Amendments.
      This
      Warrant and any provision hereof may only be amended by an instrument in writing
      signed by the Company and the holder hereof.

     

    
      
         

      

      
        -
          11 -

        
          

        

      

      
         

      

    

    

     

    (b) Descriptive
      Headings.
      The
      descriptive headings of the several paragraphs of this Warrant are in-serted
      for
      purposes of reference only, and shall not affect the meaning or construction
      of
      any of the provisions hereof.

     

    (c) Cashless
      Exercise.
      Notwithstanding anything to the contrary contained in this Warrant, if the
      resale of the Warrant Shares by the holder is not then registered pursuant
      to an
      effective registration statement under the Securities Act, this Warrant may
      be
      exercised by presentation and surrender of this Warrant to the Company at its
      principal executive offices with a written notice of the holder’s intention to
      effect a cashless exercise, including a calculation of the number of shares
      of
      Common Stock to be issued upon such exercise in accordance with the terms hereof
      (a “Cashless Exercise”). In the event of a Cashless Exercise, in lieu of paying
      the Exercise Price in cash, the holder shall surrender this Warrant for that
      number of shares of Common Stock determined by multiplying the number of Warrant
      Shares to which it would otherwise be entitled by a fraction, the numerator
      of
      which shall be the difference between the then current Market Price per share
      of
      the Common Stock and the Exercise Price, and the denominator of which shall
      be
      the then current Market Price per share of Common Stock. For example, if the
      holder is exercising 100,000 Warrants with a per Warrant exercise price of
      $0.75
      per share through a cashless exercise when the Common Stock’s current Market
      Price per share is $2.00 per share, then upon such Cashless Exercise the holder
      will receive 62,500 shares of Common Stock.

     

    (d) Remedies.
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to the holder, by vitiating the intent and purpose of the
      transaction contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for a breach of its obligations under this Warrant will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Warrant, that the holder shall be entitled,
      in
      addition to all other available remedies at law or in equity, and in addition
      to
      the penalties assessable herein, to an injunction or injunctions restraining,
      preventing or curing any breach of this Warrant and to enforce specifically the
      terms and provisions thereof, without the necessity of showing economic loss
      and
      without any bond or other security being required.

     

    

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    

     

    
      
         

      

      
        -
          12 -

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed by its duly authorized
      officer.

    
      	 	 	 
	 	 	 
	 	 	 
	 	DEALERADVANCE,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Steven
                E. Humphries

              President
                and Chief Executive Officer

            
	 Dated
              as of
              January 11, 2007	  

    

     

    

    

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    FORM
      OF EXERCISE AGREEMENT

     

    

     

    Dated:
      ________ __, 200_

     

    

     

    To: ______________________

     

    

     

    The
      undersigned, pursuant to the provisions set forth in the within Warrant, hereby
      agrees to purchase ________ shares of Common Stock covered by such Warrant,
      and
      makes pay-ment herewith in full therefor at the price per share provided by
      such
      Warrant in cash or by certified or official bank check in the amount of, or,
      if
      the resale of such Common Stock by the undersigned is not currently registered
      pursuant to an effective registration statement under the Securities Act of
      1933, as amended, by surrender of securities issued by the Company (including
      a
      portion of the Warrant) having a market value (in the case of a portion of
      this
      Warrant, determined in accordance with Section 11(c) of the Warrant) equal
      to
      $_________. Please issue a certificate or certifi-cates for such shares of
      Common Stock in the name of and pay any cash for any fractional share
      to:

     

    

     

    Name:
       ______________________________

    

    

    Signature: 

    Address:____________________________

    _____________________________

    

    

    
      	
            	Note:	
              The
                above signature should correspond exactly with the name on the face
                of the
                within Warrant, if applicable.

            

    

    

     

    and,
      if
      said number of shares of Common Stock shall not be all the shares purchasable
      under the within Warrant, a new Warrant is to be issued in the name of said
      undersigned covering the balance of the shares purchasable thereunder less
      any
      frac-tion of a share paid in cash.

     

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    FORM
      OF ASSIGNMENT

     

    

     

    

     

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

    

     

    
      	
              Name
                of Assignee

            	
              Address

            	
              No
                of Shares

            
	 	 	 
	 	 	 
	 	 	 

    

    

     

    ,
      and
      hereby irrevocably constitutes and appoints ___________________________________
      as agent and attorney-in-fact to trans-fer said Warrant on the books of the
      within-named corporation, with full power of substitution in the
      premises.

     

     

    Dated: ________
      __, 200_

     

    

     

    In
      the
      presence of:                                    
      ______________________________

     

    Name:______________________________

    

     

    Signature:_________________________

    Title
      of
      Signing Officer or Agent (if any):

    ______________________________

    Address:             
       ______________________________

    ______________________________

    

    

    
      	 	
              Note:

            	
              The
                above signature should correspond exactly with the name on the face
                of the
                within Warrant, if applicable.GVI
      SECURITY SOLUTIONS, INC. 

    SUBSCRIPTION
      AGREEMENT

     

    SUBSCRIPTION
      AGREEMENT made
      as
      of this __ day of December, 2006 between GVI Security Solutions, Inc., a
      Delaware corporation (the “Company”), and ___________________ (the
“Subscriber”).

     

    WHEREAS,
      the Company desires to issue up to 4,167,000 shares of the Company’s common
      stock, par value $.001 per share (“Common Stock”), in a private placement (this
“Offering”), at a price of $0.60 per share and on the terms and conditions
      hereinafter set forth, and the Subscriber desires to acquire the number of
      shares of Common Stock set forth on the signature page hereof.

     

    NOW,
      THEREFORE, for and in consideration of the premises and the mutual covenants
      hereinafter set forth, the parties hereto do hereby agree as
      follows:

     

    
      	 	
              I.

            	
              SUBSCRIPTION
                FOR UNITS AND REPRESENTATIONS BY AND COVENANTS OF
                SUBSCRIBER

            

    

     

    1.1 Subject
      to the terms and conditions hereinafter set forth, the Subscriber hereby
      subscribes for and agrees to purchase from the Company such number of shares
      (the “Shares”) of Common Stock as is set forth upon the signature page hereof at
      a price equal to $0.60 per share, and the Company agrees to sell such Shares
      to
      the Subscriber for said purchase price. Subscriber shall pay the purchase price
      by delivery of a certified or bank check payable to the Company (or by wire
      transfer of such amount to an account designated by the Company),
      contemporaneously with the execution and delivery of this Subscription
      Agreement. 

     

    1.2 The
      Subscriber recognizes that the purchase of Common Stock involves a high degree
      of risk in that (i) an investment in the Company is highly speculative and
      only
      investors who can afford the loss of their entire investment should consider
      investing in the Company and the Common Stock; (ii) he may not be able to
      liquidate his investment; and (iii) transferability of the Common Stock is
      extremely limited.

     

    1.3
       The
      Subscriber represents and warrants that it is an “accredited investor” as such
      term in defined in Rule 501 of Regulation D promulgated under the Securities
      Act
      of 1933, as amended (the “Act”), and that it is able to bear the economic risk
      of an investment in the Common Stock. Specifically,
      Subscriber is (check appropriate items(s)): 

    

      
        	 	
                ___

              	
                (i)
                  a bank as defined in Section 3(a)(2) of the Act, or a savings and
                  loan
                  association or other institution as defined in Section 3(a)(5)(A)
                  of the
                  Act whether acting in its individual or fiduciary capacity; a broker
                  or
                  dealer registered pursuant to Section 15 of the Securities Exchange
                  Act of
                  1934; an insurance company as defined in Section 2(13) of the Act;
                  an
                  investment company registered under the Investment Company Act
                  of 1940 or
                  a business development company as defined in Section 2(a)(48) of
                  that Act;
                  a Small Business Investment Company licensed by the U.S. Small
                  Business
                  Administration under Section 301(c) or (d) of the Small Business
                  Investment Act of 1958; a plan established and maintained by a
                  state, its
                  political subdivisions, or any agency or instrumentality of a state
                  or its
                  political subdivisions, for the benefit of its employees, if such
                  plan has
                  total assets in excess of $5,000,000; an employee benefit plan
                  within the
                  meaning of the Employee Retirement Income Security Act of 1974,
                  if the
                  investment decision is made by a plan fiduciary, as defined in
                  Section
                  3(21) of such Act, which is either a bank, savings and loan association,
                  insurance company, or registered investment adviser, or if the
                  employee
                  benefit plan has total assets in excess of $5,000,000 or, if a
                  self-directed plan, with investment decisions made solely by persons
                  that
                  are accredited investors;

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
        	 	
                ___

              	
                (ii)
                  a private business development company as defined in Section 202(a)(22)
                  of
                  the Investment Advisers Act of
                  1940;

              

      

       

      
        	 	
                ___

              	
                (iii)
                  an organization described in Section 501(c)(3) of the Internal
                  Revenue
                  Code of 1986, as amended, corporation, Massachusetts or similar
                  business
                  trust, or partnership, not formed for the specific purpose of acquiring
                  the Shares, with total assets in excess of
                  $5,000,000;

              

      

       

      
        	 	
                ___

              	
                (iv)
                  a director or executive officer of the
                  Company;

              

      

       

      
        	 	
                ___

              	
                (v)
                  a natural person whose individual net worth, or joint net worth
                  with that
                  person’s spouse, at the time of his or her purchase exceeds
                  $1,000,000;

              

      

       

      
        	 	
                ___ 

              	
                (vi)
                  a natural person who had an individual income (not including his
                  or her
                  spouse’s income) in excess of $200,000 in 2004 and 2005 or joint income
                  with his or her spouse in excess of $300,000 in each of those years
                  and
                  has a reasonable expectation of reaching such income level in
                  2006;

              

      

       

      
        	 	
                ___

              	
                (vii)
                  a trust, with total assets in excess of $5,000,000, not formed
                  for the
                  specific purpose of acquiring the Shares,
                  whose purchase is directed by a person having such knowledge and
                  experience in financial and business matters that he or she is
                  capable of
                  evaluating the merits and risks entailed in the purchase of the
                  Shares;
                  or

              

      

       

      
        	 	
                ___

              	
                (viii)
                  an entity in which all of the equity owners are Accredited Investors
                  (if
                  this alternative is checked, Subscriber
                  must
                  identify each equity owner and provide statements signed by each
                  demonstrating how each is qualified as an accredited
                  investor).

              

      

    

     

    1.4 The
      Subscriber acknowledges that it has prior investment experience, and that
      Subscriber recognizes the highly speculative nature of this
      investment.

     

    1.5 The
      Subscriber acknowledges that it has been furnished by the Company during the
      course of this transaction with all information regarding the Company that
      it
      has requested and; that it has been afforded the opportunity to meet with,
      ask
      questions of and receive answers from duly authorized officers or other
      representatives of the Company concerning the terms and conditions of this
      Offering. 

     

    1.6 The
      Subscriber acknowledges that this Offering may involve tax consequences, and
      that the Company has not provided tax advice or information to the Subscriber.
      The Subscriber acknowledges that it must retain his own professional advisors
      to
      evaluate the tax and other consequences of an investment in the Common Stock.
      

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.7 The
      Subscriber acknowledges that this Offering has not been reviewed by the United
      States Securities and Exchange Commission (“SEC”) because of the Company’s
      representations that this is intended to be a nonpublic offering pursuant to
      Sections 4(2) and/or 3(b) of the Act. The Subscriber represents that the Shares
      are being purchased for its own account, for investment and not for distribution
      or resale to others. The Subscriber agrees that it will not sell or otherwise
      transfer the Shares unless they are registered under the Act or unless an
      exemption from such registration is available.

     

    1.8 The
      Subscriber understands that the Shares have not been registered under the Act.
      The Subscriber understands that Rule 144 (the “Rule”) promulgated under the
      Act requires, among other conditions, a one year holding period prior to the
      resale (in limited amounts) of securities acquired in a non-public offering
      without having to satisfy the registration requirements under the Act. The
      Subscriber understands that the Company is currently a reporting company but
      makes no representation or warranty regarding its fulfillment in the future
      of
      any reporting requirements under the Securities Exchange Act of 1934, as
      amended, or its dissemination to the public of any current financial or other
      information concerning the Company, as is required by the Rule as one of the
      conditions of its availability. The Subscriber agrees that the Company may,
      if
      it desires, permit the transfer of the Shares out of Subscriber’s name only when
      Subscriber’s request for transfer is accompanied by an opinion of counsel
      reasonably satisfactory to the Company that neither the sale nor the proposed
      transfer results in a violation of the Act or any applicable state “blue sky”
laws. 

     

    1.9 The
      Subscriber consents to the placement of a legend on any certificate or other
      document evidencing the Shares stating that they have not been registered under
      the Act and setting forth or referring to the restrictions on transferability
      and sale thereof.

     

    1.10 The
      Subscriber acknowledges that if he is a Registered Representative of an NASD
      member firm, he must give such firm the notice required by the NASD’s Rules of
      Fair Practice, receipt of which must be acknowledged by such firm on the
      signature page hereof.

     

    
      	 	
              II.

            	
              REPRESENTATIONS
                BY THE COMPANY

            

    

     

    2.1 The
      Company represents and warrants to the Subscriber that prior to the consummation
      of this Offering and on the date of the Closing:

     

    (a) The
      Company is a corporation duly organized, existing and in good standing under
      the
      laws of the State of Delaware and has the corporate power to conduct the
      business which it conducts and proposes to conduct.

     

    (b) The
      execution, delivery and performance of this Subscription Agreement by the
      Company will have been duly approved by the Board of Directors of the Company
      and all other actions required to authorize and effect the offer and sale of
      the
      Shares will have been duly taken and approved.

     

    (c) The
      Shares have been duly and validly authorized. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    III. BACK
      REGISTRATION RIGHTS

     

    3.1 “Piggyback”
      Registration Rights.
      If, at
      any time before December 31, 2008, the Company shall determine to proceed with
      the actual preparation and filing of a registration statement under the Act
      in
      connection with a proposed offer and sale of any of its equity securities by
      it
      or any of its security holders (other than a registration statement on Form
      S 4,
      S 8 or other limited purpose form), the Company will give written notice of
      its
      determination to all record holders of the Common Stock sold in the Offering.
      Upon the written request of any holder of the Shares or a transferee of such
      holder (the “Holder” or, collectively, the “Holders”), within 15 days after
      receipt of any such notice from the Company, the Company will cause all of
      the
      Shares with respect to which a request for inclusion has been received to be
      included in such registration statement, all to the extent required to permit
      the sale or other disposition by the prospective seller or sellers of the Shares
      to be so registered; provided,
      however,
      that
      the Company’s obligations under this Section 3.1 are subject to the contractual
      rights of any other security holder whose agreement with the Company prior
      to
      the date hereof might limit such inclusion; and, provided further
      that
      nothing herein shall prevent the Company from abandoning or delaying any
      registration at any time, or reducing the number of Shares to be included in
      such registration statement (on a pro rata basis) if the Company, in its sole
      discretion, determines that such reduction is advisable due to the provisions
      of
      Rule 415 under the Act or for any other purpose. If any registration pursuant
      to
      this Section 3.1 shall be underwritten in whole or in part, the Company may
      require that the Shares requested for inclusion pursuant to this Section 3.1
      be
      included in the underwriting on the same terms and conditions as the securities
      otherwise being sold through the underwriters. In such event, the Holders
      requesting inclusion in the registration statement shall, if requested by the
      underwriters, execute an underwriting agreement containing customary
      representations and warranties by selling stockholders and a lock-up on shares
      not being sold. If in the good faith judgment of the managing underwriter of
      such public offering the inclusion of all of the Shares originally covered
      by a
      request for registration (the “Requested Stock”) would reduce the number of
      shares which could be sold by the Company or interfere with the successful
      marketing of the shares of stock offered by the Company, the number of shares
      of
      Requested Stock otherwise to be included in the underwritten public offering
      may
      be reduced pro rata (by number of shares) among the holders thereof requesting
      such registration or excluded in their entirety if so required by the
      underwriter. To the extent only a portion of the Requested Stock is included
      in
      the underwritten public offering, those shares of Requested Stock which are
      thus
      excluded from the underwritten public offering shall be withheld from the market
      by the holders thereof for a period, not to exceed 90 days, which the managing
      underwriter reasonably determines is necessary in order to effect the
      underwritten public offering.

     

    The
      obligation of the Company under this Section 3.1 shall not apply to Shares
      that
      at such time are eligible for immediate resale pursuant to Rule 144(k) under
      the
      Act.

     

    3.2 Registration
      Procedures.
      In
      connection with any registration statement filed pursuant to Section 3.1, the
      Company shall:

     

    (a) furnish
      to the Holders participating in such registration such reasonable number of
      copies of the prospectus as may be necessary in order to facilitate the public
      offering of such securities;

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c) notify
      the Holders, promptly after it shall receive notice thereof, of the time when
      such registration statement has become effective or a supplement to any
      prospectus forming a part of such registration statement has been
      filed;

     

    (d) notify
      the Holders promptly of any request by the SEC for the amending or supplementing
      of such registration statement or prospectus or for additional information;
      and

     

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

     

    The
      Company may require each Holder of Shares as to which any registration is being
      effected to furnish to the Company such information regarding the distribution
      of such Shares as the Company may from time to time reasonably request in
      writing.

     

    3.3 Expenses.

     

    (a) With
      respect to the registration required pursuant to Section 3.1 hereof, all fees,
      costs and expenses of and incidental to such registration, inclusion and public
      offering (as specified in paragraph (b) below) shall be borne by the Company,
      provided, however, that the Holders shall bear their pro rata share of the
      underwriting discount and commissions and transfer taxes and the cost of their
      own counsel.

     

    (b) The
      fees,
      costs and expenses of registration to be borne by the Company as provided in
      paragraph (a) above shall include, without limitation, all registration, filing,
      and NASD fees, printing expenses, fees and disbursements of counsel and
      accountants for the Company, and all legal fees and disbursements and other
      expenses of complying with state securities or blue sky laws of any
      jurisdictions in which the securities to be offered are to be registered and
      qualified (except as provided in 3.3(a) above). Fees and disbursements of
      counsel and accountants for the Holders and any other expenses incurred by
      the
      Holders not expressly included above shall be borne by the Holders.

     

    3.4 Indemnification.

     

    (a) The
      Company will indemnify and hold harmless each Holder of Shares which are
      included in a registration statement pursuant to the provisions of Section
      3.1
      hereof, its directors and officers, and any underwriter (as defined in the
      Act)
      for such Holder and each person, if any, who controls such Holder or such
      underwriter within the meaning of the Act (collectively the “Indemnified
      Holders”), from and against, and will reimburse such Indemnified Holder with
      respect to, any and all loss, damage, liability, cost and expense to which
      such
      Indemnified Holder may become subject under the Act or otherwise, insofar as
      such losses, damages, liabilities, costs or expenses are caused by, arise out
      of
      or are based upon any untrue statement or alleged untrue statement of any
      material fact contained in such registration statement, any prospectus contained
      therein or any amendment or supplement thereto, or the omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein, in light of the circumstances in which they were made,
      not misleading; provided, however, that the Company will not be liable in any
      such case to the extent that any such loss, damage, liability, cost or expenses
      is caused by, arises out of or is based upon an untrue statement or alleged
      untrue statement or omission or alleged omission so made in conformity with
      information furnished by or on behalf of such Indemnified Holder in writing
      specifically for use in the preparation thereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b) Each
      Holder of Shares included in a registration pursuant to the provisions of
      Section 3.1 hereof will indemnify and hold harmless the Company, its directors
      and officers, any controlling person and any underwriter from and against,
      and
      will reimburse the Company, its directors and officers, any controlling person
      and any underwriter with respect to, any and all loss, damage, liability, cost
      or expense to which the Company or any controlling person and/or any underwriter
      may become subject under the Act or otherwise, insofar as such losses, damages,
      liabilities, costs or expenses are caused by, arise out of or are based upon
      any
      untrue statement or alleged untrue statement of any material fact contained
      in
      such registration statement, any prospectus contained therein or any amendment
      or supplement thereto, or the omission or alleged omission of a material fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances in which they were made, not misleading, in each
      case
      to the extent, but only to the extent, that such untrue statement or alleged
      untrue statement or omission or alleged omission was so made in reliance upon
      and in strict conformity with written information furnished by or on behalf
      of
      such Holder specifically for use in the preparation thereof.

     

    (c) Promptly
      after receipt by an indemnified party pursuant to the provisions of paragraph
      (a) or (b) of this Section 3.4 of notice of the commencement of any action
      involving the subject matter of the foregoing indemnity provisions such
      indemnified party will, if a claim thereof is to be made against the
      indemnifying party pursuant to the provisions of said paragraph (a) or (b),
      promptly notify the indemnifying party of the commencement thereof; but the
      omission to so notify the indemnifying party will not relieve it from any
      liability which it may have to any indemnified party otherwise than hereunder
      and will not relieve it from any liability hereunder except to the extent that
      such failure results in the forfeiture by the indemnifying party of substantial
      rights or defenses. In case such action is brought against any indemnified
      party
      and it notifies the indemnifying party of the commencement thereof, the
      indemnifying party shall have the right to participate in, and, to the extent
      that it may wish, jointly with any other indemnifying party similarly notified,
      to assume the defense thereof, with counsel satisfactory to such indemnified
      party, provided, however, if counsel for the indemnifying party concludes that
      a
      single counsel cannot under applicable legal and ethical considerations,
      represent both the indemnifying party and the indemnified party, the indemnified
      party or parties have the right to select separate counsel to participate in
      the
      defense of such action on behalf of such indemnified party or parties. After
      notice from the indemnifying party to such indemnified party of its election
      so
      to assume the defense thereof, the indemnifying party will not be liable to
      such
      indemnified party pursuant to the provisions of said paragraph (a) or (b) for
      any legal or other expense subsequently incurred by such indemnified party
      in
      connection with the defense thereof other than reasonable costs of
      investigation, unless (i) the indemnified party shall have employed counsel
      in
      accordance with the provisions of the preceding sentence, (ii) the indemnifying
      party shall not have employed counsel reasonably satisfactory to the indemnified
      party to represent the indemnified party within a reasonable time after the
      notice of the commencement of the action or (iii) the indemnifying party has,
      in
      its sole discretion, authorized the employment of counsel for the indemnified
      party at the expense of the indemnifying party.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.5 Suspension.
      The
      Company may suspend the effectiveness of the registration statement, or, without
      suspending such effectiveness, instruct the Subscriber that no sales of Shares
      included in the registration statement may be made if, in the Company’s
      reasonable judgment, an event or circumstance occurs and is continuing as a
      result of which such registration statement, any related prospectus or any
      document incorporated therein by reference as then amended or supplemented
      would, in the good faith judgment of the Board of Directors of the Company,
      contain an untrue statement of a material fact or omit to state a material
      fact
      necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading (a “Suspension Period”)
      by providing the Subscriber with written notice of such Suspension Period and
      the reasons therefor. The Company shall use its reasonable efforts to provide
      such notice a reasonable number of days prior to the commencement of a
      Suspension Period, provided that in any event the Company shall provide such
      notice no later than the commencement of such Suspension Period. In addition,
      the Company shall not be required to keep the registration statement effective,
      or may without suspending such effectiveness instruct the holders of Shares
      included in the registration statement not to sell such Shares, during any
      period during which the Company is instructed, directed, ordered or otherwise
      requested by any governmental agency or self-regulatory organization to stop
      or
      suspend such trading or sales (“Supplemental Suspension Period”). The Company
      shall give prompt written notice to Subscriber of the termination of any
      Suspension Period or Supplemental Suspension Period.

     

    
      	
            	IV.	
              MISCELLANEOUS

            

    

     

    4.1 Any
      notice or other communication given hereunder shall be deemed sufficient if
      in
      writing and sent by registered or certified mail, return receipt requested,
      addressed to the Company, at 2801 Trade Center Drive, Suite 120, Carollton,
      Texas 75007, Attn: Joseph Restivo, and to Subscriber at his address indicated
      on
      the signature page of this Subscription Agreement. Notices shall be deemed
      to
      have been given on the date of mailing, except notices of change of address,
      which shall be deemed to have been given when received.

     

    4.2 This
      Subscription Agreement shall not be changed, modified or amended except by
      a
      writing signed by the parties to be charged, and this Subscription Agreement
      may
      not be discharged except by performance in accordance with its terms or by
      a
      writing signed by the party to be charged.

     

    4.3 This
      Subscription Agreement shall be binding upon and inure to the benefit of the
      parties hereto and to their respective heirs, legal representatives, successors
      and assigns. This Subscription Agreement sets forth the entire agreement and
      understanding between the parties as to the subject matter thereof and merges
      and supersedes all prior discussions, agreements and understandings of any
      and
      every nature among them.

     

    4.4 Notwithstanding
      the place where this Subscription Agreement may be executed by any of the
      parties hereto, the parties expressly agree that all the terms and provisions
      hereof shall be construed in accordance with and governed by the laws of the
      State of New York. The parties hereby agree that any dispute which may arise
      between them arising out of or in connection with this Subscription Agreement
      shall be adjudicated before a court located in New York City and they hereby
      submit to the exclusive jurisdiction of the courts of the State of New York
      located in New York, New York and of the federal courts in the Southern District
      of New York with respect to any action or legal proceeding commenced by any
      party, and irrevocably waive any objection they now or hereafter may have
      respecting the venue of any such action or proceeding brought in such a court
      or
      respecting the fact that such court is an inconvenient forum, relating to or
      arising out of this Subscription Agreement or any acts or omissions relating
      to
      the sale of the securities hereunder, and consent to the service of process
      in
      any such action or legal proceeding by means of registered or certified mail,
      return receipt requested, in care of the address set forth below or such other
      address as the undersigned shall furnish in writing to the other.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    4.5 This
      Subscription Agreement may be executed in counterparts. Upon the execution
      and
      delivery of this Subscription Agreement by each Subscriber, this Subscription
      Agreement shall become a binding obligation of each Subscriber with respect
      to
      the purchase of the Shares as herein provided; subject, however, to the right
      hereby reserved to the Company to enter into the same agreements with other
      subscribers and to add and/or to delete other persons as
      subscribers.

     

    4.6 The
      holding of any provision of this Subscription Agreement to be invalid or
      unenforceable by a court of competent jurisdiction shall not affect any other
      provision of this Subscription Agreement, which shall remain in full force
      and
      effect.

     

    4.7 The
      parties agree to execute and deliver all such further documents, agreements
      and
      instruments and take such other and further action as may be necessary or
      appropriate to carry out the purposes and intent of this Subscription
      Agreement.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Subscription Agreement as of
      the
      day and year first written above.

     

    
      	 	 	 
	
              Signature
                of Subscriber

            	 	
              Signature
                of Co-Subscriber

            
	 	 	 
	 	 	 
	
              Name
                of Subscriber

            	 	
              Name
                of Co-Subscriber

            
	
              [please
                print]

            	 	
              [please
                print]

            
	 	 	 
	 	 	 
	
              Address
                of Subscriber

            	 	
              Address
                of Co-Subscriber

            
	 	 	 
	 	 	 
	
              Social
                Security or Taxpayer

            	 	
              Social
                Security or Taxpayer Identification 

            
	
              Identification
                Number of Subscriber

            	 	
              Number
                of Co-Subscriber

            
	 	 	 
	 	 	 
	
              Purchase
                Price of Shares Subscribed For

            	 	 
	 	 	 
	
              *If
                Subscriber is a Registered Representative

            	 	 
	
              with
                an NASD member firm, have the following

            	 	 
	
              acknowledgment
                signed by the appropriate party:

            	 	 
	 	 	 
	
              The
                undersigned NASD member firm

            	 	 
	
              acknowledges
                receipt of the notice

            	 	 
	
              required
                by Rule 3050 of the NASD

            	 	
              Subscription
                Accepted:

            
	
              Conduct
                Rules.

            	 	 
	 	 	
              GVI
                SECURITY SOLUTIONS, INC. 

            
	 	 	 

    

    
      	
              Name
                of NASD Member Firm

            	 	
              By:
                

            	 

	 	 	
                                  
                Name: Steven Walin

            
	 	 	
                  
                              
                Title: Chief Executive Officer

            

    

    
      	
              By
                

            	 
	 	 
	
                        
                          Authorized
                Officer

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