Document:

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED
OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED  UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO  THE  ISSUER  THAT  REGISTRATION  OF  SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

                          SERIES B WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                               DOLCE VENTURES INC.

                           Expires September __, 2011

No.: W-B-06- __                                    Number of Shares: ___________
Date of Issuance: September __, 2006

      FOR VALUE RECEIVED,  subject to the provisions  hereinafter set forth, the
undersigned,  Dolce  Ventures  Inc.,  a  Utah  corporation  (together  with  its
successors    and   assigns,    the    "Issuer"),    hereby    certifies    that
_______________________________  or its  registered  assigns  (the  "Holder") is
entitled  to  subscribe  for and  purchase,  during  the  Term  (as  hereinafter
defined),  up  to  ____________________________________  (_____________)  shares
(subject to adjustment as hereinafter provided) of the duly authorized,  validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise
price  per  share  equal to the  Warrant  Price  then in effect on the terms and
conditions  hereinafter set forth. The number of shares of Common Stock issuable
upon  exercise of this Warrant  reflects the number of shares of Common Stock to
which the Holder is entitled following the 1-for-304.4444 reverse stock split to
be effected by the Issuer  following the Original Issue Date (the "Reverse Stock
Split"). Capitalized terms used in this Warrant and not otherwise defined herein
shall have the respective meanings specified in Section 8 hereof.

      1. Term. The term of this Warrant shall commence on September __, 2006 and
shall expire at 6:00 p.m.,  eastern  time,  on  September  __, 2011 (such period
being the "Term").

      2. Method of  Exercise;  Payment;  Issuance of New  Warrant;  Transfer and
Exchange.

      (a) Time of Exercise.  The purchase rights represented by this Warrant may
be exercised in whole or in part during the Term.

                                      -1-
<PAGE>

      (b) Method of Exercise.  The Holder hereof may exercise  this Warrant,  in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached  hereto as  Exhibit A duly  executed)  at the  principal  office of the
Issuer, and by the payment to the Issuer of an amount of consideration  therefor
equal to the Warrant Price in effect on the date of such exercise  multiplied by
the number of shares of Warrant Stock with respect to which this Warrant is then
being exercised,  payable at such Holder's election (i) by certified or official
bank check or by wire transfer to an account  designated by the Issuer,  (ii) by
"cashless  exercise" in accordance with the provisions of subsection (c) of this
Section  2, but only when a  registration  statement  under the  Securities  Act
providing for the resale of the Warrant Stock is not then in effect, or (iii) by
a combination of the foregoing methods of payment selected by the Holder of this
Warrant.

      (c)  Cashless  Exercise.  Notwithstanding  any  provisions  herein  to the
contrary and  commencing  one (1) year following the Original Issue Date, if (i)
the Per Share  Market  Value of one share of Common  Stock is  greater  than the
Warrant  Price  (at the  date of  calculation  as set  forth  below)  and (ii) a
registration  statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect by the date such  registration  statement is
required to be  effective  pursuant to the  Registration  Rights  Agreement  (as
defined in the  Purchase  Agreement)  or not  effective  at any time  during the
Effectiveness  Period  (as  defined in the  Registration  Rights  Agreement)  in
accordance  with the  terms of the  Registration  Rights  Agreement,  in lieu of
exercising this Warrant by payment of cash, the Holder may exercise this Warrant
by a cashless  exercise  and shall  receive the number of shares of Common Stock
equal to an amount (as  determined  below) by  surrender  of this Warrant at the
principal  office of the Issuer  together with the properly  endorsed  Notice of
Exercise in which event the Issuer  shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

                  X = Y - (A)(Y)
                          ------
                             B

Where             X =      the number of shares of Common Stock to be issued to
                           the Holder.

                  Y =      the number of shares of Common Stock purchasable upon
                           exercise of all of the Warrant or, if only a portion
                           of the Warrant is being exercised, the portion of the
                           Warrant being exercised.

                  A =      the Warrant Price.

                  B =      the Per Share Market Value of one share of Common
                           Stock.

      (d)  Issuance of Stock  Certificates.  In the event of any exercise of the
rights  represented by this Warrant in accordance  with and subject to the terms
and conditions hereof, certificates for the shares of Warrant Stock so purchased
shall be dated the date of such  exercise  and  delivered  to the Holder  hereof
within a  reasonable  time,  not  exceeding  three (3)  Trading  Days after such
exercise (the "Delivery Date") or, at the request of the Holder (provided that a
registration  statement under the Securities Act providing for the resale of the
Warrant Stock is then in effect),  issued and delivered to the Depository  Trust
Company ("DTC") account on the Holder's behalf via the Deposit  Withdrawal Agent
Commission  System  ("DWAC")  within a reasonable  time, not exceeding three (3)
Trading Days after such exercise,  and the Holder hereof shall be deemed for all
purposes to be the holder of the shares of Warrant  Stock so purchased as of the
date of such  exercise.  The Holder shall deliver this original  Warrant,  or an
indemnification  undertaking  with  respect  to such  Warrant in the case of its
loss,  theft or destruction,  at such time that this Warrant is fully exercised.
With respect to partial exercises of this Warrant, the Issuer shall keep written
records for the Holder of the number of shares of Warrant Stock  exercised as of
each date of exercise.

                                      -2-
<PAGE>

      (e) Compensation for Buy-In on Failure to Timely Deliver Certificates Upon
Exercise. In addition to any other rights available to the Holder, if the Issuer
fails to cause its  transfer  agent to transmit to the Holder a  certificate  or
certificates representing the Warrant Stock pursuant to an exercise on or before
the Delivery  Date,  and if after such date the Holder is required by its broker
to purchase (in an open market  transaction or otherwise) shares of Common Stock
to deliver in  satisfaction  of a sale by the Holder of the Warrant  Stock which
the Holder  anticipated  receiving  upon such  exercise (a  "Buy-In"),  then the
Issuer  shall (1) pay in cash to the Holder the amount by which (x) the Holder's
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of shares of Warrant Stock that the Issuer was required to deliver to the
Holder in connection with the exercise at issue times (B) the price at which the
sell order giving rise to such purchase obligation was executed,  and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of shares of Warrant  Stock for which such  exercise  was not  honored or
deliver to the Holder the number of shares of Common  Stock that would have been
issued had the Issuer timely complied with its exercise and delivery obligations
hereunder.  For  example,  if the Holder  purchases  Common Stock having a total
purchase  price of  $11,000  to  cover a Buy-In  with  respect  to an  attempted
exercise of shares of Common Stock with an  aggregate  sale price giving rise to
such  purchase  obligation  of  $10,000,  under  clause  (1) of the  immediately
preceding  sentence the Issuer shall be required to pay the Holder  $1,000.  The
Holder shall provide the Issuer written notice indicating the amounts payable to
the Holder in respect of the Buy-In, together with applicable  confirmations and
other evidence reasonably requested by the Issuer.  Nothing herein shall limit a
Holder's right to pursue any other remedies available to it hereunder, at law or
in equity including, without limitation, a decree of specific performance and/or
injunctive  relief  with  respect  to the  Issuer's  failure  to timely  deliver
certificates  representing  shares of Common Stock upon exercise of this Warrant
as required pursuant to the terms hereof.

      (f)  Transferability  of Warrant.  Subject to Section  2(h)  hereof,  this
Warrant,  and the rights evidenced  hereby,  may be transferred by a Holder,  in
whole or in part, without the consent of the Issuer. If transferred  pursuant to
this  paragraph,  this Warrant may be  transferred on the books of the Issuer by
the Holder hereof in person or by duly  authorized  attorney,  upon surrender of
this Warrant at the principal  office of the Issuer,  properly  endorsed (by the
Holder  executing an assignment in the form attached hereto) and upon payment of
any  necessary  transfer  tax or other  governmental  charge  imposed  upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants to purchase the same aggregate number of shares of Warrant Stock,  each
new Warrant to represent  the right to purchase such number of shares of Warrant
Stock as the Holder  hereof shall  designate at the time of such  exchange.  All
Warrants issued on transfers or exchanges shall be dated the Original Issue Date
and shall be identical  with this  Warrant  except as to the number of shares of
Warrant Stock issuable pursuant thereto.

                                      -3-
<PAGE>

      (g) Continuing Rights of Holder. The Issuer will, at the time of or at any
time after each exercise of this Warrant, upon the request of the Holder hereof,
acknowledge  in writing the  extent,  if any, of its  continuing  obligation  to
afford to such  Holder all  rights to which such  Holder  shall  continue  to be
entitled  after such  exercise  in  accordance  with the terms of this  Warrant,
provided  that if any such  Holder  shall  fail to make any  such  request,  the
failure shall not affect the continuing  obligation of the Issuer to afford such
rights to such Holder.

      (h) Compliance with Securities Laws.

            (i) The Holder of this Warrant,  by acceptance hereof,  acknowledges
      that this  Warrant  and the  shares  of  Warrant  Stock to be issued  upon
      exercise hereof are being acquired solely for the Holder's own account and
      not as a nominee for any other  party,  and for  investment,  and that the
      Holder will not offer,  sell or  otherwise  dispose of this Warrant or any
      shares of Warrant Stock to be issued upon exercise  hereof except pursuant
      to an effective registration statement, or an exemption from registration,
      under the Securities Act and any applicable state securities laws.

            (ii) Except as provided in paragraph  (iii) below,  this Warrant and
      all certificates representing shares of Warrant Stock issued upon exercise
      hereof shall be stamped or imprinted  with a legend in  substantially  the
      following form:

         THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE  UPON
         EXERCISE HEREOF HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES
         ACT OF 1933,  AS AMENDED (THE  "SECURITIES  ACT") OR ANY STATE
         SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE
         DISPOSED OF UNLESS  REGISTERED  UNDER THE  SECURITIES  ACT AND
         UNDER  APPLICABLE  STATE  SECURITIES  LAWS OR THE ISSUER SHALL
         HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
         THE ISSUER  THAT  REGISTRATION  OF SUCH  SECURITIES  UNDER THE
         SECURITIES  ACT AND UNDER THE  PROVISIONS OF APPLICABLE  STATE
         SECURITIES LAWS IS NOT REQUIRED.

            (iii) The Issuer  agrees to  reissue  this  Warrant or  certificates
      representing any of the Warrant Stock,  without the legend set forth above
      if at such time, prior to making any transfer of any such securities,  the
      Holder shall give written  notice to the Issuer  describing the manner and
      terms of such transfer and removal as the Issuer may  reasonably  request.
      Such proposed  transfer and removal will not be effected until: (a) either
      (i) the Issuer has received an opinion of counsel reasonably  satisfactory
      to the Issuer,  to the effect  that the  registration  of such  securities
      under the Securities Act is not required in connection  with such proposed
      transfer,  (ii) a registration statement under the Securities Act covering
      such proposed disposition has been filed by the Issuer with the Securities
      and Exchange Commission and has become effective under the Securities Act,
      (iii) the Issuer has received other evidence  reasonably  satisfactory  to
      the Issuer that such registration and  qualification  under the Securities
      Act and  state  securities  laws  are not  required,  or (iv)  the  Holder
      provides the Issuer with  reasonable  assurances that such security can be
      sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the
      Issuer has received an opinion of counsel  reasonably  satisfactory to the
      Issuer,  to the  effect  that  registration  or  qualification  under  the
      securities  or "blue sky" laws of any state is not required in  connection
      with such proposed  disposition,  or (ii) compliance with applicable state
      securities  or "blue  sky"  laws has been  effected  or a valid  exemption
      exists with  respect  thereto.  The Issuer will respond to any such notice
      from a holder  within three (3) Trading  Days. In the case of any proposed
      transfer under this Section 2(h),  the Issuer will use reasonable  efforts
      to comply with any such  applicable  state  securities or "blue sky" laws,
      but shall in no event be  required,  (x) to qualify to do  business in any
      state where it is not then qualified, or (y) to take any action that would
      subject it to tax or to the general  service of process in any state where
      it is not then subject.  The  restrictions  on transfer  contained in this
      Section 2(h) shall be in addition to, and not by way of limitation of, any
      other  restrictions  on transfer  contained  in any other  section of this
      Warrant. Whenever a certificate representing the Warrant Stock is required
      to be issued to a the  Holder  without  a  legend,  in lieu of  delivering
      physical  certificates  representing  the Warrant Stock  (provided  that a
      registration  statement  under the Securities Act providing for the resale
      of the  Warrant  Stock is then in  effect),  the  Issuer  shall  cause its
      transfer agent to electronically  transmit the Warrant Stock to the Holder
      by crediting the account of the Holder's Prime Broker with DTC through its
      DWAC system.

                                      -4-
<PAGE>

      (i) Accredited Investor.  In no event may the Holder exercise this Warrant
in whole or in part unless the Holder is an "accredited  investor" as defined in
Regulation D under the Securities Act.

      3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

      (a) Stock Fully  Paid.  The Issuer  represents,  warrants,  covenants  and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will,  when issued in accordance  with the
terms of this  Warrant,  be duly  authorized,  validly  issued,  fully  paid and
non-assessable  and free from all taxes, liens and charges created by or through
the  Issuer.  The Issuer  further  covenants  and agrees  that during the period
within  which this Warrant may be  exercised,  the Issuer will at all times have
authorized  and reserved for the purpose of the issuance  upon  exercise of this
Warrant a number of authorized  but unissued  shares of Common Stock equal to at
least  one  hundred  percent  (100%) of the  number  of  shares of Common  Stock
issuable  upon exercise of this Warrant  without  regard to any  limitations  on
exercise.

      (b) Reservation. If any shares of Common Stock required to be reserved for
issuance  upon  exercise  of this  Warrant or as  otherwise  provided  hereunder
require registration or qualification with any Governmental  Authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly  registered or qualified.  If the Issuer shall list
any shares of Common Stock on any securities  exchange or market it will, at its
expense,  list thereon,  and maintain and increase when  necessary such listing,
of, all shares of Warrant  Stock from time to time issued upon  exercise of this
Warrant or as otherwise provided hereunder (provided that such Warrant Stock has
been  registered  pursuant to a registration  statement under the Securities Act
then in effect),  and, to the extent permissible under the applicable securities
exchange  rules,  all  unissued  shares of Warrant  Stock  which are at any time
issuable  hereunder,  so long as any shares of Common  Stock shall be so listed.
The Issuer will also so list on each  securities  exchange  or market,  and will
maintain such listing of, any other  securities which the Holder of this Warrant
shall be entitled to receive  upon the  exercise of this  Warrant if at the time
any securities of the same class shall be listed on such securities  exchange or
market by the Issuer.

                                      -5-
<PAGE>

      (c)  Covenants.  The  Issuer  shall not by any action  including,  without
limitation, amending the Articles of Incorporation or the by-laws of the Issuer,
or  through  any  reorganization,  transfer  of assets,  consolidation,  merger,
dissolution,  issue or sale of securities or any other action,  avoid or seek to
avoid the  observance or  performance  of any of the terms of this Warrant,  but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or  appropriate to protect
the rights of the Holder  hereof  against  dilution (to the extent  specifically
provided  herein)  or  impairment.   Without  limiting  the  generality  of  the
foregoing,  the Issuer will (i) not permit the par value,  if any, of its Common
Stock to exceed the then effective  Warrant Price,  (ii) not amend or modify any
provision  of the  Articles  of  Incorporation  or  by-laws of the Issuer in any
manner that would  adversely  affect the rights of the Holders of the  Warrants,
(iii)  take all such  action as may be  reasonably  necessary  in order that the
Issuer may  validly and legally  issue  fully paid and  nonassessable  shares of
Common Stock, free and clear of any liens, claims, encumbrances and restrictions
(other than as provided herein) upon the exercise of this Warrant,  and (iv) use
its best efforts to obtain all such authorizations,  exemptions or consents from
any public  regulatory  body having  jurisdiction  thereof as may be  reasonably
necessary to enable the Issuer to perform its obligations under this Warrant.

      (d) Loss,  Theft,  Destruction  of  Warrants.  Upon  receipt  of  evidence
satisfactory to the Issuer of the ownership of and the loss, theft,  destruction
or  mutilation  of any  Warrant  and,  in the  case of any such  loss,  theft or
destruction,  upon receipt of indemnity or security  satisfactory  to the Issuer
or, in the case of any such mutilation,  upon surrender and cancellation of such
Warrant,  the  Issuer  will  make and  deliver,  in lieu of such  lost,  stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

      (e)  Payment of Taxes.  The Issuer  will pay any  documentary  stamp taxes
attributable to the initial issuance of the Warrant Stock issuable upon exercise
of this Warrant; provided, however, that the Issuer shall not be required to pay
any tax or taxes which may be payable in respect of any transfer involved in the
issuance or delivery of any  certificates  representing  Warrant Stock in a name
other than that of the Holder in respect to which such shares are issued.

      4. Adjustment of Warrant Price.  The price at which such shares of Warrant
Stock may be  purchased  upon  exercise  of this  Warrant  shall be  subject  to
adjustment  from time to time as set forth in this  Section 4. The Issuer  shall
give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with the notice provisions set forth in
Section 5.

                                      -6-
<PAGE>

      (a)  Recapitalization,  Reorganization,  Reclassification,  Consolidation,
Merger or Sale.

            (i) In case the Issuer after the Original Issue Date shall do any of
      the following (each, a "Triggering  Event"): (a) consolidate or merge with
      or into any other  Person and the Issuer  shall not be the  continuing  or
      surviving  corporation of such  consolidation or merger, or (b) permit any
      other Person to  consolidate  with or merge into the Issuer and the Issuer
      shall be the continuing or surviving  Person but, in connection  with such
      consolidation or merger,  any Capital Stock of the Issuer shall be changed
      into or exchanged for  Securities of any other Person or cash or any other
      property,  or (c) transfer all or  substantially  all of its properties or
      assets to any other  Person,  or (d)  effect a capital  reorganization  or
      reclassification  of its Capital Stock,  other than any event set forth in
      Section 4(b) below,  then, and in the case of each such Triggering  Event,
      proper  provision  shall be made so that, upon the basis and the terms and
      in the manner  provided in this Warrant,  the Holder of this Warrant shall
      be entitled upon the exercise hereof at any time after the consummation of
      such  Triggering  Event, to the extent this Warrant is not exercised prior
      to such Triggering Event, to receive at the Warrant Price in effect at the
      time  immediately  prior to the  consummation of such Triggering  Event in
      lieu of the Common Stock issuable upon such exercise of this Warrant prior
      to such Triggering Event, the Securities,  cash and property to which such
      Holder would have been entitled upon the  consummation  of such Triggering
      Event if such Holder had exercised the rights  represented by this Warrant
      immediately  prior thereto  (including the right of a shareholder to elect
      the  type of  consideration  it will  receive  upon a  Triggering  Event),
      subject to adjustments  (subsequent  to such  corporate  action) as nearly
      equivalent as possible to the  adjustments  provided for elsewhere in this
      Section 4; provided, however, in the event that the Per Share Market Value
      is less than the Warrant Price at the time of such Triggering  Event,  the
      Holder shall  receive an amount in cash equal to the value of this Warrant
      calculated in accordance with the Black-Scholes  formula.  Notwithstanding
      the  foregoing to the contrary,  this Section  4(a)(i) shall only apply if
      the surviving  entity pursuant to any such  Triggering  Event is a company
      that  has  a  class  of  equity  securities  registered  pursuant  to  the
      Securities  Exchange  Act of 1934,  as  amended,  and its common  stock is
      listed or quoted on a national  securities  exchange,  national  automated
      quotation  system  or the  OTC  Bulletin  Board.  In the  event  that  the
      surviving  entity  pursuant to any such  Triggering  Event is not a public
      company  that is  registered  pursuant to the  Securities  Exchange Act of
      1934,  as  amended,  or its  common  stock is not  listed  or  quoted on a
      national securities  exchange,  national automated quotation system or the
      OTC  Bulletin  Board,  then the Holder shall have the right to demand that
      the  Issuer pay to the Holder an amount in cash equal to the value of this
      Warrant calculated in accordance with the Black-Scholes formula.

                                      -7-
<PAGE>

            (ii)  Notwithstanding  anything  contained  in this  Warrant  to the
      contrary and so long as the surviving  entity  pursuant to any  Triggering
      Event  is a  company  that  has a class of  equity  securities  registered
      pursuant to the  Securities  Exchange  Act of 1934,  as  amended,  and its
      common  stock is  listed  or quoted  on a  national  securities  exchange,
      national  automated   quotation  system  or  the  OTC  Bulletin  Board,  a
      Triggering  Event shall not be deemed to have  occurred  if,  prior to the
      consummation  thereof,  each Person  (other than the Issuer)  which may be
      required to deliver any Securities,  cash or property upon the exercise of
      this  Warrant as  provided  herein  shall  assume,  by written  instrument
      delivered to, and reasonably  satisfactory to, the Holder of this Warrant,
      (A) the  obligations  of the Issuer  under this Warrant (and if the Issuer
      shall survive the consummation of such Triggering  Event,  such assumption
      shall be in  addition  to,  and shall not  release  the Issuer  from,  any
      continuing  obligations  of the  Issuer  under this  Warrant)  and (B) the
      obligation to deliver to such Holder such Securities, cash or property as,
      in accordance  with the foregoing  provisions of this subsection (a), such
      Holder shall be entitled to receive,  and such Person shall have similarly
      delivered  to such  Holder an opinion of counsel  for such  Person,  which
      counsel  shall  be  reasonably  satisfactory  to  such  Holder,  or in the
      alternative,  a written acknowledgement executed by the President or Chief
      Financial  Officer  of  the  Issuer,   stating  that  this  Warrant  shall
      thereafter  continue  in  full  force  and  effect  and the  terms  hereof
      (including,  without limitation,  all of the provisions of this subsection
      (a)) shall be applicable to the  Securities,  cash or property  which such
      Person may be required to deliver upon any exercise of this Warrant or the
      exercise of any rights pursuant hereto.

      (b) Stock  Dividends,  Subdivisions and  Combinations.  If at any time the
Issuer shall:

            (i) make or issue or set a record date for the holders of the Common
      Stock for the purpose of entitling them to receive a dividend  payable in,
      or other distribution of, shares of Common Stock (other than in connection
      with the  dividend  payable in shares of Common  Stock to be issued by the
      Issuer to the Issuer's stockholders in connection with the spin-off of the
      Issuer's wholly-owned subsidiary, Pegasus Tel, Inc.),

            (ii) subdivide its outstanding  shares of Common Stock into a larger
      number of shares of Common Stock, or

            (iii) combine its outstanding  shares of Common Stock into a smaller
      number of  shares  of Common  Stock(other  than  pursuant  to the  Reverse
      Split),

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record  holder of the same
number of  shares  of  Common  Stock  for  which  this  Warrant  is  exercisable
immediately  prior to the  occurrence  of such event would own or be entitled to
receive  after the  happening of such event,  and (2) the Warrant  Price then in
effect  shall  be  adjusted  to  equal  (A) the  Warrant  Price  then in  effect
multiplied  by the number of shares of Common  Stock for which  this  Warrant is
exercisable  immediately  prior to the  adjustment  divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable  immediately  after
such adjustment.

                                      -8-
<PAGE>

      (c) Certain Other  Distributions.  If at any time the Issuer shall make or
issue or set a record  date for the  determination  of the holders of the Common
Stock for the  purpose  of  entitling  them to  receive  any  dividend  or other
distribution of:

            (i) cash  (other  than a cash  dividend  payable  out of earnings or
      earned surplus  legally  available for the payment of dividends  under the
      laws of the jurisdiction of incorporation of the Issuer),

            (ii) any evidences of its  indebtedness,  any shares of stock of any
      class or any other securities or property of any nature  whatsoever (other
      than cash, Common Stock Equivalents or Additional Shares of Common Stock),
      or

            (iii) any warrants or other rights to subscribe  for or purchase any
      evidences  of its  indebtedness,  any  shares of stock of any class or any
      other  securities or property of any nature  whatsoever  (other than cash,
      Common Stock Equivalents or Additional Shares of Common Stock),

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable  shall be  adjusted  to equal the product of the number of shares of
Common Stock for which this  Warrant is  exercisable  immediately  prior to such
adjustment  multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator  of which  shall be such Per Share  Market  Value  minus the  amount
allocable to one share of Common Stock of any such cash so distributable  and of
the fair value (as  determined  in good faith by the Board of  Directors  of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to (but not affiliated with) the Holder) of any and
all such  evidences  of  indebtedness,  shares of  stock,  other  securities  or
property or warrants or other  subscription or purchase rights so distributable,
and (2) the  Warrant  Price then in effect  shall be  adjusted  to equal (A) the
Warrant Price then in effect  multiplied by the number of shares of Common Stock
for which  this  Warrant  is  exercisable  immediately  prior to the  adjustment
divided  by (B) the number of shares of Common  Stock for which this  Warrant is
exercisable immediately after such adjustment.  A reclassification of the Common
Stock  (other  than a change in par value,  or from par value to no par value or
from no par value to par value)  into  shares of Common  Stock and shares of any
other class of stock shall be deemed a distribution by the Issuer to the holders
of its  Common  Stock of such  shares of such  other  class of stock  within the
meaning of this  Section  4(c) and, if the  outstanding  shares of Common  Stock
shall be changed into a larger or smaller  number of shares of Common Stock as a
part of such  reclassification,  such change  shall be deemed a  subdivision  or
combination,  as the case may be, of the  outstanding  shares  of  Common  Stock
within the meaning of Section 4(b).

      (d) Issuance of Additional Shares of Common Stock. In the event the Issuer
shall at any time within the two (2) year period following the Original Issuance
Date issue any Additional  Shares of Common Stock (otherwise than as provided in
the  foregoing  subsections  (b) through (c) of this  Section 4), at a price per
share less than $2.74 or without consideration, then the Warrant Price upon each
such  issuance  shall be adjusted to the price  equal to the  consideration  per
share paid for such Additional Shares of Common Stock.

                                      -9-
<PAGE>

      (e) Issuance of Common Stock Equivalents. In the event the Issuer shall at
any time within the two (2) year period  following  the Original  Issuance  Date
take a record of the holders of its Common  Stock for the  purpose of  entitling
them to receive a distribution  of, or shall in any manner (whether  directly or
by  assumption  in a merger in which the  Issuer is the  surviving  corporation)
issue or sell,  any  Common  Stock  Equivalents,  whether  or not the  rights to
exchange or convert  thereunder are immediately  exercisable,  and the price per
share for which Common Stock is issuable upon such  conversion or exchange shall
be less than $2.74  immediately  prior to the time of such issue or sale, or if,
after any such  issuance of Common  Stock  Equivalents,  the price per share for
which Additional Shares of Common Stock may be issuable thereafter is amended or
adjusted,  and such price as so amended  shall be less than $2.74 at the time of
such  amendment or  adjustment,  then the Warrant  Price then in effect shall be
adjusted as provided in Section  4(d). No further  adjustments  of the number of
shares of Common  Stock for which this  Warrant is  exercisable  and the Warrant
Price then in effect  shall be made upon the actual  issue of such Common  Stock
upon conversion or exchange of such Common Stock Equivalents.

      (f) Other  Provisions  Applicable to Adjustments  under this Section.  The
following  provisions  shall be applicable to the making of  adjustments  of the
number of shares of Common Stock for which this Warrant is  exercisable  and the
Warrant Price then in effect provided for in this Section 4:

      (i) Computation of Consideration. To the extent that any Additional Shares
of Common Stock or any Common Stock Equivalents (or any warrants or other rights
therefor) shall be issued for cash consideration,  the consideration received by
the  Issuer  therefor  shall be the  amount of the cash  received  by the Issuer
therefor,  or,  if such  Additional  Shares  of  Common  Stock or  Common  Stock
Equivalents are offered by the Issuer for subscription,  the subscription price,
or, if such  Additional  Shares of Common Stock or Common Stock  Equivalents are
sold to  underwriters  or dealers  for public  offering  without a  subscription
offering,  the initial public  offering price (in any such case  subtracting any
amounts paid or receivable for accrued interest or accrued dividends and without
taking into account any compensation,  discounts or expenses paid or incurred by
the Issuer for and in the  underwriting of, or otherwise in connection with, the
issuance  thereof).  In connection with any merger or consolidation in which the
Issuer is the surviving  corporation  (other than any consolidation or merger in
which the previously  outstanding  shares of Common Stock of the Issuer shall be
changed  to  or  exchanged  for  the  stock  or  other   securities  of  another
corporation),  the amount of consideration  therefore shall be, deemed to be the
fair  value,  as  determined  reasonably  and in good  faith  by the  Board  and
acceptable  to the  Holder,  of such  portion of the assets and  business of the
nonsurviving  corporation as the Board may determine to be  attributable to such
shares of Common  Stock or Common  Stock  Equivalents,  as the case may be.  The
consideration for any Additional Shares of Common Stock issuable pursuant to any
warrants or other  rights to  subscribe  for or  purchase  the same shall be the
consideration  received by the Issuer for issuing such  warrants or other rights
plus the  additional  consideration  payable to the Issuer upon exercise of such
warrants or other rights.  The consideration for any Additional Shares of Common
Stock issuable  pursuant to the terms of any Common Stock  Equivalents  shall be
the consideration received by the Issuer for issuing warrants or other rights to
subscribe for or purchase such Common Stock Equivalents,  plus the consideration
paid or payable to the Issuer in respect of the  subscription for or purchase of
such  Common  Stock  Equivalents,  plus the  additional  consideration,  if any,
payable to the Issuer upon the exercise of the right of  conversion  or exchange
in such Common Stock Equivalents. In the event of any consolidation or merger of
the Issuer in which the Issuer is not the surviving  corporation or in which the
previously  outstanding  shares of Common  Stock of the Issuer  shall be changed
into or exchanged for the stock or other securities of another  corporation,  or
in the event of any sale of all or substantially all of the assets of the Issuer
for stock or other securities of any corporation,  the Issuer shall be deemed to
have issued a number of shares of its Common  Stock for stock or  securities  or
other  property  of the other  corporation  computed  on the basis of the actual
exchange ratio on which the transaction was predicated,  and for a consideration
equal to the fair market value on the date of such transaction of all such stock
or  securities  or other  property  of the other  corporation.  In the event any
consideration  received  by the Issuer for any  securities  consists of property
other than cash,  the fair  market  value  thereof at the time of issuance or as
otherwise  applicable  shall be as determined in good faith by the Board. In the
event Common Stock is issued with other shares or  securities or other assets of
the Issuer for consideration  which covers both, the  consideration  computed as
provided in this Section  4(f)(i) shall be allocated  among such  securities and
assets as determined in good faith by the Board.

                                      -10-
<PAGE>

      (ii) When Adjustments to Be Made. The adjustments required by this Section
4 shall be made  whenever  and as  often as any  specified  event  requiring  an
adjustment  shall occur,  except that any  adjustment of the number of shares of
Common  Stock for which this  Warrant is  exercisable  that would  otherwise  be
required may be postponed (except in the case of a subdivision or combination of
shares of the Common  Stock,  as  provided  for in Section  4(b)) up to, but not
beyond the date of  exercise if such  adjustment  either by itself or with other
adjustments  not previously made adds or subtracts less than one percent (1%) of
the shares of Common  Stock for which this  Warrant is  exercisable  immediately
prior to the making of such adjustment.  Any adjustment representing a change of
less than such minimum amount (except as aforesaid)  which is postponed shall be
carried  forward  and  made  as soon as such  adjustment,  together  with  other
adjustments  required by this Section 4 and not previously made, would result in
a  minimum  adjustment  or on the  date  of  exercise.  For the  purpose  of any
adjustment, any specified event shall be deemed to have occurred at the close of
business on the date of its occurrence.

      (iii) Fractional Interests. In computing adjustments under this Section 4,
fractional  interests in Common Stock shall be taken into account to the nearest
one one-hundredth (1/100th) of a share.

      (iv) When  Adjustment  Not Required.  If the Issuer shall take a record of
the holders of its Common Stock for the purpose of  entitling  them to receive a
dividend  or   distribution  or  subscription  or  purchase  rights  and  shall,
thereafter and before the distribution to stockholders thereof,  legally abandon
its plan to pay or deliver such dividend, distribution, subscription or purchase
rights,  then thereafter no adjustment shall be required by reason of the taking
of such record and any such adjustment  previously made in respect thereof shall
be rescinded and annulled.

      (g) Form of Warrant after  Adjustments.  The form of this Warrant need not
be changed  because of any  adjustments  in the Warrant  Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

                                      -11-
<PAGE>

      (h) Escrow of Warrant Stock. If after any property  becomes  distributable
pursuant to this  Section 4 by reason of the taking of any record of the holders
of Common Stock,  but prior to the occurrence of the event for which such record
is taken,  and the Holder  exercises  this  Warrant,  any shares of Common Stock
issuable  upon  exercise by reason of such  adjustment  shall be deemed the last
shares of Common Stock for which this Warrant is exercised  (notwithstanding any
other provision to the contrary  herein) and such shares or other property shall
be held in escrow for the  Holder by the Issuer to be issued to the Holder  upon
and to the extent  that the event  actually  takes  place,  upon  payment of the
current  Warrant  Price.  Notwithstanding  any other  provision  to the contrary
herein,  if the event  for  which  such  record  was taken  fails to occur or is
rescinded,  then such  escrowed  shares  shall be  cancelled  by the  Issuer and
escrowed property returned.

      5. Notice of  Adjustments.  Whenever  the Warrant  Price or Warrant  Share
Number  shall be adjusted  pursuant  to Section 4 hereof  (for  purposes of this
Section 5, each an  "adjustment"),  the Issuer  shall cause its Chief  Financial
Officer to prepare  and  execute a  certificate  setting  forth,  in  reasonable
detail,  the event requiring the adjustment,  the amount of the adjustment,  the
method by which such  adjustment was calculated  (including a description of the
basis on which the Board  made any  determination  hereunder),  and the  Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such  certificate  to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with  respect to the matters set forth in such  certificate  may at
the  option  of the  Holder  of this  Warrant  be  submitted  to an  Independent
Appraiser  reasonably  acceptable to the Issuer and the Holder. The Issuer shall
use its  best  efforts  to  cause  the  Independent  Appraiser  to  perform  the
calculations  and notify the Issuer and the Holder of the  results no later than
five (5) business days from the time it receives the disputed calculation.  Such
Independent  Appraiser's  calculation  shall be binding upon all parties  absent
manifest error. The reasonable  expenses of the Independent  Appraiser in making
such  determination  shall be paid by the  Issuer,  in the  event  the  Holder's
calculation was correct, or by the Holder, in the event the Issuer's calculation
was  correct,  or equally by the Issuer and the Holder in the event that neither
the Issuer's or the Holder's calculation was correct.

      6. Fractional Shares. No fractional shares of Warrant Stock will be issued
in connection with any exercise hereof,  but in lieu of such fractional  shares,
the Issuer shall round the number of shares to be issued upon exercise up to the
nearest whole number of shares.

      7. Ownership Cap and Exercise Restriction. Notwithstanding anything to the
contrary  set forth in this  Warrant,  at no time may a Holder  of this  Warrant
exercise  this  Warrant  if the  number of  shares of Common  Stock to be issued
pursuant to such exercise would exceed, when aggregated with all other shares of
Common  Stock owned by such Holder at such time,  the number of shares of Common
Stock which would result in such Holder  beneficially  owning (as  determined in
accordance  with Section 13(d) of the Exchange Act and the rules  thereunder) in
excess of 9.9% of the then  issued  and  outstanding  shares  of  Common  Stock;
provided,  however, that upon a holder of this Warrant providing the Issuer with
sixty-one (61) days notice (pursuant to Section 12 hereof) (the "Waiver Notice")
that such  Holder  would like to waive this  Section 7 with regard to any or all
shares of Common Stock  issuable upon  exercise of this Warrant,  this Section 7
will be of no force or effect  with  regard to all or a portion  of the  Warrant
referenced in the Waiver Notice; provided, further, that this provision shall be
of no  further  force or effect  during  the  sixty-one  (61)  days  immediately
preceding the expiration of the term of this Warrant.

                                      -12-
<PAGE>

      8. Definitions. For the purposes of this Warrant, the following terms have
the following meanings:

            "Additional Shares of Common Stock" means all shares of Common Stock
      issued by the Issuer  after the  Original  Issue  Date,  and all shares of
      Other Common,  if any, issued by the Issuer after the Original Issue Date,
      except:  (i) securities  issued pursuant to a bona fide firm  underwritten
      public  offering  of  the  Issuer's  securities,  (ii)  securities  issued
      pursuant  to the  conversion  or exercise of  convertible  or  exercisable
      securities issued or outstanding on or prior to the Original Issue Date or
      issued  pursuant to the Purchase  Agreement (so long as the  conversion or
      exercise  price in such  securities  are not  amended  to lower such price
      and/or  adversely  affect the  Holders),  (iii) the  Warrant  Stock,  (iv)
      securities  issued (other than for cash) in connection with an acquisition
      of the Issuer,  (v) any  warrants  issued to the  placement  agent for the
      transactions  contemplated  by the  Purchase  Agreement,  (vi)  securities
      issued  in  connection  with  strategic   license   agreements  and  other
      partnering  arrangements so long as such issuances are not for the purpose
      of raising  capital and the Issuer has received the prior written  consent
      of the Holder,  and (vii) the  issuance of Common Stock or the issuance or
      grants of options to purchase  Common Stock pursuant to the Issuer's stock
      option  plans and  employee  stock  purchase  plans  and  which  have been
      approved by the Issuer's  Board of Directors so long as such  issuances in
      the aggregate do not exceed ten percent  (10%) of the Issuer's  issued and
      outstanding Common Stock as of the Original Issue Date.

            "Articles of  Incorporation"  means the Articles of Incorporation of
      the Issuer as in effect on the Original  Issue Date, and as hereafter from
      time to time  amended,  modified,  supplemented  or restated in accordance
      with the terms hereof and thereof and pursuant to applicable law.

            "Board" shall mean the Board of Directors of the Issuer.

            "Capital   Stock"  means  and  includes  (i)  any  and  all  shares,
      interests, participations or other equivalents of or interests in (however
      designated)  corporate stock,  including,  without  limitation,  shares of
      preferred or preference  stock,  (ii) all partnership  interests  (whether
      general  or  limited)  in any  Person  which is a  partnership,  (iii) all
      membership interests or limited liability company interests in any limited
      liability  company,  and (iv) all  equity or  ownership  interests  in any
      Person of any other type.

            "Common Stock" means the Common Stock, par value $.001 per share, of
      the Issuer and any other Capital Stock into which such stock may hereafter
      be changed.

            "Common Stock Equivalent" means any Convertible Security or warrant,
      option or other right to subscribe for or purchase any  Additional  Shares
      of Common Stock or any Convertible Security.

                                      -13-
<PAGE>

            "Convertible Securities" means evidences of Indebtedness,  shares of
      Capital  Stock  or  other  Securities  which  are or  may  be at any  time
      convertible  into or exchangeable  for Additional  Shares of Common Stock.
      The term "Convertible Security" means one of the Convertible Securities.

            "Governmental  Authority"  means  any  governmental,  regulatory  or
      self-regulatory entity, department, body, official, authority, commission,
      board,  agency or  instrumentality,  whether federal,  state or local, and
      whether domestic or foreign.

            "Holders"  mean the  Persons  who  shall  from  time to time own any
      Warrant. The term "Holder" means one of the Holders.

            "Independent  Appraiser"  means a  nationally  recognized  or  major
      regional  investment banking firm or firm of independent  certified public
      accountants of recognized  standing  (which may be the firm that regularly
      examines the financial statements of the Issuer) that is regularly engaged
      in the business of appraising the Capital Stock or assets of  corporations
      or other  entities as going  concerns,  and which is not  affiliated  with
      either the Issuer or the Holder of any Warrant.

            "Issuer"  means Dolce  Ventures  Inc., a Utah  corporation,  and its
      successors.

            "Majority  Holders"  means  at any  time  the  Holders  of  Warrants
      exercisable  for a majority of the shares of Warrant Stock  issuable under
      the Warrants at the time outstanding.

            "Original Issue Date" means September __, 2006.

            "OTC Bulletin Board" means the over-the-counter  electronic bulletin
      board.

            "Other  Common"  means any other  Capital Stock of the Issuer of any
      class which shall be authorized at any time after the date of this Warrant
      (other than Common Stock) and which shall have the right to participate in
      the  distribution of earnings and assets of the Issuer without  limitation
      as to amount.

            "Outstanding  Common Stock" means,  at any given time, the aggregate
      amount of  outstanding  shares of Common Stock,  assuming  full  exercise,
      conversion or exchange (as applicable) of all options,  warrants and other
      Securities which are convertible into or exercisable or exchangeable  for,
      and  any  right  to  subscribe  for,  shares  of  Common  Stock  that  are
      outstanding at such time.

            "Person"  means  an  individual,   corporation,   limited  liability
      company,   partnership,   joint  stock  company,   trust,   unincorporated
      organization,  joint  venture,  Governmental  Authority or other entity of
      whatever nature.

                                      -14-
<PAGE>

            "Per Share Market Value" means on any  particular  date (a) the last
      closing  price  per  share of the  Common  Stock  on such  date on the OTC
      Bulletin Board or another registered  national stock exchange on which the
      Common Stock is then listed, or if there is no closing price on such date,
      then the  closing  bid price on such date,  or if there is no closing  bid
      price on such date,  then the closing  price on such exchange or quotation
      system on the date nearest preceding such date, or (b) if the Common Stock
      is not listed then on the OTC Bulletin  Board or any  registered  national
      stock exchange,  the last closing price for a share of Common Stock in the
      over-the-counter  market,  as reported by the OTC Bulletin Board or in the
      National Quotation Bureau  Incorporated or similar  organization or agency
      succeeding to its functions of reporting  prices, at the close of business
      on such  date,  or if there is no  closing  price on such  date,  then the
      closing  bid price on such date,  or (c) if the  Common  Stock is not then
      reported  by the OTC  Bulletin  Board  or the  National  Quotation  Bureau
      Incorporated  (or  similar   organization  or  agency  succeeding  to  its
      functions  of  reporting  prices),  then the  average of the "Pink  Sheet"
      quotes for the five (5) Trading Days preceding such date of determination,
      or (d) if the Common  Stock is not then  publicly  traded the fair  market
      value of a share of Common Stock as determined by an Independent Appraiser
      selected in good faith by the Majority Holders;  provided,  however,  that
      the  Issuer,  after  receipt  of the  determination  by  such  Independent
      Appraiser,  shall  have the  right to  select  an  additional  Independent
      Appraiser,  in which  case,  the fair  market  value shall be equal to the
      average of the  determinations  by each such  Independent  Appraiser;  and
      provided,  further that all  determinations  of the Per Share Market Value
      shall be appropriately  adjusted for any stock dividends,  stock splits or
      other similar  transactions  during such period. The determination of fair
      market  value by an  Independent  Appraiser  shall be based  upon the fair
      market value of the Issuer  determined on a going concern basis as between
      a willing buyer and a willing  seller and taking into account all relevant
      factors  determinative  of value,  and shall be final and  binding  on all
      parties.  In  determining  the fair  market  value of any shares of Common
      Stock, no consideration  shall be given to any restrictions on transfer of
      the Common Stock  imposed by  agreement or by federal or state  securities
      laws,  or to the  existence or absence of, or any  limitations  on, voting
      rights.

            "Purchase Agreement" means the Series B Convertible  Preferred Stock
      Purchase Agreement dated as of September 7, 2006, among the Issuer and the
      Purchasers.

            "Purchasers"  means  the  purchasers  of the  Series  B  Convertible
      Preferred Stock and Warrants issued by the Issuer pursuant to the Purchase
      Agreement.

            "Securities"  means any debt or  equity  securities  of the  Issuer,
      whether now or hereafter  authorized,  any instrument  convertible into or
      exchangeable  for  Securities  or a Security,  and any option,  warrant or
      other right to purchase or acquire any Security.  "Security"  means one of
      the Securities.

            "Securities  Act" means the Securities  Act of 1933, as amended,  or
      any similar federal statute then in effect.

            "Subsidiary" means any corporation at least 50% of whose outstanding
      Voting  Stock  shall at the time be owned  directly or  indirectly  by the
      Issuer or by one or more of its Subsidiaries,  or by the Issuer and one or
      more of its Subsidiaries.

            "Term" has the meaning specified in Section 1 hereof.

                                      -15-
<PAGE>

            "Trading Day" means (a) a day on which the Common Stock is traded on
      the OTC  Bulletin  Board,  or (b) if the Common Stock is not traded on the
      OTC  Bulletin  Board,  a day on which  the  Common  Stock is quoted in the
      over-the-counter  market as  reported  by the  National  Quotation  Bureau
      Incorporated  (or  any  similar  organization  or  agency  succeeding  its
      functions of reporting prices); provided,  however, that in the event that
      the  Common  Stock is not  listed  or  quoted  as set  forth in (a) or (b)
      hereof,  then Trading Day shall mean any day except  Saturday,  Sunday and
      any  day  which  shall  be a  legal  holiday  or a day  on  which  banking
      institutions in the State of New York are authorized or required by law or
      other government action to close.

            "Voting  Stock"  means,  as  applied  to the  Capital  Stock  of any
      corporation,  Capital Stock of any class or classes  (however  designated)
      having ordinary voting power for the election of a majority of the members
      of the Board of Directors (or other governing  body) of such  corporation,
      other than Capital Stock having such power only by reason of the happening
      of a contingency.

            "Warrants"  means  the  Warrants  issued  and sold  pursuant  to the
      Purchase Agreement,  including,  without limitation, this Warrant, and any
      other  warrants of like tenor issued in  substitution  or exchange for any
      thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or
      of any of such other Warrants.

            "Warrant  Price"  initially  means U.S.  $5.48, as such price may be
      adjusted from time to time as shall result from the adjustments  specified
      in this Warrant, including Section 4 hereto.

            "Warrant  Share Number"  means at any time the  aggregate  number of
      shares of Warrant Stock which may at such time be purchased  upon exercise
      of  this  Warrant,  after  giving  effect  to all  prior  adjustments  and
      increases  to such  number  made or  required  to be made  under the terms
      hereof.

            "Warrant  Stock" means Common Stock  issuable  upon  exercise of any
      Warrant or  Warrants  or  otherwise  issuable  pursuant  to any Warrant or
      Warrants.

            9. Other Notices. In case at any time:

                        (A)   the  Issuer  shall make any  distributions  to the
                              holders of Common Stock; or

                        (B)   the Issuer  shall  authorize  the  granting to all
                              holders of its Common Stock of rights to subscribe
                              for or purchase any shares of Capital Stock of any
                              class or other rights; or

                        (C)   there shall be any reclassification of the Capital
                              Stock of the Issuer; or

                        (D)   there shall be any capital  reorganization  by the
                              Issuer; or

                                      -16-
<PAGE>

                        (E)   there  shall be any (i)  consolidation  or  merger
                              involving  the  Issuer or (ii) sale,  transfer  or
                              other  disposition of all or substantially  all of
                              the Issuer's property,  assets or business (except
                              a merger  or  other  reorganization  in which  the
                              Issuer shall be the surviving  corporation and its
                              shares  of  Capital  Stock  shall  continue  to be
                              outstanding    and    unchanged   and   except   a
                              consolidation,  merger,  sale,  transfer  or other
                              disposition involving a wholly-owned  Subsidiary);
                              or

                        (F)   there   shall  be  a  voluntary   or   involuntary
                              dissolution,  liquidation  or  winding-up  of  the
                              Issuer or any partial liquidation of the Issuer or
                              distribution to holders of Common Stock;

then, in each of such cases,  the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer  shall close or a record  shall
be taken for such dividend,  distribution  or  subscription  rights or (ii) such
reorganization,    reclassification,    consolidation,    merger,   disposition,
dissolution,  liquidation or  winding-up,  as the case may be, shall take place.
Such notice also shall  specify the date as of which the holders of Common Stock
of record shall  participate  in such  dividend,  distribution  or  subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation, merger, disposition,  dissolution, liquidation
or  winding-up,  as the case may be. Such notice  shall be given at least twenty
(20) days prior to the action in question  and not less than ten (10) days prior
to the record date or the date on which the Issuer's  transfer  books are closed
in respect  thereto.  This Warrant  entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

      10. Amendment and Waiver.  Any term,  covenant,  agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  Number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 11 without the consent of the Holder of this  Warrant.
No consideration shall be offered or paid to any person to amend or consent to a
waiver  or  modification  of any  provision  of this  Warrant  unless  the  same
consideration is also offered to all holders of the Warrants.

      11.  Governing  Law;  Jurisdiction.  This Warrant shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving  effect to any of the conflicts of law  principles  which would result in
the  application of the substantive  law of another  jurisdiction.  This Warrant
shall not be  interpreted or construed  with any  presumption  against the party
causing this  Warrant to be drafted.  The Issuer and the Holder agree that venue
for any dispute  arising under this Warrant will lie exclusively in the state or
federal courts located in New York County, New York, and the parties irrevocably
waive any right to raise forum non  conveniens  or any other  argument  that New
York is not the proper venue. The Issuer and the Holder  irrevocably  consent to
personal  jurisdiction in the state and federal courts of the state of New York.
The  Issuer and the Holder  consent  to process  being  served in any such suit,
action or  proceeding  by mailing a copy thereof to such party at the address in
effect for notices to it under this Warrant and agrees that such  service  shall
constitute good and sufficient service of process and notice thereof. Nothing in
this  Section 12 shall  affect or limit any right to serve  process in any other
manner  permitted  by law.  The  Issuer  and the  Holder  hereby  agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
the this Warrant or the Purchase  Agreement,  shall be entitled to reimbursement
for  reasonable  legal fees from the  non-prevailing  party.  The parties hereby
waive all rights to a trial by jury.

                                      -17-
<PAGE>

      12.  Notices.  Any and all notices or other  communications  or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and  effective on the earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via  facsimile  at the  facsimile
telephone  number  specified  for notice prior to 5:00 p.m.,  eastern time, on a
Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or  communication  is delivered via facsimile at the facsimile  telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of  mailing,  if sent by  overnight  delivery  by a  nationally  recognized
overnight  courier  service  or (iv)  actual  receipt  by the party to whom such
notice is required to be given. The addresses for such  communications  shall be
with respect to the Holder of this Warrant or of Warrant  Stock issued  pursuant
hereto,  addressed to such Holder at its last known address or facsimile  number
appearing  on the books of the  Issuer  maintained  for such  purposes,  or with
respect to the Issuer, addressed to:

                                    Dolce Ventures Inc.

                                    ------------------------

                                    ------------------------
                                    Attention: ________________
                                    Tel. No.: (___) ___-____
                                    Fax No.: (___) ___-____

with copies (which copies
shall not constitute notice
to the Issuer) to:                  GUZOV OFSINK, LLC
                                    600 Madison Avenue, 14th Floor
                                    New York, New York 10022
                                    Attention:  Darren Ofsink
                                    Tel. No.:  (212) 371-8008, ext. 127
                                    Fax No.:  (212) 688-7273

Copies of notices to the Holder shall be sent to Kramer Levin Naftalis & Frankel
LLP,  1177  Avenue  of the  Americas,  New  York,  New  York  10036,  Attention:
Christopher S. Auguste, Tel. No.: (212) 715-9100,  Fax. No.: (212) 715-8000. Any
party  hereto may from time to time  change its address for notices by giving at
least ten (10) days written  notice of such  changed  address to the other party
hereto.

                                      -18-
<PAGE>

      13.  Warrant  Agent.  The Issuer may, by written  notice to each Holder of
this  Warrant,  appoint an agent having an office in New York,  New York for the
purpose  of issuing  shares of Warrant  Stock on the  exercise  of this  Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to  subsection  (d) of Section 2 hereof or replacing  this  Warrant  pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing,  and thereafter any
such  issuance,  exchange or  replacement,  as the case may be, shall be made at
such office by such agent.

      14. Remedies. The Issuer stipulates that the remedies at law of the Holder
of this Warrant in the event of any default or threatened  default by the Issuer
in the  performance  of or compliance  with any of the terms of this Warrant are
not and will not be adequate and that, to the fullest  extent  permitted by law,
such terms may be specifically enforced by a decree for the specific performance
of any agreement contained herein or by an injunction against a violation of any
of the terms hereof or otherwise.

      15.  Successors and Assigns.  This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the  successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant  Stock issued  pursuant  hereto,  and shall be  enforceable  by any such
Holder or Holder of Warrant Stock.

      16.  Modification and Severability.  If, in any action before any court or
agency  legally  empowered  to  enforce  any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

      17.  Registration  Rights.  The Holder of this  Warrant is entitled to the
benefit of certain  registration  rights  with  respect to the shares of Warrant
Stock  issuable  upon the  exercise of this  Warrant  pursuant  to that  certain
Registration Rights Agreement,  of even date herewith,  by and among the Company
and Persons listed on Schedule I thereto (the  "Registration  Rights Agreement")
and the registration rights with respect to the shares of Warrant Stock issuable
upon the exercise of this Warrant by any subsequent  Holder may only be assigned
in  accordance  with  the  terms  and  provisions  of the  Registrations  Rights
Agreement.

      18.  Headings.  The  headings  of the  Sections  of this  Warrant  are for
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -19-
<PAGE>

      IN WITNESS  WHEREOF,  the Issuer has executed  this Series B Warrant as of
the day and year first above written.

                                                  DOLCE VENTURES INC.

                                                  By: __________________________
                                                      Name:
                                                      Title:

                                      -20-
<PAGE>
                                  EXERCISE FORM
                                SERIES B WARRANT

                               DOLCE VENTURES INC.

The  undersigned  _______________,  pursuant  to the  provisions  of the  within
Warrant,  hereby  elects to  purchase  _____  shares  of  Common  Stock of Dolce
Ventures Inc. covered by the within Warrant.

Dated: _________________            Signature        ___________________________

                                    Address          _____________________
                                                     _____________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned
by the Holder on the date of Exercise: _________________________

                                   ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature        ___________________________

                                    Address          _____________________
                                                     _____________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the right to  purchase  _________  shares of  Warrant  Stock
evidenced  by the within  Warrant  together  with all rights  therein,  and does
irrevocably  constitute and appoint  ___________________,  attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature        ___________________________

                                    Address          _____________________
                                                     _____________________

                           FOR USE BY THE ISSUER ONLY:

                                      -21-
<PAGE>

This Warrant No. W-___ canceled (or  transferred or exchanged) this _____ day of
___________,  _____,  shares  of Common  Stock  issued  therefor  in the name of
_______________,  Warrant No.  W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                      -22-THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED
OR OTHERWISE  DISPOSED OF UNLESS  REGISTERED  UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO  THE  ISSUER  THAT  REGISTRATION  OF  SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

                          SERIES C WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                               DOLCE VENTURES INC.

                           Expires September __, 2011

No.: W-C-06- __                                    Number of Shares: ___________
Date of Issuance: September __, 2006

FOR VALUE  RECEIVED,  subject  to the  provisions  hereinafter  set  forth,  the
undersigned,  Dolce  Ventures,  Inc.,  a Utah  corporation  (together  with  its
successors    and   assigns,    the    "Issuer"),    hereby    certifies    that
_______________________________  or its  registered  assigns  (the  "Holder") is
entitled  to  subscribe  for and  purchase,  during  the  Term  (as  hereinafter
defined),  up  to  ____________________________________  (_____________)  shares
(subject to adjustment as hereinafter provided) of the duly authorized,  validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise
price  per  share  equal to the  Warrant  Price  then in effect on the terms and
conditions  hereinafter set forth. The number of shares of Common Stock issuable
upon  exercise of this Warrant  reflects the number of shares of Common Stock to
which the Holder is entitled following the 1-for-304.4444 reverse stock split to
be effected by the Issuer  following the Original Issue Date (the "Reverse Stock
Split"). Capitalized terms used in this Warrant and not otherwise defined herein
shall have the respective meanings specified in Section 8 hereof.

      1. Term. The term of this Warrant shall commence on September __, 2006 and
shall expire at 6:00 p.m.,  eastern  time,  on  September  __, 2011 (such period
being the "Term").

      2. Method of  Exercise;  Payment;  Issuance of New  Warrant;  Transfer and
Exchange.

                                      -1-
<PAGE>

      (a) Time of Exercise.  The purchase rights represented by this Warrant may
be  exercised  in whole or in part  during the Term for such number of shares of
Common  Stock that have been  exercised  by the Holder  pursuant to the Series J
Warrant issued by the Issuer to the Holder pursuant to the Purchase Agreement.

      (b) Method of Exercise.  The Holder hereof may exercise  this Warrant,  in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached  hereto as  Exhibit A duly  executed)  at the  principal  office of the
Issuer, and by the payment to the Issuer of an amount of consideration  therefor
equal to the Warrant Price in effect on the date of such exercise  multiplied by
the number of shares of Warrant Stock with respect to which this Warrant is then
being exercised,  payable at such Holder's election (i) by certified or official
bank check or by wire transfer to an account  designated by the Issuer,  (ii) by
"cashless  exercise" in accordance with the provisions of subsection (c) of this
Section  2, but only when a  registration  statement  under the  Securities  Act
providing for the resale of the Warrant Stock is not then in effect, or (iii) by
a combination of the foregoing methods of payment selected by the Holder of this
Warrant.

      (c)  Cashless  Exercise.  Notwithstanding  any  provisions  herein  to the
contrary and  commencing  one (1) year following the Original Issue Date, if (i)
the Per Share  Market  Value of one share of Common  Stock is  greater  than the
Warrant  Price  (at the  date of  calculation  as set  forth  below)  and (ii) a
registration  statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect by the date such  registration  statement is
required to be  effective  pursuant to the  Registration  Rights  Agreement  (as
defined in the  Purchase  Agreement)  or not  effective  at any time  during the
Effectiveness  Period  (as  defined in the  Registration  Rights  Agreement)  in
accordance  with the  terms of the  Registration  Rights  Agreement,  in lieu of
exercising this Warrant by payment of cash, the Holder may exercise this Warrant
by a cashless  exercise  and shall  receive the number of shares of Common Stock
equal to an amount (as  determined  below) by  surrender  of this Warrant at the
principal  office of the Issuer  together with the properly  endorsed  Notice of
Exercise in which event the Issuer  shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

         X = Y - (A)(Y)
                 ------
                   B

Where    X =    the number of shares of Common Stock to be issued to the Holder.

         Y =    the number of shares of  Common  Stock purchasable upon exercise
                of all of the Warrant or, if  only a  portion  of the Warrant is
                being  exercised, the  portion of the  Warrant  being exercised.

         A =    the Warrant Price.

         B =    the Per Share Market Value of one share of Common Stock.

      (d)  Issuance of Stock  Certificates.  In the event of any exercise of the
rights  represented by this Warrant in accordance  with and subject to the terms
and conditions hereof, certificates for the shares of Warrant Stock so purchased
shall be dated the date of such  exercise  and  delivered  to the Holder  hereof
within a  reasonable  time,  not  exceeding  three (3)  Trading  Days after such
exercise (the "Delivery Date") or, at the request of the Holder (provided that a
registration  statement under the Securities Act providing for the resale of the
Warrant Stock is then in effect),  issued and delivered to the Depository  Trust
Company ("DTC") account on the Holder's behalf via the Deposit  Withdrawal Agent
Commission  System  ("DWAC")  within a reasonable  time, not exceeding three (3)
Trading Days after such exercise,  and the Holder hereof shall be deemed for all
purposes to be the holder of the shares of Warrant  Stock so purchased as of the
date of such  exercise.  The Holder shall deliver this original  Warrant,  or an
indemnification  undertaking  with  respect  to such  Warrant in the case of its
loss,  theft or destruction,  at such time that this Warrant is fully exercised.
With respect to partial exercises of this Warrant, the Issuer shall keep written
records for the Holder of the number of shares of Warrant Stock  exercised as of
each date of exercise.

                                      -2-
<PAGE>

      (e) Compensation for Buy-In on Failure to Timely Deliver Certificates Upon
Exercise. In addition to any other rights available to the Holder, if the Issuer
fails to cause its  transfer  agent to transmit to the Holder a  certificate  or
certificates representing the Warrant Stock pursuant to an exercise on or before
the Delivery  Date,  and if after such date the Holder is required by its broker
to purchase (in an open market  transaction or otherwise) shares of Common Stock
to deliver in  satisfaction  of a sale by the Holder of the Warrant  Stock which
the Holder  anticipated  receiving  upon such  exercise (a  "Buy-In"),  then the
Issuer  shall (1) pay in cash to the Holder the amount by which (x) the Holder's
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of shares of Warrant Stock that the Issuer was required to deliver to the
Holder in connection with the exercise at issue times (B) the price at which the
sell order giving rise to such purchase obligation was executed,  and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of shares of Warrant  Stock for which such  exercise  was not  honored or
deliver to the Holder the number of shares of Common  Stock that would have been
issued had the Issuer timely complied with its exercise and delivery obligations
hereunder.  For  example,  if the Holder  purchases  Common Stock having a total
purchase  price of  $11,000  to  cover a Buy-In  with  respect  to an  attempted
exercise of shares of Common Stock with an  aggregate  sale price giving rise to
such  purchase  obligation  of  $10,000,  under  clause  (1) of the  immediately
preceding  sentence the Issuer shall be required to pay the Holder  $1,000.  The
Holder shall provide the Issuer written notice indicating the amounts payable to
the Holder in respect of the Buy-In, together with applicable  confirmations and
other evidence reasonably requested by the Issuer.  Nothing herein shall limit a
Holder's right to pursue any other remedies available to it hereunder, at law or
in equity including, without limitation, a decree of specific performance and/or
injunctive  relief  with  respect  to the  Issuer's  failure  to timely  deliver
certificates  representing  shares of Common Stock upon exercise of this Warrant
as required pursuant to the terms hereof.

      (f)  Transferability  of Warrant.  Subject to Section  2(h)  hereof,  this
Warrant,  and the rights evidenced  hereby,  may be transferred by a Holder,  in
whole or in part, without the consent of the Issuer. If transferred  pursuant to
this  paragraph,  this Warrant may be  transferred on the books of the Issuer by
the Holder hereof in person or by duly  authorized  attorney,  upon surrender of
this Warrant at the principal  office of the Issuer,  properly  endorsed (by the
Holder  executing an assignment in the form attached hereto) and upon payment of
any  necessary  transfer  tax or other  governmental  charge  imposed  upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants to purchase the same aggregate number of shares of Warrant Stock,  each
new Warrant to represent  the right to purchase such number of shares of Warrant
Stock as the Holder  hereof shall  designate at the time of such  exchange.  All
Warrants issued on transfers or exchanges shall be dated the Original Issue Date
and shall be identical  with this  Warrant  except as to the number of shares of
Warrant Stock issuable pursuant thereto.

                                      -3-
<PAGE>

      (g) Continuing Rights of Holder. The Issuer will, at the time of or at any
time after each exercise of this Warrant, upon the request of the Holder hereof,
acknowledge  in writing the  extent,  if any, of its  continuing  obligation  to
afford to such  Holder all  rights to which such  Holder  shall  continue  to be
entitled  after such  exercise  in  accordance  with the terms of this  Warrant,
provided  that if any such  Holder  shall  fail to make any  such  request,  the
failure shall not affect the continuing  obligation of the Issuer to afford such
rights to such Holder.

      (h) Compliance with Securities Laws.

            (i) The Holder of this Warrant,  by acceptance hereof,  acknowledges
      that this  Warrant  and the  shares  of  Warrant  Stock to be issued  upon
      exercise hereof are being acquired solely for the Holder's own account and
      not as a nominee for any other  party,  and for  investment,  and that the
      Holder will not offer,  sell or  otherwise  dispose of this Warrant or any
      shares of Warrant Stock to be issued upon exercise  hereof except pursuant
      to an effective registration statement, or an exemption from registration,
      under the Securities Act and any applicable state securities laws.

            (ii) Except as provided in paragraph  (iii) below,  this Warrant and
      all certificates representing shares of Warrant Stock issued upon exercise
      hereof shall be stamped or imprinted  with a legend in  substantially  the
      following form:

               THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE
         UPON  EXERCISE  HEREOF  HAVE NOT  BEEN  REGISTERED  UNDER  THE
         SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT") OR
         ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED OR
         OTHERWISE  DISPOSED OF UNLESS  REGISTERED UNDER THE SECURITIES
         ACT AND UNDER  APPLICABLE  STATE SECURITIES LAWS OR THE ISSUER
         SHALL  HAVE   RECEIVED   AN  OPINION  OF  COUNSEL   REASONABLY
         SATISFACTORY   TO  THE  ISSUER  THAT   REGISTRATION   OF  SUCH
         SECURITIES  UNDER THE  SECURITIES ACT AND UNDER THE PROVISIONS
         OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

                                      -4-
<PAGE>

            (iii) The Issuer  agrees to  reissue  this  Warrant or  certificates
      representing any of the Warrant Stock,  without the legend set forth above
      if at such time, prior to making any transfer of any such securities,  the
      Holder shall give written  notice to the Issuer  describing the manner and
      terms of such transfer and removal as the Issuer may  reasonably  request.
      Such proposed  transfer and removal will not be effected until: (a) either
      (i) the Issuer has received an opinion of counsel reasonably  satisfactory
      to the Issuer,  to the effect  that the  registration  of such  securities
      under the Securities Act is not required in connection  with such proposed
      transfer,  (ii) a registration statement under the Securities Act covering
      such proposed disposition has been filed by the Issuer with the Securities
      and Exchange Commission and has become effective under the Securities Act,
      (iii) the Issuer has received other evidence  reasonably  satisfactory  to
      the Issuer that such registration and  qualification  under the Securities
      Act and  state  securities  laws  are not  required,  or (iv)  the  Holder
      provides the Issuer with  reasonable  assurances that such security can be
      sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the
      Issuer has received an opinion of counsel  reasonably  satisfactory to the
      Issuer,  to the  effect  that  registration  or  qualification  under  the
      securities  or "blue sky" laws of any state is not required in  connection
      with such proposed  disposition,  or (ii) compliance with applicable state
      securities  or "blue  sky"  laws has been  effected  or a valid  exemption
      exists with  respect  thereto.  The Issuer will respond to any such notice
      from a holder  within three (3) Trading  Days. In the case of any proposed
      transfer under this Section 2(h),  the Issuer will use reasonable  efforts
      to comply with any such  applicable  state  securities or "blue sky" laws,
      but shall in no event be  required,  (x) to qualify to do  business in any
      state where it is not then qualified, or (y) to take any action that would
      subject it to tax or to the general  service of process in any state where
      it is not then subject.  The  restrictions  on transfer  contained in this
      Section 2(h) shall be in addition to, and not by way of limitation of, any
      other  restrictions  on transfer  contained  in any other  section of this
      Warrant. Whenever a certificate representing the Warrant Stock is required
      to be issued to a the  Holder  without  a  legend,  in lieu of  delivering
      physical  certificates  representing  the Warrant Stock  (provided  that a
      registration  statement  under the Securities Act providing for the resale
      of the  Warrant  Stock is then in  effect),  the  Issuer  shall  cause its
      transfer agent to electronically  transmit the Warrant Stock to the Holder
      by crediting the account of the Holder's Prime Broker with DTC through its
      DWAC system.

      (i) Accredited Investor.  In no event may the Holder exercise this Warrant
in whole or in part unless the Holder is an "accredited  investor" as defined in
Regulation D under the Securities Act.

      3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

      (a) Stock Fully  Paid.  The Issuer  represents,  warrants,  covenants  and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will,  when issued in accordance  with the
terms of this  Warrant,  be duly  authorized,  validly  issued,  fully  paid and
non-assessable  and free from all taxes, liens and charges created by or through
the  Issuer.  The Issuer  further  covenants  and agrees  that during the period
within  which this Warrant may be  exercised,  the Issuer will at all times have
authorized  and reserved for the purpose of the issuance  upon  exercise of this
Warrant a number of authorized  but unissued  shares of Common Stock equal to at
least  one  hundred  percent  (100%) of the  number  of  shares of Common  Stock
issuable  upon exercise of this Warrant  without  regard to any  limitations  on
exercise.

                                      -5-
<PAGE>

      (b) Reservation. If any shares of Common Stock required to be reserved for
issuance  upon  exercise  of this  Warrant or as  otherwise  provided  hereunder
require registration or qualification with any Governmental  Authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly  registered or qualified.  If the Issuer shall list
any shares of Common Stock on any securities  exchange or market it will, at its
expense,  list thereon,  and maintain and increase when  necessary such listing,
of, all shares of Warrant  Stock from time to time issued upon  exercise of this
Warrant or as otherwise provided hereunder (provided that such Warrant Stock has
been  registered  pursuant to a registration  statement under the Securities Act
then in effect),  and, to the extent permissible under the applicable securities
exchange  rules,  all  unissued  shares of Warrant  Stock  which are at any time
issuable  hereunder,  so long as any shares of Common  Stock shall be so listed.
The Issuer will also so list on each  securities  exchange  or market,  and will
maintain such listing of, any other  securities which the Holder of this Warrant
shall be entitled to receive  upon the  exercise of this  Warrant if at the time
any securities of the same class shall be listed on such securities  exchange or
market by the Issuer.

      (c)  Covenants.  The  Issuer  shall not by any action  including,  without
limitation, amending the Articles of Incorporation or the by-laws of the Issuer,
or  through  any  reorganization,  transfer  of assets,  consolidation,  merger,
dissolution,  issue or sale of securities or any other action,  avoid or seek to
avoid the  observance or  performance  of any of the terms of this Warrant,  but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or  appropriate to protect
the rights of the Holder  hereof  against  dilution (to the extent  specifically
provided  herein)  or  impairment.   Without  limiting  the  generality  of  the
foregoing,  the Issuer will (i) not permit the par value,  if any, of its Common
Stock to exceed the then effective  Warrant Price,  (ii) not amend or modify any
provision  of the  Articles  of  Incorporation  or  by-laws of the Issuer in any
manner that would  adversely  affect the rights of the Holders of the  Warrants,
(iii)  take all such  action as may be  reasonably  necessary  in order that the
Issuer may  validly and legally  issue  fully paid and  nonassessable  shares of
Common Stock, free and clear of any liens, claims, encumbrances and restrictions
(other than as provided herein) upon the exercise of this Warrant,  and (iv) use
its best efforts to obtain all such authorizations,  exemptions or consents from
any public  regulatory  body having  jurisdiction  thereof as may be  reasonably
necessary to enable the Issuer to perform its obligations under this Warrant.

      (d) Loss,  Theft,  Destruction  of  Warrants.  Upon  receipt  of  evidence
satisfactory to the Issuer of the ownership of and the loss, theft,  destruction
or  mutilation  of any  Warrant  and,  in the  case of any such  loss,  theft or
destruction,  upon receipt of indemnity or security  satisfactory  to the Issuer
or, in the case of any such mutilation,  upon surrender and cancellation of such
Warrant,  the  Issuer  will  make and  deliver,  in lieu of such  lost,  stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

      (e)  Payment of Taxes.  The Issuer  will pay any  documentary  stamp taxes
attributable to the initial issuance of the Warrant Stock issuable upon exercise
of this Warrant; provided, however, that the Issuer shall not be required to pay
any tax or taxes which may be payable in respect of any transfer involved in the
issuance or delivery of any  certificates  representing  Warrant Stock in a name
other than that of the Holder in respect to which such shares are issued.

                                      -6-
<PAGE>

      4. Adjustment of Warrant Price.  The price at which such shares of Warrant
Stock may be  purchased  upon  exercise  of this  Warrant  shall be  subject  to
adjustment  from time to time as set forth in this  Section 4. The Issuer  shall
give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with the notice provisions set forth in
Section 5.

      (a)  Recapitalization,  Reorganization,  Reclassification,  Consolidation,
Merger or Sale.

            (i) In case the Issuer after the Original Issue Date shall do any of
      the following (each, a "Triggering  Event"): (a) consolidate or merge with
      or into any other  Person and the Issuer  shall not be the  continuing  or
      surviving  corporation of such  consolidation or merger, or (b) permit any
      other Person to  consolidate  with or merge into the Issuer and the Issuer
      shall be the continuing or surviving  Person but, in connection  with such
      consolidation or merger,  any Capital Stock of the Issuer shall be changed
      into or exchanged for  Securities of any other Person or cash or any other
      property,  or (c) transfer all or  substantially  all of its properties or
      assets to any other  Person,  or (d)  effect a capital  reorganization  or
      reclassification  of its Capital Stock,  other than any event set forth in
      Section 4(b) below,  then, and in the case of each such Triggering  Event,
      proper  provision  shall be made so that, upon the basis and the terms and
      in the manner  provided in this Warrant,  the Holder of this Warrant shall
      be entitled upon the exercise hereof at any time after the consummation of
      such  Triggering  Event, to the extent this Warrant is not exercised prior
      to such Triggering Event, to receive at the Warrant Price in effect at the
      time  immediately  prior to the  consummation of such Triggering  Event in
      lieu of the Common Stock issuable upon such exercise of this Warrant prior
      to such Triggering Event, the Securities,  cash and property to which such
      Holder would have been entitled upon the  consummation  of such Triggering
      Event if such Holder had exercised the rights  represented by this Warrant
      immediately  prior thereto  (including the right of a shareholder to elect
      the  type of  consideration  it will  receive  upon a  Triggering  Event),
      subject to adjustments  (subsequent  to such  corporate  action) as nearly
      equivalent as possible to the  adjustments  provided for elsewhere in this
      Section 4; provided, however, in the event that the Per Share Market Value
      is less than the Warrant Price at the time of such Triggering  Event,  the
      Holder shall  receive an amount in cash equal to the value of this Warrant
      calculated in accordance with the Black-Scholes  formula.  Notwithstanding
      the  foregoing to the contrary,  this Section  4(a)(i) shall only apply if
      the surviving  entity pursuant to any such  Triggering  Event is a company
      that  has  a  class  of  equity  securities  registered  pursuant  to  the
      Securities  Exchange  Act of 1934,  as  amended,  and its common  stock is
      listed or quoted on a national  securities  exchange,  national  automated
      quotation  system  or the  OTC  Bulletin  Board.  In the  event  that  the
      surviving  entity  pursuant to any such  Triggering  Event is not a public
      company  that is  registered  pursuant to the  Securities  Exchange Act of
      1934,  as  amended,  or its  common  stock is not  listed  or  quoted on a
      national securities  exchange,  national automated quotation system or the
      OTC  Bulletin  Board,  then the Holder shall have the right to demand that
      the  Issuer pay to the Holder an amount in cash equal to the value of this
      Warrant calculated in accordance with the Black-Scholes formula.

                                      -7-
<PAGE>

            (ii)  Notwithstanding  anything  contained  in this  Warrant  to the
      contrary and so long as the surviving  entity  pursuant to any  Triggering
      Event  is a  company  that  has a class of  equity  securities  registered
      pursuant to the  Securities  Exchange  Act of 1934,  as  amended,  and its
      common  stock is  listed  or quoted  on a  national  securities  exchange,
      national  automated   quotation  system  or  the  OTC  Bulletin  Board,  a
      Triggering  Event shall not be deemed to have  occurred  if,  prior to the
      consummation  thereof,  each Person  (other than the Issuer)  which may be
      required to deliver any Securities,  cash or property upon the exercise of
      this  Warrant as  provided  herein  shall  assume,  by written  instrument
      delivered to, and reasonably  satisfactory to, the Holder of this Warrant,
      (A) the  obligations  of the Issuer  under this Warrant (and if the Issuer
      shall survive the consummation of such Triggering  Event,  such assumption
      shall be in  addition  to,  and shall not  release  the Issuer  from,  any
      continuing  obligations  of the  Issuer  under this  Warrant)  and (B) the
      obligation to deliver to such Holder such Securities, cash or property as,
      in accordance  with the foregoing  provisions of this subsection (a), such
      Holder shall be entitled to receive,  and such Person shall have similarly
      delivered  to such  Holder an opinion of counsel  for such  Person,  which
      counsel  shall  be  reasonably  satisfactory  to  such  Holder,  or in the
      alternative,  a written acknowledgement executed by the President or Chief
      Financial  Officer  of  the  Issuer,   stating  that  this  Warrant  shall
      thereafter  continue  in  full  force  and  effect  and the  terms  hereof
      (including,  without limitation,  all of the provisions of this subsection
      (a)) shall be applicable to the  Securities,  cash or property  which such
      Person may be required to deliver upon any exercise of this Warrant or the
      exercise of any rights pursuant hereto.

      (b) Stock  Dividends,  Subdivisions and  Combinations.  If at any time the
Issuer shall:

            (i) make or issue or set a record date for the holders of the Common
      Stock for the purpose of entitling them to receive a dividend  payable in,
      or other distribution of, shares of Common Stock (other than in connection
      with the  dividend  payable in shares of Common  Stock to be issued by the
      Issuer to the Issuer's stockholders in connection with the spin-off of the
      Issuer's wholly-owned subsidiary, Pegasus Tel, Inc.),

            (ii) subdivide its outstanding  shares of Common Stock into a larger
      number of shares of Common Stock, or

            (iii) combine its outstanding  shares of Common Stock into a smaller
      number of shares of Common  Stock  (other  than  pursuant  to the  Reverse
      Split),

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record  holder of the same
number of  shares  of  Common  Stock  for  which  this  Warrant  is  exercisable
immediately  prior to the  occurrence  of such event would own or be entitled to
receive  after the  happening of such event,  and (2) the Warrant  Price then in
effect  shall  be  adjusted  to  equal  (A) the  Warrant  Price  then in  effect
multiplied  by the number of shares of Common  Stock for which  this  Warrant is
exercisable  immediately  prior to the  adjustment  divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable  immediately  after
such adjustment.

                                      -8-
<PAGE>

      (c) Certain Other  Distributions.  If at any time the Issuer shall make or
issue or set a record  date for the  determination  of the holders of the Common
Stock for the  purpose  of  entitling  them to  receive  any  dividend  or other
distribution of:

            (i) cash  (other  than a cash  dividend  payable  out of earnings or
      earned surplus  legally  available for the payment of dividends  under the
      laws of the jurisdiction of incorporation of the Issuer),

            (ii) any evidences of its  indebtedness,  any shares of stock of any
      class or any other securities or property of any nature  whatsoever (other
      than cash, Common Stock Equivalents or Additional Shares of Common Stock),
      or

            (iii) any warrants or other rights to subscribe  for or purchase any
      evidences  of its  indebtedness,  any  shares of stock of any class or any
      other  securities or property of any nature  whatsoever  (other than cash,
      Common Stock Equivalents or Additional Shares of Common Stock),

then (1) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable  shall be  adjusted  to equal the product of the number of shares of
Common Stock for which this  Warrant is  exercisable  immediately  prior to such
adjustment  multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator  of which  shall be such Per Share  Market  Value  minus the  amount
allocable to one share of Common Stock of any such cash so distributable  and of
the fair value (as  determined  in good faith by the Board of  Directors  of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to (but not affiliated with) the Holder) of any and
all such  evidences  of  indebtedness,  shares of  stock,  other  securities  or
property or warrants or other  subscription or purchase rights so distributable,
and (2) the  Warrant  Price then in effect  shall be  adjusted  to equal (A) the
Warrant Price then in effect  multiplied by the number of shares of Common Stock
for which  this  Warrant  is  exercisable  immediately  prior to the  adjustment
divided  by (B) the number of shares of Common  Stock for which this  Warrant is
exercisable immediately after such adjustment.  A reclassification of the Common
Stock  (other  than a change in par value,  or from par value to no par value or
from no par value to par value)  into  shares of Common  Stock and shares of any
other class of stock shall be deemed a distribution by the Issuer to the holders
of its  Common  Stock of such  shares of such  other  class of stock  within the
meaning of this  Section  4(c) and, if the  outstanding  shares of Common  Stock
shall be changed into a larger or smaller  number of shares of Common Stock as a
part of such  reclassification,  such change  shall be deemed a  subdivision  or
combination,  as the case may be, of the  outstanding  shares  of  Common  Stock
within the meaning of Section 4(b).

      (d) Issuance of Additional Shares of Common Stock. In the event the Issuer
shall at any time within the two (2) year period following the Original Issuance
Date issue any Additional  Shares of Common Stock (otherwise than as provided in
the  foregoing  subsections  (b) through (c) of this  Section 4), at a price per
share less than $2.74 or without consideration, then the Warrant Price upon each
such  issuance  shall be adjusted to the price  equal to the  consideration  per
share paid for such Additional Shares of Common Stock.

                                      -9-
<PAGE>

      (e) Issuance of Common Stock Equivalents. In the event the Issuer shall at
any time within the two (2) year period  following  the Original  Issuance  Date
take a record of the holders of its Common  Stock for the  purpose of  entitling
them to receive a distribution  of, or shall in any manner (whether  directly or
by  assumption  in a merger in which the  Issuer is the  surviving  corporation)
issue or sell,  any  Common  Stock  Equivalents,  whether  or not the  rights to
exchange or convert  thereunder are immediately  exercisable,  and the price per
share for which Common Stock is issuable upon such  conversion or exchange shall
be less than $2.74  immediately  prior to the time of such issue or sale, or if,
after any such  issuance of Common  Stock  Equivalents,  the price per share for
which Additional Shares of Common Stock may be issuable thereafter is amended or
adjusted,  and such price as so amended  shall be less than $2.74 at the time of
such  amendment or  adjustment,  then the Warrant  Price then in effect shall be
adjusted as provided in Section  4(d). No further  adjustments  of the number of
shares of Common  Stock for which this  Warrant is  exercisable  and the Warrant
Price then in effect  shall be made upon the actual  issue of such Common  Stock
upon conversion or exchange of such Common Stock Equivalents.

      (f) Other  Provisions  Applicable to Adjustments  under this Section.  The
following  provisions  shall be applicable to the making of  adjustments  of the
number of shares of Common Stock for which this Warrant is  exercisable  and the
Warrant Price then in effect provided for in this Section 4:

            (i) Computation of Consideration.  To the extent that any Additional
      Shares of Common Stock or any Common Stock Equivalents (or any warrants or
      other  rights  therefor)  shall  be  issued  for cash  consideration,  the
      consideration  received by the Issuer  therefor shall be the amount of the
      cash received by the Issuer  therefor,  or, if such  Additional  Shares of
      Common  Stock or Common  Stock  Equivalents  are offered by the Issuer for
      subscription,  the subscription  price,  or, if such Additional  Shares of
      Common  Stock or Common  Stock  Equivalents  are sold to  underwriters  or
      dealers for public offering without a subscription  offering,  the initial
      public  offering price (in any such case  subtracting  any amounts paid or
      receivable  for accrued  interest or accrued  dividends and without taking
      into account any  compensation,  discounts or expenses paid or incurred by
      the Issuer for and in the  underwriting  of, or  otherwise  in  connection
      with,   the  issuance   thereof).   In  connection   with  any  merger  or
      consolidation in which the Issuer is the surviving corporation (other than
      any consolidation or merger in which the previously  outstanding shares of
      Common Stock of the Issuer shall be changed to or exchanged  for the stock
      or other securities of another  corporation),  the amount of consideration
      therefore shall be, deemed to be the fair value, as determined  reasonably
      and in good  faith by the  Board and  acceptable  to the  Holder,  of such
      portion of the assets and business of the nonsurviving  corporation as the
      Board may determine to be  attributable  to such shares of Common Stock or
      Common Stock  Equivalents,  as the case may be. The  consideration for any
      Additional  Shares of Common  Stock  issuable  pursuant to any warrants or
      other  rights  to  subscribe  for  or  purchase  the  same  shall  be  the
      consideration  received by the Issuer for issuing  such  warrants or other
      rights  plus the  additional  consideration  payable  to the  Issuer  upon
      exercise  of such  warrants or other  rights.  The  consideration  for any
      Additional  Shares of Common Stock  issuable  pursuant to the terms of any
      Common Stock Equivalents shall be the consideration received by the Issuer
      for issuing  warrants or other  rights to subscribe  for or purchase  such
      Common Stock  Equivalents,  plus the consideration  paid or payable to the
      Issuer in respect of the subscription for or purchase of such Common Stock
      Equivalents,  plus the additional  consideration,  if any,  payable to the
      Issuer upon the  exercise of the right of  conversion  or exchange in such
      Common Stock  Equivalents.  In the event of any consolidation or merger of
      the  Issuer in which the  Issuer is not the  surviving  corporation  or in
      which the  previously  outstanding  shares of Common  Stock of the  Issuer
      shall be changed into or exchanged  for the stock or other  securities  of
      another  corporation,  or in the event of any sale of all or substantially
      all of the  assets  of the  Issuer  for stock or other  securities  of any
      corporation,  the Issuer shall be deemed to have issued a number of shares
      of its Common Stock for stock or securities or other property of the other
      corporation  computed on the basis of the actual  exchange  ratio on which
      the transaction was predicated,  and for a consideration equal to the fair
      market  value  on the  date of  such  transaction  of all  such  stock  or
      securities or other  property of the other  corporation.  In the event any
      consideration  received  by the  Issuer  for any  securities  consists  of
      property  other than cash,  the fair market  value  thereof at the time of
      issuance or as otherwise  applicable  shall be as determined in good faith
      by the Board.  In the event  Common  Stock is issued with other  shares or
      securities  or other assets of the Issuer for  consideration  which covers
      both, the consideration computed as provided in this Section 4(f)(i) shall
      be allocated  among such securities and assets as determined in good faith
      by the Board.

                                      -10-
<PAGE>

            (ii) When  Adjustments to Be Made. The adjustments  required by this
      Section  4 shall be made  whenever  and as often  as any  specified  event
      requiring an  adjustment  shall occur,  except that any  adjustment of the
      number of shares of Common  Stock for which this  Warrant  is  exercisable
      that would otherwise be required may be postponed (except in the case of a
      subdivision or combination of shares of the Common Stock,  as provided for
      in  Section  4(b)) up to,  but not  beyond  the date of  exercise  if such
      adjustment  either by itself or with other adjustments not previously made
      adds or subtracts less than one percent (1%) of the shares of Common Stock
      for which this Warrant is exercisable  immediately  prior to the making of
      such  adjustment.  Any adjustment  representing a change of less than such
      minimum amount (except as aforesaid)  which is postponed  shall be carried
      forward  and  made  as  soon  as  such  adjustment,  together  with  other
      adjustments  required by this  Section 4 and not  previously  made,  would
      result in a minimum adjustment or on the date of exercise. For the purpose
      of any adjustment, any specified event shall be deemed to have occurred at
      the close of business on the date of its occurrence.

            (iii)  Fractional  Interests.  In computing  adjustments  under this
      Section  4,  fractional  interests  in Common  Stock  shall be taken  into
      account to the nearest one one-hundredth (1/100th) of a share.

            (iv) When Adjustment Not Required. If the Issuer shall take a record
      of the holders of its Common  Stock for the purpose of  entitling  them to
      receive a dividend or  distribution or subscription or purchase rights and
      shall,  thereafter and before the  distribution to  stockholders  thereof,
      legally  abandon its plan to pay or deliver such  dividend,  distribution,
      subscription or purchase  rights,  then thereafter no adjustment  shall be
      required  by reason of the taking of such  record and any such  adjustment
      previously made in respect thereof shall be rescinded and annulled.

      (g) Form of Warrant after  Adjustments.  The form of this Warrant need not
be changed  because of any  adjustments  in the Warrant  Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

                                      -11-
<PAGE>

      (h) Escrow of Warrant Stock. If after any property  becomes  distributable
pursuant to this  Section 4 by reason of the taking of any record of the holders
of Common Stock,  but prior to the occurrence of the event for which such record
is taken,  and the Holder  exercises  this  Warrant,  any shares of Common Stock
issuable  upon  exercise by reason of such  adjustment  shall be deemed the last
shares of Common Stock for which this Warrant is exercised  (notwithstanding any
other provision to the contrary  herein) and such shares or other property shall
be held in escrow for the  Holder by the Issuer to be issued to the Holder  upon
and to the extent  that the event  actually  takes  place,  upon  payment of the
current  Warrant  Price.  Notwithstanding  any other  provision  to the contrary
herein,  if the event  for  which  such  record  was taken  fails to occur or is
rescinded,  then such  escrowed  shares  shall be  cancelled  by the  Issuer and
escrowed property returned.

      5. Notice of  Adjustments.  Whenever  the Warrant  Price or Warrant  Share
Number  shall be adjusted  pursuant  to Section 4 hereof  (for  purposes of this
Section 5, each an  "adjustment"),  the Issuer  shall cause its Chief  Financial
Officer to prepare  and  execute a  certificate  setting  forth,  in  reasonable
detail,  the event requiring the adjustment,  the amount of the adjustment,  the
method by which such  adjustment was calculated  (including a description of the
basis on which the Board  made any  determination  hereunder),  and the  Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such  certificate  to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with  respect to the matters set forth in such  certificate  may at
the  option  of the  Holder  of this  Warrant  be  submitted  to an  Independent
Appraiser  reasonably  acceptable to the Issuer and the Holder. The Issuer shall
use its  best  efforts  to  cause  the  Independent  Appraiser  to  perform  the
calculations  and notify the Issuer and the Holder of the  results no later than
five (5) business days from the time it receives the disputed calculation.  Such
Independent  Appraiser's  calculation  shall be binding upon all parties  absent
manifest error. The reasonable  expenses of the Independent  Appraiser in making
such  determination  shall be paid by the  Issuer,  in the  event  the  Holder's
calculation was correct, or by the Holder, in the event the Issuer's calculation
was  correct,  or equally by the Issuer and the Holder in the event that neither
the Issuer's or the Holder's calculation was correct.

      6. Fractional Shares. No fractional shares of Warrant Stock will be issued
in connection with any exercise hereof,  but in lieu of such fractional  shares,
the Issuer shall round the number of shares to be issued upon exercise up to the
nearest whole number of shares.

      7. Ownership Cap and Exercise Restriction. Notwithstanding anything to the
contrary  set forth in this  Warrant,  at no time may a Holder  of this  Warrant
exercise  this  Warrant  if the  number of  shares of Common  Stock to be issued
pursuant to such exercise would exceed, when aggregated with all other shares of
Common  Stock owned by such Holder at such time,  the number of shares of Common
Stock which would result in such Holder  beneficially  owning (as  determined in
accordance  with Section 13(d) of the Exchange Act and the rules  thereunder) in
excess of 9.9% of the then  issued  and  outstanding  shares  of  Common  Stock;
provided,  however, that upon a holder of this Warrant providing the Issuer with
sixty-one (61) days notice (pursuant to Section 12 hereof) (the "Waiver Notice")
that such  Holder  would like to waive this  Section 7 with regard to any or all
shares of Common Stock  issuable upon  exercise of this Warrant,  this Section 7
will be of no force or effect  with  regard to all or a portion  of the  Warrant
referenced in the Waiver Notice; provided, further, that this provision shall be
of no  further  force or effect  during  the  sixty-one  (61)  days  immediately
preceding the expiration of the term of this Warrant.

                                      -12-
<PAGE>

      8. Definitions. For the purposes of this Warrant, the following terms have
the following meanings:

            "Additional Shares of Common Stock" means all shares of Common Stock
      issued by the Issuer  after the  Original  Issue  Date,  and all shares of
      Other Common,  if any, issued by the Issuer after the Original Issue Date,
      except:  (i) securities  issued pursuant to a bona fide firm  underwritten
      public  offering  of  the  Issuer's  securities,  (ii)  securities  issued
      pursuant  to the  conversion  or exercise of  convertible  or  exercisable
      securities issued or outstanding on or prior to the Original Issue Date or
      issued  pursuant to the Purchase  Agreement (so long as the  conversion or
      exercise  price in such  securities  are not  amended  to lower such price
      and/or  adversely  affect the  Holders),  (iii) the  Warrant  Stock,  (iv)
      securities  issued (other than for cash) in connection with an acquisition
      of the Issuer,  (v) any  warrants  issued to the  placement  agent for the
      transactions  contemplated  by the  Purchase  Agreement,  (vi)  securities
      issued  in  connection  with  strategic   license   agreements  and  other
      partnering  arrangements so long as such issuances are not for the purpose
      of raising  capital and the Issuer has received the prior written  consent
      of the Holder,  and (vii) the  issuance of Common Stock or the issuance or
      grants of options to purchase  Common Stock pursuant to the Issuer's stock
      option  plans and  employee  stock  purchase  plans  and  which  have been
      approved by the Issuer's  Board of Directors so long as such  issuances in
      the aggregate do not exceed ten percent  (10%) of the Issuer's  issued and
      outstanding Common Stock as of the Original Issue Date.

            "Articles of  Incorporation"  means the Articles of Incorporation of
      the Issuer as in effect on the Original  Issue Date, and as hereafter from
      time to time  amended,  modified,  supplemented  or restated in accordance
      with the terms hereof and thereof and pursuant to applicable law.

            "Board" shall mean the Board of Directors of the Issuer.

            "Capital   Stock"  means  and  includes  (i)  any  and  all  shares,
      interests, participations or other equivalents of or interests in (however
      designated)  corporate stock,  including,  without  limitation,  shares of
      preferred or preference  stock,  (ii) all partnership  interests  (whether
      general  or  limited)  in any  Person  which is a  partnership,  (iii) all
      membership interests or limited liability company interests in any limited
      liability  company,  and (iv) all  equity or  ownership  interests  in any
      Person of any other type.

            "Common Stock" means the Common Stock, par value $.001 per share, of
      the Issuer and any other Capital Stock into which such stock may hereafter
      be changed.

            "Common Stock Equivalent" means any Convertible Security or warrant,
      option or other right to subscribe for or purchase any  Additional  Shares
      of Common Stock or any Convertible Security.

                                      -13-
<PAGE>

            "Convertible Securities" means evidences of Indebtedness,  shares of
      Capital  Stock  or  other  Securities  which  are or  may  be at any  time
      convertible  into or exchangeable  for Additional  Shares of Common Stock.
      The term "Convertible Security" means one of the Convertible Securities.

            "Governmental  Authority"  means  any  governmental,  regulatory  or
      self-regulatory entity, department, body, official, authority, commission,
      board,  agency or  instrumentality,  whether federal,  state or local, and
      whether domestic or foreign.

            "Holders"  mean the  Persons  who  shall  from  time to time own any
      Warrant. The term "Holder" means one of the Holders.

            "Independent  Appraiser"  means a  nationally  recognized  or  major
      regional  investment banking firm or firm of independent  certified public
      accountants of recognized  standing  (which may be the firm that regularly
      examines the financial statements of the Issuer) that is regularly engaged
      in the business of appraising the Capital Stock or assets of  corporations
      or other  entities as going  concerns,  and which is not  affiliated  with
      either the Issuer or the Holder of any Warrant.

            "Issuer"  means Dolce  Ventures  Inc., a Utah  corporation,  and its
      successors.

            "Majority  Holders"  means  at any  time  the  Holders  of  Warrants
      exercisable  for a majority of the shares of Warrant Stock  issuable under
      the Warrants at the time outstanding.

            "Original Issue Date" means September __, 2006.

            "OTC Bulletin Board" means the over-the-counter  electronic bulletin
      board.

            "Other  Common"  means any other  Capital Stock of the Issuer of any
      class which shall be authorized at any time after the date of this Warrant
      (other than Common Stock) and which shall have the right to participate in
      the  distribution of earnings and assets of the Issuer without  limitation
      as to amount.

            "Outstanding  Common Stock" means,  at any given time, the aggregate
      amount of  outstanding  shares of Common Stock,  assuming  full  exercise,
      conversion or exchange (as applicable) of all options,  warrants and other
      Securities which are convertible into or exercisable or exchangeable  for,
      and  any  right  to  subscribe  for,  shares  of  Common  Stock  that  are
      outstanding at such time.

            "Person"  means  an  individual,   corporation,   limited  liability
      company,   partnership,   joint  stock  company,   trust,   unincorporated
      organization,  joint  venture,  Governmental  Authority or other entity of
      whatever nature.

                                      -14-
<PAGE>

            "Per Share Market Value" means on any  particular  date (a) the last
      closing  price  per  share of the  Common  Stock  on such  date on the OTC
      Bulletin Board or another registered  national stock exchange on which the
      Common Stock is then listed, or if there is no closing price on such date,
      then the  closing  bid price on such date,  or if there is no closing  bid
      price on such date,  then the closing  price on such exchange or quotation
      system on the date nearest preceding such date, or (b) if the Common Stock
      is not listed then on the OTC Bulletin  Board or any  registered  national
      stock exchange,  the last closing price for a share of Common Stock in the
      over-the-counter  market,  as reported by the OTC Bulletin Board or in the
      National Quotation Bureau  Incorporated or similar  organization or agency
      succeeding to its functions of reporting  prices, at the close of business
      on such  date,  or if there is no  closing  price on such  date,  then the
      closing  bid price on such date,  or (c) if the  Common  Stock is not then
      reported  by the OTC  Bulletin  Board  or the  National  Quotation  Bureau
      Incorporated  (or  similar   organization  or  agency  succeeding  to  its
      functions  of  reporting  prices),  then the  average of the "Pink  Sheet"
      quotes for the five (5) Trading Days preceding such date of determination,
      or (d) if the Common  Stock is not then  publicly  traded the fair  market
      value of a share of Common Stock as determined by an Independent Appraiser
      selected in good faith by the Majority Holders;  provided,  however,  that
      the  Issuer,  after  receipt  of the  determination  by  such  Independent
      Appraiser,  shall  have the  right to  select  an  additional  Independent
      Appraiser,  in which  case,  the fair  market  value shall be equal to the
      average of the  determinations  by each such  Independent  Appraiser;  and
      provided,  further that all  determinations  of the Per Share Market Value
      shall be appropriately  adjusted for any stock dividends,  stock splits or
      other similar  transactions  during such period. The determination of fair
      market  value by an  Independent  Appraiser  shall be based  upon the fair
      market value of the Issuer  determined on a going concern basis as between
      a willing buyer and a willing  seller and taking into account all relevant
      factors  determinative  of value,  and shall be final and  binding  on all
      parties.  In  determining  the fair  market  value of any shares of Common
      Stock, no consideration  shall be given to any restrictions on transfer of
      the Common Stock  imposed by  agreement or by federal or state  securities
      laws,  or to the  existence or absence of, or any  limitations  on, voting
      rights.

            "Purchase Agreement" means the Series B Convertible  Preferred Stock
      Purchase Agreement dated as of September 7, 2006, among the Issuer and the
      Purchasers.

            "Purchasers"  means  the  purchasers  of the  Series  B  Convertible
      Preferred Stock and Warrants issued by the Issuer pursuant to the Purchase
      Agreement.

            "Securities"  means any debt or  equity  securities  of the  Issuer,
      whether now or hereafter  authorized,  any instrument  convertible into or
      exchangeable  for  Securities  or a Security,  and any option,  warrant or
      other right to purchase or acquire any Security.  "Security"  means one of
      the Securities.

            "Securities  Act" means the Securities  Act of 1933, as amended,  or
      any similar federal statute then in effect.

            "Subsidiary" means any corporation at least 50% of whose outstanding
      Voting  Stock  shall at the time be owned  directly or  indirectly  by the
      Issuer or by one or more of its Subsidiaries,  or by the Issuer and one or
      more of its Subsidiaries.

            "Term" has the meaning specified in Section 1 hereof.

                                      -15-
<PAGE>

            "Trading Day" means (a) a day on which the Common Stock is traded on
      the OTC  Bulletin  Board,  or (b) if the Common Stock is not traded on the
      OTC  Bulletin  Board,  a day on which  the  Common  Stock is quoted in the
      over-the-counter  market as  reported  by the  National  Quotation  Bureau
      Incorporated  (or  any  similar  organization  or  agency  succeeding  its
      functions of reporting prices); provided,  however, that in the event that
      the  Common  Stock is not  listed  or  quoted  as set  forth in (a) or (b)
      hereof,  then Trading Day shall mean any day except  Saturday,  Sunday and
      any  day  which  shall  be a  legal  holiday  or a day  on  which  banking
      institutions in the State of New York are authorized or required by law or
      other government action to close.

            "Voting  Stock"  means,  as  applied  to the  Capital  Stock  of any
      corporation,  Capital Stock of any class or classes  (however  designated)
      having ordinary voting power for the election of a majority of the members
      of the Board of Directors (or other governing  body) of such  corporation,
      other than Capital Stock having such power only by reason of the happening
      of a contingency.

            "Warrants"  means  the  Warrants  issued  and sold  pursuant  to the
      Purchase Agreement,  including,  without limitation, this Warrant, and any
      other  warrants of like tenor issued in  substitution  or exchange for any
      thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or
      of any of such other Warrants.

            "Warrant  Price"  initially  means U.S.  $4.22, as such price may be
      adjusted from time to time as shall result from the adjustments  specified
      in this Warrant, including Section 4 hereto.

            "Warrant  Share Number"  means at any time the  aggregate  number of
      shares of Warrant Stock which may at such time be purchased  upon exercise
      of  this  Warrant,  after  giving  effect  to all  prior  adjustments  and
      increases  to such  number  made or  required  to be made  under the terms
      hereof.

            "Warrant  Stock" means Common Stock  issuable  upon  exercise of any
      Warrant or  Warrants  or  otherwise  issuable  pursuant  to any Warrant or
      Warrants.

9. Other Notices. In case at any time:

                  (A)   the Issuer shall make any  distributions  to the holders
                        of Common Stock; or

                  (B)   the Issuer shall  authorize  the granting to all holders
                        of its  Common  Stock  of  rights  to  subscribe  for or
                        purchase  any  shares of  Capital  Stock of any class or
                        other rights; or

                  (C)   there shall be any reclassification of the Capital Stock
                        of the Issuer; or

                  (D)   there shall be any capital reorganization by the Issuer;
                        or

                                      -16-
<PAGE>

                  (E)   there shall be any (i) consolidation or merger involving
                        the Issuer or (ii) sale,  transfer or other  disposition
                        of all or  substantially  all of the Issuer's  property,
                        assets   or   business   (except   a  merger   or  other
                        reorganization   in  which  the  Issuer   shall  be  the
                        surviving  corporation  and its shares of Capital  Stock
                        shall  continue  to be  outstanding  and  unchanged  and
                        except a consolidation,  merger, sale, transfer or other
                        disposition involving a wholly-owned Subsidiary); or

                  (F)   there shall be a voluntary or  involuntary  dissolution,
                        liquidation  or  winding-up of the Issuer or any partial
                        liquidation of the Issuer or  distribution to holders of
                        Common Stock;

then, in each of such cases,  the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer  shall close or a record  shall
be taken for such dividend,  distribution  or  subscription  rights or (ii) such
reorganization,    reclassification,    consolidation,    merger,   disposition,
dissolution,  liquidation or  winding-up,  as the case may be, shall take place.
Such notice also shall  specify the date as of which the holders of Common Stock
of record shall  participate  in such  dividend,  distribution  or  subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation, merger, disposition,  dissolution, liquidation
or  winding-up,  as the case may be. Such notice  shall be given at least twenty
(20) days prior to the action in question  and not less than ten (10) days prior
to the record date or the date on which the Issuer's  transfer  books are closed
in respect  thereto.  This Warrant  entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

      10. Amendment and Waiver.  Any term,  covenant,  agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  Number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 10 without the consent of the Holder of this  Warrant.
No consideration shall be offered or paid to any person to amend or consent to a
waiver  or  modification  of any  provision  of this  Warrant  unless  the  same
consideration is also offered to all holders of the Warrants.

      11.  Governing  Law;  Jurisdiction.  This Warrant shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving  effect to any of the conflicts of law  principles  which would result in
the  application of the substantive  law of another  jurisdiction.  This Warrant
shall not be  interpreted or construed  with any  presumption  against the party
causing this  Warrant to be drafted.  The Issuer and the Holder agree that venue
for any dispute  arising under this Warrant will lie exclusively in the state or
federal courts located in New York County, New York, and the parties irrevocably
waive any right to raise forum non  conveniens  or any other  argument  that New
York is not the proper venue. The Issuer and the Holder  irrevocably  consent to
personal  jurisdiction in the state and federal courts of the state of New York.
The  Issuer and the Holder  consent  to process  being  served in any such suit,
action or  proceeding  by mailing a copy thereof to such party at the address in
effect for notices to it under this Warrant and agrees that such  service  shall
constitute good and sufficient service of process and notice thereof. Nothing in
this  Section 11 shall  affect or limit any right to serve  process in any other
manner  permitted  by law.  The  Issuer  and the  Holder  hereby  agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
the this Warrant or the Purchase  Agreement,  shall be entitled to reimbursement
for  reasonable  legal fees from the  non-prevailing  party.  The parties hereby
waive all rights to a trial by jury.

                                      -17-
<PAGE>

      12.  Notices.  Any and all notices or other  communications  or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and  effective on the earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via  facsimile  at the  facsimile
telephone  number  specified  for notice prior to 5:00 p.m.,  eastern time, on a
Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or  communication  is delivered via facsimile at the facsimile  telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of  mailing,  if sent by  overnight  delivery  by a  nationally  recognized
overnight  courier  service  or (iv)  actual  receipt  by the party to whom such
notice is required to be given. The addresses for such  communications  shall be
with respect to the Holder of this Warrant or of Warrant  Stock issued  pursuant
hereto,  addressed to such Holder at its last known address or facsimile  number
appearing  on the books of the  Issuer  maintained  for such  purposes,  or with
respect to the Issuer, addressed to:

                                    Dolce Ventures Inc.

                                    _____________________

                                    _____________________

                                    Attention: ________________
                                    Tel. No.: (___) ___-____
                                    Fax No.: (___) ___-____

with copies (which copies
shall not constitute notice
to the Issuer) to:                  GUZOV OFSINK, LLC
                                    600 Madison Avenue, 14th Floor
                                    New York, New York 10022
                                    Attention:  Darren Ofsink
                                    Tel. No.:  (212) 371-8008, ext. 127
                                    Fax No.:  (212) 688-7273

                                      -18-
<PAGE>

Copies of notices to the Holder shall be sent to Kramer Levin Naftalis & Frankel
LLP,  1177  Avenue  of the  Americas,  New  York,  New  York  10036,  Attention:
Christopher S. Auguste, Tel. No.: (212) 715-9100,  Fax. No.: (212) 715-8000. Any
party  hereto may from time to time  change its address for notices by giving at
least ten (10) days written  notice of such  changed  address to the other party
hereto.

      13.  Warrant  Agent.  The Issuer may, by written  notice to each Holder of
this  Warrant,  appoint an agent having an office in New York,  New York for the
purpose  of issuing  shares of Warrant  Stock on the  exercise  of this  Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to  subsection  (d) of Section 2 hereof or replacing  this  Warrant  pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing,  and thereafter any
such  issuance,  exchange or  replacement,  as the case may be, shall be made at
such office by such agent.

      14. Remedies. The Issuer stipulates that the remedies at law of the Holder
of this Warrant in the event of any default or threatened  default by the Issuer
in the  performance  of or compliance  with any of the terms of this Warrant are
not and will not be adequate and that, to the fullest  extent  permitted by law,
such terms may be specifically enforced by a decree for the specific performance
of any agreement contained herein or by an injunction against a violation of any
of the terms hereof or otherwise.

      15.  Successors and Assigns.  This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the  successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant  Stock issued  pursuant  hereto,  and shall be  enforceable  by any such
Holder or Holder of Warrant Stock.

      16.  Modification and Severability.  If, in any action before any court or
agency  legally  empowered  to  enforce  any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

      17.  Registration  Rights.  The Holder of this  Warrant is entitled to the
benefit of certain  registration  rights  with  respect to the shares of Warrant
Stock  issuable  upon the  exercise of this  Warrant  pursuant  to that  certain
Registration Rights Agreement,  of even date herewith,  by and among the Company
and Persons listed on Schedule I thereto (the  "Registration  Rights Agreement")
and the registration rights with respect to the shares of Warrant Stock issuable
upon the exercise of this Warrant by any subsequent  Holder may only be assigned
in  accordance  with  the  terms  and  provisions  of the  Registrations  Rights
Agreement.

      18.  Headings.  The  headings  of the  Sections  of this  Warrant  are for
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -19-
<PAGE>

      IN WITNESS  WHEREOF,  the Issuer has executed  this Series C Warrant as of
the day and year first above written.

                                   DOLCE VENTURES INC.

                                   By:___________________________________
                                      Name:
                                      Title:

                                      -20-
<PAGE>

                                 EXERCISE FORM
                                SERIES C WARRANT

                               DOLCE VENTURES INC.

The  undersigned  _______________,  pursuant  to the  provisions  of the  within
Warrant,  hereby  elects to  purchase  _____  shares  of  Common  Stock of Dolce
Ventures Inc. covered by the within Warrant.

Dated: _________________            Signature  ___________________________

                                    Address    _____________________

                                               _____________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned
by the Holder on the date of Exercise: _________________________

                                   ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature  ___________________________

                                    Address    _____________________

                                               _____________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED,  _________________  hereby sells, assigns and transfers unto
__________________  the right to  purchase  _________  shares of  Warrant  Stock
evidenced  by the within  Warrant  together  with all rights  therein,  and does
irrevocably  constitute and appoint  ___________________,  attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature  ___________________________

                                    Address    _____________________

                                               _____________________

                          FOR USE BY THE ISSUER ONLY:

                                      -21-
<PAGE>

This Warrant No. W-___ canceled (or  transferred or exchanged) this _____ day of
___________,  _____,  shares  of Common  Stock  issued  therefor  in the name of
_______________,  Warrant No.  W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                      -22-

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