Document:

Exhibit
      4.4

     

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED
      UNTIL
      (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”) SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR
      (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS
      NOT
      REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH TRANSFER IN
      VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED
      UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY SHARES OF COMMON
      STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

     

    FORM
      OF

    WARRANT
      TO PURCHASE COMMON STOCK

     

    OF

     

    GVI
      SECURITY SOLUTIONS, INC.

     

    This
      is
      to certify that, FOR VALUE RECEIVED, W-NET, INC. or assigns (“Holder”), is
      entitled to purchase, subject to the provisions of this Warrant, from GVI
      SECURITY SOLUTIONS, INC., a Delaware corporation (the “Company”), Ninety Three
      Million Seven Hundred Fifty Thousand (93,750,000) fully paid, validly issued
      and
      nonassessable shares of common stock, $.001 par value, of the Company (“Common
      Stock”) at a price of $.004 per share at any time or from time to time during
      the five-year period (the “Exercise Period”) commencing on the Conversion Date
      (as defined below). The number of shares of Common Stock to be received upon
      the
      exercise of this Warrant and the price to be paid for each share of Common
      Stock
      may be adjusted from time to time as hereinafter set forth. The shares of Common
      Stock deliverable upon such exercise, and as adjusted from time to time, are
      hereinafter sometimes referred to as “Warrant Shares” and the exercise price of
      a share of Common Stock in effect at any time and as adjusted from time to
      time
      is hereinafter sometimes referred to as the “Exercise Price.” 

     

    (a) EXERCISE
      OF WARRANT; CANCELLATION OF WARRANT.

     

    (1) Following
      the Conversion Date, this Warrant may be exercised in whole or in part at any
      time or from time to time during the Exercise Period; provided, however, that
      if
      either such day is a day on which banking institutions in the State of New
      York
      are authorized by law to close, then on the next succeeding day which shall
      not
      be such a day. “Conversion Date” means the close of business on the date that
      the Company files with the Secretary of State of the State of Delaware an
      amendment to its Certificate of Incorporation increasing the authorized number
      of shares of Common Stock and/or effecting a reverse stock split of the Common
      Stock so that the Company has a sufficient number of authorized and unissued
      shares of Common Stock so as to permit the conversion of the Subordinated
      Convertible Promissory Notes dated the date hereof and issued by the Company
      in
      a private placement of up to an aggregate of $5,000,000 of such Notes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2) This
      Warrant may be exercised by presentation and surrender hereof to the Company
      at
      its principal office with the Purchase Form annexed hereto duly executed and
      accompanied by payment of the Exercise Price for the number of Warrant Shares
      specified in such form. As soon as practicable after each such exercise of
      this
      Warrant, but not later than seven (7) days following the receipt of good and
      available funds, the Company shall issue and deliver to the Holder a certificate
      or certificate for the Warrant Shares issuable upon such exercise, registered
      in
      the name of the Holder or its designee. If this Warrant should be exercised
      in
      part only, the Company shall, upon surrender of this Warrant for cancellation,
      execute and deliver a new Warrant evidencing the rights of the Holder thereof
      to
      purchase the balance of the Warrant Shares purchasable thereunder. Upon receipt
      by the Company of this Warrant at its office in proper form for exercise, the
      Holder shall be deemed to be the holder of record of the shares of Common Stock
      issuable upon such exercise, notwithstanding that the stock transfer books
      of
      the Company shall then be closed or that certificates representing such shares
      of Common Stock shall not then be physically delivered to the
      Holder.

     

    (3) At
      any
      time during the Exercise Period, the Holder may, at its option, exercise this
      Warrant on a cashless basis by exchanging this Warrant, in whole or in part
      (a
“Warrant Exchange”), into the number of Warrant Shares determined in accordance
      with this Section (a)(3), by surrendering this Warrant at the principal
      office of the Company or at the office of its stock transfer agent, accompanied
      by a notice stating such Holder’s intent to effect such exchange, the number of
      Warrant Shares to be exchanged and the date on which the Holder requests that
      such Warrant Exchange occur (the “Notice of Exchange”). The Warrant Exchange
      shall take place on the date specified in the Notice of Exchange or, if later,
      the date the Notice of Exchange is received by the Company (the “Exchange
      Date”). Certificates for the shares issuable upon such Warrant Exchange and, if
      applicable, a new warrant of like tenor evidencing the balance of the shares
      remaining subject to this Warrant, shall be issued as of the Exchange Date
      and
      delivered to the Holder within seven (7) days following the Exchange Date.
      In
      connection with any Warrant Exchange, this Warrant shall represent the right
      to
      subscribe for and acquire the number of Warrant Shares equal to (i) the
      number of Warrant Shares specified by the Holder in its Notice of Exchange
      (the
“Total Number”) less (ii) the number of Warrant Shares equal to the
      quotient obtained by dividing (A) the product of the Total Number and the
      existing Exercise Price by (B) the current market value of a share of
      Common Stock. Current market value shall have the meaning set forth
      Section (c) below, except that for purposes hereof, the date of exercise,
      as used in such Section (c), shall mean the Exchange Date.

     

    (b) RESERVATION
      OF SHARES.
      Following the Conversion Date, the Company shall at all times reserve for
      issuance and/or delivery upon exercise of this Warrant such number of shares
      of
      its Common Stock as shall be required for issuance and delivery upon exercise
      of
      the Warrants.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c) FRACTIONAL
      SHARES.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. With respect to any fraction of a share called
      for
      upon any exercise hereof, the Company shall pay to the Holder an amount in
      cash
      equal to such fraction multiplied by the current market value of the shares
      of
      Common Stock, determined as follows:

     

    (1) If
      the
      Common Stock is listed on a national securities exchange or admitted to unlisted
      trading privileges on such exchange or listed for trading on the NASDAQ Global
      Select Market or the NASDAQ Global Market, the current market value shall be
      the
      last reported sale price of the Common Stock on such exchange or market on
      the
      last business day prior to the date of exercise of this Warrant or if no such
      sale is made on such day, the average of the closing bid and asked prices for
      such day on such exchange or market; or

     

    (2) If
      the
      Common Stock is not so listed or admitted to unlisted trading privileges, but
      is
      traded on the NASDAQ Capital Market, the current market value shall be the
      average of the closing bid and asked prices for such day on such market and
      if
      the Common Stock is not so traded, the current market value shall be the mean
      of
      the last reported bid and asked prices reported by the NASD OTC Bulletin Board
      or the Pink Sheets, LLC, as applicable, on the last business day prior to the
      date of the exercise of this Warrant; or

     

    (3) If
      the
      Common Stock is not so listed or admitted to unlisted trading privileges and
      bid
      and asked prices are not so reported, the current market value shall be an
      amount, not less than book value thereof as at the end of the most recent fiscal
      year of the Company ending prior to the date of the exercise of the Warrant,
      determined in such reasonable manner as may be prescribed by the Board of
      Directors of the Company.

     

    (d) EXCHANGE,
      TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.
      This
      Warrant is exchangeable, without expense, at the option of the Holder, upon
      presentation and surrender hereof to the Company or at the office of its stock
      transfer agent, if any, for other warrants of different denominations entitling
      the holder thereof to purchase in the aggregate the same number of shares of
      Common Stock purchasable hereunder. Upon surrender of this Warrant to the
      Company at its principal office or at the office of its stock transfer agent,
      if
      any, with the Assignment Form annexed hereto duly executed and funds sufficient
      to pay any transfer tax, the Company shall, without charge, execute and deliver
      a new Warrant in the name of the assignee named in such instrument of assignment
      and this Warrant shall promptly be cancelled. This Warrant may be divided or
      combined with other warrants which carry the same rights upon presentation
      hereof at the principal office of the Company or at the office of its stock
      transfer agent, if any, together with a written notice specifying the names
      and
      denominations in which new Warrants are to be issued and signed by the Holder
      hereof. The term “Warrant” as used herein includes any Warrants into which this
      Warrant may be divided or exchanged. Upon receipt by the Company of evidence
      satisfactory to it of the loss, theft, destruction or mutilation of this
      Warrant, and (in the case of loss, theft or destruction) of reasonably
      satisfactory indemnification, and upon surrender and cancellation of this
      Warrant, if mutilated, the Company will execute and deliver a new Warrant of
      like tenor and date. Any such new Warrant executed and delivered shall
      constitute an additional contractual obligation on the part of the Company,
      whether or not this Warrant so lost, stolen, destroyed, or mutilated shall
      be at
      any time enforceable by anyone.

     

    (e) RIGHTS
      OF THE HOLDER.
      The
      Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
      in the Company, either at law or equity, and the rights of the Holder are
      limited to those expressed in the Warrant and are not enforceable against the
      Company except to the extent set forth herein.

     

    
      
        
        

      

      
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    (f) ANTI-DILUTION
      PROVISIONS.
      The
      Exercise Price in effect at any time and the number and kind of securities
      purchasable upon the exercise of the Warrants shall be subject to adjustment
      from time to time upon the happening of certain events as follows:

     

    (1) In
      case
      the Company shall hereafter (i) declare a dividend or make a distribution
      on its outstanding shares of Common Stock in shares of Common Stock,
      (ii) subdivide or reclassify its outstanding shares of Common Stock into a
      greater number of shares, or (iii) combine or reclassify its outstanding
      shares of Common Stock into a smaller number of shares, the Exercise Price
      in
      effect at the time of the record date for such dividend or distribution or
      of
      the effective date of such subdivision, combination or reclassification shall
      be
      adjusted so that it shall equal the price determined by multiplying the Exercise
      Price by a fraction, the denominator of which shall be the number of shares
      of
      Common Stock outstanding after giving effect to such action, and the numerator
      of which shall be the number of shares of Common Stock outstanding immediately
      prior to such action. Such adjustment shall be made successively whenever any
      event listed above shall occur.

     

    (2) Whenever
      the Exercise Price payable upon exercise of each Warrant is adjusted pursuant
      to
      Subsection (1) above, the number of Warrant Shares purchasable upon
      exercise of this Warrant shall simultaneously be adjusted by multiplying the
      number of Warrant Shares initially issuable upon exercise of this Warrant by
      the
      Exercise Price in effect on the date hereof and dividing the product so obtained
      by the Exercise Price, as adjusted.

     

    (3) No
      adjustment in the Exercise Price shall be required unless such adjustment would
      require an increase or decrease of at least two cents ($0.02) in such price;
      provided, however, that any adjustments which by reason of this
      Subsection (3) are not required to be made shall be carried forward and
      taken into account in any subsequent adjustment required to be made hereunder.
      All calculations under this Section (f) shall be made to the nearest cent
      or to the nearest one-hundredth of a share, as the case may be. Anything in
      this
      Section (f) to the contrary notwithstanding, the Company shall be entitled,
      but shall not be required, to make such changes in the Exercise Price, in
      addition to those required by this Section (f), as it shall determine, in
      its sole discretion, to be advisable in order that any dividend or distribution
      in shares of Common Stock, or any subdivision, reclassification or combination
      of Common Stock, hereafter made by the Company shall not result in any Federal
      income tax liability to the holders of Common Stock or securities convertible
      into Common Stock (including Warrants).

     

    (4) In
      the
      event that at any time, as a result of an adjustment made pursuant to
      Subsection (1) above, the Holder of this Warrant thereafter shall become
      entitled to receive any shares of the Company, other than Common Stock,
      thereafter the number of such other shares so receivable upon exercise of this
      Warrant shall be subject to adjustment from time to time in a manner and on
      terms as nearly equivalent as practicable to the provisions with respect to
      the
      Common Stock contained in Subsections (1) to  (4) inclusive
      above.

     

    
      
        
        

      

      
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    (5) Irrespective
      of any adjustments in the Exercise Price or the number or kind of shares
      purchasable upon exercise of this Warrant, Warrants theretofore or thereafter
      issued may continue to express the same price and number and kind of shares
      as
      are stated in the similar Warrants initially issuable pursuant to this
      Agreement.

     

    (g) NOTICES
      TO WARRANT HOLDERS.
      So long
      as this Warrant shall be outstanding, (i) if the Company shall pay any
      dividend or make any distribution upon the Common Stock or (ii) if the
      Company shall offer to the holders of Common Stock for subscription or purchase
      by them any share of any class or any other rights or (iii) if any capital
      reorganization of the Company, reclassification of the capital stock of the
      Company, consolidation or merger of the Company with or into another
      corporation, sale, lease or transfer of all or substantially all of the property
      and assets of the Company to another corporation, or voluntary or involuntary
      dissolution, liquidation or winding up of the Company shall be effected, then
      in
      any such case, the Company shall cause to be mailed by certified mail to the
      Holder, at least fifteen days prior the date specified in (x) or
      (y) below, as the case may be, a notice containing a brief description of
      the proposed action and stating the date on which (x) a record is to be
      taken for the purpose of such dividend, distribution or rights, or (y) such
      reclassification, reorganization, consolidation, merger, conveyance, lease,
      dissolution, liquidation or winding up is to take place and the date, if any
      is
      to be fixed, as of which the holders of Common Stock or other securities shall
      receive cash or other property deliverable upon such reclassification,
      reorganization, consolidation, merger, conveyance, dissolution, liquidation
      or
      winding up.

     

    (h) RECLASSIFICATION,
      REORGANIZATION OR MERGER.
      In case
      of any reclassification, capital reorganization or other change of outstanding
      shares of Common Stock of the Company, or in case of any consolidation or merger
      of the Company with or into another corporation (other than a merger with a
      subsidiary in which merger the Company is the continuing corporation and which
      does not result in any reclassification, capital reorganization or other change
      of outstanding shares of Common Stock of the class issuable upon exercise of
      this Warrant) or in case of any sale, lease or conveyance to another corporation
      of the property of the Company as an entirety, the Company shall, as a condition
      precedent to such transaction, cause effective provisions to be made so that
      the
      Holder shall have the right thereafter by exercising this Warrant at any time
      prior to the expiration of the Warrant, to purchase the kind and amount of
      shares of stock and other securities and property receivable upon such
      reclassification, capital reorganization and other change, consolidation,
      merger, sale or conveyance by a holder of the number of shares of Common Stock
      which might have been purchased upon exercise of this Warrant immediately prior
      to such reclassification, change, consolidation, merger, sale or conveyance.
      Any
      such provision shall include provision for adjustments which shall be as nearly
      equivalent as may be practicable to the adjustments provided for in this
      Warrant. The foregoing provisions of this Section (h) shall similarly apply
      to successive reclassifications, capital reorganizations and changes of shares
      of Common Stock and to successive consolidations, mergers, sales or conveyances.
      In the event that in connection with any such capital reorganization or
      reclassification, consolidation, merger, sale or conveyance, additional shares
      of Common Stock shall be issued in exchange, conversion, substitution or
      payment, in whole or in part, for a security of the Company other than Common
      Stock, any such issue shall be treated as an issue of Common Stock covered
      by
      the provisions of Subsection (1) of Section (f) hereof.

     

    
      
        
        

      

      
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    (i) REGISTRATION
      UNDER THE SECURITIES ACT OF 1933. The
      Company agrees to register the Warrant Shares for resale under the Securities
      Act of 1933, as amended on the terms and subject to the conditions set forth
      in
      Article IV of the Subscription Agreement between the Company and each of the
      investors in the Company’s private placement of 6% Subordinated Secured
      Convertible Promissory Notes of the Company.

     

    
      	 	 	 
	 	GVI SECURITY SOLUTIONS, INC.
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Name: Steven
              Walin
	 	
              Title:
                Chief Executive Officer 

            

    

     

    Dated:
      as
      of October__, 2006

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    PURCHASE
      FORM

     

    Dated:
      ________________________

     

    The
      undersigned hereby irrevocably elects to exercise the within Warrant to the
      extent of purchasing _________
      shares
      of Common Stock and hereby makes payment of _________
      in
      payment of the actual exercise price thereof.

    

    INSTRUCTIONS
      FOR REGISTRATION OF STOCK

     

    Name:
      ___________________________ 

    (Please
      typewrite or print in block letters)

     

    Address:
      __________________________

     

    Signature:
      _________________________

     

    ASSIGNMENT
      FORM

     

    FOR
      VALUE
      RECEIVED, _____________________________ hereby
      sells, assigns and transfers unto

     

    Name:
      ___________________________ 

    (Please
      typewrite or print in block letters)

     

    Address:
      __________________________

     

    the
      right
      to purchase Common Stock represented by this Warrant to the extent
      of _______
      shares
      as to which such right is exercisable and does hereby irrevocably constitute
      and
      appoint  
      Attorney, to transfer the same on the books of the Company with full power
      of
      substitution in the premises.

     

    Date:_____________________________

     

    Signature:_________________________Exhibit
      4.5

     

    SUBORDINATION
      AGREEMENT

     

    This
      Subordination Agreement (this “Agreement”) is entered into as of the
      4th
      day of
      October, 2006, by and among the holders (the “Holders”) of the Notes (as defined
      below), W-net, Inc., California corporation, as collateral agent for the Holders
      (such collateral agent, together with the Holders, are collectively referred
      to
      herein as the “Subordinated Lenders” and each, a “Subordinated Lender”), and
      Laurus Master Fund, Ltd. (the “Senior Lender”). Unless otherwise defined herein,
      capitalized terms used herein shall have the meaning provided such terms in
      the
      Securities Purchase Agreement and Security Agreement referred to
      below.

     

    BACKGROUND

     

    WHEREAS,
      the Senior Lender has made loans to GVI Security Solutions, Inc.,
      a
      Delaware corporation (the “Company”) pursuant to, and in accordance with, (i)
      that certain Securities Purchase Agreement dated as May 27, 2004 by and between
      the Company and Senior Lender (as amended, modified or supplemented from time
      to
      time, the "Securities Purchase Agreement"), (ii) the Related Agreements referred
      to in the Securities Purchase Agreement, (iii) that certain Security Agreement
      dated as of May 27, 2004 by and between the Company and Senior Lender (as
      amended, modified or supplemented from time to time, the "Security Agreement")
      and (iv) the Ancillary Agreements referred to in the Security
      Agreement.

     

    WHEREAS,
      the Subordinated Lenders have made or will make loans to the Company evidenced
      by 6% Subordinated Secured Convertible Promissory Notes of the Company dated
      as
      of the date hereof (the “Notes”).

     

    NOW,
      THEREFORE, each Subordinated Lender and the Senior Lender agree as
      follows:

     

    TERMS

     

    1. All
      obligations of the Company and/or any of its Subsidiaries to the Senior Lender,
      howsoever created, arising or evidenced, whether direct or indirect, absolute
      or
      contingent or now or hereafter existing, or due or to become due are referred
      to
      as “Senior Liabilities”. Any and all loans made by the Subordinated Lenders to
      the Company and/or any of its Subsidiaries, together with all other obligations
      (whether monetary or otherwise) of the Company and/or any of its Subsidiaries
      to
      any Subordinated Lender arising under or in connection with the Notes or any
      other agreement or instrument entered into in connection therewith (in each
      case, including any interest, fees or penalties related thereto), howsoever
      created, arising or evidenced, whether direct or indirect, absolute or
      contingent or now or hereafter existing, or due or to become due are referred
      to
      as “Junior Liabilities”. It is expressly understood and agreed that the term
“Senior Liabilities”, as used in this Agreement, shall include, without
      limitation, any and all interest, fees and penalties accruing on any of the
      Senior Liabilities after the commencement of any proceedings referred to in
      paragraph 4 of this Agreement, notwithstanding any provision or rule of law
      which might restrict the rights of the Senior Lender, as against the Company,
      its Subsidiaries or anyone else, to collect such interest, fees or penalties,
      as
      the case may be.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2. Except
      as
      expressly otherwise provided in this Agreement or as the Senior Lender may
      otherwise expressly consent in writing, the payment of the Junior Liabilities
      shall be postponed and subordinated in right of payment and priority to the
      payment in full of all Senior Liabilities. Furthermore, whether directly or
      indirectly, no payments or other distributions whatsoever in respect of any
      Junior Liabilities shall be made (whether at stated maturity, by acceleration
      or
      otherwise), nor shall any property or assets of the Company or any of its
      Subsidiaries be applied to the purchase or other acquisition or retirement
      of
      any Junior Liability until such time as the Senior Liabilities have been
      indefeasibly paid in full. Notwithstanding anything to the contrary contained
      in
      this paragraph 2 or elsewhere in this Agreement, the Company and its
      Subsidiaries may make regularly scheduled principal and interest payments
      (including, without limitation, payment in full on the Maturity Date, as such
      term is defined in the Notes), to the Subordinated Lenders with respect to
      the
      Junior Liabilities, so long as (i) no Event of Default has occurred and is
      continuing at the time of any such payment or after giving effect to such
      payment and (ii) the amount of such regularly scheduled principal payments
      and
      the rate of interest, in each case, with respect to the Junior Liabilities
      is
      not increased from that in effect on the date hereof.

     

    3. Each
      Subordinated Lender hereby subordinates all claims and security interests it
      may
      have against, or with respect to, any of the assets of the Company and/or any
      of
      its Subsidiaries (the “Subordinated Lender Liens”), to the security interests
      granted by the Company and/or any of its Subsidiaries to the Senior Lender
      in
      respect of the Senior Liabilities. The Senior Lender shall not owe any duty
      to
      any Subordinated Lender as a result of or in connection with any Subordinated
      Lender Liens, including without limitation any marshalling of assets or
      protection of the rights or interests of any Subordinated Lender. The Senior
      Lender shall have the exclusive right to manage, perform and enforce the
      underlying terms of the Security Agreement, the Ancillary Agreements and each
      other document, instrument and agreement executed from time to time in
      connection therewith (collectively, the “Security Agreements”) relating to the
      assets of the Company and its Subsidiaries and to exercise and enforce its
      rights according to its discretion. Each Subordinated Lender waives all rights
      to affect the method or challenge the appropriateness of any action taken by
      the
      Senior Lender in connection with the Senior Lender’s enforcement of its rights
      under the Security Agreements. Only the Senior Lender shall have the right
      to
      restrict permit, approve or disapprove the sale, transfer or other disposition
      of the assets of the Company or any of its Subsidiaries. As between the Senior
      Lender and each Subordinated Lender, the terms of this Agreement shall govern
      even if all or part of the Senior Lender’s liens are avoided, disallowed, set
      aside or otherwise invalidated.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    4. In
      the
      event of any dissolution, winding up, liquidation, readjustment, reorganization
      or other similar proceedings relating to the Company and/or any of its
      Subsidiaries or to its creditors, as such, or to its property (whether voluntary
      or involuntary, partial or complete, and whether in bankruptcy, insolvency
      or
      receivership, or upon an assignment for the benefit of creditors, or any other
      marshalling of the assets and liabilities of the Company and/or any of its
      Subsidiaries, or any sale of all or substantially all of the assets of the
      Company and/or any of its Subsidiaries, or otherwise), the Senior Liabilities
      shall first be paid in full before any Subordinated Lender shall be entitled
      to
      receive and to retain any payment, distribution, other rights or benefits in
      respect of any Junior Liability. In order to enable the Senior Lender to enforce
      its rights hereunder in any such action or proceeding, the Senior Lender is
      hereby irrevocably authorized and empowered in its discretion as attorney in
      fact for each Subordinated Lender to make and present for and on behalf of
      such
      Subordinated Lender such proofs of claims against the Company and/or its
      Subsidiaries as Senior Lender may deem expedient or proper and to vote such
      proofs of claims in any such proceeding and to receive and collect any and
      all
      dividends or other payments or disbursements made thereon in whatever form
      the
      same may be paid or issued and to apply same on account of any the Senior
      Liabilities. In the event, prior to indefeasible payment in full of the Senior
      Liabilities, any Subordinated Lender shall receive any payment in respect of
      the
      Junior Liabilities and/or in connection with the enforcement of such
      Subordinated Lender’s rights and remedies against the Company and/or any of its
      Subsidiaries, whether arising in connection with the Junior Liabilities or
      otherwise, then such Subordinated Lender shall forthwith deliver, or cause
      to be
      delivered, the same to the Senior Lender in precisely the form held by such
      Subordinated Lender (except for any necessary endorsement) and until so
      delivered the same shall be held in trust by such Subordinated Lender as the
      property of the Senior Lender.

     

    5. Each
      Subordinated Lender will mark its/his books and records so as to clearly
      indicate that its/his respective Junior Liabilities are subordinated in
      accordance with the terms of this Agreement. Each Subordinated Lender will
      execute such further documents or instruments and take such further action
      as
      the Senior Lender may reasonably request from time to time to carry out the
      intent of this Agreement.

     

    6. Each
      Subordinated Lender hereby waives all diligence in collection or protection
      of
      or realization upon the Senior Liabilities or any security for the Senior
      Liabilities.

     

    7. No
      Subordinated Lender will without providing the Senior Lender with 180-days
      prior
      written notice: (a) attempt to enforce or collect any Junior Liability or any
      rights in respect of any Junior Liability; or (b) commence, or join with
      any other creditor in commencing, any bankruptcy, reorganization or insolvency
      proceedings with respect to the Company and/or any of its
      Subsidiaries.

     

    8. The
      Senior Lender may, from time to time, at its sole discretion and without notice
      to any Subordinated Lender, take any or all of the following actions: (a) retain
      or obtain a security interest in any property to secure any of the Senior
      Liabilities; (b) retain or obtain the primary or secondary obligation of any
      other obligor or obligors with respect to any of the Senior Liabilities; (c)
      extend or renew for one or more periods (whether or not longer than the original
      period), alter, increase or exchange any of the Senior Liabilities, or release
      or compromise any obligation of any nature of any obligor with respect to any
      of
      the Senior Liabilities; and (d) release its security interest in, or surrender,
      release or permit any substitution or exchange for, all or any part of any
      property securing any of the Senior Liabilities, or extend or renew for one
      or
      more periods (whether or not longer than the original period) or release,
      compromise, alter or exchange any obligations of any nature of any obligor
      with
      respect to any such property.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    9. The
      Senior Lender may, from time to time, whether before or after any discontinuance
      of this Agreement, without notice to any Subordinated Lender, assign or transfer
      any or all of the Senior Liabilities or any interest in the Senior Liabilities;
      and, notwithstanding any such assignment or transfer or any subsequent
      assignment or transfer of the Senior Liabilities, such Senior Liabilities shall
      be and remain Senior Liabilities for the purposes of this Agreement, and every
      immediate and successive assignee or transferee of any of the Senior Liabilities
      or of any interest in the Senior Liabilities shall, to the extent of the
      interest of such assignee or transferee in the Senior Liabilities, be entitled
      to the benefits of this Agreement to the same extent as if such assignee or
      transferee were the Senior Lender, as applicable; provided, however, that,
      unless the Senior Lender shall otherwise consent in writing, the Senior Lender
      shall have an unimpaired right, prior and superior to that of any such assignee
      or transferee, to enforce this Agreement, for the benefit of the Senior Lender,
      as to those of the Senior Liabilities which the Senior Lender has not assigned
      or transferred.

     

    10. The
      Senior Lender shall not be prejudiced in its rights under this Agreement by
      any
      act or failure to act of any Subordinated Lender, or any noncompliance of any
      Subordinated Lender with any agreement or obligation, regardless of any
      knowledge thereof which the Senior Lender may have or with which the Senior
      Lender may be charged; and no action of the Senior Lender permitted under this
      Agreement shall in any way affect or impair the rights of the Senior Lender
      and
      the obligations of any Subordinated Lender under this Agreement.

     

    11. No
      delay
      on the part of the Senior Lender in the exercise of any right or remedy shall
      operate as a waiver of such right or remedy, and no single or partial exercise
      by the Senior Lender of any right or remedy shall preclude other or further
      exercise of such right or remedy or the exercise of any other right or remedy;
      nor shall any modification or waiver of any of the provisions of this Agreement
      be binding upon the Senior Lender except as expressly set forth in a writing
      duly signed and delivered on behalf of the Senior Lender. For the purposes
      of
      this Agreement, Senior Liabilities shall have the meaning set forth in Section
      1
      above, notwithstanding any right or power of any Subordinated Lender or anyone
      else to assert any claim or defense as to the invalidity or unenforceability
      of
      any such obligation, and no such claim or defense shall affect or impair the
      agreements and obligations of any Subordinated Lender under this
      Agreement.

     

    12. This
      Agreement shall continue in full force and effect after the filing of any
      petition (“Petition”)
      by or
      against the Company and/or any of its Subsidiaries under the United States
      Bankruptcy Code (the “Code”)
      and
      all converted or succeeding cases in respect thereof. All references herein
      to
      the Company and/or Subsidiary shall be deemed to apply to the Company and such
      Subsidiary as debtor-in-possession and to a trustee for the Company and/or
      such
      Subsidiary. If the Company or any of its Subsidiaries shall become subject
      to a
      proceeding under the Code, and if the Senior Lender shall desire to permit
      the
      use of cash collateral or to provide post-Petition financing from the Senior
      Lender to the Company or any such Subsidiary under the Code, each Subordinated
      Lender agrees as follows: (1) adequate notice to such Subordinated Lender shall
      be deemed to have been provided for such consent or post-Petition financing
      if
      such Subordinated Lender receives notice thereof three (3) business days (or
      such shorter notice as is given to the Senior Lender) prior to the earlier
      of
      (a) any hearing on a request to approve such post-petition financing or (b)
      the
      date of entry of an order approving same and (2) no objection will be raised
      by
      any Subordinated Lender to any such use of cash collateral or such post-Petition
      financing from the Senior Lender.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    13. This
      Agreement shall be binding upon each Subordinated Lender and upon the heirs,
      legal representatives, successors and assigns of each Subordinated Lender and
      the successors and assigns of any Subordinated Lender.

     

    14. This
      Agreement shall be construed in accordance with and governed by the laws of
      New
      York without regard to conflict of laws provisions. Wherever possible each
      provision of this Agreement shall be interpreted in such manner as to be
      effective and valid under applicable law, but if any provision of this Agreement
      shall be prohibited by or invalid under such law, such provision shall be
      ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions of
      this
      Agreement.

     

    [signature
      page follows]

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been made and delivered this __ day of
      October 2006.

     

    
      	 	 	 
	 	W-NET,
              INC. 
              as
                Collateral Agent for the Holders

            
	 
 	 
 	
               

            
	 	By:  	 
	 	
              
Name:
 David
              Weiner
	 	
              Title: 

            

    
      	 	 	 
	 	
              SENIOR
                LENDER:

              LAURUS
                MASTER FUND, LTD.

            
	 
 	 
 	
               

            
	 	By:  	 
	 	
              
Name:
	 	
              Title:

            

     

    Acknowledged
      and Agreed to by:

     

    
      	GVI SECURITY SOLUTIONS, INC.	 	 	 
	 	 	 	 
	By:	 	 	 
	
              
                

              

              Name:
                Steven Walin

            	 	 	
            
	Title:
              Chief
              Executive Officer 	 	 	 

    

     

    [Additional
      Signature Pages Follow]

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    Additional
      Signature page to Subordination Agreement

     

    
      	 	 	 
	 	SUBORDINATED
              LENDERS:
	 
 	 
 	 
 
	
              For
                Entity: 

            	 	 
	 	
              

              [Print
                Name of Entity]

            
	 	 
	
               By: 

            	 
	 	
              

              Name:

            
	 	
              Title:

            

    

     

    
      	 	 	 
	
              
                For
                  Individual:

              

            	 	 
	 	
              

              
                [Signature
                  of Individual]

              

            
	 	 
	
               

            	 
	 	
              

              
                [Print
                  Name of Individual]

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