Document:

GVI SECURITY SOLUTIONS, INC.
                             SUBSCRIPTION AGREEMENT

      SUBSCRIPTION AGREEMENT made as of this 29th day of October, 2004 between
GVI Security Solutions, Inc., a Delaware corporation (the "Company"), and
___________________ (the "Subscriber").

      WHEREAS, the Company desires to issue up to 40 units (the "Bridge Units")
in a private placement (this "Offering"), each Unit consisting of $50,000
principal amount of 12% Subordinated Secured Convertible Promissory Notes (the
"Notes") in the form attached as Exhibit A hereto and warrants (the "Warrants")
to purchase 33,333 shares of the common stock, par value $.001 per share of the
Company (subject to adjustment as provided in the Warrants) in the form attached
as Exhibit B hereto on the terms and conditions hereinafter set forth and the
Subscriber desires to acquire the number of Bridge Units set forth on the
signature page hereof; and

      WHEREAS, the Notes will be (i) secured by the assets of the Company
pursuant to a Security Agreement in the form of Exhibit C (the "Security
Agreement"), between the Company and W-net, Inc. as collateral agent (the
"Agent") for the subscribers in the Offering, and (ii) subordinated to the
Company's obligations to Laurus Master Fund Ltd. ("Laurus") pursuant to a
Subordination Agreement in the form of Exhibit D hereto, between Laurus, the
Company and the subscribers in the Offering; and

      WHEREAS, the subscribers in the offering will appoint the Agent to act as
collateral agent for such subscribers under the Security Agreement pursuant to
the Agency Appointment Agreement in form of Exhibit E hereto.

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

      I.    SUBSCRIPTION FOR BRIDGE UNITS AND REPRESENTATIONS BY AND COVENANTS
            OF SUBSCRIBER

            1.1 Subject to the terms and conditions hereinafter set forth, the
Subscriber hereby subscribes for and agrees to purchase from the Company such
number of Bridge Units as is set forth upon the signature page hereof at a price
equal to $50,000 per Bridge Unit, and the Company agrees to sell such Bridge
Units to the Subscriber for said purchase price. The Company will pay the
Subscriber a closing fee equal to one percent (1%) of the purchase price
hereunder (the "Closing Fee"). The purchase price for the Bridge Units (less the
Closing Fee) is payable by delivery of a certified or bank check made payable to
the Company, or by wire transfer to an account designated by the Company,
contemporaneously with the execution and delivery of this Subscription
Agreement. The Notes and Warrants will be delivered by the Company within five
days following the consummation of this Offering.

            1.2 The Subscriber recognizes that the purchase of Bridge Units
involves a high degree of risk in that (i) an investment in the Company is
highly speculative and only investors who can afford the loss of their entire
investment should consider investing in the Company and the Bridge Units; (ii)
he may not be able to liquidate his investment; (iii) transferability of the
securities comprising the Bridge Units is extremely limited; and (iv) the
Company will be unable to repay the Notes without obtaining additional
financing.
<PAGE>

            1.3 The Subscriber represents and warrants that it is an "accredited
investor" as such term in defined in Rule 501 of Regulation D promulgated under
the Securities Act of 1933, as amended (the "Securities Act"), and that it is
able to bear the economic risk of an investment in the Bridge Units.

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

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

            1.6 The Subscriber acknowledges that this Offering may involve tax
consequences, including, but not limited to, the possible need to recognize
interest income relating to the Warrants and that the Company has not provided
tax advice or information to the Subscriber. The Subscriber acknowledges that it
must retain his own professional advisors to evaluate the tax and other
consequences of an investment in the Bridge Units.

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

            1.8 The Subscriber understands that there is no public market for
the Notes or the Warrants. The Subscriber understands that Rule 144 (the "Rule")
promulgated under the Securities Act requires, among other conditions, a one
year holding period prior to the resale (in limited amounts) of securities
acquired in a non-public offering without having to satisfy the registration
requirements under the Securities Act. The Subscriber understands that the
Company is currently a reporting company but makes no representation or warranty
regarding its fulfillment in the future of any reporting requirements under the
Securities Exchange Act of 1934, as amended, or its dissemination to the public
of any current financial or other information concerning the Company, as is
required by the Rule as one of the conditions of its availability. The
Subscriber agrees that the Company may, if it desires, permit the transfer of
the Notes, the shares of Common Stock issuable upon conversion of the Notes (the
"Conversion Shares"), the Warrants or the shares of Common Stock issuable upon
exercise of the Warrants (the "Warrant Shares" and, together with the Notes,
Conversion Shares and Warrants, the "Securities") out of his name only when his
request for transfer is accompanied by an opinion of counsel reasonably
satisfactory to the Company that neither the sale nor the proposed transfer
results in a violation of the Securities Act or any applicable state "blue sky"
laws.
<PAGE>

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

      II.   REPRESENTATIONS BY THE COMPANY

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

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

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

                  (c) The Notes and Warrants have been duly and validly
authorized, and when issued and paid for in accordance with the terms hereof,
will be valid and binding obligations of the Company enforceable in accordance
with its terms.

      III.  REGISTRATION RIGHTS

            3.1 (a) If the Company shall determine to proceed with the actual
preparation and filing of a registration statement under the Securities Act
during the two-year period commencing on the date hereof in connection with the
proposed offer and sale of any of its securities by it or any of its security
holders (other than a registration statement on Form S-4, S-8 or other limited
purpose form), then the Company will give 20 days prior written notice of its
determination to all holders of the Securities (the "Holders"). Upon the written
request from any Holder, the Company will, except as herein provided, cause all
Conversion Shares and Warrant Shares (collectively, "Registrable Securities") to
be included in such registration statement, all to the extent requisite to
permit the sale or other disposition by the prospective seller or sellers of the
Registrable Securities to be so registered; provided, further, that nothing
herein shall prevent the Company from, at any time, abandoning, delaying,
suspending or withdrawing any registration. If any registration pursuant to this
Section 3.1(a) shall be underwritten in whole or in part, the Company may
require that the Registrable Securities requested for inclusion by the Holders
be included in the underwriting on the same terms and conditions as the
securities otherwise being sold through the underwriters. The obligation of the
Company under this Section 3.1(a) is limited to two registration statements. If
in the good faith judgment of the managing underwriter of such public offering
the inclusion of all of the Registrable Securities originally covered by a
request for registration (the "Requested Stock") would reduce the number of
shares to be offered by the Company or interfere with the successful marketing
of the shares of stock offered by the Company, the number of shares of Requested
Stock otherwise to be included in the underwritten public offering may be
reduced pro rata (by number of shares) among the holders thereof requesting such
registration or excluded in their entirety if so required by the underwriter. To
the extent only a portion of the Requested Stock is included in the underwritten
public offering, those shares of Requested Stock which are thus excluded from
the underwritten public offering shall be withheld from the market by the
holders thereof for a period which the managing underwriter reasonably
determines is necessary in order to effect the underwritten public offering. The
Holder may, at its option, request the registration of the Registrable
Securities in a registration statement made by the Company as contemplated by
3.1(a) prior to the acquisition of the Registrable Securities upon conversion of
the Note and exercise of the Warrant even though the Holder has not given notice
of conversion of the Note or exercise of the Warrant, as applicable.
<PAGE>

            (b) Upon written request (the "Demand Notice"), delivered any time
after April 29, 2005, from Holders representing beneficial ownership of an
aggregate of more than 50% of the Registrable Securities, the Company shall no
later than 30 days after receipt of the Demand Notice (the "Filing Deadline"),
prepare and file with the SEC a registration statement under the Securities Act
covering the resale of all of the Registrable Securities which are the subject
of such request and shall use its best efforts to cause such registration
statement to be declared effective by the SEC within ninety days after the
Filing Deadline (the "Required Effective Date"). In addition, upon receipt of
the Demand Notice, the Company shall promptly give written notice to the other
Holders not a party to the Demand Notice that such registration is to be
effected. The Company shall include in such registration statement the
Registrable Securities for which it has received written requests to register by
such other Holders within 15 days after the delivery of the Company's written
notice to such other Holders.

            (c) In the event that (A) the registration statement under Section
3.1(b) is not filed by the Filing Deadline or (B) a registration statement filed
under either Section 3.1(a) or (b) is not declared effective by the Required
Effective Date, the Company shall pay to each Holder (except for any Holder
whose failure to provide information as required hereunder causes a delay in
filing or obtaining effectiveness) liquidated damages at a rate equal to one
percent (1%) per month (pro rata on a 30-day basis) of the total purchase price
of the Bridge Units purchased by such Holder for the period that the
registration statement is not (A) filed with the SEC on or before the Filing
Deadline or (B) declared effective by the SEC following Required Effective Date.
Such liquidated damages shall be payable in cash within ten (10) days of the end
of each one (1) month anniversary of the Required Filing Date or Required
Effective Date, as the case may be.

      3.2 The Company will, until such time as the Registrable Securities may be
sold under Rule 144 without volume limitation:

            (i) furnish to the Holders participating in such registration and to
      the underwriters of the securities being registered such reasonable number
      of copies of the registration statement, preliminary prospectus, final
      prospectus and such other documents as such underwriters may reasonably
      request in order to facilitate the public offering of such securities;
<PAGE>

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

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

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

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

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

      3.3 All fees, costs and expenses of and incidental to the registrations
pursuant to Sections 3.1 shall be borne by the Company, provided, however, that
the Holders shall bear their pro rata share of the underwriting discount and
commissions and transfer taxes. The fees, costs and expenses of registration to
be borne by the Company as provided above shall include, without limitation, all
registration, filing, and NASD fees, printing expenses, fees and disbursements
of counsel and accountants for the Company, and all legal fees and disbursements
and other expenses of complying with state securities or blue sky laws of any
jurisdictions in which the securities to be offered are to be registered and
qualified (except as provided above). Fees and disbursements of counsel and
accountants for the Holders and any other expenses incurred by the Holders not
expressly included above shall be borne by the Holders.

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

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

      3.6 Promptly after receipt by an indemnified party pursuant to the
provisions of Sections 3.4 or 3.5 of notice of the commencement of any action
involving the subject matter of the foregoing indemnity provisions such
indemnified party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of said Sections 3.4 or 3.5,
promptly notify the indemnifying party of the commencement thereof; but the
omission to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party otherwise than hereunder.
In case such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party shall
have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party, provided, however,
if counsel for the indemnifying party concludes that a single counsel cannot
under applicable legal and ethical considerations, represent both the
indemnifying party and the indemnified party, the indemnified party or parties
have the right to select separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties. After notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party pursuant to the provisions of said Sections 3.4 or 3.5 for any legal or
other expense subsequently incurred by such indemnified party in connection with
the defense thereof other than reasonable costs of investigation, unless (i) the
indemnified party shall have employed counsel in accordance with the provisions
of the preceding sentence, (ii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after the notice of the commencement of the action or
(iii) the indemnifying party has authorized the employment of counsel for the
indemnified party at the expense of the indemnifying party.
<PAGE>

      IV.   MISCELLANEOUS

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

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

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

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

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

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

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

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

______________________________________    ______________________________________
Signature of Subscriber                   Signature of Co-Subscriber

______________________________________    ______________________________________
Name of Subscriber                        Name of Co-Subscriber
[please print]                            [please print]

______________________________________    ______________________________________
Address of Subscriber                     Address of Co-Subscriber

______________________________________    ______________________________________
Social Security or Taxpayer               Social Security or Taxpayer
Identification Number of Subscriber       Identification Number of Co-Subscriber

______________________________________
Purchase Price of Units Subscribed For

                                          Subscription Accepted:
                                          GVI SECURITY SOLUTIONS, INC.

                                          By: __________________________________
                                              Name: Nazzareno E. Paciotti
                                              Title: Chief Executive Officer and
                                                Chief Financial Officer
<PAGE>

                                    EXHIBIT A
                                  FORM OF NOTES
<PAGE>

                                    EXHIBIT B
                                FORM OF WARRANTS
<PAGE>

                                    EXHIBIT C
                           FORM OF SECURITY AGREEMENT
<PAGE>

                                    EXHIBIT D
                         FORM OF SUBORDINATION AGREEMENT
<PAGE>

                                    EXHIBIT E
                      FORM OF AGENCY APPOINTMENT AGREEMENTTHIS NOTE AND THE SECURITIES ISSUABLE ON CONVERSION HEREOF HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), OR STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED OR SOLD UNLESS
      (I) REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
      LAWS OR (II) AN EXEMPTION FROM REGISTRATION IS AVAILABLE AT THE TIME OF
      SUCH TRANSFER OR SALE.

                          GVI SECURITY SOLUTIONS, INC.

                Subordinated Secured Convertible Promissory Note

$500,000                                                  As of October 29, 2004

            FOR VALUE RECEIVED, GVI SECURITY SOLUTIONS, INC., a Delaware
corporation ("Borrower"), hereby promises to pay to the order of ______________
(the "Payee"), with an address at _______________________________________, on
the earlier of (i) the closing of a public or private offering of the equity
securities of the Borrower following the date hereof resulting in aggregate
gross proceeds to Borrower of at least $1,500,000 (a "Qualified Offering"); (ii)
the sale of all or substantially all of the assets of Borrower or the
consummation of a merger of Borrower in which the stockholders of Borrower prior
to the merger hold less than 50% of the voting power of the surviving entity
following such merger (a "Change of Control"), or (iii) October 29, 2005 (the
earlier of such dates being the "Maturity Date"), the principal sum of FIVE
HUNDRED THOUSAND DOLLARS ($500,00), together with all interest that has accrued
thereon from the date hereof in accordance with the terms of this Subordinated
Secured Promissory Note (this "Note").

            Interest on the outstanding principal balance of this Note shall
accrue from the date hereof until paid in full at the rate of 12% per annum,
calculated on the basis of a 365 day year, and shall be due and payable on the
last day of each month commencing November 30, 2004.

            The payment of principal of and interest on this Note is subordinate
to the payment of the indebtedness of Borrower to Laurus Master Fund Ltd. in the
manner and to the extent provided for in that certain Subordination Agreement
between Laurus Master Fund Ltd., Payee and the payees under promissory notes
(the "Other Notes") of the Borrower of like tenor of even date herewith (such
payees, together with the Payee, the "Holders").

            This Note is secured by a Security Agreement of the Company in favor
of W-net, Inc., as collateral agent for the Holders covering certain collateral,
all as more particularly described and provided therein, and is entitled to the
benefits thereof.
<PAGE>

            Upon the occurrence of any of the following (each, an "Event of
Default"), other than the Events of Default referred to in clause (b) or (c)
below, Payee may declare by notice to Borrower any and all obligations of
Borrower hereunder to be immediately due and payable, and upon the occurrence of
any Event of Default referred to in clause (b) or (c) below, any and all
obligations of Borrower hereunder shall automatically become due and payable
immediately without notice or demand:

                  (a) Borrower shall default in the payment of any amount due
      under this Note and shall not cure such default within 5 business days
      after Borrower receives written notice of such default from Payee;

                  (b) Borrower shall (i) voluntarily commence any proceeding or
      file any petition seeking relief under Title 11 of the United States Code
      or any other Federal or state bankruptcy, insolvency or similar law, (ii)
      consent to the institution of, or fail to controvert in a timely and
      appropriate manner, any such proceeding or the filing of any such
      petition, (iii) apply for or consent to the employment of a receiver,
      trustee, custodian or similar official for Borrower or for a substantial
      part of its property, (iv) file an answer admitting the material
      allegations of a petition filed against it in any such proceeding, (v)
      make a general assignment for the benefit of its creditors, (vi) admit in
      writing its inability to pay its debts as they come due or (vii) take
      corporate action for the purpose of effecting any of the foregoing; or

                  (c) an involuntary proceeding shall be commenced or an
      involuntary petition shall be filed in a court of competent jurisdiction
      seeking (i) relief in respect of Borrower or of a substantial part of its
      property, under Title 11 of the United States Code or any other Federal or
      state bankruptcy, insolvency or similar law, (ii) the appointment of a
      receiver, trustee, custodian or similar official for Borrower or for a
      substantial part of its property or (iii) the winding-up or liquidation of
      Borrower; and such proceeding or petition shall continue undismissed for
      60 days or an order or decree approving or ordering any of the foregoing
      shall continue unstayed and in effect for 60 days.

            Following the occurrence and during the continuance of an Event of
      Default, interest on this Note shall automatically be increased by three
      percent (3%) per annum until such Event of Default is cured or waived.

            This Note incorporates the following additional terms:

            1. Payee by acceptance of this Note covenants and represents to
Borrower that this Note and any securities issued on exercise of the conversion
privilege contained herein are being acquired by the Payee without a view to
distribution and that the Payee will at no time transfer, assign or dispose of
this Note or such securities except in compliance with the requirements of the
Securities Act of 1933, as amended, and applicable state securities laws.

                                       2
<PAGE>

            2. Borrower may prepay this Note without any penalty or premium, in
whole or from time to time in part, upon written notice given at least five
business days prior to the date fixed for such prepayment, subject to the right
of Payee to exercise its conversion rights hereunder with respect to the unpaid
principal of and interest accrued on this Note, at any time after the giving of
such notice until the time of such prepayment. All payments received by Payee
shall be applied first to the payment of all accrued interest payable hereunder.

            3. (a) Subject to and upon compliance with the provisions of this
Section 3 and Section 4, the Payee may, at its option, at any time, convert the
entire principal amount of this Note, together with all accrued interest on the
principal portion hereof being so converted, into fully paid and non-assessable
shares of the Borrower's common stock, par value $.001 per share ("Common
Stock") at a price equal to $1.50 per share (the "Conversion Price"), provided,
however, that (i) in the event a Qualified Offering is not consummated and this
Note repaid in full prior to the date that is three-months following the date of
this Note (the "First Trigger Date"), the Conversion Price shall be decreased
(but not increased), if applicable, to equal 75% of the average of the closing
bid price of the Common Stock for the 10 trading days immediately preceding the
First Trigger Date, as reported by the Nasdaq Stock Market, the NASD OTC
Bulletin Board, the Pink Sheets LLC, or such other principal market on which the
Common Stock is then traded or quoted (the "Applicable Market"), and (ii) in the
event a Qualified Offering is not consummated and this Note repaid in full prior
to the date that is six-months following the date of this Note (the "Second
Trigger Date"), the Conversion Price shall be decreased (but not increased), if
applicable, to equal to 75% of the average of the closing bid price of the
Common Stock for the 10 trading days immediately preceding the Second Trigger
Date, as reported by the Applicable Market. In determining the price per share
of Common Stock paid by such investors, in the event such investors purchase
units consisting of Common Stock and warrants to purchase Common Stock, for the
purposes hereof, the entire amount of the purchase price for such units shall be
allocated to the shares of Common Stock included in such units.

                  (b) The Conversion Price shall also be subject to appropriate
decrease or increase, as the case may be, if the Borrower shall at any time
after the date hereof:

                  (i) declare with respect to any shares of the Borrower's
      stock, any dividend or distribution payable in shares of Common Stock or
      in securities directly or indirectly convertible into or exchangeable for
      shares of Common Stock (but only upon the issuance of shares of Common
      Stock following the conversion or exchange of such securities), or

                  (ii) subdivide or combine outstanding shares of Common Stock.

                                       3
<PAGE>

                  (c) In case of any reclassification, change or exchange of
outstanding shares of Common Stock (except for a change as a result of a
subdivision or combination of such shares), or in case of any consolidation of
the Borrower with, or merger of the Borrower into, another corporation (except
for a merger or a consolidation in which the Borrower is the continuing
corporation and which does not result in any reclassification, change or
exchange of outstanding shares of Common Stock other than a change as a result
of a subdivision or combination of such shares), or in case of any transfer to
another corporation of the assets of the Borrower as an entirety or
substantially as an entirety, or if the Borrower shall declare a dividend or
distribution (except in shares of Common Stock or in securities directly or
indirectly convertible into or exchangeable for shares of Common Stock) upon the
shares of Common Stock payable otherwise than in cash out of earned surplus,
this Note shall thereafter be convertible pursuant to this Section 3 into the
kind and amount of shares and other securities and property that the Payee would
have earned or would have been entitled to receive immediately after such
reclassification, change, exchange, consolidation, merger, transfer, dividend or
distribution, had this Note been converted immediately prior to the effective
date of such reclassification, change, exchange, consolidation, merger or
transfer or immediately prior to the date for the determination of security
holders of record entitled to receive such dividend or distribution.

                  (d) At the option of the Payee, to avoid the issuance of any
fractional shares upon any conversion, adjustment therefor may be made in cash
in an amount equal to the same fraction of the Conversion Price in effect on the
date of such conversion.

                  (e) Borrower shall provide five-days prior written notice to
Payee prior to the consummation of a Qualified Offering.

            4. To exercise the conversion privilege at any time when such
privilege is exercisable in accordance with the terms of this Note, the Payee
shall surrender this Note, with the attached form of Conversion Notice duly
completed, to the Borrower at the principal office of the Borrower or at such
other place as the Borrower may designate. As promptly as practicable after
surrender of this Note as aforesaid but in no event later than three business
days thereafter, the Borrower shall issue and deliver to the Payee a certificate
or certificates for the number of shares of Common Stock and/or other securities
issuable or deliverable upon the conversion of this Note or such designated
portion hereof in accordance herewith and cash in respect of any fraction of a
share of Common Stock for which the Payee has elected to receive cash. Such
conversion shall be deemed to have been effected at the time when such notice
shall have been received by the Borrower and this Note shall have been
surrendered as aforesaid, and the person in whose name any certificate for
shares of Common Stock or other securities shall be issuable upon such
conversion shall be deemed to have become on such date the holder of record of
the shares or other securities represented thereby.

            5. The Borrower covenants and agrees that it will at all times
reserve and keep available such number of its duly authorized and unissued
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of this Note and the exercise or conversion of all other outstanding
securities exercisable or convertible with respect to shares of Common Stock and
that, if at any time the number of authorized but unissued shares of Common
Stock shall not be sufficient to effect the conversion of this Note and the
exercise or conversion of all other outstanding securities exercisable or
convertible with respect to shares of Common Stock at the Conversion Price then
in effect, the Borrower will take such corporate action as may, in the opinion
of its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number as shall be sufficient for such purpose.

                                       4
<PAGE>

            6. In any case where any payment of interest on, or principal of,
this Note shall be required to be made on a Sunday or a legal holiday in the
State of New York or a day on which banking institutions doing business in the
State of New York are authorized by law to close, then such payment shall be
made on the next succeeding business day and such additional time shall be
included in the computation of interest.

            7. The agreements, undertakings, representations and warranties
contained in this Note shall remain operative and in full force and effect and,
subject to payment in full of all principal and interest due hereon, and shall
survive the surrender and/or delivery of this Note to the Borrower for
cancellation or otherwise in connection with the transfer hereof.

            8. Except as herein otherwise expressly provided, all notices,
requests, demands, consents and other communications required or permitted under
this Note shall be in writing and shall be considered to have been duly given
when (i) delivered by hand, (ii) sent by telecopier (with receipt confirmed),
provided that a copy is mailed (on the same date) by certified or registered
mail, return receipt requested, postage prepaid, or (iii) received by the
addressee, if sent by Express Mail, Federal Express or other reputable express
delivery service (receipt requested), or by first class certified or registered
mail, return receipt requested, postage prepaid, in each case to the appropriate
addresses and telecopier numbers set forth below (or to such other addresses and
telecopier numbers as a person whose address is herein specified may from time
to time designate as to itself by notice similarly given to the other such
designees in accordance herewith). A notice of change of address shall not be
deemed given until received by the addressee. Notices shall be addressed (i) if
to the Payee, at its address set forth above, and (ii) if to the Borrower or
Borrower, at 2801 Trade Center Drive, Suite 120, Carollton, Texas 75007, Attn:
Nazzareno E. Paciotti.

            9. Borrower hereby waives presentment, demand for payment, notice of
dishonor, protest and notice of protest of this Note. No waiver of any provision
of this Note, or any agreement or instrument evidencing or providing security
for this Note, made by agreement of Payee and any other person or party, shall
constitute a waiver of any other terms hereof, or otherwise release or discharge
the liability of Borrower under this Note. No failure to exercise and no delay
in exercising, on the part of Payee, any right, power or privilege under this
Note shall operate as a waiver thereof nor shall simple or partial exercise of
any right, power or privilege preclude any other or further exercise thereof, or
the exercise of any other power, right or privilege. The rights and remedies
herein provided are cumulative and are not exclusive of any rights or remedies
provided by law.

            10. Any provision of this Note that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

                                       5
<PAGE>

            11. This Note is governed by and to be construed in accordance with
the laws of the State of New York without regard to its doctrine of conflict of
laws. Borrower, by its execution hereof (i) agrees that any legal suit, action
or proceeding arising from or related to this Note may be instituted in a state
or federal court located in the State of New York; (ii) waives any objection
which it may now or hereafter have to the laying of venue of any such suit,
action or proceeding; and (iii) irrevocably submits to the jurisdiction of any
such court in any such suit, action or proceeding.

                                      GVI SECURITY SOLUTIONS, INC.

                                      By: _________________________
                                      Name: Nazzareno E. Paciotti
                                      Title: Chief Executive Officer and Chief
                                                Financial Officer

                                       6
<PAGE>

                              NOTICE OF CONVERSION

To be executed by the owner of the attached Note if such owner desires to
convert the attached Note:

The undersigned owner of the attached Note hereby

      |_|   irrevocably exercises the option to convert such Note into shares of
            Common Stock of GVI Security Solutions, Inc. ("GVI Shares") in
            accordance with the terms of such Note,

      |_|   elects to receive payment in cash for any fractional share issuable
            upon such conversion,

and directs that the GVI Shares issuable and deliverable upon such conversion,
together with any check in payment for any fractional share as to which an
election to receive cash is made above, be delivered to the undersigned.

Dated:                                             ________________________

                                       7

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