Document:

TERM
      SHEET FOR PROPOSED CREDIT FACILITY

    JUNE
      30,
      2006 

     

    
      		
              

            

    

     

    
      
        

      

    

    
      	
              BORROWER:

            	
              Middle
                Kingdom Alliance Corp. (“Borrower”)

            
	 	 
	
              LENDER:

            	
              Wachovia
                Bank, NA (“Bank”)

            
	 	 
	
              CREDIT
                FACILITY:

            	
              $250,000
                Revolving Line of Credit

            
	 	 
	
              PURPOSE:

            	
              To
                finance general working capital needs of the Borrower.

            
	 	 
	
              MATURITY:

            	
              24
                months from date of closing 

            
	 	 
	
              INTEREST
                RATE:

            	
              LIBOR
                + 200, as that rate may change from time to time

            
	 	 
	
              FEES:

            	
              .25%
                of the committed amount, due and payable at closing

            
	 	 
	
              REPAYMENT:

            	
              Repayable
                in monthly payments of accrued interest only with outstanding principal
                and interest due at maturity. 

            
	 	 
	
              GUARANTOR(S):

            	
              None

            
	 	 
	
              FINANCIAL

            	 
	
              INFORMATION:

            	
              The
                following financial information will be provided to
                Bank.

            
	 	 
	
               

            	
              
                · 
                  Audited
                  financial statements of Borrower within 90 days of Financial Year
                  End

              

            
	
               

            	
              
                · 
                  Tax
                  returns of Middle Kingdom Alliance Corp. within 30 days of
                  filing

              

            
	 	 
	 	 
	
              COLLATERAL:

            	
              Letter
                of Instruction to be issued to the Trustee assigning the final $300,000
                of
                the $1,200,000 in interest to be transferred to operating accounts
                of
                Middle Kingdom Alliance Corp. for the sole purpose of paying off
                the
                remaining outstanding principal and interest balances.

            
	 	 
	
              DEPOSITORY

            	 
	
              RELATIONSHIPS:

            	
              The
                primary depository accounts of Borrower will be maintained with
                Bank.

            
	 	 
	
              DOCUMENTATION:

            	
              An
                opinion letter from an attorney confirming the above conditions do
                not
                violate any SEC regulations. The Facility will be evidenced by documents
                prepared by and acceptable to Bank.

            
	 	 
	
              COSTS:

            	
              Borrower
                will pay all costs and expenses associated with closing the
                loan.

            

    

    
      
        

      

    

    This
      is a non-binding Loan Proposal and does not constitute a commitment or offer
      to
      lend by Bank. Bank shall be obligated to lend to Borrower only under a written
      loan commitment executed by an authorized officer of Bank and Borrower or
      executed loan documents intended for that purpose. This Loan Proposal is not
      intended to be exhaustive and loan documents or a loan commitment may include
      additional terms and conditions required by Bank that are not in this
      Proposal.Exhibit
      4.1

     

    GVI
      SECURITY SOLUTIONS, INC. 

    SUBSCRIPTION
      AGREEMENT

     

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

     

    WHEREAS,
      the Company desires to issue up to 100 units (the “Units”), in a private
      placement (this “Offering”), each Unit consisting of $45,000 principal amount of
      6% Subordinated Secured Convertible Promissory Notes (the “Notes”) in the form
      attached as Exhibit A hereto, and 1,250,000 shares of the Company’s common
      stock, par value $.001 per share (“Common Stock”), on the terms and conditions
      hereinafter set forth, and the Subscriber desires to acquire the number of
      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 B (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 C hereto, between Laurus, the Company and the subscribers
      in
      the Offering; 

     

    WHEREAS,
      the Agent is an affiliate of David Weiner, the managing member of GVI Investment
      Company LLC (“GVI Investment”), a subscriber in the Offering; 

     

    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 D hereto; and

     

    WHEREAS,
      the subscribers in the Offering will enter into a voting agreement in the form
      of Exhibit E (the “Voting
      Agreement”)
      under
      which each such subscriber will agree to vote its shares of Common Stock as
      provided therein.

     

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

     

    
      	 	
              I.

            	
              SUBSCRIPTION
                FOR UNITS AND REPRESENTATIONS BY AND COVENANTS OF
                SUBSCRIBER

            

    

     

    1.1 Subject
      to the terms and conditions hereinafter set forth, the Subscriber hereby
      subscribes for and agrees to purchase from the Company such number of Units
      as
      is set forth upon the signature page hereof at a price equal to $50,000 per
      Unit, and the Company agrees to sell such Units to the Subscriber for said
      purchase price. The purchase price for the Units is payable by delivery of
      a
      certified or bank check made payable to Stubbs Alderton & Markiles, LLP
      Trust Account F/B/O GVI Security Solutions Inc., or by wire transfer to the
      following account:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Account
                  Name:

              	 	
                Stubbs
                  Alderton & Markiles, LLP Trust Account.

              
	
                Bank
                  Name:

              	 	
                National
                  Bank of California

              
	
                Bank
                  Address:

              	 	
                14724
                  Ventura Boulevard

              
	
                 

              	 	
                Sherman
                  Oaks, CA 91403

              
	
                ABA#:

              	 	
                122039360
                  

              
	
                Account
                  #:

              	 	
                003209873

              
	
                Reference:

              	 	
                F/B/O
                  GVI Security Solutions, Inc.

              

      

    

     

    The
      Notes
      and certificates evidencing the shares of Common Stock purchased in the Offering
      will be delivered by the Company within ten days following the consummation
      of
      this Offering.

     

    1.2 The
      Subscriber recognizes that the purchase of 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 Units; (ii) he may not be able to liquidate
      his
      investment; (iii) transferability of the securities comprising the Units is
      extremely limited; (iv) the Company does not currently have a sufficient number
      of shares of authorized Common Stock to permit the conversion of the Notes
      or
      the payment of in kind interest thereon, and will need to amend its certificate
      of incorporation to increase its authorized shares of Common Stock and/or effect
      a reverse split of its outstanding Common Stock; and (v) the Company may be
      unable to repay the Notes without obtaining additional financing.

     

    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 Units. Specifically,
      Subscriber is (check appropriate items(s)): 

     

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

            

    

     

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

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

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

            

    

     

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

            

    

     

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

            

    

     

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

            

    

     

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

            

    

     

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

            

    

     

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

     

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

     

    1.6 The
      Subscriber acknowledges that this Offering may involve tax consequences, and
      that the Company has not provided tax advice or information to the Subscriber.
      The Subscriber acknowledges that it must retain his own professional advisors
      to
      evaluate the tax and other consequences of an investment in the 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 shares of Common Stock comprising the 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 such shares of Common Stock unless they are registered under the
      Securities Act or unless an exemption from such registration is
      available.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    1.8 The
      Subscriber understands that there is no public market for the Notes and the
      shares of Common Stock included in the Unit have not been registered under
      the
      Securities Act. 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,
      if
      any (the “Conversion Shares”), and the shares of Common Stock included in the
      Units (the “Unit Shares” and, together with the Notes, Conversion Shares and
      Unit Shares, the “Securities”) out of Subscriber’s name only when Subscriber’s
      request for transfer is accompanied by an opinion of counsel reasonably
      satisfactory to the Company that neither the sale nor the proposed transfer
      results in a violation of the Securities Act or any applicable state “blue sky”
laws. 

     

    1.
      9 The
      Subscriber consents to the placement of a legend on any certificate or other
      document evidencing the 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.

     

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

     

    
      	 	
              II.

            	
              REPRESENTATIONS
                BY THE COMPANY

            

    

     

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

     

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

     

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

     

    (c) The
      Notes
      and Unit Shares 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.	
              TERMS
                OF SUBSCRIPTION; CLOSING 

            

    

     

    3.1 The
      subscription period will begin as of September 28, 2006 and will terminate
      at
      11:59 p.m. Eastern time on October 3, 2006, unless extended by the Company
      for
      up to an additional thirty (30) days (the “Termination Date”). Such extension
      may be effected without notice to the Subscribers. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.2 As
      compensation for its services in connection with the Offering, the Company
      will
      issue to the Agent and/or its designees, upon the closing of the Offering (the
      “Closing”) a five-year warrant to purchase that number of shares of Common Stock
      equal to 7.5% of the aggregate of the shares of Common Stock included in the
      Units sold in the Offering and the shares of Common Stock underlying the Notes
      sold in the Offering.

     

    3.3 Pending
      the sale of the Units and satisfaction of or waiver of the conditions set forth
      below, all funds paid hereunder shall be held in escrow. If the Company shall
      not have obtained subscriptions (including this subscription) for purchases
      of
      $4,000,000 on or before the Termination Date, then this subscription shall
      be
      void and all funds paid hereunder by the Subscriber, without interest, shall
      be
      promptly returned to the Subscriber. 

     

    3.4 The
      Company intends to use $3,000,000 of the net proceeds of the Offering to pay
      amounts owing to Samsung Electronics Co., Ltd. (“Samsung”). The Company intends
      to use the balance of the net proceeds of the Offering to pay fees and expenses
      incurred in connection with the Offering and for working capital and general
      corporate purposes.

     

    3.5 The
      Closing of the Offering shall be subject to satisfaction or waiver of the
      following conditions, all of which may be waived by GVI Investment, in its
      sole
      discretion:

     

    (a) The
      Company shall have entered into an agreement with Samsung under which Samsung
      has agreed to commence shipping products to the Company and to continue to
      supply the Company with security products until December 31, 2010.

     

    (b)  Laurus
      shall have entered into an agreement with the Company (i) eliminating the
      convertibility of its promissory notes, (ii) extending the final maturity of
      its
      loans to December 31, 2007, and (iii) eliminating prepayment penalties under
      the
      Company’s indebtedness to Laurus. 

     

    (c) The
      current directors of the Company other than Steve Walin shall have resigned,
      and
      the Company’s Board of Directors shall consist of Steve Walin, Joe Restivo,
      David Weiner (Chairman), and two additional directors designated by GVI
      Investment.

     

    (d) Each
      of
      the subscribers in the Offering shall have entered into the Voting Agreement
      with respect to (i) an amendment to the Company’s Certificate of Incorporation
      effecting a reverse stock split of the Common Stock, and (ii) an amendment
      to
      the Company’s 2004 Long-Term Incentive Plan increasing the number shares of
      Common Stock available for issuance thereunder.

     

    
      	
            	IV.	
              REGISTRATION
                RIGHTS

            

    

     

    4.1 Not
      later
      than 120 days following the Closing Date, the Company shall file with the SEC
      a
      registration statement on Form S-1 or such other form available to the Company
      under the Securities Act in order to register for resale and distribution by
      the
      holders of the Securities (the “Holders”) all Conversion Shares, Unit Shares and
      shares of Common Stock that may be issued in payment of interest under the
      Notes
      (collectively, “Registrable Securities”), and shall thereafter use its best
      efforts to cause such registration statement to be declared effective by the
      SEC
      as soon as practicable thereafter. Thereafter, subject
      to Section 4.7, the Company shall use commercially reasonable efforts to keep
      such registration statement continuously effective, supplemented and amended
      to
      the extent necessary to ensure that it is available for resale of the
      Registrable Securities, for a period expiring on the earlier to occur of (i)
      the
      date when all Conversion Shares and Unit Shares no longer constitute Registrable
      Securities and (ii) the second anniversary of the effective date of such
      registration statement. As to any particular Registrable Securities, such
      securities shall cease to constitute Registrable Securities when (a) such
      securities shall have been disposed of in accordance with a method of
      disposition contemplated by the registration statement, (b) such securities
      may
      be sold without volume limitation pursuant to Rule 144(k) under the Securities
      Act (or any successor provision thereto), or (c) such securities shall have
      ceased to be outstanding.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    4.2 
      The
      Company will, until such time as the Registrable Securities no longer constitute
      Registrable Securities:

     

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

     

    (ii) use
      its
      best efforts to register or qualify the securities covered by the 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.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    4.3 
      All
      fees, costs and expenses of and incidental to the registrations pursuant to
      Sections 4.1 shall be borne by the Company. 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.

     

    4.4 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 4.1 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.

     

    4.5 Each
      Holder of Registrable Securities included in a registration pursuant to the
      provisions of Section 4.1 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.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    4.6 Promptly
      after receipt by an indemnified party pursuant to the provisions of Sections
      4.4
      or 4.5 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 4.4 or 4.5, 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 4.4 or 4.5 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.

     

    4.7 The
      Company may suspend the effectiveness of the registration statement, or, without
      suspending such effectiveness, instruct the Subscriber that no sales of
      Registrable Securities included in the registration statement may be made if,
      in
      the Company’s reasonable judgment, an event or circumstance occurs and is
      continuing as a result of which such registration statement, any related
      prospectus or any document incorporated therein by reference as then amended
      or
      supplemented would, in the good faith judgment of the Board of Directors of
      the
      Company, contain an untrue statement of a material fact or omit to state a
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading (a “Suspension
      Period”) by providing the Subscriber with written notice of such Suspension
      Period and the reasons therefor. The Company shall use its reasonable efforts
      to
      provide such notice a reasonable number of days prior to the commencement of
      a
      Suspension Period, provided that in any event the Company shall provide such
      notice no later than the commencement of such Suspension Period. The Suspension
      Period shall not exceed 90 days in any calendar year. In addition, the Company
      shall not be required to keep the registration statement effective, or may
      without suspending such effectiveness instruct the holders of Registrable
      Securities included in the registration statement not to sell such Registrable
      Securities, during any period during which the Company is instructed, directed,
      ordered or otherwise requested by any governmental agency or self-regulatory
      organization to stop or suspend such trading or sales (“Supplemental Suspension
      Period”) and such Supplemental Suspension Period shall not be included in the
      calculation of the Suspension Period referred to above. The Company shall give
      prompt written notice to Subscriber of the termination of any Suspension Period
      or Supplemental Suspension Period.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
            	V.	
              MISCELLANEOUS

            

    

     

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

     

    5.2 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.

     

    5.3 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.

     

    5.4 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.

    5.5 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 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.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    5.6 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.

     

    5.7 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.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

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

    

      
        	 	 	 
	
                Signature
                  of Subscriber

              	 	
                Signature
                  of Co-Subscriber

              
	 	 	 
	 	 	 
	
                Name
                  of Subscriber

              	 	
                Name
                  of Co-Subscriber

              
	
                [please
                  print]

              	 	
                [please
                  print]

              
	 	 	 
	 	 	 
	
                Address
                  of Subscriber

              	 	
                Address
                  of Co-Subscriber

              
	 	 	 
	 	 	 
	
                Social
                  Security or Taxpayer

              	 	
                Social
                  Security or Taxpayer Identification 

              
	
                Identification
                  Number of Subscriber

              	 	
                Number
                  of Co-Subscriber

              
	 	 	 
	 	 	 
	
                Purchase
                  Price of Units Subscribed For

              	 	 
	 	 	 
	
                *If
                  Subscriber is a Registered Representative with an NASD member firm,
                  have
                  the following acknowledgment signed by the appropriate
                  party:

              	 	 
	 	 	 
	
                The
                  undersigned NASD member firm acknowledges receipt of the notice
                  required
                  by Rule 3050 of the NASD Conduct Rules. 

              	 	
                Subscription
                  Accepted:

              
	 	 	 
	 	 	GVI
                SECURITY SOLUTIONS, INC. 
	Name
                of NASD Member Firm	
                   

              	 By: 
	
              
	 	 	
                Name:
                  Steven Walin

                Title:
                  Chief Executive Officer

              
	
                 By

              	     
	 	 
	 	Authorized
                Officer	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    FORM
      OF NOTES 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    FORM
      OF SECURITY AGREEMENT 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    FORM
      OF SUBORDINATION AGREEMENT 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    FORM
      OF AGENCY APPOINTMENT AGREEMENT 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    FORM
      OF VOTING AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]