Document:

Exhibit
      10.5

     

    AMENDED
      AND RESTATED SECURED MINIMUM BORROWING NOTE

     

    FOR
      VALUE
      RECEIVED, GVI SECURITY SOLUTIONS, INC., a Delaware corporation (the
“Borrower”)
      promises to pay to LAURUS MASTER FUND, LTD., c/o Ironshore Corporate Services
      Ltd., P.O. Box 1234 G.T., Queensgate House, South Church Street, Grand Cayman,
      Cayman Islands, Fax: 345-949-9877 (the “Holder”)
      or its
      registered assigns, on order, the sum of Five Million Dollars ($5,000,000),
      or,
      if different, the aggregate principal amount of all “Loans” (as such term is
      defined in the Security Agreement referred to below), in each case, without
      duplication of any amounts owing by Borrower to Holder under the Revolving
      Note
      (as defined in the Security Agreement referred to below), together with any
      accrued and unpaid interest hereon, on December 31, 2007 (the “Maturity
      Date”).
      This
      Secured Minimum Borrowing Note amends and restates in its entirety (and is
      given
      in substitution for and not in satisfaction of) that certain $5,000,000 Secured
      Convertible Minimum Borrowing Note made by the Company in favor of Holder on
      May
      27, 2004.

     

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in the Security Agreement between Borrower and the Holder dated as of
      May
      27, 2004, as amended and restated as of October 4, 2006 (as further amended
      and
      restated, amended, modified and supplemented from time to time, the
“Security
      Agreement”).
      This
      is the Amended and Restated Secured Minimum Borrowing Note referred to in the
      Security Agreement, and all forms, terms and provisions thereof are expressly
      incorporated herein by reference.

     

    The
      following terms shall apply to this Amended and Restated Secured Minimum
      Borrowing Note (this “Note”):

     

    ARTICLE
      I

    INTEREST

     

    1.1.   Interest
      Rate and Payments.
      Subject
      to Sections 4.1 and 5.7 hereof, interest payable on this Note shall accrue
      at a
      rate per annum equal to the Contract Rate, and shall be payable monthly in
      arrears commencing on October 1, 2006 and on the first day of each consecutive
      calendar month thereafter (each, an “Interest
      Payment Date”).
      

     

    ARTICLE
      II

    ADVANCES,
      PAYMENTS UNDER NOTE

     

    2.1.  Mechanics
      of Advances.
      All
      Loans evidenced by this Note shall be made in accordance with the terms and
      provisions of the Security Agreement.

     

    2.2.  [Intentionally
      Omitted].

     

    2.3.  Optional
      Redemption in Cash.
      The
      Borrower will have the option of prepaying this Note (“Optional
      Redemption”)
      by
      paying to the Holder a sum of money equal to the principal amount of the Loans
      outstanding under this Note together with accrued but unpaid interest thereon
      and any and all other sums due, accrued or payable to the Holder arising under
      this Note, the Security Agreement, or any Ancillary Agreement (as defined in
      the
      Security Agreement) (the “Redemption
      Amount”)
      on the
      Redemption Payment Date (defined below) specified in the written notice of
      redemption (the “Notice
      of Redemption”).
      The
      Notice of Redemption shall specify the date for such Optional Redemption (the
      “Redemption
      Payment Date”)
      which
      date shall be within seven (7) business days after the date of the Notice of
      Redemption (the “Redemption
      Period”).
      On
      the Redemption Payment Date, the Redemption Amount (plus any additional interest
      and fees accruing on the Notes during the Redemption Period) must be irrevocably
      paid in full in immediately available funds to the Holder. In the event the
      Borrower fails to pay the Redemption Amount on the Redemption Payment Date
      as
      set forth herein, then such Redemption Notice will be null and
      void.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

    [INTENTIONALLY
      OMITTED]

     

    ARTICLE
      IV

    DEFAULT
      PAYMENTS

     

    4.1.  Default
      Payment.
      If an
      Event of Default occurs and is continuing beyond any applicable grace period,
      the Holder, at its option, may elect, in addition to all rights and remedies
      of
      Holder under the Security Agreement and all obligations of Borrower under the
      Security Agreement, to require the Borrower to make a Default Payment
      (“Default
      Payment”).
      The
      Default Payment shall be 100% of the outstanding principal amount of the Note,
      plus accrued but unpaid interest, all other fees then remaining unpaid, and
      all
      other amounts payable hereunder. The Default Payment shall be applied first
      to
      any fees due and payable to Holder pursuant to the Notes or the Ancillary
      Agreements, then to accrued and unpaid interest due on the Notes and then to
      outstanding principal balance of the Notes. 

     

    4.2.  Default
      Payment Date and Default Notice Period.
      The
      Default Payment shall be due and payable on the fifth business day after an
      Event of Default (“Default
      Payment Date”)
      has
      occurred and is continuing beyond any applicable grace period. The period
      between date upon which of an Event of Default has occurred and is continuing
      beyond any applicable grace period and the Default Payment Date shall be the
      “Default
      Period.”
If
      during the Default Period, the Borrower cures the Event of Default, the Event
      of
      Default will no longer exist and any additional rights the Holder had triggered
      by the occurrence and continuance of an Event of Default will no longer exist.
      If the Event of Default is not cured during the Default Notice Period, all
      amounts payable hereunder shall be due and payable on the Default Payment Date,
      all without further demand, presentment or notice, or grace period, all of
      which
      hereby are expressly waived. 

     

    4.3.  
      Default Interest Rate.
      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, and all outstanding Obligations, including unpaid interest, shall
      continue to accrue interest from the date of such Event of Default at such
      interest rate applicable to such Obligations until such Event of Default is
      cured or waived.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.4.  Cumulative
      Remedies.
      The
      remedies under this Note, the Security Agreement and the Ancillary Agreements
      shall be cumulative.

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1.  Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    5.2.  Notices.
      Any
      notice herein required or permitted to be given shall be in writing and provided
      in accordance with the terms of the Security Agreement.

     

    5.3.  
      Amendment Provision.
      The
      term “Note” and all reference thereto, as used throughout this instrument, shall
      mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as it may be amended or supplemented.

     

    5.4.  Assignability.
      This
      Note shall be binding upon the Borrower and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and assigns, and
      may
      be assigned by the Holder in accordance with the requirements of the Security
      Agreement.

     

    5.5.  Cost
      of Collection.
      If
      default is made in the payment of this Note, the Borrower shall pay the Holder
      hereof reasonable costs of collection, including reasonable attorneys’
fees.

     

    5.6.  Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New York, without regard to principles of conflicts of laws. Any action
      brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the state courts of
      New
      York or in the federal courts located in the state of New York. Both parties
      and
      the individual signing this Note on behalf of the Borrower agree to submit
      to
      the jurisdiction of such courts. The prevailing party shall be entitled to
      recover from the other party its reasonable attorney’s fees and costs. In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or unenforceability of any other provision of this Note. Nothing contained
      herein shall be deemed or operate to preclude the Holder from bringing suit
      or
      taking other legal action against the Borrower in any other jurisdiction to
      collect on the Borrower’s obligations to Holder, to realize on any collateral or
      any other security for such obligations, or to enforce a judgment or other
      court
      order in favor of Holder.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5.7.  Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

     

    5.8.  Security
      Interest.
      The
      Holder of this Note has been granted a security interest in certain assets
      of
      the Borrower more fully described in a Master Security Agreement dated as of
      May
      27, 2004.

     

    5.9.  Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the
      other.

     

    5.10   
       Registered
      Obligation.
      This
      Note is intended to be a registered obligation within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i) and the Note shall be registered as to
      both
      principal and any stated interest with the Borrower. Notwithstanding any
      document, instrument or agreement relating to this Note to the contrary,
      transfer of this Note (or the right to any payments of principal or stated
      interest thereunder) may only be effected by (i) surrender of this Note and
      either the reissuance by the Borrower of this Note to the new holder or the
      issuance by the Borrower of a new instrument to the new holder, or (ii) transfer
      through a book entry system maintained by the Borrower (or its agent), within
      the meaning of Treasury Regulation Section
      1.871-14(c)(1)(i)(B).

     

    [Balance
      of page intentionally left blank; signature page follows.]

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Borrower has caused this Amended and Restated Secured Minimum Borrowing Note
      to
      be signed in its name effective as of this __day of October 2006.

     

    
      	 	 	 
	 	GVI SECURITY SOLUTIONS,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title:

    

     

    WITNESS:

     

    
      
 

    
      
         

      

      
        5Exhibit
      10.6

     

    AMENDED
      AND RESTATED SECURED REVOLVING NOTE

     

    FOR
      VALUE
      RECEIVED, GVI SECURITY SOLUTIONS, INC. a Delaware corporation (the “Borrower”)
      promises to pay to LAURUS MASTER FUND, LTD., c/o Ironshore Corporate Services
      Ltd., P.O. Box 1234 G.T., Queensgate House, South Church Street, Grand Cayman,
      Cayman Islands, Fax: 345-949-9877 (the “Holder”)
      or its
      registered assigns, on order, the sum of Five Million Dollars ($5,000,000),
      or,
      if different, the aggregate principal amount of all “Loans” (as such term is
      defined in the Security Agreement referred to below), in each case, without
      duplication of any amounts owing by Borrower to Holder under the Minimum
      Borrowing Notes (as defined in the Security Agreement referred to below),
      together with any accrued and unpaid interest hereon, on December 31, 2007
      (the
“Maturity
      Date”).
      This
      Secured Revolving Note amends and restates in its entirety (and is given in
      substitution for and not in satisfaction of) that certain $5,000,000 Secured
      Revolving Note made by the Company in favor of Holder on May 27,
      2004.

     

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in the Security Agreement between Borrower and the Holder dated as of
      May
      27, 2004, as amended and restated as of October 4, 2006 (as further amended
      and
      restated, amended, modified and supplemented from time to time, the
“Security
      Agreement”).
      This
      is the Revolving Note referred to in the Security Agreement, and all forms,
      terms and provisions thereof are expressly incorporated herein by
      reference

     

    The
      following terms shall apply to this Amended and Restated Secured Revolving
      Note
      (this “Note”):

     

    ARTICLE
      I

    INTEREST
      & PREPAYMENTS

     

    1.1.  Interest
      Rate and Payments.
      Subject
      to Sections 4.1 and 5.7 hereof, interest payable on this Note shall accrue
      at a
      rate per annum equal to the Contract Rate, and shall be payable monthly in
      arrears commencing on October 1, 2006 and on the first day of each consecutive
      calendar month thereafter (each, an “Interest
      Payment Date”).
      

    

    1.2 [Intentionally
      Omitted].

     

    ARTICLE
      II

    [INTENTIONALLY
      OMITTED]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
      III

    DEFAULT
      PAYMENTS

     

    3.1.  Default
      Payment.
      If an
      Event of Default occurs and is continuing beyond any applicable grace period,
      the Holder, at its option, may elect, in addition to all rights and remedies
      of
      Holder under the Security Agreement and all obligations of Borrower under the
      Security Agreement, to require the Borrower to make a Default Payment
      (“Default
      Payment”).
      The
      Default Payment shall be 100% of the outstanding principal amount of the Note,
      plus accrued but unpaid interest, all other fees then remaining unpaid, and
      all
      other amounts payable hereunder. The Default Payment shall be applied first
      to
      any fees due and payable to Holder pursuant to the Notes or the Ancillary
      Agreements, then to accrued and unpaid interest due on the Notes and then to
      outstanding principal balance of the Notes.

     

    3.2.  Default
      Payment Date and Default Notice Period.
      The
      Default Payment shall be due and payable on the fifth business day after an
      Event of Default (“Default
      Payment Date”)
      has
      occurred and is continuing beyond any applicable grace period. The period
      between date upon which of an Event of Default has occurred and is continuing
      beyond any applicable grace period and the Default Payment Date shall be the
      “Default
      Period.”
If
      during the Default Period, the Borrower cures the Event of Default, the Event
      of
      Default will no longer exist and any additional rights the Holder had triggered
      by the occurrence and continuance of an Event of Default will no longer exist.
      If the Event of Default is not cured during the Default Notice Period, all
      amounts payable hereunder shall be due and payable on the Default Payment Date,
      all without further demand, presentment or notice, or grace period, all of
      which
      hereby are expressly waived. 

     

    ARTICLE
      IV

    DEFAULT
      INTEREST

     

    4.1.  Default
      Interest Rate.
      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, and all outstanding Obligations, including unpaid interest, shall
      continue to accrue interest from the date of such Event of Default at such
      interest rate applicable to such Obligations until such Event of Default is
      cured or waived.

     

    4.2.  Cumulative
      Remedies.
      The
      remedies under this Note, the Security Agreement and the Ancillary Agreements
      shall be cumulative.

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1.  Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    5.2.  Notices.
      Any
      notice herein required or permitted to be given shall be in writing and provided
      in accordance with the terms of the Security Agreement.

     

    5.3.  Amendment
      Provision.
      The
      term “Note” and all reference thereto, as used throughout this instrument, shall
      mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as it may be amended or supplemented.

     

    5.4.  Assignability.
      This
      Note shall be binding upon the Borrower and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and assigns, and
      may
      be assigned by the Holder in accordance with the requirements of the Security
      Agreement.

     

    5.5.  Cost
      of Collection.
      If
      default is made in the payment of this Note, the Borrower shall pay the Holder
      hereof reasonable costs of collection, including reasonable attorneys’
fees.

     

    5.6.  Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New York, without regard to principles of conflicts of laws. Any action
      brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the state courts of
      New
      York or in the federal courts located in the state of New York. Both parties
      and
      the individual signing this Note on behalf of the Borrower agree to submit
      to
      the jurisdiction of such courts. The prevailing party shall be entitled to
      recover from the other party its reasonable attorney’s fees and costs. In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or unenforceability of any other provision of this Note. Nothing contained
      herein shall be deemed or operate to preclude the Holder from bringing suit
      or
      taking other legal action against the Borrower in any other jurisdiction to
      collect on the Borrower’s obligations to Holder, to realize on any collateral or
      any other security for such obligations, or to enforce a judgment or other
      court
      order in favor of Holder.

     

    5.7.  Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

     

    5.8.  Security
      Interest.
      The
      Holder of this Note has been granted a security interest in certain assets
      of
      the Borrower more fully described in a Master Security Agreement dated as of
      May
      27, 2004.

     

    5.9.  Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the
      other.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    5.10 Registered
      Obligation.
      This
      Note is intended to be a registered obligation within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i) and the Note shall be registered as to
      both
      principal and any stated interest with the Borrower. Notwithstanding any
      document, instrument or agreement relating to this Note to the contrary,
      transfer of this Note (or the right to any payments of principal or stated
      interest thereunder) may only be effected by (i) surrender of this Note and
      either the reissuance by the Borrower of this Note to the new holder or the
      issuance by the Borrower of a new instrument to the new holder, or (ii) transfer
      through a book entry system maintained by the Borrower (or its agent), within
      the meaning of Treasury Regulation Section 1.871-14(c)(1)(i)(B).

     

    [Balance
      of page intentionally left blank; signature page follows.]

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Borrower has caused this Secured Convertible Revolving Note to be signed in
      its
      name effective as of this __ day of October 2006.

    
      	 	 	 
	 	
              GVI
                SECURITY SOLUTIONS, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

            
	 	
              Title:

            
	 	 
	 	 
	WITNESS: 	 
	 	 
	 	 
	
              
  	 

    

     

    
      
         

      

      
        5

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