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  Promissory Notes (the "Notes") in
the form attached as Exhibit A hereto,  and the right to be issued warrants (the
"Warrants"),  as provided in Section 1.2 below, to purchase shares of the common
stock,  par  value  $.001 per share of the  Company,  substantially  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 will be delivered by the Company within five days following
the consummation of this Offering.

            1.2   On the  earlier  of (i) the  closing  of one or  more  private
placements  of the  Company's  equity  securities  resulting in aggregate  gross
proceeds to the Company of at least $1,500,000 (a "Qualified Offering") and (ii)
April 1, 2005 (such  earlier date,  the "Warrant  Issuance  Date"),  the Company
shall issue to  Subscriber a Warrant to purchase that number of shares of Common

<PAGE>

Stock equal to Subscriber's  aggregate  purchase price for the Units  hereunder,
divided by the "Exercise  Price" of the Warrant (as determined  pursuant to this
Section 1.2).  The Exercise Price of the Warrant shall be the price per share of
Common Stock paid by investors in the Qualified Offering;  provided, that if the
Warrants are issued on April 1, 2005  because a Qualified  Offering has not been
consummated  by such date,  the Exercise  Price shall (x) initially be $1.50 and
(y) be subject to downward  adjustment  (if  applicable) on July 1, 2005, if the
Note issued to  Subscriber  hereunder  has not been  repaid as of such date,  to
equal 75% of the average of the closing bid price of the Common Stock for the 10
trading days immediately preceding July 1, 2005, 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  be  subject  to  further  downward  adjustment  (if
applicable)  on October 1, 2005, if the Note issued to Subscriber  hereunder has
not been repaid as of such date,  to equal 75% of the average of the closing bid
price of the Common Stock for the 10 trading days immediately  preceding October
1, 2005, as reported by the  Applicable  Market.  In  determining  the price per
share of Common Stock paid by investors  in a Qualified  Offering,  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.

            1.3   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.

            1.4   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.

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

            1.6   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.

            1.7   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.

                                       2
<PAGE>

            1.8   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.

            1.9   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, if
any (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.

            1.10  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.

                                       3
<PAGE>

      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 Warrant  Issuance Date 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 (if the Note has not then been repaid) 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 (if applicable) and exercise
of the Warrant  even  though the Holder has not given  notice of exercise of the
Warrant.

                  (b)   Upon written  request (the "Demand  Notice"),  delivered
any time after 180 days  following  the  Warrant  Issuance  Date,  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.

                                       4
<PAGE>

                  (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;

                  (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.

                                       5
<PAGE>

            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.

            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.

                                       6
<PAGE>

            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.

      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.

                                       7
<PAGE>

            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.

            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.

                                       8
<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
Identification Number of Subscriber   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

                                       9
<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 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,  if this  Note  shall  then be
convertible pursuant to Section 3 below, 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, in the event this Note has not been repaid in full on or prior
to March 31, 2005, the Payee may, at its option, at any time thereafter, 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 July 1, 2005, 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  July 1, 2005,  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 October 1, 2005, 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  October 1, 2005, 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 (to the
extent  this Note is then  convertible)  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  (to  the  extent  this  Note  is then
convertible),  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  occurring  after March 31,
2005.

      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  following
March  1,  2005,  to the  extent  this  Note is  outstanding,  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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