Document:

THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS.  THIS NOTE AND THE COMMON SHARES ISSUABLE
UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATES SECURITIES
LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO GLOBAL DIGITAL
SOLUTIONS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.
SECURED CONVERTIBLE MINIMUM BORROWING NOTE

FOR VALUE RECEIVED, GLOBAL DIGITAL SOLUTIONS, INC. a New Jersey
corporation (the "Borrower") promises to pay to LAURUS MASTER FUND,
LTD., c/o Ogier Fiduciary Services (Cayman) Limited, P.O. Box 1234,
Queensgate House, South Church Street, George Town, Grand Cayman,
Cayman Islands, British West Indies, Fax: 345-949-9877 (the "Holder")
or its registered assigns, on order, the sum of Five Hundred Thousand
Dollars ($500,000), of, if different, the aggregate principal amount of
all "Loans" (as such term is defined in the Security Agreement referred
to below), together with any accrued and unpaid interest hereon, on
July 28, 2007 (the "Maturity Date").

Capitalized terms used herein without definition shall have the
meanings ascribed to such terms in the Security Agreement between
Borrower, certain Subsidiaries of the Borrower and the Holder dated as
of July 28, 2004 (as amended, modified and supplemented from time to
time, the "Security Agreement").

The following terms shall apply to this Minimum Borrowing Note (this
"Note"):

INTEREST

1.1  Contract Rate.  Subject to Sections 4.10, 5.1 and 6.7 hereof,
interest payable on this Note shall accrue at a rate per annum equal to
the "prime rate" published in The Wall Street Journal from time to
time, plus three percent (3%) (the "Contract Rate").  The Prime Rate
shall be increased or decreased as the case may be for each increase or
decrease in the Prime Rate in an amount equal to such increase or
decrease in the Prime Rate; each change to be effective as of the day
of the change in such rate in accordance with the terms of the Security
Agreement. Subject to Section 1.2, the Contract Rate shall not be less
than seven percent (7%).

1.2  Contract Rate Adjustments and Payments.  The Contract Rate shall
be calculated on the last business day of each month hereafter until
the Maturity Date (each a "Determination Date") and shall be subject to
adjustment as set forth herein.  If (i) the Borrower shall have
registered the shares of the Borrower's common stock underlying each of
the conversion of the Note and that certain warrant issued to Holder on
a registration statement declared effective by the Securities and
Exchange Commission (the "SEC"), and (ii) the market price (the "Market
Price") of the Common Stock as reported by Bloomberg, L.P. on the
Principal Market (as defined below) for the five (5) trading days
immediately preceding a Determination Date exceeds the then applicable
Fixed Conversion Price by at least twenty five percent (25%), the
Interest Rate for the succeeding calendar month shall automatically be
reduced by 25 basis points (25 b.p.) (0.25.%) for each incremental
twenty five percent (25%) increase in the Market Price of the Common
Stock above the then applicable Fixed Conversion Price. Notwithstanding
the foregoing (and anything to the contrary contained in herein), in no
event shall the Contract Rate be less than zero percent (0%).
Interest shall be (i) calculated on the basis of a 360 day year, and
(ii) payable monthly, in arrears, commencing on September 1, 2004 and
on the first business day of each consecutive calendar month thereafter
until the Maturity Date (and on the Maturity Date), whether by
acceleration or otherwise (each, a "Contract Rate Payment Date").

ADVANCES,  PAYMENTS UNDER NOTE

Mechanics of Advances.  All Loans evidenced by this Note shall be made
in accordance with the terms and provisions of the Security Agreement.
Fixed Conversion Price.  For purposes hereof, subject to Section 3.5
hereof, the initial "Fixed Conversion Price" means $ 0.85.

 	No Effective Registration.  Notwithstanding anything to the
contrary herein, the Holder shall not be required accept shares of
Common Stock as payment following a conversion by the Holder if there
fails to exist an effective current Registration Statement (as defined
in the Registration Rights Agreement) covering the shares of Common
Stock to be issued, or if an Event of Default hereunder exists and is
continuing, unless such requirement is otherwise waived in writing by
the Holder in whole or in part at the Holder's option.

 	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 one hundred thirty percent (130%) of the
principal amount of 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 day written notice of redemption (the
"Notice of Redemption") is given to the Holder. The Notice of
Redemption shall specify the date for such Optional Redemption (the
"Redemption Payment Date") which date shall be seven (7) days after the
date of the Notice of Redemption (the "Redemption Period"). A Notice of
Redemption shall not be effective with respect to any portion of this
Note for which the Holder has previously delivered a Notice of
Conversion (defined below) pursuant to Section 3.1, or for conversions
elected to be made by the Holder pursuant to Section 3.1 during the
Redemption Period.  The Redemption Amount shall be determined as if
such Holder's conversion elections had been completed immediately prior
to the date of the Notice of Redemption. 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, then such Redemption Notice will be null and void.

HOLDER'S CONVERSION RIGHTS

Optional Conversion. Subject to the terms of this Article III, the
Holder shall have the right, but not the obligation, at any time until
the Maturity Date, or thereafter during an Event of Default (as defined
in Article V), and, subject to the limitations set forth in Section 3.2
hereof, to convert all or any portion of the then outstanding Principal
Amount and/or accrued interest and fees due and payable into fully paid
and nonassessable shares of the Common Stock at the Fixed Conversion
Price. The shares of Common Stock to be issued upon such conversion are
herein referred to as the "Conversion Shares."

Conversion Limitation. Notwithstanding anything contained herein to the
contrary, the Holder shall not be entitled to convert pursuant to the
terms of this Note an amount that would be convertible into that number
of Conversion Shares which would exceed, at such time, the difference
between the number of shares of Common Stock beneficially owned by such
Holder or issuable upon exercise of warrants held by such Holder and
four and ninety nine percent (4.99%) of the outstanding shares of
Common Stock of the Borrower.  For the purposes of the immediately
preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and Regulation 13d-3
thereunder.  The Conversion Shares limitation described in this Section
3.2 shall automatically become null and void without any notice to
Borrower upon the occurrence and during the continuance beyond any
applicable grace period of an Event of Default, or upon seventy five
(75) days prior notice to the Borrower.

Mechanics of Holder's Conversion. In the event that the Holder elects
to convert all or any portion of the then Principal Amount, accrued
interest and fees into Common Stock, the Holder shall give notice of
such election by delivering an executed and completed notice of
conversion ("Notice of Conversion") to the Borrower and such Notice of
Conversion shall provide a breakdown in reasonable detail of the
Principal Amount, accrued interest and fees that are being converted.
On each Conversion Date (as hereinafter defined) and in accordance with
its Notice of Conversion, the Holder shall make the appropriate
reduction to the Principal Amount, accrued interest and fees as entered
in its records and shall provide written notice thereof to the Borrower
within two (2) business days after the Conversion Date.  Each date on
which a Notice of Conversion is delivered or telecopied to the Borrower
in accordance with the provisions hereof shall be deemed a Conversion
Date (the "Conversion Date").  A form of Notice of Conversion to be
employed by the Holder is annexed hereto as Exhibit A.  Pursuant to the
terms of the Notice of Conversion, the Borrower will issue instructions
to the transfer agent accompanied by an opinion of counsel within two
(2) business days of the date of the delivery to Borrower of the Notice
of Conversion and shall cause the transfer agent to transmit the
certificates representing the Conversion Shares to the Holder by
crediting the account of the Holder's designated broker with the
Depository Trust Corporation ("DTC") through its Deposit Withdrawal
Agent Commission ("DWAC") system within three (3) business days after
receipt by the Borrower of the Notice of Conversion (the "Delivery
Date"). In the case of the exercise of the conversion rights set forth
herein the conversion privilege shall be deemed to have been exercised
and the Conversion Shares issuable upon such conversion shall be deemed
to have been issued upon the date of receipt by the Borrower of the
Notice of Conversion. The Holder shall be treated for all purposes as
the record holder of such Common Stock, unless the Holder provides the
Borrower written instructions to the contrary.
Late Payments. The Borrower understands that a delay in the delivery of
the shares of Common Stock in the form required pursuant to this
Article beyond the Delivery Date could result in economic loss to the
Holder.  As compensation to the Holder for such loss, the Borrower
agrees to pay late payments to the Holder for late issuance of such
shares in the form required pursuant to this Article III upon
conversion of the Note, in the amount equal to $500 per business day
after the Delivery Date.  The Borrower shall pay any payments incurred
under this Section in immediately available funds upon demand.
Adjustment Provisions. The Fixed Conversion Price and number and kind
of shares or other securities to be issued upon conversion determined
pursuant to Section 2.2 shall be subject to adjustment from time to
time upon the happening of certain events while this conversion right
remains outstanding, as follows:

Reclassification, etc.  If the Borrower at any time shall, by
reclassification or otherwise, change the Common Stock into the same or
a different number of securities of any class or classes, this Note, as
to the unpaid Principal Amount and accrued interest thereon, shall
thereafter be deemed to evidence the right to purchase an adjusted
number of such securities and kind of securities as would have been
issuable as the result of such change with respect to the Common Stock
(i) immediately prior to or (ii) immediately after such
reclassification or other change at the sole election of the Holder.
Stock Splits, Combinations and Dividends.  If the shares of Common
Stock are subdivided or combined into a greater or smaller number of
shares of Common Stock, or if a dividend is paid on the Common Stock or
any preferred stock issued by the Borrower in shares of Common Stock,
the Fixed Conversion Price shall be proportionately reduced in case of
subdivision of shares or stock dividend or proportionately increased in
the case of combination of shares, in each such case by the ratio which
the total number of shares of Common Stock outstanding immediately
after such event bears to the total number of shares of Common Stock
outstanding immediately prior to such event.

Share Issuances. Subject to the provisions of this Section 3.5, if the
Borrower shall at any time prior to the conversion or repayment in full
of the Principal Amount issue any shares of Common Stock or securities
convertible into Common Stock to a person other than the Holder (except
(i) pursuant to Subsections A or B above; (ii) pursuant to options,
warrants, or other obligations to issue shares outstanding on the date
hereof as disclosed to Holder in writing; or (iii) pursuant to options
that may be issued under any employee incentive stock option and/or any
qualified stock option plan adopted by the Borrower) for a
consideration per share (the "Offer Price") less than the Fixed
Conversion Price in effect at the time of such issuance, then the Fixed
Conversion Price shall be immediately reset to such lower Offer Price.
For purposes hereof, the issuance of any security of the Borrower
convertible into or exercisable or exchangeable for Common Stock shall
result in an adjustment to the Fixed Conversion Price upon the issuance
of such securities.

Computation of Consideration. For purposes of any computation
respecting consideration received pursuant to Subsection C above, the
following shall apply:

   -   in the case of the issuance of shares of Common Stock for cash,
the consideration shall be the amount of such cash, provided that in no
case shall any deduction be made for any commissions, discounts or
other expenses incurred by the Borrower for any underwriting of the
issue or otherwise in connection therewith;

   -   in the case of the issuance of shares of Common Stock for a
consideration in whole or in part other than cash, the consideration
other than cash shall be deemed to be the fair market value thereof as
determined in good faith by the Board of Directors of the Borrower
(irrespective of the accounting treatment thereof); and
Upon any such exercise, the aggregate consideration received for such
securities shall be deemed to be the consideration received by the
Borrower for the issuance of such securities plus the additional
minimum consideration, if any, to be received by the Borrower upon the
conversion or exchange thereof (the consideration in each case to be
determined in the same manner as provided in clauses (a) and (b) of
this Subsection (D)).

Reservation of Shares. During the period the conversion right exists,
the Borrower will reserve from its authorized and unissued Common Stock
a sufficient number of shares to provide for the issuance of Common
Stock upon the full conversion of this Note.  The Borrower represents
that upon issuance, such shares will be duly and validly issued, fully
paid and non-assessable.  The Borrower agrees that its issuance of this
Note shall constitute full authority to its officers, agents, and
transfer agents who are charged with the duty of executing and issuing
stock certificates to execute and issue the necessary certificates for
shares of Common Stock upon the conversion of this Note.

Registration Rights.  The Holder has been granted registration rights
with respect to the shares of Common Stock issuable upon conversion of
this Note as more fully set forth in a Registration Rights Agreement
dated as of the date hereof between the Borrower and the Holder.

EVENTS OF DEFAULT

The occurrence of any of the events set forth in Sections 4.1 through
4.9, inclusive, shall be an Event of Default ("Event of Default"):
Failure to Pay Principal, Interest or other Fees.  The Borrower fails
to pay when due any installment of principal, interest or other fees
hereon or on any other promissory note issued pursuant to the Security
Agreement when due in accordance with the terms of such note, and in
any such case, such failure shall continue for a period of three(3)
days following the date upon which any such payment was due.

Breach of Covenant.  The Borrower or any of its Subsidiaries breaches
any covenant or other term or condition of this Note in any material
respect and such breach, if subject to cure, continues for a period of
thirty (30) days after the occurrence thereof.

Breach of Representations and Warranties.  Any representation or
warranty of the Borrower or any of its Subsidiaries made herein, or the
Security Agreement, or in any Ancillary Agreement shall be false or
misleading in any material respect.

Stop Trade.  An SEC stop trade order or Principal Market trading
suspension of the Common Stock shall be in effect for five (5)
consecutive days or five (5) days during a period of ten (10)
consecutive days, excluding in all cases a suspension of all trading on
a Principal Market, provided that the Borrower shall not have been able
to cure such trading suspension within thirty (30) days of the notice
thereof or list the Common Stock on another Principal Market within
sixty (60) days of such notice.  The "Principal Market" for the Common
Stock shall include the NASD OTC Bulletin Board, NASDAQ SmallCap
Market, NASDAQ National Market System, American Stock Exchange, or New
York Stock Exchange (whichever of the foregoing is at the time the
principal trading exchange or market for the Common Stock), or any
securities exchange or other securities market on which the Common
Stock is then being listed or traded.

4.5 Bankruptcy, Receiver or Trustee. If Borrower or any of its
Subsidiaries shall (i) apply for, consent to or suffer to exist the
appointment of, or the taking of possession by, a receiver, custodian,
trustee or liquidator of itself or of all or a substantial part of its
property, (ii) make a general assignment for the benefit of creditors,
(iii) commence a voluntary case under the federal bankruptcy laws (as
now or hereafter in effect), (iv) be adjudicated a bankrupt or
insolvent, (v) file a petition seeking to take advantage of any other
law providing for the relief of debtors, (vi) acquiesce to, or fail to
have dismissed, within thirty (30) days, any petition filed against it
in any involuntary case under such bankruptcy laws, or (vii) take any
action for the purpose of effecting any of the foregoing.
4.6	Judgments.   An attachment or levy is made upon Borrower's or any
of its Subsidiaries' assets having an aggregate value in excess of
$100,000 or a judgment, writ or similar final process is rendered
against Borrower or any if its Subsidiaries or their respective
property or other assets for more than $100,000 which shall not have
been vacated, discharged, stayed or bonded within thirty (30) days from
the entry thereof;

	4.7 Default Under Other Agreements.  The occurrence of an Event
of Default under and as defined in the Security Agreement or any
Ancillary Agreement or any event of default (or similar term) under any
other indebtedness.

4.8	Failure to Deliver Common Stock or Replacement Note.  The
Borrower's failure to timely cause the delivery of the Common Stock to
the Holder pursuant to and in the form required by this Note and the
Security Agreement, if such failure to cause such delivery of the
Common Stock shall not be cured within two (2) days.  If Borrower is
required to issue a replacement Note  to Holder and Borrower shall
fail to execute and deliver such  replacement Note within seven7)
Business Days.

4.9	Change in Control.  The occurrence of a change in the
controlling ownership of the Borrower.

DEFAULT RELATED PROVISIONS

4.10	Default Interest Rate.  Following the occurrence and during
the continuance of an Event of Default, interest on this Note shall
automatically be increased by two percent (2%) per month, 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.

4.11	Conversion Privileges.  The conversion privileges set forth in
Article III shall remain in full force and effect immediately from the
date hereof and until this Note is paid in full.

DEFAULT PAYMENTS

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 the Ancillary Agreements and all obligations of
Borrower under the Security Agreement and the Ancillary Agreements, to
require the Borrower to make a Default Payment ("Default Payment").
The Default Payment shall be 130% 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.

Default Payment Date.  The Default Payment shall be due and payable
immediately on the date that the Holder has exercised its rights
pursuant to Section 5.1 ("Default Payment Date").

Cumulative Remedies.  The remedies under this Note shall be cumulative.

MISCELLANEOUS

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.

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.

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.

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.

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.

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.

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.

Security Interest and Guarantee.  The Holder has been granted a
security interest (i) in certain assets of the Borrower and its
Subsidiaries as more fully described in the Security Agreement and (ii)
pursuant to the Stock Pledge Agreement dated as of the date hereof.
The obligations of the Borrower under this Note are guaranteed by
certain Subsidiaries of the Borrower pursuant to the Subsidiary
Guaranty dated as of the date hereof.

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

IN WITNESS WHEREOF, the Borrower has caused this Secured Convertible
Minimum Borrowing Note to be signed in its name effective as of this
28th day of July, 2004.

GLOBAL DIGITAL SOLUTIONS, INC.
By:__________________________________
Name:
Title:

WITNESS:

NOTICE OF CONVERSION

(To be executed by the Holder in order to convert the Note)

The undersigned hereby elects to convert $_________ of the principal
and $_________ of the interest due on the Secured Convertible Minimum
Borrowing Note issued by Global Digital Solutions, Inc. on July 28,
2004 into Shares of Common Stock of Global Digital Solutions, Inc. (the
"Borrower") according to the conditions set forth in such Note, as of
the date written below.

Date of Conversion:
Conversion Price:
Shares To Be Delivered:
Signature:
Print Name:
Address:

Holder  DWAC instructions

(continued from previous page)

(continue.)

10THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON
STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND ANY
APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO GLOBAL DIGITAL SOLUTIONS, INC. THAT SUCH REGISTRATION
IS NOT REQUIRED.

Right to Purchase 1,111,111 Shares of Common Stock of
Global Digital Solutions, Inc.
(subject to adjustment as provided herein)

                     COMMON STOCK PURCHASE WARRANT

No. _________________	Issue Date:  July 28, 2004

GLOBAL DIGITAL SOLUTIONS, INC., a corporation organized under the laws
of the State of New Jersey ("GDSI"), hereby certifies that, for value
received, LAURUS MASTER FUND, LTD., or assigns (the "Holder"), is
entitled, subject to the terms set forth below, to purchase from the
Company (as defined herein) from and after the Issue Date of this
Warrant and at any time or from time to time before 5:00 p.m., New York
time, through the close of business July 28, 2011 (the "Expiration
Date"), up to 1,111,111 fully paid and nonassessable shares of Common
Stock (as hereinafter defined), $0.001 par value per share, at the
applicable Exercise Price per share (as defined below).  The number and
character of such shares of Common Stock and the applicable Exercise
Price per share are subject to adjustment as provided herein.
As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

(a)	The term "Company" shall include GDSI and any corporation which
shall succeed, or assume the obligations of, GDSI hereunder.

(b)	The term "Common Stock" includes (i) the Company's Common Stock,
par value $0.001 per share; and (ii) any other securities into which or
for which any of the securities described in (a) may be converted or
exchanged pursuant to a plan of recapitalization, reorganization,
merger, sale of assets or otherwise.

(c)	The term "Other Securities" refers to any stock (other than
Common Stock) and other securities of the Company or any other person
(corporate or otherwise) which the holder of the Warrant at any time
shall be entitled to receive, or shall have received, on the exercise
of the Warrant, in lieu of or in addition to Common Stock, or which at
any time shall be issuable or shall have been issued in exchange for or
in replacement of Common Stock or Other Securities pursuant to Section
4 or otherwise.

(d)	The "Exercise Price" applicable under this Warrant shall be equal
to a price of $1.07.

Exercise of Warrant.

Number of Shares Issuable upon Exercise.  From and after the date
hereof through and including the Expiration Date, the Holder shall be
entitled to receive, upon exercise of this Warrant in whole or in part,
by delivery of an original or fax copy of an exercise notice in the
form attached hereto as Exhibit A (the "Exercise Notice"), shares of
Common Stock of the Company, subject to adjustment pursuant to Section
4.

Fair Market Value.  For purposes hereof, the "Fair Market Value" of a
share of Common Stock as of a particular date (the "Determination
Date") shall mean:

If the Company's Common Stock is traded on the American Stock Exchange
or  another national exchange or is quoted on the National or SmallCap
Market of The Nasdaq Stock Market, Inc. ("Nasdaq"), then the closing or
last sale price, respectively, reported for the last business day
immediately preceding the Determination Date.

If the Company's Common Stock is not traded on the American Stock
Exchange or another national exchange or on the Nasdaq but is traded on
the NASD OTC Bulletin Board, then the mean of the average of the
closing bid and asked prices reported for the last business day
immediately preceding the Determination Date.

Except as provided in clause (d) below, if the Company's Common Stock
is not publicly traded, then as the Holder and the Company agree or in
the absence of agreement by arbitration in accordance with the rules
then in effect of the American Arbitration Association, before a single
arbitrator to be chosen from a panel of persons qualified by education
and training to pass on the matter to be decided.

If the Determination Date is the date of a liquidation, dissolution or
winding up, or any event deemed to be a liquidation, dissolution or
winding up pursuant to the Company's charter, then all amounts to be
payable per share to holders of the Common Stock pursuant to the
charter in the event of such liquidation, dissolution or winding up,
plus all other amounts to be payable per share in respect of the Common
Stock in liquidation under the charter, assuming for the purposes of
this clause (d) that all of the shares of Common Stock then issuable
upon exercise of the Warrant are outstanding at the Determination Date.
Company Acknowledgment.  The Company will, at the time of the exercise
of the Warrant, upon the request of the holder hereof acknowledge in
writing its continuing obligation to afford to such holder any rights
to which such holder shall continue to be entitled after such exercise
in accordance with the provisions of this Warrant. If the holder shall
fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such holder any such
rights.

Trustee for Warrant Holders.  In the event that a bank or trust company
shall have been appointed as trustee for the holders of the Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all
the powers and duties of a warrant agent (as hereinafter described) and
shall accept, in its own name for the account of the Company or such
successor person as may be entitled thereto, all amounts otherwise
payable to the Company or such successor, as the case may be, on
exercise of this Warrant pursuant to this Section 1.

Procedure for Exercise.

Delivery of Stock Certificates, Etc., on Exercise.  The Company agrees
that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such
shares as of the close of business on the date on which this Warrant
shall have been surrendered and payment made for such shares in
accordance herewith. As soon as practicable after the exercise of this
Warrant in full or in part, and in any event within three (3) business
days thereafter, the Company at its expense (including the payment by
it of any applicable issue taxes) will cause to be issued in the name
of and delivered to the Holder, or as such Holder (upon payment by such
Holder of any applicable transfer taxes) may direct in compliance with
applicable securities laws, a certificate or certificates for the
number of duly and validly issued, fully paid and nonassessable shares
of Common Stock (or Other Securities) to which such Holder shall be
entitled on such exercise, plus, in lieu of any fractional share to
which such holder would otherwise be entitled, cash equal to such
fraction multiplied by the then Fair Market Value of one full share,
together with any other stock or other securities and property
(including cash, where applicable) to which such Holder is entitled
upon such exercise pursuant to Section 1 or otherwise.

Exercise.  Payment may be made either (i) in cash or by certified or
official bank check payable to the order of the Company equal to the
applicable aggregate Exercise Price, (ii) by delivery of the Warrant,
or shares of Common Stock and/or Common Stock receivable upon exercise
of the Warrant in accordance with Section (b) below, or (iii) by a
combination of any of the foregoing methods, for the number of Common
Shares specified in such Exercise Notice (as such exercise number shall
be adjusted to reflect any adjustment in the total number of shares of
Common Stock issuable to the Holder per the terms of this Warrant) and
the Holder shall thereupon be entitled to receive the number of duly
authorized, validly issued, fully-paid and non-assessable shares of
Common Stock (or Other Securities) determined as provided herein.
Notwithstanding any provisions herein to the contrary, if the Fair
Market Value of one share of Common Stock is greater than the Exercise
Price (at the date of calculation as set forth below), in lieu of
exercising this Warrant for cash, the Holder may elect to receive
shares equal to the value (as determined below) of this Warrant (or the
portion thereof being exercised) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed
Exercise Notice in which event the Company shall issue to the Holder a
number of shares of Common Stock computed using the following formula:
X=Y	(A-B)
	A

Where X =	the number of shares of Common Stock to be issued to the
Holder

Y =	the number of shares of Common Stock purchasable under the
Warrant or, if only a portion of the Warrant is being exercised, the
portion of the Warrant being exercised (at the date of such
calculation)

A =	the Fair Market Value of one share of the Company's Common Stock
(at the date of such calculation)

B =	Exercise Price (as adjusted to the date of such calculation)
Effect of Reorganization, Etc.; Adjustment of Exercise Price.
Reorganization, Consolidation, Merger, Etc.  In case at any time or
from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under
any plan or arrangement contemplating the dissolution of the Company,
then, in each such case, as a condition to the consummation of such a
transaction, proper and adequate provision shall be made by the Company
whereby the Holder of this Warrant, on the exercise hereof as provided
in Section 1 at any time after the consummation of such reorganization,
consolidation or merger or the effective date of such dissolution, as
the case may be, shall receive, in lieu of the Common Stock (or Other
Securities) issuable on such exercise prior to such consummation or
such effective date, the stock and other securities and property
(including cash) to which such Holder would have been entitled upon
such consummation or in connection with such dissolution, as the case
may be, if such Holder had so exercised this Warrant, immediately prior
thereto, all subject to further adjustment thereafter as provided in
Section 4.

Dissolution.  In the event of any dissolution of the Company following
the transfer of all or substantially all of its properties or assets,
the Company, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to
the Holder the stock and other securities and property (including cash,
where applicable) receivable by the Holder of the Warrant pursuant to
Section 3.1, or, if the Holder shall so instruct the Company, to a bank
or trust company specified by the Holder and having its principal
office in New York, NY as trustee for the Holder of the Warrant.

Continuation of Terms.  Upon any reorganization, consolidation, merger
or transfer (and any dissolution following any transfer) referred to in
this Section 3, this Warrant shall continue in full force and effect
and the terms hereof shall be applicable to the shares of stock and
other securities and property receivable on the exercise of this
Warrant after the consummation of such reorganization, consolidation or
merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of
any such stock or other securities, including, in the case of any such
transfer, the person acquiring all or substantially all of the
properties or assets of the Company, whether or not such person shall
have expressly assumed the terms of this Warrant as provided in Section
4.  In the event this Warrant does not continue in full force and
effect after the consummation of the transactions described in this
Section 3, then the Company's securities and property (including cash,
where applicable) receivable by the Holders of the Warrant will be
delivered to Holder or the Trustee as contemplated by Section 3.2.
Extraordinary Events Regarding Common Stock.  In the event that the
Company shall (a) issue additional shares of the Common Stock as a
dividend or other distribution on outstanding Common Stock, (b)
subdivide its outstanding shares of Common Stock, or (c) combine its
outstanding shares of the Common Stock into a smaller number of shares
of the Common Stock, then, in each such event, the Exercise Price
shall, simultaneously with the happening of such event, be adjusted by
multiplying the then Exercise Price by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be
the number of shares of Common Stock outstanding immediately after such
event, and the product so obtained shall thereafter be the Exercise
Price then in effect. The Exercise Price, as so adjusted, shall be
readjusted in the same manner upon the happening of any successive
event or events described herein in this Section 4.  The number of
shares of Common Stock that the holder of this Warrant shall
thereafter, on the exercise hereof as provided in Section 1, be
entitled to receive shall be increased to a number determined by
multiplying the number of shares of Common Stock that would otherwise
(but for the provisions of this Section 4) be issuable on such exercise
by a fraction of which (a) the numerator is the Exercise Price that
would otherwise (but for the provisions of this Section 4) be in
effect, and (b) the denominator is the Exercise Price in effect on the
date of such exercise.

Certificate as to Adjustments.  In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities)
issuable on the exercise of the Warrant, the Company at its expense
will promptly cause its Chief Financial Officer or other appropriate
designee to compute such adjustment or readjustment in accordance with
the terms of the Warrant and prepare a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a)
the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold
or deemed to have been issued or sold, (b) the number of shares of
Common Stock (or Other Securities) outstanding or deemed to be
outstanding, and (c) the Exercise Price and the number of shares of
Common Stock to be received upon exercise of this Warrant, in effect
immediately prior to such adjustment or readjustment and as adjusted or
readjusted as provided in this Warrant.  The Company will forthwith
mail a copy of each such certificate to the holder of the Warrant and
any Warrant agent of the Company (appointed pursuant to Section 11
hereof).

Reservation of Stock, Etc., Issuable on Exercise of Warrant.  The
Company will at all times reserve and keep available, solely for
issuance and delivery on the exercise of the Warrant, shares of Common
Stock (or Other Securities) from time to time issuable on the exercise
of the Warrant.

Assignment; Exchange of Warrant.  Subject to compliance with applicable
securities laws, this Warrant, and the rights evidenced hereby, may be
transferred by any registered holder hereof (a "Transferor") in whole
or in part.  On the surrender for exchange of this Warrant, with the
Transferor's endorsement in the form of Exhibit B attached hereto (the
"Transferor Endorsement Form") and together with evidence reasonably
satisfactory to the Company demonstrating compliance with applicable
securities laws, which shall include, without limitation, a legal
opinion from the Transferor's counsel that such transfer is exempt from
the registration requirements of applicable securities laws, the
Company at its expense but with payment by the Transferor of any
applicable transfer taxes) will issue and deliver to or on the order of
the Transferor thereof a new Warrant of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor
Endorsement Form (each a "Transferee"), calling in the aggregate on the
face or faces thereof for the number of shares of Common Stock called
for on the face or faces of the Warrant so surrendered by the
Transferor.

Replacement of Warrant.  On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any
such mutilation, on surrender and cancellation of this Warrant, the
Company at its expense will execute and deliver, in lieu thereof, a new
Warrant of like tenor.

Registration Rights.  The Holder of this Warrant has been granted
certain registration rights by the Company.  These registration rights
are set forth in a Registration Rights Agreement entered into by the
Company and Purchaser dated as of even date of this Warrant.
Maximum Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number
of shares of Common Stock beneficially owned by the Holder and its
affiliates on an exercise date, and (ii) the number of shares of Common
Stock issuable upon the exercise of this Warrant with respect to which
the determination of this proviso is being made on an exercise date,
which would result in beneficial ownership by the Holder and its
affiliates of more than four and ninety nine percent (4.99%) of the
outstanding shares of Common Stock of the Company on such date.  For
the purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and
Regulation 13d-3 thereunder.  Notwithstanding the foregoing, the
restriction described in this paragraph may be revoked upon seventy
five (75) days prior notice from the Holder to the Company and is null
and void upon the occurrence and the continuance of an Event of Default
under any Note made by the Company to the Holder on the date hereof in
connection with the issuance of this Warrant.

Warrant Agent.  The Company may, by written notice to the each Holder
of the Warrant, appoint an agent for the purpose of issuing Common
Stock (or Other Securities) on the exercise of this Warrant pursuant to
Section 1, exchanging this Warrant pursuant to Section 7, and replacing
this Warrant pursuant to Section 8, or any of the foregoing, and
thereafter any such issuance, exchange or replacement, as the case may
be, shall be made at such office by such agent.

Transfer on the Company's Books.  Until this Warrant is transferred on
the books of the Company, the Company may treat the registered holder
hereof as the absolute owner hereof for all purposes, notwithstanding
any notice to the contrary.

Notices, Etc.  All notices and other communications from the Company to
the Holder of this Warrant shall be mailed by first class registered or
certified mail, postage prepaid, at such address as may have been
furnished to the Company in writing by such Holder or, until any such
Holder furnishes to the Company an address, then to, and at the address
of, the last Holder of this Warrant who has so furnished an address to
the Company.

Miscellaneous.  This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver,
discharge or termination is sought. This Warrant shall be governed by
and construed in accordance with the laws of State of New York without
regard to principles of conflicts of laws.  Any action brought
concerning the transactions contemplated by this Warrant shall be
brought only in the state courts of New York or in the federal courts
located in the state of New York; provided, however, that the Holder
may choose to waive this provision and bring an action outside the
state of New York.  The individuals executing this Warrant on behalf of
the Company agree to submit to the jurisdiction of such courts and
waive trial by jury.  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 Warrant 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 enforceability of any other
provision of this Warrant.  The headings in this Warrant are for
purposes of reference only, and shall not limit or otherwise affect any
of the terms hereof.  The invalidity or unenforceability of any
provision hereof shall in no way affect the validity or enforceability
of any other provision.  The Company acknowledges that legal counsel
participated in the preparation of this Warrant 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 Warrant to favor any party against the other
party.

IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

		GLOBAL DIGITAL SOLUTIONS, INC.

WITNESS:
		By:
		Name:
		Title:

Exhibit A
FORM OF SUBSCRIPTION
(TO BE SIGNED ONLY ON EXERCISE OF WARRANT)

TO:	Global Digital Solutions, Inc.

	Attention:	Chief Financial Officer

The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check
applicable box):
_______  shares of the Common Stock covered by such Warrant; or

	  the maximum number of shares of Common Stock covered by such
Warrant pursuant to the cashless exercise procedure set forth in
Section 2.

The undersigned herewith makes payment of the full Exercise Price for
such shares at the price per share provided for in such Warrant, which
is $___________.  Such payment takes the form of (check applicable box
or boxes):
_______   $__________ in lawful money of the United States; and/or

_______   the cancellation of such portion of the attached Warrant as
is exercisable for a total of _______ shares of Common Stock (using a
Fair Market Value of $_______ per share for purposes of this
calculation); and/or

_______ the cancellation of such number of shares of Common Stock as is
necessary, in accordance with the formula set forth in Section 2.2, to
exercise this Warrant with respect to the maximum number of shares of
Common Stock purchasable pursuant to the cashless exercise procedure
set forth in Section 2.

The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to
______________________________________________ whose address is
_______________________________________________________________________
____.
The undersigned represents and warrants that all offers and sales by
the undersigned of the securities issuable upon exercise of the within
Warrant shall be made pursuant to registration of the Common Stock
under the Securities Act of 1933, as amended (the "Securities Act") or
pursuant to an exemption from registration under the Securities Act.
Dated:

(Signature must conform to name of holder as specified on the face of
the Warrant)

Address:

Exhibit B
FORM OF TRANSFEROR ENDORSEMENT
(TO BE SIGNED ONLY ON TRANSFER OF WARRANT)
For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading
"Transferees" the right represented by the within Warrant to purchase
the percentage and number of shares of Common Stock of Global Digital
Solutions, Inc. into which the within Warrant relates specified under
the headings "Percentage Transferred" and "Number Transferred,"
respectively, opposite the name(s) of such person(s) and appoints each
such person Attorney to transfer its respective right on the books of
Global Digital Solutions, Inc. with full power of substitution in the
premises.

Transferees	              	  Address         Percentage

Transferred          Number Transferred

Dated:

(Signature must conform to name of holder as specified on the face of
the Warrant)

  Address:

  SIGNED IN THE PRESENCE OF:

 (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

(Name)

B-1

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