Document:

Exhibit 10.1

 

 

 

NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (i) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (ii) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (iii) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

10%
CONVERTIBLE NOTE

 

Maturity
Date of January 26, 2016

 

$66,000
January 26, 2015 the “Issuance Date”

 

Principal
Amount: $66,000

Purchase
Price: $60,000

 

FOR
VALUE RECEIVED, Global Digital Solutions Inc., a New
Jersey Corporation (the “Company”) doing business in West Palm Beach,
FL, hereby promises to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns
(the “Holder”) the principal amount of Sixty-Six
Thousand Dollars ($66,000), on demand of the Holder at any time on or after January
26, 2016 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate
of Ten Percent (10%) per annum (the “Interest Rate”) from the date
hereof (the “Issuance Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by
prepayment or otherwise; provided, that any amount of principal or interest on this Note which is not paid when due shall
bear interest at such rate on the unpaid principal balance hereof plus Default Interest from the due date thereof until the same
is paid in full. The Principal Amount is Sixty-Six Thousand Dollars Dollars ($66,000) and the consideration paid by the
Holder is Sixty Thousand Dollars ($60,000) (the “Consideration”) (there exists a $6,000 original issue discount (the
“OID”)). Interest shall commence accruing on the Issuance Date, shall be computed on the basis of a 365-day year and
the actual number of days elapsed and shall accrue daily and, after the Maturity Date, compound quarterly.

 

		1.	Payments
                                         of Principal and Interest. 
	 	 	 

			

		a.	Payment
                                         of Principal. Until the One Hundred and Fiftieth (150th) day after the Issuance
                                         Date the Company may pay the principal at a cash redemption of 150% without the Holder’s
                                         consent. After the 150th day, up to, upon or after the Maturity Date, this
                                         Note has a cash redemption premium of 150% of the principal amount, in addition to outstanding
                                         interest, which may only be exercised upon approval and acceptance by JSJ Investments
                                         Inc. The principal balance of this Note shall be paid to the Holder hereof on demand.
	 	 	 

			

		b.	Default
                                         Interest. Any amount of principal on this Note which
                                         is not paid when due shall bear Twelve Percent
                                         (10%) interest per annum from the date thereof until the same
                                         is paid (“Default Interest”) and the Holder, at the Holder’s sole discretion,
                                         may include any accrued but unpaid Default Interest in the Conversion Amount.
	 	 	 

			

		c.	General
                                         Payment Provisions. This Note shall be made
                                         in lawful money of the United States of America by check to such account as the Holder
                                         may from time to time designate by written notice to the Company in accordance with the
                                         provisions of this Note. Whenever any amount expressed to be due by the terms of this
                                         Note is due on any day which is not a Business Day (as defined below), the same shall
                                         instead be due on the next succeeding day which is a Business Day and, in the case of
                                         any interest payment date which is not the date on which this Note is paid in full, the
                                         extension of the due date thereof shall not be taken into account for purposes of determining
                                         the amount of interest due on such date. For purposes of this Note, “Business Day”
                                         shall mean any day other than a Saturday, Sunday or a day on which commercial banks in
                                         the State of Texas are authorized or required by law or executive order to remain closed.
	 	 	 

			

		2.	Conversion
                                         of Note. At any time prior to the Maturity Date, or after the Maturity Date, the Conversion
                                         Amount of this Note shall be convertible into shares
                                         of the Company’s common stock, share (the “Common Stock”), on the terms
                                         and conditions set forth in this Paragraph 2.
	 	 	 

			

    	1

    	 

    

 

 

 

		a.	Certain
                                         Defined Terms. For purposes of this Note, the following terms shall have the following
                                         meanings:

			

 

“Conversion
Amount” means the sum of (A) the principal amount of this Note
to be converted with respect to which this determination is being made, (B) Interest; and (C) Default Interest, if any, on unpaid
interest and principal, if so included at the Holder’s sole discretion.

 

“Conversion
Price” means the lower of: (i) a 40% discount to the lowest trading price during the previous twenty (20) trading
days to the date of Conversion; or (ii) a 40% discount to the lowest trading price during the previous twenty (20) trading days
before the date that this note was executed.

 

“Person”
means an individual, a limited liability company, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

“Shares”
means the Shares of the Company into which any balance on this Note may be converted upon submission of a “Conversion Notice”
attached hereto as Exhibit 1.

 

		b.	Holder’s
                                         Conversion Rights. At any time or times on or after the Issuance Date, the Holder shall
                                         be entitled to convert all of the outstanding and unpaid principal amount of this Note
                                         into fully paid and non-assessable shares of Common Stock in accordance with the stated
                                         Conversion Price. 
	 	 	 

			

		c.	Fractional
                                         Shares. The Company shall not issue any fraction
                                         of a share of Common Stock upon any conversion; if such issuance would result
                                         in the issuance of a fraction of a share of Common Stock, the Company shall round such
                                         fraction of a share of Common Stock up to the nearest whole share.
	 	 	 

			

		d.	Conversion
                                         Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(1)(ii) and Rule
                                         144(d)(1)(ii) as promulgated by the Securities and Exchange Commission under the Securities
                                         Act of 1933, as amended, into free trading shares at the Conversion Price.
	 	 	 

			

		e.	Mechanics
                                         of Conversion. The conversion of this Note shall be conducted in the following manner:

			

 

Holder’s
Conversion Requirements. To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by the
Holder (the “Conversion Date”), the Holder hereof shall transmit by email, facsimile or otherwise deliver, for receipt
on or prior to 11:59 p.m., Eastern Time, on such date or on the next business day, a copy
of a fully executed notice of conversion in the form attached hereto as Exhibit 1 to the Company.

 

Company’s
Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in
no event later than one (1) Business Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier,
a confirmation of receipt of such Conversion Notice to such Holder indicating that the Company will process such Conversion Notice
in accordance with the terms herein. Within two (2) Business Days after the date the Conversion Notice is delivered, the Company
shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the Company
be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date the Conversion was delivered,
have surrendered to FedEx for delivery the next day to the address as specified in the Conversion Notice, a certificate, registered
in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled.

 

Record
Holder. The person or persons entitled to receive the shares of Common Stock issuable upon
a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock
on the Conversion Date.

 

Timely
Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond within one business day to Holder confirming
the details of the Conversion, and provide within two business days the Shares requested in the Conversion Notice.

 

Penalty
for Delinquent Response. If Company fails to deliver for whatever reason (including any neglect or failure by, e.g., the
Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion Notice and within three business
days of the Conversion Date, the Company shall be deemed in “Default of Conversion.” As of the day the Company is
deemed in Default of Conversion, there shall accrue a penalty of Additional Shares due to Holder equal to 25% of the number stated
in the Conversion Notice beginning on the Fourth business day after the date of the Notice. The Additional Shares shall be issued
and the amount of the Note retired will not be reduced beyond that stated in the Conversion Notice. Each additional 5 business
days beyond the Fourth business day after the date of this Notice shall accrue an additional 25% penalty for delinquency, without
any corresponding reduction in the amount due under the Note, for so long as Company fails to provide the Shares so demanded.
Any time after a Default of Conversion the Holder may, at their sole discretion, rescind the Conversion.

 

    	2

    	 

    

 

 

 

Rescindment
of Conversion Notice. If (i) the Company fails to respond to Holder within one business day from the date of Conversion confirming
the details of Conversion, (ii) the Company fails to provide the Shares requested in the Conversion Notice within three business
days from the date of Conversion, (iii) the Holder is unable to procure a legal opinion required to have the Shares issued unrestricted
and/or deposited to sell for any reason related to the Company's standing, (iv) the Holder is unable to deposit the Shares requested
in the Conversion Notice for any reason related to the Company's standing, or (v) if OTC Markets changes the Company's designation
to 'Limited Information' (Yield), 'No Information' (Stop Sign), 'Caveat Emptor' (Skull and Crossbones), or 'OTC', 'Other OTC'
or 'Grey Market' (Exclamation Mark Sign) on the day of or any day after the date of Conversion, the Holder maintains the option
and sole discretion to rescind the Conversion Notice ("Rescindment") with a "Notice of Rescindment."

 

Transfer
Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder. The Company shall
pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution of this Convertible Note and processing
of any Notice of Conversion, including but not limited to the cost of obtaining a legal opinion with regard to the conversion.
The Holder will deduct legal fees in the amount of $2,000 from the principal payment of the Convertible Note. The Holder will
deduct 3rd party due diligence fees due Carter, Terry & Co. in the amount of $6,000 from the principal payment
of the Convertible Note.

 

Conversion
Right Unconditional. If the Holder shall provide a Notice of Conversion as provided herein, the Company’s obligations to
deliver Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment, or alleged
breach by the Holder of any obligation to the Company.

 

		3.	Other
                                         Rights of Holders: Reorganization, Reclassification, Consolidation, Merger or Sale. Any
                                         recapitalization, reorganization, reclassification, consolidation, merger, sale
                                         of all or substantially all of the Company’s assets to another Person or other
                                         transaction which is effected in such a way that holders of Common Stock are entitled
                                         to receive (either directly or upon subsequent liquidation) stock, securities or assets
                                         with respect to or in exchange for Common Stock is referred to herein as “Organic
                                         Change.” Prior to the consummation of any
                                         (i) Organic Change or (ii) other Organic Change following which the Company is
                                         not a surviving entity, the Company will secure from the Person purchasing such assets
                                         or the successor resulting from such Organic Change (in each case, the “Acquiring
                                         Entity”) a written agreement (in form and substance
                                         reasonably satisfactory to the Holder) to deliver to Holder in exchange for this
                                         Note, a security of the Acquiring Entity evidenced by a written instrument substantially
                                         similar in form and substance to this Note, and reasonably satisfactory to the Holder.
                                         Prior to the consummation of any other Organic Change, the Company shall make appropriate
                                         provision (in form and substance reasonably satisfactory to the Holders of a majority
                                         of the Conversion Amount of the Notes then outstanding) to ensure that
                                         each of the Holders will thereafter have the right to acquire and receive in lieu of
                                         or in addition to (as the case may be) the shares of Common Stock immediately
                                         theretofore acquirable and receivable upon the conversion of such Holder’s Note,
                                         such shares of stock, securities or assets that would have been issued or payable in
                                         such Organic Change with respect to or in exchange for the number of shares of Common
                                         Stock which would have been acquirable and receivable upon the conversion of such Holder’s
                                         Note as of the date of such Organic Change (without taking into account any limitations
                                         or restrictions on the convertibility of the Note). All provisions of this Note must
                                         be included to the satisfaction of Holder in any new Note created pursuant to this section.
	 	 	 

			

		4.	Representations
                                         and Warranties of the Company. In connection with the transactions provided for herein,
                                         the Company hereby represents and warrants to the Holders the following.
	 	 	 

			

		a.	Organization,
                                         Good Standing and Qualification. The Company is a corporation duly organized, validly
                                         existing and in good standing under the laws of the state of its incorporation and has
                                         all requisite corporate power and authority to carry on its business as now conducted.
                                         The Company is duly qualified to transact business and is in good standing in each jurisdiction
                                         in which the failure to so qualify would have a material adverse effect on its business
                                         or properties.
	 	 	 

			

		b.	Authorization.
                                         All corporate action has been taken on the part of the Company, its officers, directors
                                         and stockholders necessary for the authorization, execution and delivery of this Agreement.
                                         The Company has taken all corporate action required to make all of the obligations of
                                         the Company reflected in the provisions of this Agreement, valid and enforceable obligations.
                                         The shares of capital stock issuable upon conversion of the Notes have been authorized
                                         or will be authorized prior to the issuance of such shares.
	 	 	 

			

		c.	Fiduciary
                                         Obligations. The Company hereby represents that it intends to use the proceeds of the
                                         Notes primarily for the operations of its business and not for any personal, family,
                                         or household purpose. The Company hereby represents that its board of directors, in the
                                         exercise of its fiduciary duty, has approved the execution of this Agreement based upon
                                         a reasonable belief that the loan provided for herein is appropriate for the Company
                                         after reasonable inquiry concerning its financial objectives and financial situation.

 

    	3

    	 

    

 

 

 

		5.	Covenants
                                         of the Company. So long as the Company shall have any obligations under this Note, the
                                         Company shall not without the Holder’s written consent pay, declare or set apart
                                         for such payment any dividend or other distribution (whether in cash, property, or other
                                         securities) on share of capital stock solely in the form of additional shares of Common
                                         Stock.
	 	 	 

			

		a.	So
                                         long as the Company shall have any obligations under this Note, the Company shall not
                                         without the Holder’s written consent redeem, repurchase, or otherwise acquire (whether
                                         for cash or in exchange for property or other securities) in any one transaction or series
                                         of transactions any shares of capital stock of the Company or any warrants, rights, or
                                         options to acquire any such shares.
	 	 	 

			

		b.	So
                                         long as the Company shall have any obligations under this Note, the Company shall not
                                         without the Holder’s written consent sell, lease, or otherwise dispose of a significant
                                         portion of its assets outside the ordinary course of business. Any consent to the disposition
                                         of any assets may be conditioned upon a specified use of the proceeds thereof.

			

 

		6.	Issuance
                                         of Common Stock Equivalents. If the Company, at any time after the Issuance Date, shall
                                         issue any securities convertible into or exchangeable for, directly or indirectly, Common
                                         Stock (“Convertible Securities”), other than the Note, or any rights or warrants
                                         or options to purchase any such Common Stock or Convertible Securities, shall be issued
                                         or sold (collectively, the “Common Stock Equivalents”) and the aggregate
                                         of the price per share for which Additional Shares of Common Stock may be issuable thereafter
                                         pursuant to such Common Stock Equivalent, plus the consideration received by the Company
                                         for issuance of such Common Stock Equivalent divided by the number of shares of Common
                                         Stock issuable pursuant to such Common Stock Equivalent (the “Aggregate Per Common
                                         Share Price”) shall be less than the applicable Conversion Price then in effect,
                                         or if, after any such issuance of Common Stock Equivalents, the price per share for which
                                         Additional Shares of Common Stock may be issuable thereafter is amended or adjusted,
                                         and such price as so amended shall make the Aggregate Per Share Common Price be less
                                         than the applicable Conversion Price in effect at the time of such amendment or adjustment,
                                         then the applicable Conversion Price upon each such issuance or amendment shall be adjusted
                                         on the basis that (1) the maximum number of Additional Shares of Common Stock issuable
                                         pursuant to all such Common Stock Equivalents shall be deemed to have been issued (whether
                                         or not such Common Stock Equivalents are actually then exercisable, convertible or exchangeable
                                         in whole or in part) as of the earlier of (A) the date on which the Company shall enter
                                         into a firm contract for the issuance of such Common Stock Equivalent, or (B) the date
                                         of actual issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion
                                         Price shall be made under this subsection (vii) upon the issuance of any Convertible
                                         Security which is issued pursuant to the exercise of any warrants or other subscription
                                         or purchase rights therefor, if any adjustment shall previously have been made to the
                                         exercise price of such warrants then in effect upon the issuance of such warrants or
                                         other rights pursuant to this subsection (vii). No adjustment shall be made to the Conversion
                                         Price upon the issuance of Common Stock pursuant to the exercise, conversion or exchange
                                         of any Convertible Security or Common Stock Equivalent where an adjustment to the Conversion
                                         Price was made as a result of the issuance or purchase of any Convertible Security or
                                         Common Stock Equivalent.

			

 

		7.	Reservation
                                         of Shares. The Company shall at all times, so long as any principal amount of the Note
                                         is outstanding, reserve and keep available out of its authorized and unissued Common
                                         Stock, solely for the purpose of effecting the conversion of the Note, such number
                                         of shares of Common Stock as shall at all times be sufficient to effect the conversion
                                         of all of the principal amount of the Note then outstanding. The initial number of shares
                                         of Common Stock reserved for conversions of the Notes shall be calculated as four times
                                         the number of shares necessary to convert the entire value of the Note on the day it
                                         was executed, unless the Holder stipulates otherwise in the “Irrevocable Letter
                                         of Instructions to the Transfer Agent,” and each increase in the number of shares
                                         so reserved shall be allocated pro rata among the Holders of the Note based on the principal
                                         and interest amount of the Notes held by each Holder at the time of issuance of the Notes
                                         or increase in the number of reserved shares, as the case may be. In the event a Holder
                                         shall sell or otherwise transfer any of such Holder’s Note, each transferee shall
                                         be allocated a pro rata portion of the number of reserved shares of Common Stock reserved
                                         for such transferor. Any shares of Common Stock reserved and allocated to any Person
                                         which ceases to hold any Note shall be allocated to the remaining Holders, pro rata based
                                         on the principal amount of the Note then held by such Holders.

			

 

		8.	Voting
                                         Rights. Holders of this Note shall have no voting rights, except as required by law.

			

 

		9.	Reissuance
                                         of Note. In the event of a conversion or redemption pursuant to this Note of less than
                                         all of the Conversion Amount represented by this Note, the Company shall promptly cause
                                         to be issued and delivered to the Holder, upon tender by the Holder of the Note
                                         converted or redeemed, a new note of like tenor
                                         representing the remaining principal amount of this Note which has not been so converted
                                         or redeemed and which is in substantially the same form as this Note, as set forth
                                         above.

			

 

    	4

    	 

    

 

 

 

		10.	Default
                                         and Remedies. 
	 	 	 

			

		a.	Event
                                         of Default. An “Event of Default” is:
                                         (i) default for ten (10) days in payment of interest or Default Interest on this
                                         Note; (ii) default in payment of the principal amount of this Note when due; (iii) failure
                                         by the Company for thirty (30) days after notice to it to comply with any other material
                                         provision of this Note; (iv) breach of any covenants, warranties, or representations
                                         by the Company herein; (v) cessation of operations by the Company or a material subsidiary;
                                         (vi) if the Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences
                                         a voluntary case; (B) consents to the entry of an order for relief against it in an involuntary
                                         case; (C) consents to the appointment of a Custodian of it or for all or substantially
                                         all of its property; (D) makes a general assignment for the benefit of its creditors;
                                         or (E) admits in writing that it is generally unable
                                         to pay its debts as the same become due; or (vi) a court of competent jurisdiction enters
                                         an order or decree under any Bankruptcy Law that: (I) is for relief against the
                                         Company in an involuntary case; (2) appoints a Custodian of the Company or for all or
                                         substantially all of its property; or (3) orders the liquidation of the Company or any
                                         subsidiary, and the order or decree remains unstayed and in effect for thirty
                                         (30) days. The Term “Bankruptcy Law”
                                         means Title 11, U.S. Code, or any similar Federal or State Law for the relief
                                         of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator
                                         or similar official under any Bankruptcy Law.
	 	 	 

			

		b.	Remedies.
                                         If an Event of Default occurs and is continuing,
                                         the Holder of this Note may declare all of this Note, including any interest and
                                         Default Interest and other amounts due, to be due and payable immediately.

			

 

		11.	Vote
                                         to Change the Terms of this Note. This Note and any provision hereof may only be amended
                                         by an instrument in writing signed by the Company and holders of a majority of the aggregate
                                         Conversion Amount of the Notes then outstanding.

			

 

		12.	Lost
                                         or Stolen Note. Upon receipt by the Company of evidence
                                         satisfactory to the Company of the loss, theft, destruction or mutilation of this
                                         Note, and, in the case of loss, theft or destruction, of an indemnification
                                         undertaking by the Holder to the Company in a form reasonably acceptable to the Company
                                         and, in the case of mutilation, upon surrender
                                         and cancellation of the Notes, the Company shall execute and deliver
                                         a new Note of like tenor and date and in substantially the same form as this Note; provided,
                                         however, the Company shall not be obligated
                                         to re-issue a Note if the Holder contemporaneously requests the Company to convert
                                         such remaining principal amount into Common Stock.

			

 

		13.	Payment
                                         of Collection, Enforcement and Other Costs. If:
                                         (i) this Note is placed in the hands of an attorney for collection or enforcement
                                         or is collected or enforced through any legal proceeding; or (ii) an attorney is retained
                                         to represent the Holder of this Note in any bankruptcy, reorganization, receivership
                                         or other proceedings affecting creditors’
                                         rights and involving a claim under this Note, then the Company shall pay to the
                                         Holder all reasonable attorneys’ fees, costs and expenses incurred in connection
                                         therewith, in addition to all other amounts due hereunder.

			

 

		14.	Cancellation.
                                         After all principal and accrued interest at any
                                         time owed on this Note has been paid in full, this Note shall automatically be
                                         deemed canceled, shall be surrendered to the Company for cancellation and shall not be
                                         reissued.

			

 

		15.	Waiver
                                         of Notice. To the extent permitted by law, the Company hereby waives demand, notice,
                                         protest and all other demands and notices in connection with the delivery, acceptance,
                                         performance, default or enforcement of this Note.

			

 

		16.	Governing
                                         Law. This Note shall be construed and enforced in accordance with, and all questions
                                         concerning the construction, validity, interpretation and performance of this Note shall
                                         be governed by, the laws of the State of Texas, without giving effect to provisions
                                         thereof regarding conflict of laws. Each party hereby
                                         irrevocably submits to the non-exclusive jurisdiction of the state and federal courts
                                         sitting in Texas for the adjudication of
                                         any dispute hereunder or in connection herewith or with
                                         any transaction contemplated hereby or discussed herein, and hereby irrevocably waives,
                                         and agrees not to assert in any suit, action
                                         or proceeding, any claim that it is not personally subject to the jurisdiction of any
                                         such court, that such suit, action or proceeding is brought in an inconvenient forum
                                         or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
                                         waives personal service of process and consents to process being served in any
                                         such suit, action or proceeding by sending by certified mail or overnight
                                         courier a copy thereof to such party at the address for such notices to it under this
                                         Agreement and agrees that such service shall constitute good and sufficient service
                                         of process and notice thereof. Nothing contained
                                         herein shall be deemed to limit in any way any right to serve process in any manner permitted
                                         by law. EACH PARTY HEREBY IRREVOCABLY WAIVES
                                         ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
                                         OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
                                         ANY TRANSACTION CONTEMPLATED HEREBY.

			

 

    	5

    	 

    

 

 

		17.	Remedies,
                                         Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided
                                         in this Note shall be cumulative and in addition to all other remedies available under
                                         this Note, at law or in equity (including a decree
                                         of specific performance and/or other injunctive relief), and no remedy contained
                                         herein shall be deemed a waiver of compliance with the provisions giving rise to such
                                         remedy and nothing herein shall limit a Holder’s right to pursue actual damages
                                         for any failure by the Company to comply with the terms of this Note. The Company covenants
                                         to each Holder of Notes that there shall be no characterization concerning this instrument
                                         other than as expressly provided herein. Amounts set forth or provided for herein with
                                         respect to payments, conversion and the like (and the computation thereof) shall be the
                                         amounts to be received by the Holder thereof and shall not, except as expressly provided
                                         herein, be subject to any other obligation of the Company (or the performance thereof).

			

 

		18.	Specific
                                         Shall Not Limit General; Construction. No specific
                                         provision contained in this Note shall limit or modify any more general provision
                                         contained herein. This Note shall be deemed to be jointly drafted by the Company and
                                         all Holders and shall not be construed against any person as the drafter hereof.

			

 

		19.	Failure
                                         or Indulgence Not Waiver. No failure or delay on
                                         the part of this Note 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.

		

 

		20.	Partial
                                         Payment. In the event of partial payment by the Holder, the principal sum due
                                         to the Holder shall be prorated based on the consideration actually paid by lender such
                                         that the company is only required to repay the amount funded and the company is not required
                                         to repay any unfunded portion of this note. 

			

 

		21.	Entire
                                         Agreement. This Agreement constitutes the full and entire understanding and agreement
                                         between the parties with regard to the subjects herein.  None of the terms of
                                         this Agreement can be waived or modified, except by an express agreement signed by the
                                         Parties.

			

 

		22.	Representations
                                         and Warranties. The Company expressly acknowledges that the Holder, including but not
                                         limited to its officer, directors, employees, agents, and affiliates, have not made any
                                         representation or warranty to it outside the terms of this Agreement. The Company further
                                         acknowledges that there have been no representations or warranties about future financing
                                         or subsequent transactions between the parties.

			

 

		23.	Notices.
                                         All notices and other communications given or made to the Company pursuant hereto shall
                                         be in writing (including facsimile or similar electronic transmissions) and shall be
                                         deemed effectively given:  (i) upon personal delivery, (ii) when sent by electronic
                                         mail or facsimile, as deemed received by the close of business on the date sent, (iii)
                                         five (5) days after having been sent by registered or certified mail, return receipt
                                         requested, postage prepaid or (iv) one (1) day after deposit with a nationally recognized
                                         overnight courier, specifying next day delivery.  All communications shall be sent
                                         either by email, or fax, or to the address specified on the signature page. The physical
                                         address, email address, and phone number provided on the signature page shall be considered
                                         valid pursuant to the above stipulations; should the Company’s contact information
                                         change from that listed on the signature page, it is incumbent on the Company to inform
                                         the Holder.

			

 

    	6

    	 

    

 

 

 

		24.	Severability.
                                         If one or more provisions of this Agreement are held to be unenforceable under applicable
                                         law, such provision shall be excluded from this Agreement and the rest of the Agreement
                                         shall be enforceable in accordance with its terms.

 

		25.	Usury.
                                         If it shall be found that any interest or other amount deemed interest due hereunder
                                         violates the applicable law governing usury, the applicable rate of interest due hereunder
                                         shall automatically be lowered to equal the maximum rate of interest permitted under
                                         applicable law. The Company covenants (to the extent that it may lawfully do so) that
                                         it will not seek to claim or take advantage of any law that would prohibit or forgive
                                         the Company from paying all or a portion of the principal or interest on this Note.

			

 

		26.	Successors
                                         and Assigns. This Agreement shall be binding upon successors and assigns.

			

 

—
SIGNATURE PAGE TO FOLLOW —

 

    	7

    	 

    

 

 

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.

 

	COMPANY:	GLOBAL DIGITAL SOLUTIONS, INC.	 
	 	 	 
	Signature:	/s/ Richard J. Sullivan	 
	Name:	Richard J. Sullivan	 
	Title:	Chief Executive Officer	 
	Address:	777 South Flagler Drive, Suite 800 West	 
	 	West Palm Beach, FL 33401	 
	Email:	dloppert@gdsi.co and richardjsullivan@msn.com	 
	Phone:	(561) 307-1635	 
	 	 	 
	HOLDER:	 
	 	 
	Signature:	 
	 	 
	/s/ Sameer
    Hirji	 
	Sameer
    Hirji, President	 
	JSJ
    Investments Inc.	 
	6060 North Central
    Expressway, Suite 500	 
	Dallas TX 75206	 
	888-503-2599	 

 

    	8

    	 

    

 

 

 

Exhibit
1

 

Conversion
Notice

 

Reference
is made to the Convertible Note issued by Global Digital Solutions, Inc. (the "Note"), dated January 26, 2015 in the
principal amount of $66,000 with 10% interest. This note currently holds a principal balance of $66,000 and accrued interest in
the amount of $_______. The features of conversion stipulate a Conversion Price the lower of (i) a 40% discount to the lowest
trading price during the previous twenty (20) trading days to the date of Conversion; or (ii) a 40% discount to the lowest trading
price during the previous twenty (20) trading days before the date that this note was executed, pursuant to the provisions of
Section 2(a)(ii) in the Note.

 

In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $______ of the PRINCIPAL/INTEREST balance
of the Note, indicated below into shares of Common Stock (the "Common Stock"), of the Company, by tendering the Note
specified as of the date specified below.

 

Date
of Conversion: __________

 

Please
confirm the following information:

 

Conversion
Amount: $ ____________________

 

Conversion
Price: $ ____________________ ( ____ % discount from $ ____________________)

 

Number
of Common Stock to be issued: _____________________________________________________________________

 

Current
Issued/Outstanding: _______________________________________________________________________________

 

Please
issue the common stock into which the note is being converted in the name of the Holder of the Note and transfer the shares electronically
to:

 

[BROKER
INFORMATION]

 

Holder
Authorization:

JSJ Investments Inc.

6060 North Central Expressway, Suite 500

Dallas TX 75206

888-503-2599

 

Tax
ID: 20-2122354 

Sameer Hirji, President

 

Date:

[Continued on Next Page]

 

    	9

    	 

    

 

 

 

PLEASE
BE ADVISED, pursuant to Section 2(e)(ii) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the
Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion
Notice, SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING
THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after the
date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated
in the Conversion Notice; should the Company be unable to transfer the shares electronically, they shall, within two (2) Business
Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which
the Holder shall be entitled.”

 

Signature:

 

	/s/ Richard
    J. Sullivan	 	 
	Richard J. Sullivan	 	 
	CEO	 	 
	Global Digital Solutions, Inc.	 	 

 

 

10Exhibit 10.2

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of January 26, 2015, by and between Global Digital
Solutions, Inc., a New Jersey corporation, with headquarters located at 777 South Flagler Drive, Suite #800 West, West Palm
Beach, FL 33401 (the “Company”), and ADAR BAYS, LLC, a Florida limited liability company, with its address
at 3411 Indian Creek Drive, Suite 403, Miami Beach, FL 33140 (the “Buyer”).

 

WHEREAS:

 

A.           The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.           Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8%
convertible note of the Company, in the forms attached hereto as Exhibit A in the aggregate principal amount of $35,000.00 (together
with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the
terms thereof, the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the
“Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

C.           The
Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth
immediately below its name on the signature pages hereto; and

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.           Purchase
and Sale of Note.

 

a.           Purchase
of Note. On each Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages
hereto.

 

b.           Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and
sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal
amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and
(ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

DAL 

Company Initials

    	 

    	 

    

 

c.           Closing
Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing Date”)
shall be on or about January 26, 2015, or such other mutually agreed upon time. The closing of the transactions contemplated by
this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.           Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.           Investment
Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of
or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards
the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act;
provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities
for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant
to a registration statement or an exemption under the 1933 Act.

 

b.           Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
(an “Accredited Investor”).

 

c.           Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of
the Buyer to acquire the Securities.

 

d.           Information.
The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with
all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of
the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for
so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding
the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information
unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries
nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or
affect Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer
understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that
may constitute a breach of any of the Company's representations and warranties made herein.

 

DAL 

Company Initials

    	2

    	 

    

 

e.           Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

f.           Transfer
or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered
under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in
comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred
to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)
of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited
Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S
under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the
cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate
transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may
be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities
under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that
term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations
of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities
under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each
case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral
in connection with a bona fide margin account or other lending arrangement.

 

g.           Legends.
The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may
be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that
can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

DAL 

Company Initials

    	3

    	 

    

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such
holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act,
which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities,
including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus
delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with
respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business
days, it will be considered an Event of Default under the Note.

 

h.           Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i.           Residency.
The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

DAL 

Company Initials

    	4

    	 

    

 

3.           Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.           Organization
and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and
other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted.

 

b.           Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the
Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation
for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s
Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required,
(iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized
representative is the true and official representative with authority to sign this Agreement and the other documents executed
in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery
by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

c.           Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance
with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof.

 

d.           Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance
of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion
Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

DAL 

Company Initials

    	5

    	 

    

 

e.           No
Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance
of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation
or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of
its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company
or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the OTCQB marketplace
(the “OTCQB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB in the foreseeable
future, nor are the Company’s securities “chilled” by DTC. The Company and its subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

 

f.           Absence
of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding, inquiry
or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to
the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries,
or their officers or directors in their capacity as such, that could have a material adverse effect. Schedule 3(f) contains a
complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting
the Company or any of its subsidiaries, without regard to whether it would have a material adverse effect. The Company and its
subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.           Acknowledgment
Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the
capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company
further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective
representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation
and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the
Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its
representatives.

 

h.           No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the
Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

DAL 

Company Initials

    	6

    	 

    

 

i.           Title
to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

j.           Bad
Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the
basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide
published by the Securities and Exchange Commission.

 

k.           Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of default under the Note.

 

4.           COVENANTS.

 

a.           Expenses.
At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”),
including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees
for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of
provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions
contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate
payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission
of an invoice by the Buyer. The Company’s obligation with respect to this transaction is to reimburse Buyer’s expenses
shall be $1,750 in legal fees which shall be deduced from the Note when funded.

 

DAL 

Company Initials

    	7

    	 

    

 

b.           Listing.
The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the
Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing
of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer
owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any equivalent replacement market,
the Nasdaq stock market (“Nasdaq”), the New York Stock Exchange (“NYSE”), or the American Stock Exchange
(“AMEX”) and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company
shall promptly provide to the Buyer copies of any notices it receives from the OTCQB and any other markets on which the Common
Stock is then listed regarding the continued eligibility of the Common Stock for listing on such markets.

 

c.           Corporate
Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not
sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or
substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s
obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded
corporation whose Common Stock is listed for trading on the OTCQB, Nasdaq, NYSE or AMEX.

 

d.           No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

e.           Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.           Governing
Law; Miscellaneous.

 

a.           Governing
Law. This Agreement 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 and county
of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Company and Buyer 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 Agreement or any other agreement delivered in connection herewith 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 any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

DAL 

Company Initials

    	8

    	 

    

 

b.           Counterparts;
Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto
by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c.           Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation
of, this Agreement.

 

d.           Severability.
In the event that any provision of this Agreement 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 provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

e.           Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.           Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be:

 

If
to the Company, to:

 

Global
Digital Solutions, Inc.

777
South Flagler Drive, Suite #800 West

West
Palm Beach, FL 33401

Attn:
Richard J. Sullivan, CEO

 

DAL 

Company Initials

    	9

    	 

    

 

If to the Buyer:

 

ADAR
BAYS, LLC

3411
Indian Creek Drive, Suite 403

Miami
Beach, FL 33140

Attn:
Sarah Eisenberg

 

Each
party shall provide notice to the other party of any change in address.

 

g.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company.

 

h.           Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.           Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a
result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set
forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they
are incurred.

 

j.           Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

DAL 

Company Initials

    	10

    	 

    

 

k.           No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

l.           Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

[SIGNATURE
PAGE FOLLOWS]

 

DAL 

Company Initials

    	11

    	 

    

 

IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

Global
Digital Solutions, Inc.

 

	By:	/s/
    David A. Loppert	 
	Name:	David
    A. Loppert	 
	Title:	CFO	 

 

ADAR
BAYS, LLC.

 

	By:	/s/
    Sarah Eisenberg	 
	Name:	Sarah
    Eisenberg	 
	Title:	Manager	 

  

AGGREGATE
SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	 $   35,000.00

 

Aggregate
Purchase Price:

 

Note
1: $35,000.00 less $1,750.00 in legal fees and $3,500 in fees to Carter, Terry & Co.

 

    	 

    	 

    

 

EXHIBIT
A

 

144
NOTE - $35,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]