Document:

AMENDED
AND RESTATED SECURITY AGREEMENT

 

THIS
AMENDED AND RESTATED SECURITY AGREEMENT (this “Agreement”), is among AllDigital Holding, Inc., a Nevada Corporation
(the “Company”), the Existing Secured Parties (as defined below), holders of the New Notes (as defined below),
each a signatory hereto, their endorsees, transferees and assigns (collectively, the “New Secured Parties”)
and Richard P. Stevens, II, as Collateral Agent (the “Agent”), effective as of the date this Agreement is executed
by the Company and the Agent (the “Effective Date”) as evidenced by the date affixed to the signature pages
annexed hereto. Holders of the Exchanged Notes (as defined below), their endorsees, transferees and assigns (collectively, the
“Existing Secured Parties” and together with the New Secured Parties, the “Secured Parties”)
are party to this agreement upon the execution of this Agreement by the Company and the Agent.

 

R E C I T A L S :

 

A. The
Secured Parties have severally agreed to extend the loans to the Company evidenced by the Notes (as defined below).

 

B. Certain
of the Company’s 5% Senior Secured Convertible Notes due December 31, 2017 (the “Exchanged Notes”) were
issued in exchange for 5% Senior Secured Convertible Notes (the “Initial Notes”) initially issued pursuant
to the Company’s Confidential Private Placement Memorandum dated October 4, 2014, as amended (the “Memorandum”)
and certain additional 5% Senior Secured Convertible Notes due December 31, 2017 (the “New Notes” together
with the Exchanged Notes, the “Notes”) will be issued from time to time pursuant to the Company’s Amended
and Restated Confidential Private Placement Memorandum dated July 31, 2015.

 

C. In
connection with the Initial Notes, the Company, the Agent and the Existing Secured Parties holding the Initial Notes entered into
a Security Agreement effective as of the date such agreement was executed by the Company (“Initial Agreement”).

 

D. The
Initial Agreement may be amended by written instrument signed by the Company and the Agent.

 

E. In
order to induce the Secured Parties to extend the loans evidenced by the Notes, the Company has agreed to execute and deliver
to the Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured Party and through
the Agent, a security interest in certain property of the Company to secure the prompt payment, performance and discharge in full
of all of the Company’s obligations under the Notes.

 

F. Upon
the execution of this Agreement by the Company and the Agent, this Agreement shall replace the Initial Agreement and all Secured
Parties will have the rights and be bound by the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms
used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the UCC. Capitalized terms used but not otherwise defined
in this Agreement shall have the meanings ascribed to them in the Notes, as the case may be.

 

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(a) “Collateral”
means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the
following real and personal property of the Company, whether presently owned or existing or hereafter acquired or coming into
existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all
proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral
and of insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities,
equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of,
or in exchange for, any or all of the Pledged Securities (as defined below):

 

(i) All
goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature
and wherever situated, together with all documents of title and documents representing the same, all additions and accessions
thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and
useful in connection with the Company’s businesses and all improvements thereto; and (B) all inventory;

 

(ii) All
contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities, Intellectual
Property (as defined below and more fully described herein) licenses, distribution and other agreements, computer software (whether
“off-the-shelf”, licensed from any third party or developed by the Company), computer software development
rights, leases (including the Real Property Leases), franchises, customer lists, quality control procedures, grants and rights,
goodwill, trademarks, service marks, trade styles, trade names, patents, patent applications, copyrights, and income tax refunds;

 

(iii) All
accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit;

 

(iv) All
documents, letter-of-credit rights, instruments and chattel paper;

 

(v) All
commercial tort claims;

 

(vi) All
deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii) All
investment property;

 

(viii) All
supporting obligations;

 

(ix) All
files, records, books of account, business papers, and computer programs; and

 

(x) the
products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.

 

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Without
limiting the generality of the foregoing, the “Collateral” shall include all investment property and general
intangibles respecting ownership and/or other equity interests in any direct or indirect subsidiary of the Company obtained in
the future, including any Pledged Securities, and, in each case, all certificates representing such shares and/or equity interests
and, in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received,
receivable or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in connection
with any of the foregoing, including, but not limited to, all dividends, interest and cash.

 

Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the
extent that such applicable law is not overridden by Sections 9406, 9407 and/or 9408 of the UCC or other similar applicable law);
provided, however, that to the extent permitted by applicable law, this Agreement shall create a valid security
interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in
the proceeds of such asset.

 

(b) “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith,
including, without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all
letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof,
and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part
thereof, (iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress,
service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing
or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether
in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or
any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade
secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v) all rights to
obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes
of action for infringement of the foregoing.

 

(c) “Majority
in Interest” means, at any time of determination, the Secured Parties holding 51% of then-outstanding principal amount
of the Notes.

 

(d) “Necessary
Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment duly executed and
such other instruments or documents as the Agent (as that term is defined below) may reasonably request.

 

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(e)
“Obligations” means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint
or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company to the
Secured Parties, including, without limitation, all obligations under this Agreement, the Notes and any other instruments, agreements
or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed
with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all
or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise as such obligations may
be amended, supplemented, converted, extended or modified from time to time. Without limiting the generality of the foregoing,
the term “Obligations” shall include, without limitation: (i) the principal amount of, and interest on the
Notes and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of
the Company from time to time under or in connection with this Agreement, the Notes and any other instruments, agreements or other
documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition
interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company.

 

(f) “Organizational
Documents” means the Company’s articles of incorporation and bylaws.

 

(g) “Permitted
Indebtedness” means (a) the indebtedness evidenced by the Notes, and (b) the indebtedness existing on the Effective
Date and set forth on Schedule 4(c) of the Disclosure Schedules.

 

(h) “Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Company’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company or (y) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing
for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien, and (c) Liens incurred in connection
with Permitted Indebtedness.

 

(i) “Pledged
Interests” shall have the meaning ascribed to such term in Section 4(j).

 

(j) “Pledged
Securities” means all the capital stock and other equity interests in any direct or indirect subsidiary of the Company
obtained after the date of this Agreement.

 

(k) “UCC”
means the Uniform Commercial Code of the State of California and or any other applicable law of any state or states which has
jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of
the parties that defined terms in the UCC should be construed in their broadest sense so that the term “Collateral”
will be construed in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that
broaden the definitions, they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions,
the existing ones shall be controlling.

 

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2. Grant
of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by the Notes
and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations,
the Company hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent, as representative of the Secured
Parties, for the ratable benefit of the Secured Parties a security interest in and to, a lien upon and a right of set-off against
all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (a “Security
Interest” and, collectively, the “Security Interests”).

 

3. Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, the Company shall deliver or cause to
be delivered to the Agent any and all certificates and other instruments or documents representing any of the Collateral, in each
case, together with all Necessary Endorsements, as may be reasonably required by Agent.

 

4. Representations,
Warranties, Covenants and Agreements of the Company. Except as set forth under the corresponding section of the disclosure
schedule delivered to the Secured Parties concurrently herewith (the “Disclosure Schedule”), which Disclosure
Schedule shall be deemed a part hereof, the Company represents and warrants to, and covenants and agrees with, the Secured Parties,
as of the Effective Date, as follows:

 

(a) The
Company has the requisite corporate power and authority to enter into this Agreement and otherwise to carry out its obligations
hereunder. The execution, delivery and performance by the Company of this Agreement and the filings contemplated therein have
been duly authorized by all necessary action on the part of the Company and no further action is required by the Company. This
Agreement has been duly executed by the Company. This Agreement constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies of creditors
and by general principles of equity.

 

(b) The
Company has no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except the Company’s principal
executive offices. None of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

 

(c) Upon
the Effective Date, except for Permitted Liens or as set forth on Section 4(c) of the Disclosure Schedule, the Company
is the sole owner of the Collateral (except for non-exclusive licenses granted by the Company in the ordinary course of business),
free and clear of any liens, security interests, encumbrances, rights or claims, and is fully authorized to grant the Security
Interests. Upon the Effective Date, except pursuant to the Initial Agreement and as set forth on Section 4(c) of the Disclosure
Schedule, to the actual knowledge of the executive officers of the Company, there shall not be on file in any governmental
or regulatory authority, agency or recording office an effective financing statement, security agreement, license or transfer
or any notice of any of the foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement)
covering or affecting any of the Collateral. Except as set forth on Section 4(c) of the Disclosure Schedule and in this
Agreement, as long as this Agreement shall be in effect, the Company shall not execute and shall not knowingly permit to be on
file in any such office or agency any other financing statement or other document or instrument (except to the extent filed or
recorded in connection with Permitted Liens or in favor of the Secured Parties pursuant to the terms of this Agreement) and except
as may otherwise be permitted under the terms of the Notes.

 

(d) No
written claim has been received that any Collateral or the Company’s use of any Collateral violates the rights of any third
party. There has been no adverse decision to the Company’s claim of ownership rights in or exclusive rights to use the Collateral
in any jurisdiction or to the Company’s right to keep and maintain such Collateral in full force and effect, and there is
no proceeding involving said rights pending or, to the best knowledge of the Company, threatened before any court, judicial body,
administrative or regulatory agency, arbitrator or other governmental authority.

 

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(e) The
Company shall at all times maintain its books of account and records relating to the Collateral at its principal place of business
and its Collateral at its principal places of business and may not relocate such books of account and records or tangible Collateral
unless it delivers to the Secured Parties at least 30 days prior to such relocation (i) written notice of such relocation and
the new location thereof (which location must be within the United States) and (ii) evidence that appropriate financing statements
under the UCC and other necessary documents have been filed and recorded and other steps have been taken to perfect the Security
Interests created in favor of the Secured Parties as a valid, perfected and continuing perfected first priority lien (except for
such instances where Permitted Liens exist as a perfected first priority lien) in the Collateral.

 

(f) This
Agreement creates in favor of the Secured Parties a valid security interest in the Collateral, subject only to Permitted Liens
securing the payment and performance of the Obligations. Upon making the filings described in the immediately following paragraph,
all security interests created hereunder in any Collateral which may be perfected by filing Uniform Commercial Code financing
statements shall have been duly perfected. Except for the filing of the Uniform Commercial Code financing statements referred
to in the immediately following paragraph, the recordation of the Intellectual Property Security Agreement (as defined below)
if required, the execution and delivery of deposit account control agreements satisfying the requirements of Section 9104(a)(2)
of the UCC with respect to each deposit account of the Company within 60 days after the Effective Date, and the delivery of the
certificates and other instruments provided in Section 3, no action is necessary to create, perfect or protect the security
interests created hereunder. Without limiting the generality of the foregoing, except for the filing of said financing statements,
the recordation of said Intellectual Property Security Agreement, and the execution and delivery of said deposit account control
agreements, no consent of any third parties (except for consents that have been received) and no authorization, approval or other
action by, and no notice to or filing with, any governmental authority or regulatory body is required for (i) the execution, delivery
and performance of this Agreement, (ii) the creation or perfection of the Security Interests created hereunder in the Collateral
or (iii) the enforcement of the rights of the Agent and the Secured Parties hereunder.

 

(g) The
Company hereby authorizes the Agent to file or record one or more financing statements under the UCC and any document giving notice
of the Secured Parties’ rights in the Real Property Leases (as defined in Section 4(p) below), with respect to the Security
Interests, with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

(h) The
execution, delivery and performance of this Agreement by the Company does not (i) violate any of the provisions of any Organizational
Documents of the Company or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
law, rule or regulation applicable to the Company or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
the Company’s debt or otherwise) or other understanding to which the Company is a party or by which any property or asset
of the Company is bound or affected. If any, all required consents (including, without limitation, from stockholders or creditors
of the Company) necessary for the Company to enter into and perform its obligations hereunder have been obtained.

 

(i) Except
as set forth on Section 4(i) of the Disclosure Schedule, as of the Effective Date, the Company has no subsidiaries, no
Pledged Securities and no Pledged Interests.

 

(j) The
ownership and other equity interests in partnerships and limited liability companies, if any, obtained after the Effective Date
and included in the Collateral (the “Pledged Interests”) by their express terms will not provide that they
are securities governed by Article 8 of the UCC and will not be held in a securities account or by any financial intermediary.

 

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(k) Except
for Permitted Liens and except as set forth in Section 4(k) of the Disclosure Schedule, the Company shall at all times
maintain the liens and Security Interests provided for hereunder as valid and perfected first priority liens and security interests
in the Collateral in favor of the Secured Parties until this Agreement and the Security Interest hereunder shall be terminated
pursuant to Section 14. The Company hereby agrees to defend the same against the claims of any and all persons and entities.
The Company shall safeguard and protect all Collateral for the account of the Secured Parties. Upon the request of the Agent,
the Company will sign and deliver to the Agent on behalf of the Secured Parties at any time or from time to time one or more financing
statements pursuant to the UCC and will pay the cost of filing the same in all public offices wherever filing is, or is deemed
by the Agent to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality
of the foregoing, the Company shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security
Interests hereunder, and the Company shall obtain and furnish to the Agent from time to time, upon demand, such releases and/or
subordinations of claims and liens which may be required to maintain the priority of the Security Interests hereunder.

 

(l) The
Company will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except
for non-exclusive licenses granted by the Company in its ordinary course of business and sales of inventory by the Company in
its ordinary course of business) without the prior written consent of the Agent.

 

(m) The
Company shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and
shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

(n) The
Company shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established
reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances
by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover
the full replacement cost thereof. The Company shall cause each insurance policy issued in connection herewith to provide that
(a) the Agent will be named as lender loss payee and additional insured under each such insurance policy and (b) if such insurance
be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly notify the Agent and such
cancellation or change shall not be effective as to the Agent for at least 30 days after receipt by the Agent of such notice,
unless the effect of such change is to extend or increase coverage under the policy. Copies of such policies or the related certificates,
in each case, naming the Agent as lender loss payee and additional insured shall be delivered to the Agent at least annually and
at the time any new policy of insurance is issued. The Agent shall have no obligation or liability for determining whether insurance
coverage is appropriate or in effect.

 

(o) The
Company shall, within 10 days of obtaining knowledge thereof, advise the Agent promptly, in sufficient detail, of any material
adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value of
the Collateral or on the Secured Parties’ security interest.

 

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(p) The
Company shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as the Agent, may deem necessary
to perfect, protect or enforce the Secured Parties’ security interest in the Collateral including, without limitation, if
applicable, the execution and delivery of a separate security agreement with respect to the Company’s Intellectual Property
(“Intellectual Property Security Agreement”) in which the Secured Parties have been granted a security interest
hereunder, substantially in a form attached as Annex B hereto, which Intellectual Property Security Agreement, other than
as stated therein, shall be subject to all of the terms and conditions hereof. In addition, upon the written request of Agent,
the Company shall, within 180 days after the date of such written request, obtain the written confirmation from any landlord of
the pledge of the Company’s interest in any real property lease to which the Company is a party, a true and complete listing
of which is set forth in Section 4(p) of the Disclosure Schedule (each, a “Real Property Lease” and
collectively, the “Real Property Leases”).

 

(q) The
Company shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and upon
reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the Agent
from time to time.

 

(r) The
Company shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

 

(s) The
Company shall promptly notify the Agent in sufficient detail upon becoming aware of any attachment, garnishment, execution or
other legal process levied against any Collateral and of any other information received by the Company that may materially affect
the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder.

 

(t) All
information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of the Company with respect to the
Collateral is accurate and complete in all material respects as of the date furnished.

 

(u) The
Company shall at all times preserve and keep in full force and effect its valid existence and good standing and any rights and
franchises material to its business.

 

(v) The
Company will not change its name, type of organization, jurisdiction of organization, organizational identification number (if
it has one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior
written notice to the Agent of such change and, at the time of such written notification, the Company provides any financing statements
or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(w) Except
in the ordinary course of business, the Company may not consign any of its inventory or sell any of its inventory on bill and
hold, sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be
unreasonably withheld.

 

(x) The
Company may not relocate its chief executive office to a new location without providing 30 days prior written notification thereof
to the Agent and so long as, at the time of such written notification, the Company provides any financing statements or fixture
filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y) The
Company is organized under the laws of the state of Nevada and is in good standing in that jurisdiction.

 

(z) At
any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, the Company shall inventory and deliver
such Collateral to the Agent.

 

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(aa) The
Company, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of the Agent regarding the
Pledged Interests consistent with the terms of this Agreement without the further consent of the Company as contemplated by Section
8106 (or any successor section) of the UCC. Further, the Company agrees that it shall not enter into a similar agreement (or one
that would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

(bb) Upon
the request of the Agent, the Company shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent,
or, if such delivery is not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject
to the security interest created by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the
Company shall cause the underlying chattel paper to be created, stored and assigned in accordance with Section 9105 of the UCC
(or successor section thereto).

 

(cc) If
there is any investment property or deposit account included as Collateral that can be perfected by “control”
through an account control agreement, the Company shall cause such an account control agreement to be entered into and delivered
to the Agent for the benefit of the Secured Parties upon the request of the Agent.

 

(dd) To
the extent that any Collateral consists of letter-of-credit rights, the Company shall cause the issuer of each underlying letter
of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

 

(ee) To
the extent that any Collateral is in the possession of any third party, the Company shall notify such third party of the Secured
Parties’ security interest in such Collateral and shall use its best efforts to obtain an acknowledgement and agreement
from such third party with respect to the Collateral, in form and substance reasonably satisfactory to the Agent.

 

(ff) If
the Company shall at any time hold or acquire a commercial tort claim, the Company shall promptly notify the Agent in a writing
signed by the Company of the particulars thereof and grant to the Secured Parties in such writing a security interest therein
and in the proceeds thereof, all upon the terms of this Agreement, with such writing in form and substance reasonably satisfactory
to the Agent.

 

(gg) The
Company shall immediately provide written notice to the Agent of any and all accounts which arise out of contracts with any governmental
authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in such accounts
and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate with the
Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal,
state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds
thereof.

 

(hh) The
Company shall cause each subsidiary of the Company, if any, to immediately become a party hereto (an “Additional Obligor”),
by executing and delivering an Additional Obligor Joinder in substantially the form of Annex A attached hereto and comply
with the provisions hereof applicable to the Company. Concurrent therewith, the Additional Obligor shall deliver to each Secured
Party and the Agent a replacement Disclosure Schedule for, or supplements to the Disclosure Schedule to (or referred to in) this
Agreement, as applicable, which replacement Disclosure Schedule shall supersede, or supplements shall modify, the Disclosure Schedule
then in effect. The Additional Obligor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates,
incumbency certificates, organizational documents, financing statements and other information and documentation as the Agent may
reasonably request. Upon delivery of the foregoing to the Agent, the Additional Obligor shall be and become a party to this Agreement
with the same rights and obligations as the Company, for all purposes hereof as fully and to the same extent as if it were an
original signatory hereto and shall be deemed to have made the representations, warranties and covenants set forth herein as of
the date of execution and delivery of such Additional Obligor Joinder, and all references herein to the “Company”
shall be deemed to include each Additional Obligor.

 

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(ii) The
Company shall vote the Pledged Securities, if any, to comply with the covenants and agreements set forth herein and in the Notes.

 

(jj) The
Company shall register the pledge of the applicable Pledged Securities, if any, on the books of the Company. Further, except with
respect to certificated securities delivered to the Agent, the Company shall deliver to the Agent an acknowledgement of pledge
(which, where appropriate, shall comply with the requirements of the relevant UCC with respect to perfection by registration)
signed by the issuer of the applicable Pledged Securities, which acknowledgement shall confirm that: (a) it has registered the
pledge on its books and records; and (b) at any time directed by the Agent during the continuation of an Event of Default, such
issuer will transfer the record ownership of such Pledged Securities into the name of any designee of the Agent, will take such
steps as may be necessary to effect the transfer, and will comply with all other instructions of the Agent without the further
consent of the Company.

 

(kk) In
the event that, upon an occurrence of an Event of Default, the Agent shall sell all or any of the Pledged Securities to another
party or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities,
the Company shall, to the extent applicable: (i) deliver to the Agent or the Transferee, as the case may be, the articles or certificate
of incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences
of indebtedness, books of account, financial records and all other Organizational Documents and records of the Company and its
direct and indirect subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and
directors of the Company and its direct and indirect subsidiaries, if so directed by the Agent; and (iii) use its best efforts
to obtain any approvals that are required by any governmental or regulatory body in order to permit the sale of the Pledged Securities
to the Transferee or the purchase or retention of the Pledged Securities by the Agent and allow the Transferee or the Agent to
continue the business of the Company and its direct and indirect subsidiaries.

 

(ll) Without
limiting the generality of the other obligations of the Company hereunder, the Company shall promptly (i) cause the security interest
contemplated hereby with respect to all Intellectual Property registered at the United States Copyright Office or United States
Patent and Trademark Office to be duly recorded at the applicable office, (ii) give the Agent notice whenever it files an application
to register any copyrights, trademarks or patents, and (iii) supplement any Intellectual Property Security Agreement to grant
a security interest in such new or additional Intellectual Property registered at the United States Copyright Office or United
States Patent and Trademark Office.

 

(mm) The
Company will from time to time, at the expense of the Company, promptly execute and deliver all such further instruments and documents,
and take all such further action as may be necessary or desirable, or as the Agent may reasonably request in writing, in order
to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Parties to exercise
and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this
Agreement.

 

(nn) Section
4(nn) of the Disclosure Schedule lists all of the patents, patent applications, trademarks, trademark applications, registered
copyrights, and domain names owned by any of the Company as of the date hereof. Section 4(nn) of the Disclosure Schedule
lists all material licenses in favor of the Company for the use of any patents, trademarks, copyrights and domain names as of
the date hereof.

 

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(oo) Except
as set forth on Section 4(oo) of the Disclosure Schedule, none of the account debtors or other persons or entities obligated
on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state
or local statute or rule in respect of such Collateral.

 

5. Effect
of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership
interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests
upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets
of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement
of any of the Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights
notwithstanding any provisions in the Organizational Documents or agreements to which the Company is subject or to which the Company
is party.

 

6. Defaults.
The following events shall be “Events of Default”:

 

(a) The
occurrence of an Event of Default (as that term is defined in the Notes) under the Notes;

 

(b) Any
representation or warranty of the Company in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c) Except
as otherwise provided in Section 6(d), the failure by the Company to observe or perform any of its obligations hereunder
for 10 days after delivery to the Company of notice of such failure by or on behalf of a Secured Party unless such default is
capable of cure but cannot be cured within such time frame and the Company is using best efforts to cure the same in a timely
fashion;

 

(d) If
any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by the Company, or a proceeding shall be commenced by the Company, or by any governmental authority
having jurisdiction over the Company, seeking to establish the invalidity or unenforceability thereof, or the Company shall deny
that the Company has any liability or obligation purported to be created under this Agreement;

 

(e) The
failure by the Company to obtain written confirmation from any landlord under any Real Property Lease of the pledge of the Company’s
interest in any such Real Property Lease within 180 days after the date of Agent’s written request that such confirmation
be obtained; or

 

(f) The
termination by the Company of any Real Property Lease without Agent’s prior written consent.

 

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7. Duty
To Hold In Trust.

 

(a) Upon
the occurrence of any Event of Default and at any time thereafter, the Company shall, upon receipt of any revenue, income, dividend,
interest or other sums subject to the Security Interests, whether payable pursuant to the Notes or otherwise, or of any check,
draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the
Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro-rata
in proportion to their respective then-currently outstanding principal amount of the Notes for application to the satisfaction
of the Obligations (and if any Note is not outstanding, pro-rata in proportion to the initial purchases of the remaining Notes).

 

(b) If
the Company shall become entitled to receive or shall receive any securities or other property (including, without limitation,
shares of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of the Company or any of
its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in
exchange for, such Pledged Securities or otherwise), the Company agrees to (i) accept the same as the agent of the Secured Parties;
(ii) hold the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all certificates
or instruments evidencing the same to the Agent on or before the close of business on the fifth business day following the receipt
thereof by the Company, in the exact form received together with the Necessary Endorsements, to be held by the Agent subject to
the terms of this Agreement as Collateral.

 

8. Rights
and Remedies Upon Default.

 

(a) Upon
the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have the
right to exercise all of the remedies conferred hereunder and under the Notes, and the Secured Parties shall have all the rights
and remedies of a secured party under the UCC. Without limitation, the Agent, for the benefit of the Secured Parties, shall have
the rights and powers listed below and shall act in accordance with such rights and powers:

 

(i) The
Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and the Company shall
assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at the Company’s
premises or elsewhere, and make available to the Agent, without rent, all of the Company’s premises and facilities for the
purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable form and the Company hereby
waives its right to notice of such actions.

 

(ii) All
rights of the Company to exercise the voting and other consensual rights which it would otherwise be entitled to exercise and
all rights of the Company to receive the dividends and interest which it would otherwise be authorized to receive and retain,
shall cease. Upon such notice, the Agent shall have the right to receive, for the benefit of the Secured Parties, any interest,
cash dividends or other payments on the Collateral and, at the option of the Agent, to exercise all voting rights pertaining thereto.
Without limiting the generality of the foregoing, the Agent shall have the right (but not the obligation) to exercise all rights
with respect to the Collateral as it were the sole and absolute owner thereof, including, without limitation, to vote and/or to
exchange any or all of the Collateral in connection with a merger, reorganization, consolidation, recapitalization or other readjustment
concerning or involving the Collateral or the Company or any of its direct or indirect subsidiaries.

 

(iii) The
Agent shall have the right to operate the business of the Company using the Collateral at the Company’s premises and shall
have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private
sale or otherwise, either with or without special conditions or stipulations, for cash or on credit or for future delivery, in
such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Agent
may deem commercially reasonable, all without (except as shall be required by applicable statute and cannot be waived) advertisement
or demand upon or notice to the Company or right of redemption of the Company, which are hereby expressly waived. Upon each such
sale, lease, assignment or other transfer of Collateral, the Agent, for the benefit of the Secured Parties, may, unless prohibited
by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all
trusts, claims, right of redemption and equities of the Company, which are hereby waived and released.

 

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(iv) The
Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Company’s rights against such
account debtors and obligors.

 

(v) The
Agent may (but is not obligated to) direct any financial intermediary or any other person or entity holding any investment property
to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

 

(vi) The
Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of the Company at the United
States Patent and Trademark Office and/or Copyright Office into the name of the Secured Parties or any designee or any purchaser
of any Collateral, including that of the Agent for the benefit of the Secured Parties.

 

(b) The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Company
will only be credited with payments actually made by the purchaser and received by the Agent or party acting on behalf of the
Agent. In addition, the Company waives any and all rights that it may have to a judicial hearing in advance of the enforcement
of any of the Agent’s rights and remedies hereunder, including, without limitation, its right following an Event of Default
to take immediate possession of the Collateral and to exercise its rights and remedies with respect thereto.

 

(c) For
the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by
agreement or applicable law, the Company hereby grants to the Agent, for the benefit of the Secured Parties, an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to the Company) to use, license or sublicense following
an Event of Default, any Intellectual Property now owned or hereafter acquired by the Company, and wherever the same may be located,
and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer
software and programs used for the compilation or printout thereof.

 

9. Applications
of Proceeds. The proceeds of the sale, lease or other disposition of the Collateral hereunder or from payments made on account
of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses and costs of the Agent
in connection with the Agent’s performance hereunder in connection with the transactions contemplated hereunder (including,
without limitation, any taxes, fees and other costs incurred in connection therewith and any reasonable attorneys’ fees
and expenses incurred by the Agent), and then to satisfaction of the Obligations pro rata among the Secured Parties (based on
then-outstanding principal amounts of the Notes at the time of any such determination), and then to the payment of any other amounts
required by applicable law, after which the Agent shall pay to the Company any surplus proceeds. If, upon the sale, license or
other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Agent and the Secured
Parties are legally entitled, the Company will be liable for the deficiency, together with interest thereon, at the rate of 12%
per annum or the lesser amount permitted by applicable law (the “Default Rate”), and the reasonable fees of
any attorneys employed by the Agent or the Secured Parties to collect such deficiency. To the extent permitted by applicable law,
the Company waives all claims, damages and demands against the Secured Parties and the Agent arising out of the repossession,
removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct of the Secured Parties
as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.

 

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10. Securities
Law Provision. The Company recognizes that the Agent may be limited in its ability to effect a sale to the public of all or
part of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or
state securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more
sales to a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account,
for investment and not with a view to the distribution or resale thereof. The Company agrees that sales so made may be at prices
and on terms less favorable than if the Pledged Securities were sold to the public, and that the Agent has no obligation to delay
the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the public
under the Securities Laws. The Company shall cooperate with the Agent in its attempt to satisfy any requirements under the Securities
Laws (including, without limitation, registration thereunder if requested by the Agent) applicable to the sale of the Pledged
Securities by the Agent.

 

11. Costs
and Expenses. The Company agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with
any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent.
The Company shall also pay all other claims and charges which in the reasonable opinion of the Agent is reasonably likely to prejudice,
imperil or otherwise affect the Collateral or the Security Interests therein. The Company will also, upon demand, pay to the Agent
the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and
agents, which the Agent, for the benefit of the Secured Parties, may incur in connection with the protection, satisfaction, foreclosure,
collection or enforcement of the Security Interest and the preparation, administration, continuance, amendment or enforcement
of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses
of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, and the Secured Parties
may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection
from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of collection
of the Secured Parties under the Notes. Such fees shall be paid within 15 days of submission of a request by the Agent to the
Company and the Company shall promptly notify the Secured Parties of the payment of such fees.

 

12. Responsibility
for Collateral. The Company assumes all liabilities and responsibility in connection with all Collateral, and the Obligations
shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its
unavailability for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any Secured Party (i)
has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any
rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b)
the Company shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed
by the Company thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract
or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any payment relating
to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations
of the Company under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party
under any such contract, insurance policy or agreement, to present or file any claim, to take any action to enforce any performance
or to collect the payment of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party
may be entitled at any time or times.

 

    	14

    	 

    

 

13. Security
Interests Absolute. All rights of the Secured Parties and all obligations of the Company hereunder, shall be absolute and
unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes or any agreement entered
into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment
or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent
to any departure from the Notes or any other agreement entered into in connection with the foregoing; (c) any exchange, release
or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral
for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain,
adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral;
or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to the Company, or a discharge
of all or any part of the Security Interests granted hereby. Until the Obligations shall have been paid and performed in full,
the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation,
the running of the statute of limitations or bankruptcy. The Company expressly waives presentment, protest, notice of protest,
demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment
received by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable
preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise
due to any party other than the Secured Parties, then, in any such event, the Company’s obligations hereunder shall survive
cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. The
Company waives all right to require the Secured Parties to proceed against any other person or entity or to apply any Collateral
which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy. The Company waives any defense
arising by reason of the application of the statute of limitations to any obligation secured hereby.

 

14. Term
of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Notes
have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that
all indemnities of the Company contained in this Agreement shall survive and remain operative and in full force and effect regardless
of the termination of this Agreement or the resignation or removal of the Agent.

 

15. Power
of Attorney; Further Assurances.

 

(a) The
Company authorizes the Agent, acting on behalf of the Secured Parties, as set forth herein, and does hereby make, constitute and
appoint the Agent and his agents, successors or assigns with full power of substitution, as the Company’s true and lawful
attorney-in-fact, with power, in the name of the Agent or the Company, to, after the occurrence and during the continuance of
an Event of Default, (i) endorse any note, checks, drafts, money orders or other instruments of payment (including payments payable
under or in respect of any policy of insurance) in respect of the Collateral that may come into possession of the Agent; (ii)
to sign and endorse any financing statement pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage
or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents
relating to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied
or placed on or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for monies
due in respect of the Collateral; (v) to transfer any Intellectual Property or provide licenses respecting any Intellectual Property;
and (vi) generally, at the option of the Agent, and at the expense of the Company, at any time, or from time to time, to execute
and deliver any and all documents and instruments and to do all acts and things which the Agent deems necessary to protect, preserve
and realize upon the Collateral and the Security Interests granted therein in order to effect the intent of this Agreement and
the Notes all as fully and effectually as the Company might or could do; and the Company hereby ratifies all that said attorney
shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall be irrevocable
for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding. The designation set forth
herein shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or other documents or
agreements to which the Company is subject or to which the Company is a party. Without limiting the generality of the foregoing,
after the occurrence and during the continuance of an Event of Default, the Agent is specifically authorized to execute and file
any applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property
with the United States Patent and Trademark Office and the United States Copyright Office.

 

    	15

    	 

    

 

(b) On
a continuing basis, the Company will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper
filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Section 15(b)
of the Disclosure Schedule, all such instruments, and take all such action as may reasonably be deemed necessary or advisable,
or as reasonably requested by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent
and purposes of this Agreement, or for assuring and confirming to the Agent the grant or perfection of a perfected security interest
in all the Collateral under the UCC.

 

(c) The
Company hereby irrevocably appoints the Agent as the Company’s attorney-in-fact, with full authority in the place and instead
of the Company and in the name of the Company, to take any action and to execute any instrument which the Agent may deem necessary
or advisable to accomplish the purposes of this Agreement, including the filing of one or more financing or continuation statements
and amendments thereto, relative to any of the Collateral without the signature of the Company where permitted by law, which financing
statements may (but need not) describe the Collateral as “all assets” or “all personal property”
or words of like import, and ratifies all such actions taken by the Agent. This power of attorney is coupled with an interest
and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding.

 

16. Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto or by electronic mail at the e-mail address
set forth on the signature pages attached hereto prior to 5:30 p.m. (California time) on a Business Day, (b) the next Business
Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth
on the signature pages attached hereto or by electronic mail at the e-mail address set forth on the signature pages attached hereto
on a day that is not a Business Day or later than 5:30 p.m. (California time) on any Business Day, (c) the 2nd Business Day following
the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature
pages attached hereto or such other address as the recipient party to whom notice is to be given may have furnished to the other
party in writing in accordance herewith.

 

17. Other
Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the
guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Agent shall have the right,
in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any
way modifying or affecting any of the Secured Parties’ rights and remedies hereunder.

 

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18. Collateral
Agent.

 

(a) Appointment.
The Secured Parties, by their acceptance of the benefits of the Agreement, hereby designate Richard P. Stevens, II as the Agent
to act as specified herein. Each Secured Party shall be deemed irrevocably to authorize the Agent to take such action on its behalf
under the provisions of this Agreement and to exercise such powers and to perform such duties hereunder and thereunder as are
specifically delegated to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental
thereto. The Agent may perform any of its duties hereunder by or through his agents or employees at the expense of the Company
as set forth in this Agreement.

 

(b) Nature
of Duties. The Agent shall have no duties or responsibilities except those expressly set forth in this Agreement. Neither
the Agent nor any of his partners, employees or agents shall be liable for any action taken or omitted by him as such under this
Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence of any oversight or error of
judgment or answerable for any loss, unless caused solely by him or his gross negligence or willful misconduct as determined by
a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Agent shall be mechanical
and administrative in nature; the Agent shall not have by reason of this Agreement or any other related agreement a fiduciary
relationship in respect of the Company or any Secured Party; and nothing in the Agreement or any other related agreement, expressed
or implied, is intended to or shall be so construed as to impose upon the Agent any obligations in respect of this Agreement or
any other related agreement except as expressly set forth herein and therein.

 

(c) Lack
of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it deems appropriate,
has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Company
and its subsidiaries in connection with such Secured Party’s investment in the Company, the creation and continuance of
the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in connection
therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of the value of the Collateral
from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any
Secured Party with any credit, market or other information with respect thereto, whether coming into its possession before any
Obligations are incurred or at any time or times thereafter. The Agent shall not be responsible to the Company or any Secured
Party for any recitals, statements, information, financial statements, representations or warranties herein or in any document,
certificate or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectability, priority or sufficiency of this Agreement or any other related agreement or any contracts or insurance
policies, or for the financial condition of the Company or the value of any of the Collateral, or be required to make any inquiry
concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other related
agreement, or the financial condition of the Company, or the value of any of the Collateral, or the existence or possible existence
of any default or Event of Default under this Agreement, Notes or any of the other related agreement.

 

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(d) Certain
Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf of all of
the Secured Parties. Whenever reference is made in this Agreement to any action by, consent, designation, specification, requirement
or approval of, notice, request or other communication from, or other direction given or action to be undertaken or to be (or
not to be) suffered or omitted by the Agent to any amendment, waiver or other modification of this Agreement to be executed (or
not to be executed) by the Agent or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction
or other exercise of discretion, rights or remedies to be made (or not to be made) by the Agent, it is understood that in all
cases the Agent shall be fully justified in failing or refusing to take any such action under this Agreement as it deems appropriate.
This provision is intended solely for the benefit of the Agent and its successors and permitted assigns and is not intended to
and will not entitle the other parties hereto to any defense, claim or counterclaim under or in relation to any Transaction Document,
or confer any rights or benefits on any party hereto. If such instructions are not provided despite the Agent’s request
therefor, the Agent shall be entitled to refrain from such act or taking such action, and if such action is taken, shall be entitled
to appropriate indemnification from the Secured Parties in respect of actions to be taken by the Agent; and the Agent shall not
incur liability to any person or entity by reason of so refraining. Without limiting the foregoing, (a) no Secured Party shall
have any right of action whatsoever against the Agent as a result of the Agent acting or refraining from acting hereunder in accordance
with the terms of the Agreement or any other related agreement, and the Company shall have no right to question or challenge the
authority of, or the instructions given to, the Agent pursuant to the foregoing and (b) the Agent shall not be required to take
any action which the Agent believes (i) could reasonably be expected to expose it to personal liability, or (ii) require it to
expend or risk its own funds, or (iii) is contrary to this Agreement, the Notes, any other related agreement or applicable law.

 

(e) Reliance.
The Agent shall be entitled to conclusively rely, and shall be fully protected in relying, upon any writing, facsimile, resolution,
notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone
message signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement,
the Notes and any other related agreement and its duties thereunder, upon advice of counsel selected by it and upon all other
matters pertaining to this Agreement, the Notes and any other related agreement and its duties thereunder, upon advice of other
experts selected by it. Anything to the contrary notwithstanding, the Agent shall have no obligation whatsoever to any Secured
Party to assure that the Collateral exists or is owned by the Company or is cared for, protected or insured or that the liens
granted pursuant to this Agreement have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled
to any particular priority.

 

(f) Indemnification.
To the extent that the Agent is not reimbursed and indemnified by the Company, the Secured Parties will jointly and severally
reimburse and indemnify the Agent, in proportion to the outstanding amount of their respective principal amounts of the Notes
at the time of determination, from and against any and all claims, liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted
against the Agent in performing its duties hereunder or under this Agreement, the Notes and any other related agreement, or in
any way relating to or arising out of this Agreement, the Notes and any other related agreement except for those determined by
a final judgment (not subject to further appeal) of a court of competent jurisdiction to have resulted solely from the Agent’s
own gross negligence or willful misconduct. Prior to taking any action hereunder as the Agent, the Agent may require each Secured
Party to deposit with it sufficient sums as it determines in good faith is necessary to protect the Agent for costs and expenses
associated with taking such action. The provisions of this Section 18(f) shall survive the termination of this Agreement
and the resignation or removal of the Agent.

 

    	18

    	 

    

 

(g) Resignation
by the Agent.

 

	 	(i)	The
    Agent may resign from the performance of all its functions and duties under this Agreement and the other Transaction Documents
    at any time by giving 30 days’ prior written notice (pursuant to Section 16) to the Company and the Secured Parties.
    Such resignation shall take effect upon the appointment of a successor the Agent pursuant to clauses (ii) and (ii) below.
	 	 	 
	 	(ii)	Upon
    any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor collateral
    agent hereunder.
	 	 	 
	 	(iii)	If
    a successor collateral agent shall not have been so appointed within said 30-day period, the Agent shall then appoint a successor
    collateral agent who shall serve as collateral agent until such time, if any, as the Secured Parties appoint a successor collateral
    agent as provided above. If a successor collateral agent has not been appointed within such 30-day period, the Agent may petition
    any court of competent jurisdiction or may interplead the Company and the Secured Parties in a proceeding for the appointment
    of a successor collateral agent, and all fees, including, but not limited to, extraordinary fees associated with the filing
    of interpleader and expenses associated therewith, shall be payable by the Company on demand.

 

(h) Rights
with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that it shall not,
and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any
other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent or any
of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the
breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to the Collateral other than as set
forth in this Agreement, the Notes and any other related agreements. Upon the acceptance of any appointment as collateral agent
hereunder by a successor collateral agent, such successor collateral agent shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring collateral agent and the retiring collateral agent shall be discharged
from its duties and obligations under this Agreement. After any retiring collateral agent’s resignation or removal hereunder
as collateral agent, the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was collateral agent.

 

19. Miscellaneous.

 

(a) No
course of dealing between the Company and the Secured Parties, nor any failure to exercise, nor any delay in exercising, on the
part of the Secured Parties, any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

 

(b) All
of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Notes or
by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

 

(c) This
Agreement, together with the exhibits and Disclosure Schedule hereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into this Agreement and the exhibits and Disclosure Schedule hereto. No provision
of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment,
by the Company and the Agent, or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought.

 

    	19

    	 

    

 

(d) If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(e) No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f) This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Agent (other than
by merger). Any Secured Party may assign any or all of its rights under this Agreement to any person to whom such Secured Party
assigns or transfers any Obligations, provided such transferee agrees in writing to be bound, with respect to the transferred
Obligations, by the provisions of this Agreement that apply to the Secured Parties.

 

(g) Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

(h) Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of California, without regard to the principles of conflicts of law thereof. Except to the
extent mandatorily governed by the jurisdiction or situs where the Collateral is located, the Company agrees that all proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Notes (whether
brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or
agents) shall be commenced exclusively in the state and federal courts sitting in Orange County, California. Except to the extent
mandatorily governed by the jurisdiction or situs where the Collateral is located, the Company hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in Orange County, California 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 proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process
being served in any such proceeding 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 manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement
or the transactions contemplated hereby.

 

(i) This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature
is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

    	20

    	 

    

 

(j) The
Company shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members,
shareholders, officers, directors, employees and agents (and any other persons with other titles that have similar functions)
(collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties,
suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the
foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise
from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses
which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision
of a court of competent jurisdiction.

 

(k) Nothing
in this Agreement shall be construed to subject the Agent or any Secured Party to liability as an officer or director of the Company
or a partner in any of the Company’s direct or indirect subsidiaries that is a partnership or as a member in any of the
Company direct or indirect subsidiaries that is a limited liability company, nor shall the Agent or any Secured Party be deemed
to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of any
the Company or any of its direct or indirect subsidiaries or otherwise, unless and until any such Secured Party exercises its
right to be substituted for the Company as a partner or member, as applicable, pursuant hereto.

 

(l) To
the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of the Company or any direct or indirect subsidiary of the Company
or compliance with any provisions of any of the Organizational Documents, the Company hereby grants such consent and approval
and waive any such noncompliance with the terms of said documents.

 

(m) The
Company and each Secured Party is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Patriot Act”) and the Agent (for itself and not on behalf of any Secured Party),
hereby notifies all future Secured Parties, including subsequent assignees or transferees, that pursuant to the requirements of
the Patriot Act, it is required to obtain, verify and record information that identifies the Secured Party, which information
includes the name and address of the Secured Party and other information that will allow the Agent, to identify the Secured Party
in accordance with the Patriot Act. The Secured Parties shall provide such information and take such actions as are requested
by the Agent in order to maintain compliance with the Patriot Act.

 

(n) In
no event shall the Agent be responsible or liable for any failure or delay in the performance of its obligations hereunder directly
or indirectly caused by events beyond its control, including general labor disputes, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, losses or malfunctions of utilities, communications
or computer (software and hardware) services; provided, however, that lack of funds or other financial circumstances
and labor disputes only by the personnel of the affected party shall not constitute an event beyond its control hereunder and
provided, further, that the Agent, as the case may be, shall use reasonable efforts which are consistent with accepted
practices in the banking industry to resume performances as soon as practicable under the circumstances.

 

[SIGNATURE
PAGES FOLLOW]

 

    	21

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Security Agreement to be duly executed on the dates
set forth below.

 

	COMPANY	AllDigital Holdings, Inc., a Nevada corporation
	 	 
	 	By:
    	
	 	 	Michael
    Linos, CEO and President

 

	 	Dated:
    	__________,
    2015

 

	 	Address:	6
    Hughes, Suite 200
	 	 	Irvine,
    CA 92618
	 	Facsimile:	(949)250-0730

 

	AGENT	
	 	Richard
    P. Stevens, II

 

	 	Dated:
    	__________,
    2015

 

	 	Address:	c/o
    AllDigital Holdings, Inc.
	 	 	6
    Hughes, Suite 200
	 	 	Irvine,
    CA 92618
	 	Facsimile:	(949)250-0730

 

[SIGNATURE
PAGE OF SECURED PARTIES FOLLOWS]

 

    	22

    	 

    

 

[SIGNATURE
PAGE OF NEW SECURED PARTIES TO SECURITY AGREEMENT]

 

	Name
    of Secured Party:	 

 

	Signature
    of Secured Party (or Authorized Signatory if an entity):	 

 

	Name
    of Authorized Signatory (if an entity):	 

 

	Title
    of Authorized Signatory (if an entity):	 

 

	Address
    of Secured Party:	 

 

	Email
    Address of Secured Party:	 

 

	Facsimile
    Number of Secured Party:	 

 

	Dated:	 

 

    	23

    	 

    

 

ANNEX
A

to

AMENDED AND RESTATED SECURITY AGREEMENT

 

FORM
OF ADDITIONAL OBLIGOR JOINDER

 

Amended
and Restated Security Agreement made by

AllDigital Holdings, Inc.

dated the date thereof to and in favor of

the Secured Parties identified therein (the “Security Agreement”)

 

Reference
is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have
the meanings given to such terms in, or by reference in, the Security Agreement.

 

The
undersigned hereby agrees that upon delivery of this Additional Obligor Joinder to the Secured Parties referred to above, the
undersigned shall (a) be an Additional Obligor under the Security Agreement, (b) have all the rights and obligations of the Company
under the Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be
deemed to have made the representations and warranties set forth therein as of the date of execution and delivery of this Additional
Obligor Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES
A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER
OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

 

Attached
hereto are supplemental and/or replacement Disclosure Schedules to the Security Agreement, as applicable.

 

An
executed copy of this Additional Obligor Joinder shall be delivered to the Agent, and the Secured Parties and the Agent may rely
on the matters set forth herein on or after the date hereof. This Additional Obligor Joinder shall not be modified, amended or
terminated without the prior written consent of the Agent.

 

    	A-1

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Additional Obligor Joinder to be executed in the name and on behalf of the undersigned.

 

 

	 	[Name
    of Additional Obligor]
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

	 	Dated:
    	 

 

	 	Address:
    	 
	 	 	    
	 	Facsimile:
    	 
	 	Email:
    	 

 

    	A-2

    	 

    

 

ANNEX
B

to

AMENDED AND RESTATED SECURITY AGREEMENT

 

INTELLECTUAL
PROPERTY SECURITY AGREEMENT

 

This
INTELLECTUAL PROPERTY SECURITY AGREEMENT (“IP Security Agreement”), dated as of the date set forth below, is
made by AllDigital Holdings, Inc., a Nevada corporation (“Grantor”), in favor of Richard P. Stevens, II (“Agent”),
as collateral agent for the holders (the “Secured Parties”) of the Grantor’s 5% Senior Secured Convertible
Notes due December 31, 2017 (the “Notes”).

 

R
E C I T A L S

 

A. The
Grantor has issued the Notes in favor of the Secured Parties.

 

B. As
a condition precedent to the making of loans by the Secured Parties under the Notes, Grantor has executed and delivered that certain
Amended and Restated Security Agreement dated as of the same day herewith, made by and among Grantor, the Agent, and the Secured
Parties (the “Security Agreement”).

 

C. Under
the terms of the Security Agreement, Grantor has granted to Agent, for the benefit of the Secured Parties, a security interest
in, among other property, certain intellectual property of Grantor, and has agreed to execute and deliver this IP Security Agreement,
for recording with national, federal and state government authorities including but not limited to, with respect to individual
patents, registered trademarks and registered copyrights, and applications for the foregoing, recording with the United States
Patent and Trademark Office and the United States Copyright Office.

 

A
G R E E M E N T

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor agrees as
follows:

 

1. Grant
of Security. Grantor hereby grants to Agent for the benefit of the Secured Parties a security interest in all of Grantor’s
right, title and interest in and to the following (the “IP Collateral”):

 

(a) All
copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether registered
or unregistered and whether published or unpublished, all registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright Office;

 

(b) All
letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof,
and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part
thereof;

 

(c) All
trademarks, common law trademarks, trade names, corporate names, company names, business names, fictitious business names, trade
dress, service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith,
whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof
or any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto;

 

    	B-1

    	 

    

 

(d) All
trade secrets arising under the laws of the United States, any other country or any political subdivision thereof;

 

(e) All
rights to obtain any reissues, renewals or extensions of the foregoing;

 

(f) All
licenses for any of the foregoing;

 

(g) All
causes of action for infringement of the foregoing;

 

(h) Any
and all royalties, fees, income, payments and other proceeds now or hereafter due or payable with respect to any and all of the
foregoing; and  

 

(i) Any
and all claims, with respect to any of the foregoing, for damages and injunctive relief for past, present and future infringement,
dilution, misappropriation, violation, misuse, breach or default, with the right but no obligation to sue for such legal and equitable
relief and to collect, or otherwise recover, any such damages.

 

2. Recordation.
Grantor authorizes the Commissioner for Patents, the Commissioner for Trademarks and the Register of Copyrights and any other
government officials to record and register this IP Security Agreement upon request by the Agent.

 

3. Loan
Documents. This IP Security Agreement has been entered into pursuant to and in conjunction with the Security Agreement, which
is hereby incorporated by reference. The provisions of the Security Agreement shall supersede and control over any conflicting
or inconsistent provision herein. The rights and remedies of the Agent with respect to the IP Collateral are as provided by the
Security Agreement and annexes thereto, and nothing in this IP Security Agreement shall be deemed to limit such rights and remedies.

 

4. Execution
in Counterparts. This IP Security Agreement may be executed in counterparts, each of which shall constitute an original, and
all of which when taken together shall constitute one and the same IP Security Agreement. In the event that any signature is delivered
by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

5. Governing
Law. This IP Security Agreement shall be governed by and construed in accordance with the laws of the State of California,
without regard to the principles of conflicts of law thereof.

  

IN
WITNESS WHEREOF, the parties have caused this IP Security Agreement to be duly executed and delivered by its officers thereunto
duly authorized as of July 31, 2015.

 

	GRANTOR	AllDigital Holdings, Inc., 
	 	a Nevada corporation
	 	 	 
	 	By:
    	
	 	 	Michael
    Linos, CEO and President

 

	AGREED
    TO AND ACCEPTED:	 
	 	 
	AGENT	 
	 	Richard
    P. Stevens, II

 

    	B-2Exhibit 101

		
			Exhibit 10.1
		

		
			FIRST MODIFICATION AGREEMENT
		

		
			This FIRST MODIFICATION AGREEMENT (this “Agreement”) is made as of July 31, 2015, by and among (i) CENTURY COMMUNITIES, INC., a Delaware corporation (“Borrower”), (ii) the undersigned Guarantors, (iii) the undersigned Lenders, and (iv) TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent (“Administrative Agent”). 
		

		
			W I T N E S S E T H :
		

		
			WHEREAS, Administrative Agent, Borrower and Lenders are parties to that certain Credit Agreement (the “Credit Agreement”), dated October 21, 2014, established a revolving line of credit in the maximum principal sum of $120,000,000.00 (the “Credit Facility”); and
		

		
			WHEREAS, Borrower desires to increase the Credit Facility Amount from $120,000,000.00 to $200,000,000.00, pursuant to Section 2.10 of the Credit Agreement; and 
		

		
			WHEREAS, Borrower asked each Lender to increase its respective Commitment, and each Lender is willing to increase its Commitment, subject to the terms and conditions of this Agreement; and 
		

		
			WHEREAS, Borrower asked Bank of America, N.A. to become a Lender, and Bank of America, N.A. is willing to become a Lender, and make a Commitment of up to $35,000,000.00, subject to the terms and conditions of this Agreement; and
		

		
			WHEREAS, Administrative Agent, Borrower, the undersigned Guarantors, and the undersigned Lenders now propose to increase the Commitments and to modify certain of the terms and provisions of the Credit Agreement and the other related documents executed by Borrower or third parties pertaining to, evidencing or securing the Credit Facility (collectively, the “Loan Documents”).
		

		
			NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Administrative Agent, Borrower, the undersigned Guarantors, and the undersigned Lenders hereby agree as follows:
		

			
	
			
				 1.
			Definitions.  All terms used herein with initial capital letters, but not defined herein, shall have the meanings specified in the Credit Agreement.

			
	
			
				 2.
			Joinder of Bank of America, N.A.  Bank of America, N.A. agrees to assume, and does hereby assume, the obligations of a Lender under the Credit Agreement.  Bank of America, N.A. agrees to abide by and be bound by all of the terms of the Credit Agreement applicable to Lenders.  Accordingly, the Credit Agreement is hereby amended such that any and all references to the “Lenders” shall be deemed to refer to Bank of America, N.A., as well as each of the parties that have previously been included within the meaning of such term. 

		 

 

			
	
			
				 3.
			Credit Facility Amount.  Pursuant to Section 2.10 of the Credit Agreement, the Credit Facility Amount is hereby increased from $120,000,000.00 to $200,000,000.00.  The Increase Effective Date, as such term is used in Section 2.10(d) of the Credit Agreement, is the date of this Agreement.

			
	
			
				 4.
			Commitments and Applicable Percentages.  As a result of the increase in the Credit Facility Amount, and the addition of Bank of America, N.A. as a Lender, Schedule 2.1 of the Credit Agreement is hereby revised and replaced in its entirety with Schedule 2.1 attached hereto, and Lenders’ respective Commitments and Applicable Percentages are revised as set forth therein.

			
	
			
				 5.
			Increase Fee.  As consideration for the increase in the Credit Facility Amount, contemporaneously with the execution and delivery of this Agreement, Borrower shall pay to Administrative Agent, a non-refundable fee as described in Section 2.10(e) of the Credit Agreement, which fee shall be distributed among Lenders in accordance with the Credit Agreement. 

			
	
			
				 6.
			Additional Notes.  To evidence the increase in the Credit Facility Amount, contemporaneously with the execution and delivery of this Agreement, Borrower shall execute and deliver the following promissory notes, which promissory notes shall (i) be dated of even date with this Agreement, (ii) be substantially in the form of Exhibit E attached to the Credit Agreement, (iii) each be considered a Note, as defined in the Credit Agreement, in addition to all other Notes previously executed by Borrower in connection with the Credit Agreement: 

			
	
			
				 (a)
			Note in the principal sum of $35,000,000.00, payable to the order of Bank of America, N.A.;

			
	
			
				 (b)
			Note in the principal sum of $10,000,000.00, payable to the order of Fifth Third Bank;

			
	
			
				 (c)
			Note in the principal sum of $10,000,000.00, payable to the order of Texas Capital Bank, National Association;

			
	
			
				 (d)
			Note in the principal sum of $10,000,000.00, payable to the order of Vectra Bank Colorado, NA, a National Banking Association;

			
	
			
				 (e)
			Note in the principal sum of $7,500,000.00, payable to the order of JPMorgan Chase Bank, N.A.;

			
	
			
				 (f)
			Note in the principal sum of $5,000,000.00, payable to the order of Bank Midwest, a division of NBH Bank, N.A.; and

			
	
			
				 (g)
			Note in the principal sum of $2,500,000.00, payable to the order of Deutsche Bank AG New York Branch.

			
	
			
				 7.
			Additional Requests for Increase.  The option to increase the Commitments set forth in Section 2.10(a) of the Credit Agreement was fully exercised pursuant to Section 3 of this Agreement, and is therefore extinguished and of no further force or effect.  From and after the 
		

		 

 

			date of this Agreement, provided there exists no Default, upon notice to Administrative Agent (which shall promptly notify Lenders), Borrower may from time to time, request an additional increase in the Credit Facility Amount and the aggregate Commitments by an amount (for all such requests) not exceeding $100,000,000; provided that (i) any such request for an increase shall be in a minimum amount of $20,000,000, and (ii) Borrower may make a maximum of three such requests.  At the time of sending such notice, Borrower (in consultation with Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to Lenders).  Any such request for an increase pursuant to this paragraph shall be subject to the terms and conditions set forth in Section 2.10(b) through (f) of the Credit Agreement.

			
	
			
				 8.
			Extension of the Maturity Date.  Pursuant to Section 2.11 of the Credit Agreement, the Maturity Date, as set forth in Section 1.1 of the Credit Agreement, is hereby extended from October 21, 2017, to October 21, 2018, or such earlier date on which the Commitment of each Lender terminates as provided in the Credit Agreement; subject to extension pursuant to Section 2.11 of the Credit Agreement; provided,  however, that, if such date is not a Business Day, the Maturity Date shall be the next succeeding Business Day.  This Agreement shall be deemed to be an Extension Option Agreement.  The Extension Option Agreement Date, as such term is used in Section 2.11 of the Credit Agreement, is the date of this Agreement.

			
	
			
				 9.
			Extension Fee.  As consideration for the extension of the Maturity Date, contemporaneously with the execution and delivery of this Agreement, Borrower shall pay to Administrative Agent, a non-refundable Extension Fee as described in Section 2.11(a) of the Credit Agreement, which fee shall be distributed among Lenders in accordance with the Credit Agreement.

			
	
			
				 10.
			Fee Letter.  Borrower and Texas Capital Bank, National Association, entered into that certain Fee Letter, dated July 14, 2015 (the “2015 Fee Letter”), which 2015 Fee Letter supplements the Fee Letter described in the Credit Agreement.  Borrower agrees to pay to Administrative Agent and Arranger, for the account of Administrative Agent, Arranger and each Lender, as applicable, fees, in the amounts and on the dates set forth in the Fee Letter, as supplemented by the 2015 Fee Letter.

			
	
			
				 11.
			Letters of Credit.  

			
	
			
				 (a)
			Section 2.2(a)(ii) of the Credit Agreement is hereby revised and replaced in entirety as follows:

		
			(ii) L/C Issuer shall not issue any Letter of Credit, or permit the renewal of any Letter of Credit, if:
		

		
			(A) the initial expiry date of the requested Letter of Credit would occur more than twenty-four (24) months after the date of issuance, unless Required Lenders have approved such expiry date; or
		

		

		

		 

 

		(B) the Letter of Credit would automatically renew for a period in excess of twelve (12) months, unless Required Lenders have approved such Letter of Credit; or  
		

		
			(C) the Letter of Credit would automatically renew without providing L/C Issuer with an opportunity to prevent each and every renewal; or 
		

		
			(D) the expiry date of the requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all Lenders have approved such expiry date.
		

			
	
			
				 (b)
			The following language is hereby added to the Credit Agreement as Section 2.2(a)(vii): 

		
			Once a Letter of Credit has been issued, Lenders shall be deemed to have authorized (but may not require) L/C Issuer to permit the renewal of such Letter of Credit at any time to an expiry date not later than the earlier of (i) twelve (12) months from the date of such renewal, or (ii) the Letter of Credit Expiration Date.
		

			
	
			
				 12.
			Tangible Net Worth.  Section 9.3 of the Credit Agreement is hereby revised and replaced in entirety as follows:

		
			Borrower shall not permit, as of the last day of any fiscal quarter, Tangible Net Worth for Borrower and its Subsidiaries, on a consolidated basis, to be less than the sum of (a) $261,037,000, plus (b) 50% of the net proceeds of any issuances of stock or other equity interests of any Obligated Party (other than to another Obligated Party) after the Closing Date, plus (c) beginning with the fiscal quarter ending June 30, 2015, 50% of the amount of net income of Borrower and its subsidiaries, on a consolidated basis (but without deduction for any net loss), for each fiscal quarter ending after March 31, 2015.
		

			
	
			
				 13.
			Borrowing Base Report.  The form of Borrowing Base Report attached to the Credit Agreement as Exhibit B, is hereby revised and replaced in its entirety with the form of Borrowing Base Report attached hereto as Exhibit B.

			
	
			
				 14.
			Compliance Certificate.  The form of Compliance Certificate attached to the Credit Agreement as Exhibit C, is hereby revised and replaced in its entirety with the form of Compliance Certificate attached hereto as Exhibit C.

		 

 

			
	
			
				 15.
			Bond Indenture.  Borrower represents and warrants to Administrative Agent and Lenders that (a) Borrower is not in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Borrower of its obligations under the terms and provisions of the Bond Indenture, and (b) the transactions contemplated by this Agreement will not violate the terms and conditions of the Bond Indenture.

			
	
			
				 16.
			Resolutions.  Contemporaneously with the execution and delivery of this Agreement, Borrower shall deliver to Administrative Agent, a copy of resolutions duly adopted by Borrower, approving the transactions contemplated by this Agreement, and certified by an officer of Borrower to be a true and correct. 

			
	
			
				 17.
			Acknowledgment by Borrower.  Except as otherwise specified herein, the terms and provisions hereof shall in no manner impair, limit, restrict or otherwise affect the obligations of Borrower or any third party to Administrative Agent and Lenders, as evidenced by the Loan Documents.  Borrower hereby acknowledges, agrees and represents that (i) Borrower is indebted to Lenders pursuant to the terms of the Notes; (ii) there are no claims or offsets against, or defenses or counterclaims to, the terms or provisions of the Loan Documents, and the other obligations created or evidenced by the Loan Documents; (iii) Borrower has no claims, offsets, defenses or counterclaims arising from any of Administrative Agent’s or Lenders’ acts or omissions with respect to the Loan Documents or Administrative Agent’s or Lenders’ performance under the Loan Documents; (iv) the representations and warranties of Borrower contained in the Loan Documents are true and correct as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date; (v) Borrower is not in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Borrower of its obligations under the terms and provisions of the Loan Documents, and (vi) neither Administrative Agent nor Lenders are in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Administrative Agent or Lenders of their respective obligations under the terms and provisions of the Loan Documents.  To the extent Borrower now has any claims, offsets, defenses or counterclaims against Administrative Agent or Lenders or the repayment of all or a portion of the Credit Facility, whether known or unknown, fixed or contingent, same are hereby forever irrevocably waived and released in their entirety.

			
	
			
				 18.
			No Waiver of Remedies.  Except as may be expressly set forth herein, nothing contained in this Agreement shall prejudice, act as, or be deemed to be a waiver of any right or remedy available to Administrative Agent or Lenders by reason of the occurrence or existence of any fact, circumstance or event constituting a default under the Loan Documents.

			
	
			
				 19.
			Joinder of Guarantor.  By its execution hereof, each Guarantor hereby (i) acknowledges and consents to the terms and provisions hereof; (ii) ratifies and confirms the Guaranty, including all interest and costs of collection, to or for the benefit of Administrative Agent and Lenders; (iii) agrees that the Guaranty is and shall remain in full force and effect and that the terms and provisions of the Guaranty cover and pertain to the Credit Facility, Notes and other Loan Documents as modified hereby; (iv) acknowledges that there are no claims or offsets against, or defenses or counterclaims to, the terms and provisions of the Guaranty or the other obligations created and evidenced by the Guaranty; (v) certifies that the representations and 
		

		 

 

			warranties contained in the Guaranty remain true and correct representations and warranties of Guarantor as of the date hereof; and (vi) acknowledges that Administrative Agent and Lenders have satisfied and performed their covenants and obligations under the Guaranty and the other Loan Documents, and that no action or failure to act by or on behalf of, Administrative Agent or Lenders has or will give rise to any cause of action or other claim against Administrative Agent or Lenders for breach of the Guaranty or other Loan Documents or otherwise.

			
	
			
				 20.
			Costs and Expenses.  Contemporaneously with the execution and delivery hereof, Borrower shall pay, or cause to be paid, all costs and expenses incident to the preparation, execution and recordation hereof and the consummation of the transaction contemplated hereby, including, but not limited to, reasonable fees and expenses of legal counsel to Administrative Agent.

			
	
			
				 21.
			Additional Documentation.  From time to time, Borrower shall execute or procure and deliver to Administrative Agent such other and further documents and instruments evidencing, securing or pertaining to the Credit Facility or the Loan Documents as shall be reasonably requested by Administrative Agent so as to evidence or effect the terms and provisions hereof.  Borrower shall cause to be delivered to Administrative Agent, an opinion of counsel, satisfactory to Administrative Agent, opining to (i) the validity and enforceability of this Agreement and the other Loan Documents executed on this date in connection with the transaction contemplated hereby; (ii) the authority of Borrower, and any constituents of Borrower, to execute, deliver and perform its or their respective obligations under the Loan Documents, as hereby modified; and (iii) such other matters as reasonably requested by Administrative Agent.

			
	
			
				 22.
			Effectiveness of the Loan Documents.  Except as expressly modified by the terms and provisions hereof, each of the terms and provisions of the Loan Documents are hereby ratified and shall remain in full force and effect; provided, however, that any reference in any of the Loan Documents to the Credit Facility, the amount constituting the Credit Facility, any defined terms, or to any of the other Loan Documents shall be deemed, from and after the date hereof, to refer to the Credit Facility, the amount constituting the Credit Facility, defined terms and to such other Loan Documents, as modified hereby.

			
	
			
				 23.
			Governing Law.  THE TERMS AND PROVISIONS HEREOF SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN.

			
	
			
				 24.
			Time.  Time is of the essence in the performance of the covenants contained herein and in the Loan Documents.

			
	
			
				 25.
			Binding Agreement.  This Agreement shall be binding upon the successors and assigns of the parties hereto; provided, however, the foregoing shall not be deemed or construed to (i) permit, sanction, authorize or condone the assignment of any rights, titles or interests in and to Borrower, or (ii) confer any right, title, benefit, cause of action or remedy upon any person or entity not a party hereto, which such party would not or did not otherwise possess.

		 

 

			
	
			
				 26.
			Headings.  The section headings hereof are inserted for convenience of reference only and shall in no way alter, amend, define or be used in the construction or interpretation of the text of such section.

			
	
			
				 27.
			Construction.  Whenever the context hereof so requires, reference to the singular shall include the plural and likewise, the plural shall include the singular; words denoting gender shall be construed to mean the masculine, feminine or neuter, as appropriate; and specific enumeration shall not exclude the general, but shall be construed as cumulative of the general recitation.

			
	
			
				 28.
			Severability.  If any clause or provision of this Agreement is or should ever be held to be illegal, invalid or unenforceable under any present or future law applicable to the terms hereof, then and in that event, it is the intention of the parties hereto that the remainder of this Agreement shall not be affected thereby, and that in lieu of each such clause or provision of this Agreement that is illegal, invalid or unenforceable, such clause or provision shall be judicially construed and interpreted to be as similar in substance and content to such illegal, invalid or unenforceable clause or provision, as the context thereof would reasonably suggest, so as to thereafter be legal, valid and enforceable.

			
	
			
				 29.
			Counterparts.  To facilitate execution, this Agreement may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature and acknowledgment of, or on behalf of, each party, or that the signature and acknowledgment of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single instrument.  It shall not be necessary in making proof of this Agreement to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.  Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages.

			
	
			
				 30.
			Notice of Final Agreement.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO OR THERETO.  THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO OR THERETO.  THE PROVISIONS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY BE AMENDED OR WAIVED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE RESPECTIVE PARTIES TO SUCH DOCUMENTS.

		
			[The remainder of this page is intentionally left blank.  The signature pages follow.]
		

		
			 
		

		

		

		 

 

		EXECUTED to be effective as of the date first above written.
		

		
			 
		

		
			ADMINISTRATIVE AGENT:

TEXAS CAPITAL BANK, 
NATIONAL ASSOCIATION

By:
 /s/ John L. Brimberry
Name:John L. Brimberry
Title:Senior Vice President

		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

TEXAS CAPITAL Bank, NATIONAL ASSOCIATION

By: /s/ John L. Brimberry
Name:John L. Brimberry
Title:Senior Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

BANK OF AMERICA, N.A.

By:/s/ Thomas W. Nowak
Name:Thomas W. Nowak
Title:Vice President
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

FIFTH THIRD BANK 

By:/s/ Talianna Carlson Manne
Name:Talianna Carlson Manne
Title:SVP
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

VECTRA Bank colorado, NA, 
A NATIONAL BANKING ASSOCIATION

By:
/s/ Philip Trujillo
Name:Philip Trujillo
Title:Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

JPMORGAN CHASE BANK, N.A.

By:/s/ Nadeige Dang
Name:Nadeige Dang
Title:Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

DEUTSCHE bank ag new york branch

By:/s/ Michael Shannon
Name:Michael Shannon
Title:Vice President
		

		
			 
		

		
			By:/s/ Michael Winters
Name:Michael Winters
Title:Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

BANK MIDWEST, 
A DIVISION OF NBH BANK, N.A.

By:
/s/ Shaun T. Cox
Name:Shaun T. Cox
Title:SVP – Credit Officer
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			 
		

		
			BORROWER:

CENTURY COMMUNITIES, INC.,
a Delaware corporation

By:/s/ David Messenger
Name:David Messenger
Title:Chief Financial Officer

		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			 
		

		
			GUARANTOR:

AUGUSTA POINTE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			AVALON AT INVERNESS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			BEACON POINTE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			BLACKSTONE HOMES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		CC COMMUNITIES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CCC HOLDINGS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CCH HOMES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CENTURY AT ASH MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT BEACON POINTE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			Century at CALEY, LLC, 
a Colorado limited liability company
		

		
			
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT CANDELAS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			Century at Carousel Farms, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CENTURY AT HARVEST MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		CENTURY AT LOR, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT LOWRY, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CENTURY AT MIDTOWN, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			Century at Millennium, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CENTURY AT MURPHY CREEK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		CENTURY AT OUTLOOK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			Century at Salisbury Heights, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CENTURY AT SOUTHSHORE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT TERRAIN, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			Century at THE GROVE, LLC, 
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		Century at vISTA RIDGE, LLC, 
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT WOLF RANCH, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CENTURY CITY, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY COMMUNITIES OF NEVADA, LLC,  a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY COMMUNITIES OF NEVADA REALTY, LLC,  a Nevada limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			CENTURY LAND HOLDINGS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY LAND HOLDINGS II, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			Century Land Holdings of Texas, LLC,  a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY RHODES RANCH GC, LLC,
a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY TUSCANY GC, LLC,
a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		

		

		 

 

		CHERRY HILL PARK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			COTTAGES AT WILLOW PARK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CROWN HILL, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			ENCLAVE AT BOYD PONDS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			ENCLAVE AT CHERRY CREEK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		ESTATES AT CHATFIELD FARMS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			HEARTH AT OAK MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			HOMETOWN, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			LAKEVIEW FORT COLLINS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			MADISON ESTATES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		MERIDIAN RANCH, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			MONTECITO AT RIDGEGATE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			NEIGHBORHOOD ASSOCIATIONS GROUP, LLC,  a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			RESERVE AT HIGHPOINTE ESTATES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			RESERVE AT THE MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		SADDLEBACK HEIGHTS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			SADDLE ROCK GOLF, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			STETSON RIDGE HOMES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			THE VISTAS AT NOR’WOOD, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			VENUE AT ARISTA, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			VERONA ESTATES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			VILLAS AT MURPHY CREEK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			WATERSIDE AT HIGHLAND PARK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			WILDGRASS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY COMMUNITIES OF GEORGIA, LLC,  a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		CCG CONSTRUCTORS LLC,
a Georgia limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CCG REALTY GROUP LLC,
a Georgia limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT LITTLETON VILLAGE, LLC,  a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT THE MEADOWS, LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT MARVELLA, LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			CENTURY AT WILDGRASS, LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY GROUP LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		SCHEDULE 2.1
		

		
			Commitments and Applicable Percentages
		

		
			 
		

			
					
						Lender

					
					
						Commitment

					
					
						Applicable
Percentage

				
	
					
						Texas Capital Bank, National Association

					
					
						$40,000,000.00

					
					
						20.000000000000%

				
	
					
						Bank of America, N.A.

					
					
						$35,000,000.00

					
					
						17.500000000000%

				
	
					
						Fifth Third Bank

					
					
						$30,000,000.00

					
					
						15.000000000000%

				
	
					
						Vectra Bank Colorado, NA, a National Banking Association

					
					
						$30,000,000.00

					
					
						15.000000000000%

				
	
					
						JPMorgan Chase Bank, N.A.

					
					
						$25,000,000.00

					
					
						12.500000000000%

				
	
					
						Deutsche Bank AG New York Branch

					
					
						$20,000,000.00

					
					
						10.000000000000%

				
	
					
						Bank Midwest, a division of NBH Bank, N.A.

					
					
						$20,000,000.00

					
					
						10.000000000000%

				
	
					
						Total:

					
					
						$200,000,000.00

					
					
						100.000000000000%

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		EXHIBIT B
		

		
			Borrowing Base Report
		

		
			 
		

		
			[The form of Borrowing Base Report follows this cover page.]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		BORROWING BASE REPORT

		

		
			EFFECTIVE DATE: ______________ (the “Subject Month”)
ADMINISTRATIVE AGENT:Texas Capital Bank, National Association
BORROWER:Century Communities, Inc.
		

		
			 
		

		
			This Borrowing Base Report (this “Certificate”) is delivered under the Credit Agreement (the “Credit Agreement”) dated as of October 21, 2014, by and among Borrower, the Lenders from time to time party thereto and Administrative Agent. Capitalized terms used in this Certificate shall, unless otherwise indicated, have the meanings set forth in the Credit Agreement. The undersigned hereby certifies to Administrative Agent and Lenders as of the date hereof that (a) he/she is the ________________ of Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to Administrative Agent on behalf of Borrower, (b) to the best of his/her knowledge, no Default or Event of Default has occurred and is continuing, (c) a review of the activities of Borrower during the Subject Month has been made under the undersigned’s supervision with a view to determining the amount of the current Borrowing Base, (d) the Cash and Equivalents, Entitled Land, LUD, Lots, Model Houses, Pre-Sold Houses and Spec Houses included in the Borrowing Base Property as shown on the attachment, and as summarized below, meet all conditions to qualify for inclusion therein as set forth in the Credit Agreement, and all representations and warranties set forth in the Credit Agreement with respect thereto are true and correct in all material respects as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (e) the information attached hereto and set forth below hereto is true and correct as of the last day of the Subject Month.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BORROWING BASE PROPERTY

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Cash and Equivalents (minus $25,000,000) (100% of value)

					
					
						(+)

					
					
						$____________

				
	
					
						2.

					
					
						Entitled Land (50% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						3.

					
					
						LUD (65% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						4.

					
					
						Lots (75% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						5.

					
					
						Model Houses (85% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						6.

					
					
						Pre-Sold Houses (90% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						7.

					
					
						Spec Houses (90% of cost; reduced to 75% at 18 months, and reduced to 50% at 24 months)

					
					
						(+)

					
					
						$____________

				
	
					
						8.

					
					
						Total of Lines 1 through 7:

					
					
						 

					
					
						$____________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						DEDUCTIONS

					
					
						 

					
					
						 

				
	
					
						9.

					
					
						Aggregate outstanding balance of the Notes

					
					
						(-)

					
					
						$____________

				
	
					
						10.

					
					
						Aggregate outstanding amount of Borrower’s Other Debt

					
					
						(-)

					
					
						$____________

				
	
					
						11.

					
					
						Total of Lines 9 and 10:

					
					
						 

					
					
						$____________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						12.

					
					
						TOTAL NET BORROWING AVAILABILITY
(Line 8 minus Line 11)

					
					
						 

					
					
						
$____________

				
	
					
						 

					
					
						(If result is a negative figure, this amount is due
immediately as a principal payment.)

					
					
						 

					
					
						(not to exceed
Commitment)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		

		

		 

 

		
		

			
					
						 

					
					
						BORROWING LIMITATION (2.3(a)):  Line 15 does not exceed lesser of Line 8 or Credit Facility Amount

					
					
						Yes

					
					
						No

				
	
					
						13.

					
					
						Aggregate outstanding balance of the Notes

					
					
						(+)

					
					
						$____________

				
	
					
						14.

					
					
						L/C Obligations

					
					
						(+)

					
					
						$____________

				
	
					
						15.

					
					
						Total of Lines 13 and 14:

					
					
						 

					
					
						$____________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						16.

					
					
						SPEC HOUSE SUBLIMIT (2.3(h)): The number of Spec Houses in the Borrowing Base does not exceed 50% of the total number of all Houses owned by Borrower (provided, however, the limit will seasonally increase to 60% from 02/01 to 05/31 of each year)

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						____________________  ÷  ___________________  =  
# of Spec Houses in BB        Total # of all Houses

					
					
						 

					
					
						___________%

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						17.

					
					
						COMPLETED SPEC HOUSE SUBLIMIT (2.3(i)): 
The number of Completed Spec Houses in the Borrowing Base does not exceed 25% of the total number of all Houses owned by Borrower

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						________________________  ÷  ________________________  =  
# of Comp. Spec Houses in BB    Total # of all Houses

					
					
						___________%

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						18.

					
					
						RISK ASSETS: Maximum Credit Amount

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Max. Credit Amount of all Land (Line 2): $____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Max. Credit Amount of all LUD (Line 3): $____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Max. Credit Amount of all Lots (Line 4):  $____________

					
					
						Total

					
					
						$__________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						19.

					
					
						RISK ASSETS SUBLIMIT (2.3(j)): 
Revolving Credit Exposure to Risk Assets does not exceed 125% of Tangible Net Worth

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						A. Max. Credit Amount of all Risk Assets: (Line 18)          $_______

					
					
						 

				
	
					
						 

					
					
						B. Max. Credit Amount of all Assets (Line 8):                    $_______

					
					
						 

				
	
					
						 

					
					
						             A ÷ B = __________%    (X%)

					
					
						 

					
					
						 

				
	
					
						 

					
					
						C. Total Revolving Credit Exposure (Line 15):                    $_______

					
					
						 

				
	
					
						 

					
					
						D. Revolving Credit Exposure to Risk Assets:  C x X% =   $________

					
					
						 

				
	
					
						 

					
					
						E. Tangible Net Worth: $_____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						F. Tangible Net Worth x 125% = $_____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						        If D does not exceed F, then “Yes;” otherwise, “No.”

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						*

					
					
						If the Cash and Equivalents ending balances per the Borrowing Base Report do not reconcile to the back-up reports provided, please provide an attached reconciliation explaining the discrepancies.

				

		

		

		 

 

		
		

		
			IN WITNESS WHEREOF, the undersigned has executed this Certificate as of _________________________, ______.
		

		
			 
		

		
			RESPONSIBLE OFFICER:

Name:David Messenger
Title: Chief Financial Officer
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Attach a schedule of Borrowing Base Property.]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		EXHIBIT C
		

		
			Compliance Certificate
		

		
			 
		

		
			[The form of Compliance Certificate follows this cover page.]
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		
		

		 

 

		COMPLIANCE CERTIFICATE
		

		
			FOR MONTH/QUARTER/YEAR  ENDED _________________ (the “Subject Period”)
ADMINISTRATIVE AGENT:Texas Capital Bank, National Association
BORROWER:Century Communities, Inc.
		

		
			
This Compliance Certificate (this “Certificate”) is delivered under the Credit Agreement (the “Credit Agreement”) dated as of October 21, 2014, by and among Borrower, the Lenders from time to time party thereto and Administrative Agent.  Capitalized terms used in this Certificate shall, unless otherwise indicated, have the meanings set forth in the Credit Agreement.  The undersigned hereby certifies to Administrative Agent and Lender as of the date hereof that:  (a) he is the ____________________________ of Borrower, and that, as such, he is authorized to execute and deliver this Certificate to Administrative Agent on behalf of Borrower; (b) he has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under his supervision, a detailed review of the transactions and condition (financial or otherwise) of Borrower during the Subject Period; (c) during the Subject Period, to the best of his knowledge, Borrower performed and observed each covenant and condition of the Loan Documents applicable to it and no Default or Event of Default currently exists or has occurred which has not been cured or waived by Required Lenders or all Lenders, as required by the Loan Documents; (d) the representations and warranties of Borrower contained in Article 6 of the Credit Agreement, and any representations and warranties of Borrower that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Certificate, the representations and warranties contained in Section 6.2 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Section 7.1 of the Credit Agreement, including the statements in connection with which this Certificate is delivered; (e) the financial statements of Borrower attached to this Certificate were prepared in accordance with GAAP, and present, on a consolidated basis, fairly and accurately the financial condition and results of operations of Borrower and its Subsidiaries as of the end of and for the Subject Period; (f) the financial covenant analyses and information set forth below are true and accurate on and as of the date of this Certificate; and (g) the status of compliance by Borrower with certain covenants of the Credit Agreement at the end of the Subject Period is as set forth below:
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						In Compliance as of
End of Subject Period
(Please Indicate)

				
	
					
						1.

					
					
						Financial Statements and Reports

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(a)

					
					
						Provide annual audited FYE financial statements within 90 days after the last day of each fiscal year.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(b)

					
					
						Provide quarterly financial statements within 45 days after the last day of each fiscal quarter.

					
					
						Yes

					
					
						No

				

		 

 

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(c)

					
					
						Provide monthly Borrowing Base Report within 30 days after the last day of each month.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(d)

					
					
						Provide a quarterly Compliance Certificate within 45 days after the last day of each fiscal quarter.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(e)

					
					
						Provide monthly Inventory and Sales Status Report within 30 days after the last day of each month.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(f)

					
					
						Provide annual projections at least 90 days prior to the start of each fiscal year

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2.

					
					
						Real Estate Subsidiaries
None, except as listed on Schedule 6.13, or that have executed a Guaranty.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3.

					
					
						Debt
None, except Debt permitted by Section 8.1 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						4.

					
					
						Liens
None, except Liens permitted by Section 8.2 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						5.

					
					
						Acquisitions and Mergers
None, except those permitted by Section 8.3 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						6.

					
					
						Dividends and Stock Repurchase
None, except as permitted by Section 8.4 of the Credit Agreement.
(if applicable, Dollar amount during Subject Period:  $_____)

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						7.

					
					
						Loans and Investments
None, except those permitted by Section 8.5 of the Credit Agreement.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						8.

					
					
						Issuance of Equity
None, except issuances permitted by Section 8.6 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						9.

					
					
						Affiliate Transactions
None, except transactions permitted by Section 8.7 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		 

 

			
					
						10.

					
					
						Dispositions of Assets
None, except dispositions permitted by Section 8.8 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						11.

					
					
						Sale and Leaseback Transactions 
None, except transactions permitted by Section 8.9 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						12.

					
					
						Prepayment of Debt
None, except prepayments permitted by Section 8.10 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						13.

					
					
						Changes in Nature of Business
None, except changes permitted by Section 8.11 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						14.

					
					
						Environmental Protection
No activity likely to cause violations of Environmental Laws or create any Environmental Liabilities.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						15.

					
					
						Changes in Fiscal Year; Accounting Practices
None, except transactions permitted by Section 8.13 of the Credit
Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						16.

					
					
						No Negative Pledge
None, except those permitted by Section 8.14 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						17.

					
					
						Leverage Ratio
Maximum of 1.50 to 1.00 at end of Subject Period
(Defined as Debt divided by TNW).

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						_____________   ÷   _______________   =   ____________
DebtTNW

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						18.

					
					
						Interest Coverage Ratio

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						Minimum of 1.50 to 1.00 at end of Subject Period (Defined as EBITDA divided
by Cash Interest Expense; calculated on a rolling 4 quarter basis).

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						_____________   ÷   _______________   =   ____________
EBITDAInterest Expense

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		 

 

			
					
						19.

					
					
						Tangible Net Worth (TNW)
Minimum of $_________ at end of Subject Period (defined as
(a) $261,037,000 plus (b) 50% of net proceeds of equity issuances
plus (c) beginning with the quarter ending June 30, 2015, the sum of 50% of the amount of net income (without deduction for net loss) for each fiscal quarter after the Closing Date.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Equity Issuances:  $____________ X 50% = $___________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Net Income:$____________ X 50% = $___________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						$261,037,000 + ____________ + ___________ = ___________
  50% of Equity      Net Income
  Issuances       after Closing Date

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Tangible Net Worth: $__________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						20.

					
					
						Liquidity
Minimum of $25,000,000 at end of Subject Period 

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						________   +  ______________  -  __________  =   ___________
Cash           Available to Draw   Accts. Payable    Liquidity

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						21.

					
					
						Risk Asset Ratio
Maximum of 1.25 to 1.00 at end of Subject Period
(Defined as Risk Assets divided by Tangible Net Worth).

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						________   +  ______________  +  __________  =   ___________
Land           LUD                          Lots                     Risk Assets

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						_____________   ÷   _______________   =   ____________
Risk AssetsTNW

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		

		

		 

 

		
		

		
			IN WITNESS WHEREOF, the undersigned has executed this Certificate as of _________________, _______.
		

		
			 
		

		
			RESPONSIBLE OFFICER:

Name: David Messenger
Title: Chief Financial Officer

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