Document:

Exhibit 10.1

 

SECOND
AMENDMENT TO AGREEMENT AND PLAN OF MERGER

 

This
SECOND AMENDMENT TO AGREEMENT AND PLAN OF MERGER (this “Amendment”) is made as of June 30, 2013, by and among Broadcast
International, Inc., a Utah corporation (“Parent”), Alta Acquisition Corporation, a Nevada corporation (“Merger
Sub”) and AllDigital Holdings, Inc., a Nevada corporation (the “Company”) with respect to the Agreement and Plan
of Merger dated January 6, 2013 among Parent, Merger Sub and the Company, as previously amended by the First Amendment to Agreement
and Plan of Merger dated April 10, 2013 (the “Merger Agreement”).

 

W
I T N E S S E T H:

 

WHEREAS,
the parties to the Merger Agreement desire to amend the effective exchange ratio in the Merger (as implemented by the definition
of Aggregate Merger Consideration) and to add and amend certain conditions to Closing, all as provided herein;

 

NOW,
THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants and agreements set forth
herein, as well as other good and valuable consideration set forth herein and in the Merger Agreement, the receipt and sufficiency
of which are hereby acknowledged and accepted, and intending to be legally bound hereby, Parent, Merger Sub and the Company hereby
agree as follows:

 

	1.	 	Defined
    Terms. Capitalized terms used but not defined herein shall have the meanings ascribed to them under the Merger Agreement.
	 	 	 
	2.	 	Amendments to Merger
    Agreement.
	 	 	 	 	 
	 	 	a.	 	Amendment to Aggregate Merger Consideration.
    The definition of “Aggregate Merger Consideration ” in the Merger Agreement is hereby deleted and replaced with
    the following:
	 	 	 	 	 
	 	 	 	 	“Aggregate
    Merger Consideration” shall
    mean the product, rounded up to the nearest full share of Parent Common Stock, of (a) the Parent Fully Diluted Common Stock
    as of the Effective Time (after the Reverse Stock Split), multiplied by (b) 1.380952381. For purposes of clarity, shares of
    Parent Common Stock issuable following Closing pursuant to subscription agreements and capital commitments anticipated by
    Section 7.20 shall not affect calculation of the Aggregate Merger Consideration (i.e. shall not be part of Parent Fully Diluted
    Common Stock).
	 	 	 	 	 
	 	 	b.	 	Amendment
    to Adjusted Working Capital Closing Condition. Section 7.14 of the Merger Agreement is hereby deleted and replaced with
    the following:
	 	 	 	 	 
	 	 	 	 	7.14 Working Capital. The Adjusted Working Capital of Parent
    immediately prior to Closing shall be an amount equal to or greater than zero. “Adjusted Working Capital” shall
    mean (a) cash and cash equivalents, and accounts receivable, net of an allowance for doubtful accounts, each determined in
    accordance with GAAP less (b) current liabilities determined in accordance with GAAP, excluding current liabilities that by
    their governing terms convert into Parent Common Stock at the Effective Time and are included in the calculation of Parent
    Fully Diluted Common Stock.

 

    	 

    	 

    

 

	 	 	c.	 	Amendment
    to Monthly Net Cash Flow. Section 7.16 of the Merger Agreement is hereby deleted and replaced with the following:
	 	 	 	 	 
	 	 	 	 	7.16 Monthly Not Cash Flow, Parent’s Monthly Net Cash Flow
    for the preceding thirty days shall be equal to or greater than a $10,000 monthly deficit. “Monthly Net Cash Flow”
    shall mean cash flow from operations determined in accordance with GAAP, less capital expenditures.
	 	 	 	 	 
	 	 	d.	 	Committed
    Capital. A new Section 7.20 is added to the Merger Agreement, which shall provide as follows:
	 	 	 	 	 
	 	 	 	 	7.20 Capital Commitment. There
    shall be in place valid, binding and irrevocable subscription agreements or other commitments with respect to the purchase
    from Parent immediately following Closing of no less than $1.5 million, and no more than $3.5 million, in Parent Common Stock
    on terms and conditions approved in writing by the Company in its discretion with investors approved by the Company in writing
    on a subscription-by-subscription basis. No counterparty to any such subscription agreement or commitment shall be in default
    or shall have asserted that Parent is in default or that any conditions to the counterparty’s obligation to close such financing
    is not satisfied or will not be satisfied upon the Closing.
	 	 	 	 	 
	 	 	e.	 	End Date. The “End Date”
    in Section 8.1(b) of the Merger Agreement shall be changed from July 31, 2013 to October 31, 2013.
	 	 	 	 	 
	 	 	f.	 	Directors At Closing. The reference
    to “five directors” in Section 7.10(b)(i) of the Merger Agreement shall be modified to read “a number of directors
    equal to the number of directors on Schedule 5.11 that have identified as of the date proposed for Closing”. The
    portion of Schedule 5.11 entitled “Directors” shall be deleted and replaced with the following:
	 	 	 	 	 
	 	 	 	 	Directors
	 	 	 	 	Donald A. Harris
	 	 	 	 	Paul Summers
	 	 	 	 	David Williams
	 	 	 	 	Up to two additional directors approved
    by Company and Parent prior to Closing.
	 	 	 	 	 
	 	 	g.	 	Reverse
    Stock Split. The definition of “Reverse Stock Split” shall be deleted and replaced with the following:
	 	 	 	 	 
	 	 	 	 	“Reverse Stock Split” shall
    mean a consolidation (a/k/a reverse stock split) of each class and series of capital stock of Parent at a ratio of fifteen
    (15) pre-consolidation shares to one (1) post-consolidation share or such other ratio as mutually agreed upon by Parent and
    the Company and set forth in the Joint Proxy Statement/Prospectus, as the same may be amended from time to time.
	 	 	 	 	 
	3.	 	No Other Changes. As amended by this Amendment,
    the Merger Agreement remains in full force and effect and is hereby ratified and confirmed by Parent, Merger Sub and the Company.
	 	 	 	 	 
	4.	 	Misc. Terms. This Amendment shall be governed
    by the general terms and provisions set forth in Section 9 of the Merger Agreement.

 

[intentionally
left blank; signature page follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this SECOND AMENDMENT TO AGREEMENT AND PLAN OF MERGER to be duly executed by their
respective authorized officers as of the day and year first above written.

 

	 	BROADCAST
    INTERNATIONAL INC.
	 	 
	 	By:	/s/ JAMES E. SOLOMON
	 	Name:	JAMES E. SOLOMON
	 	Title:	CFO
	 	 	 
	 	ALTA
    ACQUISITIONS CORPORATION
	 	 	 
	 	By:	/s/ JAMES E. SOLOMON
	 	Name:	JAMES E. SOLOMON
	 	Title:	CFO
	 	 	 
	 	ALLDIGITAL
    HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Paul Summers
	 	Name:	Paul Summers
	 	Title:	CEO

 

[Signature
Page to Second Amendment to Agreement and Plan of Merger]Exhibit 10.2

 

ALLDIGITAL EMPLOYMENT AGREEMENT

 

KON WILMS

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of June 28, 2013 (the “Effective Date”),
by and between AllDigital, Inc., a California corporation (the “Company”), and Kon Wilms (“Employee”). In consideration
of the mutual covenants set forth below, the Company and Employee hereby agree as follows:

 

1.
Employment Offer Contingencies.
Employee will be required, as a condition of employment with the Company, to: (a) successfully complete a background check; (b)
execute the Company’s Confidential, Proprietary Information and Invention Assignment Agreement, (c) execute the Company’s Security
Training Acknowledgement Form, (d) provide, as required by law, legal proof of identity and authorization to work in the United
States, and (e) if applicable, obtain a written consent or release from Employee’s current employer to join Company in the form
of the Company’s Release Agreement. The above documents will be provided in advance and Employee will have adequate time to review
them, but the documents must be completed and submitted to Employer no later than Employee’s first day of employment with the Company.
Upon commencement of employment, Employee will be provided a copy of the Company’s Employee Handbook which Employee will be required
to review and execute and written acknowledgement thereof within 30 days of beginning employment with the Company.

 

2.
At Will Employment. The Company
hereby employs Employee, and Employee hereby accepts employment by the Company. The parties acknowledge and agree that the Employee’s
employment relationship is “at-will”, meaning that either party may terminate the employment relationship for any reason
(or no reason at all) at any time, with or without cause and with or without or prior notice. Any termination of Employee by the
Company shall be by action of the Board of Directors of the “Parent Company.” “Parent Company” shall mean any
entity that wholly-owns the Company and, if that entity is wholly-owned by another entity, shall include the entity that wholly-owns
the entity that owns the Company. The ultimate Parent Company, and its consolidated direct and indirect subsidiaries, are referred
to herein as the “Consolidated Company.”

 

3.
Services. Employee shall serve
as Chief Architect of the Company (or Consolidated Company, as the case may be) and perform such services for the Company as are
customary for such position and those services that may be assigned to him by the Chief Executive Officer (“CEO”) and/or
Board of Directors of the Parent Company, which shall include supporting and managing the execution of the Company’s plans for
the AllDigital Cloud platform, platform extensions, and Integration Services efforts. This also includes the following: (1) leading
and managing development efforts as directed by the Company’s CEO, (2) working with the Company’s internal resources to ensure
customer solutions are responsive to their functional requirements, (3) managing development resources to ensure customer solutions
are developed in accordance with software development industry best practices and agreed upon schedules, (4) supporting the Company’s
deal desk in the technical review and pricing of customer proposals, (5) developing, building, managing and maintaining the Company’s
software related processes and tools; (6) providing technical due diligence support related to potential acquisitions by the Company,
and (7) other duties as may be assigned by the CEO and/or Parent Company Board of Directors.

 

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4.Outside Activities.
During the term of this Agreement, or any extensions thereof, Employee agrees to not engage in any other gainful employment,
business or activity that is competitive to, or in conflict (directly, indirectly, actual or potential) with the Consolidated
Company, without the written consent of the Company. While Employee renders services to the Consolidated Company, Employee will
not assist any person or organization in competing with the Consolidated Company, in preparing to compete with the Consolidated
Company, or in hiring any employees of the Consolidated Company.

 

5. Work
and Reside in Orange County. Employee agrees that he will work full time at the Company’s main office in Irvine.
California, and be required to reside (in a primary residence) in the immediate Irvine or greater Orange County, California metropolitan
area for the duration of Employee’s employment.

 

6. Restrictive Covenants
During Term.

 

(a)
During his employment by the Company, Employee shall devote his full time and services exclusively to the Consolidated Company
and will not, without the prior written consent of the Board of Directors of the Parent Company, own, either directly or indirectly,
any interest in any privately-held business or commercial enterprise which is competitive with the business conducted by the Consolidated
Company. Furthermore, Employee shall not, without the prior written consent of the Board of Directors of the Parent Company, serve
as a partner, officer, director, advisor or employee of, or act in any other similar capacity for, any business or commercial enterprise
which is competitive with the business conducted by the Consolidated Company. However, nothing contained in this Section 6 shall
be construed to prohibit Employee from purchasing the stock or other securities of any corporation or other business entity whose
stock or securities are traded on any national or regional securities exchange or in the national over-the-counter market.

 

(b)
During his employment by the Company, Employee shall comply with all employee manuals, handbook, policies and procedures adopted
by the Board of Directors of the Company, unless such manual, handbook, policies or procedure expressly provides that it is not
applicable to Employee or a person holding Employee’s position. Without limiting the generality of the foregoing, and whether included
in any manual, handbook, policy or procedure, Employee shall not enter into any agreement (written or verbal) or other instrument
that includes a financial, service or other obligation on the part of any Consolidated Company unless another executive officer
of the Company has reviewed and approved such agreement or instrument.

 

7. Compensation.

 

a.
Base Salary. As compensation for the services to be performed hereunder, Employee shall receive an annual base salary
(“Base Salary”) of $13,350.00 per month. The Base Salary shall be subject to adjustment upward, but not downward, in
the sole and absolute discretion of the Parent Company’s Board of Directors. All Base Salary hereunder shall be payable in accordance
with the Company’s customary payroll practices and subject to federal and state withholding requirements. Notwithstanding anything
else set forth herein to the contrary, within sixty (60) days of the date the Consolidated Company first achieves a minimum of
Cash and Accounts Receivable (as defined below) of at least Three Million Five Hundred Thousand Dollars ($3,500,000), the Parent
Company’s Board of Directors shall approve an increase in the Employee’s Base Salary by an amount not less than the amount obtained
by multiplying Employee’s then current Base Salary by five percent (5%). For purposes of this Agreement, “Cash and Accounts
Receivable” of the Company means the sum of (i) the consolidated total balance of cash and short-term investments of the Company,
and (ii) the total balance of accounts receivable of the Company excluding the effect of any deferred revenue offsets.

 

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b.
Bonuses. Employee will have the
ability to earn an amount up to $10,000, in addition to Employee’s the annual Base Salary, as a “Management by Objective Bonus”
(“MBO Bonus”). The MBO Bonus will be deemed earned by the Employee following the successful achievement of quarterly
objectives approved in writing by the Parent Company’s Board of Directors. The MBO Bonus will be payable in quarterly payments.
The MBO Bonus, if earned, will be paid within 45 days of the end of the fiscal quarter, cxcept for any bonus due and payable at
the Company’s year-end, which will then be due no later than March 15 of the following year. If Employee’s employment is terminated
for any reason during any bonus term, the Employee will receive the payment of his pro-rated share of the MBO Bonus within 45 days
of the end of the fiscal quarter provided that the written objectives for that quarter were in the process of being achieved (as
reasonably determined by the Parent Company’s Board and Directors) or were actually achieved during that fiscal quarter.

 

c. Payment Upon Termination.

 

(i)
Subject to the following paragraph and the last sentence of this paragraph, upon any termination of Employee’s employment by the
Company (other than a termination for “Cause” as that term is defined below), the Company shall pay to Employee, in addition
to any accrued but unpaid compensation and accrued but unused Paid Time Off pay earned
by Employee through the effective date of the termination of employment, the following “Severance Amount”: (A) an amount
equal to one year’s Base Salary at the annual rate of Base Salary being paid to Employee as of the effective date of the termination
of employment, and (B) an amount equal to 100% of Employee’s group health and dental insurance premiums with the Company (or, at
the election of the Company, 100% of the amount payable under COBRA necessary to maintain Employee’s health and dental insurance)
for a period of one year following Employee’s date of termination. Notwithstanding anything in this Agreement to this contrary,
(Y) any obligation of the Company to pay any portion of the Severance Amount shall immediately and automatically cease, without
notice or opportunity to cure, upon Employee’s breach of Section 9 or 10 during, or following termination of, Employee’s employment
with the Consolidated Company, and (Z) any obligation of the Company to pay any portion of the severance amount shall be suspended
(but not terminated) at the option of the Company (1) during any period that the Parent Company’s independent public accountants
require the Consolidated Company to include a going concern qualification in the financial statements, until such going concern
qualification is removed or eliminated, (2) during any calendar month in which the Consolidated Company’s current ratio (i.e. ratio
of current assets to current liabilities) as of the last day of the prior calendar month was less than 2.5, or (3) during any period
in which the Consolidated Company has current assets of less than $650,000; provided, however, none of (1), (2) or (3) shall apply
if the Consolidated Company has cash or cash equivalents in excess of $1
million.

 

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Payments
of the cash portion of the Severance Amount shall be made to Employee in six equal monthly installments, less any applicable taxes,
except as set forth below in this paragraph. Notwithstanding anything in this subsection (c) (i) to the contrary: (A) no base salary
continuation or bonus amount otherwise payable to the Employee under this subsection (i) shall be paid unless and until the Employee
incurs a “separation from service” (as defined in Treasury Regulation Section 1.409A-l(h)) from the Company (a “Separation
from Service”) (with any amounts deferred as a result of this subsection (A) being payable promptly following such Separation
from Service and as permitted by subsection (B)); and (B) any base salary and bonus amounts that are otherwise due or payable under
this subsection (c)(i) during the six- month period following the Employee’s Separation from Service shall instead be deferred
and paid to the Employee within five business days after, but in no instance prior to, the six-month anniversary of Employee’s
Separation from Service (or, if earlier, the date of Employee’s death) if and to the extent that such amounts (1) do not constitute
“separation pay due to involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-l(b)(9)(iii);
and (2) are subject to Section 409A of the Internal Revenue of 1986, as amended (the “Code”). The foregoing restrictions
on the payment of continuing base salary and bonus are intended to comply with the requirements of Section 409A of the Code and
shall be interpreted consistently with that intent.

 

(ii)
Upon any termination of Employee’s employment by the Company for “Cause”, the Company shall pay to Employee any accrued
but unpaid compensation and accrued but unused Paid Time Off earned by Employee through the effective date of the termination of
his employment. As used herein, the term “Cause” shall mean (a) Employee’s conviction of, or plea of guilty,
nolo contendere or the equivalent, in any criminal action involving a felony, (b) Employee’s misappropriation of any
material funds or property of the Company, (c) Employee’s willful misconduct in the performance of his duties for the Company,
(c) Employee’s breach of any of the covenants set forth in Sections 4, 5, 6, 9 or 10, or (d) the continuation of any breach, or
repeat of any breach, by Employee of any covenant not designated in subsection (c) of this paragraph after the Company has given
Employee written notice identifying such breach.

 

(iii)
If Employee elects to terminate his employment with the Company for “Good Reason,” Employee shall be entitled to the
same Severance Amount as set forth in subsection (c)(i) above, including the modifying restrictions set forth in the last sentence
of the first paragraph, and the second paragraph, of subsection (c)(i). “Good Reason” shall mean (A) a material reduction
of Employee’s compensation, responsibilities or duties; (B) a change in the principal place of Employee’s employment such that
it causes Employee to relocate or materially increases Employee’s commute time; or (C) any other event that is a functional equivalent
of an involuntary termination and which falls within the safe-harbor provisions related to termination for good reason set forth
in the regulations implementing Section 409A of the Code.

 

(iv)
The payments described in this Section 7(c) shall constitute the entirety of the compensation payable to Employee by the any Consolidated
Company upon a termination of his employment with the Company.

 

8.
Employee Benefits.

 

a.
Paid Time Off. Employee shall be entitled to Paid Time Off (“PTO”) plus company holidays in accordance with
the PTO and Holiday policies set forth in the Company’s Employee Handbook. Initially, it is understood that Employee shall be entitled
to of a maximum of 24 days per year, accruing at a rate of two days per month, and a maximum accrual of 24 days at any one point
in time, excluding paid holidays, the scheduling of which will be approved in advance (generally at least one month in advance)
by the Chief Executive Officer, which approval will not be unreasonably withheld.

 

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b.
Group Health Insurance Benefits.
The Company shall provide for Employee and his dependents, at the Company’s expense, participation in such health, accident and
dental insurance plans as are made available generally to the Company’s senior executive management level employees (i.e. officers
party to substantially similar written employment agreements) from time to time.

 

c.
Business Expenses. Employee shall
be entitled to reimbursement by the Company for any ordinary and necessary expenses reasonably incurred by Employee in the performance
of his duties and in acting for the Company, provided that:

 

i.
Each such expenditure over $ 1,000.00 is pre-approved in writing by the Employee’s supervisor, or in the case of the Chief Executive
Officer, by another executive officer of the Company, in accordance with Company policy.

 

ii.
Employee furnishes to the Company such documentation regarding such expenses as is required by the rules and policies relating
to expense reimbursements that the Company shall from time to time establish in order to permit such reimbursement payments to
be taken as proper deductions by the Company under applicable state and federal tax laws.

 

Repeated
violations of this provision shall be deemed cause for termination as defined in Section 7(c)(ii)(d).

 

d.
Indemnification. Employee shall
have the full benefit of all provisions of the Company’s limits of liability as may be provided to an employee of the Company in
the Company’s articles of incorporation, bylaws, and California Labor Code Section 2802 providing for indemnification of Employee
in the circumstances described therein.

 

9. Confidential Information.

 

a.
Access to Confidential and Trade Secret Information. Employee acknowledges that during the course of Employee’s retention
by the Consolidated Company, Employee will be exposed to and provided documents and other information regarding the confidential
business and technical affairs of the Consolidated Company, whether reduced to writing, maintained on any form of electronic media
or maintained in the mind or memory and whether compiled by Employee or the Consolidated Company, including, without limitation,
information about the Consolidated Company’s past, present and future financial condition, the markets for its products, key personnel,
past, present or future actual or threatened litigation, trade secrets, current and prospective customer lists, operational methods,
acquisition plans, prospects, plans for future development, pricing information, cost information, sources of supply, sources of
customers, customer lists, identities and purchasing characteristics and histories, business plans, models, projections or prospects,
actual and/or projected expenses, actual and/or projected revenues, actual and/or projected profits, financial information, data,
know-how, formulae, processes, designs, specifications, drawings, contract rights, and other information concerning
the Consolidated Company’s organization, business
operations, business affairs, marketing plans, clients, customers, suppliers, vendors, licensees, or licensors, of a confidential,
proprietary, or secret nature not readily available to the public (the “Confidential Information”).

 

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Employee
expressly acknowledges that this Confidential Information has independent economic value from not being readily known, disclosed
to or ascertainable by proper means by the public and/or others in the industry and business of the Consolidated Company, and that
reasonable efforts have been made by the Consolidated Company to maintain the secrecy of such Confidential Information, and this
Confidential Information shall be considered and deemed the Consolidated Company’s trade secrets and confidential, proprietary
information.

 

b.
No Disclosure or Use of Confidential Information. At no time during Employee’s employment or thereafter shall Employee
ever divulge, disclose, or otherwise use any Confidential Information for any purpose other than to do and perform the business
and activities of the Consolidated Company, unless and until such information is readily available in the public domain by reason
other than Employee’s disclosure or use thereof in violation of this Section 9, or unless such disclosure is required by law. Employee
specifically acknowledges that the Confidential Information derives independent economic value from not being readily known, disclosed
to or ascertainable by proper means by the public or the industry or business of the Consolidated Company, that reasonable efforts
have been made by the Consolidated Company to maintain the secrecy of such Confidential Information, that such Confidential Information
is the sole property of the Consolidated Company, is considered the Consolidated Company’s trade secrets, and that any retention,
use or disclosure of such Confidential Information by Employee (except in the course of performing duties hereunder) shall constitute
a misappropriation of trade secrets of the Consolidated Company and/or unfair competition.

 

10.
Non-Solicitation. Employee shall
not, for a period of 12 months following the termination of his employment with the Consolidated Company, for any reason whatsoever,
directly or indirectly, for himself or for, on behalf of or in conjunction with any other person or entity, solicit or induce any
employee, agent, independent contractor or consultant of or to the Consolidated Company to terminate his, her or its employment
or other relationship with the Consolidated Company for the purpose of associating with any competitor of the Consolidated Company
or otherwise encourage any such person to leave or sever his, her or its employment or other business relationship with the Consolidated
Company.

 

11.
Damages and Injunction. Because
of the difficulty of measuring economic losses to the Consolidated Company as a result of a breach by Employee of the provisions
of Sections 9 and 10 hereof, and because of the immediate and irreparable damage that could be caused for which it would have no
other adequate remedy, Employee agrees that the provisions of Sections 9 and 10 hereof may be enforced by the Consolidated Company
in the event of breach or threatened breach by Employee, by injunctions and restraining orders without having to post a bond or
other security. Such actions may be taken in state or federal court notwithstanding the inclusion of an arbitration provision in
this Agreement. Nothing herein shall be construed as prohibiting the Consolidated Company from pursuing any other available remedy
for such breach or threatened breach, including the recovery of damages as provided for in this Agreement.

 

12.
Agency and Authority. Employee
agrees that his employment by the Company shall deem him an agent for the Company only for such purposes as are customary for his
position. Employee agrees that he will not act or purport to act in any way for the Company, except as to matters directly related
to his employment or as may otherwise be authorized by the Parent Company’s Board of Directors.

 

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13.
Severability. Nothing contained
in this Agreement shall be construed as requiring the commission of any act contrary to law, and wherever there is any conflict
between any provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties
have no legal right to contract, the latter shall prevail, but in such event, the provision of this Agreement thus affected shall
be curtailed and limited only to the extent necessary to bring it within the requirements of the law. In the event that any part,
article, paragraph, section or clause of this Agreement shall be held to be indefinite or invalid, the entire Agreement shall not
fail on account thereof, and the balance of the Agreement shall continue in full force and effect.

 

14.
Notices. Any notice required to
be given under this Agreement shall be in writing and shall be deemed effective upon personal delivery or three (3) days after
deposit in the U.S. mail, postage prepaid and properly addressed to the party entitled to such notice, at the address indicated
beside such party’s signature line on this Agreement or at such other address as such party may designate by ten (10) days advance
written notice under this paragraph to all other parties to this Agreement.

 

15.
Amendment. Any waiver, alteration
or modification of any of the provisions of this Agreement or cancellation or replacement of this Agreement shall not be valid
unless made in writing and signed by the parties hereto.

 

16.
Governing Law. This Agreement shall
be construed and governed in accordance with the laws of the State of California applicable to contracts executed and to be wholly
performed within the State of California, with venue and jurisdiction for any dispute in the County of Orange.

 

17.
Waiver. Waiver by either party
of the breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.

 

18.
Arbitration. In the event of any
dispute or any claim arising out of this agreement, the termination of Employee’s employment, or the employment relationship between
the Employee and the Company (including, but not limited to, any claims of wrongful termination or claims for discrimination based
on race, age, sex, disability, creed, color, religion, sexual orientation, marital status, or any other protected category, under
California Fair Employment and Housing Act, Title VII of the Civil Rights Act, Age Discrimination in Employment Act, or Americans
with Disabilities Act), Employee and the Company agree that all such disputes shall be fully and finally resolved by binding arbitration
conducted under the rules of the California Arbitration Act, Code of Civil Procedure Section 1280 et seq. (the “Arbitration
Act”). The parties shall (1) select a neutral arbitrator from a panel obtained from Orange County Superior Court
(or some other source mutually agreed upon between the parties), (2) be permitted adequate and reasonable discovery necessary to
arbitrate or resolve all issues in dispute in the arbitration, and (3) direct the arbitrator to render a written award setting
forth his findings of fact and conclusions of law which shall be afforded appropriate judicial review as permitted by and provided
for in the Arbitration Act and state laws interpreting the Arbitration Act. Each party shall bear his or its own expenses incurred
in connection with the arbitration, including attorneys’ fees and costs, except that the Company will pay all the arbitrator’s
costs and fees unique to the arbitration. This arbitration provision shall not apply to claims for unemployment insurance benefits
filed with the Employment Development Department or to claims for normal workers compensation benefits filed with the Workers Compensation
Appeals Board. In the event Employee prevails in the resolution of any dispute arising out of this agreement, Company shall reimburse
Employee for all expenses Employee incurred in connection with the arbitration, including attorneys fees and costs, and any other
costs, fees or attorneys fees as may otherwise be provided under state or federal law.

 

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19.
Entire Agreement. This Agreement,
along with the other documents and agreements executed contemporaneously herewith by the parties, which includes the Confidential,
Proprietary Information and Invention Assignment Agreement, the Offer Letter, New Hire Information Form, and the SBW Security Training
Acknowledgement Form, and any Stock Option Agreements (incorporating the Amended and Restated 2011 Stock Incentive Plan), contains
all the terms and conditions agreed upon by the parties hereto and sets forth the entirety of the consideration to which Employee
shall be entitled hereunder. No other agreements, oral or otherwise, shall be deemed to exist or to bind any of the parties hereto
in any manner related to this Agreement. No officer or employee of the Company has any authorization to make any representation
or promise in any manner related to this Agreement not contained in this Agreement, and Employee agrees that he has not executed
this Agreement in reliance upon any such representation or promise. This Agreement cannot be modified or changed except by written
instrument, signed by both parties hereto.

 

20.
Employee Handbook. Employee shall
be governed by the personnel rules and regulations set forth in the Company’s employee handbook and related documents. To the extent
there exists a conflict between this Agreement and the personnel rules and regulations of the Company, this Agreement shall be
the controlling document and supersede any conflicting policy.

 

21.
Section Headings. The headings
of this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

22.
Counterparts. This Agreement may
be executed in a number of counterparts, each of which shall be construed as an original for all purposes.

 

23.
Acceleration of Vesting of Options.
Upon the occurrence of a “Transaction” as defined in paragraph 9.2 of the 2011 Stock Incentive Plan, as the same may
be amended and/or restated from time to time (the “Incentive Plan”) other than the Broadcast Merger (as defined below),
all stock options granted to Employee after May 31, 2013 in connection with his employment at the Company shall immediately vest,
and Employee will have the immediate right and option to exercise such options on the terms and conditions set forth in the option
agreement and the Incentive Plan. The accelerated vesting described herein shall occur regardless of any contrary provision or
language found in the Incentive Plan or any option agreement. If any option agreements with Employee representing options granted
after May 31, 2013 do not include the accelerated vesting provisions required by this Section 23, the Employee and the Company
(or the Parent Company) shall amend such agreements in order to reflect the terms of this Section 23. The “Broadcast Merger”
shall mean the proposed merger of AllDigital Holdings Inc., with a subsidiary of Broadcast International, Inc. pursuant to the
Agreement and Plan of Merger and Reorganization dated January 6, 2013, as amended.

 

    	8

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year first above written.

 

	 	 	ALLDIGITAL,INC.
	 	 	 
	 	 	By:	/S/ PAUL SUMMERS
	 	 	Its:	CEO
	 	 	Date:	 July 2, 2013
	 	 	 	 
	ADDRESS:	 	 	220 Technology Dr. STE 100
	 	 	 	Lrvine,CA 
	 	 	 	 
	 	 	EMPLOYEE
	 	 	 
	 	 	 	/S/ KON WILMSK
	
         

         
	 	Date:	 July 2, 2013
	 	 	 	 
	ADDRESS:	 	 	26321 PACATO DR.
	 	 	 	MISSION VIEJO, CA 92691
	 	 	 	 

    	9

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