Document:

AMENDMENT
AND EXCHANGE AGREEMENT

 

This
Amendment and Exchange Agreement (the “Agreement”), dated as of July 31, 2015, is made by and among AllDigital
Holdings, Inc., a Delaware corporation (the “Company”) and the investors constituting the holders of at least
a majority in principal amount (“Majority in Interest”) of the Company’s 5% Senior Secured Convertible
Note due December 31, 2016 (“Original Notes”) identified on the signature pages hereto. Capitalized terms used
but not otherwise defined in this Agreement shall have the meanings ascribed to them in the Securities Purchase Agreement (the
“Purchase Agreement”) by and among the Company and each of the holders (each an “Investor”
and collectively, the “Investors”) of the Company’s Original Notes, effective as of the date the Purchase
Agreement was executed by the Company.

 

RECITALS

 

A.Each
Investor purchased an Original Note from the Company pursuant to the Purchase Agreement, and, in connection therewith, also entered
into a Security Agreement dated as of the effective date of the Purchase Agreement (“Original Security Agreement”).

 

B.The
Company desires to extend the Note Maturity Date (as defined in the Original Notes) of the Original Notes to December 31, 2017
and make all unpaid interest due and payable on the Note Maturity Date and therefore, the Company and the holders of at least
the Majority in Interest of the Original Notes desire to enter into this Agreement, pursuant to which, among other things, the
Company and each Investor shall exchange the Original Note held by each such Investor for a 5% Senior Secured Convertible Note
due December 31, 2017 with unpaid interest due and payable on the new maturity date (collectively, the “Exchanged Notes”).
The Exchanged Notes will be substantially identical to the Original Notes except that the maturity date of the Exchanged Notes
will be December 31, 2017 and all unpaid interest due and payable under the Exchanged Notes will be due and payable on the new
maturity date. The Exchanged Notes will be convertible into common stock of the Company (the “Exchanged Conversion
Shares” and together with the Exchanged Notes, the “Securities”). Interest on the Exchanged Notes
shall accrue at the interest rate described therein and shall commence accruing on the Original Issue Date of the Original Notes.

 

C.Any
provision of the Original Notes may be amended upon written consent of the Company and holders of a Majority in Interest of the
Original Notes. Therefore, each of the Original Notes shall be amended and exchanged for Exchanged Notes at the Closing (as defined
below).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows:

 

1.EXCHANGE.

 

1.1Exchange.
On the Closing Date (as defined below) each Investor shall, and the Company shall, exchange the Original Note held by such Investor
for an Exchanged Note. At the Closing (as defined below), the following transactions shall occur (such transactions in this Section
1, the “Exchange”):

 

(a)Delivery.
In exchange for an Investor’s Original Note, the Company shall deliver or cause to be delivered to the Investor an Exchanged
Note. Each Investor shall deliver or cause to be delivered to the Company (or its designee) the Original Note, as soon as commercially
practicable following the Closing. As of the Closing Date, all of the Investors’ rights under the Original Notes shall be
extinguished and the Original Note shall be cancelled. As of the Closing Date, the Exchanged Note shall be deemed issued by the
Company but will not be delivered to the Investor until the Company’s receipt of the Investor’s Original Note.

 

    	 

    	 

    

 

(b)Other
Documents. The Company and the Investor shall execute and/or deliver such other documents and agreements as are customary
and reasonably necessary to effectuate the Exchange, including an Amended and Restated Security Agreement (“New Security
Agreement”) that will replace the Original Security Agreement.

 

1.2Closing.
The closing of the Exchange (the “Closing”) shall occur on July 31, 2015 or such other date as is mutually
acceptable to the holders of a Majority in Interest of the Original Notes and the Company (the “Closing Date”).

 

2.REPRESENTATIONS
AND WARRANTIES.

 

2.1Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investors as follows:

 

(a)Organization
and Qualification. The Company is
duly formed and validly existing under the laws of Nevada, with full power and authority to conduct its business as it is currently
being conducted and to own its assets. The Company is not in violation of any of the provisions of its certificate or articles
of incorporation or bylaws. The Company is duly qualified to do business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, would not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect. 

 

(b)Authorization;
Enforcement. The Company has the requisite corporate authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement
by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action on the part of the Company and no further consent or action is required to be obtained or taken, as
the case may be, by the Company, its Board of Directors or its stockholders. This Agreement has been (or upon delivery will be)
duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except (i)
as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

(c)No
Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby and thereby do not, and will not, (i) conflict with or violate any provision of the Company’s
certificate of incorporation or bylaws, (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 a Company
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, except to the extent that such conflict, default, termination, amendment, acceleration or cancellation right
would not reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject
(including, assuming the accuracy of the representations and warranties of the Investors set forth in Section 3.2 hereof,
federal and state securities laws and regulations and the rules and regulations of any self-regulatory organization to which the
Company or its securities are subject), or by which any property or asset of the Company are bound or affected, except to the
extent that such violation would not reasonably be expected to have a Material Adverse Effect.

 

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(d)Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution, delivery and performance by the Company of this Agreement,
other than: (i) the filing of a financing statement in accordance with the Uniform Commercial Code with the Secretary of State
of Nevada, and (ii) the filing of a Form D with the SEC and such filings as are required to be made under applicable state securities
laws.

 

(e)The
Securities.The Securities are duly authorized and, when issued in accordance with the terms of this Agreement or the Exchanged
Note, will be duly and validly issued, fully paid and non-assessable, free and clear of all liens and will not be subject to preemptive
or similar rights of stockholders (other than those imposed by the Investors). The Securities, when duly executed and delivered
by the Company, will constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with their terms.

 

(f)No
General Solicitation. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or
sale of the Securities.

 

(g)
Private Placement; Investment Company; U.S. Real Property Holding Corporation. Neither the Company nor any of its Affiliates
nor, to the Company’s knowledge, any Person acting on the Company’s behalf has, directly or indirectly, at any time
within the past six months, made any offer or sale of any security or solicitation of any offer to buy any security under circumstances
that would (i) eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection
with the offer and sale by the Company of the Securities as contemplated hereby or (ii) cause the offering of the Securities pursuant
to this Agreement to be integrated with prior offerings by the Company for purposes of any applicable law. Assuming
the accuracy of the representations and warranties of the Investors set forth in Section 2.2, no registration under the
Securities Act is required for the offer and sale of the Securities by the Company to the Investors as contemplated hereby. The
Company is not required to be registered as, and is not an Affiliate of, an “investment company” within the meaning
of the Investment Company Act of 1940, as amended. The Company is not required to be registered as a United States real property
holding corporation within the meaning of the Foreign Investment in Real Property Tax Act of 1980.

 

(h)Acknowledgment
Regarding Investors’ Purchase of Securities. The Company acknowledges and agrees that each of the Investors, in their
capacity as such, is acting solely in the capacity of an arm’s length investor with respect to this Agreement and the transactions
contemplated hereby and thereby. The Company further acknowledges that no Investor, in its capacity as such, is acting as a financial
advisor or fiduciary of the Company with respect to this Agreement and the transactions contemplated hereby and any advice given
by any Investor or any of their respective representatives or agents in connection with this Agreement and the transactions contemplated
hereby and thereby is merely incidental to the Investors’ purchase of the Securities. The Company further represents to
each Investor that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
of the transactions contemplated hereby by the Company and its advisors and representatives.

 

    	-3-

    	 

    

 

(i)Seniority.
As of the Closing, no indebtedness or other claim against the Company is senior to the Exchanged Notes in right of payment, whether
with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security
interests (which is senior only as to underlying assets covered thereby) and capital lease obligations (which is senior only as
to the property covered thereby).

 

2.2Representations
and Warranties of the Investors. Each Investor hereby, as to itself only and for no other Investor, represents and warrants
to the Company as follows:

 

(a)Organization;
Authority. Such Investor that is an entity is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization with the requisite corporate, partnership or other power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The purchase
of the Securities hereunder by such Investor that is an entity has been duly authorized by all necessary corporate, partnership
or other action on the part of such Investor. Such Investor that
is an individual has the capacity to enter into this Agreement and to consummate the transactions contemplated hereby. This
Agreement has been duly executed and delivered by such Investor and constitutes the valid and binding obligation of such Investor,
enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. 

 

(b)Own
Account. Such Investor is acquiring
the Securities in the ordinary course of business for its own account and not with a view towards, or for resale in connection
with, the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption
from such registration and in compliance with applicable federal and state securities laws, and such Investor does not have a
present intent to effect any distribution of the Securities to or through any person or entity; provided, however,
that by making the representations herein, such Investor does not agree to hold the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption under the Securities Act.

 

(c)Investor
Status. At the time such Investor was offered the Securities, it was, and at the date hereof it is an “accredited investor”
as defined in Rule 501(a) under the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a)
under the Securities Act. Such Investor is not a registered broker dealer registered under Section 15(a) of the Exchange Act,
or a member of the Financial Industry Regulatory Authority, Inc. or an entity engaged in the business of being a broker dealer.
Except as otherwise disclosed in writing to the Company prior to the date of this Agreement, such Investor is not affiliated with
any broker dealer registered under Section 15(a) of the Exchange Act, or a member of the Financial Industry Regulatory Authority,
Inc. or an entity engaged in the business of being a broker dealer.

 

    	-4-

    	 

    

 

(d)General
Solicitation. Such Investor is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media, broadcast over television or radio, disseminated
over the Internet or presented at any seminar or any other general solicitation or general advertisement.

 

(e)Experience
of Such Investor. Such Investor, either alone or together with its representatives has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Investor understands that it must bear the
economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete
loss of such investment.

 

(f)Access
to Information. Such Investor acknowledges that it has been afforded: (i) the opportunity to ask such questions as it has
deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering
of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and its
financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(g)No
Governmental Review. Such Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(h)No
Conflicts. The execution, delivery and performance by such Investor of this Agreement and the consummation by such Investor
of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Investor that
is an entity or (ii) conflict with, or constitute a default (or an event which 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 of, any agreement, indenture
or instrument to which such Investor is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii)
above, for such that are not material and do not otherwise affect the ability of such Investor to consummate the transactions
contemplated hereby.

 

(i)Restricted
Securities.The Investors understand that the Securities are characterized as “restricted securities” inasmuch
as they are being acquired from the Company in a transaction not involving a public offering. The Investors understand that the
Securities have not been registered under the Securities Act or
any applicable state securities law and that under such laws and applicable regulations such Securities
may be resold without registration under the Securities Act only in certain limited circumstances.

 

(j)Legends.It
is understood that, except as provided in Section 4.1(b) of the Purchase Agreement, certificates evidencing the Securities
will bear the legend set forth in Section 4.1(b) of the Purchase Agreement.

 

(k)No
Legal, Tax or Investment Advice. Such Investor understands that nothing in this Agreement or any other materials presented
by or on behalf of the Company to the Investor in connection with the purchase of the Securities constitutes legal, tax or investment
advice. Such Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary
or appropriate in connection with its purchase of the Securities.

 

3.MISCELLANEOUS.

 

Sections
4 and 5 of the Purchase Agreement are hereby incorporated by reference herein, mutatis mutandis.

 

[SIGNATURE
PAGES TO FOLLOW]

 

    	-5-

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment and Exchange Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

 

	 	ALLDIGITAL HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	Name:
    	Michael
    F. Linos
	 	Title:
    	CEO
    and President

 

COMPANY
SIGNATURE PAGE

 

    	 

    	 

    

 

Investor
Signature Page

 

By
its execution and delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms
and conditions of the Amendment and Exchange Agreement dated as of July 31, 2015 (the “Agreement”) by and among
AllDigital Holdings, Inc. and the Investors (as defined therein), as to the principal amount of the Notes set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:
    	 
	 	 	 
	 	 	 
	 	 	 
	 	Telephone
    No.: 	 
	 	 	 
	 	Facsimile
    No.: 	 
	 	 	 
	 	Email
    Address: 	 
	 	 	 
	 	Principal Amount of Original Notes Exchanged: $________

 

Delivery
Instructions (if different than above):

 

	c/o:
_______________________________________________________________    	 
	 	 
	Address:
    ___________________________________________________________	 
	 	 
	___________________________________________________________	 
	 	 
	Telephone
    No.: ______________________________________________________	 
	 	 
	Facsimile
    No. : _______________________________________________________	 
	 	 
	Other
    Special Instructions: ______________________________________________NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OR CONVERSION OF THESE SECURITIES HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE SECURITIES REPRESENTED
HEREBY MAY NOT BE EXERCISED, CONVERTED, OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED (EACH A “TRANSFER”)
EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSFER NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (B) TO THE EXTENT THE TRANSFER DOES NOT
CONSTITUTE AND WILL NOT RESULT IN A VIOLATION OF APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT (TO THE EXTENT REQUESTED BY COUNSEL OF THE COMPANY), THE SUBSTANCE OF WHICH SHALL
BE REASONABLY ACCEPTABLE TO THE COMPANY. THE HOLDER HEREOF AGREES THAT IT WILL DELIVER, OR CAUSE TO BE DELIVERED, TO EACH PERSON
TO WHOM THE SECURITIES HEREBY REPRESENTED ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THESE SECURITIES
AND THE SECURITIES ISSUABLE UPON EXERCISE OR CONVERSION OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT SECURED BY SUCH SECURITIES.

 

5%
SENIOR SECURED CONVERTIBLE NOTE

 

	Note
No.: N-[__]	Original Issue Date: [________], 2014
	$[___],000	Irvine,
California

 

FOR
VALUE RECEIVED, ALLDIGITAL HOLDINGS, INC., a Nevada corporation (“Company”), promises to pay to [_______________]
(“Holder”), or its registered assigns, the principal sum of [__________________] THOUSAND DOLLARS ($[___],000),
or such lesser amount as shall equal the outstanding principal amount hereof, together with interest from the date of this 5%
Senior Secured Convertible Note (this “Note”) on the unpaid principal balance at a rate equal to 5% per annum,
computed on the basis of the actual number of days elapsed and a year of three hundred sixty-five (365) days. Interest on the
outstanding principal balance of this Note shall be payable on the Note Maturity Date (as defined below) as described in Section
2. Subject to Section 4, all unpaid principal, together with any then unpaid and accrued interest and other amounts
payable hereunder, shall be due and payable on the Note Maturity Date. Subject to Section 6, any unpaid principal and accrued
and unpaid interest on the Note Maturity Date shall be payable in cash. Upon payment in full of all principal and interest payable
hereunder, this Note shall be surrendered to the Company for cancellation. Upon conversion of this Note in full or the payment
of outstanding amounts specified in this Note, the Company shall be released from all its obligations and liabilities under this
Note.

 

    	 

    	 

    

 

This
Note is one of an issue of 5% Senior Secured Convertible Notes issued pursuant to (i) the terms and conditions contained in that
certain Securities Purchase Agreement between the original Holder and the Company (“First Securities Purchase Agreement”)
entered into pursuant to the terms and conditions contained in the Company’s Confidential Private Placement Memorandum dated
September 25, 2014, as amended (the “Memorandum”), and exchanged pursuant to the terms of an Amendment and
Exchange Agreement (defined below) on the Exchange Date (defined below) and (ii) the terms and conditions contained in the Second
Securities Purchase Agreement (as defined below) pursuant to the Company’s Amended and Restated Confidential Private Placement
Memorandum dated July 31, 2015 (“Amended Memorandum”). The 5% Senior Secured Convertible Notes issued pursuant
to the Memorandum, are collectively referred to herein as the “Original Notes.” The 5% Senior Secured Convertible
Notes issued pursuant to the Amended Memorandum are collectively referred to herein as the “New Notes,” and
together with the Original Notes, the “Notes”.

 

This
Note is secured by a security interest in all of the assets of the Company, pursuant to the terms of an Amended and Restated Security
Agreement by and among the Company, the Holder and the Agent (as defined therein).

 

The
following is a statement of the rights of the Holder and the conditions to which this Note is subject, and to which the Holder,
by the acceptance of this Note, agrees:

 

1.Certain
Definitions. For purposes of this Note, the following terms shall have the following respective meanings:

 

“Amended
Memorandum” shall mean the Company’s Amended and Restated Confidential Private Placement Memorandum dated July
31, 2015, as amended.

 

“Amendment
and Exchange Agreement” shall mean that certain Amendment and Exchange Agreement, dated July 31, 2015, by and among
the Company and the investors party thereto.

 

“Common
Stock” shall mean the shares of the common stock, $0.001 par value per share, of the Company.

 

“Common
Stock Equivalents” shall mean Options and Convertible Securities.

 

“Conversion
Shares” shall mean the shares of Common Stock issuable upon conversion of this Note.

 

“Convertible
Securities” shall mean any stock or securities (other than Options) convertible into or exchangeable for Common Stock.

 

“Event
of Default” shall mean any of the events specified as such in Section 4.1.

 

“Exchange
Date” shall mean July 31, 2015.

 

“Holder”
means the person or entity specified in the introductory paragraph of this Note or any transferee that is at the time the registered
holder of this Note. The Holder or any transferee is an “accredited investor” as defined under U.S. federal securities
laws or otherwise will qualify to allow this offering to take place as a private placement under applicable securities laws.

 

    	-2-

    	 

    

 

“Note
Maturity Date” shall mean the earlier of (i) December 31, 2017, and (ii) the date as of which the outstanding principal
and accrued interest on this Note and all other payments payable hereunder are due and payable to the Holder pursuant to Section
4.2.

 

“Options”
shall mean any outstanding rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

“Second
Securities Purchase Agreement” shall mean that certain Amended and Restated Securities Purchase Agreement, by among
the Company and certain investors pursuant to which the Company issues the New Notes to certain investors, as may be amended,
modified or supplemented form time to time.

 

“Securities
Purchase Agreements” shall mean, collectively, the First Securities Purchase Agreement and the Second Securities Purchase
Agreement.

 

Other
capitalized terms not defined in this Note have the same meaning as in the Securities Purchase Agreements.

 

2.Interest.
Until the Note Maturity Date, this Note will bear interest at a rate of 5% per annum, computed on the basis of the actual number
of days elapsed and a year of three hundred sixty-five (365) days. After the Note Maturity Date and until the outstanding principal
and accrued interest on this Note has been paid, this Note will bear interest at a rate of 1% per month, computed on the basis
of the actual number of days elapsed and a year month of thirty (30) days. All accrued interest on this Note shall be due and
payable on the Note Maturity Date. Subject to Section 5, any accrued interest on this Note shall be payable in cash.

 

3.Prepayment.
At any time after the Exchange Date, upon fifteen (15) days prior written notice to the Holder, the Company may prepay this Note
in whole or in part; provided, however, that: (i) any prepayment of this Note may only be made in connection with
the prepayment of all Notes on a pro rata basis, based on the respective aggregate outstanding principal amounts of each such
Note, (ii) the Company pays all accrued and unpaid interest on the date of such prepayment, and (iii) any such prepayment will
be applied first to the payment of expenses due under this Note, and second, if the amount of prepayment exceeds the amount of
all such expenses and accrued interest, to the payment of principal of this Note.

 

4.Default.

 

4.1Events
of Default. If any of the following events (each, an “Event of Default” and collectively, “Events
of Default”) shall occur:

 

(a)the
Company shall default in the payment of any part of the principal of this Note;

 

(b)the
Company shall default in the payment of any installment of interest on this Note for more than thirty (30) days after the same
shall become due and payable;

 

    	-3-

    	 

    

 

(c)the
Company shall breach or default in the performance of any covenant or warranty of the Company in this Note, and continuance of
such breach for a period of thirty (30) days after there has been given, by registered or certified mail, to the Company by the
holder of this Note or the Agent, a written notice specifying such breach or default and requiring it to be remedied;

 

(d)a
court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Company in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the Company or for any substantial part of its property, or
ordering the winding-up or liquidation of its affairs, and such decree or order shall remain unstayed and in effect for a period
of sixty (60) consecutive days; or

 

(e)the
Company shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect,
shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the
Company or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall
take any corporate action in furtherance of any of the foregoing;

 

then
and in any such event the Holder of this Note may at any time (unless all defaults theretofore or thereupon shall have been remedied)
at its option, by written notice to the Company, declare this Note to be due and payable, whereupon the same shall forthwith mature
and become due and payable without presentment, demand, protest or other notice, all of which are hereby waived.

 

4.2Remedies
on and Notices of Default. In case any one or more Events of Default shall occur, the Holder may proceed to protect and
enforce the rights of such holder by a suit in equity, action at law or other appropriate proceeding, whether for the specific
performance of any agreement contained in this Note, or for an injunction against a violation of any of the terms or provisions
hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law. In case of default under this Note,
the Company will pay to the Holder such further amount as shall be sufficient to cover the reasonable cost and expense of enforcement,
including, without limitation, reasonable attorneys’ fees. If the Holder shall give any notice or take any other action
in respect of a claimed default, the Company shall forthwith give written notice thereof to all other holders of Notes at the
time outstanding, describing the notice or action and the nature of the claimed default. No course of dealing and no delay on
the part of any Holder of this Note in exercising any right shall operate as a waiver thereof or otherwise prejudice such Holder’s
rights or the rights of any other holder of the Notes. No remedy conferred by this Note upon the Holder shall be exclusive of
any other remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

    	-4-

    	 

    

 

5.Conversion.

 

5.1Voluntary
Conversion. The Holder may, at any time before this Note has been repaid in full, elect to convert all or any portion
of the outstanding principal into shares of Common Stock at the Conversion Price (as defined below).

 

5.2Conversion
Procedure.

 

(a)Each
voluntary conversion of this Note shall be effected by the surrender of this Note at the principal office of the Company at any
time during normal business hours, together with a written notice by the Holder stating that the Holder desires to convert the
entire, or a specified increment of, principal of this Note into Common Stock. Each conversion of a Note will be deemed to have
been effected as of the close of business on the date on which this Note has been surrendered and the notice has been received,
and at that time, the rights of the Holder of this Note will cease and the person or persons in whose name or names any certificate
or certificates for Common Stock are to be issued upon conversion will be deemed to have become the Holder or Holders of record
of the shares of Common Stock represented thereby.

 

(b)Within
five (5) trading days after a conversion has been effected, the Company will deliver to the converting Holder:

 

(i)a
certificate or certificates representing the number of shares of Common Stock issuable by reason of conversion (i.e., the principal
amount of the Note being converted divided by the Conversion Price) in such name or names and such denomination or denominations
as the converting Holder has specified (bearing such legends as are required by applicable state and federal securities laws in
the opinion of counsel to the Company); and

 

(ii)a
replacement Note representing the principal amount of this Note delivered to the Company in connection with the conversion but
which was not converted.

 

5.3Fractional
Shares. No fractional shares shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional
shares to Holder upon the conversion of this Note, the Company shall pay to Holder an amount in cash equal to the product obtained
by multiplying the Conversion Price (as defined below) applied to effect such conversion by the fraction of a share not issued
pursuant to the previous sentence.

 

5.4Conversion
without Charge to Holder. The issuance of certificates for Common Stock upon conversion of this Note will be made without
charge to the Holder for any tax in respect thereof or other cost incurred by the Company in connection with conversion and the
related issuance of Common Stock. Upon conversion of any portion of this Note, the Company will take all actions as are necessary
in order to ensure that the Common Stock issuable with respect to conversion will be validly issued, fully paid and non-assessable.

 

    	-5-

    	 

    

 

5.5Transfer
Books. The Company will not close its books against the transfer of this Note or of the shares of Common Stock issued
or issuable upon conversion of this Note in any manner which interferes with the timely conversion of this Note.

 

5.6Conversion
Price. The “Conversion Price” shall initially be $0.15 per share of Common Stock and shall be subject
to adjustment as described in Section 6.

 

6.Certain
Adjustments. The Conversion Price is subject to adjustment from time to time as set forth in this Section 6.

 

6.1Stock
Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (A) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents
(which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment
of interest on, the Notes); (B) subdivides outstanding shares of Common Stock into a larger number of shares; (C) combines (including
by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or (D) issues, in the event
of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall
be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares
of the Company) outstanding immediately before such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

6.2Fundamental
Transaction. If, at any time while this Note is outstanding, (A) the Company effects any merger or consolidation of the
Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one transaction
or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property,
or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental
Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each
Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction,
the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such
Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one (1) share of Common
Stock (the “Alternate Consideration”). For purposes of any such conversion, the determination of the Conversion
Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions,
any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new note consistent
with the foregoing provisions and evidencing the Holder’s right to convert such note into Alternate Consideration. The terms
of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving
entity to comply with the provisions of this Section 6.2 and insuring that this Note (or any such replacement security)
will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

    	-6-

    	 

    

 

6.3Cash
Distributions. No adjustment on account of cash dividends or interest on the Company’s Common Stock or other securities
purchasable hereunder will be made to the Conversion Price.

 

6.4Calculations.
All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a share, as the case
may be. For purposes of this Section 6, the number of shares of Common Stock deemed to be issued and outstanding as of
a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and
outstanding.

 

6.5Notice
to the Holder.

 

(a)Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 6, the Company
shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

 

(b)Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any
sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address
as it shall appear upon the Note Register, at least ten (10) calendar days prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it
is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided
that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the
corporate action required to be specified in such notice. The Holder is entitled to convert this Note during the 10-day period
commencing on the date of such notice through the effective date of the event triggering such notice.

 

    	-7-

    	 

    

 

7.Reservation
of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but
unissued shares of Common Stock for the purpose of effecting the conversion of this Note such number of its shares of Common Stock
as shall from time to time be sufficient to effect the conversion of this Note; and if at any time the number of authorized but
unissued shares of Common Stock shall not be sufficient to effect the conversion of the entire outstanding principal amount of
this Note, without limitation of such other remedies as shall be available to the Holder of this Note, the Company will use its
best efforts to take such corporate action as may, in the opinion of counsel, be necessary to increase its authorized but unissued
shares of Common Stock to such number of shares as shall be sufficient for such purposes.

 

8.Successors
and Assigns. Subject to the restrictions on transfer described in Sections 10 and 11, the rights and obligations
of Company and the Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of
the parties.

 

9.Waiver
and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of Company and the
holders of a majority in principal amount of the Notes.

 

10.Transfer
of this Note or Securities Issuable on Conversion Hereof. With respect to any offer, sale or other disposition of this
Note or securities into which such Note may be converted, the Holder will give written notice to the Company prior thereto, describing
briefly the manner thereof, together with a written opinion of the Holder’s counsel, or other evidence if reasonably satisfactory
to the Company, to the effect that such offer, sale or other distribution may be effected without registration or qualification
(under any federal or state law then in effect). Upon receiving such written notice and reasonably satisfactory opinion, if so
requested, or other evidence, the Company, as promptly as practicable, shall notify the Holder that the Holder may sell or otherwise
dispose of this Note or such securities, all in accordance with the terms of the notice delivered to Company. If a determination
has been made pursuant to this Section 11 that the opinion of counsel for the Holder, or other evidence, is not reasonably
satisfactory to the Company, the Company shall so notify the Holder promptly after such determination has been made. Each Note
thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions
on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such
legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer instructions
to its transfer agent in connection with such restrictions. Subject to the foregoing, transfers of this Note shall be registered
upon registration books maintained for such purpose by or on behalf of the Company as provided in the Securities Purchase Agreement.
Prior to presentation of this Note for registration of transfer, the Company shall treat the registered Holder hereof as the owner
and the Holder of this Note for the purpose of receiving all payments of principal and interest hereon and for all other purposes
whatsoever, whether or not this Note shall be overdue and the Company shall not be affected by notice to the contrary.

 

    	-8-

    	 

    

 

11.Assignment
by the Company. Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation
of law or otherwise, in whole or in part, by Company without the prior written consent of the Holder.

 

12.Notices.
All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing
and shall be given in accordance with Section 5.4 of the Securities Purchase Agreement and shall be deemed effectively given as
described in Section 5.4 of the Securities Purchase Agreement.

 

13.Pari
Passu Notes. The Holder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount
of this Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Notes issued
pursuant to the Securities Purchase Agreements or pursuant to the terms of such Notes. In the event the Holder receives payments
in excess of its pro rata share of the Company’s payments to the holders of all of the Notes, then the Holder shall hold
in trust all such excess payments for the benefit of the holders of the other Notes and shall pay such amounts held in trust to
such other holders upon demand by such holders.

 

14.Payment.
Payment shall be made in lawful tender of the United States.

 

15.Usury.
In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion
of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal
and applied against the principal of this Note.

 

16.Waivers.
The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and
all other notices or demands relative to this instrument.

 

17.Governing
Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance
with the laws of the State of California, without regard to the conflicts of law provisions of the State of California, or of
any other state.

 

[signature
page follows]

 

    	-9-

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be issued as of the date first written above.

 

	 	ALLDIGITAL
    HOLDINGS, INC.,
	 	 	a
    Nevada corporation
	 	 	 
	 	By:	
	 	 	Michael
    F. Linos, CEO and President

 

    	-10-

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