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

	
Principal Amount: $154,000.00

	
 

	
Issue Date: October 20, 2014

	
Purchase Price: $154,000.00

	
 

	
 

CONVERTIBLE PROMISSORY NOTE

FOR VALUE RECEIVED, CROWDGATHER, INC., a Nevada corporation (hereinafter called the "Borrower"), hereby promises to pay to the order of KBM WORLDWIDE, INC., a New York corporation, or registered assigns (the "Holder") the sum of $154,000.00 together with any interest as set forth herein, on July 21, 2015 (the "Maturity Date"), and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the "Interest Rate") per annum from the date hereof (the "Issue Date") until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise.  This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid ("Default Interest").  Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed.  All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the "Common Stock") in accordance with the terms hereof) shall be made in lawful money of the United States of America.  All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note.  Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date.  As used in this Note, the term "business day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed.  Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the "Purchase Agreement").

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

The following terms shall apply to this Note:

ARTICLE I. CONVERSION RIGHTS

1.1     Conversion Right.  The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price  (the "Conversion Price") determined as provided herein (a "Conversion"); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock.  For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days' prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver).  The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the "Notice of Conversion"), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the "Conversion Date").  The term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Holder's option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder's option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

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1.2    Conversion Price.

(a)    Calculation of Conversion Price.  The conversion price (the "Conversion Price") shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower's securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events).  The "Variable Conversion Price" shall mean 61% multiplied by the Market Price (as defined herein) (representing a discount rate of 39%). "Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the ten (10) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date.  "Trading Price" means, for any security as of any date, the closing bid price on the Over-the-Counter Bulletin Board, OTCQB Pink Sheets electronic quotation system or applicable trading market (the "OTC") as reported by a reliable reporting service ("Reporting Service") designated by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the "pink sheets".  If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes.  "Trading Day" shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.

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(b)    Conversion Price During Major Announcements.  Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower) publicly announces a tender offer to purchase 50% or more of the Borrower's Common Stock (or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the  "Announcement Date"), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section 1.2(a).  For purposes hereof,  "Adjusted Conversion Price Termination Date" shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.

1.3     Authorized Shares.  The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement.  The Borrower is required at all times to have authorized and reserved five times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time)(the "Reserved Amount").  The Reserved Amount shall be increased from time to time in accordance with the Borrower's obligations hereunder.  The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.  In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes.  The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

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If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

1.4    Method of Conversion.

(a)    Mechanics of Conversion.  Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower.

(b)    Surrender of Note Upon Conversion.  Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted.  The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  In the event of any dispute or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error.  Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note.  The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

(c)    Payment of Taxes.  The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder's account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

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(d)    Delivery of Common Stock Upon Conversion.  Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the "Deadline") (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.

(e)    Obligation of Borrower to Deliver Common Stock.  Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion.  If the Holder shall have given a Notice of Conversion as provided herein, the Borrower's obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time, on such date.

(f)    Delivery of Common Stock by Electronic Transfer.  In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company ("DTC") Fast Automated Securities Transfer ("FAST") program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder's Prime Broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system.

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(g)    Failure to Deliver Common Stock Prior to Deadline.  Without in any way limiting the Holder's right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock.  Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note.  The Borrower agrees that the right to convert is a valuable right to the Holder.  The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify.  Accordingly the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified.

1.5     Concerning the Shares.  The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless  (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of  counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) ("Rule 144") or (iv) such shares are transferred to an "affiliate" (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).  Except as otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

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

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The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold.  In the event that the Company does not accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

1.6    Effect of Certain Events.

(a)    Effect of Merger, Consolidation, Etc.  At the option of the Holder, the sale, conveyance or disposition of all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either:  (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof.  "Person" shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

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(b)    Adjustment Due to Merger, Consolidation, Etc.  Except in connection with a restructuring or repurchasing of the outstanding  the Series B Preferred Stock, if, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof.  The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, fifteen (15) days prior written notice (but in any event at least seven (7) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b).  The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

(c)    Adjustment Due to Distribution.  If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower's shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a "Distribution"), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

(d)    Adjustment Due to Dilutive Issuance.  If, at any time when any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.

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The Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock ("Convertible Securities") (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as "Options") and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share.  For purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon the exercise of such Options" is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or granting of all such Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of Convertible Securities, if applicable).  No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options.

Additionally, the Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share.  For the purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon such conversion or exchange" is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities.  No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities.

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(e)    Purchase Rights.  If, at any time when any Notes are issued and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property (the "Purchase Rights") pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

(f)    Notice of Adjustments.  Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based.  The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note.

1.7    Trading Market Limitations.  Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the "Maximum Share Amount"), which shall be 4.99% of the total shares outstanding on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date hereof.  .

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1.8    Status as Shareholder.  Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder's allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder's rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms  of this Note.  Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted.  In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower's failure to convert this Note.

1.9    Prepayment.  Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth on the table immediately following this paragraph (the "Prepayment Periods"), the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9.  Any notice of prepayment hereunder (an "Optional Prepayment Notice") shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice.  On the date fixed for prepayment (the "Optional Prepayment Date"), the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to Holder, or upon the order of the Holder as specified by the Holder in writing to the Borrower, at least one (1) business day prior to the Optional Prepayment Date.  If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Optional Prepayment Amount") equal to the percentage ("Prepayment Percentage") as set forth in the table immediately following this paragraph opposite the applicable Prepayment Period, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

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Prepayment Period

	
Prepayment Percentage

	
1.             The period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date.

	
110%

	
2.          The period beginning  on the date which is thirty-one (31) days following the Issue Date and ending on the date which is sixty (60) days following the Issue Date

	
115%

	
3.          The period beginning  on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date

	
120%

	
4.          The period beginning on the date that is ninety-one (91) day from the Issue Date and ending one hundred twenty (120) days following the Issue Date

	
125%

	
5.          The period beginning on the date that is one hundred twenty-one (121) day from the Issue Date and ending one hundred fifty (150) days following the Issue Date

	
130%

	
6.          The period beginning on the date that is one hundred fifty-one (151) day from the Issue Date and ending one hundred eighty (180) days following the Issue Date

	
135%

After the expiration of one hundred eighty (180) days following the Issue Date, the Borrower shall have no right of prepayment.

ARTICLE II. CERTAIN COVENANTS

2.1    Distributions on Capital Stock.  Except for dividends or distributions payable to the holders of Series B Preferred Stock, so long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder's written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders' rights plan which is approved by a majority of the Borrower's disinterested directors.

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2.2    Restriction on Stock Repurchases.  Except for redeeming or repurchasing shares of Series B Preferred Stock,  and any warrants issued in connection with the Series B Preferred Stock, so long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder's written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.

2.3    Borrowings.  So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, (a) create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any other person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection, or (b) suffer to exist any liability for borrowed money, except any borrowings that does not render the Borrower a "Shell" company as defined in Rule 12b-2 under the Securities Exchange Act of 1934.

2.4    Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business except when any sale, lease or disposition and does not render the Borrower a "Shell" company as defined in Rule 12b-2 under the Securities Exchange Act of 1934.  Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

2.5    Advances and Loans.  So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

ARTICLE III. EVENTS OF DEFAULT

If any of the following events of default (each, an "Event of Default") shall occur:

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3.1    Failure to Pay Principal or Interest.  The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

3.2    Conversion and the Shares.  The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion.  It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower's transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder.

3.3    Breach of Covenants.  The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.

3.4    Breach of Representations and Warranties.  Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

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3.5    Receiver or Trustee.  The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.

3.6    Judgments.  Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

3.7    Bankruptcy.  Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.

3.8    Delisting of Common Stock.  The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the Pink Sheets electronic quotation system) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

3.9    Failure to Comply with the Exchange Act.  The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

3.10            Liquidation.         Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

3.11            Cessation of Operations.     Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower's ability to continue as a "going concern" shall not be an admission that the Borrower cannot pay its debts as they become due.

3.12            Maintenance of Assets.       The failure by Borrower to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

3.13            Financial Statement Restatement.       The restatement of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

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3.14            Reverse Splits.                                                      The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder.

3.15            Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

3.16            Cross-Default.  Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. "Other Agreements" means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term "Other Agreements" shall not include the related or companion documents to this Note.  Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.

Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein).  UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Borrower by such Holders (the "Default Notice"), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the "Mandatory Prepayment Date") plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the "Default Sum") or (ii) the "parity value" of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the "Conversion Date" for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the "Default Amount") and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. 

17

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.

ARTICLE IV. MISCELLANEOUS

4.1    Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

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

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If to the Borrower, to:

CROWDGATHER, INC.

20300 Ventura Boulevard - Suite 330

Woodland Hills, CA 91364

Attn: SANJAY SABNANI, Chief Executive Officer

facsimile:

              With a copy by fax only to (which copy shall not constitute notice):

                          [enter name of law firm]

Attn: [attorney name]

[enter address line 1]

[enter city, state, zip]

facsimile: [enter fax number]

                 If to the Holder:

KBM WORLDWIDE, INC.

80 Cuttermill Road – Suite 410

Great Neck, NY  11021

Attn: Seth Kramer, President

e-mail: info@kbmworldwide.com

              With a copy by fax only to (which copy shall not constitute notice):

Naidich Wurman Birnbaum & Maday, LLP

Att: Judah A. Eisner, Esq.

Attn: Bernard S. Feldman, Esq.

facsimile: 516-466-3555

e-mail: dyork@nwbmlaw.com

4.3    Amendments.  This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder.  The term "Note" and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

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4.4    Assignability.  This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns.  Each transferee of this Note must be an "accredited investor" (as defined in Rule 501(a) of the 1933 Act).  Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

4.5    Cost of Collection.  If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys' fees.

4.6    Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of Nassau.  The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.  The Borrower and Holder waive trial by jury.  The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.  In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.   Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

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4.7    Certain Amounts.  Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note.  The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.

4.8    Purchase Agreement.  By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

4.9    Notice of Corporate Events.  Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower's shareholders (and copies of proxy materials and other information sent to shareholders).  Except for payment of dividends or distributions or events related to the Series B Preferred Stock, in the event of any taking by the Borrower of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least ten (10) days prior to the record date specified therein (or twenty (20) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such time.  .

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

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IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this October 20, 2014.

CROWDGATHER, INC.

By:  /s/ Sanjay Sabnani_____________________________

SANJAY SABNANI

                                         Chief Executive Officer

22

EXHIBIT A --  NOTICE OF CONVERSION

The undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note ("Common Stock") as set forth below, of CROWDGATHER, INC., a Nevada corporation (the "Borrower") according to the conditions of the convertible note of the Borrower dated as of October 20, 2014 (the "Note"), as of the date written below.  No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

Box Checked as to applicable instructions:

		[ ]	The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system ("DWAC Transfer").

Name of DTC Prime Broker:

Account Number:

		[  ]	The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder's calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

KBM WORLDWIDE, INC.

80 Cuttermill Road – Suite 410

Great Neck, NY 11021

Attention: Certificate Delivery

e-mail: info@kbmworldwide.com

Date of Conversion:                                                                                                               _____________

Applicable Conversion Price:                                                                 $____________

Number of Shares of Common Stock to be Issued

    Pursuant to Conversion of the Notes:                       ______________

Amount of Principal Balance Due remaining

    Under the Note after this conversion:                    ______________

KBM WORLDWIDE, INC.

By: ____________________________

Name:          Seth Kramer

Title:            President

Date: October 14, 2104

23Exhibit 10.1

 

EXECUTION VERSION

 

Additional Credit Extension Amendment

 

This Additional Credit Extension Amendment is dated as of October 23, 2014 (this “Amendment”) by and among Manufacturers and Traders Trust Co. (the “Additional Lender”), Select Medical Corporation, a Delaware corporation (the “Borrower”), Select Medical Holdings Corporation, a Delaware corporation (“Holdings’) and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, reference is hereby made to that certain Credit Agreement, dated as of June 1, 2011 and as amended by Amendment No. 1 dated as of August 8, 2012, the Additional Credit Extension Amendment dated as of August 13, 2012, Amendment No. 2 dated as of November 6, 2012, Amendment No. 3 dated as of February 15, 2013, the Additional Credit Extension Amendment dated as of February 20, 2013, Amendment No. 4 dated as of June 3, 2013, and Amendment No. 5, dated as of March 4, 2014, as amended, supplemented and in effect from time to time (the “Credit Agreement”; capitalized terms used herein and not defined shall have the meanings set forth in the Credit Agreement), among SELECT MEDICAL HOLDINGS CORPORATION (“Holdings”), SELECT MEDICAL CORPORATION (the “Borrower”), JPMORGAN CHASE BANK, N.A., as Administrative Agent and Collateral Agent (the “Administrative Agent” and the “Collateral Agent,” respectively), MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and GOLDMAN SACHS BANK USA, as Co-Syndication Agents, MORGAN STANLEY SENIOR FUNDING, INC. and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Co-Documentation Agents, and the several banks and other financial institutions from time to time party thereto as lenders (the “Lenders”).

 

WHEREAS, Section 2.21 of the Credit Agreement permits the Credit Agreement to be amended from time to time in order to provide for Extended Revolving Commitments;

 

WHEREAS, the Additional Lender has agreed, on the terms and conditions set forth herein, to provide $6,750,000 in aggregate principal amount of Extended Revolving Commitments in the form of 2018 Extended Revolving Commitments, as contemplated by Section 2.21 of the Credit Agreement ;

 

WHEREAS, in accordance with Section 2.21, the Additional Lender’s existing Revolving Commitments will be reduced in an amount that corresponds with the 2018 Extended Revolving Commitments being provided hereunder by the Additional Lender;

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION ONE. Amendments. The Credit Agreement is, effective as of the Amendment Effective Date (as defined below) hereby amended to reflect (x) that the Additional Lender is providing $6,750,000 in aggregate principal amount of 2018 Extended Revolving Commitments and (y) that the $6,750,000 in aggregate principal amount of the Additional Lender’s existing Revolving Commitments are hereby reduced to zero. In addition, after giving effect to this Amendment on the Amendment Effective Date, the aggregate amount of the Lenders’ 2018 Extended Revolving Commitments shall be as set forth on Schedule II to this Amendment.

 

 

SECTION TWO. Conditions to Effectiveness. This Amendment shall become effective on October 23, 2014 (the “Amendment Effective Date”) when, and only when, the following conditions have been satisfied:

 

(i)                                     this Amendment shall have been executed and delivered by the Borrower, Holdings, the other Loan Parties, the Additional Lender and the Administrative Agent;

 

(ii)                                  the Administrative Agent shall have received copies of the resolutions of the board of directors (or authorized committee thereof) of (x) Holdings, (y) the Borrower and (z) each Subsidiary Loan Party approving and authorizing the execution, delivery and performance of this Amendment, certified as of the Amendment Effective Date by the corporate secretary or an assistant secretary thereof as being in full force and effect without modification or amendment;

 

(iii)                               the Administrative Agent shall have received a legal opinion dated the Amendment Effective Date from Dechert LLP in form and substance reasonably satisfactory to the Arrangers and the Administrative Agent;

 

(iv)                              the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document shall be true and correct in all material respects (except to the extent any such representation or warranty is qualified by “materially,” “Material Adverse Effect” or a similar term, in which case such representation and warranty shall be true and correct in all respects) on and as of the date hereof (both before and after giving effect to the effectiveness of this Amendment) with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date (provided that the solvency representation will be deemed to have been made on the Amendment Effective Date after giving effect to the effectiveness of this Amendment);

 

(v)                                 to the extent not previously delivered, the Additional Lender and the Administrative Agent shall have received at least 3 business days prior to the date hereof all documentation and other information about the Borrower and the Subsidiary Loan Parties required under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act that has been requested in writing at least 5 business days prior to the date hereof;

 

(vii)                           immediately prior to and after giving effect to the effectiveness of this Amendment, no Default has occurred or is continuing or shall result from the effectiveness of this Amendment; and

 

(viii)                        to the extent not previously delivered, (i) the Administrative Agent shall have received a completed “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property (together with a notice about special flood hazard area status and flood disaster assistance, if applicable, duly executed by the Borrower and each Loan Party relating thereto) and (ii) the Administrative Agent shall have received a copy of, or a certificate as to coverage under, the insurance policies required by Section 5.07 of the Credit Agreement including, without limitation, flood insurance policies (to the extent required in order to comply with applicable law) and the applicable provisions of the Security Documents, each of which shall be endorsed or otherwise amended to include a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as applicable) and shall name the Collateral Agent, on behalf of the Secured Parties, as additional insured, in form and substance reasonably satisfactory to the Administrative Agent.

 

2

 

SECTION THREE. Post-Closing Covenant. Subject to the provisions of the Collateral and Guarantee Requirement and any applicable limitations in any Loan Document, Borrower hereby agrees with the Administrative Agent to deliver, on or before the date that is 60 days after the Amendment Effective Date (or such longer period of time as may be agreed by the Administrative Agent in its sole discretion), with respect to each Mortgaged Property:

 

(a)                                 an amendment to each existing Mortgage (each, a “Mortgage Amendment”) duly executed and acknowledged by the applicable Loan Party and in form for recording in the recording office where such Mortgage was recorded, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof under applicable law, in each case in form and substance reasonably satisfactory to the Administrative Agent and otherwise approved by the applicable local counsel for filing in the appropriate jurisdiction;

 

(b)                                 with respect to each Mortgage Amendment (other than those Mortgage Amendments relating to Mortgaged Property located in New Jersey and Ohio), a datedown endorsement to each existing mortgage title policy (if such endorsement is not available in the jurisdiction, a title search and modification endorsement in lieu thereof) (each, a “Datedown Endorsement,” collectively, the “Datedown Endorsements”) relating to the Mortgaged Property subject to such Mortgage insuring the Administrative Agent that such Mortgage, as amended by such Mortgage Amendment is a valid and enforceable first priority lien on such Mortgaged Property in favor of the Collateral Agent for the benefit of the Secured Parties and that there are no Liens of record in violation of the provisions of the Loan Documents, and such Datedown Endorsement shall otherwise be in form and substance reasonably satisfactory to the Administrative Agent; and

 

(c)                                  with respect to each Mortgage Amendment relating to Mortgaged Property located in New Jersey and Ohio, (i) title searches in form and substance reasonably acceptable to the Administrative Agent, conducted by a title insurance company reasonably acceptable to the Administrative Agent, which reflect that there are no Liens of record in violation of the provisions of the Loan Documents and (ii) opinions addressed to the Administrative Agent and the Collateral Agent for its benefit and for the benefit of the Secured Parties of (A) local counsel in each jurisdiction where the Mortgaged Property is located with respect to the enforceability and perfection of the Mortgages, as amended by such Mortgage Amendments, and other matters customarily included in such opinions and (ii) counsel for the Borrower regarding due authorization, execution and delivery of such Mortgage Amendments, in each case, in form and substance reasonably satisfactory to the Administrative Agent.

 

SECTION FOUR. Representations and Warranties. In order to induce the Additional Lender and the Administrative Agent to enter into this Amendment, the Borrower represents and warrants to each of the Additional Lender and the Administrative Agent that, after giving effect to this Amendment, and both before and after giving effect to the transactions contemplated by this Amendment:

 

(a)                                 no Default or Event of Default has occurred and is continuing;

 

(b)                                 the entry into this Amendment by (x) Holdings, (y) the Borrower and (z) each other Loan Party has been duly authorized by all necessary corporate or other action of each such entity; and

 

(c)                                  each of the representations and warranties made by each of the Loan Parties in or pursuant to the Loan Documents is true and correct in all material respects (except to the extent any such representation or warranty is qualified by “materially,” “Material Adverse Effect” or a

 

3

 

similar term, in which case such representation and warranty shall be true and correct in all respects) on and as of the date hereof as if made on the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, in all material respects as of such specific date).

 

SECTION FIVE. Reference to and Effect on the Loan Documents. On and after the Amendment Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring the Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment, and this Amendment shall constitute a “Loan Document” for all purposes under the Credit Agreement. The Credit Agreement, the Notes and each of the other Loan Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

 

SECTION SIX. Reaffirmation. Each Loan Party (x) hereby expressly acknowledges the terms of this Amendment and reaffirms, as of the date hereof, the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions contemplated hereby, (y) by its signature below, hereby affirms and confirms (a) its obligations under each of the Loan Documents to which it is a party, and (b) the pledge of and/or grant of a security interest in its assets which are Collateral to secure such Obligations, all as provided in the Security Documents as originally executed, and acknowledges and agrees that such guarantee, pledge and/or grant shall continue in full force and effect in respect of, and to secure, such Obligations under the Credit Agreement and the other Loan Documents and (z) acknowledges and agrees that each of the Loan Documents in existence as of the date hereof shall be henceforth read and construed in accordance with and so as to give full force and effect to the ratifications, confirmations, acknowledgements and agreements made herein.

 

SECTION SEVEN. Costs, Expenses and Taxes. The Borrower agrees to pay all reasonable out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, if any (including, without limitation, the reasonable fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel to the Administrative Agent) in accordance with the terms of Section 9.03 of the Credit Agreement.

 

SECTION EIGHT. Execution in Counterparts. This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Amendment by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION NINE. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

[Signature Pages Follow]

 

4

 

	
 
    	
SELECT MEDICAL CORPORATION,
    
	
 
    	
as the Borrower
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Joel T. Veit
    
	
 
    	
 
    	
Name: 
    	
Joel T. Veit
    
	
 
    	
 
    	
Title: 
    	
Sr. Vice President & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SELECT MEDICAL HOLDINGS CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Joel T. Veit
    
	
 
    	
 
    	
Name: 
    	
Joel T.Veit
    
	
 
    	
 
    	
Title: 
    	
Sr. Vice President & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EACH OF THE SUBSIDIARIES LISTED ON
    
	
 
    	
SCHEDULE I HERETO
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Joel T. Veit
    
	
 
    	
 
    	
Name: 
    	
Joel T. Veit
    
	
 
    	
 
    	
Title: 
    	
Vice President
    

 

[Select Medical — Revolver Extension Amendment (Extension)]

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A.,
    
	
 
    	
as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Dawn L. LeeLum
    
	
 
    	
Name: 
    	
Dawn L. LeeLum
    
	
 
    	
Title: 
    	
Executive Director
    

 

[Select Medical — Revolver Additional Credit Extension Amendment (Extension)]

 

 

	
 
    	
MANUFACTURERS & TRADERS TRUST CO.,
    
	
 
    	
as an Additional Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Raymond P. Cullen
    
	
 
    	
 
    	
Name: 
    	
Raymond P. Cullen
    
	
 
    	
 
    	
Title: 
    	
Vice-President
    

 

[Select Medical — Revolver Additional Credit Extension Amendment (Extension)]

 

 

SCHEDULE I

TO ADDITIONAL CREDIT EXTENSION AMENDMENT

 

SUBSIDIARY LOAN PARTIES

 

	
Group   1
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
1.
    	
Advantage   Rehabilitation Clinics, Inc.
    
	
 
    	
2.
    	
American   Transitional Hospitals, Inc.
    
	
 
    	
3.
    	
Baseline   Rehabilitation, Inc.
    
	
 
    	
4.
    	
C.E.R.   - West, Inc.
    
	
 
    	
5.
    	
Community   Rehab Centers of Massachusetts, Inc.
    
	
 
    	
6.
    	
Crowley   Physical Therapy Clinic, Inc.
    
	
 
    	
7.
    	
Dade   Prosthetics & Orthotics, Inc.
    
	
 
    	
8.
    	
Douglas   Avery & Associates, Ltd.
    
	
 
    	
9.
    	
Eagle   Rehab Corporation
    
	
 
    	
10.
    	
Fine,   Bryant & Wah, Inc.
    
	
 
    	
11.
    	
Georgia   Physical Therapy, Inc.
    
	
 
    	
12.
    	
Gulf   Breeze Physical Therapy, Inc.
    
	
 
    	
13.
    	
Hospital   Holdings Corporation
    
	
 
    	
14.
    	
Indianapolis   Physical Therapy and Sports Medicine, Inc.
    
	
 
    	
15.
    	
Intensiva   Healthcare Corporation
    
	
 
    	
16.
    	
Intensiva   Hospital of Greater St. Louis, Inc.
    
	
 
    	
17.
    	
Johnson   Physical Therapy, Inc.
    
	
 
    	
18.
    	
Joyner   Sportsmedicine Institute, Inc.
    
	
 
    	
19.
    	
Kentucky   Rehabilitation Services, Inc.
    
	
 
    	
20.
    	
Kessler   Institute for Rehabilitation, Inc.
    
	
 
    	
21.
    	
Kessler   Orthotic & Prosthetic Services, Inc.
    
	
 
    	
22.
    	
Kessler   Rehab Centers, Inc.
    
	
 
    	
23.
    	
Kessler   Rehabilitation Corporation
    
	
 
    	
24.
    	
Kessler   Rehabilitation Services, Inc.
    
	
 
    	
25.
    	
Madison   Rehabilitation Center, Inc.
    
	
 
    	
26.
    	
Metro   Rehabilitation Services, Inc.
    
	
 
    	
27.
    	
Metro   Therapy, Inc.
    
	
 
    	
28.
    	
New   England Rehabilitation Center of Southern New Hampshire, Inc.
    
	
 
    	
29.
    	
NovaCare   Occupational Health Services, Inc.
    

 

 

	
 
    	
30.
    	
NovaCare   Outpatient Rehabilitation East, Inc.
    
	
 
    	
31.
    	
NovaCare   Outpatient Rehabilitation, Inc.
    
	
 
    	
32.
    	
NovaCare   Rehabilitation of Ohio, Inc.
    
	
 
    	
33.
    	
NovaCare   Rehabilitation, Inc.
    
	
 
    	
34.
    	
Pacific   Rehabilitation & Sports Medicine, Inc.
    
	
 
    	
35.
    	
PR   Acquisition Corporation
    
	
 
    	
36.
    	
Pro   Active Therapy of North Carolina, Inc.
    
	
 
    	
37.
    	
Pro   Active Therapy of South Carolina, Inc.
    
	
 
    	
38.
    	
Pro   Active Therapy of Virginia, Inc.
    
	
 
    	
39.
    	
Pro   Active Therapy, Inc.
    
	
 
    	
40.
    	
Professional   Sports Care Management, Inc.
    
	
 
    	
41.
    	
Professional   Therapeutic Services, Inc.
    
	
 
    	
42.
    	
Professional   Therapy Systems, Inc.
    
	
 
    	
43.
    	
PTSMA, Inc.
    
	
 
    	
44.
    	
RCI   (Michigan), Inc.
    
	
 
    	
45.
    	
RCI   (WRS), Inc.
    
	
 
    	
46.
    	
Regency   Management Company, Inc.
    
	
 
    	
47.
    	
Rehab   Provider Network - East I, Inc.
    
	
 
    	
48.
    	
Rehab   Provider Network - East II, Inc.
    
	
 
    	
49.
    	
Rehab   Provider Network - Indiana, Inc.
    
	
 
    	
50.
    	
Rehab   Provider Network - New Jersey, Inc.
    
	
 
    	
51.
    	
Rehab   Provider Network - Pennsylvania, Inc.
    
	
 
    	
52.
    	
Rehab   Provider Network of Colorado, Inc.
    
	
 
    	
53.
    	
Rehab   Provider Network of Florida, Inc.
    
	
 
    	
54.
    	
Rehab   Provider Network of New Mexico, Inc.
    
	
 
    	
55.
    	
Rehab   Provider Network of North Carolina, Inc.
    
	
 
    	
56.
    	
Rehab   Provider Network of South Carolina, Inc.
    
	
 
    	
57.
    	
Rehab   Provider Network of Texas, Inc.
    
	
 
    	
58.
    	
Rehab   Provider Network of Virginia, Inc.
    
	
 
    	
59.
    	
Rehab   Provider Network-Michigan, Inc.
    
	
 
    	
60.
    	
Rehab   Provider Network-Ohio, Inc.
    
	
 
    	
61.
    	
RehabClinics   (GALAXY), Inc.
    
	
 
    	
62.
    	
RehabClinics   (PTA), Inc.
    
	
 
    	
63.
    	
RehabClinics   (SPT), Inc.
    
	
 
    	
64.
    	
RehabClinics, Inc.
    

 

 

	
 
    	
65.
    	
Rehabilitation   Center of Washington, D.C., Inc.
    
	
 
    	
66.
    	
RPN   of NC, Inc.
    
	
 
    	
67.
    	
S.T.A.R.T., Inc.
    
	
 
    	
68.
    	
Select   Employment Services, Inc.
    
	
 
    	
69.
    	
Select   Hospital Investors, Inc.
    
	
 
    	
70.
    	
Select   Medical of Kentucky, Inc.
    
	
 
    	
71.
    	
Select   Medical of Maryland, Inc.
    
	
 
    	
72.
    	
Select   Medical of New York, Inc.
    
	
 
    	
73.
    	
Select   Medical Rehabilitation Clinics, Inc.
    
	
 
    	
74.
    	
Select   Medical Rehabilitation Services, Inc.
    
	
 
    	
75.
    	
Select   NovaCare - KOP, Inc.
    
	
 
    	
76.
    	
Select   NovaCare - PBG, Inc.
    
	
 
    	
77.
    	
Select   NovaCare - PIT, Inc.
    
	
 
    	
78.
    	
Select   Physical Therapy Holdings, Inc.
    
	
 
    	
79.
    	
Select   Physical Therapy Network Services, Inc.
    
	
 
    	
80.
    	
Select   Physical Therapy of Chicago, Inc.
    
	
 
    	
81.
    	
Select   Physical Therapy Orthopedic Services, Inc.
    
	
 
    	
82.
    	
Select   Provider Networks, Inc.
    
	
 
    	
83.
    	
Select   Rehabilitation Hospital - Hershey, Inc.
    
	
 
    	
84.
    	
Select   Specialty Hospital - Ann Arbor, Inc.
    
	
 
    	
85.
    	
Select   Specialty Hospital - Arizona, Inc.
    
	
 
    	
86.
    	
Select   Specialty Hospital - Augusta, Inc.
    
	
 
    	
87.
    	
Select   Specialty Hospital - Beech Grove, Inc.
    
	
 
    	
88.
    	
Select   Specialty Hospital - Charleston, Inc.
    
	
 
    	
89.
    	
Select   Specialty Hospital - Cincinnati, Inc.
    
	
 
    	
90.
    	
Select   Specialty Hospital - Colorado Springs, Inc.
    
	
 
    	
91.
    	
Select   Specialty Hospital - Columbus, Inc.
    
	
 
    	
92.
    	
Select   Specialty Hospital - Conroe, Inc.
    
	
 
    	
93.
    	
Select   Specialty Hospital - Dallas, Inc.
    
	
 
    	
94.
    	
Select   Specialty Hospital - Danville, Inc.
    
	
 
    	
95.
    	
Select   Specialty Hospital - Denver, Inc.
    
	
 
    	
96.
    	
Select   Specialty Hospital - Durham, Inc.
    
	
 
    	
97.
    	
Select   Specialty Hospital - Erie, Inc.
    
	
 
    	
98.
    	
Select   Specialty Hospital - Evansville, Inc.
    
	
 
    	
99.
    	
Select   Specialty Hospital - Flint, Inc.
    

 

 

	
 
    	
100.
    	
Select   Specialty Hospital - Fort Smith, Inc.
    
	
 
    	
101.
    	
Select   Specialty Hospital - Fort Wayne, Inc.
    
	
 
    	
102.
    	
Select   Specialty Hospital - Gainesville, Inc.
    
	
 
    	
103.
    	
Select   Specialty Hospital - Greensboro, Inc.
    
	
 
    	
104.
    	
Select   Specialty Hospital - Grosse Pointe, Inc.
    
	
 
    	
105.
    	
Select   Specialty Hospital - Jackson, Inc.
    
	
 
    	
106.
    	
Select   Specialty Hospital - Johnstown, Inc.
    
	
 
    	
107.
    	
Select   Specialty Hospital - Kalamazoo, Inc.
    
	
 
    	
108.
    	
Select   Specialty Hospital - Kansas City, Inc.
    
	
 
    	
109.
    	
Select   Specialty Hospital - Knoxville, Inc.
    
	
 
    	
110.
    	
Select   Specialty Hospital - Laurel Highlands, Inc.
    
	
 
    	
111.
    	
Select   Specialty Hospital - Lexington, Inc.
    
	
 
    	
112.
    	
Select   Specialty Hospital - Little Rock, Inc.
    
	
 
    	
113.
    	
Select   Specialty Hospital - Longview, Inc.
    
	
 
    	
114.
    	
Select   Specialty Hospital - Macomb County, Inc.
    
	
 
    	
115.
    	
Select   Specialty Hospital - Madison, Inc.
    
	
 
    	
116.
    	
Select   Specialty Hospital - McKeesport, Inc.
    
	
 
    	
117.
    	
Select   Specialty Hospital - Memphis, Inc.
    
	
 
    	
118.
    	
Select   Specialty Hospital - Midland, Inc.
    
	
 
    	
119.
    	
Select   Specialty Hospital - Milwaukee, Inc.
    
	
 
    	
120.
    	
Select   Specialty Hospital - Nashville, Inc.
    
	
 
    	
121.
    	
Select   Specialty Hospital - North Knoxville, Inc.
    
	
 
    	
122.
    	
Select   Specialty Hospital - Northeast New Jersey, Inc.
    
	
 
    	
123.
    	
Select   Specialty Hospital - Northeast Ohio, Inc.
    
	
 
    	
124.
    	
Select   Specialty Hospital - Northwest Detroit, Inc.
    
	
 
    	
125.
    	
Select   Specialty Hospital - Oklahoma City, Inc.
    
	
 
    	
126.
    	
Select   Specialty Hospital - Omaha, Inc.
    
	
 
    	
127.
    	
Select   Specialty Hospital - Orlando, Inc.
    
	
 
    	
128.
    	
Select   Specialty Hospital - Palm Beach, Inc.
    
	
 
    	
129.
    	
Select   Specialty Hospital - Panama City, Inc.
    
	
 
    	
130.
    	
Select   Specialty Hospital - Pensacola, Inc.
    
	
 
    	
131.
    	
Select   Specialty Hospital - Phoenix, Inc.
    
	
 
    	
132.
    	
Select   Specialty Hospital - Pittsburgh/UPMC, Inc.
    
	
 
    	
133.
    	
Select   Specialty Hospital - Pontiac, Inc.
    
	
 
    	
134.
    	
Select   Specialty Hospital - Quad Cities, Inc.
    

 

 

	
 
    	
135.
    	
Select   Specialty Hospital - Saginaw, Inc.
    
	
 
    	
136.
    	
Select   Specialty Hospital - San Antonio, Inc.
    
	
 
    	
137.
    	
Select   Specialty Hospital - Savannah, Inc.
    
	
 
    	
138.
    	
Select   Specialty Hospital - Sioux Falls, Inc.
    
	
 
    	
139.
    	
Select   Specialty Hospital - South Dallas, Inc.
    
	
 
    	
140.
    	
Select   Specialty Hospital - Springfield, Inc.
    
	
 
    	
141.
    	
Select   Specialty Hospital - Tallahassee, Inc.
    
	
 
    	
142.
    	
Select   Specialty Hospital - Topeka, Inc.
    
	
 
    	
143.
    	
Select   Specialty Hospital - TriCities, Inc.
    
	
 
    	
144.
    	
Select   Specialty Hospital - Tulsa, Inc.
    
	
 
    	
145.
    	
Select   Specialty Hospital - Western Michigan, Inc.
    
	
 
    	
146.
    	
Select   Specialty Hospital - Western Missouri, Inc.
    
	
 
    	
147.
    	
Select   Specialty Hospital - Wichita, Inc.
    
	
 
    	
148.
    	
Select   Specialty Hospital - Wilmington, Inc.
    
	
 
    	
149.
    	
Select   Specialty Hospital - Winston-Salem, Inc.
    
	
 
    	
150.
    	
Select   Specialty Hospital - Youngstown, Inc.
    
	
 
    	
151.
    	
Select   Specialty Hospital - Zanesville, Inc.
    
	
 
    	
152.
    	
Select   Specialty Hospitals, Inc.
    
	
 
    	
153.
    	
Select   Subsidiaries, Inc.
    
	
 
    	
154.
    	
Select   Synergos, Inc.
    
	
 
    	
155.
    	
Select   Transport, Inc.
    
	
 
    	
156.
    	
Select   Unit Management, Inc.
    
	
 
    	
157.
    	
SemperCare, Inc.
    
	
 
    	
158.
    	
Sports &   Orthopedic Rehabilitation Services, Inc.
    
	
 
    	
159.
    	
The   Rehab Group, Inc.
    
	
 
    	
160.
    	
Theraworks, Inc.
    
	
 
    	
161.
    	
Victoria   Healthcare, Inc.
    
	
 
    	
162.
    	
OHRH   ES, Inc.
    
	
 
    	
163.
    	
GRSH   ES, Inc.
    
	
 
    	
164.
    	
Select   Specialty Hospital — Daytona Beach, Inc.
    
	
 
    	
165.
    	
Select   Specialty Hospital — Melbourne, Inc.
    
	
 
    	
166.
    	
GH   General — San Antonio, LLC
    
	
 
    	
167.
    	
GR   General — Scottsdale, LLC
    

 

 

	
Group   2
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
168.
    	
SelectMark, Inc.
    
	
 
    	
169.
    	
SLMC   Finance Corporation
    
	
 
    	
 
    	
 
    
	
Group   3
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
170.
    	
Select   Physical Therapy of Albuquerque, Ltd.
    
	
 
    	
171.
    	
Select   Physical Therapy of Birmingham, Ltd.
    
	
 
    	
172.
    	
Select   Physical Therapy of Blue Springs Limited Partnership
    
	
 
    	
173.
    	
Select   Physical Therapy of Cave Springs Limited Partnership
    
	
 
    	
174.
    	
Select   Physical Therapy of Colorado Springs Limited Partnership
    
	
 
    	
175.
    	
Select   Physical Therapy of Connecticut Limited Partnership
    
	
 
    	
176.
    	
Select   Physical Therapy of Denver, Ltd.
    
	
 
    	
177.
    	
Select   Physical Therapy of Green Bay Limited Partnership
    
	
 
    	
178.
    	
Select   Physical Therapy of Illinois Limited Partnership
    
	
 
    	
179.
    	
Select   Physical Therapy of Kendall, Ltd.
    
	
 
    	
180.
    	
Select   Physical Therapy of Knoxville Limited Partnership
    
	
 
    	
181.
    	
Select   Physical Therapy of Lorain Limited Partnership
    
	
 
    	
182.
    	
Select   Physical Therapy of Louisville, Ltd.
    
	
 
    	
183.
    	
Select   Physical Therapy of Portola Valley Limited Partnership
    
	
 
    	
184.
    	
Select   Physical Therapy of Scottsdale Limited Partnership
    
	
 
    	
185.
    	
Select   Physical Therapy of St. Louis Limited Partnership
    
	
 
    	
186.
    	
Select   Physical Therapy of West Denver Limited Partnership
    
	
 
    	
187.
    	
Select   Physical Therapy Texas Limited Partnership
    
	
 
    	
 
    	
 
    
	
Group   4
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
188.
    	
Select   Physical Therapy of Ohio Limited Partnership
    
	
 
    	
189.
    	
Select   Physical Therapy Limited Partnership for Better Living
    
	
 
    	
 
    	
 
    
	
Group   5
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
190.
    	
Regency   Hospital of Odessa, LLLP
    
	
Group   6
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
191.
    	
Regency   Hospital Company of Macon, L.L.C.
    
	
 
    	
192.
    	
Regency   Hospital Company of Meridian, L.L.C.
    
	
 
    	
193.
    	
Regency   Hospital Company of South Atlanta, L.L.C.
    
	
 
    	
194.
    	
Regency   Hospital Company of South Carolina, L.L.C.
    

 

 

	
 
    	
195.
    	
Regency   Hospital of Cincinnati, LLC
    
	
 
    	
196.
    	
Regency   Hospital of Columbus, LLC
    
	
 
    	
197.
    	
Regency   Hospital of Covington, LLC
    
	
 
    	
198.
    	
Regency   Hospital of Greenville, LLC
    
	
 
    	
199.
    	
Regency   Hospital of Jackson, LLC
    
	
 
    	
200.
    	
Regency   Hospital of Minneapolis, LLC
    
	
 
    	
201.
    	
Regency   Hospital of North Central Ohio, LLC
    
	
 
    	
202.
    	
Regency   Hospital of North Dallas Holdings, LLC
    
	
 
    	
203.
    	
Regency   Hospital of Northwest Arkansas, LLC
    
	
 
    	
204.
    	
Regency   Hospital of Northwest Indiana, LLC
    
	
 
    	
205.
    	
Regency   Hospital of Southern Mississippi, LLC
    
	
 
    	
206.
    	
Regency   Hospital of Toledo, LLC
    
	
 
    	
207.
    	
Regency   Hospital of Odessa Limited Partner, LLC
    
	
 
    	
208.
    	
Regency   Hospital of Fort Worth Holdings, LLC
    
	
 
    	
 
    	
 
    
	
Group   7
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
209.
    	
Kessler   Professional Services, LLC
    
	
 
    	
210.
    	
Argosy   Health, LLC
    
	
 
    	
211.
    	
Select   Medical Property Ventures, LLC
    
	
 
    	
212.
    	
Select   Specialty Hospital — Northern Kentucky, LLC
    
	
 
    	
213.
    	
Select   Specialty Hospital — Tulsa/Midtown, LLC
    
	
 
    	
214.
    	
West   Gables Rehabilitation Hospital, LLC
    
	
 
    	
215.
    	
GP   Therapy, L.L.C.
    
	
 
    	
216.
    	
The   Rehab Group — Murfreesboro, LLC
    
	
 
    	
217.
    	
Regency   Hospital Company, L.L.C.
    
	
 
    	
218.
    	
Regency   Hospitals, LLC
    

 

 

SCHEDULE II

TO ADDITIONAL CREDIT EXTENSION AMENDMENT

 

2018 Extended Revolving Commitments

 

	
Lender
    	
 
    	
Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
J.P. MORGAN CHASE BANK, N.A. 
    	
 
    	
$
    	
46,750,000.00
    	
 
    
	
BANK OF AMERICA, N.A. 
    	
 
    	
$
    	
46,750,000.00
    	
 
    
	
WELLS FARGO BANK, NATIONAL ASSOCIATION 
    	
 
    	
$
    	
46,750,000.00
    	
 
    
	
ROYAL BANK OF CANADA 
    	
 
    	
$
    	
46,750,000.00
    	
 
    
	
GOLDMAN SACHS BANK USA 
    	
 
    	
$
    	
40,000,000.00
    	
 
    
	
MORGAN STANLEY BANK, N.A. 
    	
 
    	
$
    	
40,000,000.00
    	
 
    
	
PNC BANK, NATIONAL ASSOCIATION 
    	
 
    	
$
    	
19,500,000.00
    	
 
    
	
MORGAN STANLEY SENIOR FUNDING, INC. 
    	
 
    	
$
    	
6,750,000.00
    	
 
    
	
MANUFACTURERS & TRADERS TRUST CO. 
    	
 
    	
$
    	
6,750,000.00
    	
 
    
	
Total
    	
 
    	
$
    	
300,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]