Document:

Exhibit 10.3

 

ESCROW
AND CONTRIBUTION AGREEMENT

 

THIS
ESCROW AND CONTRIBUTION AGREEMENT (this “Agreement”) is made and entered into as of the 28th day of
June, 2013, by and among ALLDIGITAL HOLDINGS, INC. a Nevada corporation (the “Company”), the STEPHEN JAMES SMITH TRUST
(Dated 10/24/02), a trust (“Smith”), TIMOTHY NAPOLEON, an individual (“Napoleon,” and together
with Smith, the “Contributors”), and PARR BROWN GEE & LOVELESS, P.C., a Utah professional corporation, as
escrow agent (the “Escrow Agent”). The Company and the Contributors are hereinafter sometimes jointly referred
to as the “Parties” and, where no distinction is required by the context, sometimes separately referred to as
a “Party.”

 

RECITALS:

 

WHEREAS,
each of Smith and Napoleon own shares of common stock of the Company (“Shares”); and

 

WHEREAS,
in order to increase the value of the other Shares Smith owns, Smith desires to contribute 600,000 Shares to the Company represented
by certificates numbered 1367 (“Smith C1”), 1368 (“Smith C2”) and 1369 (“Smith C3”);
together with Smith C1 and Smith C2, the “Smith Contribution Shares”), each of which is for 200,000 Shares, subject
to the terms and conditions of this Agreement; and

 

WHEREAS,
in order to increase the value of the other Shares Napoleon owns, Napoleon desires to contribute 600,000 Shares to the Company
represented by certificates numbered 1370 (“Napoleon C1”), 1371 (“Napoleon C2”) and 1372 (“Napoleon
C3”; together with Napoleon C1 and Napoleon C2, the “Napoleon Contribution Shares”; together with the
Smith Contribution Shares, the “Contribution Shares”), each of which is for 200,000 Shares, subject to the terms
and conditions of this Agreement; and

 

WHEREAS,
the Parties have agreed to enter into this Agreement to provide for the contribution of the Contribution Shares and to detail
certain circumstances under which the obligation to contribute the Contribution Shares may lapse;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

1.
Contribution and Escrow Deposit.

 

(a)
Certain Definitions. For purposes of this Agreement:

 

(i)
The “Grant Date” shall mean June 28, 2013.

 

(ii)
Each of the ten-month, twenty-month and thirty-month anniversaries of the Grant Date shall be a “Transfer Date”.

 

(iii)
The “Walpuck Option” shall mean the Stock Option Agreement between John Walpuck and the Company granted on the
Grant Date, a copy of which is attached as Exhibit A hereto.

 

    	 

    	 

    

 

(iv)
The “Wilms Option” shall means the Stock Option Agreement between Kon Wilms and the Company granted on the Grant
Date, a copy of which is attached as Exhibit B hereto.

 

(b)
Smith Contribution.

 

(i)
Subject to subsection l(b)(ii) and l(b)(iii), Smith hereby irrevocably agrees to transfer and assign to the Company, by means
of the Smith Stock Powers described below for no additional consideration (A) the Smith Contribution Shares represented by Smith
C1 on the ten-month anniversary of the Grant Date, (B) the Smith Contribution Shares represented by Smith C2 on the twenty-month
anniversary of the Grant Date, and (C) the Smith Contribution Shares represented by Smith C3 on the thirty-month anniversary of
the Grant Date. Within two business days of the date first set forth above, Smith shall deliver to the Escrow Agent, each of Smith
C1, Smith C2 and Smith C3, together with duly executed stock powers substantially in the form attached hereto as Exhibit C
related to each of Smith C1, Smith C2 and Smith C3 (the “Smith Stock Powers”). References to Smith C1, Smith
C2 and Smith C3 shall include any certificates issued as replacements (partial or full) for the same.

 

(ii)
Notwithstanding subsection l(b)(i), (A) in the event that there occurs any event that causes the exercisability of the Walpuck
Option to accelerate in full, Smith shall immediately transfer and assign to the Company 50% of the Smith Contribution Shares
not yet transferred and assigned on the date of such acceleration in full; and (2) in the event that there occurs any event that
causes the exercisability of the Wilms Option to accelerate in full, Smith shall immediately transfer and assign to the Company
50% of the Smith Contribution Shares not yet transferred and assigned on the date of such acceleration.

 

(iii)
In the event that there occurs any event, such as the termination of the employment of John Walpuck with the Company, that causes
the Walpuck Option to cease vesting prior to the date the Walpuck Option is fully exercisable, the number of Smith Contribution
Shares that Smith is obligated to transfer and assign to the Company under subsection l(b)(i) on each of the ten-month, twenty-month
and thirty-month anniversaries of the Grant Date and under subsection l(b)(ii) (but in all cases only if such dates have not yet
passed), shall be reduced by 50%. In the event that there occurs any event, such as the termination of the employment of Kon Wilms
with the Company, that causes the Wilms Option to cease vesting prior to the date the Wilms Option is fully exercisable, the number
of Smith Contribution Shares that Smith is obligated to transfer and assign to the Company under subsection l(b)(i) on each of
the ten-month, twenty-month and thirty-month anniversaries of the Grant Date and under subsection l(b)(ii) (but in all cases only
if such dates have not yet passed), shall be reduced by 50%. The certificates representing any Smith Contribution Shares released
from the obligations under this Agreement as a result of an event described in this subsection (l)(b)(iii) shall be promptly returned
to Smith, provided that Smith complies with Smith’s obligations under subsection (iv) below.

 

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(iv)
The Company and Smith shall be each obligated to notify the Escrow Agent in writing of the occurrence of any of the events described
in subsections (l)(b)(ii) or (l)(b)(iii), and the Escrow Agent shall have no obligation to make any inquiry with respect to any
such event and shall have no liability for any action or omission resulting its failure to receive written notice of any such
event. In the events that subsections (l)(b)(ii) or (l)(b)(iii) become applicable, Smith, the Company and the Escrow Agent, at
the Company’s expense, shall cooperate to execute substitute stock powers, and exchange or subdivide certificates, in order to
ensure that the Escrow Agent has on each Transfer Date a certificate, and associated stock power, representing the number of Smith
Contribution Shares to be transferred and assigned on such Transfer Date and that any Smith Contribution Shares that are released
from the obligations of this Agreement can be returned.

 

(c)
Napoleon Contribution.

 

(i)
Subject to subsection l(c)(ii) and l(c)(iii), Napoleon hereby irrevocably agrees
to transfer and assign to the Company, by means of the Napoleon Stock Powers described below for no additional consideration (A)
the Napoleon Contribution Shares represented by Napoleon C1 on the ten-month anniversary of the Grant Date, (B) the Napoleon Contribution
Shares represented by Napoleon C2 on the twenty-month anniversary of the Grant Date, and (C) the Napoleon Contribution Shares
represented by Napoleon C3 on the thirty-month anniversary of the Grant Date. Within two business days of the date first set forth
above, Napoleon shall deliver to the Escrow Agent, each of Napoleon C1, Napoleon C2 and Napoleon C3, together with duly executed
stock powers substantially in the form attached hereto as Exhibit C related to each of Napoleon C1, Napoleon C2 and Napoleon
C3 (the “Napoleon Stock Powers”; together with the Smith Stock Powers, the “Stock Powers”).
References to Napoleon C1, Napoleon C2 and Napoleon C3 shall include any certificates issued as replacements (partial or full)
for the same.

 

(ii)
Notwithstanding subsection l(c)(i), (A) in the event that there occurs any event that causes the exercisability of the Walpuck
Option to accelerate in full, Napoleon shall immediately transfer and assign to the Company 50% of the Napoleon Contribution Shares
not yet transferred and assigned on the date of such acceleration in full; and (2) in the event that there occurs any event that
causes the exercisability of the Wilms Option to accelerate in full, Napoleon shall immediately transfer and assign to the Company
50% of the Napoleon Contribution Shares not yet transferred and assigned on the date of such acceleration.

 

(iii)
In the event that there occurs any event, such as the termination of the employment of John Walpuck with the Company, that causes
the Walpuck Option to cease vesting prior to the date the Walpuck Option is fully exercisable, the number of Napoleon Contribution
Shares that Napoleon is obligated to transfer and assign to the Company under subsection l(c)(i) on each of the ten-month, twenty-month
and thirty-month anniversaries of the Grant Date and under subsection l(c)(ii) (but in all cases only if such dates have not yet
passed), shall be reduced by 50%. In the event that there occurs any event, such as the termination of the employment of Kohn
Wilms with the Company, that causes the Wilms Option to cease vesting prior to the date the Wilms Option is fully exercisable,
the number of Napoleon Contribution Shares that Napoleon is obligated to transfer and assign to the Company under subsection l(c)(i)
on each of the ten-month, twenty-month and thirty-month anniversaries of the Grant Date and under subsection l(c)(ii) (but in
all cases only if such dates have not yet passed), shall be reduced by 50%. The certificates representing any Napoleon Contribution
Shares released from the obligations under this Agreement as a result of an event described in this subsection (l)(c)(iii) shall
be promptly returned to Napoleon, provided that Napoleon complies with Napoleon’s obligations under subsection (iv) below.

 

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(iv)
The Company and Napoleon shall be each obligated to notify the Escrow Agent in writing of the occurrence of any of the events
described in subsections (l)(c)(ii) or (l)(c)(iii), and the Escrow Agent shall have no obligation to make any inquiry with respect
to any such event and shall have no liability for any action or omission resulting its failure to receive written notice of any
such event. In the events that subsections (l)(c)(ii) or (l)(c)(iii) become applicable, Napoleon, the Company and the Escrow Agent,
at the Company’s expense, shall cooperate to execute substitute stock powers, and exchange or subdivide certificates, in order
to ensure that the Escrow Agent has on each Transfer Date a certificate, and associated stock power, representing the number of
Napoleon Contribution Shares to be transferred and assigned on such Transfer Date and that any Napoleon Contribution Shares that
are released from the obligations of this Agreement can be returned.

 

(d)
Each of the Contributors, with respect to his or its respective Contribution Shares, represents and warrants that (i) he or it
is the sole owner of such Contributions Shares, (i) such Contribution Shares are not subject to any encumbrances, pledges, security
interests, options or other third party rights, and (ii) his transfer and contribution of the Contribution Shares to the Company
subject to the terms and conditions of this Agreement will not violate any agreement, court order, or law to which he is subject
or otherwise require the consent of any third person.

 

(e)
For purposes of clarity, until such time as the Contribution Shares are transferred to the Company, the person whose name is on
such Contribution Shares shall have all voting rights and rights to receive distribution with respect to such Contribution Shares.

 

2.
Release of Certificates and Stock Powers.

 

(a)
Transfer of Shares on Transfer Date. On or after each Transfer Date, the Escrow Agent shall, upon receipt of a request
from the Company and subject to the Escrow Agent having received the correct certificates and stock powers, transfer and deliver
to the Company (i) the certificates representing the Smith Contribution Shares that Smith is obligated to transfer and assign
to the Company on such date, together with the associated Smith Stock Power, and (ii) the certificates representing the Napoleon
Contribution Shares that Napoleon is obligated to transfer and assign to the Company on such date, together with the associated
Smith Stock Power. In addition, if events described in subsections l(b)(ii) and l(c)(ii) occur with respect to both the Walpuck
Option and the Wilms Option, the Escrow Agent shall, upon receipt of a request from the Company, transfer and deliver to the Company
certificates representing all of the Smith Contributions Shares, certificates representing all of the Napoleon Contribution Shares
and all associated Stock Powers.

 

(b)
Return Events. At any time Smith or Napoleon is entitled to the return of Contribution Shares as a result of the events
described in subsections (l)(b)(iii) or 1(c)(iii), upon satisfaction by all Parties of their obligations under subsections (l)(b)(iv)
and/or l(c)(iv) as applicable (including the possession by the Escrow Agent of certificates for retention and return in correct
amounts, with associated stock powers), the Escrow Agent shall, upon request from Smith or Napoleon as applicable, deliver to
Smith or Napoleon certificates representing Contribution Shares that Smith and/or Napoleon is entitled to received under subsections
(l)(b)(iii) or l(c)(iii).

 

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(c)
Termination. This Agreement shall terminate upon the earliest to occur of the date that all Contribution Shares have been
transferred to the Company or the date on which all Contribution Shares have been returned to Smith or Napoleon, in each case
in accordance with Sections 1 and 2. Upon such termination, this Agreement shall have no further force and effect, except that
the provisions of this Section 2(c), and Sections 3, 4, 5, and 6, and Sections 8 through 18 below shall survive such termination.

 

(d)
Method of Distribution, The Escrow Agent may send any stock powers or certificates it is required to deliver hereunder
by means of Federal Express or other nationally recognized courier services to the applicable notice addresses set forth in Section
8 below. The Escrow Agent is hereby released of any liability associated with the loss or destruction or any stock power or certificate
provided it delivers the same, with the appropriate address, to Federal Express or other nationally recognized courier service.

 

(e)
Overriding of Instructions. Notwithstanding any other provisions of this Agreement, the Escrow Agent shall deliver all
or any part of any stock power of any certificate representing any Contribution Shares in accordance with the terms of any joint
direction addressed to the Escrow Agent and signed by the Company and the respective Contributor, except to the extent an order
of a court of competent jurisdiction by which the Escrow Agent is bound prohibits the Escrow Agent from complying with the terms
hereof.

 

(f)
Effect of a Change in Control or Recapitalization. In the event of a recapitalization, merger, asset sale, stock split,
stock consolidation or any other transaction pursuant to which, by operation of law, the Contribution Shares are exchanged for
other property (including without limitation shares of another company or a different number of shares of the Company), the Parties
shall acknowledge and agree that references to Contribution Shares shall include any property for which the Contribution Shares
are exchanged (on a basis reflecting the exchange ratio) and agree to cooperate in order to (a) execute such transmittal letters
or other documents as are necessary to exchange the Contribution Shares for the other property, (b) to execute such Stock Powers
and other documents as the Escrow Agent determines is necessary or appropriate in order to permit the Escrow Agent to be in a
position to transfer the substitute property consistent with Section 1 of this Agreement.

 

3.
Conditions to Escrow. The Escrow Agent agrees to hold the Escrow Stock Powers and to perform in accordance with the terms
and provisions of this Agreement. The Parties agree that the Escrow Agent shall not assume any responsibility for the failure
of the Parties to perform in accordance with the terms of this Agreement. The acceptance by the Escrow Agent of its responsibilities
hereunder is subject to the following terms and conditions, which the Parties hereto agree shall govern and control with respect
to the Escrow Agent’s rights, duties, and liabilities hereunder:

 

(a)
Documents. The Escrow Agent shall be protected in acting upon any written notice, request, waiver, consent, receipt, or
other paper or document furnished to it, not only as to its due execution and validity and the effectiveness of its provisions,
but also as to the truth and accuracy of any information therein contained, which the Escrow Agent in good faith believes to be
genuine and what it purports to be. Should it be necessary for the Escrow Agent to act upon any instructions, directions, documents,
or instruments issued or signed by or on behalf of any corporation, partnership, fiduciary, or individual acting on behalf of
another party hereto, it shall not be necessary for the Escrow Agent to inquire into such corporation’s, partnership’s, fiduciary’s,
or individual’s authority. The Escrow Agent is also relieved from the necessity of satisfying itself as to the authority of the
persons executing this Agreement in a representative capacity on behalf of any of the Parties.

 

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(b)
Liability. The Escrow Agent shall not be liable for anything that it may do or refrain from doing in connection herewith,
except for its own negligence, bad faith, or willful misconduct.

 

(c)
Legal Counsel. The Escrow Agent may consult with, and obtain advice from, legal counsel in the event of any question as
to any of the provisions hereof or its duties hereunder, and it shall incur no liability and shall be fully protected in acting
in good faith in accordance with the opinion and instructions of such counsel.

 

(d)
Limitation of Duties. The Escrow Agent shall have no duties except those that are expressly set forth herein, which shall
be deemed purely ministerial in nature, and shall under no circumstance be deemed a fiduciary for any of the Parties to this Agreement
It shall not be bound by any agreement of the other Parties hereto (whether or not it has any knowledge thereof). This Agreement
sets forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall
be inferred from the terms of this Agreement or any other Agreement.

 

(e)
Resignation or Termination of Escrow Agent. The Escrow Agent shall have the right to resign at any time by giving written
notice of such resignation to the Parties, and the Parties shall have the right to terminate the services of the Escrow Agent
hereunder at any time by giving written notice (with such written notice being signed by all of the Parties hereto) of such termination
to the Escrow Agent, in each case specifying the effective date of such resignation or termination. Within thirty (30) days after
receiving or delivering the aforesaid notice, as the case may be, the Parties agree to appoint a successor Escrow Agent to which
the Escrow Agent may distribute the property then held hereunder, less the amount of any fees owing to the Escrow Agent hereunder
as of such date. If a successor Escrow Agent has not been appointed and has not accepted such appointment by the end of such thirty
(30) day period, the Escrow Agent may apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent,
and the costs, expenses, and reasonable attorneys’ fees which are incurred in connection with any such proceeding shall be paid
by the Company. Except as otherwise agreed to in writing by the Parties, no escrowed certificates or stock powers shall be released
unless and until a successor Escrow Agent has been appointed in accordance with this Paragraph 3(e).

 

(f)
Discharge of Escrow Agent. Upon delivery of all of the Stock Powers and certificates representing all Contribution Shares
pursuant to the terms of Paragraph 2 above or to a successor Escrow Agent, the Escrow Agent shall thereafter be discharged from
any further obligations hereunder. The Escrow Agent is hereby authorized, in any and all events, to comply with and obey any and
all final judgments, orders, and decrees of any court of competent jurisdiction which may be filed, entered, or issued, and all
final arbitration awards and, if it shall so comply or obey, it shall not be liable to any other person by reason of such compliance
or obedience.

 

4.
Indemnification. The Company hereby agrees to indemnify the Escrow Agent for and to hold it harmless against any loss,
liability, or reasonable expense (including reasonable attorneys’ fees and expenses) incurred without gross negligence, willful
misconduct, or bad faith on the part of the Escrow Agent arising out of or in connection with its performance under this Agreement.
Such indemnification shall survive the resignation or removal of the Escrow Agent or the termination of this Agreement.

 

5.
Escrow Fee and Expenses. The Escrow Agent (a) shall be reimbursed by the Company the expenses reasonably necessary to engage
in performance of its duties hereunder; and (b) shall be paid by the Company for time spent performing its obligations hereunder
at its normal hourly rates for legal services. In the event any expenses are incurred hereunder, Escrow Agent agrees to invoice
the Company for such expenses.

 

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6.
Waiver of Potential Conflicts of Interest. The Parties acknowledge that Escrow Agent has acted as counsel for the Company
and that Escrow Agent’s appointment and performance of its duties hereunder may result in a conflict of interest to the Parties.
Accordingly, the Parties hereto waive any conflict of interest that may arise through Escrow Agent’s appointment hereunder and/or
the performance of its duties as set forth herein. Further, all of the Parties hereby acknowledge and consent to the Escrow Agent’s
continued representation of the Company and the Company’s parents, subsidiaries, officers, directors, agents and affiliates, in
any future matter, including but not limited to any dispute arising under or relating to this Agreement (other than a dispute
to which the Escrow Agent is a party).

 

7.
Limitations on Rights to Escrow Stock Powers. None of the Parties shall have any right, title, or interest in or to, or
possession of, the Contribution Shares and, therefore, shall not have the ability to pledge, convey, hypothecate, or grant as
security all or any portion of the Contribution Shares unless and until such Escrow Stock Powers have been released pursuant to
Section 2 above. Accordingly, the Escrow Agent shall be in sole possession of the Contributions Shares and shall not act as custodian
of the Parties under this Agreement for the purposes of perfecting a security interest therein, and no creditor of any of the
Parties shall have any right to have or to hold or otherwise attach or seize all or any portion of the Contributions Shares as
collateral for any obligation and shall not be able to obtain a security interest in any of the Escrow Stock Powers unless and
until such Escrow Stock Powers have been released pursuant to Section 2 above.

 

8.
Notices. All notices, demands, or other communications to be given or delivered under or by reason of the provisions of
this Agreement shall be in writing and shall be deemed to have been given and received when delivered personally to the recipient,
one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid), or five (5) days
after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid. Such notices,
demands, and other communications shall be sent to the Escrow Agent, the Buyer, and the Seller at the respective addresses indicated
below or at such other address or to the attention of such other person as the recipient party has hereafter specified by prior
written notice to the sending party.

 

If
to the Company, to:

 

Paul
Summers, Chairman & CEO

220
Technology Drive, Suite 100

Irvine,
CA 92618

Fax
no.: 949-250-0730

E-mail
address: pauls@alldigital.com

 

with
a copy (which shall not constitute notice) to:

 

Parr
Brown Gee & Loveless

Attention:
Bryan T. Allen

Address:
185 S. State St., Suite 800, Salt Lake City, Utah 84111

Fax
no.: (801) 532-7750

E-mail
addresses: ballen@parrbrown.com

 

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If
to Smith, to:

 

Steve
Smith

2815
North Stone Pine Glen

Santa
Ana, CA 92706

E-mail
address: steve@alldigital.com

 

If
to Napoleon, to;

 

Tim
Napoleon

7749
East Appaloosa Trail

Orange,
CA 92869

E-mail
address: tim@alldigiial.com

 

If
to the Escrow Agent, to:

 

Parr
Brown Gee & Loveless

Attention:
Bryan T. Allen

Address:
185 S. State St., Suite 800, Salt Lake City, Utah 84111

Fax
no.: (801) 532-7750

E-mail
addresses: ballen@parrbrown.com

 

9.
Entire Agreement; Amendments: Limited Duties.

 

(a)
This Agreement, together with the Exhibits hereto, contains the entire understanding of the Parties with respect to the subject
matter hereof and supersedes any prior understandings or agreements by or among the Parties hereto, whether written or oral, which
may have related to the subject matter hereof in any way. This Agreement may be amended, or any provision of this Agreement may
be waived, so long as such amendment or waiver is set forth in a writing executed by each of the Parties other than the Escrow
Agent (a copy of which shall be promptly provided by the Company to the Escrow Agent); provided, however, that if
any such amendment or waiver would have the effect of increasing or expanding the Escrow Agent’s obligations or duties under this
Agreement, the written consent of the Escrow Agent shall be required in addition to the written consent of the Parties. No course
of dealing between or among the Parties hereto shall be deemed effective to modify, amend, or discharge any part of this Agreement
or any rights or obligations of any Party hereto under or by reason of this Agreement.

 

(b)
The Escrow Agent shall have only those duties as are specifically provided herein. The Escrow Agent shall neither be responsible
for, nor chargeable with, knowledge of the terms and conditions of any other agreement, instrument or document between the other
Parties hereto. This Agreement sets forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations
of the Escrow Agent shall be inferred from the terms of this Agreement or any other Agreement.

 

10. Assigns
and Assignment. This Agreement and all actions taken hereunder shall inure to the benefit of and shall be binding upon
all of the Parties hereto and upon all of their respective successors and assigns; provided, however, that
the Escrow Agent shall not be permitted to assign its obligations hereunder except as provided in Paragraph 3(e)
above.

 

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11.
No Other Third Party Beneficiaries. Nothing herein expressed or implied is intended or shall be construed to confer upon
or to give any person other than the Escrow Agent, the Parties and their permitted assigns any rights or remedies under or by
reason of this Agreement.

 

12.
Interpretation. The headings in this Agreement are inserted for convenience of reference only and shall not be a part of
or control or affect the meaning hereof.

 

13.
No Waiver. No failure or delay by a Party hereto in exercising any right, power, or privilege hereunder shall operate as
a waiver thereof, and no single or partial exercise thereof shall preclude any right of further exercise or the exercise of any
other right, power, or privilege.

 

14.
Severability. The Parties hereto agree that (a) the provisions of this Agreement shall be severable in the event that for
any reason whatsoever the provisions hereof are invalid, void, or otherwise unenforceable, (b) such invalid, void, or otherwise
unenforceable provisions shall be automatically replaced by other provisions which are as similar as possible in terms to such
invalid, void, or otherwise unenforceable provisions, but are valid and enforceable, and (c) the remaining provisions shall remain
enforceable to the fullest extent permitted by law.

 

15.
No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the Parties hereto
to express their collective mutual intent, and no rule of strict construction shall be applied against any person. When a reference
is made in this Agreement to a Paragraph, such reference shall be to a Paragraph of this Agreement unless otherwise indicated.
Whenever the words “include,” or “including,” are used in this Agreement, they shall be deemed to be followed
by the words “without limitation.” When used in this Agreement the term “or” shall have the inclusive meaning
represented by the phrase “and/or.”

 

16.
Releases on Non-business Days. In the event that a release of any Stock Powers or Contributions Shares hereunder is required
to be made on a date that is not a business day, such release may be made on the next succeeding business day with the same force
and effect as if made when required.

 

17.
Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Utah applicable
to contracts to be made and performed entirely therein without giving effect to the principles of conflicts of law thereof or
of any other jurisdiction.

 

18.
Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the
same agreement, and shall become effective when one or more such counterparts have been signed by each party and delivered to
the other Parties hereto. Counterparts and signatures transmitted by facsimile shall be valid as originals.

 

[remainder
of page intentionally left blank; signature page follows]

 

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

 

	THE
    COMPANY:	 
	 	 	 
	ALLDIGITAL
    HOLDINGS, INC.,	 
	a
    Nevada corporation	 
	 	 	 
	By:	/s/
    Paul Summers	 
	Name:	Paul
    Summers	 
	Title:	Chairman
    & CEO	 
	 	 	 
	CONTRIBUTORS:	 
	 	 	 
	STEPHEN
    JAMES SMITH TRUST (Dated 10/24/02)	 
	 	 	 
	By:	/s/
    Stephen James Smith	 
	Name:	Stephen
    James Smith	 
	Title	VP
    - Network Services	 
	 	 	 
	/s/
    TIM NAPOLEON	 
	TIM
    NAPOLEON, an individual	 
	 	 	 
	ESCROW
    AGENT:	 
	 	 
	PARR
    BROWN GEE & LOVELESS, P.C.,	 
	a
    Utah professional corporation	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title	 	 

 

[Signature
Page to Escrow and Contribution Agreement]

 

    	 

    	 

    

 

Exhibit
A

 

Walpuck
Option

 

(See
attached)

 

[Signature
Page to Escrow and Contribution Agreement]

 

    	 

    	 

    

 

Exhibit
B

 

Wilms
Option

 

(See
attached)

 

    	 

    	 

    

 

Exhibit
C

 

Form
of Stock Power

 

(See
attached)

 

    	 

    	 

    

 

STOCK
POWER

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to AllDigital Holdings, Inc. (the “Corporation”)
200,000 shares of the capital common stock of the Corporation, represented by Certificate No. [___] standing in the name of the
undersigned on the books of the Corporation, and does hereby irrevocably constitute and appoint Paul Summers, attorney-in-fact,
to transfer said shares on the books of the Corporation, with full power of substitution in the premises.

 

DATED
this ___ day of June, 2013.

 

	 	 
	 	Print Name
	 	 
	 	 
	 	Authorized Signature

 

Signature
Witnessed by:ALLDIGITAL
AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

JOHNWALPUCK

 

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

 

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

 

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

 

3.Services.
Employee shall serve as Chief Operating Officer and Chief Financial Officer of the Company (or Consolidated Company, as the case
may be) and perform such services for the Company as are customary for such position and as may be assigned to him from time to
time by the Board of Directors of the Parent Company which, generally, shall include the following: (1) interact with executive
management to develop Company’s strategic plans, (2) develop operational and financial objectives, (3) develop, implement and ensure
compliance with operational and financial policies and procedures in collaboration with executive management, (4) prepare the Company’s
annual budget; (5) prepare and present monthly
financial statements, (6) develop and
maintain effective systems of general accounting and cost determination, (7) supervise cost analysis and make recommendations
to ensure appropriate income and cash flow, (8) review billing and collection patterns and make corrective recommendations, (9)
select, orient and train, as appropriate and necessary, finance and other employees, including recommendation of merit increases,
promotions and disciplinary actions, (10) review financial performance and ensure compliance with government reporting requirements,
including tax reports, (11) provide assistance to executive management related to performance of operational and financial management
matters, (12) monitor budgetary performance and internal controls, and (13) other duties as may be assigned by the Chief Executive
Officer and Parent Company Board of Directors.

 

    	1

    	 

    

 

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

 

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

 

6.Restrictive
Covenants During Term.

 

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

 

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

 

7.Compensation.

 

a.
Base Salary. As compensation for the services to be performed hereunder, Employee shall receive an annual base salary
(“Base Salary”) of $12,000.00 per month. The Base Salary shall be subject to adjustment upward, but not downward, in
the sole and absolute discretion of the Parent Company’s Board of Directors. All Base Salary hereunder shall be payable in accordance
with the Company’s customary payroll practices and subject to federal and state withholding requirements. Notwithstanding anything
else set forth herein to the contrary, within sixty (60) days of the date the Consolidated Company first achieves a minimum of
Cash and Accounts Receivable (as defined below) of at least Three Million Five Hundred Thousand Dollars ($3,500,000), the Parent
Company’s Board of Directors shall approve an increase in the Employee’s Base Salary by an amount not less than the amount obtained
by multiplying Employee’s then current Base Salary by fifteen percent (15%). For purposes of this Agreement, “Cash and Accounts
Receivable” of the Company means the sum of (i) the consolidated total balance of cash and short-term investments of the Company,
and (ii) the total balance of accounts receivable of the Company excluding the effect of any deferred revenue offsets.

 

    	2

    	 

    

 

b.Bonuses.
Employee will have the ability to earn an amount equal to 50% of the annual Base Salary as a “Management by Objective Bonus”
(“MBO Bonus”). The MBO Bonus will be deemed earned by the Employee following the successful achievement of quarterly
objectives approved in writing by the Parent Company’s Board of Directors. The MBO Bonus will be payable in quarterly payments.
The MBO Bonus, if earned, will be paid within 45 days of the end of the fiscal quarter, except for any bonus due and payable at
the Company’s year-end, which will then be due no later than March 15 of the following year. If Employee’s employment is terminated
for any reason during any bonus term, the Employee will receive the payment of his pro-rated share of the MBO Bonus within 45 days
of the end of the fiscal quarter provided that the written objectives for that quarter were in the process of being achieved (as
reasonably determined by the Parent Company’s Board and Directors) or were actually achieved during that fiscal quarter.

 

c.Payment
Upon Termination.

 

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

 

    	3

    	 

    

 

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

 

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

 

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

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

 

8. Employee Benefits.

 

a.
Paid Time Off Employee shall be entitled to Paid Time Off (“PTO”) plus company holidays in accordance
with the PTO and Holiday policies set forth in the Company’s Employee Handbook. Initially, it is understood that Employee
shall be entitled to of a maximum of 24 days per year, accruing at a rate of two days per month, and a maximum accrual of 24 days
at any one point in time, excluding paid holidays, the scheduling of which will be approved in advance (generally at least one
month in advance) by the Chief Executive Officer, which approval will not be unreasonably withheld. Any requested PTO days beyond
24 days shall only be approved in writing by the Chief Executive Officer and shall be without compensation unless otherwise agreed
by the Chief Executive Officer or Parent Company Board of Directors.

  

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

 

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

 

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

 

    	4

    	 

    

 

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

 

Repeated
violations of this provision shall be deemed cause for termination as defined in Section7(c)(ii)(d).

 

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

 

9.
Confidential Information.

 

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

 

    	5

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	7

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	8

    	 

    

  

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

 

	 	 	ALLDIGITAL,INC.
	 	 	 
	 	 	By:	/S/
    PAUL SUMMERS
	 	 	Its:	CEO
	 	 	Date:	 July 2, 2013
	ADDRESS:	 	 	220 Technology Dr. STE 100
	 	 	 	Lrvine,CA 92618
	 	 	 	 
	 	 	EMPLOYEE
	 	 	 
	 	 	 	/S/ JOHN WALPUNK
	 	 	Date:	 July 2, 2013
	ADDRESS:	 	 	318 Magnolia Drive
	 	 	 	Laguna Beach, CA 92651
	 	 	 	 

 

    	9

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