Document:

Exhibit
10.24 

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT 

 

MICHAEL
LINOS

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of September 8, 2014, by and
between AllDigital, Inc., a California corporation (the “Company”), and Michael Linos (“Employee”). This
Agreement replaces the Employment Agreement, dated January 27, 2014 (the “Initial Effective Date”), by and between
the Company and 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 submit an executed 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 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 collectively referred to herein as the
“Consolidated Company.” 

 

3. Services. Employee
shall serve as President and Interim CEO 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.

 

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.

 

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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, and policies and procedures
adopted by the Board of Directors of the Company, unless such manual, handbook, policy 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 or not 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 the Board of Directors of the Company or 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 $144,000. The Base Salary shall be subject to adjustment upward, but not downward, in the sole
and absolute discretion of the Board of Directors of the Parent Company. All Base Salary hereunder shall be payable in
accordance with the Company’s customary payroll practices and subject to federal and state withholding requirements. 

 

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 Board of Directors of the Parent Company. 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.

 

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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 (as defined below)
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 being paid to Employee as of the effective date of the
termination of employment and payable in six equal monthly installments less any applicable taxes, 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 of this Agreement 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.

 

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-1(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.

 

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(ii)
Upon any termination of Employee’s employment by the Company for “Cause”, the Company shall pay to Employee
any accrued but unpaid Base Salary 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, (d) Employee’s breach of any of the covenants set forth in Sections 4, 5, 6, 9 or 10, or (e) 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 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 a maximum of 20 days per year, accruing at a rate of two days per month, and a maximum accrual of 20 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 Employee providing notice to the senior human resource contact in the Company and one other executive
officer of the Company. 

 

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 in accordance with Company
policy.

 

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

 

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

 

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, partners,
suppliers, vendors, licensees, or licensors, of a confidential, proprietary, or secret nature not readily available to the
public (the “Confidential Information”). 

 

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.

 

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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 Board of Directors
of the Parent Company. 

 

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

 

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

 

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

 

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

 

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

 

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

 

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 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.

 

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20. Employee
Handbook. Employee shall be governed by the personnel rules and regulations set forth in the Company’s employee
handbook and related documents, which may be modified from time to time. 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. Stock
Grants. Provided that the Employee is employed by the Company on the applicable issuance date, the Company shall grant
and issue 1,000,000 shares of Common Stock on each of the first anniversary and the second anniversary of the Initial
Effective Date. Immediately prior to the consummation of a “Transaction” as defined in Section 9.2 of the Amended
and Restated 2011 Stock Incentive Plan of AllDigital Holdings, Inc. (as the same may be amended and/or restated from time to
time), provided that the Employee is employed by the Company immediately prior to the consummation of the Transaction, upon
the Employee’s written demand in accordance with this section, the Company shall issue to Employee the number of
unissued shares of Common Stock to which the Employee would be entitled to under this Section 23. The Company shall give
Employee at least 5 business days notice prior to the consummation of any Transaction and, within 2 business days of
receiving such notice, Employee shall provide the Company with written notice stating whether or not Employee elects to
exercise his rights under this Section 23.

 

[Signature
Page Follows.]

 

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

 

	 	ALLDIGITAL,
    INC.
	 	 
	 	By:	 /s/
    Brad     Eisenstein 

        

	 	Name:	 Brad
Eisenstein 
	 	Its:

        
	 Chief Financial
Officer and Chief Operating Officer 
	 	Date:	 
	 	 	 
	

        
	Address:	 
	 	 	 
		EMPLOYEE
	 	 
	 	  /s/
    Michael Linos 
	 	Michael
    Linos
	 	

        

        Date:
	 
	 	 	 
		Address:	 

 

    	9Exhibit
10.26 

 

NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OR CONVERSION OF THESE SECURITIES HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE SECURITIES REPRESENTED
HEREBY MAY NOT BE EXERCISED, CONVERTED, OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED (EACH A “TRANSFER”)
EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSFER NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (B) TO THE EXTENT THE TRANSFER DOES NOT
CONSTITUTE AND WILL NOT RESULT IN A VIOLATION OF APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT (TO THE EXTENT REQUESTED BY COUNSEL OF THE COMPANY), THE SUBSTANCE OF WHICH SHALL
BE REASONABLY ACCEPTABLE TO THE COMPANY. THE HOLDER HEREOF AGREES THAT IT WILL DELIVER, OR CAUSE TO BE DELIVERED, TO EACH PERSON
TO WHOM THE SECURITIES HEREBY REPRESENTED ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THESE SECURITIES
AND THE SECURITIES ISSUABLE UPON EXERCISE OR CONVERSION OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT SECURED BY SUCH SECURITIES.

 

5%
SENIOR SECURED CONVERTIBLE NOTE

 

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

 

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

 

    	 

    	 

    

 

This
Note is being issued pursuant to the terms and conditions contained in that certain Securities Purchase Agreement between the
original Holder and the Company (the “Securities Purchase Agreement”) and pursuant to the terms and conditions
contained in the Company’s Confidential Private Placement Memorandum dated October 3, 2014 (the “Offering Memorandum”).
This Note, together with the similar 5% Senior Secured Convertible Notes issued pursuant to the Memorandum, are collectively referred
to herein as the “Notes.”

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Note
Maturity Date” shall mean the earlier of (i) December 31, 2016, and (ii) the date as of which the outstanding principal
and accrued interest on this Note and all other payments payable hereunder are due and payable to the Holder pursuant to Section
4.2.

 

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

 

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

 

    	-2-

    	 

    

 

2.
Interest. Until the Note Maturity Date, this Note will bear interest at a rate of 5% per annum, computed on the
basis of the actual number of days elapsed and a year of three hundred sixty-five (365) days. After the Note Maturity Date and
until the outstanding principal and accrued interest on this has been paid, this Note will bear interest at a rate of 1% per month,
computed on the basis of the actual number of days elapsed and a year month of thirty (30) days. Accrued interest on this Note
shall be due and payable quarterly on the fifth (5th) day after the last business day of each calendar quarter beginning
with the quarter ended December 31, 2014, with a final installment due on the Note Maturity Date, whether by acceleration, scheduled
maturity or otherwise. Subject to Section 5, any accrued interest on this Note shall be payable in cash.

 

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

 

4.
Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-3-

    	 

    

 

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

 

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

 

5.Conversion.

 

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

 

5.2
Conversion Procedure.

 

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

 

    	-4-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-5-

    	 

    

 

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

 

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

 

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

 

    	-6-

    	 

    

 

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

 

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

 

6.5
Notice to the Holder.

 

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

 

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

 

    	-7-

    	 

    

 

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

 

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

 

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

 

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

 

    	-8-

    	 

    

 

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

 

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

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

 

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

 

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

 

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

 

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

      
 

[signature
page follows]

 

    	-9-

    	 

    

 

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

 

	 	ALLDIGITAL HOLDINGS, INC.,
	 	a Nevada corporation
	 	 	 
	 	By:	 
	 	 	Michael
    Linos, President & Interim CEO

 

    	-10-

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