EXHIBIT 10.9
 
DOMAIN NAME PURCHASE AGREEMENT

This Domain Name Purchase Agreement (this “Agreement”) is dated as of May 16,
2014 by and among SearchCore, Inc., a Nevada corporation (“SearchCore”), on the
one hand, and Brad Nelms, an individual (“Nelms”) and Platinum Technology
Ventures, LLC, a Nevada limited liability company (“Platinum”), on the other
hand. Each of SearchCore, Nelms, and Platinum shall be referred to herein as a
“Party” and collectively as the “Parties.”

RECITALS

WHEREAS, Nelms was the record owner of the domain names set forth on Exhibit A
attached hereto and made a part hereof (the “Indirect Domain Names”), on behalf
of SearchCore and prior to their transfer to Domain Capital, LLC (“DCL”) as part
of a sale-leaseback financing transaction, and held the domain names pursuant to
that certain Domain Holding and Transfer Agreement dated August 13, 2012;

WHEREAS, SearchCore was the record owner of the domain names set forth on
Exhibit B attached hereto and made a part hereof (the “Direct Domain Names” and,
together with the Indirect Domain Names, the “Pledged Domain Names”), prior to
their transfer to DCL as part of the same sale-leaseback financing transaction;

WHEREAS, SearchCore desires to sell, transfer and assign to Platinum, and
Platinum desires to purchase and acquire from SearchCore, the Pledged Domain
Names (including all intellectual property, code, software and rights related to
branding associated therewith), with the exception of www.toyhaulers.com and
www.traveltrailer.com (the domain names being sold are referred to herein as the
“Domain Names”) according to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises herein contained, the
Parties hereby agree as follows:

ARTICLE 1
PURCHASE AND SALE OF THE DOMAIN NAMES

1.1           Purchase and Sale of the Domain Names. SearchCore hereby sells,
transfers, assigns and delivers to Platinum, free and clear of any liens or
encumbrances of any kind other than as set forth herein, all of SearchCore’s
right, title and interest in and to the Domain Names.

1.2           Purchase Price. The purchase price for the Domain Names (the
“Purchase Price”) is as follows:

1.2.1           The sum of One Million Dollars ($1,000,000), payable in the form
of a non-recourse secured promissory note, a copy of which is attached hereto as
Exhibit C (the “Purchase Note”), in favor of SearchCore;
 
 
1 of 7

--------------------------------------------------------------------------------

 

1.2.2           Platinum shall assume the obligations of SearchCore under that
certain Lease Agreement dated August 8, 2013 and that certain Buyback Agreement
dated August 8, 2013 (except that Platinum agrees to immediately transfer
www.traveltrailer.com and www.toyhaulers.com to SearchCore upon the repurchase
thereof), both by and between SearchCore and Domain Capital, LLC (“DCL”),
pursuant to a Assignment, Assumption and Indemnity Agreement entered into with
DCL, a copy of which is attached hereto as Exhibit D (the “Sublease Agreement”).
Notwithstanding the foregoing, SearchCore will make the payments to DCL under
the Sublease for the months of May through October, 2014; and

1.2.3           Nelms shall execute a Personal Guaranty for the obligations
arising under the Sublease Agreement, a copy of which is attached hereto as
Exhibit E (the “Personal Guaranty”);

1.2.4           Platinum and Nelms hereby agree that, for so long as they or
their affiliates, successors, or assigns are the record or beneficial owners of
any of the Domain Names, SearchCore and its affiliates, successors or assigns
will receive the highest subscription level, for example, “gold” level, or
equivalent, on the primary website, currently www.manufacturedhomes.com, for
each manufactured home retail center location it owns, manages, has a financial
interest in, or controls.

1.3           No Additional Assumption of Liabilities. Other than as set forth
herein, or in the exhibits attached hereto, Nelms and Platinum will not assume
any obligations of SearchCore.

1.4           Closing; Conditions to Closing. The Closing (the “Closing”) shall
take place at the offices of SearchCore on May 19, 2014, or at such other place,
date and time as the Parties may agree in writing (the “Closing Date”), and will
be subject to the following conditions, which much be satisfied at or prior to
the Closing unless otherwise specified:

1.4.1   Platinum will have executed the Purchase Note, along with a pledge and
security agreement, a copy of which is attached hereto as Exhibit F (the
“Security Agreement”), and a UCC-1 Financing Statement, a copy of which is
attached hereto as Exhibit G (the “UCC-1”);

1.4.2   Platinum will have executed the Operating Expenses Note (as hereinafter
defined).

1.4.3   Platinum, SearchCore, and DCL will have executed the Sublease Agreement;

1.4.4   SearchCore and Nelms will have executed the Personal Guaranty;
 
 
2 of 7

--------------------------------------------------------------------------------

 

1.4.5   SearchCore and Nelms will have executed a separation and mutual release
agreement, a copy of which is attached hereto as Exhibit H (the “Release
Agreement”), which terminated Nelms’ employment with SearchCore and released
both parties from any further obligations to each other arising therefrom;

1.4.6   The respective Board of Directors of each of SearchCore and Platinum
shall have approved the transactions contemplated by this Agreement and
delivered evidence thereof satisfactory to the Parties.

1.5           Post Closing Activities.

1.5.1   Operating Expenses Loan.

(a)           Beginning on May 26, 2014, and continuing on the 26th day of each
month for six (6) consecutive months thereafter, SearchCore will loan to
Platinum the sum of Fifteen Thousand Dollars ($15,000), up to a maximum of
Ninety Thousand Dollars ($90,000), for operating expenses related to ongoing
operations of the www.manufacturedhomes.com website (the “Operating Expenses
Loan”). Operating expenses shall include coding, programming, sales,
administration, and human resources.

(b)           Beginning on November 26, 2014, and continuing on the 26th day of
each month for six (6) consecutive months thereafter, Platinum will repay the
Operating Expenses Loan in monthly payments of Fifteen Thousand Dollars
($15,000), plus amortized interest at the rate of one percent (1%) per annum.

(c)           The terms and conditions of the Operating Expenses Loan will be
set forth in a non-recourse secured promissory note, a copy of which is attached
hereto as Exhibit I (the “Operating Expenses Note”), in favor of SearchCore.

1.5.2           At any time after the Closing Date, upon any Party’s written
request and without further consideration, the other Parties shall take such
other actions as the requesting Party may reasonably deem necessary or desirable
in order to consummate the terms of, obligations under and transactions
contemplated by, this Agreement.
 
 
3 of 7

--------------------------------------------------------------------------------

 

ARTICLE 2
REPRESENTATIONS AND WARRANTIES

2.1           Authority. The Parties, and each of them, represent to the other
Parties that he or it has the right to enter into this Agreement and has the
ability to perform its obligations hereunder, including the assignment, transfer
and delivery by SearchCore, and purchase by Platinum, of the Domain Names
hereunder. SearchCore and Platinum are both duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization.

2.2           “As Is” “Where Is”. Platinum has received all of the information
and documentation it requires in connection with the Domain Names and, except as
expressly provided herein, is acquiring its interest in the Domain Names in an
“as is” “where is” condition.

2.3           No Other Representations. Except as expressly set forth in this
Agreement, no Party makes any further representations or warranties concerning
the subject matter contained herein.

2.4           Survival. Each of the representations, warranties and agreements
of each of the Parties contained in this Agreement shall survive the Closing
Date.

ARTICLE 3
MISCELLANEOUS

3.1           Each Party agrees to indemnify and hold harmless the other Parties
and any of their agents, employees, directors, assigns or all other
representatives against any and all liability, loss and costs, expenses or
damages, including but not limited to, any and all expenses whatsoever
reasonably incurred in investigating, preparing or defending against any
litigation, commenced or threatened, or any claim whatsoever or howsoever caused
by reason of any injury (whether to body, property, personal or business
character or reputation) sustained by any person or to any person or property,
arising out of any act, failure to act, or any breach of any material
representation, warranty or covenant by either Party or any of its agents,
employees, or other representatives. Nothing herein is intended to nor shall it
relieve either Party from liability for its own willful act, omission or
negligence. All remedies provided by law, or in equity shall be cumulative and
not in the alternative.

3.2           Each Party hereto will hold and will cause its agents, officers,
directors, attorneys, employees, consultants and advisors to hold in strict
confidence, unless compelled to disclose by judicial or administrative process
or, in the opinion of its counsel, by other requirements of law, all documents
and information concerning any other Party furnished it by such other Party or
its representatives in connection with the subject matter hereof (except to the
extent that such information can be shown to have been (i) previously known by
the Party to which it was furnished, (ii) in the public domain through no fault
of such Party, or (iii) later lawfully acquired from other sources by the Party
to which it was furnished), and each Party will not release or disclose such
information to any other person, except its auditors, attorneys, financial
advisors, bankers and other consultants and advisors in connection with this
Agreement. Notwithstanding the foregoing, the Parties acknowledge SearchCore’s
obligation to disclose the transactions contemplated by this Agreement in its
filings with the Securities and Exchange Commission, including filing a copy
hereof as an exhibit thereto.
 
 
4 of 7

--------------------------------------------------------------------------------

 

3.3           All notices required or permitted hereunder shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the Party
to be notified, (b) when sent by confirmed facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, or (c)
upon personal delivery if deposited with a recognized courier with written
verification of receipt. All communications shall be sent as follows:
 

 If to SearchCore:   SearchCore, Inc.
26497 Rancho Parkway South
Lake Forest, CA 92630
Attn: James Pakulis
       with a copy to:   Clyde Snow & Sessions, PC
201 S. Main Street, 13th Floor
Salt Lake City, UT 84111
Attn: Brian A. Lebrecht
       If to Nelms or Platinum:    _______________________________    
_______________________________     _______________________________    
_______________________________

 
or at such other address as the Seller or Buyer may designate by ten (10) days
advance written notice to the other Party hereto.

3.4           This Agreement sets forth the entire understanding of the Parties
and supersedes any prior agreement or understanding relating to the subject
matter hereof. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by all the Parties. No waiver of any of
the provisions of this Agreement shall be deemed, or shall constitute, a waiver
of any other provision, whether or not similar, nor shall any waiver constitute
a continuing waiver. No waiver shall be binding unless executed in writing by
the Party making the waiver.

3.5           SearchCore, in its sole and exclusive power, may assign, sell,
transfer or otherwise convey, pledge or encumber any of its rights, obligations
or interests under this Agreement. No other Party may assign, sell, transfer or
otherwise convey, pledge or encumber any of its rights, obligations or interests
under this Agreement without the prior written consent of the Parties.
 
 
5 of 7

--------------------------------------------------------------------------------

 

3.6           Except as otherwise provided herein, the provisions hereof shall
insure to the benefit of, and be binding upon, the successor, assigns, heirs,
executors and administrators of the Parties hereto

3.7           This Agreement shall be governed by and construed in accordance
with the laws of the State of California. In the event that any provision of
this Agreement is held by a court of competent jurisdiction to be unenforceable
or void in any jurisdiction to be unenforceable or void in any jurisdiction, the
other provisions of this Agreement shall remain in full force and effect under
applicable law and shall be construed in order to effectuate the purpose and
intent of this Agreement. Any action brought by any party hereto shall be
brought in the courts located in Orange County California.

3.8           Except as otherwise provided herein, if a dispute should arise
between the Parties including, but not limited to arbitration, the prevailing
party shall be reimbursed by the non-prevailing party for all reasonable
expenses incurred in resolving such dispute, including reasonable attorneys'
fees.

[remainder of page intentionally left blank; signature page to follow]
 
 
 
6 of 7

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first written above.

“SearchCore”
“Platinum”
   
SearchCore, Inc.,
Platinum Technology Ventures, LLC,
a Nevada corporation
a Nevada limited liability company
          /s/ James Pakulis   /s/ Brad Nelms By: James Pakulis By: Brad Nelms
Its: President and Chief Executive Officer Its: Manager          
“Nelms”
      /s/ Brad Nelms  
Brad Nelms, an individual

Exhibits:
     
A – Indirect Domains
B – Direct Domains
C – Purchase Note
D – Sublease Agreement
E – Personal Guaranty
F – Security Agreement
G – UCC-1
H – Release Agreement
I – Operating Expenses Note
 

 
 
 
7 of 7

--------------------------------------------------------------------------------

 
 
Exhibit A

Indirect Domain Names

[To be completed.]
 
 
 
 
 
A-1

--------------------------------------------------------------------------------

 
 
Exhibit B

Direct Domain Names

[To be completed.]
 
 
 
 
 
B-1

--------------------------------------------------------------------------------

 
 
Exhibit C

Purchase Note
 
 
 
 
 
C-1

--------------------------------------------------------------------------------

 
 
Exhibit D

Sublease Agreement
 
 
 
 
 
D-1

--------------------------------------------------------------------------------

 

Exhibit E

Security Agreement
 
 
 
 
 
E-1

--------------------------------------------------------------------------------

 
 
Exhibit F

UCC-1
 
 
 
 
 
F-1

--------------------------------------------------------------------------------

 
 
Exhibit G

Release
 
 
 
 
 
G-1

--------------------------------------------------------------------------------

 
 
Exhibit H

Operating Expenses Note
 
 
 
 
 
 H-1

--------------------------------------------------------------------------------