Document:

Exhibit 10.27

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT (this “Employment Agreement”), dated as of _______, 2020, between Appliances Connection Inc., a Delaware
corporation (the “Company”), and Elie Fouerti, an individual (the “Executive”).

 

BACKGROUND

 

The
Company wishes to secure the services of the Executive as Vice President of the Company and of its subsidiaries (with such other
related duties and/or offices in the Company or its affiliates as may be assigned by the Company, its Board of Directors or Chief
Executive Officer) upon the terms and conditions hereinafter set forth, and the Executive wishes to render such services to the
Company and its subsidiaries upon the terms and conditions hereinafter set forth.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1. Employment
by the Company. The Company agrees to employ the Executive in the position of Vice President of the Company and of the Company’s
subsidiaries and have such duties and responsibilities as are reasonably and customarily assigned, and delegated to individuals
serving in such positions and such other duties consistent with Executive’s title (with such other related duties and/or
offices in the Company and its affiliates as may be assigned from time to time by the Company, its Board of Directors or Chief
Executive Officer) and the Executive accepts such employment and agrees to perform such duties. The Executive agrees to devote
his full customary business time and energies to the business of the Company and/or its affiliates to perform his duties hereunder.

 

During
the term of this Employment Agreement, the Company shall invite executive to attend all meetings of its Board of Directors in
a nonvoting observer capacity and, in this respect, shall give Executive copies of all notices, minutes, consents, and other materials
that it provides to its Directors at the same time and in the same manner as provided to such other Directors; provided,
however, that Executive shall be subject to the confidentiality provisions of this Employment Agreement and otherwise agree
to hold in confidence and trust with respect to all information so provided; and provided further, that the Company reserves
the right to withhold any information and to exclude Executive from any meeting or portion thereof if access to such information
or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result
in disclosure of trade secrets or a conflict of interest.

 

2. Term
of Employment. The term of this Employment Agreement (the “Term”) shall be for the initial period commencing
on the date hereof and ending on the first anniversary of the date hereof, unless the Executive is earlier terminated as provided
in Section 4 hereof. The Term shall be automatically extended for successive one-year periods unless either party provides the
other with written notice of non-renewal at least thirty (30) days prior to the end of the initial Term or any renewal Term.

 

     

     

    

 

3. Compensation.
As full compensation for all services to be rendered by the Executive to the Company and/or its affiliates in all capacities during
the Term, the Executive shall receive the following compensation and benefits:

 

(a) Salary.
An annual base salary of $400,000 (the “Base Salary”) payable not less frequently than monthly or at more frequent
intervals in accordance with the then customary payroll practices of the Company.

 

(b) Participation
in Employee Benefit Plans; Other Benefits. The Executive shall be permitted during the Term, if and to the extent eligible,
to participate in all employee benefit plans, policies and practices now or hereafter maintained by or on behalf of the Company
commensurate with the Executive’s position with the Company. Nothing in this Employment Agreement shall preclude the Company
from terminating or amending any such plans or coverage so as to eliminate, reduce or otherwise change any benefit payable thereunder,
so long as such change similarly affects all Company employees. Notwithstanding anything herein to the contrary, Executive shall
receive health, medical, dental and visions insurance equal to or greater than that which 1847 Goedeker Inc., the Company’s
parent company, provides to its senior management executives. For the avoidance of doubt, annexed hereto as Exhibit A is a Benefits
Overview containing specific benefit plan information applicable to Executive.

 

(c) Expenses.
The Company shall pay or reimburse the Executive for all reasonable and necessary expenses actually incurred or paid by the Executive
during the Term in the performance of the Executive’s duties under this Employment Agreement, upon submission and approval
of expense statements, vouchers or other supporting information in accordance with the then customary practices of the Company.

 

(d) Vacation.
The Executive shall be entitled to four weeks of paid vacation per year.

 

(e) Withholding
of Taxes. The Company may withhold from any benefits payable under this Employment Agreement all federal, state, city and
other taxes as shall be required pursuant to any law or governmental regulation or ruling.

 

(f) Bonus.
In addition to the Base Salary, the Executive shall be entitled to an annual incentive bonus to the extent the Company achieves
or exceeds the annual EBITDA objectives of the Company which shall be established by the Board of Directors of the Company promptly
following the date of this Agreement. The percentage of Base Salary which the Executive shall be entitled to receive as a bonus
is set forth on Exhibit B hereto next to the corresponding percentage of budgeted EBITDA of the Company which must be achieved
in order to earn such bonus level. Any such bonus shall be payable within 30 days following delivery of the Company’s audited
financial statements for the applicable year no later than April 30. For purposes of this Section 3(f), EBITDA of Company for
any period shall mean the sum of the Company’s net earnings (or loss) before interest expense, income taxes, depreciation
and amortization for said period (but excluding any extraordinary gains for such period), as determined in accordance with generally
accepted accounting principles applied on a consistent basis.

 

    	 	2	 

     

    

 

4. Termination.

 

(a) Termination
upon Death. If the Executive dies during the Term, this Employment Agreement shall terminate as of the date of his death.

 

(b)
 Termination upon Disability. If during the Term the Executive becomes unable,
due to a physical or mental impairment to perform the essential functions of Executive’s job, with or without a reasonable
accommodation, for a period of 180 days during any twelve-month period. Any question as to the existence of the Executive’s
disability as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician
mutually acceptable to the Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination
in writing. The determination of disability made in writing to the Company and the Executive shall be deemed final for purposes
of this Agreement. Upon a determination of disability, the Company may, by written notice to the Executive, terminate this Employment
Agreement, in which event the Term shall terminate 10 days after the date upon which the Company shall have given notice to the
Executive of its intention to terminate this Employment Agreement because of the disability.

 

(c) Termination
for Cause. The Company may at any time by written notice to the Executive terminate this Employment Agreement immediately
and, except as provided in Section 5(b) hereof, the Executive shall have no right to receive any compensation or benefit hereunder
on and after the date of such notice, in the event that an event of “Cause” occurs. For purposes of this Employment
Agreement “Cause” shall mean:

 

(i)
the Executive’s willful failure to perform Executive’s duties hereunder other than a failure to perform resulting
from death or physical or mental disability) and failure by the Executive to cure such breach within thirty (30) days of written
notice thereof from the Company;

 

(ii)
the commission by the Executive of fraud or intentional material misrepresentation in connection with his employment, including,
but not limited to, misappropriation or embezzlement of any funds of the Company or any of its affiliates;

 

(iii)
 the commission by the Executive of any willful misconduct having the effect of materially
injuring the reputation, business or business relationships of the Company or any of its affiliates;

 

(iv)
the entering by the Executive of a plea of guilty or nolo contendere to, or the conviction of the Executive for, a crime involving
the unlawful theft or conversion of monies or other property, or any fraud or embezzlement offense which carries a potential penalty
of imprisonment for more than ninety (90) days and/or a fine in excess of Ten Thousand US Dollars ($10,000);

 

    	 	3	 

     

    

 

(v)
 the Executive’s consistent abuse of alcohol, prescription drugs or controlled
substances, which interferes with the performance of his duties to the Company and which continues after the Company has provided
the Executive at least thirty (30) days’ prior written notice thereof;

 

(vi)
 the Executive’s willful disregard of any material rule or policy of the Company
and failure to cure the same within thirty (30) days of written notice thereof from the Company; or

 

(vii)
 excessive absenteeism of the Executive other than for reasons of illness that has not
been cured, after at least thirty (30) days’ written notice from the Company with respect thereto.

 

For
purposes of this provision, no act or failure to act on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action
or omission was in the best interests of the Company. Any act, or failure to act, based on authority given pursuant to a resolution
duly adopted by the Board or on the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interests of the Company.

 

Except
for a failure, breach, or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have ten
(10) business days from the delivery of written notice by the Company within which to cure any acts constituting Cause; provided
however, that, if the Company reasonably expects irreparable injury from a delay of ten (10) business days, the Company may give
the Executive notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the
termination of the Executive’s employment without notice and with immediate effect.

 

(d) Termination
without Cause. The Company may terminate this Employment Agreement at any time, without cause, upon 30 days’ written
notice by the Company to the Executive and, except as (i) provided in Section 5(a) hereof; (ii) the payment of any accrued but
unpaid Base Salary, unused vacation, reimbursement for unreimbursed expenses; (iii) all previously earned, accrued, and unpaid
benefits from the Company and its employee benefit plans, including any such benefits under the Company’s pension, disability,
and life insurance plans, policies, and programs; and (iii) so long as the Company has achieved its budgeted EBITDA level for
the period commencing with the end of the Company’s immediately previous fiscal year through the Termination Date, an amount
equal to the product of the bonus paid to the Executive in respect of the immediately preceding fiscal year pursuant to Section
3(g), times the quotient obtained by dividing (x) the number of full calendar months occurring since the end of the immediately
previous fiscal year through the Termination Date, by (y) 12, the Executive shall have no right to receive any compensation or
benefit hereunder after such termination. The amounts set for in this subsection (d)(ii) through (iii) shall be referred to herein
collectively as the “Accrued Amounts.” The Company’s non-renewal of the Term shall be deemed a Termination
without Cause.

 

(e) Resignation
for Good Reason. Executive may termination this Employment Agreement at any time, for Good Reason (as defined below), upon
30 days’ written notice by the Executive to the Company and, except as provided in Section 5(a) hereof and the Accrued Amounts.
The Executive’s non-renewal of the Term for Good Reason shall be deemed a resignation for Good Reason. For purposes of this
Agreement, “Good Reason” shall mean:

 

    	 	4	 

     

    

 

(a) a
reduction in the Executive’s Base Salary;

 

(b) a
reduction in the Executive’s Bonus opportunity;

 

(c) a
relocation of the Executive’s principal place of employment by more than twenty five (25) miles;

 

(d) any
breach by the Company of any material provision of this Agreement or any provision of any other agreement between the Executive
and the Company;

 

(e) the
Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except
where such assumption occurs by operation of law;

 

(f) an
adverse change in the Executive’s title, authority, duties, or responsibilities (other than temporarily while the Executive
is physically or mentally incapacitated or as required by applicable law); and

 

(g) an
adverse change in the reporting structure applicable to the Executive.

 

The
Executive cannot terminate employment for Good Reason unless the Executive has provided written notice to the Company of the existence
of the circumstances providing grounds for termination for Good Reason and the Company has had at least ten (10) business days
from the date on which such notice is provided to cure such circumstances.

 

5. Severance
Payments.

 

(a) Certain
Severance Payments. If during the Term the Company terminates this Employment Agreement pursuant to Section 4(d) hereof, or
the Executive terminates this Employment Agreement pursuant to Section 4(e) hereof, all compensation payable to the Executive
under Section 3 hereof shall cease as of the date of termination specified in the Company’s notice (the “Termination
Date”), and the Company shall in addition to paying the Accrued Amounts, pay to the Executive, subject to Section 6
hereof, the following sums: (i) the Base Salary on the Termination Date for the greater of (x) six months and (y) the remainder
of the Term (the applicable period being referred to as the “Severance Period”), payable in monthly installments;
If, prior to the date on which the Company’s obligations under clause (i) of this Section 5(a) cease, the Executive violates
Section 6 hereof, then the Company shall have no obligation to make any of the payments that remain payable by the Company under
this section on or after the date of such violation. The payment of severance as required by this Section 5(a) may be conditioned
by the Company on the delivery by the Executive of a release of and all claims that the Executive may have against the Company
which release shall be in form and substance satisfactory to the Company.

 

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(b) Severance
Payments upon Termination for Cause, Death or Disability. If this Employment Agreement is terminated by the Company pursuant
to Sections 4(a), 4(b) or 4(c) hereof, the Executive (or his estate or representative as applicable) shall receive only the amounts
specified in clause (ii), (iii) and (iv) of Section 5(a) hereof.

 

6. Certain
Covenants of the Executive.

 

(a) Covenants
Against Competition. The Executive acknowledges that: (i) he is one of the limited number of persons who will assist with
developing the current business of the Company, which involves the wholesale and retail sale of home goods and appliances (the
“Company’s Current Lines of Business”); (ii) the Company and its affiliates conduct business nationwide;
(iii) his work for the Company will bring him into close contact with many confidential affairs not readily available to the public;
and (iv) the covenants contained in this Section 6 will not involve a substantial hardship upon his future livelihood. In order
to induce the Company to enter into this Employment Agreement, the Executive covenants and agrees that:

 

(i)
 Non-Compete. During the Term and for the Severance Period (the “Restricted
Period”), the Executive shall not, in those states in the United States of America in which either the Company or any
of its Subsidiaries or affiliates then operates within the Company’s Current Lines of Business, directly or indirectly,
(i) in any manner whatsoever engage in any capacity with any business that is competitive with the Company’s Current Lines
of Business for the Executive’s own benefit or for the benefit of any person or entity other than the Company or affiliate
of the Company; or (ii) have any interest as owner, sole proprietor, shareholder, partner, lender, director, officer, manager,
employee, consultant, agent or otherwise in any business that operates within the Company’s Current Lines of Business; provided,
however, that the Executive may hold, directly or indirectly, solely as an investment, not more than two percent (2%) of
the outstanding securities of any person or entity which are listed on any national securities exchange or regularly traded in
the over-the-counter market notwithstanding the fact that such person or entity is engaged in a business competitive with the
Company’s Current Lines of Business. In addition, during the Restricted Period, the Executive shall not develop any property
for use in the Company’s Current Lines of Business on behalf of any person or entity other than the Company, its Subsidiaries
and affiliates.

 

(ii)
 Confidential Information. The Executive understands that during the Term, the
Executive will have access to and learn about Confidential Information, which includes information not generally known to the
public, in spoken, printed, electronic, or any other form or medium relating directly to account information, pricing policies,
customer lists, computer software and hardware, or any other written materials relating to the Company’s business or the
customers of the Company or any affiliate of the Company or any trade secrets or confidential information, including, without
limitation, any business or operational methods, drawings, sketches, designs or product concepts, know-how, marketing plans or
strategies, product development techniques or plans, business acquisition plans, financial or other performance data, personnel
and other policies of the Company or any affiliate of the Company, whether generated by the Executive or by any other person,
except as required in the course of performing his duties hereunder or with the express written consent of the Company; provided,
however, that the confidential information shall not include any information readily ascertainable from public or published
information, or trade sources or independent third parties (other than as a direct or indirect result of unauthorized disclosure
by the Executive).

 

    	 	6	 

     

    

 

(iii)
Employees of and Consultants to the Company. During the Restricted Period, the Executive shall not, directly or indirectly
(other than in furtherance of the business of the Company), initiate communications with, solicit, persuade, entice, induce or
encourage any individual who is then or who has been within the preceding 12-month period, an employee of or consultant to the
Company or any of its affiliates to terminate employment with, or a consulting relationship with, the Company or such affiliate,
as the case may be, or to become employed by or enter into a contract or other agreement with any other person, and the Executive
shall not approach any such employee or consultant for any such purpose or authorize or knowingly approve the taking of any such
actions by any other person.

 

(iv)
Solicitation of Customers. During the Restricted Period, the Executive shall not, knowingly directly or indirectly, initiate
communications with, solicit, persuade, entice, induce, encourage (or assist in connection with any of the foregoing) any person
who is then or has been within the preceding 12-month period a customer or account of the Company or its affiliates, or any actual
customer leads whose identity the Executive learned during the course of his employment with the Company, to terminate or to adversely
alter its contractual or other relationship with the Company or its affiliates.

 

(b) Rights
and Remedies Upon Breach. If the Executive breaches any of the provisions of Section 6(a) hereof (collectively, the “Restrictive
Covenants”), the Company and its affiliates shall, in addition to the rights set forth in Section 5(a) hereof, have
the right and remedy to seek from any court of competent jurisdiction specific performance of the Restrictive Covenants or injunctive
relief against any act which would violate any of the Restrictive Covenants, it being acknowledged and agreed that any such breach
may cause irreparable injury to the Company and its affiliates and that money damages will not provide an adequate remedy to the
Company and its affiliates.

 

(c) Severability
of Covenants. If any of the Restrictive Covenants, or any part thereof, is held by a court of competent jurisdiction or any
foreign, federal, state, county or local government or other governmental, regulatory or administrative agency or authority to
be invalid, void, unenforceable or against public policy for any reason, the remainder of the Restrictive Covenants shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and such court, government, agency or authority
shall be empowered to substitute, to the extent enforceable, provisions similar thereto or other provisions so as to provide to
the Company and its affiliates, to the fullest extent permitted by applicable law, the benefits intended by such provisions.

 

(d) Enforceability
in Jurisdictions. The parties intend to and hereby confer jurisdiction to enforce the Restrictive Covenants upon the courts
of any jurisdiction within the geographical scope of such Covenants and only in such jurisdiction where the Executive’s
alleged violation of the Restrictive Covenants occurred. If the courts of any one or more of such jurisdictions hold the Restrictive
Covenants wholly invalid or unenforceable by reason of the breadth of such scope or otherwise, it is the intention of the parties
that such determination not bar or in any way affect the Company’s right to the relief provided above in the courts of any
other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in
such other respective jurisdictions, such Restrictive Covenants as they relate to each jurisdiction being, for this purpose, severable
into diverse and independent covenants.

 

    	 	7	 

     

    

 

7. Other
Provisions.

 

(a) Notices.
Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally,
telecopied, telegraphed or telexed, or sent by certified, registered or express mail, postage prepaid, to the parties at the addresses
specified on the signature page hereto, or at such other addresses as shall be specified by the parties by like notice, and shall
be deemed given so long as such provides a receipt of delivery, when so delivered personally, telecopied, telegraphed or telexed,
or mailed.

 

(b) Entire
Agreement. This Employment Agreement contains the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior contracts and other agreements, written or oral, with respect thereto.

 

(c) Waivers
and Amendments. This Employment Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms
and conditions hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party
waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial
exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder.

 

(d) Governing
Law. This Employment Agreement shall be governed by, and construed in accordance with and subject to, the laws of the State
of New York applicable to agreements made and to be performed entirely within such state.

 

(e) Binding
Effect; Benefit. This Employment Agreement shall inure to the benefit of and be binding upon the parties hereto and any successors
and assigns permitted or required by Section 7(f) hereof. Nothing in this Employment Agreement, expressed or implied, is intended
to confer on any person other than the parties hereto or such successors and assigns, any rights, remedies, obligations or liabilities
under or by reason of this Employment Agreement.

 

(f) Assignment.
This Employment Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive. The
Company may assign this Employment Agreement and its rights, together with its obligations, hereunder in connection with any sale,
transfer or other disposition of all or substantially all of its assets or business, whether by merger, consolidation or otherwise.

 

(g) Counterparts.
This Employment Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

(h) Headings.
The headings in this Employment Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation
of this Employment Agreement.

 

[Signature
page follows]

 

    	 	8	 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first above written.

 

	 	APPLIANCES
    CONNECTION INC.
	 	 
	 	By:	 
	 	Name:
    	Douglas
    T. Moore
	 	Title:
    	Chief
    Executive Officer
	 	 
	 	Address:	 
	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	Name:
    	Elie
    Fouerti
	 	 
	 	Address:	 
	 	 
	 	 

 

    	 	9	 

     

    

 

Exhibit
A

 

Benefits
Overview

 

		1.	Goedeker
                                         401(k) Plan

		●	Eligible
                                         to all full-time employees after one-year of service

		●	Company
                                         will match 1% of employee 5% contribution

 

		2.	See
                                         attached for summary of benefits under Health, Life and Disability, Dental, Vision and
                                         Critical Illness and Accident policies

 

     

     

    

 

Exhibit
B

 

Bonus
Criteria

 

	%
    of Budgeted Company EBITDA	 	Bonus
                                         as a
%
    of Base Salary
	 	 	 
	 	125%	 	 	 	100%	 
	 	120%	 	 	 	95%	 
	 	115%	 	 	 	90%	 
	 	110%	 	 	 	85%	 
	 	105%	 	 	 	80%	 
	 	100%	 	 	 	75%	 
	 	95%	 	 	 	80%	 
	 	90%	 	 	 	65%	 
	 	<90%	 	 	 	0%Exhibit 10.31

 

AMENDMENT NO. 1 

TO 

1847 GOEDEKER INC.

2020 EQUITY INCENTIVE PLAN

 

The 1847 Goedeker Inc. 2020 Equity Incentive Plan (the “Plan”)
is hereby amended as follows:

 

Section 4.1 of the Plan is hereby amended in its entirety to read as
follows:

 

“4.1
Subject to adjustment in accordance with Section
11, a total of 1,000,000 shares of Common Stock shall be available for the grant of Awards under
the Plan. Any shares of Common Stock granted in connection with Options and Stock Appreciation Rights shall be counted against this limit
as one (1) share for every one (1) Option or Stock Appreciation Right awarded. Any shares of Common Stock granted in connection with
Awards other than Options and Stock Appreciation Rights shall be counted against this limit as two (2) shares of Common Stock for every
one (1) share of Common Stock granted in connection with such Award. During the terms of the Awards, the Company shall keep available
at all times the number of shares of Common Stock required to satisfy such Awards.”

 

Except as herein amended, the provisions of the Plan shall remain in
full force and effect.

 

As adopted by the Board of Directors
on April 9, 2021.

 

As approved by stockholders
effective as of May 13, 2021.

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