Document:

srer_ex102.htm

EXHIBIT 10.2

 

First Amendment to Management Agreement

This First Amendment to Management Agreement is dated January 27, 2014 and is entered into by and between SearchCore, Inc. (“SC”) and Tattoo Interactive, LLC (“TI”).

 

RECITALS

 

WHEREAS, SC and TI are parties to that certain Management Agreement dated January 21, 2013 (the “Management Agreement”);

 

WHEREAS, both SC and TI wish to amend the Management Agreement in certain respects as provided below.

 

AGREEMENT

 

1. The Management Agreement is amended as follows:

 

A. Section 5A of the Management Agreement is amended and restated in its entirety as follows:

 

“A. Commencing January 1, 2014, TI shall have no further obligations to reimburse SearchCore for any expenses or costs related to the Management Services, of any kind or nature.”

 

B. Section 6 of the Management Agreement is amended and restated in its entirety as follows:

 

“6. Term and Termination.”

A. The initial term of this Agreement shall be from the Effective Date until April 30, 2014 (the “Initial Term”). After the Initial Term, this Agreement shall be subject to renewal as follows, unless terminated in accordance with the provisions of Sections 6B or Section 6C below. The Initial Term may only be extended by a separate written agreement executed by the Parties (if so extended, the “Extended Initial Term”). If the Parties do not so extend the Initial Term, this Agreement shall terminate on the close of business on April 30, 2014 without the need for further notice or action by TI. If the Parties agree to the Extended Initial Term, this Agreement shall thereafter automatically renew for successive one (1) year terms (each, a “Renewal Term”).

 

B. This Agreement may be terminated by either Party at any time if:

	
i.

	
the other Party materially breaches any its obligations under this Agreement and fails to cure such breach (if the breach is reasonably susceptible to cure) to the reasonable satisfaction of the non-breaching Party within thirty (30) days of its receipt of notice thereof from the non-breaching Party; or

  

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ii.

	

the other Party becomes the subject of any voluntary or involuntary proceeding in bankruptcy, liquidation, dissolution, receivership, attachment, or assignment or composition for the benefit of creditors.

 

C. This Agreement may be terminated by TI or SearchCore during the sixty (60) day period following the Extended Initial Term or any Renewal Term if the applicable Annual Designated Gross Revenue goal set forth in Exhibit A for the prior one (1) year term has not been met. Notwithstanding the foregoing, if SearchCore fails to meet the Annual Designated Gross Revenue goal set forth on Exhibit A for the Extended Initial Term or any Renewal Term, SearchCore shall have the right to continue the term of this Agreement by paying to TI, within sixty (60) days of the end of the Extended Initial Term or any Renewal Term, as applicable, an amount in cash equal to the difference between the Annual Designated Revenue Goal and the actual advertising revenue. In the event of a termination by SearchCore pursuant to this subsection, SearchCore agrees that, for a period of one (1) year following the date of termination, it will not engage in the marketing and promotion of any tattoo related websites.”

 

C. Section 7 is amended by the addition of a new Section 7D as follows:

 

“D. Notwithstanding the foregoing, SearchCore will pay not less that the following minimum payments to TI for the following periods:

 

	
Minimum Payment Due to TI

	
Period

	
$15,000

	
For each of February, March and April of 2014

	
$25,000

	
For each month during the Extended Initial Term

 

D. Section 11 of the Management Agreement is amended by the addition of the following sentence at the end of that Section:

 

“For the avoidance of doubt, SearchCore shall not be eligible to receive the equity compensation set forth on Exhibit B by reason of making any payments under Section 6C to continue or avoid termination of this Agreement by TI.”

 

E. Exhibit A to the Management Agreement is hereby replaced in its entirety by Exhibit A, attached hereto.

 

  

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F. Exhibit B to the Management Agreement is hereby replaced in its entirety by Exhibit B, attached hereto.

 

2. Other than as amended herein, all other terms and provisions in the Management Agreement shall remain in full force and effect in accordance with their terms.

 

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

 

 

	 “SearchCore”	 	 	 “TI”	 
	SearchCore, Inc.,	 	 	Tattoo Interactive, LLC	 
	a Nevada corporation	 	 	a California limited liability company	 
	 	 	 	 	 
	
/s/ James Pakulis

	 	 	
/s/ Jonathan Kaye

	 
	
By: James Pakulis

	 	 	
By: Jonathan Kaye

	 
	
Its: President and Chief Executive Officer

	 	 	
Its: Member

	 

 

  

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Exhibit A

Revenue Benchmarks

 

	
Extended Initial Term or Renewal Term

	 	
Annual Designated Gross Revenue

	 
	
Period commencing on January 21, 2014 and ending January 20, 2015

	 	$	807,887	 
	
Each Renewal Term thereafter

	 	$	2,797,814	 

 

 

  

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Exhibit B

Equity Ownership

 

	
Equity Earnings Benchmarks

	 	 	 
	
Year: January 21, 2014 – January 20, 2015

	 	 	 
	
Advertising Revenue for 5% Equity Stake

	 	$	1,009,858.78	 
	
Advertising Revenue for 10% Equity Stake

	 	$	1,346,478.38	 
	
Advertising Revenue for 15% Equity Stake

	 	$	1,683,097.97	 
	 	 	 	 	 
	
Year 2: First Renewal Term

	 	 	 	 
	
Advertising Revenue for 5% Equity Stake

	 	$	3,497,267.81	 
	
Advertising Revenue 10% Equity Stake

	 	$	4,663,023.75	 
	
Advertising Revenue for 15% Equity Stake

	 	$	5,828,779.69	 
	 	 	 	 	 
	
Per Renewal Term until Equity Cap 50%

	 	 	 	 
	
Advertising Revenue for 5% Equity Stake

	 	$	3,497,267.81	 
	
Advertising Revenue for 10% Equity Stake

	 	$	4,663,023.75	 
	
Advertising Revenue 15% Equity Stake

	 	$	5,828,779.69	 

 

 

 

 

 

 

Page 5 of 5one847holdings_ex101.htm

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EXHIBIT 10.2

 

1847 PARTNERS LLC

590 Madison Avenue, 18th Floor

New York, NY 10022

September 15, 2013

Mr. Ellery Roberts

Chief Executive Officer

And The Board of Directors

1847 Holdings LLC

590 Madison Avenue, 18th Floor

New York, NY 10022

 

	
Re:

	
Amendment to Management Services Agreement dated April 15, 2013 (the “MSA”), between 1847 Holdings LLC (“Holdings”) and 1847 Partners LLC (“Partners”).

 

Gentlemen,

As per our discussion, this letter amends the MSA as set forth below. Capitalized terms used, but not otherwise defined, herein have the meanings ascribed to them in the Agreement.

Holdings shall not pay to Partners the management fee specified in Section 7.1 of the MSA with respect to the business of 1847 Management Services, Inc. and its subsidiaries PPI Management Group, LLC and Christals Management LLC (collectively, “1847 Management”). In lieu of paying Partners such management fee, 1847 Management shall pay Partners directly a flat quarterly fee equal to $43,750 so long as Partners provides the Services to Holdings with respect to 1847 Management. Holdings shall be required to pay the management fee set forth in Section 7.1 of the MSA in connection with all other Services provided to Holdings other than to 1847 Management.

Except as modified by this letter, the Agreement remains unmodified and in full force and effect.

 

	 	Sincerely,	 
	 	 	 
	 	Ellery W. Roberts	 
	 	Chief Executive Officer	 

 

ACCEPTED AND AGREED TO AS OF THE DATE FIRST ABOVE WRITTEN:

 

	1847 HOLDINGS LLC	 	1847 Management Services, Inc.	 
	 	 	 	 	 	 
	By:	
/s/ Ellery W. Roberts

	 	By: 	
/s/ Ellery W. Roberts

	 
	 	
Ellery W. Roberts, Manager

	 	 	
Ellery W. Roberts, Presidentone847holdings_ex103.htm

EXHIBIT 10.3

 

SECURITIES PURCHASE AGREEMENT

 

SECURITIES PURCHASE AGREEMENT, dated as of September 15, 2013 (this “Agreement”), by and between ELLERY W. ROBERTS, having the address specified on the signature page hereto (the “Seller”), 1847 HOLDINGS LLC, a Delaware limited liability company, having an office at the address specified on the signature page hereto (the “1847 Holdings”), and 1847 Management Services, Inc., a Delaware corporation, having an office at the address specified on the signature page hereto (“1847 Management” and together with 1847 Holdings, the “Buyers”). The Seller, 1847 Holdings and 1847 Management are each referred to herein as a “Party” and collectively, as the “Parties”.

BACKGROUND

 

The Seller intends to sell, and the Buyers intend to purchase, the amount and type of securities (collectively, the “Securities”) of PPI Management Group, LLC, a Delaware limited liability company (“PPI Management”), and Christals Management, LLC, a Delaware limited liability company (“Christals Management”), as set forth on Schedule A hereto.

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained, the Seller and the Buyers hereby agree as follows:

1.      Purchase and Sale. The Seller shall sell, transfer, convey and deliver unto 1847 Management the Securities, and 1847 Management shall acquire and purchase from the Seller the Securities. The Seller hereby expressly grants to 1847 Management the right to become a substituted Member as and to the extent required under the applicable limited liability company operating agreement of PPI Management and Christals Management.

2.      Purchase Price. The purchase price (the "Purchase Price") for the Securities, in the aggregate, is the number of Common Shares of 1847 Holdings that is set forth on Schedule A (the “Common Shares”) and it is payable at Closing (defined below). The Common Shares shall be fully paid at the Closing and shall be validly issued and nonassessable.

3.      The Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place by exchange of signature pages by the Parties by electronic mail, fax or courier, as appropriate, on the date hereof.

4.      Representations and Warranties of the Seller. The Seller represents and warrants to the Buyers as follows:

(a) The Seller has the power and authority to execute, deliver and perform its obligations under this Agreement and to sell, assign, transfer and deliver to 1847 Management the Securities as contemplated hereby. No permit, consent, approval or authorization of, or declaration, filing or registration with any governmental or regulatory authority or consent of any third party is required in connection with the execution and delivery by any Seller of this Agreement and the consummation of the transactions contemplated hereby except for consents and approvals which have already been obtained.

  

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(b) Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby or compliance with the terms and conditions hereof by the Seller, will violate or result in a breach of any term or provision of any agreement to which the Seller is bound or is a party, or be in conflict with or constitute a default under, or cause the acceleration of the maturity of any obligation of the Seller under any existing agreement or violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Seller or any properties or assets of the Seller.

(c) This Agreement has been duly and validly executed by the Seller, and constitutes the valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally or by limitations, on the availability of equitable remedies.

(d) The Seller owns the Securities free and clear of all liens, charges, security interests, encumbrances, claims of others, options, warrants, purchase rights, contracts, commitments, equities or other claims or demands of any kind (collectively, “Liens”), and upon delivery of the Securities to 1847 Management, 1847 Management will acquire good and valid title thereto free and clear of all Liens. No Seller is a party to any option, warrant, purchase right, or other contract or commitment that could require such Seller to sell, transfer, or otherwise dispose of any capital stock or other securities of either PPI Management or Christals Management. The Seller is not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any securities of PPI Management or Christals Management.

5.      Representations and Warranties of the Buyers. The Buyers represent and warrant to the Seller as follows:

(a) The Buyers have full power and authority to enter into this Agreement and to carry out the transactions contemplated hereby. This Agreement constitutes a valid and binding obligation of the Buyers enforceable in accordance with its terms, except as (i) the enforceability hereof may be limited by bankruptcy, insolvency or similar laws affecting the enforceability of creditor's rights generally and (ii) the availability of equitable remedies may be limited by equitable principles of general applicability.

(b) Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby or compliance with the terms and conditions hereof by the Buyers, will violate or result in a breach of any term or provision of any agreement to which any of the Buyers is bound or is a party, or be in conflict with or constitute a default under, or cause the acceleration of the maturity of any obligation of any of the Buyers under any existing agreement or violate any order, writ, injunction, decree, statute, rule or regulation applicable to any of the Buyers or any properties or assets of any of the Buyers.

  

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(c) 1847 Management is acquiring the Securities for its own account for investment and not for the account of any other person and not with a view to or for distribution, assignment or resale in connection with any distribution within the meaning of the Securities Act of 1933. The Buyers agree not to sell or otherwise transfer the Securities unless they are registered under applicable federal and state securities laws, or an exemption or exemptions from such registration are available. The Buyers have knowledge and experience in financial and business matters such that they are capable of evaluating the merits and risks of acquiring the Securities.

(d) No permit, consent, approval or authorization of, or declaration, filing or registration with any governmental or regulatory authority or the consent of any third party is required in connection with the execution and delivery by the Buyers of this Agreement and the consummation of the transactions contemplated hereby.

6.      Brokers and Finders. Each of the Parties represents to the other Parties that there are no finders or brokers involved in the transactions contemplated hereby and no Party hereto shall be responsible for the payment of any finders’ fees, brokerage fees or similar fees in connection with the transactions contemplated hereby.

7.      Post-Closing Covenants. The Parties agree that if at any time after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request, all at the sole cost and expense of the requesting Party.

8.      Miscellaneous.

(a) Facsimile Execution and Delivery. Facsimile execution and delivery of this Agreement is legal, valid and binding execution and delivery for all purposes.

(b) No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person other than the Parties and their respective successors and permitted assigns.

(c) Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they related in any way to the subject matter hereof.

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

(e) Headings. The Section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

 

  

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(f) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws.

(g) Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Buyers and the Seller or their respective representatives. No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

(h) Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

(i) Expenses. Each of the Parties will bear his or its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

(j) Specific Performance. Each Party acknowledges and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each Party agrees that the other Party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction over the Parties and the matter, in addition to any other remedy to which they may be entitled, at law or in equity.

[Signature page follows]

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized representatives as of the date first written above.

 

	SELLER	 	 	 
	 	 	 	 
	/s/ Ellery W. Roberts	 	 	 
	Name: Ellery W. Roberts	 	 	 
	 	 	 	 	 
	Address:	
17025 NW 20th Street

	 	 	 
	 	Pembroke Pines, FL 33028	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	BUYERS	 	 	 
	 	 	 	 	 
	1847 HOLDINGS LLC	 	 	 
	 	 	 	 	 
	By: 	/s/ Ellery W. Roberts	 	 	 
	Name: 	Ellery W. Roberts	 	 	 
	Title:	Chief Executive Officer	 	 	 
	 	 	 	 	 
	Address: 	
590 Madison Avenue, 18th Floor

	 	 	 
	 	New York, NY 10022	 	 	 
	 	 	 	 	 
	1847 MANAGEMENT SERVICES, INC.	 	 	 
	 	 	 	 	 
	By:	/s/ Ellery W. Roberts	 	 	 
	Name:	Ellery W. Roberts	 	 	 
	Title: 	Chief Executive Officer	 	 	 
	 	 	 	 	 
	Address: 	590 Madison Avenue, 18th Floor 

New York, NY 10022

	 	 	 

 

  

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SCHEDULE A

SELLERS AND SECURITIES

 

	
Description of Security being Sold

	
Purchase Price

	  	  
	
50% of the outstanding limited liability company interests in Christals Management

	
437,500 Common Shares of 1847 Holdings

	  	  
	
500 Units of PPI Management constituting 50% of the outstanding limited liability company interests of PPI Management

	
437,500 Common Shares of 1847 Holdings

	  	  
	  	
TOTAL: 875,000 Common Shares of 1847 Holdings

 

 

 

 

 

 

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