Document:

srer_ex1012.htm

EXHIBIT 10.12

 

TERMINATION AND MUTUAL RELEASE AGREEMENT

This Termination and Mutual Release Agreement (the “Agreement”) is entered into on May 19, 2014, with an effective date as of April 15, 2014, and is by and between SearchCore, Inc. (“Company”) and Brad W. Nelms (“Employee”). The Company and Employee may be referred to jointly as the “Parties” or individually as a “Party”.

RECITALS

WHEREAS, Employee is employed by the Company as the Chief Strategy Officer pursuant to that certain Employment Agreement, dated August 3, 2012 (the “Employment Agreement”);

WHEREAS, the Parties now desire to terminate the Employment Agreement and release each other from any and all claims that they may have arising under or in connection with the Employment Agreement;

WHEREAS, in connection with and in consideration for terminating the Employment Agreement and entering into the releases set forth below, the Company and Employee have entered into an agreement whereby the Company will sell domain names and software related to Manufacturedhomes.com to Employee (the “Purchase Agreement”).

NOW THEREFORE, in consideration of the conditions, covenants and agreements set forth below, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Company and Employee agree as follows:

AGREEMENT

1. Termination of Employment Agreement. The Employment Agreement is hereby terminated and of no further force or effect. Sections 7.5 and 7.7 of the Employment Agreement, regarding termination without cause and payments upon termination without cause or with good reason, are specifically waived by the Parties.

2. Termination of Employee. The Parties agree that Employee’s employment with the Company terminated as of the close of business on April 15, 2014 (the “Termination Date”).

 

  

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3. Consideration. The Parties acknowledge and agree sufficient and adequate consideration is received including:

	
a.  

	
Mutual Releases: In full and final settlement of any known or unknown claims, each Party to this Agreement releases all known and unknown claims as set forth below.

	
b.  

	
Purchase Agreement. In connection with and in consideration for terminating the Employment Agreement and entering into the releases set forth below, the Company shall enter into the sale of assets of the Company, pursuant to the Purchase Agreement.

 

4. Payment of Compensation. Employee acknowledges and represents that the Company has paid all salary, wages, bonuses, and any and all other benefits and any compensation due and owing to him by the Company as of and on the date of his termination, the receipt and sufficiency of which is acknowledged by Employee’s execution of this Agreement.

 

5. Waiver and Release. In exchange for this Agreement and in consideration of the sale of the assets of the Company pursuant to the Purchase Agreement described above, which is in addition to anything of value to which Employee already is entitled, he hereby irrevocably and unconditionally releases, waives, acquits, and forever discharges the Company, and each and all of its officers, agents, shareholders, supervisors, employees, representatives, affiliates, related corporations, and their successors and assigns, and all persons acting by, through, under, or in concert with any of them, from any and all charges, demands, damages, losses, costs, expenses, actions, causes of action, rights, benefits, complaints, indebtedness, judgments, liens, claims and liabilities of any kind or nature, in law or in equity, known or unknown, past or present, contingent or existing (hereinafter referred to individually as a “claim” and collectively as “claims”) that Employee at any time before this date had or claimed to have, or that he may have or claim to have, regarding events that have occurred before the date of this Agreement, including, without limitation, any and all claims arising from or relating to Employee’s employment by the Company or separation from employment. Employee understands that this means he is releasing the Company from any and all matters asserted, or which could have been asserted, in any lawsuit, or in any other state or federal judicial or administrative forum, up to the date of this Agreement, including but not limited to claims under the Fair Labor Standards Act, the National Labor Relations Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the California Labor Code and/or any other relevant statutes or municipal ordinances, the California Fair Employment and Housing Act (inclusive of the California Family Rights Act), any other state civil rights act, any claims based upon tort or contract arising from the common law of California, or any other state including claims for wrongful discharge or termination, breach of express or implied contract, and any other legal or equitable claim of any type whatsoever.

 

This release does not preclude an action to enforce the specific terms of this Agreement. It does not preclude claims under any applicable workers’ compensation statute that have already been filed or for on-the-job injuries that have already been reported.

 

  

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6. California Civil Code Section 1542 – Release of Unknown Claims. Each Party represents that they are not aware of any claims against any other Party. Each Party acknowledges that they have been advised by their own legal counsel about, and are familiar with, the provisions of California Civil Code Section 1542, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The Parties acknowledge, agree, and understand the consequences of a waiver of Section 1542 of the California Civil Code and assume full responsibility for any and all injuries, damages, losses or liabilities that may hereinafter arise out of or be related to matters released hereunder. Releasing Party understands and acknowledges that the significance and consequence of this waiver of Section 1542 of the Civil Code is that even if a Party should eventually suffer additional damages arising out of the subject matter hereof, it will not be permitted to make any claim for those damages. Furthermore, the Parties acknowledge that they intend these consequences even as to claims for damages that may exist as of the date of this Agreement but which the Parties do not know exist, and which, if known, would materially affect the Parties’ decision to execute this Agreement, regardless of whether the Parties’ lack of knowledge is the result of ignorance, oversight, error, negligence, or any other cause.

 

7. Waiver under Older Workers Benefit Protection Act. Employee acknowledges, understands, and agrees as follows:

 

	
a.  

	
He has carefully read and fully understands all of the provisions of this Agreement.

	
b.  

	
The Company provided Employee with the option of taking at least 21 days to review this Agreement.

	
c.  

	
Employee knowingly and voluntarily agrees to all of the terms set forth in this Agreement, and he intends to be legally bound by this Agreement.

	
d.  

	
Through this Agreement, Employee is releasing the Company from any and all claims, including claims under the Age Discrimination in Employment Act (“ADEA”) and all other claims described above in Paragraph 5 that he may have against the Company and the other persons described above.

	
e.  

	
He understands that rights or claims under the ADEA that may arise after the date of this Agreement are not waived.

 

  

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f.  

	
He is advised to consult with an attorney of his choice before executing this Agreement.

	
g.  

	
He, by receiving the consideration specified in Paragraph 3, is receiving valuable consideration in addition to anything to which he already is entitled.

	
h.  

	
He has been given the opportunity by the Company to consider this Agreement before signing it, and if he chooses to sign it, he does so knowingly and voluntarily.

	
i.  

	
He has seven (7) calendar days after signing this Agreement to revoke this Agreement. To be effective, revocation must be in writing and received by the Company within the 7-day period.

8. Return of Company Property. On or before Employee’s Termination Date, Employee agrees to return to the Company all files, memoranda, documents, records, copies of the foregoing, credit cards, keys, vehicles, computers, data, and any other property of the Company or its affiliates that are in his possession.

9. No Pending or Future Lawsuits. Each Party represents that they have no lawsuits, claims, or actions pending in his/its name, or on behalf of any other person or entity, against any other Party or any other person or entity referred to herein. Each Party also represents that they do not intend to bring any claims on their own behalf or on behalf of any other person or entity against any other Party, their subsidiaries, or any successor, or any other person or entity referred to herein.

10. Confidentiality. 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, the terms of this Agreement and all other documents and information concerning any other Party furnished it by such other Party or its representatives in connection with the Employee’s employment with the Company (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. Each Party shall be deemed to have satisfied its obligation to hold confidential information concerning or supplied by the other Party if it exercises the same care as it takes to preserve confidentiality for its own similar information.

11. Non-Disparagement. The Company and Employee agree that neither party will criticize, denigrate, or disparage the other party.

 

  

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12. No Admission of Liability. This Agreement pertains to the Employee’s employment with the Company and does not constitute an admission of liability by any Party for any purpose, except as otherwise provided herein.

13. Costs. Each Party shall each bear their own costs, expert fees, attorney fees and other fees incurred in connection with this Agreement.

14. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf to bind him to the terms and conditions of this Agreement. Each party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

15. No Representations. Each Party represents that it has had the opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Neither Party has relied upon any representations or statements made by the other Party hereto which are not specifically set forth in this Agreement.

16. Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision so long as the remaining provisions remain intelligible and continue to reflect the original intent of each Party to this Agreement.

17. Entire Agreement. This Agreement constitutes the entire agreement and understanding between each Party concerning the subject matter of this, and all prior representations, understandings, and agreements concerning the subject matter of this Agreement have been superseded by this Agreement.

18. No Waiver. The failure of any Party to insist upon the performance of any of the terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms and conditions of this Agreement, shall not be construed thereafter as a waiver of any such terms or conditions. This entire Agreement shall remain in full force and effect as if no such forbearance or failure of performance had occurred.

19. No Oral Modification. Any modification or amendment of this Agreement, or additional obligation assumed by either party in connection with this Agreement, shall be effective only if placed in writing and signed by each Party or by authorized representatives of each Party. No provision of this Agreement can be changed, altered, modified, or waived except by an executed writing by each Party to this Agreement.

 

  

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20. Governing Law; Jurisdiction and Venue. This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the State of California including all matters of construction, validity, performance, and enforcement and without giving effect to the principles of conflict of laws. Venue for any action brought under this Agreement shall be in the appropriate court in Orange County, California.

21. Attorney Fees. In the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing party shall be entitled to recover its reasonable attorney fees and costs incurred in connection with such an action.

22. Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

23. Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of any Party hereto, with the full intent of releasing all claims. Each Party acknowledges that:

	
a.  

	
They have read this Agreement;

	
b.  

	
They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice, or have voluntarily chosen not to seek legal representation;

	
c.  

	
They understand the terms and consequences of this Agreement and of the releases it contains; and

	
d.  

	
They are fully aware of the legal and binding effect of this Agreement.

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

 

  

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

 

 

	“Company”	“Employee”
	 	 	 	 
	SearchCore, Inc. 	Brad W. Nelms
	 	 	 	 
	 	 	 	 
	 	/s/ James Pakulis	 	/s/ Brad W. Nelms
	By: 	James Pakulis 	By:	Brad W. Nelms
	Its:	CEO	 	 

 

                                                              

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EXHIBIT 10.13

 

PLEDGE AND SECURITY AGREEMENT

 

 

This Pledge and Security Agreement (this “Agreement”) is entered into on May 19, 2014 (the “Effective Date”) by and between Platinum Technology Ventures, LLC, a Nevada limited liability company (the “Pledgor”) and SearchCore, Inc., a Nevada corporation (the “Holder”). The Pledgor and Holder shall each be referred to as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Pledgor is obligated to Holder under that certain Non-Recourse Secured Promissory Note of even date herewith in the original principal amount of Ninety Thousand Dollars ($90,000) (the “Operating Expenses Note”);

 

WHEREAS, Pledgor is obligated to Holder under that certain Non-Recourse Secured Promissory Note of even date herewith in the original principal amount of One Million Dollars ($1,000,000) (the “Purchase Note” and, together with the Operating Expenses Note, the “Notes”);

 

WHEREAS, to ensure its performance and as security for the payment obligations of Pledgor under the Notes, Pledgor has agreed to execute and deliver to Holder this Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt of sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

AGREEMENT

 

	
1.  

	
CREATION OF SECURITY INTEREST

 

Pledgor hereby grants to Holder a security interest in and lien upon the property described in Section 2 of this Agreement to secure performance and payment of Pledgor’s obligations under the Notes. Concurrently with the execution and delivery of this Agreement, as may be necessary and to the extent requested by Holder, the Pledgor shall execute and deliver to Holder (i) financing statements, and (ii) such other documents requested or required to perfect and establish the priority of the liens granted to Holder hereby.

 

  

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2.  

	
COLLATERAL

 

The “Collateral” shall consist of any and all interest Pledgor acquired pursuant to that certain Domain Name Purchase Agreement of even date herewith (the “Purchase Agreement”) in the Pledged Domain Names, as defined in the Purchase Agreement.

 

	
3.  

	
PLEDGOR’S REPRESENTATIONS AND WARRANTIES

 

Pledgor hereby represents and warrants to the Holder, as of the Effective Date, as follows:

 

(a)   Clear Title to Collateral. Pledgor represents that it is the sole owner of the Collateral, having good and marketable title thereto, free and clear of any and all liens, encumbrances, claims, or rights of others created by any acts or omissions of Pledgor, except as created by this Agreement and the Sublease and other obligations to DCL (as defined in the Purchase Agreement).

(b)   Priority of Lien. This Agreement constitutes a valid and continuing lien on and security interest in the Collateral in favor of Holder, prior to all other liens, encumbrances, security interests and rights of others arising from any acts or omissions of Pledgor, except those of DCL as set forth in the Purchase Agreement, and is enforceable as such as against creditors of and purchasers from Pledgor.

 

	
4.  

	
EVENTS OF DEFAULT

 

The following events are Events of Default:

 

(a)   Default on Notes. The Pledgor is in default pursuant to Section 5 of the Notes.

 

(b)   Limitations Regarding Collateral. Pledgor sells, transfers, leases or otherwise disposes of any of the Collateral, or attempts, offers or contracts to do so, or Pledgor creates, permits or suffers to exist any lien, security interest, encumbrance, claim or right in or to the Collateral other than those agreed to in advance by Holder (the “Other Encumbrances”). Pledgor will, at Pledgor’s sole expense, defend the Collateral against and take such other action as is necessary to remove such Other Encumbrances and defend the right, title and interest of Holder in and to any of Pledgor’s rights to the Collateral, including without limitation any proceeds and products thereof, against the claims and demands of all persons.

 

  

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5.  

	
HOLDER’S RIGHTS

 

(a)   Rights of Holder Upon Default. If there is an Event of Default the Holder may, at its option and at any time thereafter do the following: (1) declare the entire aggregate amount of the Notes then outstanding and the interest and other fees and expenses accrued thereon to be immediately due and payable without notice and without presentment, demand, protest, notice of protest, or other notice of default or dishonor of any kind, all of which are hereby expressly waived by the Pledgor; (2) require Pledgor to assemble the Collateral, including any books and records pertaining to the Collateral, and make them available to Holder at a place designated by Holder; (3) notify any account of Pledgor and any other person who shares Holder’ interest in the Collateral; (4) request confirmation of the status of any account of the Pledgor upon which account Pledgor is obligated; (5) require Pledgor to obtain Holder’ prior written consent to any sale, agreement to sell, or other disposition of any Collateral; or (6) remedy any default or waive any default without waiving the default remedies and without waiving any other prior or subsequent default.

 

(b)   Rights Under Uniform Commercial Code. Without limiting any of Holder’ rights and remedies under this Agreement, Holder may enforce the security interests and other liens given hereunder, and under the Notes and documents referred to herein or contemplated hereby, pursuant to the applicable Uniform Commercial Code and any other applicable law including all legal and equitable remedies available to lenders generally.

 

(c)   Payments of Taxes and Insurance. If Pledgor fails to pay any taxes, assessments, insurance premiums, or other amounts due to third parties as required by Pledgor on the Collateral, Holder may, in its discretion and without prior notice to Pledgor, make any such payment. Any payments made by Holder under this paragraph shall not constitute (i) an agreement by Holder to make similar payments in the future, or (ii) a waiver by Holder of any Event of Default under this Agreement. Holder need not inquire as to, or contest the validity of, any such expense, tax, security interest, encumbrance or lien, and the receipt of the notice for the payment thereof shall be conclusive evidence that the same was validly due and owing.

 

(d)   Rights and Remedies are Cumulative. All rights and remedies provided herein are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies otherwise provided by law. Any single or partial exercise of any right or remedy shall not preclude the further exercise thereof or the exercise of any other right or remedy.

 

  

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6.  

	
ADDITIONAL PROVISIONS

 

(a)           Notices. All notices required or permitted hereunder shall be in writing and shall be delivered as set forth in the Purchase Agreement of even date herewith.

 

(b)           No Waiver; Cumulative Remedies. Holder shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by Holder. A waiver by Holder of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy, which Holder would otherwise have had on any future occasion. The rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law.

 

(c)           Successors and Assigns. All covenants and agreements herein contained by or on behalf of the Pledgor shall bind its successors and assigns and shall inure to the benefit of the Holder and its successors and assigns. No Party may assign this Agreement or any instruments or documents executed in connection herewith or any of their respective rights hereunder without the prior written consent of the Holder.

 

(d)   Governing Law; Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY THEREIN, WITHOUT GIVING EFFECT TO THE RULES OR PRINCIPLES OF CONFLICTS OF LAW. Any action brought to enforce the terms of this Agreement will be brought in the appropriate federal or state court having jurisdiction over the State of California, County of Orange.

 

(e)   Severability. In the event any one or more of the provisions contained in this Agreement or in any other instrument or document referred to herein or executed in connection with or as security for the Notes, shall, for any reason, be held to be invalid, illegal or unenforceable, such provision(s) shall not affect any other provision of this Agreement or any other instrument or document referred to herein or executed in connection with or as security for the Notes.

 

  

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(f)   Defined Terms. Unless otherwise defined in this Agreement, terms used in this Agreement, which are defined in the applicable Uniform Commercial Code, are used with the meanings as therein defined.

 

(g)   Entire Agreement. This Agreement, the Purchase Agreement, and the exhibits and instruments referenced therein, constitutes the full and entire understanding and agreement between the Parties with regard to the subjects hereof and no Party shall be liable or bound to the other Party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein. This Agreement may not be modified or amended except by a written instrument duly executed by all of the Parties.

 

(h)   Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

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IN WITNESS WHEREOF, the Parties have executed this Pledge and Security Agreement as of the date first written above.

 

 

	
“Pledgor”

	
“Holder”

	 	 
	
Platinum Technology Ventures, LLC,

	
SearchCore, Inc.,

	
a Nevada limited liability company

	
a Nevada corporation

	 	 
	 	/s/ Brad Nelms	 	/s/ James Pakulis
	By: 	Brad Nelms	By: 	James Pakulis
	Its: 	Manager	Its: 	President and
	 	 	 	
Chief Executive Officer

 

 

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