Document:

Exhibit 4.1

 

DESCRIPTION OF SECURITIES

 

General 

 

As of December 31, 2021, our authorized capital
stock consisted of 250,000,000 shares of common stock, par value $0.0001 per share (the “Common Stock”), and 20,000,000 shares
of preferred stock, par value $0.0001 per share (the “Preferred Stock”).

 

In December 2021, a Certificate of Amendment to
our Company’s Amended and Restated Certificate of Incorporation, dated July 30, 2020 (the “Certificate of Incorporation”)
setting forth an amendment to increase the number of shares of Common Stock from 200,000,000 to 250,000,000 (the “Share Increase
Proposal”) was filed with the Secretary of State of the State of Delaware. To date, none of these newly authorized shares has actually
been issued. Three purported beneficial owners of Common Stock subsequently expressed concerns about a statement in our proxy statement
related to the Share Increase Proposal, specifically questioning, in light of the proxy statement, the ability of brokerage firms and
other custodians to vote shares of Common Stock held by them for the benefit of their customers in the absence of instructions from the
beneficial owners. Based on an examination of the situation performed following receipt of these demands, we believe that the vote at
the annual meeting was properly tabulated and that the proposed amendment was properly adopted in accordance with Delaware law. In light
of the demands, however, and to ensure against any future question as to the validity of these newly authorized shares, we have elected
to seek validation of its Certificate of Amendment through a Petition to the Court of Chancery of the State of Delaware (the “Court
of Chancery”) pursuant to Section 205 of the Delaware General Corporation Law (the “205 Petition”). The action, styled
In re 1847 Goedeker Inc., C.A. 2022-0219-SG, seeks entry by the Court of Chancery of an order validating and declaring effective
the Certificate of Amendment, and validating the additional shares authorized under the Share Increase Proposal. Please see “Item
3 Legal Proceedings” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion
of this matter.

 

The following description summarizes important
terms of the classes of our capital stock. This summary does not purport to be complete and is qualified in its entirety by the provisions
of our Certificate of Incorporation and our bylaws, which are filed as exabits to this annual report.

 

As of December 31, 2021, there were 106,387,332
shares of Common Stock and no shares of Preferred Stock issued and outstanding.

 

Common Stock 

 

Voting Rights. The holders of Common
Stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Under our Certificate
of Incorporation and bylaws, any corporate action to be taken by vote of stockholders other than for election of directors shall be authorized
by the affirmative vote of the majority of votes cast. Directors are elected by a plurality of votes. Stockholders do not have cumulative
voting rights.

 

Dividend Rights. Subject to preferences
that may be applicable to any then-outstanding Preferred Stock, holders of Common Stock are entitled to receive ratably those dividends,
if any, as may be declared from time to time by the board of directors out of legally available funds.

 

Liquidation Rights. In the event
of our liquidation, dissolution or winding up, holders of Common Stock will be entitled to share ratably in the net assets legally available
for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference
granted to the holders of any then-outstanding shares of Preferred Stock.

 

Other Rights. Holders of Common
Stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the Common
Stock. The rights, preferences and privileges of the holders of Common Stock are subject to, and may be adversely affected by, the rights
of the holders of shares of any series of Preferred Stock.

 

     

     

    

 

Preferred Stock 

 

Our Certificate of Incorporation authorizes our
board to issue up to 20,000,000 shares of Preferred Stock in one or more series, to determine the designations and the powers, preferences
and rights and the qualifications, limitations and restrictions thereof, including the dividend rights, conversion or exchange rights,
voting rights (including the number of votes per share), redemption rights and terms, liquidation preferences, sinking fund provisions
and the number of shares constituting the series. Our board of directors could, without stockholder approval, issue Preferred Stock with
voting and other rights that could adversely affect the voting power and other rights of the holders of Common Stock and which could have
the effect of making it more difficult for a third party to acquire, or of discouraging a third party from attempting to acquire, a majority
of our outstanding voting stock.

 

Warrants

 

Representative’s Warrants

 

On August 4, 2020,
the Company issued warrants for the purchase of 55,560 shares of Common Stock to affiliates of the
representative in its initial public offering. These warrants are exercisable at any time and from time to time, in whole or in part,
beginning on January 26, 2021 until July 30, 2025, at an exercise price of $11.25 per share (subject to customary adjustments), and may
also be exercised on a cashless basis if, at any time during the term of the warrants, the issuance of common stock upon exercise of the
warrants is not covered by an effective registration statement.

 

Private Placement Warrants 

 

On March 19, 2021, the Company issued four-year
warrants to purchase an aggregate of 400,000 shares of Common Stock to two investors. These warrants are exercisable at any time and from
time to time, in whole or in part, at an exercise price of $12.00 per share (subject to customary adjustments) and may also be exercised
on a cashless basis if, at any time during the term of the warrants, the issuance of Common Stock upon exercise of the warrants is not
covered by an effective registration statement. Holders of these warrants do not have the right to exercise any warrants to the extent
that, after giving effect to the exercise of the warrant, the holder (together with the holder’s affiliates and any persons acting
as a group together with the holder or any of the holder’s affiliates) would beneficially own over 4.99% of the number of shares
of our Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of the warrant.
The holder may, upon not less than 61 days prior notice to us, increase or decrease such limitation, provided that such limitation in
no event exceeds 9.99% of the number of shares of our Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon exercise of the warrant. Additionally, the holders of the private placement warrants were granted piggy-back registration
rights with respect to the shares issuable upon exercise of the warrants.

 

Public Warrants

 

On June 2, 2021, the Company issued warrants to
purchase 93,111,111 shares of Common Stock in a public offering. These warrants are exercisable immediately and expire five years from
the date of issuance. The warrants have an exercise price of $2.25 per share, subject to appropriate adjustment in the event of certain
stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting the Company’s
Common Stock or upon any distributions of assets, including cash, stock or other property to stockholders, and may also be exercised on
a cashless basis if, at any time during the term of the warrants, the issuance of Common Stock upon exercise of the warrants is not covered
by an effective registration statement. Holders of the public warrants will not have the right to exercise any portion of the warrant
if the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of our Common Stock outstanding
immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants.
However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, provided that any increase
in such percentage shall not be effective until 61 days following notice from the holder to the Company. The public warrants are traded
on NYSE American under the symbol GOED WS.

 

Except as otherwise provided in the warrants or
by virtue of such holder’s ownership of our Common Stock, the holder of a warrant does not have the rights or privileges of a holder
of our Common Stock, including any voting rights, until the holder exercises the warrant.

 

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Anti-takeover Effects of Delaware Law and Charter
Provisions

 

We have elected not to be governed by Section
203 of the General Corporation Law of the State of Delaware, which prohibits a publicly-held Delaware corporation from engaging in a business
combination, except under certain circumstances, with an interested stockholder.

 

Our Certificate of Incorporation and bylaws contain
certain provisions that may have anti-takeover effects, making it more difficult for or preventing a third party from acquiring control
of our company or changing our board of directors and management.

 

Our Certificate of Incorporation authorizes our
board of directors to issue up to 20,000,000 shares of preferred stock without further stockholder approval. The preferred stock may be
issued in one or more series, the terms of which may be determined at the time of issuance by the board of directors without further action
by the stockholders. These terms may include preferences as to dividends and liquidation, conversion rights, redemption rights and sinking
fund provisions. The issuance of any preferred stock could diminish the rights of holders of our Common Stock, and therefore could reduce
the value of such Common Stock. In addition, specific rights granted to future holders of preferred stock could be used to restrict our
ability to merge with, or sell assets to, a third party. The ability of our board of directors to issue preferred stock could make it
more difficult, delay, discourage, prevent or make it more costly to acquire or effect a change-in-control, which in turn could prevent
our stockholders from recognizing a gain in the event that a favorable offer is extended and could materially and negatively affect the
market price of our Common Stock.

 

Our bylaws permit the board of directors to establish
the number of directors and fill any vacancies and newly created directorships. These provisions will prevent a stockholder from increasing
the size of our board of directors and gaining control of our board of directors by filling the resulting vacancies with its own nominees.
In addition, our bylaws provide that no member of our board of directors may be removed from office by our stockholders without cause
and, in addition to any other vote required by law, upon the approval of not less than the majority of the total voting power of all of
our outstanding voting stock then entitled to vote in the election of directors.

 

Our bylaws establish an advance notice procedure
for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election
to the board of directors. Stockholders at an annual meeting will only be able to consider proposals or nominations specified in the notice
of meeting or brought before the meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of
record on the record date for the meeting, who is entitled to vote at the meeting and who has given us timely written notice, in proper
form, of the stockholder’s intention to bring that business before the meeting. Although our bylaws do not give the board of directors
the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special
or annual meeting, our bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures
are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors
or otherwise attempting to obtain control of our company.

 

Furthermore, neither the holders of our Common
Stock nor the holders of our preferred stock have cumulative voting rights in the election of our directors. The combination of the present
ownership by a few stockholders of a significant portion of our issued and outstanding Common Stock and lack of cumulative voting makes
it more difficult for other stockholders to replace our board of directors or for a third party to obtain control of our company by replacing
its board of directors.

 

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Renunciation of Business Opportunity Doctrine

 

Our Certificate of Incorporation provides that we renounce, to the fullest extent permitted by law, any interest or expectancy in, or in
being offered an opportunity to participate in, any Excluded Opportunity. An “Excluded Opportunity” is any matter,
transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of
(i) any of our directors who is not an employee of ours, or (ii) any holder of preferred stock or any partner, member, director,
stockholder, employee or agent of any such holder, other than someone who is our employee (collectively, “Covered
Persons”), unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise
comes into the possession of, a Covered Person expressly and solely in such Covered Person’s capacity as our director.

 

Stock Exchange Listing

 

Our Common Stock and public warrants are traded on the NYSE American
under the symbols “GOED” and “GOED WS,” respectively.

 

Transfer Agent and Registrar 

American Stock Transfer & Trust Company, LLC,
6201 15th Avenue, Brooklyn, NY 11219, telephone (800) 937-5449 is the transfer agent
for our Common Stock and warrant agent for our warrants.

 

 

4Exhibit 10.36

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (this “Employment
Agreement”), dated as of June 2, 2021, between Appliances Connection Inc., a Delaware corporation (the “Company”),
and Albert Fouerti, an individual (the “Executive”).

 

BACKGROUND

 

The Company wishes to secure
the services of the Executive as 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 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. The Company represents and acknowledges
that Executive shall serve as a member of the Board of Directors of 1847 Goedeker Inc., the Company’s parent, for no additional
compensation.

 

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.

 

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.

 

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(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 here- under 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);

 

(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.

 

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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:

 

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

 

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

 

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

 

(iv) 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;

 

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(v) 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;

 

(vi) the
Company’s failure to nominate the Executive for election to the Board and for the Executive to be elected and re-elected, as applicable;

 

(vii) 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

 

(viii) 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.

 

(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.

 

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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).

 

(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.

 

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(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:
	/s/ Douglas T. Moore
	 	Name:	Douglas T. Moore
	 	Title:	Chief Executive Officer
	 	 	 
	 	Address:
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	/s/ Albert Fouerti
	 	Name: Albert Fouerti
	 	 	 
	 	Address: 	1870 Bath Avenue
	 	 	Brooklyn, NY 11214

 

    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

 

    10

    

    

 

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

 

 

11

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