Document:

srer_ex1012.htm

EXHIBIT 10.12

 

PLEDGE AND SECURITY AGREEMENT

This Pledge and Security Agreement (this “Agreement”) is made and entered into effective as of December 31, 2012 (the “Effective Date”) by and between SearchCore, Inc., a Nevada corporation (“Holder”) and WeedMaps Media, Inc., a Nevada corporation. (“Pledgor”).  The Holder and the Pledgor shall each be referred to as a “Party” and collectively as the “Parties.”

RECITALS

WHEREAS, the Parties have entered into that certain Agreement and Plan of Reorganization dated December 11, 2012 (the “Agreement and Plan of Reorganization”) whereby Holder desires to sell, and RJM BV, a Dutch corporation (“RJM”) desires to buy, 100% of the issued and outstanding equity interests of WeedMaps Media, Inc., a Nevada corporation (the “WeedMaps Shares”);

WHEREAS, RJM is obligated to Holder under that certain Secured Promissory Note of even date herewith in the original principal amount of Three Million Dollars ($3,000,000) (the “Note”);

WHEREAS, as security for the payment obligations of RJM under the Note, Pledgor has agreed to execute and deliver to Holder this Agreement granting Holder a security interest in the Collateral (as hereinafter defined) as security for the repayment of the Note by RJM to the Holder.

NOW, THEREFORE, for good and valuable consideration, the receipt and 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 all of RJM’s obligations under the Note.  A copy of the Note is attached hereto as Exhibit A.

	
2.  

	
COLLATERAL

As collateral for the Note, Pledgor hereby assigns and grants to Holder a first-priority lien and security interest in the following  (the “Collateral”):

(a)           all of the assets of WeedMaps Media, Inc., including, but not limited to the domain name known as www.weedmaps.com, and all revenue derived therefrom.

Holder’s security interest in the Collateral shall not be reduced or altered in any manner due to the monthly payments in accordance with the Note.

 

  

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3.  

	
PLEDGOR’S REPRESENTATIONS AND WARRANTIES

Pledgor hereby represents and warrants to Holder as follows:

(a)           Clear Title To Collateral.  Other than the interest created by this Agreement, the 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 for the security interest granted to Holder.

(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, and is enforceable as such as against creditors of and purchasers from Pledgor.

(c)           Defend Title.  Pledgor will defend the title to the Collateral against the claim of any Person claiming against or through Pledgor and will maintain and preserve Holder’s lien on the Collateral so long as this Agreement shall remain in effect.

 

(d)           No Transfer of Collateral.  Pledgor will not, without the prior written consent of Holder, sell, assign, transfer, mortgage, pledge or otherwise encumber any of its rights in or to the Collateral or any distributions or payments with respect thereto or grant a lien on any thereof, except for transfers to corporations controlled by RJM.

 

(e)           Protection of Collateral.  Pledgor shall do all acts that may be necessary or reasonable to maintain, preserve and protect the Collateral, and ensure that all Collateral is in good and working order, and shall never use the Collateral, or any part thereof, in a manner that results, or is likely to result, in waste or unreasonable deterioration of the Collateral.

 

(f)           Payment of Assessments, Taxes, Charges, etc.  Except for any taxes resulting from the transfer or disposition of the Collateral from Holder to the Pledgor, Pledgor shall pay, at least ten (10) days before delinquency, all taxes, charges, assessments, encumbrances and liens now or hereafter levied or imposed or becoming a lien upon the Collateral, or any part thereof, and all taxes and license fees imposed upon Pledgor’s right to do business, and to keep the interest created by this Agreement a first lien upon the Collateral, subject only to the lien of current taxes and assessments not yet due and payable.

 

(g)           No Violation or Default.  Neither the execution, delivery or performance of this Agreement nor the consummation by Pledgor of the transactions contemplated hereby will: (a) conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any agreement, judgment or order to which it is a party or by which it or any of its properties may be bound or affected; or (b) to the best of its knowledge, constitute a violation of any applicable law or regulation.

 

  

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(h)           Further Acts.  Upon demand, at any time, Pledgor shall make, do, execute and deliver all such further acts, documents, and instruments, including the execution, filing and recording of UCC-1 Financing Statements, as shall be reasonably required to effectuate the intent and purposes of this Agreement, so as to perfect, maintain and protect Holder’s interest hereunder and render all of the Collateral available for the satisfaction of the obligations under the Note and to subject the Collateral to the interest created by this Agreement.

	
4.  

	
EVENTS OF DEFAULT

The following events are Events of Default:

(a)           Default on Note.  The Pledgor is in default pursuant to Section 4 of the Note.  Any singular Event of Default shall allow Holder, jointly, to exercise the rights in Section 5 of this Agreement.

(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.

(c)           Misrepresentation.  Any representation or warranty made by Pledgor herein or in the Note that proves to be untrue in any material respect, or any representation, statement, certificate or data furnished or made by Pledgor hereunder or under the Note proves to have been untrue in any material respect, as of the date as of which the facts therein set forth were stated or certified.

	
5.  

	
HOLDER’S RIGHTS

(a)           Rights of Holder Upon Default.  If there is an Event of Default the Holder may do the following: (1) 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 and transfer the Collateral to the Holder; (2) notify any account of Pledgor and any other person who shares Holder’s interest in the Collateral; (3) request confirmation of the status of any account of the Pledgor upon which account Pledgor is obligated; (4) require Pledgor to obtain Holder’s prior written consent to any sale, agreement to sell, or other disposition of any Collateral; or (5) remedy any default or waive any default without waiving the default remedies and without waiving any other prior or subsequent default.

 

  

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(b)           Rights Under Uniform Commercial Code.  Without limiting any of Holder’s rights and remedies under this Agreement, Holder may enforce the security interests and other liens given hereunder, and under the Note 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 their 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.

	
6.  

	
ADDITIONAL PROVISIONS

(a)           Notices.  All notices provided for in this Agreement shall be set forth in Section 7.2 of the Agreement and Plan of Reorganization.

(b)           No Waiver; Cumulative Remedies.  Holder shall not by any act, delay, omission or otherwise be deemed to have waived any of his 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 their 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 other Parties.

(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 County of Orange, State of California, United States of America.

 

  

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

(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, along with the Note, and the Escrow Agreement of even date herewith, 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.

(i) Attorneys’ Fees. Except as otherwise provided herein, if a dispute should arise between the Parties including, but not limited to arbitration, the prevailing Party shall be reimbursed by the nonprevailing Party for all reasonable expenses incurred in resolving such dispute, including reasonable attorneys’ fees exclusive of such amount of attorneys’ fees as shall be a premium for result or for risk of loss under a contingency fee arrangement.

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

 

  

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IN WITNESS WHEREOF, the Parties have executed this Pledge and Security Agreement as of the Effective Date.

	
“Holder”

	 	
“Pledgor”

	  	 	  
	
SearchCore, Inc.

	 	
WeedMaps Media, Inc.

	
a Nevada corporation

	 	
a Nevada corporation

	  	 	  
	  	 	  
	/s/ James Pakulis	 	/s/ James Pakulis
	
By:  James Pakulis

	 	
By:  James Pakulis

	
Its:  President and Chief Executive Officer

	 	
Its:  President

 

 

 

  

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Exhibit A

Note

 

 

 

 

 

 

 7srer_ex1013.htm

EXHIBIT 10.13

 

ASSIGNMENT, ASSUMPTION AND RELEASE AGREEMENT

 

This Assignment, Assumption and Release Agreement (the “Agreement”) is entered into effective December 31, 2012 (the “Effective Date”) by and between SearchCore Inc., a Nevada corporation (the “Company”), Justin Hartfield, an individual (“Hartfield”), and RJM BV, a Dutch corporation (“RJM”).  Each of the Company, Hartfield, and RJM may be referred to herein as a “Party” and collectively as the “Parties.”

RECITALS

 

WHEREAS, the Company has previously entered into that certain Secured Promissory Note between the Company and Hartfield, dated August 1, 2012 (the “Note”); that certain Pledge and Security Agreement between the Company and Hartfield, dated August 1, 2012 (the “Pledge and Security Agreement”); that certain Escrow Agreement between the Company and Hartfield, dated August 1, 2012 (the “Escrow Agreement”); that certain Consulting Agreement between the Company and Hartfield, dated August 1, 2012 (the “Consulting Agreement”); and that certain Global Securities Purchase, Consulting, and Resignation Agreement between the Company and Hartfield, dated July 31, 2012 (the “Global Agreement” and, together with the Note, Pledge and Security Agreement, Escrow Agreement, and the Consulting Agreement, the “Hartfield Agreements”);

 

WHEREAS, the Company and RJM entered into that certain Agreement and Plan of Reorganization dated December 11, 2012 (the “Agreement and Plan of Reorganization”), whereby the Company desires to sell and RJM desires to purchase all of the outstanding equity interests of WeedMaps Media, Inc. (“WeedMaps”);

 

WHEREAS, as partial consideration under the Agreement and Plan of Reorganization, the Company desires to assign to RJM, and RJM desires to assume from the Company, the Hartfield Agreements as set forth herein.

 

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

AGREEMENT

1. As partial consideration under the Agreement and Plan of Reorganization, the Company hereby assigns to RJM, and RJM hereby assumes from the Company, the Hartfield Agreements as follows:

a. The Company assigns to RJM, and RJM assumes from the Company, any and all obligations of the Company contained in the Hartfield Agreements;

  

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b. The Escrow Agreement and the Pledge and Security Agreement are hereby cancelled in their entirety and the collateral held pursuant thereto shall be released to the Company free and clear of any liens or other obligations arising from the Escrow Agreement and/or the Pledge and Security Agreement;

 

c. The Note is hereby modified so that it is no longer secured by any assets or collateral, but is instead an unsecured note.

 

2. Hartfield, and his agents, affiliates, predecessors, successors and assigns, hereby releases the Company, and each and all of its present and former agents, officers, directors, attorneys, and employees (collectively, the “Company Parties”), from and against any and all claims, agreements, contracts, covenants, representations, obligations, losses, liabilities, demands and causes of action which it may now or hereafter have or claim to have against the Company Parties as a result of the Hartfield Agreements.  This release of claims and defenses shall not alter the prospective duties between the Parties under this Agreement and the Agreement and Plan of Reorganization.

 

Hartfield expressly agrees and understands that the above releases will be effective as of the date of this Agreement, and its sole remedy against any the Company Parties regarding the Hartfield Agreements will be for breach of this Agreement and the Agreement and Plan of Reorganization.

 

Section 1542 Release. It is understood and agreed by Hartfield that all rights under Section 1542 of the Civil Code of California, which provides as follows:

“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by his must have materially affected his settlement with the debtor,”

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

  

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the Effective Date.

	
“Company”

	 	
“RJM”

	  	 	  
	
SearchCore, Inc.,

	 	
RJM BV,

	
a Nevada corporation

	 	
a Dutch corporation

	  	 	  
	/s/ James Pakulis  	 	/s/ Mario Lap
	
By:  James Pakulis

	 	
By:  Mario Lap

	
Its:  President and Chief Executive Officer

	 	
Its:  President

	  	 	  
	  	 	  
	
“Hartfield”

	 	  
	  	 	  
	/s/ Justin Hartfield  	 	  
	
Justin Hartfield, an individual

	 	  

 

 

 

 

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