SEC Contract Filing

Filing Date: 2019-04-08

Document Content:
<DOCUMENT>
<TYPE>EX-10.12
<SEQUENCE>13
<FILENAME>efsh_ex1012.htm
<DESCRIPTION>PLEDGE AGREEMENT
<TEXT>
<html><head><title>efsh_ex1012.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 10.12</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b>PLEDGE AGREEMENT</b></p> <p style="MARGIN: 0px 0px 0px 0in" align="center">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">THIS PLEDGE AGREEMENT (this &#8220;<u>Agreement</u>&#8221;), dated as of April 5, 2019 is made by 1847 Goedeker Holdco Inc., a Delaware corporation (&#8220;<u>Holdco</u>&#8221;; and together with the each other party who is designated as a &#8220;Pledgor&#8221; on the signature pages hereto, each individually, a &#8220;<u>Pledgor</u>&#8221; and collectively, the &#8220;<u>Pledgors</u>&#8221;), in favor of BURNLEY CAPITAL LLC, a Delaware limited liability company (together with its successors and assigns, the &#8220;<u>Lender</u>&#8221;).</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b>RECITALS:</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 0.5in" align="justify">A. The Pledgors, the other Loan Parties (as defined therein) from time to time party thereto, and the Lender have entered into that certain Loan and Security Agreement, dated as of the date hereof (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the &#8220;<u>Loan Agreement</u>&#8221;).</p> <p style="MARGIN: 0px; TEXT-INDENT: 0.5in" align="justify">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 0.5in" align="justify">B. It is a condition precedent to the effectiveness of the Loan Agreement that the Pledgors execute and deliver this Agreement in favor of the Lender.</p> <p style="MARGIN: 0px; TEXT-INDENT: 0.5in" align="justify">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 0.5in" align="justify">C. The Lender, Small Business Community Capital L.P., a Delaware limited partnership (&#8220;<u>SBCC</u>&#8221;), Holdco, and 1847 Goedecker Inc. are parties to that certain Subordination and Intercreditor Agreement dated as of the date hereof (the &#8220;<u>Subordination Agreement</u>&#8221;).</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b>AGREEMENTS:</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 0.5in" align="justify">NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in" align="justify">1. <u>Definitions and Construction</u>.</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 31.5pt; TEXT-INDENT: 0.5in" align="justify">(a) <u>Definitions</u>. All capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement. As used in this Agreement:</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&#8220;<u>Applicable Statutes</u>&#8221; means, collectively, any statute governing the establishment and governance of corporations or limited liability companies organized under the jurisdiction of organization of any Issuer.</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&#8220;<u>Bankruptcy Code</u>&#8221; means United States Bankruptcy Code (11 U.S.C. Section 101 <u>et</u> <u>seq</u>.), as in effect from time to time, and any successor statute thereto.</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&#8220;<u>Code</u>&#8221; means the Uniform Commercial Code as in effect from time to time in the State of Minnesota or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests. </p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&#8220;<u>Collateral</u>&#8221; means, collectively, the Pledged Interests, the Future Rights, and the Proceeds.</p> <p style="MARGIN: 0px" align="justify">&nbsp;</p> <p style="MARGIN: 0px" align="justify"> <table id="pagebreak98628a51-6837-4149-950f-9f89677937ea" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td class="hpbhr">&nbsp;</td></tr> <tr> <td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">1</td></tr> <tr> <td> <div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr> <tr> <td>&nbsp;</td></tr></table></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&#8220;<u>Equity Interests</u>&#8221; means all securities, shares, units, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company, or other entity, whether voting or nonvoting, certificated or uncertificated, including general partner partnership interests, limited partner partnership interests, limited liability company interests, common stock, preferred stock, or any other &#8220;equity security&#8221; (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934).</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">&nbsp;</p> <p style="MARGIN: 0px 0px 0px 0.5in; TEXT-INDENT: 0.5in" align="justify">