Document:

Exhibit 10.2

  

CONVERSION AGREEMENT

 

This CONVERSION AGREEMENT
(this “Agreement”), dated as of July 26, 2022 (the “Effective Date”), is entered into by
and between 1847 Holdings LLC, a Delaware limited liability company (the “Company”),
1847 Cabinet Inc., a Delaware corporation (“Cabinet”), and Stephen
Mallatt, Jr. and Rita Mallatt (together, the “Holder”).

 

RECITALS

A. The
Holder is the holder of an 8% Vesting Promissory Note, dated September 30, 2020, which was issued to the Holder by Cabinet, the Company’s
wholly owned subsidiary, in the principal amount of up to $1,260,000 (the “Note”), of which $798,974 of the principal
has Vested.

 

B. Each
of the Company, the Holder and Cabinet desires to convert $797,221 of the Note (the “Conversion Amount”) into a number
of common shares of the Company (the “Conversion Shares”) equal to the Conversion Amount divided by the price per share
of the Company’s common shares sold in the Company’s proposed public offering, as set forth in the Registration Statement
on Form S-1 (File No. 333-259011) (as may be amended from time to time, the “Registration Statement”), initially filed
by the Company with the Securities and Exchange Commission (the “SEC”) on August 23, 2021. Such conversion of the Conversion
Amount into the Conversion Shares as described herein shall be referred to as the “Conversion.”

 

C. The
parties hereto desire that the Conversion shall become effective on the date that the Registration Statement is declared effective by
the SEC.

 

D. In
exchange for the Conversion, 1847 Cabinet agrees to Vest the balance of the principal on the Note remaining after the Conversion, cancel
the Note and pay the Holder the remaining Vested amount plus accrued interest in accordance with the terms of this Agreement.

 

E. Terms
not defined herein shall be as defined in the Note.

 

NOW, THEREFORE, in
consideration of the foregoing and the representations, warranties, covenants and promises contained herein, and for other good and valuable
consideration, the parties hereto agree as follows:

 

AGREEMENT

 

Section 1.Conversion.
Upon the Registration Statement being declared effective by the SEC, with no further action by any party hereto, the Conversion Amount
shall automatically convert into the Conversion Shares. Promptly following the Conversion, the Company will instruct its transfer agent
to record the Conversion Shares in book entry form in the name of the Holder. The Holder understands and agrees that the Conversion Shares
shall be notated with the following legend or one similar to it along with any other legends required by the constituent instruments of
the Company:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION TIIEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
OR AN OPINION OF COUNSEL TN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

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Section 2.Payment of
Remaining Balance. No later than October 1, 2022, 1847 Cabinet shall pay to the Holder the sum of $558,734, which represents the full
Vested principal amount of the Note, plus accrued interest.

 

Section 3.Cancellation
of Note. The Note is hereby cancelled. Notwithstanding the foregoing, the provisions of Section 5 (Events of Default), Section 6 (Affirmative
Covenants of the Company) and Section 7 (Subordination) are hereby incorporated by reference as if made under this Agreement and all references
to “Note” in such sections shall be deemed to refer to this “Agreement.”

 

Section 3.Miscellaneous.

 

3.1 Amendments
and Waivers. No provisions of this Agreement shall be modified, waived or terminated, except by an instrument in writing signed by
each party hereto.

 

3.2 Successors
and Assigns. The provisions of this Agreement shall be binding upon the successors in interest, heirs and assigns to the Note or the
Conversion Shares into which the Conversion Amount is converted. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement except as expressly provided in this Agreement.

 

3.3Governing
Law. This Agreement shall in all other respects be interpreted, construed and governed by and in accordance with the laws of the
State of Delaware, without regard to its conflicts of laws principles.

 

3.4 Severability.
If any provision of this Agreement is found invalid or unenforceable by a court of competent jurisdiction, such provision shall be enforced
to the maximum extent permissible by law and the other provisions of this Agreement shall remain in full force and effect.

 

3.5 Entire
Agreement. This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and supersede all
prior and contemporaneous agreements, understandings, negotiations and discussions between the parties with respect to such subject matter,
whether oral or written.

 

3.6 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall
constitute but one and the same agreement.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

  

	 	COMPANY:
	 	 	 
	 	1847 Holdings LLC
	 	 	 
	 	By:	/s/ Ellery W. Roberts
	 	Name:  	Ellery W. Roberts
	 	Title:	Chief Executive Officer
	 	 	 
	 	COMPANY:
	 	 	 
	 	1847 Cabinet Inc. 
	 	 	 
	 	By:	/s/ Ellery W. Roberts
	 	Name:	Ellery W. Roberts
	 	Title:	Executive Chairman
	 	 	 
	 	HOLDER:
	 	 	 
	 	/s/ Stephen Mallatt, Jr.
	 	Stephen Mallatt, Jr.
	 	 	 
	 	/s/ Rita Mallatt
	 	Rita Mallatt

 

 

3Exhibit 10.4

  

CONVERSION AGREEMENT

 

This CONVERSION AGREEMENT
(this “Agreement”), dated as of July 26, 2022 (the “Effective Date”), is entered into by
and between 1847 Holdings LLC, a Delaware limited liability company (the “Company”),
1847 Cabinet Inc., a Delaware corporation (“Cabinet”), and Steven
J. Parkey (the “Holder”).

 

RECITALS

 

A. The
Holder is the holder of a 6% Subordinated Convertible Note, dated October 8, 2021 (the “Note”), which was issued to
the Holder by Cabinet, the Company’s wholly owned subsidiary. The amount of principal and accrued and unpaid interest on the Note
as of the date hereof is $3,093,290.

 

B. Each
of the Company, the Holder and Cabinet desires to convert $1,680,000 of the Note (the “Conversion Amount”) into a number
of fully paid and non-assessable common shares of the Company (the “Conversion Shares”) equal to the Conversion Amount
divided by the price per share of the Company’s common shares sold in the Company’s proposed public offering, as set forth
in the Registration Statement on Form S-1 (File No. 333-259011) (as may be amended from time to time, the “Registration Statement”),
initially filed by the Company with the Securities and Exchange Commission (the “SEC”) on August 23, 2021, resulting
in a remaining balance on the Note of $1,413,290 as of the date hereof (the “Note Balance”). Such conversion of the
Conversion Amount into the Conversion Shares as described herein shall be referred to as the “Conversion.”

 

C. The
parties hereto desire that the Conversion shall become effective on the date that the Registration Statement is declared effective by
the SEC.

 

NOW, THEREFORE, in consideration
of the foregoing and the representations, warranties, covenants and promises contained herein, and for other good and valuable consideration,
the parties hereto agree as follows:

 

AGREEMENT

 

Section
1. Conversion. Upon the Registration Statement being declared effective by the SEC, with no further action by any party
hereto, the Conversion Amount shall automatically convert into the Conversion Shares. Promptly following the Conversion, and in any event
no later than the fifth (5th) business day following the date on which the Conversion occurs, the Company will instruct its transfer agent
to record the Conversion Shares in book entry form in the name of the Holder.

 

Section
2. Legends. The Holder understands and agrees that the Conversion Shares shall be notated with the following legend or one
similar to it along with any other legends required by the constituent instruments of the Company:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION TIIEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
OR AN OPINION OF COUNSEL TN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

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The legends set forth or
referenced above shall be removed and the Company shall issue a certificate or book entry statement for the applicable Conversion Shares
without such legends to the Holder upon which it is notated or stamped or (as requested by Holder) issue the applicable Conversion Shares
to Holder by electronic delivery by crediting the account of Holder’s broker with The Depository Trust Company (“DTC”),
if, unless otherwise required by applicable state securities laws, (a) such Common Shares are registered for sale under an effective registration
statement filed under the Securities Act of 1933, as amended (the “1933 Act”) Act or otherwise may be sold pursuant
to Rule 144, Rule 144A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular
date that can then be immediately sold, or (b) the Company or the Holder provides the Legal Counsel Opinion (as contemplated by and in
accordance with Section 3 hereof) to the effect that a public sale or transfer of such Conversion Shares may be made without registration
under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Company shall be responsible
for the fees of its transfer agent and all DTC fees associated with any such issuance. The Holder agrees to sell all Conversion Shares,
including those represented by a certificate(s) from which the legends have been removed, in compliance with applicable prospectus delivery
requirements, if any. In the event that the Company does not cause its counsel to promptly provide an opinion upon the request of the
Holder or accept the opinion of counsel provided by the Holder, with respect to the transfer of Conversion Shares pursuant to an exemption
from registration, such as Rule 144, Rule 144A, Regulation S, or other applicable exemption, within ten (10) business day following such
request or deliver by Holder, as applicable, such occurrence will constitute an “Event of Default” under the terms and provisions
of the New Note (as defined below).

 

Section 3. Legal Counsel
Opinions. Upon the request of the Holder from to time to time, the Company shall be responsible
(at its cost) for promptly supplying to the Company’s transfer agent and the Holder a customary legal opinion letter of its counsel
(the “Legal Counsel Opinion”) to the effect that the resale of the Conversion
Shares by the Holder or its affiliates, successors and assigns is exempt from the registration requirements of the 1933 Act pursuant to
Rule 144 (provided the requirements of Rule 144 are satisfied and provided the Conversion Shares are not then registered under the 1933
Act for resale pursuant to an effective registration statement) or other applicable exemption (provided the requirements of such other
applicable exemption are satisfied). In addition, the Holder may (at the Company’s cost) at any time secure its own legal counsel
to issue the Legal Counsel Opinion, and the Company will instruct its transfer agent to accept such opinion. The Company hereby agrees
that it may never take the position that it is a “shell company” in connection with its obligations under this Agreement or
otherwise unless at the time of the delivery of such opinion it is a shell company as determined by its outside legal counsel.

 

Section
4. New Note. Promptly following the Conversion, Cabinet will issue to the Holder a new note in the principal amount equal
to the Note Balance (the “New Note”), the terms of which, except as set forth herein, shall be identical to the Note.

 

Section 5. Representations
and Warranties of the Company. In connection with the transactions contemplated by this Agreement, the Company and Cabinet hereby
represents and warrants to the Holder as follows:

 

(a) Organization
and Qualification. The Company, Cabinet, and each of their Subsidiaries (as defined below) is a company duly organized, validly existing
and in good standing under the laws of the jurisdiction in which it is incorporated or formed, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and
conducted. The Company, Cabinet, and each of their Subsidiaries is duly qualified as a foreign company to do business and is in good standing
in every jurisdiction in which its ownership or use of property or the nature of the business conducted by it makes such qualification
necessary. As used herein, “Subsidiaries” means any corporation or other organization,
whether incorporated or unincorporated, in which the Company or Cabinet owns, directly or indirectly, any equity or other ownership interest.

 

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(b) Authorization;
Enforcement - (Company). (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement
and to consummate the transactions contemplated hereby and to issue the Conversion Shares, in accordance with the terms hereof, (ii) the
execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby (including
without limitation, the issuance of the Conversion Shares upon the Conversion) have been duly authorized by the Company’s Board
of Directors and no further consent or authorization of the Company, its Board of Directors, its shareholders, or its debt holders is
required, (iii) this Agreement (together with any other instruments and documents executed in connection herewith or therewith) has been
duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official
representative with authority to sign this Agreement and such other instruments and documents executed in connection herewith and bind
the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company each of such other instruments
and documents will constitute, a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with
their terms.

 

(c) Authorization;
Enforcement - (Cabinet). (i) Cabinet has all requisite corporate power and authority to enter into and perform this Agreement and
the New Note, and to consummate the transactions contemplated hereby and thereby, in accordance with the terms hereof and thereof, (ii)
the execution and delivery of this Agreement and the New Note, and the consummation by it of the transactions contemplated hereby and
thereby (including without limitation, the issuance of the New Note) have been duly authorized by Cabinet’s Board of Directors and
no further consent or authorization of Cabinet, its Board of Directors, its shareholders, or its debt holders is required, (iii) this
Agreement and the New Note (together with any other instruments or documents executed in connection herewith or therewith) have been duly
executed and delivered by Cabinet by its authorized representative, and such authorized representative is the true and official representative
with authority to sign this Agreement, the New Note and the other instruments documents executed in connection herewith or therewith and
bind Cabinet accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the New Note, each of
such instruments will constitute, a legal, valid and binding obligation of Cabinet, enforceable against Cabinet in accordance with their
terms, except as such enforceability may be limited by general principals of equity, or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies.

 

(d) Issuance
of Conversion Shares. The Conversion Shares have been duly authorized by all necessary corporate action of the Company and, when issued
and delivered by the Company upon the Conversion in accordance with the terms of this Agreement, the Conversion Shares will be validly
issued, fully paid and non-assessable and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall
not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon
the holder thereof.

 

(e) No
Conflicts. The execution, delivery and performance of this Agreement by the Company and Cabinet, and the
execution, delivery and performance of the New Note by Cabinet, and the performance of their respective obligations under this Agreement
and the New Note and consummation by the Company and Cabinet of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Conversion Shares and the New Note) will not (i) conflict with or result in a violation of any provision of the Company’s
Certificate of Formation as in effect on the date hereof, the Company’s operating agreement, as in effect on the date hereof, Cabinet’s
Certificate of Incorporation as in effect on the date hereof, Cabinet’s bylaws as in effect on the date hereof, or any other organizational
or governing documents of the Company, Cabinet, their Subsidiaries (collectively, the “Governing Documents”),
or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or
lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, note, evidence of indebtedness, indenture, patent, patent license or instrument to which the Company, Cabinet or any
of their Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities
is subject) applicable to the Company, Cabinet, or any of their Subsidiaries or by which any property or asset of the Company, Cabinet,
or any of their Subsidiaries is bound or affected. Neither the Company, Cabinet, nor any of their Subsidiaries is in violation of its
Governing Documents and neither the Company, Cabinet nor any of their Subsidiaries is in default (and no event has occurred which with
notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the Company, Cabinet,
nor any of their Subsidiaries has taken any action or failed to take any action that would give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Company, Cabinet, or any of their Subsidiaries is
a party or by which any property or assets of the Company, Cabinet, or any of their Subsidiaries is bound or affected. Except as specifically
contemplated by this Agreement and as required under the 1933 Act and any applicable state securities laws and except where written consents
or waivers are obtained on or prior to the date hereof, neither the Company nor Cabinet is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization
or stock market or any third party in order for it to (i) execute, deliver or perform any of its obligations under this Agreement and
the New Note, as applicable, in accordance with the terms hereof or thereof or (ii) issue the Conversion Shares and the New Note, as applicable,
in accordance with the terms hereof. All consents, authorizations, orders, filings and registrations which the Company or Cabinet is required
to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. 

 

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(f) Breach
of Representations and Warranties. The Company and Cabinet each agree that any inaccuracy in or breach of any of the representations
or warranties of the Company or Cabinet contained in this Agreement will, in addition to any other remedies available to the Holder pursuant
to this Agreement to which Holder may be entitled at law or in equity, will constitute an “Event of Default” under the terms
and provisions of the New Note.

 

Section 6. Termination.
Notwithstanding any other provisions of this Agreement, this Agreement may be terminated prior to the
Conversion by the Holder upon written notice to the Company (which may be delivered by email to eroberts@1847holdings.com) if the Conversion
has not occurred within sixty (60) days following the Effective Date. In the event of termination of this Agreement in accordance with
this Section 6, this Agreement shall become void and there shall be no liability on the part of any party hereto. 

 

Section 7. Miscellaneous.

 

(a) Amendments
and Waivers. No provisions of this Agreement shall be modified, waived or terminated, except by an instrument in writing signed by
each party hereto.

 

(b) Successors
and Assigns. The provisions of this Agreement shall inure to the benefit of and shall be binding upon the parties and their respective
successors in interest, heirs and assigns, including the successors in interest, heirs and assigns to the New Note or the Conversion Shares
into which the Conversion Amount is converted. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason
of this Agreement except as expressly provided in this Agreement.

 

(c) Governing
Law. This Agreement shall in all other respects be interpreted, construed and governed by and in accordance with the laws of the
State of Delaware, without regard to its conflicts of laws principles.

 

(d) Venue; Submission
to Jurisdiction; Attorney’s Fees. Any party may commence any action, litigation, or proceeding of any kind whatsoever against
any other party in any way arising from or relating to this Agreement and all contemplated transactions in the U.S. District Court, District
of Nevada, Northern Division or, if such court does not have subject matter jurisdiction, the courts of the State of Nevada sitting in
Washoe County, Nevada, and any appellate court from any thereof. Each party irrevocably and unconditionally submits to the nonexclusive
jurisdiction of such courts and agrees that any such action, litigation, or proceeding may be brought in the U.S. District Court, District
of Nevada, Northern Division or, if such court does not have subject matter jurisdiction, the courts of the State of Nevada sitting in
Washoe County, Nevada. Each party agrees that a final judgment in any such action, litigation or proceeding is conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided by law. The prevailing party in any action or dispute in
any way arising from or relating to this Agreement or the transaction contemplated hereby shall be entitled to recover from the other
party its reasonable attorney’s fees and costs.

 

(e) Severability.
If any provision of this Agreement is found invalid or unenforceable by a court of competent jurisdiction, such provision shall be enforced
to the maximum extent permissible by law and the other provisions of this Agreement shall remain in full force and effect.

 

(f) Entire Agreement.
This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and supersede all prior and contemporaneous
agreements, understandings, negotiations and discussions between the parties with respect to such subject matter, whether oral or written.

 

(g) Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall
constitute but one and the same agreement.

 

[Signature pages follow]

 

    4

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

  

	 	COMPANY:
	 	 	 
	 	1847 Holdings LLC
	 	 	 
	 	By:	/s/ Ellery W. Roberts
	 	Name:  	Ellery W. Roberts
	 	Title:	Chief Executive Officer
	 	 	 
	 	COMPANY:
	 	 	 
	 	1847 Cabinet Inc. 
	 	 	 
	 	By:	/s/ Ellery W. Roberts
	 	Name:	Ellery W. Roberts
	 	Title:	Executive Chairman
	 	 	 
	 	HOLDER:
	 	 	 
	 	/s/ Steven J. Parkey
	 	Steven J. Parkey

 

 

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