SEC Contract Filing

Filing Date: 2018-09-12

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex_123846.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.1</b></font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">THIS AMENDED AND RESTATED SUBORDINATED SECURED PROMISSORY NOTE (THIS &ldquo;<u>NOTE</u>&rdquo;) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">PAYMENT AND ENFORCEMENT OF THIS NOTE, AND THE LIENS AND SECURITY INTERESTS SECURING THIS NOTE, ARE SUBORDINATED TO THE CLAIMS, LIENS AND SECURITY INTERESTS OF THE HOLDER OF SENIOR INDEBTEDNESS AS DEFINED IN, AND TO THE EXTENT PROVIDED IN, AND IS OTHERWISE SUBJECT TO THE TERMS OF, THE INTERCREDITOR AND DEBT SUBORDINATION AGREEMENT, DATED ON OR ABOUT MARCH 2, 2018, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, BY AND BETWEEN THE HOLDER OF THIS NOTE, AS JUNIOR CREDITOR, AND NORTH MILL CAPITAL LLC, AS SENIOR CREDITOR (THE &ldquo;SUBORDINATION AGREEMENT&rdquo;).</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>AMENDED AND RESTATED SUBORDINATED SECURED PROMISSORY NOTE </b></p>

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 <td style="width: 50%;">$3,285,230.74</td>
 <td style="width: 50%; text-align: right;">September 6, 2018</td>
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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify; text-indent: 54pt;">FOR VALUE RECEIVED, STANLEY FURNITURE COMPANY LLC (formerly known as Churchill Downs LLC), a Delaware limited liability company (&ldquo;<u>Maker</u>&rdquo;), hereby promises to pay to the order of HG HOLDINGS, INC. (formerly known as Stanley Furniture Company, Inc.), a Delaware corporation (&ldquo;<u>Holder</u>&rdquo;), on March 2, 2023 (the &ldquo;<u>Maturity Date</u>&rdquo;), the principal amount of Three Million Two Hundred Eight-Five Thousand Two Hundred Thirty and 74/100 Dollars ($3,285,230.74), as such principal amount may be adjusted after the date hereof pursuant to Section 2.7 of that certain Asset Purchase Agreement, dated as of November 20, 2017 (the &ldquo;<u>Purchase Agreement</u>&rdquo;), between Marker and Holder, to the extent not theretofore paid (such unpaid principal amount at any time, the &ldquo;<u>Principal Amount</u>&rdquo;), together with interest thereon calculated from the date hereof in accordance with the provisions of this Note (the unpaid amount of any such accrued interest at any time, the &ldquo;<u>Interest Amount</u>&rdquo; and the sum of the Principal Amount and the Interest Amount at any time, the &ldquo;<u>Total Amount</u>&rdquo;). Certain capitalized terms which are used and not otherwise defined in this Note are defined in <u>Section 7</u> below.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PAYMENT OF PRINCIPAL AND INTEREST</u>. Subject, in each case, to the Subordination Agreement:</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the imposition of the Default Rate (as defined below), interest on the Principal Amount shall accrue daily at a fixed rate of six percent (6.00%) <i>per annum</i> (computed on the basis of a 365 or 366 day year, as applicable, and the actual number of days elapsed), each such payment shall be due, in arrears, each such payment to be due on the last Business Day of each calendar month continuing through and including the Maturity Date.</p>

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