SEC Contract Filing

Filing Date: 2021-10-13

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>7
<FILENAME>ea148765ex10-4_1847hold.htm
<DESCRIPTION>6% SUBORDINATED CONVERTIBLE PROMISSORY NOTE ISSUED BY 1847 CABINET INC. TO JOSE D. GARCIA-RENDON ON OCTOBER 8, 2021
<TEXT>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit
10.4</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN
ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A
FORM ACCEPTABLE TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT
TO RULE 144 UNDER SAID ACT.</FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">THIS
INSTRUMENT IS SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT DATED AS OF OCTOBER 8, 2021 IN FAVOR OF AGENT, LEONITE CAPITAL LLC, AS
AGENT FOR THE SENIOR CREDITORS, WHICH AGREEMENT (AS AMENDED IN ACCORDANCE WITH ITS TERM) IS INCORPORATED HEREIN BY REFERENCE.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1847
CABINETS INC.</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6%
SUBORDINATED CONVERTIBLE PROMISSORY NOTE</B></FONT></P>

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 <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 51%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. <U>$2,940,172.50</U></FONT></TD>
 <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">October
 8, 2021</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOR
VALUE RECEIVED</B>, 1847 Cabinet Inc., a Delaware corporation (the &ldquo;<B>Company</B>&rdquo;), hereby promises to pay to the order
of Jose D. Garcia-Rendon (the &ldquo;<B>Holder</B>&rdquo;), the principal sum of Two Million Nine Hundred Forty Thousand One Hundred
Seventy-Two Dollars and Fifty Cents ($2,940,172.50) (the &ldquo;<B>Principal</B>&rdquo;) in lawful money of the United States of America,
together with accrued interest thereon at the rate of six percent (6%) per annum, as provided in this Note. Unless earlier converted,
repaid, or due in accordance with this Note, the then outstanding Principal amount together with all accrued but unpaid interest and
any other amounts payable under this Note shall mature and become due on the third (3<SUP>rd</SUP>) anniversary of the date of this Note
(the &ldquo;<B>Maturity Date</B>&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Subordinated Convertible Promissory Note (this &ldquo;<B>Note</B>&rdquo;) has been issued in connection with that certain Securities
Purchase Agreement, dated September 23, 2021 (the &ldquo;<B>Purchase Agreement</B>&rdquo;) and its amendment, among the Company (as the
&ldquo;<B>Buyer</B>&rdquo;), High Mountain Door &amp; Trim, Inc., a Nevada corporation (&ldquo;<B>High Mountain</B>&rdquo;), Sierra Homes,
LLC, a Nevada limited liability company (&ldquo;<B>Sierra Homes</B>&rdquo; and together with High Mountain, collectively, the &ldquo;<B>Selling
Companies</B>&rdquo;), and the Holder (as a &ldquo;Seller&rdquo;) and the other Seller party set forth in Exhibit A thereto (collectively,
the &ldquo;<B>Sellers</B>&rdquo;), pursuant to which the Company has acquir