Material Agreement (Form 8-K)

Item 1.01. Entry Into a Material Definitive Agreement.

As of January 16, 2025, Sugar Phase I LLC ("Sugar Phase 1"), a joint venture between Safe and Green Development Corporation (the "Company") and Properties by Milk & Honey LLC, a Texas limited liability company , acquired twenty-two (22) lots in South Texas (the "Property") for a purchase price of $440,000 for development of its residential development project (the "Project"). In connection with the acquisition of the Property, Sugar Phase 1 entered into a Loan Agreement, dated as of January 16, 2025 (the "Loan Agreement"), for the periodic draw down of up to $1,092,672.75 in principal amount of loan proceeds to be used for the completion of the construction of the Project, the payment of the lender's expenses related to the Loan Agreement and the payment of expenses related to the acquisition by Sugar Phase I of the Property. The loan bears interest at the greater of the 1-Month Term Secured Overnight Financing Rate plus 5.710%, as adjusted monthly, or 9.740%, includes a loan origination fee of $23,110, matures on March 12, 2026 and is secured by the Property and other related collateral. The loan is also guaranteed by the Company and Properties by Milk & Honey LLC (each a "Guarantor") pursuant to an Unconditional Guaranty, dated January 16, 2025 (the "Guaranty"). The obligations of each Guarantor are joint and several. The Guaranty may be enforced against any Guarantor without attempting to collect from Sugar Phase 1, any other Guarantor or any other person, and without attempting to enforce lender's rights in any of the collateral. The Company, Properties by Milk & Honey LLC and the principals of Properties by Milk & Honey LLC also entered into an Indemnity Agreement, dated January 16, 2025 (the "Indemnity Agreement"), for the benefit of the lender under the Loan Agreement, with respect to the Project's compliance with Environmental Laws, Hazardous Substances Laws and Building Laws (as such terms are defined in the Indemnity Agreement).

Upon an Event of Default (as defined in the Loan Agreement), which includes, among other things, the failure to make any payment under the loan within 5 days after the date on which such payment is due, the failure by Sugar Phase 1 or any guarantor of the loan to perform any other loan covenant and any applicable cure period for such non-performance has elapsed, the occurrence of an event of default under any secured indebtedness of Sugar Phase 1 or its affiliates to any other lender, Sugar Phase 1 or any guarantor shall become involved in financial difficulties, such as failing generally to pay its debts as they become due, filing a petition under any chapter of the bankruptcy code, or making an assignment for the benefit of creditors, or Sugar Phase 1 defaults in the performance of any contracts related to the Project subject to all applicable notice and cure periods therein, all liabilities of Borrower to the lender may be accelerated and the outstanding principal balance of the loan become immediately due and payable at the lender's option.

The foregoing descriptions of the Loan Agreement, Guaranty and Indemnity Agreement are qualified in their entirety by reference to the full text of such agreements, copies of which are attached hereto as Exhibits 10.1, 10.2, and 10.3, respectively, and each of which is incorporated herein in its entirety by reference.