globalgold_10q-ex1009.htm


    Exhibit 10.9

     

     

    
      GLOBAL GOLD CORPORATION 

      45 East
Putnam Avenue   •   Greenwich, CT
06830

      Tel:
203.422.2300   •   Fax: 203.422.2330

      Email:
ggc@globalgoldcorp.com

    

     

    
 

    


    Ian
Hague                                                                                                                                        September
23, 2008

    New York
City

    


    


    RE: Loan to Global Gold
Corporation and Royalty

    


    Dear
Ian:

    


     Following up on our discussions,
this letter confirms the restructured repayment and royalty terms of for:
(1)  the loan you are making to Global Gold Corporation (the
“Company”) pursuant to this agreement of  $289,632.88; (2) the loans
you have made earlier this year to the Company (the first, second and third
being pursuant to the agreements dated February 7, 2008, March 10, 2008, and
April 14, 2008); and (3) the “advance” you made to the Company (pursuant to the
Sale of Chilean Interests agreement dated July 31, 2008, and together with the
amounts referred to in (1) and (2) above collectively referred to here as the
“Loan,” all acknowledged as being made by  you, Ian Hague, in your
personal capacity only and not acting on behalf of any other person or entity.)
As of September 23, 2008, the total principal amount of the Loan is
$3,500,000.

    


    The Loan
shall accrue interest, from September 23, 2008 until the day it is repaid by the
Company, at an annual rate of 10% (the “Interest”). Interest shall be calculated
on the basis of a year of 365 or 366 days, as applicable, and charged for the
actual number of days elapsed. The Company agrees to repay the Loan, in full,
and all the Interest accrued thereon in equal monthly installments including
principal and accrued interest commencing June 1, 2009 and continuing until the
loan is fully repaid with the final payment on May 1, 2011.   The
Company may prepay this loan in full at any time.

     

    
      In
addition, The Company hereby grants you a 1.75% royalty payable from
distributions to the Company from the sale of gold and all other metals produced
from the Madre De Dios property currently included in the Global Gold Valdivia
joint venture with members of the Quijano family and as referenced in the
Company’s filings with the Securities and Exchange Commission (the “Royalty”).
The Royalty shall be paid quarterly, subject to the Company’s receipt of the
Joint Venture’s distributions, and shall be accompanied by a statement
summarizing the calculations for the payment. The quarterly Royalty payments
will be provisional and subject to adjustment at the end of the Joint Venture’s
accounting year.  Upon reasonable notice and within no less than
thirty days from such notice but no more than two times per year, you shall be
entitled to inspect and audit production and sales records of the Company’s
Joint Venture interest.

    

    


    Thank you
again for your help, and please countersign below if these terms confirm our
agreement.

    


    
      	
              Sincerely, 

            	
              Acknowledged
      and Agreed

            
	 	 
	 	 
	
              _________________________ 

            	_______________________                 
      _________ 
	      
              Van
      Z.
      Krikorian,                                                                

              Chairman
      and CEO 

            	Ian
      Hague                                                      Date
	 	 


    

    
 

    Cc:
Global Gold Board of Directors