Document:

Exhibit 10.2 

 

 

GUARANTY

 

 

May Properties, LLC, a Texas limited liability company, hereinafter referred to as “Landlord” and SG Echo, LLC, a
Delaware limited liability company, hereinafter referred to as “Tenant”, entered into a Lease dated October 28, 2021 (the
“Lease”), relating to certain real property located at 101 Waldron Road, Durant, Oklahoma (the “Property”). Tenant
is an affiliate of SG Blocks, Inc., a Delaware corporation, hereinafter referred to as “Guarantor”.

 

 

NOW THEREFORE, for and
in consideration of the execution of the Lease by Landlord and as a material inducement to Landlord to execute the Lease, Guarantor hereby
jointly, severally, unconditionally and irrevocably guarantees the prompt payment by Tenant of all sums payable by Tenant under the Lease
and the faithful and prompt performance by Tenant of each and every one of the terms, conditions and covenants of the Lease to be kept
and performed by Tenant as such are defined in the Lease. The reduction of or limitation on any liabilities of Tenant under the Lease
pursuant to any federal or state bankruptcy or insolvency proceeding shall not cause a reduction in or otherwise affect the liabilities
or obligations of Guarantor under this Guaranty.

 

It is specifically agreed and understood that so long as the Tenant under the Lease is
an affiliate of Guarantor, the terms of the Lease may be altered, affected, modified or changed by agreement between the Tenant and Landlord
without consent or notice to Guarantor and that this Guaranty shall thereupon and thereafter guarantee the performance of the Lease as
so changed, modified, altered or assigned. Notwithstanding anything to the contrary contained herein, upon Tenant’s satisfactory
completion of the Tenant Work, as that term is defined in the Lease, Landlord will release this Guaranty and it shall terminate and be
of no further legal force or effect.

 

No notice of default need be given to Guarantor, it being specifically agreed and understood that
the guarantee of the undersigned is a continuing guarantee under which Landlord may proceed forthwith and immediately against Tenant or
against Guarantor following any breach or default by Tenant or for the enforcement of any rights that Landlord may have as against Tenant
pursuant to or under the terms of the Lease or at law or in equity.

 

Landlord shall have the right to proceed against Guarantor hereunder
following any default by Tenant without first proceeding against Tenant and without previous notice to or demand upon either Tenant or
Guarantor.

 

Guarantor hereby waives (a) notice of acceptance of this Guaranty, (b) demand of payment, presentation and protest, and (c)
any right to require Landlord to proceed against Tenant or any other Guarantor or any other person or entity liable to Tenant.

 

This Guaranty,
all acts and transactions hereunder and the rights and obligations of the parties hereto shall be governed by and construed and enforced
in accordance with the laws of the State of Oklahoma. All actions or proceedings arising directly or indirectly hereunder will be litigated
in courts having situs within the State of Oklahoma, and Guarantor hereby expressly consents to the jurisdiction of any such local, state
or federal court, and consents that any service of process in such action or proceeding may be made by personal service upon Guarantor
wherever Guarantor may then be located, or by certified or registered mail directed to Guarantor at 195 Montague Street, 14th Floor, Brooklyn
New York, NY. (CONTINUED ON FOLLOWING PAGE)

     

     

    

 

IN WITNESS WHEREOF, Guarantor has executed
this Guaranty as of this 28 day of October, 2021.

 

	 	SG BLOCKS, INC., a Delaware corporation
	 	 	 
	 	By:	/s/
                                            Paul M. GalvinExhibit 10.3

LOAN AGREEMENT

 

	Durant Industrial Authority	SG Echo, LLC	SG Blocks, Inc.
	300 W. Evergreen	101 Waldron Road	195 Montague Street
	Durant, OK 74701	Durant, OK 74701	Brooklyn, NY 11201
	(hereinafter “Lender”)	(hereinafter “Borrower)	(hereinafter “Guarantor)
	
     

    $750,000
	
     

    October 29, 2021
	
     

    April 29, 2029

	Note Amount	Effective Date	Maturity Date

The Borrower,
with its principal office, place of record-keeping and mailing address stated above, has applied to Lender for a loan to be evidenced
by Borrower's promissory note dated effective October 29, 2021, in the principal amount of $750,000.00 bearing interest
at the rates therein specified and containing certain other terms and conditions as set forth therein (the "Note").

In consideration of Lender making such
loan, Borrower agrees as follows:

SECTION I. REPRESENTATIONS AND
WARRANTIES.

Borrower represents to Lender that:

		(a)	The foregoing statements concerning Borrower are true and correct;

		(b)	This Loan Agreement, Note, and any other instrument
contemplated in connection herewith (the "Loan Documents"), have been duly authorized, executed and delivered, and constitute
the legal and binding obligations of Borrower enforceable in accordance with their terms, and are not in conflict with any provision of
law or of the articles of incorporation or by-laws of Borrower or any other agreement to which Borrower is a party;

		(c)	There are no known actions, suits or proceedings against
Borrower (for which adequate reserves have not been made on Borrower's books) at law or in equity, or before or by any governmental body
or instrumentality, domestic or foreign; and contingent liabilities of Borrower are fully disclosed in the Financial Information referred
to above;

		(d)	Borrower is not a party to any agreement or instrument
or subject to any charter or other corporate restriction materially and adversely affecting its business, properties, assets, operations
or its general condition whether financial or otherwise;

		(e)	No certificate or statement herewith or heretofore
delivered by Borrower to Lender in connection herewith, or in connection with any transaction contemplated hereby, contains any untrue
statement of a material fact or fails to state any material fact necessary to keep the statements contained therein from being misleading.

    

     

    

SECTION II. POSITIVE COVENANTS.

Borrower covenants to:

		(a)	Furnish to Lender within a period not to exceed forty-five
(45) days after the closing of each calendar quarter, a true and correct Oklahoma Tax Report in form and substance acceptable to Lender;

		(b)	Furnish to Lender within a period not to exceed forty-five
(45) days after the closing of each calendar quarter, an employee summary, in form and substance acceptable to Lender;

		(c)	At all times during the term of the Note, maintain
a minimum of seventy (75) full time employees of Borrower, as that term is defined by applicable federal and state statutes and regulations.
This covenant shall be tested on an annual basis, as of December 31 of

each year, beginning December 31,
2022. Borrower will have twenty four (24) months in which to fully comply with this provision.

		(d)	Comply with the requirement to maintain Hourly Wages
of 1.5 times the Federally Mandated Minimum Wage, as established on the date of this Agreement, for all employees. For the purposes of
this Agreement, the term "Federally Mandated Minimum Wage" shall mean the sum of $7.25 per employee hour worked. This covenant
shall be tested on an annual basis, as of December 31 of each year, beginning December 31, 2022.

		(e)	Offer health insurance benefits to all employees
of Borrower as prescribed in Oklahoma Statutes Annotated, Title 68, Section 3603 effective as of the date of this Agreement. This covenant
shall be tested on an annual basis, as of December 31 of each year, beginning December 31, 2022;

		(f)	Offer 401K plan benefits to all full-time employees of Borrower;

		(g)	At all times keep true and complete books, records
and accounts, and permit Lender through its agents and representatives to visit and inspect Borrower's properties located in Durant, Oklahoma,
and to discuss Borrower's affairs, finances and accounts related to its Durant, Oklahoma facility with its officers, all at such reasonable
times as Lender may desire;

		(h)	Maintain and keep in full force and effect, its existence
as a limited liability company, duly authorized to transact business in the state of Oklahoma, rights and franchises and comply with all
laws applicable to Borrower;

		(i)	Pay or cause to be paid all taxes, assessments and
other governmental charges levied upon any of Borrower's properties or in respect of franchises or income before the same became delinquent,
unless the same is being contested in good faith by appropriate proceedings and reserves deemed adequate by Lender have been established
therefor;

		(j)	Pay all lawful claims, whether for labor, materials
or otherwise, which might or could, if unpaid, become a lien or charge on any property or assets of Borrower, unless the same is being
contested in good faith by appropriate proceedings and reserves deemed adequate to Lender have been established therefor;

		(k)	Comply fully with all of the provisions of the Loan Documents;

		(l)	Give immediate notification to Lender of any litigation,
or of any claim or controversy which might become the subject of litigation, of any Federal tax lien, assessment or knowledge of a proposed
tax assessment which would have a material adverse financial impact upon Borrower.

SECTION III. NEGATIVE COVENANTS.

 

Until the Note
and all other obligations and liabilities of Borrower hereunder are fully paid, Borrower covenants that it will not, without prior written
consent of Lender, suffer or permit any Event of Default to occur under the Loan Documents but shall faithfully preserve and perform all
of their covenants;

 

    

     

    

SECTION IV. DEFAULT.

Each of the following events shall constitute
an Event of Default:

		(a)	Failure to comply with the Positive Covenants of Section II of this Loan Agreement.

		(b)	Default in the performance of any covenant or provision of any Loan Documents.

		(c)	Borrower shall: (a) execute an assignment for the
benefit of creditors or take any action in furtherance thereof; or (b) admit in writing inability to pay its debts generally as they become
due; or (c) as a debtor, file a petition, case, proceeding, or other action pursuant to, or voluntarily seek the benefit or benefits of
any debtor relief law or take any action in furtherance thereof; or (d) seek, acquiesce in, or suffer the appointment of a receiver, trustee,
or custodian of Borrower; or (e) voluntarily become a party to any proceeding seeking to effect a suspension or having the effect of suspending
any of the rights of Lender granted or referred to in the Loan Documents or take any action in furtherance

thereof.

		(d)	The filing of a petition, case, proceeding, or other
action against Borrower, as a debtor under any debtor relief law; or seeking appointment of a receiver, trustee, or custodian of Borrower
that affects its ability to perform under the Note, or seeking to effect a suspension or having the effect of suspending any of the rights
of Lender granted or referred to in the Loan Documents, and: Borrower admits, acquiesces in, or fails to contest the material allegations
thereof; or (b) the petition, case, proceeding, or other action results in entry of an order for relief or order granting the relief sought
against Borrower; or (c) the petition, case, proceeding, or other action is not permanently dismissed on or before the earliest of trial
thereon or sixty (60) days next following the date of its filing.

		(e)	The discovery by Lender that any warranty, covenant,
or representation made to Lender by or on behalf of Borrower is false, misleading, erroneous, or breached in any material respect.

		(f)	A default shall not be an Event of Default if the
default is cured within thirty (30) days following the delivery of or the mailing of written notice from Lender to Borrower's most current
address as reflected in Lender's business records specifying the existence of any such default. If such default is not cured within the
thirty (30) day period, the default shall be an Event of Default without need of any further notice or action by Lender.

		(g)	Upon the occurrence of any such Event of Default,
Lender at its option, without written notice, demand or presentation, which are hereby waived, may declare the unpaid principal of and
accrued interest then owing upon the Note and any other indebtedness of Borrower to Lender, to be immediately due and payable, and upon
such declaration such principal and interest shall become and be forthwith due and payable.

 

Upon any default, Lender is entitled
to the entirety of loaned amount, interest, attorney fees, and collection costs except as specifically set forth herein. Borrower shall
receive credit for all times in which it was in compliance with the terms herein prior to the default. The following shall serve as an
example: The term of the note is 90 months. If Borrower maintains full compliance with the terms herein – maintaining sufficient
number of employees with required pay and benefits – for 27 months before defaulting, Borrower shall be responsible for repaying
the borrowed $750,000 less $225,000 (27/90 x $750,000) for a total repayment of $525,000.

 

SECTION V. MISCELLANEOUS.

All covenants
and agreements contained herein shall bind and inure to the benefit of, and be enforceable by, the respective successors and assigns of
the parties hereto, whether so expressed or not, and in particular shall inure to the benefit of and be enforceable by the holder of the
Note. No modification, consent, amendment or waiver of any provision of this Agreement, nor consent to any departure by Borrower therefrom
shall be effective unless the same shall be in writing and signed by an officer of Lender, and then shall be effective only in the specific
instance and for the purpose for which given. This Agreement shall be construed and enforced in accordance with the laws of the State
of Oklahoma and any portion hereof held by a court of competent jurisdiction to be invalid or illegal shall not invalidate or nullify
the remainder of this Agreement, but shall be confined only to that portion held invalid or illegal. No failure or delay on the part of
Lender to exercise any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise by Lender of any right
hereunder preclude any other or further exercise thereof. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted principals
of good accounting practice consistently applied on the basis used by Borrower in prior years.

    

     

    

Any notice under
this Agreement shall be in writing and shall be effective when actually delivered or, if mailed, shall be deemed effective when deposited
in the United States mail first class, certified mail, postage prepaid, directed to the addresses shown near the beginning of this Agreement.
Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that
the purpose of the notice is to change the party's address. For notice purposes, Borrower agrees to keep Lender informed at all times
of Borrower's current address.

 

Executed this 29th day of October.

 

Lender:

 

Durant Industrial Authority

 

By: /s/Lisa Taylor                                                             

Lisa Taylor, Executive Director

 

 

Borrower:

 

SG Echo, LLC

 

By:
/s/ Paul M. Galvin                                                      

Paul Gavin, Managing Member

 

 

Guarantor:

 

SG Blocks, Inc.

 

By: /s/ Gerald Sheeran                                                      

Gerald Sheeran, Acting Chief Financial Officer

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