SEC Contract Filing

Filing Date: 2024-09-27

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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 <title>SusGlobal Energy Corp.: Exhibit 10.1 - Filed by newsfilecorp.com</title>
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 <p style="text-align: right; margin-bottom: 0pt;">Gillam Group</p>
 <p style="text-align: right; margin-top: 0pt; margin-bottom: 0pt;">36 Northland Road</p>
 <p style="text-align: right; margin-top: 0pt; margin-bottom: 0pt;">Unit 3</p>
 <p style="text-align: right; margin-top: 0pt; margin-bottom: 0pt;">Toronto, ON</p>
 <p style="text-align: right; margin-top: 0pt;">M4B 3E4</p>
 <p style="text-align: justify;">July 29, 2024</p>
 <p style="text-align: justify; margin-bottom: 0pt;">SusGlobal Energy Canada 1 Ltd</p>
 <p style="text-align: justify; margin-top: 0pt; margin-bottom: 0pt;">200 Davenport Road</p>
 <p style="text-align: justify; margin-top: 0pt;">Toronto, ON M5R 1J2</p>
 <p style="text-align: justify;">Dear Sirs:</p>
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 <p style="text-align: left;"><b>Re:</b></p>
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 <p style="text-align: justify;"><b>Gillam Construction Group Ltd. (the "<i>Lender</i>") mortgage loan to SusGlobal Energy Canada 1 Ltd. (the "<i>Borrower</i>") regarding 520 Nash Road North, Hamilton, ON (the "<i>Property</i>") <br></b></p>
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 <p style="text-align: justify;">This letter agreement sets out the terms and condition of the mortgage loan between the Lender and the Borrower, as follows:</p>
 <p style="text-align: justify;">1.<font style="width: 27.75pt; display: inline-block;">&#160;</font><b><u>Purpose(s) of Loan:</u></b></p>
 <p style="text-align: justify;">The purpose of the loan (the "<b><i>Loan</i></b>") is to settle certain claims between the Borrower and the Lender in the amount of three million dollars ($3,000,000) (the "<b><i>Loan Amount</i></b>").</p>
 <p style="text-align: justify;">2.<font style="width: 27.75pt; display: inline-block;">&#160;</font><b><u>Loan Amount:</u></b></p>
 <p style="text-align: justify;">During the Term (as defined in Section 3 below) the Loan Amount will, in no event, exceed three million dollars ($3,000,000). However, during the period up to and including November 30, 2024, the principal amount of the Loan shall be deemed to be two million, nine hundred thousand dollars ($2,900,000) for purposes of repayment by the Borrower. The principal amount of the Loan shall automatically be deemed to be three million dollars ($3,000,000) on December 1, 2024, if the Loan has not been paid in full before such date.</p>
 <p style="text-align: justify;">3.<font style="width: 27.75pt; display: inline-block;">&#160;</font><b><u>Term:</u></b></p>
 <p style="text-align: justify;">The term of the Loan (the "<b><i>Term</i></b>") will be a fixed period of six (6) months and four (4) days, commencing on July 29, 2024 (the "<b><i>Commencement Date</i></b>") and expiring on February 1, 2025 (the "<b><i>Term Expiry Date</i></b>").</p>
 <p style="text-align: justify;">4<font style="width: 30.75pt; display: inline-block;">&#160;</font><b><u>Interest Rate:</u></b></p>
 <p style="text-align: justify; margin-bottom: 0pt;">From and including the Commencement Date up to and including November 30, 2024, the Loan shall be interest free. From and including December 1, 2024 up to and including the Term Expiry Date, interest will accrue on the principal amount outstanding from time to time under the Loan and until the Loan is paid in full, at a variable rate per annum equivalent to four percent (4.0%) over the Bank of Nova Scotia Prime Rate as varied from time to time, (such resulting rate to be referred to as the "<b><i>Interest Rate</i></b>"), calculated daily, not in advance, both before and after default and judgment, with interest on overdue interest at the same rate. The Bank of Nova Scotia Prime Rate means the annual rate of interest announced from time to time by the Bank of Nova Scotia as its reference rate of interest then in effect for determining interest rates on Canadian Dollars denominated commercial loans in effect during that period of time, as determined by the Lender, effective on the 1st and 16th day of each month.</p>
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 <p style="text-align: justify;">5.<font style="width: 27.75pt; display: inline-block;">&#160;</font><b><u>Payment:</u></b></p>
 <p style="text-align: justify;">From and including December 1, 2024 and up to the Term Expiry Date, interest only, calculated at the Interest Rate, will be due and payable in arrears, with the first payment of interest to be due and payable on or before January 1, 2025 and subsequent payments to be due and payable monthly on or before the first day of each successive month thereafter. The principal and accrued and unpaid interest will be due on or before the Term Expiry Date.</p>
 <p style="text-align: justify;">6<font style="width: 30.75pt; display: inline-block;">&#160;</font><b><u>Prepayment Privilege:</u></b></p>
 <p style="text-align: justify;">The Loan will be fully open and prepayment in full (but not in part) can be made at any time. Up to and including November 30, 2024, the Borrower can prepay the Loan upon remittance of two million, nine hundred thousand dollars ($2,900,000) to the Lender. From and including December 1, 2024 and thereafter through the Term, the Borrower can prepay the Loan upon remittance of three million dollars ($3,000,000) plus accrued interest to the Lender. There shall be no additional fees or costs payab