SEC Contract Filing

Filing Date: 2025-01-22

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ea022831801ex10-3_safe.htm
<DESCRIPTION>INDEMNITY AGREEMENT, DATED JANUARY 16, 2025
<TEXT>
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<P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit 10.3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0"><IMG SRC="ex10-3_001.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">INDEMNITY AGREEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">LOAN NO. 75002</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS INDEMNITY AGREEMENT
(this &ldquo;<B><I>Agreement</I></B>&rdquo;), dated for reference purposes as of January 16, 2025, is executed by Sugar Phase 1, LLC,
a Texas limited liability company (&ldquo;<B><I>Borrower</I></B>&rdquo;), and Matthew Pierson, Ricardo Valdez, Safe and Green Development
Corporation, a Delaware corporation, and Properties by Milk &amp; Honey LLC, a Texas limited liability company (individually and collectively
if more than one, &ldquo;<B><I>Guarantor</I></B>&rdquo;), for the benefit of Construction Loan Services II, LLC, a Washington limited
liability company (&ldquo;<B><I>Lender</I></B>&rdquo;), and the other Indemnified Parties (defined below). Borrower and Guarantor are
at times referred to herein individually and collectively as &ldquo;<B><I>Indemnitor</I></B>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>RECITALS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>A.
</B>Indemnitor has requested that Lender make one or more loans to Borrower.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>B. </B>Borrower
is the fee owner of that certain real property located in Hidalgo County, Texas, and more particularly described in Exhibit A attached
hereto (said real property, together with any real property hereafter encumbered by the lien of the Security Instrument (defined below),
being herein collectively referred to as the &ldquo;<B><I>Land</I></B>&rdquo;; which, together with all structures, buildings and improvements
now or hereafter located on the Land, being collectively referred to as the &ldquo;<B><I>Property</I></B>&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>C. </B>Lender
is prepared to make a loan (the &ldquo;<B><I>Loan</I></B>&rdquo;) to Borrower in the principal amount of $1,092,672.75, to be evidenced
by a certain Promissory Note of even date herewith made by Borrower in favor of Lender (the &ldquo;<B><I>Note</I></B>&rdquo;) and that
certain Loan Agreement of even date herewith (the &ldquo;<B><I>Loan Agreement</I></B>&rdquo;) and secured by, among other things, a Deed
of Trust, Deed to Secure Debt, Trust Deed, or Mortgage (in each case also constituting an Assignment of Contracts and Plans, Assignment
of Leases and Rents, and Fixture Filing) of even date herewith (the &ldquo;<B><I>Security Instrument</I></B>&rdquo;) that will encumber
the Property.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>D. </B>Lender
is unwilling to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties, and covenants and
other matters described in this Agreement for the benefit of Lender and the other Indemnified Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>AGREEMENT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">In order to induce the Lender to make the Loan
to Borrower, and in consideration of the substantial benefit Indemnitor will derive from the Loan, Indemnitor agrees as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>1. DEFINITIONS.</B>
Capitalized terms used, but not specifically defined, herein shall have the respective meanings ascribed to such terms in the Security
Instrument or the Other Security Documents (as defined below). As used in this Agreement, the following terms shall have the following
meanings:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>1.1 </B>The
term &ldquo;<B><I>Building Laws</I></B>&rdquo; means the Fair Housing Act of 1968 as amended, the Americans With