Document:

Exhibit 10.7

 

	 	11111
                                            Santa Monica Boulevard

Suite
800

Los
Angeles, CA 90025 www.industrialrealtygroup.com

 

October
24, 2022

 

Michael
Crawford

Hall of Fame Village

2014
Champions Gateway

Canton,
OH 447708

 

		Re:	Commitment
                                            to Lend- Construction Loan for Hotel

Hall
of Fame Village Powered by Johnson Controls, Canton, Ohio

 

Dear
Mr. Crawford:

 

The
following commitment to lend sets forth an outline of the preliminary loan terms for a proposed financing to be arranged or provided
by Lender. The loan has been approved by Lender’s Credit Committee, and no further approvals or consents are required except as set forth
herein.

 

Summary
of Principal Terms

 

	Lender:	Industrial
                                            Realty Group, Inc. (“Lender”) or an affiliated entity selected by Lender.
	 	 
	Borrower:	HOF
                                            Village Hotel WP, LLC, a Delaware limited liability company (“Borrower”),
                                            a single-purpose, bankruptcy remote entity.

	 	 
	Guarantor(s):	Hall
                                            of Fame Resort & Entertainment Company (“Guarantor”).
	 	 
	Property:	Approximately
                                            1.64 acres of land located in the Hall of Fame Village, Canton, Ohio, 44708 (the “Property”),
                                            to be developed with an approximately 180-room family hotel (the “Project”).
                                            The Project will be located adjacent to the indoor water park facility presently under construction.
	 	 
	Loan
Purpose:	Financing
                                            a portion of the Borrower’s costs and expenses in connection with the ground-up development
                                            of the Project, pursuant to standard and customary mutually acceptable documentation (the
                                            “Facility Documentation”).

 

	Total
Loan Amount:	$28,000,000
                                            (the “Loan” or “Total Loan Amount”).

 

	Target
Closing Date: 	TBD,
                                            but no later than March 31, 2023.

 

     

     

    

 

	 	11111
                                            Santa Monica Boulevard

Suite
800

Los
Angeles, CA 90025 www.industrialrealtygroup.com

 

	Loan
Term:	Two
                                            (2) year term with one (1) option to extend for twelve (12) months, subject to standard extension
                                            conditions.

 

	Collateral:	The
                                            collateral for the Loan shall include, without limitation: (a) a first priority perfected
                                            mortgage encumbering the Property; (b) a first priority perfected assignment of leases and
                                            rents with respect to the Property; (c) a first priority perfected assignment of all permits,
                                            licenses, entitlements, approvals, and contracts with respect to the Property; (d) UCC-1
                                            financing statements (all personal property, fixture filing and accounts and reserves); (e)
                                            equity pledge; and (f) all other agreements and assurances customary in similar financings
                                            by Lender.

 

	Interest
Rate:	The
                                            Loan will bear interest at a variable rate per annum equal to the one month Term SOFR plus
                                            6% (“Interest Rate”). SOFR floor subject to the greater of (a) 4% and (b)
                                            prevailing SOFR at Loan closing.

 

	Origination
Fee:	1%
                                            of the Total Loan Amount, payable in full at closing.

 

	Amortization:	Interest
only during the initial 2-year term; 25-year amortization during the extension term, if applicable.

 

	Recourse:	Full
recourse to the Borrower and Guarantor.

 

	Events
of Default:	 Usual and customary for loan transactions of this type and size.

 

	General Closing
    Requirements:	The requirements which must be satisfied prior to closing shall include, among other things, the following:

 

		(a)	Receipt
of (i) the appraisal; (ii) a “Phase I” environmental site assessment and, if required by the Lender, a “Phase II”
environmental site assessment; and (iii) an engineering report.

 

		(b)	A
satisfactory “plan and cost” review report from Lender’s consultant, after reviewing the Project Costs and the construction
documents.

 

		(c)	Fully
executed definitive Facility Documentation including, but not limited to, a mortgage note, the mortgage, a building loan agreement (and,
if applicable, a project loan agreement), the other collateral documents, the guarantees, the environmental indemnity, assignments
of the third party documents, and all other documents pertaining to the Loan, made by Borrower and/or any Guarantors in favor of, with
or for the benefit of, Lender.

 

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	 	11111
                                            Santa Monica Boulevard

Suite
800

Los
Angeles, CA 90025 www.industrialrealtygroup.com

 

		(d)	Approval
                                            of general contractor and the Guaranteed Maximum Price contract.

 

		(e)	Evidence
                                            of proper zoning and permitting and certificates of occupancy (if applicable).

 

		(f)	Proof
                                            of (i) “special form” insurance (including flood, hurricane, earthquake, fire,
                                            and other casualty insurance, if deemed applicable) for the full replacement value of the
                                            buildings, structures, and other improvements located on the Property, naming the Lender
                                            as lender loss payee and mortgagee, (ii) commercial general liability insurance with respect
                                            to the Property, (iii) builders risk insurance, and (iv) workman’s compensation insurance,
                                            naming the Lender as an additional insured, in such amounts as may be required by the Lender,
                                            in its sole and absolute discretion.

 

		(g)	Opinions
                                            in form, scope, content and from counsel for the Borrower and Guarantor acceptable to Lender
                                            and subject to such assumptions and qualifications as may be acceptable to Lender.

 

		(h)	Such
                                            other requirements as may be requested by the Lender.

 

	Representations And Warranties / Covenants:	Usual and customary for loan transactions of this type.

 

	Information Sharing:	Borrower and Lender shall be authorized to disseminate
any and all information it obtains in connection with the Loan, including, without limitation, any credit and other information with
respect to the Borrower and the Guarantors and their respective affiliates to any employee, agent, attorney, accountant, advisor, assignee,
investor or prospective assignee or investor, any rating agency, any affiliate of the Lender, any federal or state regulatory entity
having jurisdiction over the Lender and to any other person or entity the Lender or Borrower deems necessary or appropriate in connection
with the closing of the Loan, provided that any such third parties are bound by confidentiality and subject to SEC public company disclosure
requirements.

 

	Expenses:	The Borrower will pay all out-of-pocket and documented
costs incurred by Lender in connection with the Loan, funding of the Loan or any extension of the Loan, including, but not limited to,
the following: title review, insurance fees, mortgage recording fees, processing and third-party underwriting fees, the costs of third-party
reports, Lender’s out-of-pocket legal costs, travel and any other due diligence costs.

 

[Signatures
contained on the following page]

 

    3

     

    

 

	 	11111
                                            Santa Monica Boulevard

Suite
800

Los
Angeles, CA 90025 www.industrialrealtygroup.com

 

If
this letter meets with your agreement, please sign and return. If this letter is not executed and delivered to Lender on or before November
15, 2022, the Lender’s willingness to proceed under the terms hereof shall automatically terminate and this letter and the summary of
principal terms shall be of no further force or effect.

 

Very
truly yours,

 

INDUSTRIAL
REALTY GROUP, INC.,

a
Nevada limited liability company

 

	By:	 /s/ John A. Mase	 
	Name:  	John A. Mase	 
	Title: 	Chief Executive Officer	 

 

AGREED
AND ACCEPTED BY:

 

Borrower:

 

HOF
Village Hotel WP, LLC

 

	By: 	/s/ Michael Crawford	 
	Name:  	Michael Crawford	 
	Title: 	President and Chief Executive Officer	 
	Date: 	November 3, 2022	 

 

Guarantor:

 

Hall
of Fame Resort & Entertainment Company

 

	By: 	/s/ Michael Crawford	 
	Name:  	Michael Crawford	 
	Title:	 President and Chief Executive Officer	 
	Date: 	November 3, 2022	 

 

 

4Exhibit 10.8

 

		IRG 

Industrial Realty Group, LLC	 	11111 Santa Monica Boulevard

Suite800

Los Angeles, CA 90025
	 	 	 	www.lndustrlalrealtygroup.com

 

November 7, 2022

 

Hall of Fame Resort & Entertainment Company

2014 Champions Gateway

Canton, OH 447708

Attention: Mr. Michael Crawford

 

	Re:	Financing Proposal (revised)

 

Dear Mike:

 

Industrial Realty Group, LLC and its various affiliates and related
parties (referenced herein as “IRG”) are being asked to make certain accommodations and financing arrangements for the benefit
of Hall of Fame Resort & Entertainment Company and its subsidiaries (referenced herein as “HOFREC”) as set forth below.
The following are the items IRG will perform or provide:

 

		A.	Coordinate the financing with Oak Street for the waterpark.

 

		B.	Extend the CH Capital bridge loan with a balance due of $7,360,927 as of October 31,
2022 (subject to any mathematical corrections), from September 10, 2022 to March 31, 2024.

 

		C.	Provide an extension option to HOFREC for all the IRG loans for one additional year
until March 31, 2025 for a one point extension fee.

 

		D.	Release the first mortgage lien secured by a leasehold interest in the stadium and
pledge of the membership interests in HOF Village Stadium, LLC to allow the waterpark loan to close.

 

		E.	Provide a commitment for financing the Tapestry Hotel as set forth in the Commitment
letter, dated October 24, 2022.

 

		F.	Provide a completion guaranty for construction of the waterpark as required.

 

IRG
and its affiliated entities are willing to provide the foregoing in consideration for the following:

 

		1.	HOFREC shall make a payment of $4,500,000 from the loan proceeds of the Oak Street
financing as a fee for providing the completion guaranty and other consideration described above, payable to CH Capital Lender, LLC to
be held in trust for the IRG lenders and allocated as the IRG Lenders shall determine.

 

		2.	All IRG loans will be modified to bear interest at 12.5% per annum, compounded
monthly, with payment required monthly at 8% per annum, and the balance accrued and deferred until maturity.

 

		3.	All IRG notes and the term loan will be modified to be convertible into shares
of HOFREC common stock, par value $0.0001 per share (“Common Stock”), at the option of the IRG lender at a conversion price
equal to 105% of the Market Price. For purposes of paragraphs 3 and 4, “Market Price” will be defined as the average Nasdaq
Official Closing Price of the Common Stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the date of the
Oak Street closing.

 

     

     

    

 

		IRB

Industrial Realty Group, LLC	 	11111 Santa Monica Boulevard

Suite 800

Los Angeles, CA 90025
	 	 	 	www.industrialrealtygroup.com

 

		4.	HOFREC Series C through Series G warrants held by IRG shall be modified to reset
the exercise price equal to 105% of the Market Price.

 

		5.	The expiration dates for HOFREC Series C through Series G warrants held by IRG shall be extended two years from their current expiration
dates.

 

		6.	HOFREC shall issue an aggregate of 2,000,000 shares of Common Stock (NASD: HOFV)
to IRG Lenders in such proportion as the IRG Lenders shall agree.

 

		7.	Record a blanket junior mortgage on all real estate owned or leased by HOFREC,
whether fee or leasehold estates, other than those parcels for which existing lenders prohibit junior financing.

 

		8.	Acknowledge pledge of 100% membership interest in HOF Village Newco, LLC from
HOFREC and reflect that it secures the outstanding balance due.

 

		9.	All future development fees owed by HOFREC to IRG will be paid as and when due;
and prior development fees owed by HOFREC to IRG will be accrued and added to the CH Capital bridge loan.

 

		10.	All IRG loans will be cross-collateralized and cross-defaulted.

 

		11.	Covenant for HOFREC and its subsidiaries to not assign, pledge, mortgage, encumber
or hypothecate any of the underlying assets, membership interests in affiliated entities or IP rights without IRG’s written consent.

 

		12.	HOFREC shall pay to IRG 25% of
all contractual dispute cash settlements collected by HOFREC with regard to existing
contractual disputes in settlement discussions, which shall be applied to outstanding
IRG loans, first against accrued interest and other charges and then against principal.

 

		13.	The parties shall comply with all federal and state securities laws and Nasdaq
listing rules and agree to insert “blocker” provisions for the re-pricing of warrants and conversion provisions on the IRG notes,
such that the total cumulative number of shares of Common Stock that may be issued to IRG under this letter agreement, including the repriced
warrants and convertible debt, may not exceed the requirements of Nasdaq Listing Rule 5635(d) (“Nasdaq 19.99% Cap”), except
that such limitation will not apply following Approval (defined below). The parties do not agree to any terms in this letter agreement
that do not comply with Nasdaq 5635(c). HOFREC will exercise reasonable efforts to obtain shareholder approval of the issuance of shares
of Common Stock in excess of the Nasdaq 19.99% Cap under the transactions contemplated by this letter agreement, as necessary (“Approval”),
no later than the next annual shareholder meeting.

 

[Signature page follows]

 

    2

     

    

 

		IRG

Industrial Realty Group, LLC	 	11111 Santa Monica Boulevard

Suite800

Los Angeles, CA 90025
	 	 	 	www.industrialrealtygroup.com

 

If the
foregoing meets with your approval, please indicate your acceptance of the terms set forth in this letter agreement by signing in the
space provided below and on the enclosed copy and by returning the copy to us. This letter agreement may be signed in one or more counterparts
each of which shall be deemed an original hereof.

 

This
shall be a binding agreement following the affirmative vote or written consent of our respective boards of directors. The parties agree
to cooperate in good faith to consummate and document the foregoing within 30 days following the closing of the Oak Street financing
transaction for the waterpark.

 

	 	Very truly yours,
	 	 
	 	INDUSTRIAL REALTY GROUP, LLC
	 	a Nevada limited liability company
	 	 	 
	 	By:	/s/ John A. Mase
	 	Name: 	John A. Mase
	 	Title:	Chief Executive Officer

 

	AGREED, as of the date first set forth above.	 
	 	 
	HALL OF FAME RESORT & 

ENTERTAINMENT COMPANY	 
	a Delaware corporation	 
	 	 	 
	By:	/s/ Michael Crawford	 
	Name: 	Michael Crawford	 
	Title:	President and Chief Executive Officer	 

 

 

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