Document:

GameSquare Esports Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

    

    

    SECURED GRID PROMISSORY NOTE

    PRINCIPAL AMOUNT: UP TO CDN$250,000

     FOR VALUE RECEIVED, the undersigned, Gamesquare Inc. (the "Borrower"), promises to pay to or to the order of Magnolia Colombia Inc. (the "Holder"), the unpaid balance of all indebtedness of the Borrower to the Holder noted on the grid (the "Grid") attached to this note as Schedule "A" (the "Principal Amount") on the terms and conditions contained herein (the "Promissory Note").

    1. The Borrower agrees that all indebtedness of the Borrower to the Holder shall be evidenced on the Grid and the Borrower hereby authorizes the Holder to record thereon the amount of such indebtedness and any increase to such indebtedness.  The Borrower acknowledges, confirms and agrees with the Holder that all amounts recorded on the Grid will constitute prima facie evidence of the balance owing by the Borrower to the Holder under this Promissory Note and, in the absence of evidence to the contrary, will be conclusive evidence of such unpaid balance.  The Holder will give the Borrower written confirmation upon request of all notations made by it on the Grid, provided that the failure by the Holder to give such confirmation shall not impair the validity of any notation.

    2. The Principal Amount shall be payable within 5 days of the announcement of the termination of the reverse takeover transaction between the Borrower and the Holder as previously disclosed in a press release dated February 26, 2020 (the "Maturity Date").  This Promissory Note is made for business purposes and is a "business agreement" as defined in the Limitations Act, 2002 (the "Act").  No limitation periods set forth in the Act, other than the ultimate limitation period found in section 15 of the Act, shall apply to this Promissory Note and to the obligations imposed by this Promissory Note.  A claim may be made by the payee or holder in due course of this Promissory Note within the period of fifteen (15) years after default by the Borrower.

    3. The Borrower shall pay interest on the unpaid principal amount of the Loan outstanding at a rate per annum of 10.0%, calculated monthly and payable on the Maturity Date.

    4. The Borrower shall not assume, create, incur or suffer to exist any security interest (as such term is defined in the Personal Property Security Act (Ontario)) (a "Security Interest") upon any of its property, assets or undertaking which ranks in priority to, or pari passu with, the Security (as defined below) without the prior written consent of the Holder, which consent may be withheld in the Holder's sole discretion.

    5. The Borrower shall deliver or cause to be delivered to the Holder, upon request, security (the "Security") for its obligations under this Promissory Note, which Security shall include a general security agreement of the Borrower granting to the Holder a Security Interest in all present and future property, assets and undertaking of the Borrower.

    6. On the Maturity Date,

    (a) The entire Principal Amount then outstanding, and

    

    
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    (b) All other payments due hereunder including the interest that has accrued on the Principal Amount,

    shall, at the option of the Holder, become immediately due and payable, all without notice, presentment, protest, demand, notice of dishonour or any other demand or notice whatsoever, all of which are hereby expressly waived by the Borrower.  In such event the Holder may, in its discretion, immediately exercise any and all rights and remedies possessed by the Holder (a) pursuant to the terms of this Promissory Note or the Security and (b) at law, in equity or by statute for the recovery of all the indebtedness and liabilities of the Borrower to the Holder hereunder and the Holder may proceed to exercise any and all rights and remedies.

    7. All payments made hereunder by the Borrower shall be made without any set-off or counterclaim and will be made without deduction for or on account of any withholding or other taxes.

    8. At any time prior to demand, the Borrower shall have the right, but not the obligation, to repay the whole or any part of the Principal Amount then outstanding on the portion of the Principal Amount to be repaid without notice penalty or bonus.  Any and all repayments shall be applied to reduce the Principal Amount and the interest that has accrued thereon.

    9. The Borrower agrees that any and all costs and expenses incurred by the Holder in connection with the enforcement of, or default under, this Promissory Note shall be for the account of the Borrower.

    10. Time is of the essence of this Promissory Note.

    11. The undersigned hereby (a) waives presentment, notice and protest, (b) waives diligence in collection or bringing suit; and (c) consents to all extensions of time, renewals, waivers or modifications that may be granted at any time by the Holder with respect to this Promissory Note.

    12. Any demand to be made hereunder on the undersigned shall be in writing and delivered in person or transmitted by e-mail to the Borrower at 65 Queen Street West, Suite 805 Toronto, ON M5H 2M5 (kevin@Gamesquare.com).  Such demand shall be deemed to have been given and received on the day on which it was delivered or transmitted or, if any such day is not a business day, on the next following day.

    13. The Borrower acknowledges receipt of a true copy of this Promissory Note.

    14. This Promissory Note shall be assignable by the Holder in whole or in part at any time.  The Borrower may not assign its liabilities or obligations under this Promissory Note under any circumstances.

    

    
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    15. This Promissory Note and the rights and obligations of the Borrower and the Holder shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein (without regard to conflict of law principles).  The Borrower hereby agrees that the courts of the Province of Ontario shall have jurisdiction to entertain any action or other legal proceedings based on any provisions of this Promissory Note.  The undersigned hereby irrevocably attorns to the non-exclusive jurisdiction of the courts of the Province of Ontario.

    IN WITNESS WHEREOF, the Borrower has duly executed this Promissory Note on the date first above written.

     DATED at Toronto, Ontario as of this 19th day of March, 2020.

     

    	 	GAMESQUARE INC.	 
	 	 	 
	Per:	/s/ Kevin Wright	 
	Name:	Kevin Wright	 
	Title:	CEO	 

     

    

    
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    Schedule "A"

    	Date	
                Amount of

                Advance Made ($)

            	
                Amount of Advance

                Paid ($)

            	
                Outstanding

                Principal Balance ($)

            	Initials
	
                March     , 2020

            	
                250,000

            	
                 

            	
                250,000

            	
                 JLGameSquare Esports Inc.: Exhibit 4.2 - Filed by newsfilecorp.com

    

    LOAN AGREEMENT

    BETWEEN:

    RECIPROCITY CORP., a corporation incorporated under the laws of the Province of Ontario (hereinafter referred to as the "Borrower")

    OF THE FIRST PART

    - and -

    GAMESQUARE ESPORTS INC., a corporation existing under the laws of the Province of Ontario (hereinafter referred to as the "Lender")

    OF THE SECOND PART

    WHEREAS the Lender has agreed to lend and the Borrower has agreed to borrow US$250,000 (the "Loan") subject to the terms and conditions contained in this Loan Agreement;

    NOW THEREFORE in consideration of the mutual promises and covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

    1. The Loan

    The Lender hereby agrees to lend to the Borrower the principal sum of US$250,000 in lawful money of the United States (the "Principal"). The Borrower agrees that interest shall be calculated and payable at a rate of 8.0% per annum and in accordance with the terms of this Loan Agreement.  All interest shall be payable at the end of the Term (defined below). 

    2. Repayment

    The Borrower shall repay the Principal and all accrued interest in full by no later than 12 months following the date hereof (the "Term"). The Borrower may repay the Loan at any time prior to the end of the Term. 

    3. Use of Proceeds

    The Borrower shall use the proceeds of the Loan solely to hire key personnel to assist the Borrower in achieving its revenue goals.  

    4. Waivers Generally

    No waiver of any right or remedy of the Lender hereunder shall be effective unless in writing and signed by the Lender and any waiver granted by the Lender shall be effective only to the extent and in the circumstances specified therein.  No failure, delay or omission by the Lender to exercise or enforce any rights or remedies under this Loan Agreement shall constitute a waiver thereof or of any other rights or remedies of the Lender.

    

    5. Events of Default

    An event of default ("Event of Default") shall occur if:

    a. The Borrower shall fail to pay to the Lender any amount of Principal, interest or any other amount when due and payable hereunder;

    b. The Borrower shall fail to use the proceeds of the Loan exactly in accordance with the requirements set out in Section 3 hereunder;

    c. The Borrower shall sell or attempt to sell all or substantially all its assets;

    d. A creditor shall take or purport to take possession or to assert a prior claim, hypothec or lien in respect of any substantial part of the property of the Borrower and such procedure is not contested in good faith by the Borrower immediately upon such event, or if a lien, execution, distress or any process of any court be levied or enforced against any of the foregoing and remain unsatisfied for such period as would permit such property or such part thereof to be sold thereunder;

    e. A resolution is passed or a petition filed for the wind-up or liquidation of the Borrower or if the Borrower institutes proceedings under any bankruptcy, insolvency or analogous law or is adjudicated as bankrupt or insolvent, or consents to (or fails to contest in good faith) the institution of bankruptcy or insolvency proceedings against it or makes (or serves notice of intention to make) any proposal under any bankruptcy, insolvency or analogous laws, or consents (or fails to contest in good faith) to the filing of any such petition or to the appointment of a receiver of, or of any substantial part of, the property of the Borrower or makes a general assignment for the benefit of creditors, or makes or agrees to make any bulk sale without complying with the provisions of any applicable bulk sale provision, or admits (in writing or otherwise) its inability to pay its debts generally as they become due, or ceases or threatens to cease to carry on business as a going concern, or takes corporate action in furtherance of any of the aforesaid purposes; or

    f. In the event of any breach or default by the Borrower of its obligations, undertakings, covenants, representations and warranties pursuant to this Loan Agreement.

    In each and every such Event of Default the Lender may, at its option, by written notice to the Borrower declare the Principal advanced pursuant to this Loan Agreement outstanding hereunder, together with all other amounts payable hereunder (including any interest thereon accrued and unpaid), to be due and payable and the same shall forthwith become immediately due and payable to the Lender, anything therein or herein to the contrary notwithstanding, and the Borrower shall pay forthwith to the Lender the amount of the Principal then outstanding and all other amounts payable hereunder, from the date of the said declaration until payment is received by the Lender.

    Should an Event of Default occur, the Lender may, at its option, exercise its rights by any act, proceeding, recourse or procedure authorized or permitted by law and may file its proof and any other documents necessary or desirable so that the request of the Lender may be considered in any liquidation or other proceeding with respect to the Borrower.

    

    6. Miscellaneous

    No remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now existing or hereafter to exist by law or by statute.

    The delay or omission of the Lender to exercise any recourse mentioned above shall not invalidate any such recourse nor be interpreted as a waiver of any default hereunder.

    The Borrower shall assume and pay all reasonable costs, charges and expenses including reasonable solicitors' costs, charges and expenses as between solicitor and his own client that may be incurred by the Lender in respect of any proceedings taken or things done by the Lender or on its behalf in connection with this Loan Agreement to collect all amounts due hereunder, and the Borrower shall consent to those costs, charges and expenses being charged.

    7. Assigns, Successors and Governing Law

    This Loan Agreement shall not be assignable by the Borrower without the prior written consent of the Lender.  This Loan Agreement shall enure to the benefit of and be binding upon the respective successors of the Borrower and the Lender and the assigns of the Lender and the permitted assigns of the Borrower.  This Loan Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario (without regard to conflict of law principles).

    [Signature page follows]

    

     

    IN WITNESS WHEREOF the parties have executed this Loan Agreement as of the  26th  day of February, 2021.

    	
                 

            	
                 

            	
                GAMESQUARE ESPORTS INC.

            
	 
	
                Per:

            	
                /s/ Justin Kenna 

            
	
                Name: Justin Kenna

            
	Title: Chief Executive Officer
	
                I have authority to bind the Corporation

            

    

    	
                 

            	
                 

            	
                RECIPROCITY CORP.

            
	 
	
                Per:

            	
                 

            
	
                Name: David Fawcett

            
	Title: Chief Executive Officer
	
                I have authority to bind the Corporation

            

    

     

    

    IN WITNESS WHEREOF the parties have executed this Loan Agreement as of the          day of February, 2021.

    	
                 

            	
                 

            	
                GAMESQUARE ESPORTS INC.

            
	 
	
                Per:

            	
                 

            
	
                Name: Justin Kenna

            
	Title: Chief Executive Officer
	
                I have authority to bind the Corporation

            

    

    	
                 

            	
                 

            	
                RECIPROCITY CORP.

            
	 
	
                Per:

            	
                /s/ David Fawcett 

            
	
                Name: David Fawcett

            
	Title: Chief Executive Officer
	
                I have authority to bind the Corporation

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