SPLY Socialplay USA Inc (CE)

Item 1.01 Entry into a Material Definitive Agreement

In recent months, we have received financing in the form of a series of Convertible Promissory Notes (the “Notes”) from CMGT, Inc. (“CMGT”). On January 11, 2016, we consolidated all of our obligations to CMGT under a single Convertible Promissory Note due June 1, 2018 (the “Consolidated Note”). The Consolidated Note allows us to borrow up to a maximum amount of $500,000, with all new advances to be made in the discretion of CMGT. The Consolidated Note allows conversion of all amounts owed to CMGT under same terms as the original Notes – at a price equal to sixty percent (60%) of the market price for our common stock, which is defined as the average of the lowest three closing bid prices for our common stock in the ten trading days preceding the conversion. CMGT’s right to convert continues to be limited such that no conversion can be made which would result in CMGT or its affiliates owning more than 4.99% of our issued and outstanding common stock following the conversion. This limit may be waived at CMGT’s option with 61 days’ prior notice. As with the Notes, the Consolidated Note bears interest at a rate of ten percent (10%) per year. Under the Consolidated Note, we are obligated to pay quarterly payments of interest only commencing March 31, 2016, with all principal and interest due on or before June 1, 2018.