Document:

Exhibit 10.1

 

TANZANIAN GOLD CORPORATION

Common Shares

 

 

 

Sales Agreement

 

May 2, 2019

R.F. Lafferty & Co., Inc.

40 Wall Street, 19th Floor

New York, NY 10005

 

Ladies and Gentlemen:

 

Tanzanian Gold Corporation, a company established
under the Business Corporations Act (Alberta), Canada (the “Company”), confirms its agreement
(this “Agreement”) with R.F. Lafferty & Co., Inc. (the “Agent”), as follows:

 

1.             
Issuance and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the
terms and subject to the conditions set forth herein, it may issue and sell through the Agent, common shares (the “Placement
Shares”) of the Company, no par value per share (the “Common Shares”), having an aggregate
amount of up to $3.0 million (the “Maximum Amount”) subject to the limitations set forth in Section 5(d)
hereof. Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations
set forth in this Section 1 on the amount of Placement Shares issued and sold under this Agreement shall be the sole responsibility
of the Company and that the Agent shall have no obligation in connection with such compliance. The issuance and sale of Placement
Shares through the Agent will be effected pursuant to the Registration Statement (as defined below) filed by the Company and declared
effective by the Securities and Exchange Commission (the “Commission”) on September 5, 2018.

 

The Company has filed, in accordance with the
provisions of the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations
thereunder (the “Securities Act Regulations”), with the Commission a registration statement on Form F-3
(File No. 333-226949), including a base prospectus, relating to certain securities, including the Placement Shares to be issued
from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance
with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively,
the “Exchange Act”). The Company has prepared a prospectus supplement to the base prospectus included
as part of the registration statement, which prospectus supplement relates to the Placement Shares to be issued from time to time
by the Company (the “Prospectus Supplement”). The Company will furnish to the Agent, for use by the Agent,
copies of the prospectus included as part of such registration statement, as supplemented, by the Prospectus Supplement, relating
to the Placement Shares to be issued from time to time by the Company. The Agent may also rely on Rule 153 of the Securities Act
Regulations for delivery of the Prospectus Supplement to the extent applicable. The Company may file one or more additional registration
statements from time to time that will contain a base prospectus and related prospectus supplement, if applicable (which shall
be a Prospectus Supplement), with respect to the Placement Shares. Except where the context otherwise requires, such registration
statement(s), including all documents filed as part thereof or incorporated by reference therein, and including any information
contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities
Act Regulations or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act Regulations
related to the Placement Shares, is herein called the “Registration Statement.” The base prospectus or
base prospectuses, including all documents incorporated therein by reference, included in the Registration Statement, as it may
be supplemented, if necessary, by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement
have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations,
together with the then issued Issuer Free Writing Prospectus(es) (as defined below), is herein called the “Prospectus.”

 

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Any reference herein to the Registration Statement,
the Prospectus Supplement, Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the documents,
if any, incorporated by reference therein (the “Incorporated Documents”), including, unless the context
otherwise requires, the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to the terms
“amend,” “amendment” or “supplement” with respect to the Registration Statement, the Prospectus
Supplement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing of any document
under the Exchange Act on or after the most-recent effective date of the Registration Statement, or the date of the Prospectus
Supplement, Prospectus or such Issuer Free Writing Prospectus, as the case may be, and incorporated therein by reference. For purposes
of this Agreement, all references to the Registration Statement, the Prospectus Supplement, Prospectus, any Issuer Free Writing
Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission
pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if applicable, the Interactive Data Electronic Application
system when used by the Commission (collectively, “EDGAR”).

 

2.             
Placements. Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”),
it will notify the Agent by email notice (or other method mutually agreed to in writing (including by email) by the parties) of
the number of Placement Shares to be issued, the time period during which sales are requested to be made), any limitation on the
number of Placement Shares that may be sold in any one Trading Day and any minimum price below which sales may not be made (a “Placement
Notice”), the form of which is attached hereto as Schedule 1. The Placement Notice shall originate from any
of the individuals from the Company set forth on Schedule 3 (with a copy to each of the other individuals from the Company
listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth on Schedule 3, as such
Schedule 3 may be amended from time to time. The Placement Notice shall be effective unless and until (i) the Agent
declines in writing (including by email correspondence) to accept the terms contained therein for any reason, in its sole discretion
within one (1) Business Day (as defined below) of receipt of such Placement Notice, (ii) the entire amount of the Placement
Shares thereunder have been sold, (iii) the Company or the Agent suspends or terminates sales of Placement Shares under the
Placement Notice in accordance with Section 4 or (iv) this Agreement has been terminated under the provisions of Section
12. The amount of any commission to be paid by the Company to the Agent in connection with the sale of the Placement Shares
through the Agent shall be calculated in accordance with the terms set forth in Schedule 2. It is expressly acknowledged
and agreed that neither the Company nor the Agent will have any obligation whatsoever with respect to a Placement or any Placement
Shares unless and until the Company delivers a Placement Notice to the Agent and the Agent does not decline such Placement Notice
pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of a conflict between
the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.

 

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3.             
Sale of Placement Shares by the Agent. Subject to the terms and conditions herein set forth, upon the Company’s
delivery of a Placement Notice, and unless the sale of the Placement Shares described therein has been declined, suspended, or
otherwise terminated in accordance with the terms of this Agreement, the Agent, for the period specified in the Placement Notice,
will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal
laws, rules and regulations and the rules of The NYSE American (the “Exchange”), to sell the Placement
Shares up to the number specified, and otherwise in accordance with the terms of such Placement Notice only in the United States.
The Agent will provide written confirmation to the Company (including by email correspondence) no later than the opening of the
Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting
forth the number of Placement Shares sold on such day, the compensation payable by the Company to Agent pursuant to Section
2 with respect to such sales and the Net Proceeds (as defined below) payable to the Company. Subject to the terms of the Placement
Notice, the Agent may sell Placement Shares by any method permitted by law deemed to be an “at the market” offering
as defined in Rule 415 of the Securities Act Regulations, including without limitation sales made directly on the Exchange,
on any other existing trading market for the Common Shares or to or through a market maker. Subject to the terms of a Placement
Notice, the Agent may also sell Placement Shares by any other method permitted by law, including but not limited to in negotiated
transactions with the Company’s prior written consent. The Company acknowledges and agrees that (i) there can be no assurance
that the Agent will be successful in selling Placement Shares, (ii) the Agent will incur no liability or obligation to the Company
or any other person or entity if it does not sell Placement Shares for any reason other than a failure by the Agent to use its
commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell
such Placement Shares as required under this Agreement and (iii) the Agent shall be under no obligation to purchase Placement Shares
on a principal basis pursuant to this Agreement, except as otherwise agreed by the Agent and the Company in writing and expressly
set forth in a Placement Notice. “Trading Day” means any day on which Common Shares are traded on the
Exchange.

 

4.             
Suspension of Sales.

 

(a)           
The Company or the Agent may, upon notice to the other party in writing (including by email correspondence to each of the
individuals of the other party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any
of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable
facsimile transmission or email correspondence to each of the individuals of the other party set forth on Schedule 3), suspend
any sale of Placement Shares (a “Suspension”); provided, however, that such Suspension
shall not affect or impair any party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt
of such notice. While a Suspension is in effect, any obligation under Sections 7(l), 7(m), and 7(n) with respect
to the delivery of certificates, opinions, or comfort letters to the Agent, shall be waived. Each of the parties agrees that no
such notice under this Section 4 shall be effective against any other party unless it is made to and acknowledged by one
of the individuals named on Schedule 3 hereto, as such Schedule may be amended from time to time.

 

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(b)          
Notwithstanding any other provision of this Agreement, during any period in which the Company is in possession of material
non-public information, the Company and Agent agree that (i) no sale of Placement Shares will take place, (ii) the Company shall
not request the sale of any Placement Shares, and (iii) Agent shall not be obligated to sell or offer to sell any Placement Shares.

 

5.             
Settlement.

 

(a)           
Settlement of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement
for sales of Placement Shares will occur on the second (2nd) Trading Day (or such earlier day as is industry practice
or as is required for regular-way trading) following the date on which such sales are made (each, a “Settlement Date”).
The Agent shall notify the Company in writing (including by email correspondence) of each sale of Placement Shares no later than
one hour after the close of the Trading Day on which it has made sales of Placement Shares hereunder. The amount of proceeds (the
“Net Proceeds”) to be delivered (as provided in Section 5(b)) to the Company against receipt of the Placement
Shares sold pursuant to a Placement Notice, will be equal to the aggregate sales price received by the Agent (on behalf of the
Company as its sales agent) for such Placement Shares from the purchaser(s) thereof, after deduction for (i) the Agent’s
compensation for such sales payable by the Company pursuant to Section 2 hereof, (ii) any amounts due and payable by
the Company to the Agent hereunder pursuant to Section 8 hereof and (iii) any transaction fees imposed by any clearing
organization or any governmental or self-regulatory organization in respect of such sales.

 

(b)          
Delivery of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent
to, electronically transfer the Placement Shares being sold by crediting Agent’s or its designee’s account (provided
Agent shall have given the Company written notice of such designee at least one Trading Day prior to the Settlement Date) at The
Depository Trust Company through its Deposit and Withdrawal at Custodian System (“DWAC”) or by such other
means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradable, transferable,
registered shares in good deliverable form. On each Settlement Date, Agent will deliver the related Net Proceeds in same day funds
to an account designated by the Company on, or prior to, the Settlement Date. The Company agrees that if the Company, or its transfer
agent (if applicable), defaults in its obligation to deliver duly authorized Placement Shares on a Settlement Date through no fault
of Agent, in addition to and in no way limiting the rights and obligations set forth in Section 10(a) (Company Indemnification)
hereto, it will (i) hold Agent harmless against any loss, claim, damage, or reasonable, documented expense (including reasonable
and documented legal fees and expenses), as incurred, arising out of or in connection with such default by the Company, and (ii)
pay to Agent any commission to which it would otherwise have been entitled absent such default.

 

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(c)           
Limitations on Offering Size. Under no circumstances shall the Company cause or request the offer or sale
of any Placement Shares if, after giving effect to the sale of such Placement Shares, the aggregate gross sales proceeds of Placement
Shares sold pursuant to this Agreement would exceed the lesser of (A) together with all sales of Placement Shares under this
Agreement, the Maximum Amount, (B) the amount of Common Shares registered pursuant to the Registration Statement pursuant
to which the offering hereunder is being made, (C)  the amount of Common Shares permitted to be offered and sold by the Company
under Form F-3 (including General Instruction I.B.5. of Form F-3, if and for so long as applicable), (D) the amount of Common
Shares authorized from time to time to be issued and sold under this Agreement by the Company’s board of directors, a duly
authorized committee thereof or a duly authorized executive committee, and notified to the Agent in writing (including by email
correspondence), or (E) the amount of Common Shares for which the Company has filed the Prospectus Supplement or other prospectus
supplement specifically relating to the offering of the Placement Shares pursuant to this Agreement. Under no circumstances shall
the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum
price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized
executive committee, and notified to the Agent in writing (including by email correspondence). Notwithstanding anything to the
contrary contained herein, the parties hereto acknowledge and agree that compliance with the limitations set forth in this Section
5(d) on the amount of Placement Shares that may be issued and sold under this Agreement from time to time shall be the sole
responsibility of the Company, and that the Agent shall have no obligation in connection with such compliance.

 

6.             
A. Representations and Warranties of the Company. The Company represents and warrants to, and agrees with the Agent
that as of the date of this Agreement and as of each Applicable Time (as defined below):

 

(a)           
Registration Statement and Prospectus. The Company and the transactions contemplated by this Agreement (including,
without limitation, the amount of Common Shares for which the Company has filed the Prospectus Supplement or other prospectus supplement
specifically relating to the offering of the Placement Shares pursuant to this Agreement) meet the requirements for and comply
with the applicable conditions for use of Form F-3 under the Securities Act, including General Instructions I.A and I.B.5. of Form
F-3, if and for so long as applicable. The Registration Statement has been filed with the Commission and has been declared effective
by the Commission under the Securities Act. The Prospectus Supplement will name the Agent as the agent in the section entitled
“Plan of Distribution.” The Company has not received, and has no notice of, any order of the Commission preventing
or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose. The Registration
Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities
Act and comply in all material respects with said Rule. Any statutes, regulations, contracts or other documents that are required
to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been
so described in all material respects or filed. Copies of the Registration Statement, the Prospectus, and any such amendments or
supplements and all Incorporated Documents that were filed with the Commission on or prior to the date of this Agreement have been
delivered, or are available through EDGAR, to the Agent and its counsel. The Company has not distributed and, prior to the later
to occur of each Settlement Date and completion of the distribution of the Placement Shares, will not distribute any offering material
in connection with the offering or sale of the Placement Shares other than the Registration Statement and the Prospectus to which
the Agent has consented. The Common Shares are registered pursuant to Section 12(b) of the Exchange Act and are currently listed
on the Exchange under the trading symbol “TRX.” The Company has taken no action designed to, or likely to have the
effect of, terminating the registration of the Common Shares under the Exchange Act, delisting the Common Shares from the Exchange,
nor, except as disclosed in the Registration Statement or Prospectus, has the Company received any notification that the Commission
or the Exchange is contemplating terminating such registration or listing. To the Company’s knowledge, except as disclosed
in the Registration Statement or Prospectus, it is in compliance with all applicable listing requirements of the Exchange.

 

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(b)          
No Misstatement or Omission. The Registration Statement, when it became or becomes effective, and the Prospectus,
and any amendment or supplement thereto, on the date of such Prospectus or amendment or supplement, conformed and will conform
in all material respects with the requirements of the Securities Act. At each Settlement Date, the Registration Statement and the
Prospectus, as of such date, will conform in all material respects with the requirements of the Securities Act. The Registration
Statement, when it became or becomes effective, did not, and will not, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus
and any amendment and supplement thereto, on the date thereof and at each Applicable Time (defined below), did not or will not
include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading. The Incorporated Documents did not, and any further Incorporated
Documents filed after the date of this Agreement will not, when filed with the Commission, contain an untrue statement of a material
fact or omit to state a material fact required to be stated in such document or necessary to make the statements in such document,
in light of the circumstances under which they were made, not misleading. The foregoing shall not apply to statements in, or omissions
from, any such document made in reliance upon, and in conformity with, information furnished to the Company by the Agent specifically
for use in the preparation thereof.

 

(c)           
Conformity with Securities Act and Exchange Act. The Registration Statement, the Prospectus or any amendment or supplement
thereto, and the Incorporated Documents, when such documents were or are filed with the Commission under the Securities Act or
the Exchange Act or became or become effective under the Securities Act, as the case may be, conformed or will conform in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable.

 

(d)          
Authorization; Enforceability. The Company has full legal right, power and authority to enter into this Agreement
and perform the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company
and is a legal, valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent that
(i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and by general equitable principles and (ii) the indemnification and contribution provisions may be limited by
federal or state securities laws or public policy considerations in respect thereof.

 

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(e)           
Authorization of the Placement Shares. The Placement Shares have been duly authorized for issuance and sale pursuant
to this Agreement and, when issued and delivered by the Company, against payment therefor pursuant to this Agreement, will be validly
issued, fully paid and nonassessable, and the issuance and sale of the Placement Shares is not subject to any preemptive rights,
rights of first refusal or other similar rights to subscribe for or purchase the Placement Shares which have not been duly withdrawn,
waived or satisfied. Upon the sale and delivery through the Agent of the Placement Shares, and payment therefor, the purchaser
of the Placement Shares will acquire good, marketable and valid title to such Placement Shares, free and clear of all pledges,
liens, security interests, charges, claims or encumbrances. The Placement Shares, when issued, will conform to the description
thereof set forth in or incorporated into the Prospectus.

 

(f)           
No Applicable Registration or Other Similar Rights. Except as otherwise disclosed in the Registration Statement and
the Prospectus (including any Incorporated Documents), there are no persons with registration or other similar rights to have any
equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this
Agreement, except for such rights as have been duly withdrawn or waived.

 

(g)          
No Material Adverse Change. Except as otherwise disclosed in the Registration Statement and the Prospectus (including
any Incorporated Documents), subsequent to the respective dates as of which information is given in the Registration Statement
and the Prospectus, if any: (i) there has been no material adverse change, or any development that could be expected to result
in a material adverse change, in the condition, financial or otherwise, or in the earnings, business, properties, operations, assets,
liabilities or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its Subsidiaries,
considered as one entity (any such change being referred to herein as a “Material Adverse Change”); (ii) the
Company and its Subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct
or contingent, including without limitation any losses or interference with its business from fire, explosion, flood, earthquakes,
accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute or court or governmental action,
order or decree, that are material, individually or in the aggregate, to the Company and its Subsidiaries, considered as one entity,
or have entered into any transactions not in the ordinary course of business; and (iii) there has not been any material decrease
in the capital stock or any material increase in any long-term indebtedness of the Company or its Subsidiaries and there has been
no dividend or distribution of any kind declared, paid or made by the Company or, except for dividends paid to the Company or other
Subsidiaries, by any of the Company’s Subsidiaries on any class of capital stock, or any repurchase or redemption by the
Company or any of its Subsidiaries of any class of capital stock.

 

(h)          
INTENTIONALLY OMITTED.

 

(i)            
Independent Accountants. Dale Matheson Carr-Hilton Labonte LLP has expressed its opinion with respect to the financial
statements (which term as used in this Agreement includes the related notes thereto) filed with the Commission as a part of the
Company’s Annual Report on Form 20-F for the fiscal year ended August 31, 2018, filed with the Commission and incorporated
by reference into the Registration Statement and the Prospectus. Dale Matheson Carr-Hilton Labonte LLP is (i) an independent
registered public accounting firm as required by the Securities Act, the Exchange Act, and the rules of the Public Company Accounting
Oversight Board (“PCAOB”), (ii) in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X under the Securities Act, (iii) a registered public accounting firm as defined
by the PCAOB whose registration has not been suspended or revoked and who has not requested such registration to be withdrawn and
(iv) an independent qualified public accountant qualified under the applicable provisions of the Canadian Public Accounting
Board and any rules promulgated thereunder.

 

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(j)            
Financial Statements. The consolidated financial statements filed with the Commission and incorporated by reference
into the Registration Statement and the Prospectus, present fairly, in all material respects, the consolidated financial position
of the Company and its Subsidiaries as of the dates indicated and the results of their operations, changes in stockholders’
equity and cash flows for the periods specified. Such financial statements have been prepared in conformity with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”)
and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”),
applied on a consistent basis throughout the periods involved, except as may be expressly stated in the related notes thereto or
as otherwise disclosed therein, and, in the case of interim financial statements, subject to normal year-end audit adjustments
and the exclusion of certain footnotes. No other financial statements or supporting schedules are required to be included or incorporated
by reference in the Registration Statement or the Prospectus. To the Company’s knowledge, no person who has been suspended
or barred from being associated with a registered public accounting firm, or who has failed to comply with any sanction pursuant
to Rule 5300 promulgated by the PCAOB, has participated in or otherwise aided the preparation of, or audited, the financial statements,
supporting schedules or other financial data filed with the Commission as a part of the Registration Statement and the Prospectus.

 

(k)          
Company’s Accounting System. The Company and each of its Subsidiaries make and keep accurate books and records
and maintain a system of internal accounting controls designed to provide reasonable assurance that: (i) transactions are
executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with IFRS as issued by IASB AND IFRIC and to maintain accountability
for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization
and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

 

(l)            
Disclosure Controls and Procedures; Deficiencies in or Changes to Internal Control Over Financial Reporting. The
Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the
Exchange Act), which are designed to ensure that material information relating to the Company, including its consolidated Subsidiaries,
is made known to the Company’s principal executive officer and its principal financial officer by others within those entities
and are effective in all material respects to perform the functions for which they were established. Since the end of the Company’s
most recent audited fiscal year, there has been no material weakness in the Company’s internal control over financial reporting
(whether or not remediated) and no change in the Company’s internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company
is not aware of any change in its internal control over financial reporting that has occurred that has materially and adversely
affected, or is reasonably likely to materially and adversely affect, the Company’s internal control over financial reporting.

 

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(m)         
Incorporation of the Company. The Company has been duly incorporated and is validly existing under the Business
Corporation Act (Alberta) Canada and has the corporate power and authority to own, lease and operate its properties and to
conduct its business as described in the Registration Statement and the Prospectus and to enter into and perform its obligations
under this Agreement. The Company is duly qualified as a foreign corporation to transact business in each jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business.

 

(n)          
Subsidiaries. Each of the Company’s “Subsidiaries” (for purposes of this Agreement, as defined
in Rule 405 under the Securities Act and as listed in Schedule 4 hereto) has been duly incorporated or organized, as the case may
be, and is validly existing as a corporation, partnership or limited liability company, as applicable, in good standing (where
such concept exists) under the laws of the jurisdiction of its incorporation or organization and has the power and authority (corporate
or other) to own, lease and operate its properties and to conduct its business as described in the Registration Statement and the
Prospectus. Each of the Subsidiaries is duly qualified as a foreign corporation, partnership or limited liability company, as applicable,
to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except where the failure to be so qualified or in good standing
(where such concept exists) would not, individually or in the aggregate, result in a Material Adverse Effect (as defined below).
All of the issued and outstanding capital stock or other equity or ownership interests of each of the Subsidiaries have been duly
authorized and validly issued, are fully paid and nonassessable and are owned by the Company, directly or through Subsidiaries,
and, except as described in the Registration Statement and the Prospectus, free and clear of any security interest, mortgage, pledge,
lien, encumbrance or adverse claim. The Company does not own or control, directly or indirectly, any corporation, association or
other entity other than the Subsidiaries listed in Schedule 4 hereto.

 

(o)          
Capitalization and Other Capital Stock Matters. The authorized, issued and outstanding share capital of the Company
is as set forth in the Registration Statement and the Prospectus as of the dates referred to therein (other than for subsequent
issuances, if any, pursuant to employee benefit plans, or upon the exercise of outstanding options, warrants or conversion rights,
in each case described in the Registration Statement and the Prospectus). The share capital of the Company, including the Placement
Shares, conforms in all material respects to the description thereof contained in the Prospectus. All of the issued and outstanding
Common Shares have been duly authorized and validly issued, are fully paid and nonassessable. Except as described in the Registration
Statement and the Prospectus, none of the outstanding Common Shares was issued in violation of any preemptive rights, rights of
first refusal or other similar rights to subscribe for or purchase securities of the Company. The Common Shares conform to the
law of the jurisdiction of the Company’s incorporation and to any requirements of the Company’s organizational documents.
There are no authorized or outstanding options, warrants, preemptive rights, rights of first refusal or other rights to purchase,
or equity or debt securities convertible into or exchangeable or exercisable for, any capital stock of the Company or any of its
Subsidiaries other than those described in the Registration Statement and the Prospectus. The descriptions of the Company’s
stock option, stock bonus and other stock plans or arrangements, and the options or other rights granted thereunder, set forth
in the Registration Statement and the Prospectus accurately and fairly presents the information required to be provided with respect
to such plans, arrangements, options and rights.

 

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(p)          
Stock Exchange Listing. The Placement Shares will have been approved for listing on the Exchange.

 

(q)          
Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor
any of its Subsidiaries is in violation of its articles of incorporation or operating agreement or similar organizational documents,
as applicable, or is in default (or, with the giving of notice or lapse of time, would be in default) (“Default”)
under any indenture, loan, credit agreement, note, lease, license agreement, contract, franchise or other instrument (including,
without limitation, any pledge agreement, security agreement, mortgage or other instrument or agreement evidencing, guaranteeing,
securing or relating to indebtedness) to which the Company or any of its Subsidiaries is a party or by which it or any of them
may be bound, or to which any of their respective properties or assets are subject (each, an “Existing Instrument”),
except (i) for such Defaults as would not be expected, individually or in the aggregate, to have a material adverse effect on the
condition (financial or other), earnings, business, properties, operations, assets, liabilities or prospects of the Company and
its Subsidiaries, considered as one entity (a “Material Adverse Effect”), and (ii) as disclosed in the Registration
Statement and the Prospectus. The Company’s execution, delivery and performance of this Agreement, consummation of the transactions
contemplated hereby and by the Registration Statement and the Prospectus and the issuance and sale of the Placement Shares (including
the use of proceeds from the sale of the Placement Shares as described in the Registration Statement and the Prospectus under the
caption “Use of Proceeds”) (i) have been duly authorized by all necessary corporate action and will not result
in any violation of the provisions of the articles of association or operating agreement or similar organizational documents, as
applicable, of the Company or any Subsidiary (ii) will not conflict with or constitute a breach of, or Default or a Debt Repayment
Triggering Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of its Subsidiaries pursuant to, or require the consent of any other party to, any Existing
Instrument and (iii) will not result in any violation of any law, administrative regulation or administrative or court decree
applicable to the Company or any of its Subsidiaries except, as to clauses (ii) and (iii), as would not be expected, individually
or in the aggregate, to have a Material Adverse Effect. No consent, approval, authorization or other order of, or registration
or filing with, any court or other governmental or regulatory authority or agency, is required for the Company’s execution,
delivery and performance of this Agreement and consummation of the transactions contemplated hereby and by the Registration Statement
and the Prospectus, except such as have been obtained or made by the Company and are in full force and effect under the Securities
Act and such as may be required under applicable state securities or blue sky laws, the Financial Industry Regulatory Authority
(“FINRA”) or the Exchange. As used herein, a “Debt Repayment Triggering Event” means any
event or condition which gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture or
other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption
or repayment of all or a portion of such indebtedness by the Company or any of its Subsidiaries.

 

    	10

     

    

 

(r)           
Compliance with Laws. The Company and its Subsidiaries have been and are in compliance with all applicable laws,
rules and regulations, except where failure to be so in compliance would not be expected, individually or in the aggregate, to
have a Material Adverse Effect. Each of the Company and its Subsidiaries is not in violation of any provision of its articles of
incorporation or by-laws.

 

(s)           
No Material Actions or Proceedings. Except as described in the Registration Statement and the Prospectus, there is
no action, suit, proceeding, inquiry or investigation brought by or before any governmental entity now pending or, to the knowledge
of the Company, threatened, against or affecting the Company or any of its Subsidiaries, which would be expected, individually
or in the aggregate, to have a Material Adverse Effect or materially and adversely affect the consummation of the transactions
contemplated by this Agreement or the performance by the Company of its obligations hereunder; and the aggregate of all pending
legal or governmental proceedings to which the Company or any such Subsidiary is a party or of which any of their respective properties
or assets is the subject, including ordinary routine litigation incidental to the business, if determined adversely to the Company,
would not be expected to have a Material Adverse Effect. No material labor dispute with the employees of the Company or any of
its Subsidiaries exists or, to the knowledge of the Company, is threatened or imminent.

 

(t)            
Intellectual Property Rights. Except as described in the Registration Statement and the Prospectus, each of the Company
and its Subsidiaries owns, is licensed or otherwise had adequate rights to use Company technology (including, without limitation,
patented, patentable and unpatented inventions and unpatentable proprietary or confidential information, systems or procedures),
designs, processes, trademarks, trade secrets, know how, copyrights and other works of authorship, computer programs and technical
data and information that are or could reasonably be expected to be material to its business as currently conducted or as currently
proposed to be conducted, except to the extent that the failure to own, possess, license or otherwise hold adequate right to use
such Intellectual Property would not, individual, or in the aggregate have a Material Adverse Effect.

 

(u)          
All Necessary Permits, etc; Contracts. Except as described in the Registration Statement and the Prospectus, each
of the Company and its Subsidiaries has (i) all governmental and other regulatory licenses, permits, consents, orders, approvals
and other authorizations necessary to carry on its business as described in the Registration Statement or the Prospectus; (ii) performed
all obligations required to be performed by it, and is not in default under any indenture, mortgage, deed of trust, voting trust
agreement, loan agreement, bond, debenture, note agreement, lease or other agreement or instrument (individually, a “Contract”
and collectively, “Contracts”) to which it is a party or by which its property is bound or affected, except,
in each case, where the failure to do so or where such default would not reasonably be expected to have a Material Adverse Effect. 
Each Contract was duly authorized, executed and delivered by the Company or the relevant Subsidiary of the Company, constitutes
valid and binding agreements of the Company or such Subsidiary of the Company and are enforceable against the Company or such Subsidiary
of the Company in accordance with the terms thereof, except, in each case, where the failure to do so or where such default would
not reasonably be expected to have a Material Adverse Effect.   To the knowledge of the Company, no other party under
any Contract to which it or its Subsidiaries is a party is in default in any respect thereunder. Neither the Company nor any of
its Subsidiaries has sent or received any communication regarding termination of, or intent not to renew, any of the Contracts
and no such termination or non-renewal has been threatened by the Company or any of its Subsidiaries or, to the Company’s
knowledge, any other party to any such contract or agreement, which threat of termination or non-renewal has not been rescinded
as of the date hereof, except where such termination or non-renewal would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

    	11

     

    

 

(v)          
Title to Properties. Except as described in the Registration Statement and the Prospectus, the Company and its Subsidiaries
have good and marketable title to all of the real and personal property and other assets reflected as owned in the financial statements
referred to in Section 6(j) above (or elsewhere in the Registration Statement or the Prospectus), in each case free and clear
of any security interests, mortgages, liens, encumbrances, equities, adverse claims and other defects, except as otherwise disclosed
in the Registration Statement and the Prospectus or as would not reasonably be expected to have a Material Adverse Effect. The
real property, improvements, equipment and personal property held under lease by the Company or any of its Subsidiaries are held
under valid and enforceable leases, with such exceptions as are not material and do not materially interfere with the use made
or proposed to be made of such real property, improvements, equipment or personal property by the Company or such Subsidiary.

 

(w)         
Tax Law Compliance. Except where the failure to do so would not constitute a Material Adverse Effect, (a) all
tax returns (including tax refund requests) required to be filed pursuant to applicable law by or with respect to the Company and
any of its Subsidiaries have been timely filed, or proper request of extension thereof has been filed, and (b) all tax returns
filed are complete and correct, and all taxes, fines or penalties due including any interest and penalties, except tax deficiencies
that the Company or any of its Subsidiaries are contesting in good faith subject to applicable reserves, have been timely paid
and fully reserved against in the applicable financial statements referred to in Section 6(j). On each Settlement Date, all
stock transfer or other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer
of the Placement Shares to be sold hereunder will be, or will have been, fully paid or provided for by the Company and all laws
imposing such taxes will be or will have been fully complied with.

 

(x)          
Insurance. Except as described in the Registration Statement and the Prospectus, each of the Company and its Subsidiaries
are insured with policies in such amounts and with such deductibles and covering such risks as the Company believes are adequate
and customary for companies engaged in similar industries including, but not limited to, policies covering real and personal property
owned or leased by the Company and its Subsidiaries against theft, damage, destruction, acts of vandalism and earthquakes and policies
covering the Company and its Subsidiaries for product liability claims and clinical trial liability claims and such insurance is
in full force and effect. The Company has no reason to believe that it or any of its Subsidiaries will not be able (i) to
renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not be expected
to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has been denied any insurance coverage which
it has sought or for which it has applied.

 

    	12

     

    

 

(y)          
Mining Rights. Except as described in the Registration Statement and Prospectus,

 

(i)            
The Buckreef Project in Tanzania, as described in the Registration Statement and the Prospectus (“Material Property”),
is the only resource property that is currently material to the Company in which the Company or the Subsidiaries have an interest.

 

(ii)          
The Company, directly or through its Subsidiaries, holds an interest in fee or freehold title, mining leases, mining concessions,
mining claims, exploration permits, prospecting permits, participant interests, conventional property agreements, or proprietary
interests or rights, or other similar contractual rights recognized in the jurisdiction in which the Material Property are located,
in respect of the ore bodies and minerals located on the Material Property in which the Company (through the applicable subsidiary)
has an interest under valid, subsisting and enforceable title documents or other recognized and enforceable agreements, instruments,
contracts, arrangements or understandings, sufficient to permit the Company (through the applicable subsidiary) to explore for
the minerals relating thereto, and all such material documents, agreements, instruments, contracts, arrangements or understandings
in connection with the Material Property (“Material Property Agreements”) are valid and subsisting and enforceable
in accordance with their terms, except in each case where the failure to be so would not be reasonably expected to have a Material
Adverse Effect.

 

(iii)        
All concessions, leases, property agreements and contracts, claims and permits relating to the Material Property in which
the Company (through the applicable subsidiary) has an interest or right have been validly granted, located, approved, executed
and/or recorded or filed in accordance with all applicable laws and are valid, subsisting and enforceable in all respects, except
in each case where the failure to be so would not be reasonably expected to have a Material Adverse Effect.

 

(iv)         
Except as disclosed in the Registration Statement or the Prospectus, the Company (through the applicable Subsidiary) has,
or reasonably anticipates receiving in due course, all necessary surface rights, access rights and other necessary rights and interests
relating to the Material Property in which the Company (through the applicable subsidiary) has an interest granting the Company
(through the applicable Subsidiary) the right and ability to explore for minerals, ore and metals as are appropriate in view of
the rights and interest therein of the Company or the applicable Subsidiary, with only such exceptions as do not materially interfere
with the current use made by the Company or the applicable Subsidiary of the rights or interest so held, and each of the proprietary
interests or rights and each of the Material Property Agreements is currently in good standing in all respects in the name of the
Company or the applicable Subsidiary, except where such failure to be so would not reasonably be expected to have a Material Adverse
Effect.

 

    	13

     

    

 

(v)          
All assessments or other work required to have been performed to date in relation to the material mining claims and mining
rights of the Company and the applicable Subsidiary in order to maintain their respective interests therein, if any, have been
performed to date and, except as disclosed in the Registration Statement or the Prospectus, the Company and the applicable Subsidiary
have complied in all respects with all applicable laws in this regard as well as with legal and contractual obligations to third
parties in this regard except in respect of mining claims and mining rights that the Company and the applicable Subsidiary intend
to abandon or relinquish and except for any non-compliance which would not either individually or in the aggregate reasonably be
expected to have a Material Adverse Effect.

 

(z)           
Mining Practice. Except as disclosed in the Registration Statement and the Prospectus, all mining operations by the
Company and its Subsidiaries on the Material Properties have for the past five (5) years been conducted with the exercise of reasonable
diligence, skill, care and prudence for mining operations in similar locations under similar circumstances.

 

(aa)        
Technical Reports. Schedule 6(aa) sets out each applicable technical report relating to the Material Property (the
“Reports”) as of the date of this Agreement. Each Report was at the time of filing compliant, in all material
respects, with the requirements of the provisions of NI 43-101 — Standards of Disclosure for Mineral Projects (“NI
43-101”). All scientific and technical information disclosed in the Registration Statement and Prospectus: (i) is based upon
information prepared by or under the supervision of, or approved by, a “qualified person” (as such term is defined
in NI 43-101) and (ii) was true, complete and accurate in all material respects at the time of filing. The Company made available
to the respective authors thereof prior to the issuance of all of the Reports, for the purpose of preparing the Reports, as applicable,
all information requested, and no such information contained any misrepresentation as at the time the relevant information was
made available. The Reports, as of their respective dates, accurately and completely set forth all material facts relating to the
Material Property, and as of the date hereof and the date of the Prospectus, there is no new material scientific or technical information
concerning any of the Material Property not included in the Reports. With respect to information set forth in the Registration
Statement and the Prospectus: (i) information relating to the Company’s estimates of mineral reserves and resources as at
the date they were prepared has been reviewed and verified by the Company or independent consultants to the Company as being consistent
with the Company’s mineral reserve and mineral resource estimates as at the date they were prepared; (ii) the mineral reserve
and mineral resource estimated have been prepared in accordance with Industry Guide 7 under the Act and/or National Instrument
43-101 — Standards of Disclosure for Mineral Projects, as applicable, by or under the supervision of a “qualified person”
as defined therein; and (iii) the methods used in estimating the Company’s mineral reserves and mineral resources are in
accordance with accepted mineral reserve and mineral resource estimation practices.

 

(bb)       
Environmental Matters. Except as described in the Registration Statement and the Prospectus, and except as would
not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect:

 

    	14

     

    

 

(i)            
each of the Company and its Subsidiaries is in compliance in all material respects with all applicable federal, provincial,
state, municipal and local laws, statutes, ordinances, regulations and binding orders, directives and decisions rendered by any
government ministry, government department or administrative or regulatory agency, whether domestic or foreign, in each case, relating
to the protection of the environment, the processing, use, treatment, storage, disposal, discharge, transport or handling of any
pollutants, contaminants, chemicals, substances or industrial wastes classified as toxic or hazardous to human health or the environment
(the “Hazardous Substances”), or with respect to exposure to Hazardous Substances, occupational health and safety
(collectively, the “Environmental Laws”);

 

(ii)          
 the Company and its Subsidiaries have all permits, licenses, authorizations and approvals required for their operations
as currently conducted under any applicable Environmental Law (“Environmental Permits”) and are in compliance
with all terms and conditions of each Environmental Permit;

 

(iii)        
 there are no pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial actions, suits,
demands, claims, liens or proceedings against the Company or any of its Subsidiaries, relating to any alleged violation of or liability
under Environmental Law;

 

(iv)         
neither the Company nor any of its Subsidiaries is subject to (A) any written demand, written notice of default, summons,
notice of judgment or commencement of proceedings with respect to any alleged violation of or liability arising under Environmental
Laws; or (B) any outstanding legal obligations to remedy, pay compensation, or make any payment in the nature of a fine in relation
to any violation of Environmental Laws; and

 

(v)          
 to the Company’s knowledge, there are no events or circumstances that would reasonably be expected to form the basis
of an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental body or agency,
against or affecting the Company or any of its Subsidiaries pursuant to any Environmental Laws.

 

(cc)        
ERISA Compliance. Neither the Company nor any of its Subsidiaries maintains or contributes to, or has any liability
with respect to, a defined benefit plan as defined in Section 3(35) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”).  No plan maintained or contributed to by the Company that is subject to ERISA
(an “ERISA Plan”) (or any trust created thereunder) has engaged in a “prohibited transaction”
within the meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”)
that could subject the Company or any of its Subsidiaries to any material tax penalty on prohibited transactions and that has not
adequately been corrected.

 

(dd)       
Company Not an “Investment Company.” The Company is not, and will not be, either after receipt of payment
for the Placement Shares or after the application of the proceeds therefrom as described under “Use of Proceeds” in
the Registration Statement or the Prospectus, required to register as an “investment company” under the Investment
Company Act of 1940, as amended (the “Investment Company Act”).

 

    	15

     

    

 

(ee)        
No Price Stabilization or Manipulation; Compliance with Regulation M. Neither the Company nor any of its Subsidiaries
has taken, directly or indirectly (without giving any effect to the activities of the Agent), any action designed to or that might
cause or result in stabilization or manipulation of the price of the Common Shares or of any “reference security” (as
defined in Rule 100 of Regulation M under the Exchange Act (“Regulation M”)) with respect to the Common
Shares, whether to facilitate the sale or resale of the Placement Shares or otherwise, and has taken no action which would directly
or indirectly violate Regulation M.

 

(ff)         
Related-Party Transactions. There are no business relationships or related-party transactions involving the Company
or any of its Subsidiaries or any other person required to be described in the Registration Statement or the Prospectus that have
not been described as required.

 

(gg)       
FINRA Matters. All of the information provided to the Agent or to counsel for the Agent by the Company, its counsel,
its officers and directors to be used by the Agent in its filings with FINRA in connection with the offering of the Placement Shares
is true, complete, and correct in all material respects, and any letters, filings or other supplemental information provided to
FINRA by the Company pursuant to FINRA Rules is true, complete and correct in all material respects.

 

(hh)       
Statistical and Market-Related Data. All statistical, demographic and market-related data included in the Registration
Statement or the Prospectus are based on or derived from sources that the Company believes, to be reliable and accurate in all
material respects.

 

(ii)          
No Unlawful Contributions or Other Payments. Neither the Company nor any of its Subsidiaries nor, to the Company’s
knowledge, any employee or agent of the Company or any Subsidiary, has made any contribution or other payment to any official of,
or candidate for, any federal, state or foreign office in violation of any law or of the character required to be disclosed in
the Registration Statement or the Prospectus.

 

(jj)          
Foreign Corrupt Practices Act. Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company,
any director, officer, agent, employee, affiliate or other person acting on behalf of the Company or any of its Subsidiaries has,
in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries (i) used any corporate funds for
any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct
or indirect unlawful payment to any domestic government official, “foreign official” (as defined in the U.S. Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (collectively, the “FCPA”)
or employee from corporate funds; (iii) violated or is in violation of any provision of the FCPA or any applicable non-U.S.
anti-bribery statute or regulation; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any domestic government official, such foreign official or employee; and the Company and its Subsidiaries and,
to the knowledge of the Company, the Company’s affiliates have conducted their respective businesses in compliance with the
FCPA and have instituted policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued
compliance therewith.

 

    	16

     

    

 

(kk)       
Money Laundering Laws. The operations of the Company and its Subsidiaries are, and have been conducted at all times,
in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and
any related or similar applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the
Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.

 

(ll)          
OFAC. Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or person acting on behalf of the Company or any of its Subsidiaries is currently subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
and the Company will not directly or indirectly use the proceeds from the sale of the Placement Shares, or lend, contribute or
otherwise make available such proceeds to any Subsidiary, or any joint venture partner or other person or entity, for the purpose
of financing the activities of or business with any person, or impermissibly in any country or territory, that currently is the
subject to any U.S. sanctions administered by OFAC or in any other manner that will result in a violation by any person (including
any person participating in the transaction whether as underwriter, advisor, investor or otherwise) of U.S. sanctions administered
by OFAC.

 

(mm)    
Brokers. Except pursuant to this Agreement, there is no broker, finder or other party that is entitled to receive
from the Company or any Subsidiary any brokerage or finder’s fee or other fee or commission as a result of any transactions
contemplated by this Agreement.

 

(nn)       
Forward-Looking Statements. Each financial or operational projection or other “forward-looking statement”
(as defined by Section 27A of the Securities Act or Section 21E of the Exchange Act), if any, contained in the Registration
Statement or the Prospectus (i) was so included by the Company in good faith and with reasonable basis after due consideration
by the Company of the underlying assumptions, estimates and other applicable facts and circumstances and (ii) is accompanied
by meaningful cautionary statements identifying those factors that could cause actual results to differ materially from those in
such forward-looking statement. No such statement was made with the knowledge of an executive officer or director of the Company
that is was false or misleading.

 

(oo)       
Foreign Private Issuer. The Company is a “foreign private issuer” within the meaning of Rule 405 under
the Securities Act (“Foreign Private Issuer”).

 

(pp)       
Dividend Restrictions. Except as described in the Registration Statement and the Prospectus, no Subsidiary of the
Company is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution
with respect to such Subsidiary’s equity securities or from repaying to the Company or any other Subsidiary of the Company
any amounts that may from time to time become due under any loans or advances to such Subsidiary from the Company or from transferring
any property or assets to the Company or to any other Subsidiary.

 

    	17

     

    

 

(qq)       
Market Capitalization. At the time the Registration Statement was originally declared effective, and at the time
the Company’s most recent Annual Report on Form 20-F was filed with the Commission, the Company met the then applicable requirements
for the use of Form F-3 under the Securities Act, including but not limited to Instruction I.B.5. of Form F-3, if and for so long
as applicable. As of the close of trading on the Exchange on March 25, 2019, a date within 60 days prior to the date of Agreement,
the aggregate market value of the outstanding voting and non-voting common equity (as defined in Rule 405) of the Company
held by persons other than affiliates of the Company (pursuant to Rule 144 of the Securities Act, those that directly, or
indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company) (the
“Non-Affiliate Shares”), was approximately $124,605,791 (calculated by multiplying (x) the last
sale price of a Common Share on the Exchange on March 25, 2019, by (y) the number of Non-Affiliate Shares outstanding of 133,984,721).
The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least
12 calendar months previously and if it has been a shell company at any time previously, has filed current Form 10 information
(as defined in Instruction I.B.5 of Form F-3) with the Commission at least 12 calendar months previously reflecting its status
as an entity that is not a shell company.

 

(rr)         
Broker/Dealer Relationships. Neither the Company nor any of the Subsidiaries (i) is required to register as
a “broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly
through one or more intermediaries, controls or is a “person associated with a member” or “associated person
of a member” (within the meaning set forth in the FINRA Manual).

 

(ss)         
No Reliance. The Company has not relied upon the Agent or legal counsel for the Agent for any legal, tax or accounting
advice in connection with the offering and sale of the Placement Shares.

 

(tt)          
Sarbanes-Oxley. There is and has been no failure on the part of the Company or any of the Company’s directors
or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley
Act of 2002 (the “Sarbanes-Oxley Act”) and the rules and regulations promulgated thereunder. Each of
the principal executive officer and the principal financial officer of the Company (or each former principal executive officer
of the Company and each former principal financial officer of the Company as applicable) has made all certifications required by
Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements and other documents required
to be filed by it or furnished by it to the Commission. For purposes of the preceding sentence, “principal executive officer”
and “principal financial officer” shall have the meanings given to such terms in the Sarbanes-Oxley Act.

 

(uu)       
Underwriter Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at-the-market”
or continuous equity transaction.

 

    	18

     

    

 

(vv)       
Margin Rules. Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds
thereof by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board
of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

 

(ww)     
Status Under the Securities Act. The Company was not and is not an ineligible issuer as defined in Rule 405 under
the Securities Act at the times specified in Rules 164 and 433 under the Securities Act in connection with the offering of the
Placement Shares.

 

(xx)       
No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its
issue date and as of each Applicable Time (as defined in Section 23 below), did not, does not and will not include any information
that conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including
any incorporated document deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not
apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information
furnished to the Company by the Agent specifically for use therein.

 

(yy)       
PFIC Status. As of August 31, 2018, the Company has not determined whether it may be deemed a “passive foreign
investment company,” as such term is defined in the Code. Neither the Company nor any Subsidiary of the Company has
any knowledge that it is, or, after giving effect to the offering, issuance and sale of the Placement Shares hereunder and the
application of the proceeds thereof, that it will be, a “controlled foreign corporation” as defined by the Code.

 

(zz)        
No Rights of Immunity. Except as provided by laws or statutes generally applicable to transactions of the type described
in this Agreement, neither the Company nor any of its respective properties, assets or revenues has any right of immunity under
Canadian or United States law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action,
suit or proceeding, from set-off or counterclaim, from the jurisdiction of any Canadian or United States federal court, from service
of process, attachment upon or prior judgment, or attachment in aid of execution of judgment, or from execution of a judgment,
or other legal process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with
respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Agreement. To the
extent that the Company or any of its respective properties, assets or revenues may have or may hereafter become entitled to any
such right of immunity in any such court in which proceedings may at any time be commenced, the Company waives or will waive such
right to the extent permitted by law and has consented to such relief and enforcement as provided in Section 18 of
this Agreement.

 

(aaa)     
Submission to Jurisdiction. The Company has the power to submit, and pursuant to Section 18 of this Agreement,
has legally, validly, effectively and irrevocably submitted, to the personal jurisdiction of each United States federal court and
New York state court located in the State of New York, Borough of Manhattan, in the City of New York, New York, U.S.A. (each, a
“New York Court”), and the Company has the power to designate, appoint and authorize, and pursuant to Section
18 of this Agreement, has legally, validly, effectively and irrevocably designated, appointed and authorized the an agent for
service of process in any action arising out of or relating to the Placement Shares or this Agreement or any of the transactions
contemplated hereby in any New York Court, and service of process effected on such authorized agent will be effective to confer
valid personal jurisdiction over the Company as provided in Section 18 hereof.

 

    	19

     

    

 

Any certificate signed by any officer of the
Company or any of its Subsidiaries and delivered to the Agent or to counsel for the Agent in connection with the offering, or the
purchase and sale, of the Placement Shares shall be deemed a representation and warranty by the Company to the Agent as to the
matters covered thereby.

 

6.B.       Representations
and Covenants of the Agent.

 

(a)       FINRA.
The Agent is a member in good standing of FINRA and is registered as a broker-dealer under the Exchange Act, and under applicable
statutes and regulations of each state into which it is making offers or sales of the Placement Shares, except such states in which
the Agent is exempt from registration or such registration is not otherwise required. The Agent shall continue, for the term of
this Agreement, to be duly registered as a broker-dealer under the Exchange Act and the applicable statutes and regulations of
each state in which the Placement Shares will be offered and sold, except such states in which the Agent is exempt from registration
or such registration is not otherwise required, during the term of this Agreement.

 

7.             
Covenants of the Company. The Company covenants and agrees with the Agent that:

 

(a)           
Registration Statement Amendments. After the date of this Agreement and during any period in which a Prospectus relating
to any Placement Shares is required to be delivered by the Agent under the Securities Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 under the Securities Act), (i) the Company will notify the Agent promptly
of the time when any subsequent amendment to the Registration Statement, other than Incorporated Documents, has been filed with
the Commission and/or has become effective or any subsequent supplement to the Prospectus that relate to the transactions contemplated
by this Agreement has been filed and of any request by the Commission for any amendment or supplement to the Registration Statement
or Prospectus or for additional information, (ii) the Company will prepare and file with the Commission, promptly upon the
Agent’s request, any amendments or supplements to the Registration Statement or Prospectus that, in such Agent’s reasonable
opinion, may be necessary or advisable in connection with the distribution of the Placement Shares by the Agent (provided,
however, that the failure of the Agent to make such request shall not relieve the Company of any obligation or liability
hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement
and provided, further, that the only remedy the Agent shall have with respect to the failure to make such filing
shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the Company will not
file any amendment or supplement to the Registration Statement or Prospectus that relate to the transactions contemplated by this
Agreement, other than Incorporated Documents in the ordinary course, relating to the Placement Shares or a security convertible
into the Placement Shares to which the Agent reasonably objects, unless the Company’s legal counsel has advised that the
use or filing of such an amendment or supplement is required by law (provided, however, that the failure of the Agent
to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right
to rely on the representations and warranties made by the Company in this Agreement and provided, further, that the
only remedy the Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease making sales
under this Agreement) and the Company will furnish to the Agent at the time of filing thereof a copy of any document that upon
filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents available
via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus to be filed with the Commission
as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any document to be incorporated
therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed
(the determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on
the Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

 

    	20

     

    

 

(b)          
Notice of Commission Stop Orders. The Company will advise the Agent, promptly after it receives notice or obtains
knowledge thereof, of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement, of the suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction,
or of the initiation or threatening of any proceeding for any such purpose; and it will promptly use its commercially reasonable
efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued. The Company
will advise the Agent promptly after it receives any request by the Commission for any amendments to the Registration Statement
or any amendment or supplements to the Prospectus that relate to the transaction contemplated by this Agreement, in each case other
than request associated with the Incorporated Documents, or for additional information related to the offering of the Placement
Shares or for additional information related to the Registration Statement or the Prospectus that relate to the transaction contemplated
by this Agreement.

 

(c)           
Delivery of Prospectus; Subsequent Changes. During any period in which a Prospectus relating to the Placement Shares
is required to be delivered by the Agent under the Securities Act with respect to the offer and sale of the Placement Shares (including
in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act), the Company will comply
in all material respects with all requirements imposed upon it by the Securities Act, as from time to time in force, and to file
on or before their respective due dates all reports required to be filed by the Company with the Commission pursuant to Sections
13(a), 13(c), 15(d) or any other provision of or under the Exchange Act. If the Company has omitted any information from the Registration
Statement pursuant to Rule 430B under the Securities Act, it will use its best efforts to comply with the provisions of and make
all requisite filings with the Commission pursuant to said Rule 430B and to notify the Agent promptly of all such filings. If during
such period any event occurs as a result of which the Prospectus as then amended or supplemented would include an untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances
then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration Statement or Prospectus
to comply with the Securities Act, the Company will promptly notify the Agent to suspend the offering of Placement Shares during
such period and the Company will amend or supplement the Registration Statement or Prospectus (at the expense of the Company) so
as to correct such statement or omission or effect such compliance prior to issuing any additional Placement Notices or selling
any Placement Shares.

 

    	21

     

    

 

(d)          
Listing of Placement Shares. Prior to the date of the first Placement Notice, the Company will cause the Placement
Shares to be listed on the Exchange.

 

(e)           
Delivery of Registration Statement and Prospectus. The Company will furnish to the Agent and its counsel (at the
expense of the Company) copies of the Registration Statement, the Prospectus (including all Incorporated Documents) and all amendments
and supplements to the Registration Statement or Prospectus that are filed with the Commission during any period in which a Prospectus
relating to the Placement Shares is required to be delivered under the Securities Act (including all Incorporated Documents filed
with the Commission during such period), in each case as soon as reasonably practicable and in such quantities as the Agent may
from time to time reasonably request and, at the Agent’s request, will also furnish copies of the Prospectus to each exchange
or market on which sales of the Placement Shares may be made; provided, however, that the Company shall not be required
to furnish any document (other than the Prospectus) to the Agent to the extent such document is available on EDGAR.

 

(f)           
Earnings Statement. The Company will make generally available to its security holders as soon as practicable, but
in any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering
a 12-month period that satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act.

 

(g)          
Use of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use
of Proceeds.”

 

(h)          
Notice of Other Sales. The Company shall promptly notify the Agent if the Company offers to sell, sells, contracts
to sell, grants any option to sell or otherwise disposes of any Common Shares (other than the Placement Shares offered pursuant
to this Agreement) or securities convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire,
Common Shares during the period beginning on the fifth (5th) Trading Day immediately prior to the date on which any Placement Notice
is delivered to the Agent hereunder and ending on the fifth (5th) Trading Day immediately following the final Settlement Date with
respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated or suspended
prior to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension or termination); and will
not directly or indirectly in any other “at-the-market” or continuous equity transaction offer to sell, sell, contract
to sell, grant any option to sell or otherwise dispose of any Common Shares (other than the Placement Shares offered pursuant to
this Agreement) or securities convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire,
Common Shares prior to the termination of this Agreement; provided, however, that such notice requirements or restrictions,
as the case may be, will not be required in connection with the Company’s issuance or sale of (i) Common Shares, options
to purchase Common Shares, other equity awards or Common Shares issuable upon the exercise of options or other equity awards, pursuant
to any employee or director stock option or benefits plan, stock ownership plan or dividend reinvestment plan of the Company whether
now in effect or hereafter implemented, (ii) Common Shares issuable upon exchange, conversion or redemption of securities or the
exercise of warrants, options or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR
or otherwise in writing (including by email correspondence) to the Agent, (iii) Common Shares or securities convertible into or
exchangeable for Common Shares as consideration for mergers, acquisitions, sale or purchase of assets or other business combinations
or strategic alliances occurring after the date of this Agreement which are not issued for capital raising purposes, and (iv) Common
Shares issued in connection with the Company’s gold and cash loans, which interest and principal are convertible into Common
Shares of the Company.

 

    	22

     

    

 

(i)            
Change of Circumstances. The Company will, at any time during the pendency of a Placement Notice advise the Agent
promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect
in any material respect any opinion, certificate, letter or other document required to be provided to the Agent pursuant to this
Agreement.

 

(j)            
Due Diligence Cooperation. The Company will cooperate with any reasonable due diligence review conducted by the Agent
or its representatives in connection with the transactions contemplated hereby, including, without limitation, providing information
and making available documents and senior corporate officers, during regular business hours and at the Company’s principal
offices, as the Agent may reasonably request.

 

(k)          
Required Filings Relating to Placement of Placement Shares. The Company agrees that on such dates as the Securities
Act shall require, the Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of
Rule 424(b) under the Securities Act (each and every filing date under Rule 424(b), a “Filing Date”),
which prospectus supplement will set forth, within the relevant period, the amount of Placement Shares sold through the Agent,
the Net Proceeds to the Company and the compensation payable by the Company to the Agent with respect to such Placement Shares
(provided that the Company may satisfy its obligations under this Section 7(k)(i) by effecting a filing in accordance
with the Exchange Act with respect to such information), and (ii) deliver such number of copies of each such prospectus supplement
to each exchange or market on which such sales were effected as may be required by the rules or regulations of such exchange or
market.

 

(l)            
Representation Dates; Certificate. (1) On or prior to the date of the first Placement Notice and (2) each time the
Company:

 

(i)            
files the Prospectus relating to the Placement Shares or amends or supplements (other than a prospectus supplement relating
solely to an offering of securities other than the Placement Shares) the Registration Statement or the Prospectus relating to the
Placement Shares by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of documents
by reference into the Registration Statement or the Prospectus relating to the Placement Shares;

 

    	23

     

    

 

(ii)          
files an annual report on Form 20-F under the Exchange Act (including any Form 20-F/A containing amended financial information
or a material amendment to the previously filed Form 20-F);

 

(iii)        
files its quarterly or six-month reports on Form 6-K under the Exchange Act containing financial statements, supporting
schedules or other financial data incorporated by reference into the Registration Statement; or

 

(iv)         
files a report on Form 6-K containing amended financial information under the Exchange Act incorporated by reference into
the Registration Statement (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be
a “Representation Date”);

 

the Company shall furnish the Agent (but in
the case of clause (iv) above only if the Agent reasonably determines that the amended information contained in such Form 6-K is
material) with a certificate dated the Representation Date, in the form attached hereto as Exhibit 1. The requirement to
provide a certificate under this Section 7(l) shall be waived for any Representation Date occurring at a time at which no
Placement Notice is pending or a Suspension is in effect, which waiver shall continue until the earlier to occur of the date the
Company delivers a Placement Notice (which for such calendar quarter shall be considered a Representation Date) and the next occurring
Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation
Date when the Company relied on such waiver and did not provide the Agent with a certificate under this Section 7(l), then
before the Company delivers the relevant Placement Notice or the Agent sells any Placement Shares pursuant to such instructions,
the Company shall provide the Agent with a certificate in conformity with this Section 7(l) dated as of the date that the
such Placement Notice is issued.

 

(m)         
Company Counsel Legal Opinion. (1) On or prior to the date of the first Placement Notice and (2) within five (5)
Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section
7(l) for which no waiver is applicable, the Company shall cause to be furnished to the Agent a written opinion and negative
assurance letter of Lewis Brisbois Bisgaard & Smith LLP, United States counsel to the Company (“U.S. Company Counsel”),
the written legal opinion of Miller Thomson LLP , Canadian counsel to the Company (“Canadian Company Counsel”),
and the written legal opinion of KNR Legal, Tanzanian counsel to the Company (“Tanzanian Company Counsel”),
substantially similar to the forms attached hereto as Exhibit 2, Exhibit 3, and Exhibit 4, respectively, modified,
as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided, however,
the Company shall be required to furnish to the Agent no more than one opinion and negative assurance from U.S. Company Counsel
per calendar quarter; provided, further, that in lieu of such opinions and negative assurance for subsequent Representation
Dates, such counsel may furnish the Agent with a letter (a “Reliance Letter”) to the effect that the
Agent may rely on a prior opinion and negative assurance delivered under this Section 7(m) to the same extent as if it were
dated the date of such letter (except that statements in such prior opinion and negative assurance shall be deemed to relate to
the Registration Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

 

    	24

     

    

 

(n)          
Comfort Letter. (1) On or prior to the date of the first Placement Notice and (2) within five (5) Trading Days of
each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(l)
for which no waiver is applicable, the Company shall cause Dale Matheson Carr-Hilton Labonte LLP, its independent registered public
accounting firm, to furnish the Agent a letter (the “Comfort Letter”), dated the date the Comfort Letter
is delivered, which shall meet the requirements set forth in this Section 7(n); provided, however, that the Company
shall be required to furnish to the Agent no more than one Comfort Letter per calendar quarter. The Comfort Letter from the Company’s
independent registered public accounting firm shall be in a form and substance reasonably satisfactory to the Agent, (i) confirming
that they are an independent registered public accounting firm within the meaning of the Securities Act and the PCAOB, (ii) stating,
as of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily
covered by accountants’ “comfort letters” to underwriters in connection with registered public offerings (the
first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort Letter with any
information that would have been included in the Initial Comfort Letter had it been given on such date and modified as necessary
to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.

 

(o)          
Market Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result
in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of Common Shares or (ii) sell, bid for, or purchase Common Shares in violation
of Regulation M, or pay anyone any compensation for soliciting purchases of the Placement Shares other than the Agent.

 

(p)          
Insurance. The Company and its Subsidiaries shall maintain, or cause to be maintained, insurance in such amounts
and covering such risks as is reasonable and customary for the business for which it is engaged.

 

(q)          
Compliance with Laws. The Company and each of its Subsidiaries will use commercially reasonable efforts to maintain,
or cause to be maintained, all material environmental permits, licenses and other authorizations required by federal, state and
local law in order to conduct their businesses as described in the Prospectus, and the Company and each of its subsidiaries shall
conduct their businesses, or cause their businesses to be conducted, in substantial compliance with such permits, licenses and
authorizations and with applicable environmental laws, except where the failure to maintain or be in compliance with such permits,
licenses and authorizations could not reasonably be expected to result in a Material Adverse Change.

 

(r)           
Investment Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that it
will not be or become, at any time prior to the termination of this Agreement, required to register as an “investment company,”
as such term is defined in the Investment Company Act.

 

(s)           
No Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the Company and the Agent in
its capacity as agent hereunder, neither the Agent nor the Company (including its agents and representatives, other than the Agent
in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule
405 under the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an
offer to buy Placement Shares hereunder.

 

    	25

     

    

 

(t)            
Due Diligence. The Company shall reasonably cooperate with any reasonable due diligence review requested by the Agent
or its counsel from time to time in connection with the transactions contemplated hereby.

 

(u)          
Blue Sky and Other Qualifications. The Company will use its commercially reasonable efforts, in cooperation
with the Agent, to qualify the Placement Shares for offering and sale, or to obtain an exemption for the Placement Shares to be
offered and sold, under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Agent
may designate and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the
Placement Shares (but in no event for less than one year from the date of this Agreement); provided, however, that
the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or
as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing
business in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the Placement Shares have been
so qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to
continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the Placement
Shares (but in no event for less than one year from the date of this Agreement).

 

(v)          
Sarbanes-Oxley Act. The Company and the Subsidiaries will maintain and keep accurate books and records reflecting
their assets and maintain internal accounting controls in a manner designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the
IASB and including those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable assurance
that transactions are recorded as necessary to permit the preparation of the Company’s consolidated financial statements
in accordance with IFRS as issued by the IASB, (iii) that receipts and expenditures of the Company are being made only in
accordance with management’s and the Company’s directors’ authorization, and (iv) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could
have a material effect on its financial statements. The Company and the Subsidiaries will maintain such controls and other procedures,
including, without limitation, those required by Sections 302 and 906 of the Sarbanes-Oxley Act, and the applicable regulations
thereunder that are designed to ensure that information required to be disclosed by the Company in the reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms, including, without limitation, controls and procedures designed to ensure that information required to be disclosed
by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s
management, including its principal executive officer and principal financial officer, or persons performing similar functions,
as appropriate to allow timely decisions regarding required disclosure and to ensure that material information relating to the
Company or the Subsidiaries is made known to them by others within those entities, particularly during the period in which such
periodic reports are being prepared.

 

    	26

     

    

 

(w)         
Secretary’s Certificate; Further Documentation. On or prior to the date of the first Placement Notice, the
Company shall deliver to the Agent a certificate of the Secretary of the Company and attested to by an executive officer of the
Company, dated as of such date, certifying as to (i) the Amended and Restated Articles of Incorporation of the Company, (ii) the
resolutions of the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and
the issuance of the Placement Shares and (iii) the incumbency of the officers duly authorized to execute this Agreement and the
other documents contemplated by this Agreement. Within five (5) Trading Days of each Representation Date with respect to which
the Company is obligated to deliver a certificate pursuant to Section 7(l) for which no waiver is applicable and excluding
the date of this Agreement, the Company shall have furnished to the Agent such further information, certificates and documents
as the Agent may reasonably request.

 

(x)          
Foreign Private Issuer. The Company will provide a written notice to the Agent immediately upon becoming aware that
the Company is no longer a Foreign Private Issuer. Upon the request of the Agent, at any time that the Company is not a Foreign
Private Issuer, the Company will promptly provide the Agent with a written confirmation of its Outstanding Shares as of the date
of such request. The “Outstanding Shares” as of any date is the number of Common Shares outstanding on
such date.

 

8.             
Payment of Expenses. The Company, whether or not the transactions contemplated hereunder are consummated or this
Agreement is terminated, in accordance with the provisions of Section 11 hereunder, will pay all expenses incident to the
performance of its obligations under this Agreement, including (i) the preparation and filing of the Registration Statement,
including any fees required by the Commission, and the printing or electronic delivery of the Prospectus as originally filed and
of each amendment and supplement thereto, in such number as the Agent shall deem necessary, (ii) the printing and delivery to the
Agent of this Agreement and such other documents as may be required in connection with the offering, purchase, sale, issuance or
delivery of the Placement Shares, (iii) the preparation, issuance and delivery of the certificates, if any, for the Placement
Shares to the Agent, including any stock or other transfer taxes and any capital duties, stamp duties or other duties or taxes
payable upon the sale, issuance or delivery of the Placement Shares to the Agent, (iv) the fees and disbursements of the counsel,
accountants and other advisors to the Company, (v) the out-of-pocket expenses of Agent (including but not limited to the legal
fees of counsel to Agent reasonably incurred in connection with entering into the transactions contemplated by this Agreement in
an amount not to exceed $35,000 in the aggregate, and the quarterly legal fees of counsel to Agent reasonably incurred in connection
with Agent’s ongoing diligence, drafting and other filing requirements arising from the transactions contemplated by this
Agreement in an amount not to exceed $1,500 in the aggregate per calendar quarter fees), (vi) the qualification or exemption
of the Placement Shares under state securities laws in accordance with the provisions of Section 7(r) hereof, including
filing fees, but excluding fees of the Agent’s counsel, (vii) the fees and expenses of the transfer agent and registrar
for the Common Shares, (viii) the filing and other fees incident to any review by FINRA of the terms of the sale of the Placement
Shares including the reasonable and documented fees of the Agent’s counsel (which are included in the fee cap set forth in
clause (v) above), and (ix) the fees and expenses incurred in connection with the listing of the Placement Shares on the Exchange.

 

    	27

     

    

 

9.             
Conditions to the Agent’s Obligations. The obligations of the Agent hereunder with respect to a Placement will
be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein, to the
due performance by the Company of its obligations hereunder, to the completion by the Agent of a due diligence review satisfactory
to it in its reasonable judgment, and to the continuing satisfaction (or waiver by the Agent in its sole discretion) of the following
additional conditions:

 

(a)           
Registration Statement Effective. The Registration Statement shall be effective and shall be available for the sale
of all Placement Shares contemplated to be issued by any Placement Notice.

 

(b)          
No Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the
Company of any request for additional information from the Commission or any other Governmental Authority during the period of
effectiveness of the Registration Statement, the response to which would require any post-effective amendments or supplements to
the Registration Statement or the Prospectus, if such post-effective amendment or supplement has not been made and become effective;
(ii) the issuance by the Commission or any other Governmental Authority of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for sale in
any jurisdiction or the initiation or threatening of any proceeding for such purpose; or (iv) the occurrence of any event
that makes any material statement made in the Registration Statement or the Prospectus or any material Incorporated Document untrue
in any material respect or that requires the making of any changes in the Registration Statement, the Prospectus or Incorporated
Document so that, in the case of the Registration Statement, it will not contain any materially untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading
and, that in the case of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(c)           
No Misstatement or Material Omission. The Agent shall not have advised the Company that the Registration Statement
or Prospectus, or any amendment or supplement thereto, contains an untrue statement of fact that in the Agent’s reasonable
opinion is material, or omits to state a fact that in the Agent’s reasonable opinion is material and is required to be stated
therein or is necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which
they were made) not misleading.

 

(d)          
Material Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with
the Commission, there shall not have been any material adverse change in the authorized capital stock of the Company or any Material
Adverse Effect,

 

    	28

     

    

 

(e)           
Legal Opinions. The Agent shall have received the opinions and negative assurances of U.S. Company Counsel, Canadian
Company Counsel and Tanzanian Company Counsel required to be delivered pursuant to Section 7(m) on or before the date on
which such delivery of such opinion is required pursuant to Section 7(m).

 

(f)           
Comfort Letter. The Agent shall have received the Comfort Letter required to be delivered pursuant to Section
7(n) on or before the date on which such delivery of such Comfort Letter is required pursuant to Section 7(n).

 

(g)          
Representation Certificate. The Agent shall have received the certificate required to be delivered pursuant to Section
7(l) on or before the date on which delivery of such certificate is required pursuant to Section 7(l).

 

(h)          
No Suspension. Trading in the Common Shares shall not have been suspended on the Exchange and the Common Shares shall
not have been delisted from the Exchange.

 

(i)            
Other Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(l),
the Company shall have furnished to the Agent such appropriate further information, certificates and other documents as the Agent
may reasonably request. All such information, certificates and other documents will be in compliance with the provisions hereof.

 

(j)            
Securities Act Filings Made. The Company shall have filed with the Commission the Prospectus Supplement pursuant
to Rule 424(b) under the Securities Act not later than the Commission’s close of business on the second Business Day
following the date of this Agreement. All other filings with the Commission with respect to the Placement Shares required by Rule
424 under the Securities Act to have been filed prior to the issuance of any Placement Notice hereunder shall have been made within
the applicable time period prescribed for such filing by Rule 424 (without reliance on Rule 424(b)(8) of the Securities Act).

 

(k)          
Approval for Listing. The Placement Shares shall either have been (i) approved for listing on the Exchange, subject
only to notice of issuance, or (ii) the Company shall have filed an application for listing of the Placement Shares on the Exchange
at, or prior to, the issuance of any Placement Notice and the Exchange shall have reviewed such application and not provided any
objections thereto.

 

(l)            
FINRA. The Agent shall have received a letter from the Corporate Financing Department of FINRA confirming that such
department has determined to raise no objection with respect to the fairness or reasonableness of the terms and arrangements related
to the sale of the Placement Shares pursuant to this Agreement.

 

(m)         
No Termination Event. There shall not have occurred any event that would permit the Agent to terminate this Agreement
pursuant to Section 12(a).

 

    	29

     

    

 

10.          
Indemnification and Contribution.

 

(a)           
Company Indemnification. The Company agrees to indemnify and hold harmless the Agent, the directors, officers, partners,
employees and agents of the Agent and each person, if any, who (i) controls the Agent within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, or (ii) is controlled by or is under common control with the Agent as follows:

 

(i)            
against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of
or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any
amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary
to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material
fact included in the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(ii)          
against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent
of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged
untrue statement or omission; provided that (subject to Section 10(d) below) any such settlement is effected
with the written consent of the Company, which consent shall not unreasonably be delayed or withheld; and

 

(iii)        
against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel), reasonably
incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission (whether or not a party), to the extent that any such expense is not paid under (i) or
(ii) above,

 

provided, however, that this indemnity
agreement shall not apply to the extent that such loss, claim, liability, expense or damage arises from the sale of the Placement
Shares pursuant to this Agreement and is caused directly or indirectly by an untrue statement or omission or alleged untrue statement
or omission made solely in reliance upon and in conformity with the Agent Information (as defined below). This indemnity agreement
will be in addition to any liability that the Company might otherwise have.

 

(b)          
Agent Indemnification. The Agent agrees to indemnify and hold harmless the Company and its directors and each officer
of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described
in the indemnity contained in Section 10(a), as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement (or any amendments thereto) or the Prospectus (or any amendment
or supplement thereto) in reliance upon and in conformity with information relating to the Agent and furnished to the Company in
writing (including by email correspondence) by the Agent expressly for use therein. The Company hereby acknowledges that the only
information that the Agent has furnished to the Company expressly for use in the Registration Statement or the Prospectus (or any
amendment or supplement thereto) are the statements set forth in the seventh paragraph under the caption “Plan of Distribution”
in the Prospectus (the “Agent Information”).

 

    	30

     

    

 

(c)           
Procedure. Any party that proposes to assert the right to be indemnified under this Section 10 will, promptly
after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying
party or parties under this Section 10, notify each such indemnifying party of the commencement of such action, enclosing
a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from
(i) any liability that it might have to any indemnified party otherwise than under this Section 10 and (ii) any
liability that it may have to any indemnified party under the foregoing provision of this Section 10 unless, and only to
the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such
action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party
will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly
after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party
similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after
notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will
not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable costs
of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have
the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the
expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing
(including by email correspondence) by the indemnifying party, (2) the indemnified party has reasonably concluded (based on
advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in
addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel
to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not
have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has
not in fact employed counsel reasonably satisfactory to the indemnified party to assume the defense of such action within a reasonable
time after receiving notice of the commencement of the action; in each of which cases the reasonable fees, disbursements and other
charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or
parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable
fees, disbursements and other charges of more than one separate firm (plus local counsel) admitted to practice in such jurisdiction
at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by
the indemnifying party promptly as they are incurred and after the indemnifying party receives a written notice relating to the
fees, disbursements and other charges in reasonable detail. An indemnifying party will not, in any event, be liable for any settlement
of any action or claim effected without its written consent. No indemnifying party shall, without the prior written consent of
each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action
or proceeding relating to the matters contemplated by this Section 10 (whether or not any indemnified party is a party thereto),
unless such settlement, compromise or consent (1) includes an unconditional release of each indemnified party, in form and
substance reasonably satisfactory to such indemnified party, from all liability arising out of such litigation, investigation,
proceeding or claim and (2) does not include a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.

 

    	31

     

    

 

(d)          
Settlement Without Consent if Failure to Reimburse. If an indemnified party shall have requested an indemnifying
party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall
be liable for any settlement of the nature contemplated by Section 10(a)(ii) effected without its written consent if
(1) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (2) such
indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered
into and (3) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior
to the date of such settlement.

 

(e)           
Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnification
provided for in the foregoing paragraphs of this Section 10 is applicable in accordance with its terms but for any reason
is held to be unavailable from the Company or the Agent, the Company and the Agent will contribute to the total losses, claims,
liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with,
and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution
received by the Company from persons other than the Agent, such as persons who control the Company within the meaning of the Securities
Act, officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution)
to which the Company and the Agent may be subject in such proportion as shall be appropriate to reflect the relative benefits received
by the Company on the one hand and the Agent on the other hand. The relative benefits received by the Company on the one hand and
the Agent on the other hand shall be deemed to be in the same proportion as the total Net Proceeds from the sale of the Placement
Shares (before deducting expenses) received by the Company bear to the total compensation received by the Agent (before deducting
expenses) from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate
to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on
the one hand, and the Agent, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability,
expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering.
Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of
a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the
Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Agent agree that it would not be just and equitable if contributions pursuant to this
Section 10(e) were to be determined by pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the
loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this Section 10(e) shall
be deemed to include, for the purpose of this Section 10(e), any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim to the extent consistent with Section 10(c)
hereof. Notwithstanding the foregoing provisions of this Section 10(e), the Agent shall not be required to contribute any
amount in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 10(e), any person who controls a party to this
Agreement within the meaning of the Securities Act, and any officers, directors, partners, employees or agents of the Agent, will
have the same rights to contribution as that party, and each director of the Company and each officer of the Company who signed
the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof.
Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect
of which a claim for contribution may be made under this Section 10(e), will notify any such party or parties from whom
contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be
sought from any other obligation it or they may have under this Section 10(e) except to the extent that the failure to so
notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought.
Except for a settlement entered into pursuant to the last sentence of Section 10(c) hereof, no party will be liable for
contribution with respect to any action or claim settled without its written consent if such consent is required pursuant to Section
10(c) hereof.

 

    	32

     

    

 

11.          
Representations and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section
10 of this Agreement and all representations and warranties of the Company and the Agent herein or in certificates delivered
pursuant hereto shall survive, as of their respective dates, regardless of (i) any investigation made by or on behalf of the
Agent, any controlling persons, or the Company (or any of their respective officers, directors or controlling persons), (ii) delivery
and acceptance of the Placement Shares and payment therefor or (iii) any termination of this Agreement.

 

12.          
Termination.

 

(a)           
The Agent may terminate this Agreement, by notice to the Company, as hereinafter specified at any time (1) if, in the
sole judgement of the Agent, there has been, since the time of execution of this Agreement or since the date as of which information
is given in the Prospectus, any Material Adverse Change which makes it impractical or inadvisable to market the Placement Shares
or to enforce contracts for the sale of the Placement Shares, (2) the Company shall have failed, refused or been unable to
perform any agreement on its part to be performed hereunder (through no fault of the Agent); provided, however, in the case
of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion, or letter required under
Sections 7(l), 7(m), or 7(n), the Agent’s right to terminate shall not arise unless such failure to
deliver (or cause to be delivered) continues for more than ten (10) days from the date such delivery was required; (3) if there
has occurred any material adverse change in the financial markets in the United States or the international financial markets,
any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective
change in national or international political, financial or economic conditions, in each case the effect of which is such as to
make it, in the judgment of the Agent, impracticable or inadvisable to market the Placement Shares or to enforce contracts for
the sale of the Placement Shares, (4) if trading in the Common Shares has been suspended or limited by the Commission or the
Exchange, or if trading generally on the Exchange has been suspended or limited, or minimum prices for trading have been fixed
on the Exchange, (5) if any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market
shall have occurred and be continuing, (6) if a major disruption of securities settlements or clearance services in the United
States shall have occurred and be continuing, or (7) if a banking moratorium has been declared by either U.S. Federal, New
York or Canadian authorities. Any such termination shall be without liability of any party to any other party except that the provisions
of Section 8 (Payment of Expenses), Section 10 (Indemnification and Contribution), Section 11 (Representations
and Agreements to Survive Delivery), Section 17 (Governing Law and Time; Waiver of Jury Trial), Section 18 (Consent
to Jurisdiction), Section 19 (Appointment of Agent for Service) and Section 20 (Judgment Currency) hereof shall remain
in full force and effect notwithstanding such termination. If the Agent elects to terminate this Agreement as provided in this
Section 12(a), the Agent shall provide the required notice as specified in Section 13 (Notices).

 

    	33

     

    

 

(b)          
The Company shall have the right, by giving ten (10) Business Days’ notice as hereinafter specified to terminate this
Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability
of any party to any other party except that the provisions of Section 8, Section 10, Section 11, Section
17, Section 18, Section 19 and Section 20 hereof shall remain in full force and effect notwithstanding
such termination.

 

(c)           
The Agent shall have the right, by giving ten (10) Business Days’ notice as hereinafter specified to terminate this
Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability
of any party to any other party except that the provisions of Section 8, Section 10, Section 11, Section
17, Section 18, Section 19 and Section 20 hereof shall remain in full force and effect notwithstanding
such termination.

 

(d)          
Unless earlier terminated pursuant to this Section 12, this Agreement shall automatically terminate upon issuance
and sale of all of the Placement Shares through the Agent on the terms and subject to the conditions set forth herein; provided
that the provisions of Section 8, Section 10, Section 11, Section 17, Section 18, Section
19 and Section 20 hereof shall remain in full force and effect notwithstanding such termination.

 

(e)           
This Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), (b), (c)
or (d) above or otherwise by mutual agreement of the parties; provided, however, that any such termination
by mutual agreement shall in all cases be deemed to provide that Section 8, Section 10, Section 11, Section
17, Section 18, Section 19 and Section 20 shall remain in full force and effect.

 

    	34

     

    

 

(f)           
Any termination of this Agreement shall be effective on the date specified in such notice of termination; provided,
however, that such termination shall not be effective until the close of business on the date of receipt of such notice
by the Agent or the Company, as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement
Shares, such Placement Shares shall settle in accordance with the provisions of this Agreement.

 

13.          
Notices. All notices or other communications required or permitted to be given by any party to any other party pursuant
to the terms of this Agreement shall be in writing, unless otherwise specified, and if sent to the Agent, shall be delivered to:

 

R.F. Lafferty & Co., Inc.

40 Wall Street, 19th Floor

New York, NY 10005

Attention: Robert Hackel, Chief Operating Officer

Facsimile:

Email: rhackel@rflafferty.com

 

with a copy to:

 

Littman Krooks LLP

655 Third Avenue

New York, NY 10017

Attention: Steven Uslaner, Esq.

Facsimile: (212) 490-2990

Email: suslaner@littmankrooks.com

 

and if to the Company, shall be delivered to:

 

Tanzanian Gold Corporation

44th Floor, Scotia Plaza

40 King Street West

Attention: James Sinclair, Executive Chairman

Facsimile: 860.799.0350

Email: j.sinclair@tangoldcorp.com

 

with a copy to:

 

Lewis Brisbois Bisgaard & Smith LLP

333 Bush Street, Suite 1100

San Francisco, CA 94104

Attention: Daniel Eng, Esq.

Facsimile: (415) 434-0882

Email: Daniel.Eng@lewisbrisbois.com

 

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Each party to this Agreement may change such
address for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice
or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an
original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on
the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight
courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return
receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean any day
on which the Exchange and commercial banks in the City of New York are open for business.

 

An electronic communication (“Electronic
Notice”) shall be deemed written notice for purposes of this Section 13 if sent to the electronic mail address
specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending
Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and
shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”) which
shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

14.          
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Agent
and their respective successors and the parties referred to in Section 10 hereof. References to any of the parties contained
in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns
any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party.

 

15.          
Adjustments for Stock Splits. The parties acknowledge and agree that all share-related numbers contained in this
Agreement shall be adjusted to take into account any stock split, stock dividend or similar event effected with respect to the
Placement Shares occurring after the date hereof.

 

16.          
Entire Agreement; Amendment; Severability; Waiver. This Agreement (including all schedules and exhibits attached
hereto and Placement Notices issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous
agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither
this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Agent.
In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect
to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall
be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that
giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of
the parties as reflected in this Agreement. No implied waiver by a party shall arise in the absence of a waiver in writing signed
by such party. No failure or delay in exercising any right, power, or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power,
or privilege hereunder.

 

    	36

     

    

 

17.          
GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER
OR RELATED TO THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. EACH PARTY HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

18.          
CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH ANY TRANSACTION CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT
IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES
PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF
(CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT
AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. TO THE EXTENT THAT THE COMPANY HAS
OR HEREAFTER MAY ACQUIRE ANY IMMUNITY (ON THE GROUNDS OF SOVEREIGNTY OR OTHERWISE) FROM THE JURISDICTION OF ANY COURT OR FROM ANY
LEGAL PROCESS WITH RESPECT TO ITSELF OR ITS PROPERTY, THE COMPANY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, SUCH
IMMUNITY IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING.

 

19.          
Appointment of Agent for Service. The Company hereby irrevocably appoints James Sinclair, Executive Chairman, who
currently maintains an office at 24 Candleview Drive, P.O. Box 577, Sherman, CT 06784, United States of America, as its agent for
service of process in any suit, action or proceeding described in Section 18 and agrees that service of process in any such
suit, action or proceeding may be made upon it at the office of such agent. The Company waives, to the fullest extent permitted
by law, any other requirements of or objections to personal jurisdiction with respect thereto. The Company represents and warrants
that such agent has agreed to act as the Company’s agent for service of process, and the Company agrees to take any and all
action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full
force and effect.

 

    	37

     

    

 

20.          
Judgment Currency. If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder
into any currency other than United States dollars, the parties hereto agree, to the fullest extent permitted by law, that the
rate of exchange used shall be the rate at which in accordance with normal banking procedures the Agent could purchase United States
dollars with such other currency in The City of New York on the Business Day preceding that on which final judgment is given. The
obligation of the Company with respect to any sum due from it to the Agent or any person controlling the Agent shall, notwithstanding
any judgment in a currency other than United States dollars, not be discharged until the first Business Day following receipt by
the Agent or any person controlling the Agent of any sum in such other currency, and only to the extent that the Agent or controlling
person may in accordance with normal banking procedures purchase United States dollars with such other currency. If the United
States dollars so purchased are less than the sum originally due to the Agent or controlling person hereunder, the Company agrees
as a separate obligation and notwithstanding any such judgment, to indemnify the Agent or controlling person against such loss.
If the United States dollars so purchased are greater than the sum originally due to the Agent or controlling person hereunder,
the Agent or controlling person agrees to pay to the Company an amount equal to the excess of the dollars so purchased over the
sum originally due to the Agent or controlling person hereunder.

 

21.          
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other
may be made by facsimile or electronic transmission.

 

22.          
Construction. The section and exhibit headings herein are for convenience only and shall not affect the construction
hereof. References herein to any law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority
shall be deemed to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority
as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules and
regulations promulgated thereunder.

 

23.          
Permitted Free Writing Prospectuses. The Company represents, warrants and agrees that, unless it obtains the prior
written consent of the Agent, which shall not be unreasonably withheld, and the Agent represents, warrants and agrees that, unless
it obtains the prior written consent of the Company, it has not made and will not make any offer relating to the Placement Shares
that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,”
as defined in Rule 405, required to be filed with the Commission. Any such free writing prospectus consented to by the Agent
or by the Company, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company
represents and warrants that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer
free writing prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rule 433
applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission where required, legending and
record keeping. For the purposes of clarity, the parties hereto agree that all free writing prospectuses, if any, listed in Exhibit 4
hereto are Permitted Free Writing Prospectuses.

 

    	38

     

    

 

24.          
Absence of Fiduciary Relationship. The Company acknowledges and agrees that:

 

(a)           
the Agent is acting solely as agent in connection with the public offering of the Placement Shares and in connection with
each transaction contemplated by this Agreement and the process leading to such transactions, and no fiduciary or advisory relationship
between the Company or any of its respective affiliates, stockholders (or other equity holders), creditors or employees or any
other party, on the one hand, and the Agent, on the other hand, has been or will be created in respect of any of the transactions
contemplated by this Agreement, irrespective of whether or not the Agent has advised or is advising the Company on other matters,
and the Agent has no obligation to the Company with respect to the transactions contemplated by this Agreement except the obligations
expressly set forth in this Agreement;

 

(b)          
the Company is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of
the transactions contemplated by this Agreement;

 

(c)           
neither the Agent nor its affiliates have provided any legal, accounting, regulatory or tax advice with respect to the transactions
contemplated by this Agreement and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has
deemed appropriate;

 

(d)          
the Company is aware that the Agent and its affiliates are engaged in a broad range of transactions which may involve interests
that differ from those of the Company and the Agent and its affiliates have no obligation to disclose such interests and transactions
to the Company by virtue of any fiduciary, advisory or agency relationship or otherwise; and

 

(e)           
the Company waives, to the fullest extent permitted by law, any claims it may have against the Agent or its affiliates for
breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of Placement Shares under this Agreement
and agrees that the Agent and its affiliates shall not have any liability (whether direct or indirect, in contract, tort or otherwise)
to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on its behalf or in right of
it or the Company, employees or creditors of Company, other than in respect of the Agent’s obligations under this Agreement.

 

25.          
Definitions. As used in this Agreement, the following terms have the respective meanings set forth below:

 

“Applicable Time”
means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.

 

“Governmental Authority”
means (i) any U.S. federal, Swiss, provincial, state, local, municipal, national or international government or governmental authority,
regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court, tribunal,
arbitrator or arbitral body (public or private); (ii) any self-regulatory organization; or (iii) any political subdivision of any
of the foregoing.

 

    	39

     

    

 

“Issuer Free Writing Prospectus”
means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Placement Shares that (1) is
required to be filed with the Commission by the Company, (2) is a “road show” that is a “written communication”
within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from
filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does
not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to
be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act Regulations.

 

“Rule 164,” “Rule 172,”
“Rule 405,” “Rule 415,” “Rule 424,” “Rule 424(b),”
“Rule 430B,” and “Rule 433” refer to such rules under the Securities
Act Regulations.

 

All references in this Agreement to financial
statements and schedules and other information that is “contained,” “included” or “stated”
in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all
such financial statements and schedules and other information that is incorporated by reference in the Registration Statement or
the Prospectus, as the case may be.

 

All references in this Agreement to the Registration
Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with
the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other than any Issuer
Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed to
include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to “supplements”
to the Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials prepared in connection
with any offering, sale or private placement of any Placement Shares by the Agent outside of the United States.

 

 

 

[Signature Page Follows]

 

 

 

 

 

    	40

     

    

 

If the foregoing correctly sets forth the understanding
between the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this letter shall
constitute a binding agreement between the Company and the Agent.

 

 

	Very truly yours,	 	 
	 	 	 
	TANZANIAN GOLD CORPORATION	 	 
	 	 	 
	By: 	/s/ James E. Sinclair	 	 
	Name:  	James E. Sinclair 	 	 
	Title:	Executive Chairman & Director	 	 
	 	 	 
	ACCEPTED as of the date first-above written:	 	 
	 	 	 
	R.F. LAFFERTY & CO., INC.	 	 
	 	 	 
	By: 	/s/ Robert Hackel	 	 
	Name: 	Robert Hackel	 	 
	Title:	Chief Operating Officer	 	 
	 	 	 

 

 

 

 

 

 

 

{Signature Page – ATM Sales Agreement}Exhibit

Exhibit 10.5

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), dated as of May 1, 2019 (the “Effective Date”), is between Vistra Energy Corp. (the “Company”) and James A. Burke (“Executive”).
Recitals:
WHEREAS, the Company (as the successor to TCEH) and Executive previously entered into an employment agreement effective as of October 4, 2016 (the “Original Effective Date”); and
WHEREAS, the Company and Executive desire to amend and restate the employment agreement to reflect the terms upon which Executive shall continue to provide services to the Company.
NOW, THEREFORE, in consideration of the premises and covenants contained herein, and intending to be legally bound hereby, the parties to this Agreement hereby agree as follows:
1.Term.  

(a)    The term of Executive’s employment under this Agreement shall be effective as of the Effective Date, and shall continue until May 1, 2023 (the “Initial Expiration Date”); provided that on the Initial Expiration Date and each subsequent anniversary of the Initial Expiration Date, the term of Executive’s employment under this Agreement shall be extended for one (1) additional year unless either party provides written notice to the other party at least sixty (60) days prior to the Initial Expiration Date (or any such anniversary, as applicable) that Executive’s employment shall not be so extended (in which case, Executive’s employment shall terminate on the Initial Expiration Date or any such anniversary, as applicable); provided, however, that Executive’s employment under this Agreement may be terminated at any earlier time pursuant to the provisions of Section 5.  The period of time from the Effective Date through the termination of this Agreement and Executive’s employment hereunder pursuant to its terms is herein referred to as the “Term”; and the date on which the Term is scheduled to expire (i.e., the Initial Expiration Date or the scheduled expiration of the extended term, if applicable) is herein referred to as the “Expiration Date.”  
(b)Executive agrees and acknowledges that the Company has no obligation to extend the Term or to continue Executive’s employment following the Expiration Date, and Executive expressly acknowledges that no promises or understandings to the contrary have been made or reached.  

2.Definitions.  For purposes of this Agreement, the following terms, as used herein, shall have the definitions set forth below.

(a)“Affiliate” means, with respect to any specified Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified Person.

(b)“Change in Control” shall, be deemed to occur upon any of the following events: 
(i)the acquisition by any Person or related “group” (as such term is used in Sections 13(d) and 14(d) of the U.S. Securities Exchange Act of 1934, as amended, and any successor 

thereto (the “Exchange Act”)) of Beneficial Ownership (as defined in Rule 13d-3 promulgated under Section 13 of the Exchange Act) of 30% or more (on a fully diluted basis) of either (A) the then-outstanding shares of the common stock of the Company (the “Common Stock”), including Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Stock (the “Outstanding Company Common Stock”); or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote in the election of directors (the “Outstanding Company Voting Securities”); but excluding any acquisition by the Company or any of its Affiliates or by any employee benefit plan sponsored or maintained by the Company or any of its Affiliates;

(ii)a change in the composition of the Board such that members of the Board during any consecutive 12-month period (the “Incumbent Directors”) cease to constitute a majority of the Board.  Any person becoming a director through election or nomination for election approved by a valid vote of at least two thirds of the Incumbent Directors shall be deemed an Incumbent Director; provided, however, that no individual becoming a director as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed an Incumbent Director;

(iii)the approval by the shareholders of the Company of a plan of complete dissolution or liquidation of the Company; or

(iv)the consummation of a reorganization, recapitalization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company (a “Business Combination”), or sale, transfer or other disposition of all or substantially all of the business or assets of the Company to an entity that is not an Affiliate of the Company (a “Sale”), unless immediately following such Business Combination or Sale:  (A) more than 50% of the total voting power of the entity resulting from such Business Combination or the entity that acquired all or substantially all of the business or assets of the Company in such Sale (in either case, the “Surviving Company”), or the ultimate parent entity that has Beneficial Ownership of sufficient voting power to elect a majority of the board of directors (or analogous governing body) of the Surviving Company (the “Parent Company”), is represented by the Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination or Sale (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination or Sale), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to the Business Combination or Sale, (B) no Person or related group of Persons (other than any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company), is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) and (C) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination or Sale were Board members at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination or Sale.

(c)“Cause” means (i) Executive’s willful and continued failure to perform Executive’s duties with the Company; (ii) Executive’s willful and continued failure to follow and comply 

with the written policies of the Company as in effect from time to time; (iii) Executive’s willful commission of an act of fraud or dishonesty resulting in economic or financial injury to the Company; (iv) Executive’s willful engagement in illegal conduct or gross misconduct; (v) Executive’s willful breach of this Agreement; or (vi) Executive’s indictment for, conviction of, or a plea of guilty or nolo contendere to any felony or other crime involving moral turpitude.  No act or failure to act will be treated as willful if it is done, or omitted to be done, by Executive in good faith and with a good faith belief that such act or omission was in the best interests of the Company.

(d)“Control” (including, with correlative meanings, the terms “Controlled by” and “under common Control with”), as used with respect to any Person, means the direct or indirect possession of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities or by contract.  

(e)“Disability” means Executive would be entitled to long-term disability benefits under the Company’s long-term disability plan as in effect from time to time, without regard to any waiting or elimination period under such plan and assuming for the purpose of such determination that Executive is actually participating in such plan at such time.  If the Company does not maintain a long-term disability plan, “Disability” means Executive’s inability to perform Executive’s duties and responsibilities hereunder on a full-time basis for a consecutive period of one hundred eighty (180) days due to physical or mental illness or incapacity that is determined to be total and permanent by a physician selected by the Company or its insurers and reasonably acceptable to Executive or Executive’s legal representative.

(f)“Good Reason” means the occurrence, without the consent of Executive, of either of the following events: (i) any material diminution of, or modification to, Executive’s title, duties, responsibilities, authorities, or terms of employment set forth in Section 3, or a requirement that Executive report to someone other than the Chief Executive Officer of the Company (“the Chief Executive Officer”) as of the Effective Date or the Board of Directors of the Company (the “Board”), after the first anniversary of the Effective Date; or, (ii) any breach by the Company of any of its material obligations to Executive.  Prior to resigning for Good Reason, Executive shall give written notice to the Company of the facts and circumstances claimed to provide a basis for such resignation not more than sixty (60) days following Executive’s knowledge of such facts and circumstances, and the Company shall have ten (10) business days after receipt of such notice to cure (and if so cured, Executive shall not be permitted to resign for Good Reason in respect thereof) and Executive shall resign within ten (10) business days following the Company’s failure to cure; provided that, in the event that the circumstances giving rise to Executive’s resignation are due to a change in reporting structure as described in (i) above, Executive’s resignation shall be effective six (6) months following such change unless an earlier date is determined by the Company.  

(g)“Person” means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, association, unincorporated entity, or other entity.

3.Duties and Responsibilities.  The Company employs Executive, and Executive accepts employment, subject to the terms and conditions contained herein, during the Term, as the Executive Vice President and Chief Operating Officer.  During the Term, Executive agrees to be employed by and devote all of Executive’s business time and attention to the Company and the promotion of its interests and to use Executive’s best efforts to faithfully and diligently serve the Company; provided, however, that, to the extent that such activities do not significantly interfere with the performance of Executive’s duties, services, and responsibilities under this Agreement, Executive shall be permitted to (a) manage Executive’s personal, financial, and legal affairs, (b) serve on civic or charitable boards and committees of such boards and (c) to the extent approved by the Board pursuant to a duly authorized resolution of the Board, serve on 

corporate boards and committees of such boards.  Executive will report solely to the Chief Executive Officer.  Executive will perform such lawful duties and responsibilities as are commensurate with Executive’s titles and positions, and such other duties and responsibilities commensurate with Executive’s titles and positions as may be reasonably requested by the Chief Executive Officer and the Board from time to time. Executive will have the authority customarily exercised by an individual serving as an Executive Vice President and Chief Operating Officer of a corporation of the size and nature of the Company.  Executive’s place of employment will be in Dallas, Texas.

4.Compensation and Related Matters.  (a)  Base Salary.  During the Term, Executive shall receive an aggregate annual base salary (“Base Salary”) at an initial rate of $800,000, payable in accordance with the Company’s applicable payroll practices.  Base Salary shall be reviewed annually by the Board and increased (but not decreased) in the Board’s sole discretion.  References in this Agreement to Base Salary shall be deemed to refer to the most recently effective annual base salary rate.

(b)Annual Bonus.  During the Term, Executive shall be eligible to receive a cash bonus (the “Annual Bonus”) for each year (or portion thereof), provided that, except as otherwise provided herein, Executive has remained employed by the Company as of the applicable payment date.  Executive’s target bonus opportunity for any particular year (the “Target Bonus”) shall be 100% of Base Salary, and Executive’s maximum bonus opportunity shall be 200% of the Target Bonus.  The Annual Bonus shall be subject to performance metrics approved by the Board based on key short-term objectives and shall be at the full discretion of the Board.  Any Annual Bonus shall be paid in the fiscal year following the fiscal year to which such Annual Bonus relates, at the same time as annual bonuses are paid to all other senior executives.

(c)Equity Compensation.  Executive shall be entitled to receive equity compensation awards as described in Exhibit A.

(d)Benefits and Perquisites.  During the Term, Executive shall be entitled to participate in the benefit plans (including, without limitation, life insurance) and programs and receive perquisites that are provided by the Company from time to time for its senior executives generally, subject to the terms and conditions of such plans and programs, as they may be amended from time to time, and commensurate with Executive’s position.  During the Term, Executive shall be entitled to up to $15,000 per year for tax and financial planning. 

(e)Business Expense Reimbursements.  During the Term, the Company shall promptly reimburse Executive for Executive’s reasonable and necessary business expenses in accordance with the Company’s then-prevailing policies and procedures for expense reimbursement (which shall include appropriate itemization and substantiation of expenses incurred). 

(f)Indemnification.  The Company shall indemnify and hold harmless Executive, to the fullest extent permitted by law and the Company’s governing documents, against all claims, expenses, damages, liabilities, and losses incurred by Executive (whether before or after the Original Effective Date) by reason of the fact that Executive is or was, or had agreed to become, a consultant, director, officer, employee, agent, or fiduciary of the Company or any of its subsidiaries or Affiliates or predecessors of any of the foregoing, or any benefit plan of any of the foregoing, or is or was serving at the request of the Company as a consultant, director, officer, partner, venturer, proprietor, trustee, employee, agent, fiduciary, or similar functionary of another corporation, partnership, joint venture, business, person, trust, employee benefit plan, or other entity.  The Company shall provide Executive with customary directors’ and officers’ liability insurance coverage both during and after the Term with regard to matters occurring during employment or while otherwise providing services to, or serving at the request of, the Company or any of its subsidiaries or 

Affiliates, or any benefit plan of any of the foregoing, which coverage shall be at a level at least equal to the greatest level being maintained at such time for any current officer or director and shall continue until such time as suits can no longer be brought against Executive as a matter of law.  Executive will be entitled to advancement of expenses in connection with any claim in the same manner and to the same extent to which any other officer or director of the Company is entitled.  Notwithstanding the foregoing, the Company shall not be required to indemnify or advance expenses to Executive in connection with (i) any dispute in connection with this Agreement or Executive’s employment hereunder; (ii) any action, claim, or proceeding initiated by Executive against the Company unless such action, claim, or proceeding is approved in advance by the Board in writing or (iii) any liabilities, damages, claims or expenses incurred that are attributable to Executive’s fraud, bad faith, willful misconduct, or gross negligence.

5.Termination of Employment.  (a)  Executive’s employment under this Agreement may be terminated by either party at any time and for any reason; provided, however, that Executive shall be required to give the Company at least sixty (60) days’ advance written notice of any voluntary resignation of Executive’s employment hereunder (other than resignation for Good Reason, which shall be subject to the notice provisions set forth in Section 2(f)) (and in such event the Company in its sole discretion may elect to accelerate Executive’s date of termination of employment, it being understood that such termination shall still be treated as a voluntary resignation without Good Reason for purposes of this Agreement).  Notwithstanding the foregoing, Executive’s employment shall terminate automatically upon Executive’s death.  

(b)Following any termination of Executive’s employment under this Agreement, except as provided under Sections 5(c), 5(d), and 5(e), the obligations of the Company to pay or provide Executive with compensation and benefits under Section 4 shall cease, and the Company shall have no further obligations to provide compensation or benefits to Executive hereunder, except (i) for payment of any accrued but unpaid Base Salary and any accrued but unused vacation and for payment of any unreimbursed expenses under Section 4(e), in each case accrued or incurred through the date of termination of employment, payable as soon as practicable and in all events within thirty (30) days following the date of termination of employment, (ii) as explicitly set forth in any other benefit plans, programs, or arrangements applicable to terminated employees in which Executive participates (including, without limitation, equity award agreements), other than severance plans or policies, and (iii) as otherwise expressly required by applicable law.  For the avoidance of doubt, except as otherwise provided below, any Unpaid Annual Bonus (as defined below) is forfeited if Executive’s employment is terminated for any reason.  

(c)If Executive’s employment under this Agreement is terminated (i) by the Company without Cause (other than due to death or Disability), (ii) by Executive for Good Reason, or (iii) due to expiration of the Term on the Expiration Date as a result of the Company delivering a notice of non-renewal as contemplated by Section 1, in addition to the payments and benefits specified in Section 5(b), Executive shall be entitled to receive: (i) severance pay in an aggregate amount (the “Severance Pay”) equal to, two times (2x) the sum of (A) Base Salary plus (B) the prior year’s Annual Bonus; (ii) a prorated Annual Bonus in respect of the fiscal year of termination equal to the product of (x) the amount of Annual Bonus that would have been payable to Executive had Executive’s employment not so terminated based on actual performance measured through the fiscal year of termination, and (y) a fraction, the numerator of which is the number of days elapsed in the Company’s fiscal year in which the termination occurs through such termination and the denominator of which is the number of days in such fiscal year (the “Prorated Bonus”); (iii) any accrued but unpaid Annual Bonus in respect of the fiscal year prior to the fiscal year of termination (the “Unpaid Annual Bonus”); and (iv) continued health insurance benefits under the terms of the applicable Company benefit plans for twenty-four (24) months, subject to Executive’s payment of the cost of such benefits to the same extent that active employees of the Company are required to pay for such benefits from 

time to time; provided, however, that such continuation coverage shall end earlier upon Executive’s becoming eligible for comparable coverage under another employer’s benefit plans; and provided, further, that to the extent that the provision of such continuation coverage is not permitted under the terms of the Company benefit plans or would result in an adverse tax consequence to the Company, the Company may alternatively provide Executive with a monthly cash payment in an amount equal to the applicable COBRA premium that Executive would otherwise be required to pay to obtain COBRA continuation coverage for such benefits for twenty-four (24) months (assuming that COBRA continuation coverage were available for such period) (minus the cost of such benefits to the same extent that active employees of the Company are required to pay for such benefits from time to time) (the “Healthcare Severance Benefits”), commencing as provided in Section 23(c).  The Severance Pay shall be paid in equal installments during the twenty-four (24) month period following Executive’s termination in accordance with the Company’s regular payroll practices, but no less frequently than monthly, and commencing as provided in Section 23(c) below.  The Unpaid Annual Bonus shall be paid on the date bonuses are paid to other executives during the fiscal year of Executive’s termination and the Prorated Bonus shall be paid on the date bonuses are paid to other executives of the Company in the year following the fiscal year of Executive’s termination.  

(d)Notwithstanding anything herein to the contrary, if at any time within eighteen (18) months following a Change in Control, Executive’s employment under this Agreement is terminated (i) by the Company without Cause (other than due to death or Disability), (ii) by Executive for Good Reason, or (iii) due to expiration of the Term on the Expiration Date as a result of the Company delivering a notice of non-renewal as contemplated by Section 1, then Executive, in lieu of any of the amounts and benefits described in Section 5(c) and in addition to the payments and benefits specified in Section 5(b), shall be entitled to receive (i) the Unpaid Annual Bonus, (ii) 2.99 times the sum of (A) Base Salary plus (B) Target Bonus (the “CIC Severance Pay”), (iii) the product of (x) the Target Bonus, and (y) a fraction, the numerator of which is the number of days elapsed in the Company’s fiscal year in which the termination occurs through such termination and the denominator of which is the number of days in such fiscal year (the “Prorated CIC Bonus”), and (iv) the Healthcare Severance Benefits for twenty-four (24) months (as described above and commencing as provided in Section 23(c)).  The CIC Severance Pay and the Prorated CIC Bonus shall be paid in cash in a lump sum on the first payroll following the satisfaction of the Release Condition, subject to Section 23(c); provided, however, if the Change in Control does not constitute a “change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (the “Code”), the portion of the CIC Severance Pay that is not in excess of the Severance Pay that would have been payable upon such termination if Section 5(c) applied shall be paid to Executive in equal monthly installments during the twenty-four (24) month period following Executive’s termination in accordance with the Company’s regular payroll practices, but no less frequently than monthly, and commencing as provided in Section 23(c) below, and the portion of the CIC Severance Pay in excess of such amount shall be paid to Executive in a lump sum 60 days after the consummation of the Change in Control.  The Unpaid Annual Bonus shall be paid on the date bonuses are paid to other executives during the fiscal year of Executive’s termination.

(e)If Executive’s employment under this Agreement is terminated due to death or Disability, in addition to the payments and benefits specified in Section 5(b), Executive shall be entitled to receive (i) the Prorated Bonus, paid on the date bonuses are paid to other executives of the Company in the year following the fiscal year of Executive’s termination and (ii) the Unpaid Annual Bonus, paid on the date bonuses are paid to other executives of the Company in the fiscal year of Executive’s termination.

(f)Executive’s entitlement to the payments and benefits set forth in Sections 5(c) and 5(d) shall be conditioned upon Executive’s having provided an irrevocable waiver and release of claims 

in favor of the Company, its Affiliates, their respective predecessors and successors, and all of the respective current or former directors, officers, employees, shareholders, partners, members, agents, or representatives of any of the foregoing (collectively, the “Released Parties”), substantially in the form attached hereto as Exhibit B (the “Release”), that has become effective in accordance with its terms within sixty (60) days following Executive’s termination of employment (the “Release Condition”), and Executive’s continued compliance with Sections 6 and 7 hereof.

(g)Upon termination of Executive’s employment for any reason, and regardless of whether Executive continues as a consultant to the Company, upon the Company’s request Executive agrees to resign, as of the date of such termination of employment or such other date requested, from the Board and any committees thereof, and, if applicable, from the board of directors (and any committees thereof) of any Affiliate of the Company to the extent Executive is then serving thereon.  The Company’s obligations to make the payments provided for in this Agreement are subject to set-off for any undisputed amounts owed by Executive, to the extent permitted by Section 409A (as defined below) and any Company clawback policy.

(h)The payment of any amounts accrued under any benefit plan, program, or arrangement in which Executive participates shall be subject to the terms of the applicable plan, program, or arrangement, and any elections Executive has made thereunder.  

(i)Following any termination of Executive’s employment, Executive shall have no obligation to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement.  There shall be no offset against amounts due Executive under this Agreement on account of any remuneration attributable to later employment, consultancy, or other remunerative activity of Executive.

6.Confidential Information.  

(a)Executive acknowledges that the Company and its Affiliates continually develop Confidential Information (as defined below), that Executive may develop Confidential Information for the Company or its Affiliates and that Executive may learn of Confidential Information during the course of Executive’s employment.  Executive will comply with the policies and procedures of the Company and its Affiliates for protecting Confidential Information and shall not disclose to any Person or use, other than as required by applicable law or for the proper performance of Executive’s duties and responsibilities to the Company and its Affiliates, any Confidential Information obtained by Executive incident to Executive’s employment or other association with the Company or any of its Affiliates.  Executive understands that this restriction shall continue to apply after Executive’s employment terminates, regardless of the reason for such termination.

(b)All documents, records, tapes, and other media of every kind and description relating to the business, present or otherwise, of the Company or its Affiliates and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by Executive, shall be the sole and exclusive property of the Company and its Affiliates.  Executive shall safeguard all Documents and shall surrender to the Company at the time Executive’s employment terminates, or at such earlier time or times as the Company may specify, all Documents then in Executive’s possession or control.  Executive shall immediately return such Documents and other property to the Company upon the termination of Executive’s employment and, in any event, at the Company’s request.  Executive further agrees that any property situated on the premises of, and owned by, the Company or its Affiliates, including disks and other storage media, filing cabinets, or other work areas, is subject to inspection by the Company’s personnel at any time with or without notice.  

(c)Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the Securities and Exchange Commission (“SEC”). Executive further understands that this Agreement does not limit Executive’s ability to communicate with the SEC or otherwise participate in any investigation or proceeding that may be conducted by the SEC, including providing documents or other information, without notice to the Company. This Agreement does not limit Executive’s right to receive an award for information provided to the SEC.  This Section 6(c) applies only for the period of time that the Company is subject to the Dodd-Frank Act.

(d)“Confidential Information” means any and all information of the Company and its Affiliates that is not generally known by others with whom they compete or do business, or with whom any of them plans to compete or do business and any and all information, publicly known in whole or in part or not, which, if disclosed by the Company or its Affiliates would assist in competition against them.  Confidential Information includes, without limitation, such information relating to (i) the development, research, testing, manufacturing, marketing and financial activities of the Company and its Affiliates, (ii) all products planned, researched, developed, tested, manufactured, sold, licensed, leased or otherwise distributed or put into use by the Company and its Affiliates, together with all services provided or planned by the Company or any of its Affiliates, during Executive’s employment, (iii) the costs, sources of supply, financial performance and strategic plans of the Company and its Affiliates, (iv) the identity and special needs of the customers of the Company and its Affiliates and (v) the people and organizations with whom the Company and its Affiliates have business relationships and those relationships.  Confidential Information also includes any information that the Company or any of its Affiliates have received, or may receive hereafter, belonging to customers or others with any understanding, express or implied, that the information would not be disclosed.

7.Restricted Activities.  Executive agrees that some restrictions on Executive’s activities during and after Executive’s employment are necessary to protect the goodwill, Confidential Information, and other legitimate interests of the Company and its Affiliates.  Following the Original Effective Date, the Company has provided and will continue to provide Executive with access to and knowledge of Confidential Information and trade secrets and will place Executive in a position of trust and confidence with the Company, and Executive will benefit from the Company’s goodwill.  The restrictive covenants below are necessary to protect the Company’s legitimate business interests in its Confidential Information, trade secrets and goodwill. Executive further understands and acknowledges that the Company’s ability to reserve these for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to the Company and that the Company would be irreparably harmed if Executive violates the restrictive covenants below.  In recognition of the consideration provided to Executive as well as the imparting to Executive of Confidential Information, including trade secrets, and for other good and valuable consideration, Executive hereby agrees as follows:

(a)While Executive is employed by the Company and for twenty-four (24) months after Executive’s employment terminates for any reason, whether before or after the Expiration Date (in the aggregate, the “Non-Competition Period”), Executive shall not, directly or indirectly, whether as owner, partner, investor (other than a passive investor of less than 5% in a publicly traded company), consultant, agent, employee, co-venturer, or otherwise, (i) compete with the business of the Company or any of its subsidiaries in any location where the Company or its subsidiaries conducts business (a “Competitive Business”) or (ii) undertake any planning for any Competitive Business.  With respect to the portion of the Non-Competition Period that follows Executive’s termination of employment, the determination of whether a business is a Competitive Business shall be made based on the scope and location of the businesses conducted or planned to be conducted by the Company and its subsidiaries as of the date of such termination.

(b)Executive agrees that, during Executive’s employment with the Company, Executive will not undertake any outside activity, whether or not competitive with the business of the Company or its Affiliates, that would reasonably give rise to a conflict of interest or otherwise interfere with Executive’s duties and obligations to the Company or any of its Affiliates.

(c)Executive further agrees that, during the Non-Competition Period, Executive will not solicit, hire, or attempt to solicit or hire any employee of the Company or any of its Affiliates (or any individual who was employed by the Company or any of its Affiliates during the one (1) year period prior to Executive’s termination), assist in such hiring by any Person, encourage any such employee to terminate his or her relationship with the Company or any of its Affiliates, or solicit or encourage any customer, client, or vendor of the Company or any of its Affiliates to terminate or diminish its relationship with them, or, in the case of a customer, to conduct with any Person any business or activity which such customer conducts with the Company or any of its Affiliates.

(d)Executive shall not, whether in writing or orally, malign, denigrate, or disparage the Company or its Affiliates, or their respective predecessors and successors, or any of the current or former directors, officers, employees, shareholders, partners, members, agents, or representatives of any of the foregoing, with respect to any of their respective past or present activities, or otherwise publish (whether in writing or orally) statements that tend to portray any of the aforementioned parties in an unfavorable light.  The Company shall direct its directors and officers not to, whether in writing or orally, malign, denigrate, or disparage Executive with respect to any of Executive’s past or present activities, or otherwise publish (whether in writing or orally) statements that are intended to portray Executive in an unfavorable light.

(e)Executive’s and the Company’s obligations under this Section 7, as applicable, shall continue beyond the termination of Executive’s employment with the Company.

8.Notification Requirement.  Through and up to the conclusion of the Non-Competition Period, Executive shall give notice to the Company of each new business activity he plans to undertake, at least seven (7) days prior to beginning any such activity.  Such notice shall state the name and address of the Person for whom such activity is undertaken and the nature of Executive’s business relationship(s) and position(s) with such Person.

9.Intellectual Property Rights.  (a)  Executive agrees that the results and proceeds of Executive’s services for the Company (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, writing and other works of authorship) resulting from services performed while an employee of the Company and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived, or reduced to practice or learned by Executive, either alone or jointly with others (collectively, “Inventions”), shall be works-made-for-hire and the Company shall be deemed the sole owner throughout the universe of any and all trade secret, patent, copyright, and other intellectual property rights (collectively, “Proprietary Rights”) of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized, or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion, without any further payment to Executive whatsoever.  If, for any reason, any of such results and proceeds shall not legally be a work-made-for-hire and/or there are any Proprietary Rights which do not accrue to the Company under the immediately preceding sentence, then Executive hereby irrevocably assigns and agrees to assign any and all of Executive’s right, title, and interest thereto, including any and all Proprietary Rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized, or developed, to the 

Company, and the Company shall have the right to use the same in perpetuity throughout the universe in any manner determined by the Company without any further payment to Executive whatsoever.  As to any Invention that Executive is required to assign, Executive shall promptly and fully disclose to the Company all information known to Executive concerning such Invention.

(b)Executive agrees that, from time to time, as may be requested by the Company and at the Company’s sole cost and expense, Executive shall do any and all things that the Company may reasonably deem useful or desirable to establish or document the Company’s exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including the execution of appropriate copyright and patent applications or assignments.  To the extent that Executive has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, Executive unconditionally and irrevocably waives the enforcement of such Proprietary Rights.  This Section 9(b) is subject to and shall not be deemed to limit, restrict, or constitute any waiver by the Company of any Proprietary Rights of ownership to which the Company may be entitled by operation of law by virtue of the Company’s being Executive’s employer.  Executive shall execute, verify, and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof.  In addition, Executive shall execute, verify, and deliver assignments of such Proprietary Rights to the Company or its designees.  Executive’s obligations under this Section 9 shall continue beyond the termination of Executive’s employment with the Company.

(c)Executive hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, that Executive now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

10.Remedies and Injunctive Relief.  Executive acknowledges that a violation by Executive of any of the covenants contained in Sections 6, 7, 8, or 9 would cause irreparable damage to the Company in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate.  Accordingly, Executive agrees that, notwithstanding any provision of this Agreement to the contrary, the Company shall be entitled (without the necessity of showing economic loss or other actual damage) to injunctive relief (including temporary restraining orders, preliminary injunctions, and permanent injunctions) in any court of competent jurisdiction for any actual or threatened breach of any of the covenants set forth in Sections 6, 7, 8, or 9 in addition to any other legal or equitable remedies it may have.  The preceding sentence shall not be construed as a waiver of the rights that the Company may have for damages under this Agreement or otherwise, and all of the Company’s rights shall be unrestricted.

11.Representations; Advice of Counsel. (a)  Executive represents, warrants, and covenants that as of the date hereof:  (i) Executive has the full right, authority, and capacity to enter into this Agreement and perform Executive’s obligations hereunder, (ii) Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive’s duties and obligations to the Company hereunder during or after the Term, and (iii) the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment, or agreement to which Executive is subject.

(b)Prior to execution of this Agreement, Executive was advised by the Company of Executive’s right to seek independent advice from an attorney of Executive’s own selection regarding this Agreement.  Executive acknowledges that Executive has entered into this Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Agreement after being given 

the opportunity to consult with counsel.  Executive further represents that in entering into this Agreement, Executive is not relying on any statements or representations made by any of the Company’s directors, officers, employees, or agents that are not expressly set forth herein, and that Executive is relying only upon Executive’s own judgment and any advice provided by Executive’s attorney.

(c)The Company represents, warrants, and covenants that as of the date hereof:  (i) the Company has the full right, authority, and capacity to enter into this Agreement and perform the Company’s obligations hereunder, (ii) the Company is not bound by any agreement that conflicts with or prevents or restricts the full performance of the Company’s obligations to Executive hereunder during or after the Term, and (iii) the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment, or agreement to which the Company is subject.

12.Cooperation.  Executive agrees that, upon reasonable notice and without the necessity of the Company’s obtaining a subpoena or court order, Executive shall provide reasonable cooperation in connection with any suit, action, or proceeding (or any appeal from any suit, action, or proceeding), and any investigation or defense of any claims asserted against the Company or its Affiliates, that relates to events occurring during Executive’s employment with the Company and its Affiliates as to which Executive may have relevant information (including but not limited to furnishing relevant information and materials to the Company or its designee and providing testimony at depositions and at trial); provided, that with respect to such cooperation occurring following termination of employment, the Company shall reimburse Executive for expenses reasonably incurred in connection therewith.

13.Withholding.  The Company may deduct and withhold from any amounts payable under this Agreement such federal, state, local, non-U.S., and other taxes as are required to be withheld pursuant to any applicable law or regulation.

14.Assignment.  Neither the Company nor Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other party; provided, that the Company may assign its rights under this Agreement without the consent of Executive to a successor to substantially all of the business of the Company in the event that the Company shall effect a reorganization, consolidate with or merge into any other corporation, partnership, organization, or other entity, or transfer all or substantially all of its properties or assets to any other corporation, partnership, organization, or other entity.  This Agreement shall inure to the benefit of and be binding upon the Company and Executive, and their respective successors, executors, administrators, heirs, and permitted assigns.

15.Governing Law; No Construction Against Drafter.  This Agreement shall be deemed made in the State of Delaware, and the validity, interpretation, construction, and performance of this Agreement in all respects shall be governed by the laws of the State of Delaware without regard to its principles of conflicts of law.  No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party’s having or being deemed to have structured or drafted such provision.

16.Consent to Jurisdiction; Waiver of Jury Trial.  (a)  Except as otherwise specifically provided herein, Executive and the Company each hereby irrevocably submit to the exclusive jurisdiction of the federal courts located within the State of Delaware (or, if subject matter jurisdiction in such courts are not available, in any state court located within the State of Delaware) over any dispute arising out of or relating to this Agreement.  Except as otherwise specifically provided in this Agreement, the parties undertake not to commence any suit, action or proceeding arising out of or relating to this Agreement in a forum other than a forum described in this Section 16(a); provided, however, that nothing herein shall preclude either 

party from bringing any suit, action, or proceeding in any other court for the purpose of enforcing the provisions of this Section 16 or enforcing any judgment obtained by either party.

(b)The agreement of the parties to the forum described in Section 16(a) is independent of the law that may be applied in any suit, action, or proceeding, and the parties agree to such forum even if such forum may under applicable law choose to apply non-forum law.  The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit, action, or proceeding brought in an applicable court described in Section 16(a), and the parties agree that they shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court.  The parties agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any suit, action, or proceeding brought in any applicable court described in Section 16(a) shall be conclusive and binding upon the parties and may be enforced in any other jurisdiction.

(c)The parties hereto irrevocably consent to the service of any and all process in any suit, action, or proceeding arising out of or relating to this Agreement by the mailing of copies of such process to such party at such party’s address specified in Section 20.

(d)Each party hereto hereby waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action, or proceeding arising out of or relating to this Agreement.  Each party hereto (i) certifies that no representative, agent, or attorney of any other party has represented, expressly or otherwise, that such party would not, in the event of any action, suit, or proceeding, seek to enforce the foregoing waiver, and (ii) acknowledges that it and the other party hereto has been induced to enter into this Agreement by, among other things, the mutual waiver and certifications in this Section 16(d).

(e)Each party shall bear his or her or its own costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with any dispute arising out of or relating to this Agreement.  

17.Amendment; No Waiver; Severability.  (a)  No provisions of this Agreement may be amended, modified, waived, or discharged except by a written document signed by Executive and a duly authorized officer of the Company (other than Executive).  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.  No failure or delay by either party in exercising any right or power hereunder will operate as a waiver thereof, nor will any single or partial exercise of any such right or power, or any abandonment of any steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.

(b)If any term or provision of this Agreement is invalid, illegal, or incapable of being enforced by any applicable law or public policy, all other conditions and provisions of this Agreement shall nonetheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party; provided, that in the event that any court of competent jurisdiction shall finally hold in a non-appealable judicial determination that any provision of Sections 6 through 10 (whether in whole or in part) is void or constitutes an unreasonable restriction against Executive, such provision shall not be rendered void but shall be deemed modified to the minimum extent necessary to make such provision enforceable for the longest duration and the greatest scope as such court may determine constitutes a reasonable restriction under the circumstances.  

Subject to the foregoing, upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

18.Entire Agreement.  This Agreement constitutes the entire agreement and understanding between the Company and Executive with respect to the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral), between Executive and the Company, relating to such subject matter.  None of the parties shall be liable or bound to any other party in any manner by any representations and warranties or covenants relating to such subject matter except as specifically set forth herein.

19.Survival.  The rights and obligations of the parties under the provisions of this Agreement shall survive, and remain binding and enforceable, notwithstanding the expiration of the Term, the termination of this Agreement, the termination of Executive’s employment hereunder or any settlement of the financial rights and obligations arising from Executive’s employment hereunder, to the extent necessary to preserve the intended benefits of such provisions.

20.Notices.  All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by facsimile or sent, postage prepaid, by registered, certified, or express mail or overnight courier service and shall be deemed given when so delivered by hand or facsimile, or if mailed, three days after mailing (one (1) business day in the case of express mail or overnight courier service) to the parties at the following addresses or facsimiles (or at such other address for a party as shall be specified by like notice):
		
	If to the Company:
	Vistra Energy Corp.

Attn: Corporate Secretary
6555 Sierra Drive
Irving, TX 75039

		
	If to Executive:
	At the most recent address on file in the Company’s records.

Notices delivered by facsimile shall have the same legal effect as if such notice had been delivered in person.
21.Headings and References.  The headings of this Agreement are inserted for convenience only, and neither constitute a part of this Agreement nor affect in any way the meaning or interpretation of this Agreement.  When a reference in this Agreement is made to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated.

22.Counterparts.  This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan (.pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

23.Section 409A.  (a)  For purposes of this Agreement, “Section 409A” means Section 409A of the Code, and the Treasury Regulations promulgated thereunder (and such other Treasury or Internal 

Revenue Service guidance) as in effect from time to time.  The parties intend that any amounts payable hereunder that could constitute “deferred compensation” within the meaning of Section 409A will be compliant with Section 409A or exempt from Section 409A.  

(b)Notwithstanding anything in this Agreement to the contrary, the following special rule shall apply, if and to the extent required by Section 409A, in the event that (i) Executive is deemed to be a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) (as determined in accordance with the methodology established by the Company as in effect on the date of Executive’s “separation from service” (within the meaning of Treasury Regulations § 1.409A-1(h)), (ii) amounts or benefits under this Agreement or any other program, plan, or arrangement of the Company or a controlled group affiliate thereof are due or payable on account of separation from service, and (iii) Executive is employed by a public company or a controlled group affiliate thereof:  payments hereunder that are “deferred compensation” subject to Section 409A that would be made to Executive prior to the date that is six (6) months after the date of Executive’s separation from service shall be made within 10 business days after such six (6) month date or, if earlier, ten (10) days following the date of Executive’s death; following any applicable delay, all such delayed payments, without interest will be paid in a single lump sum on the earliest permissible payment date.  

(c)Except to the extent required to be delayed pursuant to Section 23(b), any payment or benefit due or payable on account of Executive’s separation from service to which this Section 23(c) applies shall be paid or commence, as applicable, upon the first scheduled payroll date immediately after the date the Release Condition is satisfied (the “Release Effective Date”); provided that, to the extent that such payment or benefit represents a “deferral of compensation” within the meaning of Section 409A and the sixty (60) day period following Executive’s separation from service spans two (2) taxable years, payment shall not be made or commence prior to January 1 of the second taxable year.  The first such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Agreement applied as though such payments commenced immediately upon Executive’s termination of employment, and any payments made thereafter shall continue as provided herein.  The delayed benefits shall in any event expire at the time such benefits would have expired had such benefits commenced immediately following Executive’s termination of employment.

(d)Each payment made under this Agreement (including each separate installment payment in the case of a series of installment payments) shall be deemed to be a separate payment for purposes of Section 409A.  Amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulations §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under subparagraph (iii)) and other applicable provisions of Section 409A, and shall be paid under any such exception to the maximum extent permitted.  For purposes of this Agreement, with respect to payments of any amounts that are considered to be “deferred compensation” subject to Section 409A, references to “termination of employment,” “termination,” or words and phrases of similar import, shall be deemed to refer to Executive’s “separation from service” as defined in Section 409A, and shall be interpreted and applied in a manner that is consistent with the requirements of Section 409A.  In no event may Executive, directly or indirectly, designate the calendar year of any payment under this Agreement.  

(e)Notwithstanding anything to the contrary in this Agreement, any payment or benefit under this Agreement or otherwise that is eligible for exemption from Section 409A pursuant to Treasury Regulation § 1.409A-1(b)(9)(v)(A) or (C) (relating to certain reimbursements and in-kind benefits) shall be paid or provided to Executive only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second calendar year following the calendar year in which 

Executive’s “separation from service” occurs; and provided, further, that such expenses are reimbursed no later than the last day of the second calendar year following the calendar year in which Executive’s “separation from service” occurs.  To the extent that any indemnification payment, expense reimbursement, or provision of any in-kind benefit is determined to be subject to Section 409A (and not exempt pursuant to the prior sentence or otherwise), the amount of any such indemnification payment or expenses eligible for reimbursement, or the provision of any in-kind benefit, in one (1) calendar year shall not affect the indemnification payment or provision of in-kind benefits or expenses eligible for reimbursement in any other calendar year (except for any lifetime or other aggregate limitation applicable to medical expenses to the extent permitted by Section 409A), such indemnification, reimbursement, or in-kind benefits shall be provided for the period set forth in this Agreement, or if no such period is set forth, during Executive’s lifetime, in no event shall any indemnification payment or expenses be reimbursed after the last day of the calendar year following the calendar year in which Executive incurred such indemnification payment or expenses, and in no event shall any right to indemnification payment or reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

IN WITNESS WHEREOF, this Agreement has been duly executed by the parties as of the date first written above.

Vistra Energy Corp.

/s/ CURTIS A. MORGAN    
Curtis A. Morgan
Chief Executive Officer

JAMES A. BURKE 

/s/ JAMES A. BURKE    

Exhibit A
	
		
	OIP:
	Equity awards to be subject to the terms of the Company’s Omnibus Incentive Plan.

	Annual Equity Awards:
	Executive will be granted annual equity awards in an amount determined by the Board.  Such awards may be in the form of options, restricted stock units, performance shares, or any other form as approved by the Board. 

	Involuntary Termination Without Cause / Resignation for Good Reason / Non-Renewal of Term by the Company:
	Subject to delivery (and non-revocation) of the Release and continued compliance with Sections 6 and 7 of this Agreement, accelerated vesting of the portion of Executive’s outstanding equity awards that would have vested in the 12 months following termination had Executive remained employed (fully vested options to remain exercisable for 90 days following termination or, if Executive is subject Section 16 of the Exchange Act as of such Termination, 180 days from the date of such termination (or until the option’s regular expiration date, if shorter)).

	Termination with Cause / Resignation Without Good Reason / Non-Renewal of the Term by Executive 
	All options and other outstanding awards (unvested and vested) are forfeited upon a termination for Cause.  On any other termination, Executive will retain all vested awards (forfeits unvested), and vested options remain exercisable for 30 days following termination or, if Executive is subject Section 16 of the Exchange Act as of such Termination, 180 days from the date of such termination (or until the option’s regular expiration date, if shorter).

	Death / Disability
	Accelerated vesting of the portion of Executive’s equity awards that would have vested in the 12 months following termination had he remained employed (fully vested options to remain exercisable for one year following termination (or until the option’s regular expiration date, if shorter)).

	Involuntary Termination Without Cause / Resignation for Good Reason / Non-Renewal of Term by the Company Following a Change in Control:
	All equity awards that were outstanding at the time of the Change in Control will vest upon such termination.

Exhibit B
Release of Claims
As used in this Release of Claims (this “Release”), the term “claims” will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, proceedings, obligations, debts, accounts, attorneys’ fees, judgments, losses, and liabilities, of whatsoever kind or nature, in law, in equity, or otherwise.  Capitalized terms used but not defined in this Release will have the meanings given to them in the employment agreement dated May 1, 2019 between Vistra Energy Corp. (the “Company”) and James A. Burke (my “Employment Agreement”).
For and in consideration of the severance payments and benefits, and other good and valuable consideration, I, for and on behalf of myself and my executors, heirs, administrators, representatives, and assigns, hereby agree to release and forever discharge the Company and each of its direct and indirect parent and subsidiary entities, and all of their respective predecessors, successors, and past, current, and future parent entities, affiliates, subsidiary entities, investors, directors, shareholders, members, officers, general or limited partners, employees, attorneys, agents, and representatives, and the employee benefit plans in which I am or have been a participant by virtue of my employment with or service to the Company (collectively, the “Company Releasees”), from any and all claims that I have or may have had against the Company Releasees based on any events or circumstances arising or occurring on or prior to the date hereof and arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever my employment by or service to the Company or the termination thereof, including without limitation any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, intentional infliction of emotional distress, whistleblowing, or liability in tort, and claims of any kind that may be brought in any court or administrative agency, and any related claims for attorneys’ fees and costs, including, without limitation, claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the “ADEA”); the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and any similar state or local law.  I agree further that this Release may be pleaded as a full defense to any action, suit, arbitration, or other proceeding covered by the terms hereof that is or may be initiated, prosecuted, or maintained by me or my descendants, dependents, heirs, executors, administrators, or assigns.  By signing this Release, I acknowledge that I intend to waive and release all rights known or unknown that I may have against the Company Releasees under these and any other laws.
I acknowledge and agree that as of the date I execute this Release, I have no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraph and that I have not filed any claim against any of the Releasees before any local, state, federal, or foreign agency, court, arbitrator, mediator, arbitration or mediation panel, or other body (each individually a “Proceeding”).  I (i) acknowledge that I will not initiate or cause to be initiated on my behalf any Proceeding and will not participate in any Proceeding, in each case, except as required by law or to the extent such Proceeding relates to a claim not waived hereunder; and (ii) waive any right that I may have to benefit in any manner from any relief (whether monetary or otherwise) arising out of any Proceeding, including any Proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”), except in each case to the extent such Proceeding relates to a claim not waived hereunder.  Further, I understand that, by executing 

this Release, I will be limiting the availability of certain remedies that I may have against the Company and limiting also my ability to pursue certain claims against the Company Releasees.
By executing this Release, I specifically release all claims relating to my employment and its termination under ADEA, a federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefit plans.
Notwithstanding the generality of the foregoing, I do not release (i) claims to receive my severance payments and benefits in accordance with the terms of the Employment Agreement, (ii) claims with respect to benefits to which I am entitled under the employee benefit and compensation plans of the Company and its affiliates, including any rights to equity, (iii) claims to indemnification, or (iv) claims that cannot be waived by law.  Further, nothing in this Release shall prevent me from (i) initiating or causing to be initiated on my behalf any claim against the Company before any local, state, or federal agency, court, or other body challenging the validity of the waiver of my claims under the ADEA (but no other portion of such waiver); or (ii) initiating or participating in an investigation or proceeding conducted by the EEOC.
I acknowledge that I have been given at least [21]/[45] days in which to consider this Release.  I acknowledge further that the Company has advised me to consult with an attorney of my choice before signing this Release, and I have had sufficient time to consider the terms of this Release.  I represent and acknowledge that if I execute this Release before [21]/[45] days have elapsed, I do so knowingly, voluntarily, and upon the advice and with the approval of my legal counsel (if any), and that I voluntarily waive any remaining consideration period.
I understand that after executing this Release, I have the right to revoke it within seven days after its execution.  I understand that this Release will not become effective and enforceable unless the seven-day revocation period passes and I do not revoke the Release in writing.  I understand that this Release may not be revoked after the seven-day revocation period has passed.  I understand also that any revocation of this Release must be made in writing and delivered to the Company at its principal place of business within the seven-day period.
This Release will become effective, irrevocable, and binding on the eighth day after its execution, so long as I have not timely revoked it as set forth above.  I understand and acknowledge that I will not be entitled to the severance payments and benefits unless this Release is effective on or before the date that is sixty (60) days following the date of my termination of employment.
I hereby agree to waive any and all claims to re-employment with the Company or any of its affiliates and affirmatively agree not to seek further employment with the Company or any of its affiliates.
The provisions of this Release will be binding upon my heirs, executors, administrators, legal representatives, and assigns.  If any provision of this Release will be held by any court of competent jurisdiction to be illegal, void, or unenforceable, such provision will be of no force or effect.  The illegality or unenforceability of such provision, however, will have no effect upon and will not impair the enforceability of any other provision of this Release.

This Release will be governed in accordance with the laws of the State of Delaware, without reference to the principles of conflicts of law.  Any dispute or claim arising out of or relating to this Release or claim of breach hereof will be brought exclusively in the federal and state courts located within Delaware.  By execution of this Release, I am waiving any right to trial by jury in connection with any suit, action, or proceeding under or in connection with this Release.

            
James A. Burke

            
Date

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