Document:

Exhibit 10.5

  

Deed of Novation
and Amendment

 

Therium
Finance AG IC;

 

Therium
Litigation Funding IC;

 

Dominion
Minerals Corp;

 

Pinchas
Todros Althaus; and

 

Diego
Emilio Roca

 

Relating
to the novation and amendment of a Litigation Funding Agreement

 

     

     

    

 

THIS DEED is dated  26th
of  December 2016

 

BETWEEN:

 

		(1)	THERIUM
                                         FINANCE AG IC, an incorporated cell registered in Jersey number 118618 of Charter
                                         Place, 23-27 Seaton Place, St Helier, Jersey, Channel Islands, JE1 1JY (“the
                                         Transferor”);

 

		(2)	THERIUM
                                         LITIGATION FUNDING IC, a company incorporated in Jersey (no.116617) whose registered
                                         office is Charter Place, 23-27 Seaton Place, St Helier, Jersey, Channel Islands, JE1
                                         1JY(“the Transferee”);

 

		(3)	DOMINION
                                         MINERALS CORP, a company incorporated in Delaware with registered number 257313783000
                                         whose registered office is 17 State Street, Suite 4000, New York, NY 10004 (“the
                                         Claimant”);

 

		(4)	PINCHAS
                                         TODROS ALTHAUS, a citizen of the United States of America residing at 580 Crown Street,
                                         Apartment 607, Brooklyn, NY 11213 (“the Third Party”); and

 

		(5)	DIEGO
                                         EMILIO ROCA, a citizen of the United States of America residing at 1 Marion Court,
                                         Old Bridge, NJ 08857 (together with the Third Party, “the Directors”)

 

together
referred to as the “Parties”.

 

BACKGROUND:

 

		(A)	The
                                         Claimant, the Directors and the Transferor are parties to a funding agreement dated 18th
                                         June 2015, a copy counter-part of which is contained in Schedule I hereof (the
                                         “Funding Agreement”), pursuant to which the Transferor has agreed
                                         to fund the Claimant’s Claim as defined therein (and has done so in part).

 

		(B)	On
                                         10 October 2016, the Claimant terminated its engagement of Akin Gump Strauss Hauer &
                                         Feld LLP (“Akin Gump”) as its Solicitors in relation to the Claim,
                                         which termination was made for cause.

 

		(C)	In
                                         order to continue to pursue the Claim, the Claimant has engaged Winston & Strawn
                                         LLP (“Winston & Strawn”) to replace Akin Gump and to act as the
                                         Claimant’s Solicitors in relation to the Claim.

 

		(D)	The
                                         Parties wish to amend the Funding Agreement to reflect the Claimant’s engagement
                                         of new counsel.

 

		(E)	The
                                         Transferor wishes to assign, transfer and novate all its rights, privileges, duties,
                                         obligations and liabilities under the Funding Agreement to the Transferee with effect
                                         on and from the date of entry into force of this Deed as provided herein (the “Effective
                                         Date”).

 

		(F)	With
                                         effect on and from the Effective Date, the Transferor wishes to be released from its
                                         obligation to fund the Claimant under the Funding Agreement, and the Transferee wishes
                                         to provide such funding on terms and subject to the conditions set out in the Funding
                                         Agreement, as novated and amended pursuant to this Deed.

 

    1 

     

    

 

NOW IT
IS HEREBY AGREED as follows:

 

		1.	Interpretation

 

		1.1	References
                                         to the Parties, Background, clauses and Schedule are respectively to the Parties, Background,
                                         clauses and Schedule of this Deed;

 

		1.2	References
                                         to the singular shall include the plural and vice versa and references to the masculine,
                                         the feminine and the neuter shall include each other gender;

 

		1.3	“Person”
                                         includes any individual, partnership, body corporate, corporation sole or aggregate,
                                         state or agency of a state, and any unincorporated association or organisation, in each
                                         case whether or not having separate legal personality; and

 

		1.4	References
                                         to the word “include” or “including” (or any similar term) are
                                         not to be construed as implying any limitation and general words introduced by the word
                                         “other” (or any similar term) shall not be given a restrictive meaning by
                                         reason of the fact that they are preceded or followed by words indicating a particular
                                         class of acts, matters or things.

 

		2.	Warranties

 

Each
Party warrants for the benefit of the other Parties that:

 

		(A)	it
                                         has the power and authority required to enter into this Deed and perform fully its obligations
                                         hereunder in accordance with its terms;

 

		(B)	it
                                         has obtained all corporate authorisation required to empower it to enter into this Deed
                                         and to perform all of its obligations hereunder in accordance with their terms;

 

		(C)	neither
                                         the entry into nor performance by it of this Deed will result in:

 

		(i)	a
                                         violation or breach of any provision of its constitutional documents;

 

		(ii)	a
                                         breach of, or give rise to a default under, any contract or other instrument to which
                                         it is a party or by which it is bound and which is material to the transaction contemplated
                                         under this Deed;

 

		(iii)	a
                                         violation or breach of any applicable laws or regulations or of any order, decree or
                                         judgment of any court, governmental agency or regulatory authority applicable to it or
                                         any of its assets; or

 

		(iv)	a
                                         requirement for it to obtain any consent or approval of, or give any notice to or make
                                         any registration with, any governmental, regulatory or other authority which has not
                                         been obtained in writing or made at the date of this Deed;

 

		(D)	this
                                         Deed constitutes a valid and legally binding obligations enforceable in accordance with
                                         its terms except insofar as enforcement may be limited by bankruptcy, insolvency or other
                                         laws relating to or affecting enforcement of creditors’ rights or general principles
                                         of equity.

 

    2 

     

    

 

		3.	Effective
                                         Date

 

		3.1	This
                                         Deed shall enter into force (“the Effective Date”) upon the satisfaction
                                         of all of the following conditions:

 

		(A)	Execution
                                         by the Claimant, Winston & Strawn, the Transferor and the Transferee of a Priorities
                                         Agreement in the form attached at Schedule 2 hereof;

 

		(B)	Execution
                                         by the Claimant, Winston & Strawn and Therium Capital Management Limited of a Common
                                         Interest and Non-Disclosure Agreement in the form attached at Schedule 3 hereof;

 

		(C)	Execution
                                         by Winston & Strawn and Therium Capital Management Limited of a Non-Disclosure Agreement
                                         in the form attached at Schedule 4 hereof; and

 

		(D)	Execution
                                         by Winston & Strawn of a reliance letter substantially in the form attached at Schedule
                                         5 hereof.

 

		4.	Novation

 

		4.1	The
                                         Parties agree that on and with effect from the Effective Date:

 

		(A)	the
                                         Transferor shall cease, for all purposes, to be a party to the Funding Agreement and
                                         the Transferee shall, for all purposes, become a party to the Funding Agreement in place
                                         of the Transferor;

 

		(B)	the
                                         Transferee undertakes to the Claimant to observe and perform, on and after the Effective
                                         Date only, all the obligations of the Transferor under the Funding Agreement in place
                                         of the Transferor arising on or after the Effective Date, and shall be party to and shall
                                         be bound by the terms of the Funding Agreement in place of the Transferor. For the avoidance
                                         of doubt, the Transferor shall retain all rights and liabilities under the Funding Agreement
                                         arising prior to the Effective Date; and

 

		(C)	The
                                         Claimant unconditionally and irrevocably releases and discharges the Transferor from
                                         the performance or discharge of the obligations and liabilities agreed to be performed
                                         by the Transferee pursuant to clause 4.1(B) hereof.

 

		(D)	This
                                         Deed shall be treated as constituting all actions, confirmations and undertakings required
                                         of the Transferor and the Transferee under the Funding Agreement in relation to the novation
                                         of the Funding Agreement.

 

		4.2	Save
                                         as expressly provided herein, the provisions of the Funding Agreement shall be un-amended
                                         and shall be binding on the Claimant, the Directors and the Transferee.

 

		5.	Release

 

		5.1	In
                                         consideration of the novation of the Funding Agreement to the Transferee in accordance
                                         with clause 4.1 et seq above, the Transferee hereby releases the Transferor from
                                         all liabilities and claims that the Transferor may have under the Funding Agreement on
                                         or after the Effective Date, whether actual or contingent. For the avoidance of doubt,
                                         such release shall not affect any of the Transferor’s rights and obligations arising
                                         under the Funding Agreement prior to the Effective Date.

 

    3 

     

    

 

		6.	Consent
                                         to Substitution of New Solicitors

 

		6.1	The
                                         Transferor and the Transferee consent to the Claimant’s instruction of Winston
                                         & Strawn as its new Solicitors in substitution for Akin Gump pursuant to clause 9.5
                                         of the Funding Agreement. Such consent shall be deemed to have been provided as of the
                                         date of the Claimant’s termination of its engagement of Akin Gump on 10 October
                                         2016.

 

		7.	Amendment
                                         to Funding Agreement

 

		7.1	The
                                         Funding Agreement is hereby amended as follows:

 

		7.2	“Claimant’s
                                         Solicitors” in the Schedule to the Funding Agreement shall mean Winston & Strawn
                                         LLP;

 

		7.3	Save
                                         for the first sentence, the contents of Recital C are redacted;

 

		7.4	The
                                         definition of “Agreed Percentage” in clause 1.1 is redacted;

 

		7.5	The
                                         definition of “Base Costs” in clause 1.1 is redacted;

 

		7.6	The
                                         reference to “Solicitors’ Contingency Fee Proceeds received by Therium”
                                         in the definition of “Contingency Fee” in clause 1.1 is redacted;

 

		7.7	The
                                         definition of “Costs” in clause 1.1 shall mean legal costs and Disbursements
                                         specified in the Project Plan;

 

		7.8	Part
                                         (b) of the definition of “Funding” in clause 1.1 (referring to Unfunded Costs)
                                         is redacted;

 

		7.9	Part
                                         (ii) of the definition of “Reasonable Costs Sum” in clause 1.1 (referring
                                         to Unfunded Costs) is redacted;

 

		7.10	The
                                         definition of “Solicitor’s Contingency Fee” in clause 1.1 is redacted;

 

		7.11	The
                                         definition of “Solicitor’s Contingency Fee Proceeds” in clause 1.1
                                         is redacted;

 

		7.12	The
                                         definition of “Unfunded Costs” in clause 1.1 is redacted;

 

		7.13	The
                                         reference to the Solicitor’s Contingency Fee (net of any VAT payable thereon) in
                                         clause in clause 2.1 is redacted;

 

		7.14	The
                                         reference to the Agreed Percentage of the Base Costs in clause 7.1 is redacted;

 

		7.15	The
                                         reference to “take and follow the legal advice of the Solicitors” in clause
                                         9.2.8 is redacted and replaced with “consider the legal advice of the Solicitors”

 

		7.16	The
                                         reference to the CFA in clause 9.3.3 is redacted;

 

		7.17	The
                                         reference to “shall be paid into the Solicitors’ client account” in
                                         clause 13.2 shall be redacted and replaced with “shall be placed into escrow”

 

		7.18	The
                                         word “procure” in clause 15.2 is redacted and replaced with the word “ensure”.

 

    4 

     

    

 

		7.19	The
                                         reference to the Solicitor’s Contingency Fee (net of any VAT payable thereon) in
                                         clause 16.4 is redacted;

 

		7.20	The
                                         references to the Solicitors’ Contingency Fee (net of VAT) and Solicitors Contingency
                                         Fee in clause 16.5 are redacted;

 

		7.21	The
                                         reference to the Solicitor’s Contingency Fee in clause 16.7 is redacted;

 

		7.22	The
                                         Committed Funds in respect of Tranche 2 in the Schedule shall be US$2,665,250 and the
                                         Committed Funds in respect of Tranche 3 in the Schedule shall be US$2,515,250.

 

		7.23	References
                                         in the Project Plan to Akin Gump shall be to Winston & Strawn LLP;

 

		7.24	Confidentiality

 

		7.25	The
                                         Parties shall at all times respect and protect the confidentiality of information acquired
                                         in connection with the execution, delivery and performance of this Deed, except pursuant
                                         to any right or obligation by which the relevant Party may be entitled or bound to disclose
                                         information or under compulsion of law or pursuant to the requirements of competent regulatory
                                         authorities. Nothing in this clause shall prevent the disclosure of information by any
                                         Party to its affiliates or to its auditors or legal or other professional advisers.

 

		8.	Severability

 

		8.1	If
                                         any clause or provision of this Deed shall be held to be invalid or unlawful in any jurisdiction
                                         such clause or provision shall only be ineffective to the extent of such invalidity or
                                         unenforceability. The remainder of this Deed shall not be affected thereby and shall
                                         remain in full force and effect and any invalidity or unenforceability in any jurisdiction
                                         shall not invalidate or render unenforceable such provisions in any other jurisdiction.

 

		9.	Counterparts

 

		9.1	This
                                         Deed may be executed in any number of counterparts, and by the Parties on separate counterparts,
                                         but shall not be effective until each Party has executed at least one counterpart.

 

		9.2	Each
                                         counterpart shall constitute an original of this Deed, but all the counterparts shall
                                         together constitute one and the same agreement.

 

		10.	Entire
                                         agreement

 

		10.1	This
                                         Deed, together with any documents referred to in it, constitutes the whole agreement
                                         between the Parties relating to its subject matter and supersedes and extinguishes any
                                         prior drafts, agreements, undertakings, representations, warranties and arrangements
                                         of any nature, whether in writing or oral, relating to such subject matter.

 

		10.2	Each
                                         Party acknowledges that it has not been induced to enter into this Deed by any representation
                                         or warranty other than those contained in this Deed and agrees that it shall have no
                                         remedy in respect of any other such representation or warranty except in the case of
                                         fraud.

 

		10.3	No
                                         variation of this Deed shall be effective unless made in writing and executed as a Deed
                                         by each of the Parties.

 

    5 

     

    

 

		11.	Future
                                         Assurance 

 

		11.1	The
                                         Parties shall do all further acts and things as may be necessary to perfect the novation
                                         of the Funding Agreement to the Transferee.

 

		12.	Good
                                         faith

 

		12.1	Each
                                         Party shall at all times act in good faith towards the other Parties and ensure that
                                         all reasonable endeavours are used to ensure this Deed is observed.

 

		13.	Governing
                                         law

 

This
Deed and any non-contractual obligations arising from or connected with it is governed by, and shall be construed in accordance
with the law of England and Wales.

 

		14.	Jurisdiction

 

		14.1	Any
                                         dispute arising out of or connected to this Deed, including the validity or termination
                                         thereof, shall be finally resolved by a sole arbitrator under the arbitration rules of
                                         the London Court of International Arbitration (the “LCIA”). The seat of the
                                         arbitration shall be London, the language of the arbitration shall be English and the
                                         arbitrator shall be a practicing member of the English Bar. The arbitrator shall be appointed
                                         by the agreement of the Parties provided that, if the Parties cannot reach agreement
                                         on the appointment of the arbitrator within 30 days, then any Party may apply to have
                                         the arbitrator appointed by the LCIA.

 

14.2 

 

IN
WITNESS whereof the Parties hereto have caused this Deed to be duly executed on the day and year first written.

 

	Executed as a deed for and on behalf of	)

	THERIUM FINANCE AG IC	)

	a company incorporated in Jersey by	)

	CS Directors Limited ,	)

	who, in accordance with the laws of	)

	that territory is acting under the	)

	authority of the company	)

	 	 	 
	 	Signature
	 	 
	In the presence
    of	 
	 	 	 
	 	Signature
	 	 

	Name
    [in BLOCK CAPITALS]: 	 	 	 
	 	 	 	 

	Address: 	 	 	 

 

    6 

     

    

 

	Executed as a deed on behalf of	)

	THERIUM
LITIGATION FUNDING IC	)

	a company incorporated in Jersey by	)

	CS Directors Limited ,	)

	who, in accordance with the laws of	)

	that territory is acting under the	)

	authority of the company	)

	 	 	 
	 	Signature
	 	 
	In the presence
    of	 
	 	 	 
	 	Signature
	 	 

	Name
    [in BLOCK CAPITALS]: 	 	 	 
	 	 	 	 

	Address: 	 	 	 

 

	Executed as a deed on behalf of	)

	DOMINION MINERALS CORP	)

	a company incorporated in the USA	)

	by [NAME],	)

	who, in accordance with the laws of	)

	that territory is acting under the	)

	authority of the company	)
	 	 

	 	/s/Diego E. Roca	 
	 	Signature

 

	Executed
    as a deed by	)	 	 	 
	PINCHAS
    TODROS ALTHAUS	)	 	 

	 	/s/Pinchas Althaus 	 
	 	Signature
	 	 
	In the presence
    of	 

 

    7 

     

    

 

	Executed
    as a deed by	)	 	 	 
	DIEGO EMILIO ROCA	)	 	 

	 	/s/Diego E. Roca 	 
	 	Signature

 

    8 

     

    

  

	 	Therium Finance AG IC

Charter Place, 23/27 Seaton Place, St Helier,

Jersey JE1 1JY

An Incorporated Cell Registered in Jersey number 118618

 

	DATE:	2015

 

LITIGATION FUNDING AGREEMENT

 

	(1)	THERIUM FINANCE AG IC

 

	(2)	DOMINION MINERALS CORP

 

	(3)	PINCHAS TODROS ALTHAUS

 

		(4)	DIEGO EMILIO ROCA

 

© 2015 Therium Capital Management Limited

 

     

     

    

 

	DATE:	2015

 

PARTIES:

 

		(1)	THERIUM FINANCE AG IC (an incorporated cell registered in Jersey number 118618) of Charter
Place, 23/27 Seaton Place, St Helier, Jersey, JE1 1JY (“Therium”);

 

		(2)	DOMINION MINERALS CORP,
                                         a company Incorporated in Delaware with registered number 25731378300 whose registered
                                         office is 410 Park Avenue, 15th Floor, New York, NY 10022 (the “Client”);

 

		(3)	PINCHAS TODROS ALTHAUS, a citizen of the United States of America residing at 580 Crown
Street, Apartment 607, Brooklyn, NY 11213; and

 

		(4)	DIEGO EMILIO ROCA, a citizen of the United States of America residing at 1 Marion Court,
Old Bridge, NJ 08857 (together with the third party, ‘the Directors’).

 

RECITALS:

 

		(A)	The Claimant has taken legal advice on the merits of the Claim from the Solicitors.

 

		(B)	In order to facilitate access to justice, the Claimant has sought the agreement of Therium to provide
Funding in respect of the costs and expenses of pursuing the Claim as set out in the Project Plan. The Claimant and Therium have
therefore agreed that Therium will provide funding in respect of the Claim in accordance with the terms of this Agreement.

 

		(C)	In order to pursue the Claim, the Claimant has engaged the Solicitors to act as its representative
on its behalf. The Solicitors have agreed to act for the Claimants on a Contingency Fee Agreement (“CFA”) pursuant
to which the Solicitors will be entitled to payment of a proportion of their fees together with all disbursements from the Funding
plus the Solicitors’ Contingency Fee. The Solicitors have agreed with the Claimant that the Solicitors’ Contingency
Fee (net of any VAT payable thereon) shall be paid to Therium on its behalf, in full and final discharge of the Claimant’s
obligation to pay the Solicitor’s Contingency Fee pursuant to the CFA, and Therium will agree to give credit to the Claimant,
against its entitlements under this Agreement, for any amount of the Solicitors’ Contingency Fee paid to Therium on behalf
of the Solicitors pursuant to the CFA. Therium and the Solicitors have agreed that, in consideration for the Solicitors sharing
the costs and risk of the Claim with Therium, Therium will account to the Solicitors for their share of Therium’s entitlements
under this Funding Agreement.

 

    2 

     

    

 

OPERATIVE PROVISIONS:

 

		1.	Interpretation

 

		1.1	In this Agreement the following definitions shall have the following meanings;

 

“Adverse Costs”
means the costs which the Claimant or Therium is ordered to pay to an opponent or which, with Therium’s approval, the Claimant:

 

		(i)	agrees; or

 

		(ii)	becomes liable for by making or accepting a settlement offer; or

 

		(iii)	becomes liable for by discontinuing the Proceedings;

 

“Adverse Costs Order”
means any order of a Court requiring the Claimant or Therium to pay Adverse Costs;

 

“Agreed Percentage”
means 75%;

 

“Appeal” means
an appeal of a judgment or award in the Proceedings, including any cross-appeal of the Claimant and the Claimant’s response
to any appeal of the Defendant.

 

“Application”
means any application form submitted to by or on behalf of the Claimant together with all materials and documents submitted to
Therium prior to the Commencement Date in connection with the Claimant’s application;

 

“Base Costs”
means the total of Solicitors’ fees (calculated based on the time spent multiplied by the applicable hourly rates, as if
the fees had been incurred on a standard retainer and not the Contingency Fee Agreement), together with any VAT applicable to each
of these, to the extent those fees are properly and reasonably incurred by the Solicitors on behalf of the Claimant on relation
to the Claim and are incurred in accordance with the Project Plan and in accordance with the terms of this Agreement;

 

“Business Day”
means a day on which banks generally are open in the City of London for the transaction of normal banking business (other than
a Saturday);

 

“Challenge Notice”
means written notice setting out the grounds of a challenge to the fees billed which are otherwise payable by Therium pursuant
to this Agreement;

 

“Claim” means
the claim, details of which are set out in the Schedule;

 

“Claim Proceeds”
means any and all value due and/or received by, on behalf of, or in lieu of payment to, the Claimant in connection with or arising
out of the Claim as a result of any judgment, award, order, settlement arrangement or compromise, (including payment of any damages,
compensation, interest, restitution, recovery, judgment sum, arbitral award, settlement sum, compensation payment, consideration
for rights to or in respect of the award, costs and interest on costs), whether in monetary or non-monetary form, whether actual
or contingent, and before deduction of any taxes, costs or other payments or deductions which the Claimant may be liable to pay
in respect of the Claim Proceeds;

 

    3 

     

    

 

“Claim Proceeds Account”
means an account prepared by Therium or its nominee setting out how any Claim Proceeds are to be distributed to the parties under
the Priorities Agreement;

 

“Commencement Date”
means the date specified in the Schedule;

 

“Committed Funds”
means, in relation to each tranche of Funding incepted, the Committed Funds for that tranche of Funding as detailed in the Schedule;

 

“Contingency Fee”
means, in respect of all tranches of Funding incepted, the total of;

 

		(i)	The total of 2.5x the total Funding (as defined in this Agreement) for all tranches of Funding
incepted; plus

 

		(ii)	The applicable percentage share of each increment of the net Claim Proceeds as set out in the Schedule;

 

less deduction of the amount of
any Solicitors’ Contingency Fee Proceeds received by Therium, and plus any VAT payable on the amount due under (i) or (ii);

 

“Costs” means
the Solicitors’ entitlement pursuant to the CFA to be paid the Agreed Percentage of any Base Costs, plus 100% of the Disbursements;

 

“Court” means
the court, arbitration panel or tribunal which has conduct of the Proceedings;

 

“CPR” means
the Civil Procedure Rules and supporting Practice Directions;

 

“Defendant”
means the defendants specified in the Schedule;

 

“Disbursements”
means disbursements (whether raised by invoices by the supplier to the Claimant or invoiced to the Solicitors and Invoiced by them
to the Claimant) plus VAT if applicable, any premium payable for Legal Expenses Insurance and the cost of providing security for
costs if required, where specified in the Project Plan or otherwise agreed or paid by Therium;

 

“Funding” means
the total of;

 

		(a)	the amount of the Committed Funds for all tranches of Funding incepted as detailed in the Schedule;
and

 

		(b)	the total amount of the Unfunded Costs.

 

    4 

     

    

 

“Legal Expenses Insurance”
means an after the event legal expenses insurance policy in respect of Adverse Costs on terms and with an insurer approved by Therium.
such approval not to be unreasonably withheld;

 

“Non-Monetary Proceeds”
shall mean any Claim Proceeds received in non-monetary form;

 

“Notice” means
a notice given in accordance with clause 23;

 

“Notice of Interest”
means a notice of interest given pursuant to clause 12.3;

 

“Notice of Release of
Interest” means a notice of release of interest given pursuant to clause 15.6;

 

“Party” means
a party to this Agreement;

 

“Priorities Agreement”
means a priorities agreement substantially in the form appended to this Agreement as Appendix 3, to be executed by the Claimants
in accordance with clause 6.1;

 

“Proceedings”
means each and every litigation or arbitral proceeding issued or arising out of or in connection with the Claim including any pre-action
correspondence, settlement negotiations or mediation, brief details of which are included in the Schedule and any other proceedings
which Therium agrees in writing shall be the subject of this Agreement pursuant to clause 4.3. For the avoidance of doubt “Proceedings”
does not include an Appeal unless specifically agreed by Therium pursuant to clause 4.2;

 

“Project Plan”
means the project plan for the Claim, including the Solicitors’ estimate of the Funding required to pursue the Claim and
an outline timetable, appended to this Agreement as Appendix 1, as may be varied by agreement between the Parties from time to
time in accordance with clause 19;

 

“Reasonable Costs”
means the amount of any Costs to the extent that those costs are reasonably incurred by the Claimant in accordance with the terms
of this Agreement, up to a maximum of the amount of the Committed Funds for the tranches
of Funding incepted;

 

“Reasonable Costs Sum”
means a sum equal to the total of the following;

 

		(i)	all Reasonable Costs, and all other Base Costs and Disbursements, whether or not those costs were
reasonably incurred by the Claimant in accordance with this Agreement, paid or otherwise funded by Therium pursuant to this Agreement;
and

 

		(ii)	the Unfunded Costs;

 

    5 

     

    

 

 

“Recovery” means
the receipt of any Claim Proceeds;

 

“Solicitors”
means the firm of solicitors instructed by the Claimant to act on its behalf in connection with the Claim and identified as such
in the Schedule;

 

“Solicitor’s Contingency
Fee” means the success fee payment due from the Claimant to the Solicitors pursuant to the CFA, being a proportion of
the Claim Proceeds and disregarding any fees payable during the course of the Proceedings;

 

“Solicitor’s Contingency
Fee Proceeds” means the amount of the Solicitors’ Contingency Fee, net of VAT. as is received by Therium;

 

“Tranche 1”
means the phase in the Proceedings and the Funding requirement, as detailed in the Project Plan, up to the maximum of the Committed
Funds in respect of that first tranche;

 

“Tranche 2”
means the phase in the Proceedings and the Funding requirement, as detailed in the Project Plan, up to the maximum of the Committed
Funds in respect of that second tranche;

 

“Tranche 3”
means the phase in the Proceedings and the Funding requirement, as detailed in the Project Plan, up to the maximum of the Committed
Funds in respect of that third tranche;

 

“Trust Period”
means the period of 80 years from the date of this Agreement;

 

“Unfunded Costs”
means the amount of the Base Costs together with any VAT applicable, which have not been advanced to the Solicitors by Therium
or the Claimant, plus any Disbursements and any other sums incurred by the Solicitors and which have not been paid to the Solicitors
by Therium or the Claimant: and

 

“VAT” means
value added tax at the rate for the time being in force (as may be varied from time to time by HM Revenue & Customs).

 

		1.2.	Any reference to a Recital, Clause, Schedule or Appendix is to the relevant Recital, Clause, Schedule
or Appendix of or to this Agreement and any reference to a sub-clause or paragraph is to the relevant sub-clause or paragraph of
the Clause or Schedule in which it appears.

 

		1.3.	Except where the context requires otherwise words denoting the singular include the plural and
vice versa, and words denoting any one gender include all genders.

 

		1.4.	Any reference to “persons” includes natural persons, firms, partnerships, companies,
corporations, associations, organisations, governments, states, foundations and trusts (in each case whether or not having separate
legal personality).

 

    6 

     

    

 

		1.5.	Any reference to a statute, statutory provision or subordinate legislation shall be construed as
referring to it as from time to time amended, extended or re-enacted.

 

		1.6.	Any phrase introduced by the terms “including”, “include”, “in particular”
or any similar expression shall be construed as illustrative and shall not limit the sense of the words following those terms.

 

		2.	Agreement to Fund

 

		2.1.	Subject to clause 2.2 below, in return for the Claimant’s agreement to pay to Therium, where
there is a Recovery, from and limited to the extent of any such Recovery, the Reasonable Costs Sum, the Solicitors Contingency
Fee (not of any VAT payable thereon) and the Contingency Fee in accordance with the terms of this Agreement, Therium agrees with
effect from the Commencement Date to pay the Claimant’s Reasonable Costs incurred in respect of Tranche 1 up to the amount
of the Committed Funds for that tranche in accordance with the terms of this Agreement.

 

		2.2.	If the Recovery is insufficient to pay the Reasonable Costs Sum and the Contingency Fee in full
then the Recovery shall be applied in accordance with the priority as set out in the Priorities Agreement until the Recovery has
been fully applied, after which no further sum shall be payable pursuant to this Agreement.

 

		2.3.	At the option of Therium, exercisable on the exhaustion of Tranche 1 (unless otherwise waived by
Therium), and at Therium’s sole discretion, Therium shall have the exclusive right but not the obligation to incept Tranche
2 on the terms set out in this Agreement.

 

		2.4.	At the option of Therium, exercisable on the exhaustion of Tranche 2 (unless otherwise waived by
Therium), and at Therium’s sole discretion, Therium shall have the exclusive right but not the obligation to incept Tranche
3 on the terms set out in this Agreement.

 

		2.5.	The option(s) set out as clause 2.3 and 2.4 above shall be exercisable from and including the date
they arise and remain open and exclusive for 2 calendar months from that date. Time shall only start running for the purposes of
this sub-clause when the Claimant or its Solicitors have notified Therium in writing that the preceding Tranche has been exhausted.
If the period of 2 months expires without Therium exercising the option, the Claimant may enter into alternative arrangements for
that and any subsequent tranche, save that Therium shall continue to be entitled to exercise that option at any time up until the
Claimant enter into a binding obligation which puts alternative Funding in place for that and every subsequent tranche, at which
point the option shall lapse.

 

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		3.	Payment Terms and Interest

 

		3.1.	The Reasonable Costs Sum and Contingency Fee shall become payable only in the event that the Claimant
achieves a Recovery and shall be paid in accordance with clause 13.5.

 

		3.2.	In the event that any sum payable under this Agreement is not paid by its due date, interest will
be payable on such sum at the rate of 4% per annum above National Westminster Bank Pic’s base rate for the time being in
force, compounded annually, from the date on which payment was due to the date payment is received, or for such other period as
may be specified in this Agreement.

 

		4.	Changes to the Project Plan

 

		4.1.	In the event that the Defendant brings a counterclaim in the Proceedings, then the Claimant may
request Therium to provide Funding in respect of the Costs of defending the counterclaim If Therium consents to this request, then
the Funding for defending the counterclaim shall form part of the Committed Funds and be incorporated into the Project Plan (which,
along with the Schedule, shall be deemed amended accordingly).

 

		4.2.	In the event of an Appeal, then the Claimant may request Therium to provide Funding in respect
of dealing with the Appeal. If Therium consents to this request, then the Funding for the Appeal shall form part of the Committed
Funds and be incorporated into the Project Plan (which, along with the Schedule, shall be deemed amended accordingly).

 

		4.3.	In the event that proceedings involving the Claimant and relating to the Claim, other than the
Proceedings, are begun, the Claimant may request Therium to provide Funding for any or ail of such proceedings. If Therium consents
to this request (and for the avoidance of doubt Therium may consent to providing Funding in respect of any or all of such proceedings
(or none of them)) the Funding for the proceedings shall form part of the Committed Funds and be incorporated into the Project
Plan (which, along with the Schedule, shall be deemed amended accordingly).

 

		5.	Excluded Costs and Liabilities

 

		5.1.	Unless agreed otherwise (individually at its entire cost or together). Therium will not pay nor
be liable under this Agreement for any of the following costs, sums or liabilities incurred by the Claimant;

 

		5.1.1.	Costs and/or other sums incurred as a result of the Claimant’s failure (on any one or more
occasions) to co-operate with or to follow the advice of the Solicitors;

 

		5.1.2.	Costs and/or other sums incurred as a result of any default by the Claimant;

 

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		5.1.3.	any liability for payment of the Defendant’s costs or the Claimant’s liability for
fines or penalties;

 

		5.1.4.	Costs and/or other sums incurred as a result of any unreasonable failure by the Claimant to comply
with an order of the Court during the Proceedings;

 

		5.1.5.	Costs and/or other sums incurred prior to the Commencement Date (save to the extent that those
costs are included in the Project Plan) or after termination of this Agreement;

 

		5.1.6.	any element of VAT where otherwise recoverable by the Claimants;

 

		5.1.7.	any Costs incurred in excess of the Reasonable Costs; or

 

		5.1.8.	save if and to the extent ordered by the Court, any Adverse Costs incurred by the Claimant as a
result of steps taken before the Commencement Date or after the date of termination of this Agreement.

 

		5.1.9.	save to the extent set out in the Project Plan, any premium for Legal Expenses Insurance.

 

		6.	Conditions Precedent and Warranties

 

		6.1.	This Agreement shall not come into force unless and until all parties have executed and completed
the Priorities Agreement.

 

		6.2.	The Claimant acknowledges and accepts that Therium’s decision to enter into this Agreement
is solely based on the information and materials made available in and with the Application (which shall include copies of all
legal advice to the Claimant relating to the Claim and all correspondence with the Defendant relating to the Claim) and other documents
and materials made available to Therium and its representatives prior to the Commencement Date and that if any such information,
documents and/or materials are inaccurate, untrue, incomplete or have not been disclosed to Therium or its representatives, this
may affect Therium’s decision to provide or continue to provide Funding under this Agreement. The Claimant confirms that
to the best of its knowledge and belief, the information and materials provided in and with the Application, and the documents
and materials made available to Therium and its representatives prior to the Commencement Date are accurate, complete and true
in all material respects and that the Claimant has not failed to disclose any information, document and/or material which would
be relevant to Therium’s decision to enter into and remain bound by this Agreement.

 

    9 

     

    

 

		6.3.	Except as may already have been fully disclosed in writing to Therium prior to the execution of
this Agreement, the Claimant warrants that;

 

		6.3.1.	as at the Commencement Date the Claimant has not granted (or purported to grant) any charge, lien
or other security in favour of a third party over the Claim or the Claim Proceeds (or otherwise dealt with the same in any way);
and

 

		6.3.2.	it will not grant (or purport to grant) any such charge, lien or other security until all payments
due to Therium under this Agreement have been met or otherwise extinguished.

 

		6.4.	Therium and the Claimant each warrants that the execution and performance of, and compliance with,
their respective obligations under this Agreement is fully authorised by each of them and the persons executing the Agreement have
the necessary and appropriate authority to do so.

 

		6.5.	The Claimant warrants and acknowledges that it has taken legal advice from the Solicitors or otherwise
on the terms of this Agreement prior to entering into it.

 

		7.	Payment of Reasonable Costs

 

		7.1.	The Claimant shall instruct the Solicitors and any other suppliers of services provided for in
the Project Plan to address invoices relating to the work described in the Project Plan (in the case of the Solicitors, limited
to the Agreed Percentage of the Base Costs) to the Claimant but marked payable by Therium and to deliver those invoices to Therium
(copied to the Claimant) for payment. In the case of the Solicitors’ own costs, these shall be paid monthly or on such other
terms as are agreed between the Claimant, Therium and the Solicitors.

 

		7.2.	If in the reasonably held opinion of Therium any Costs invoiced by the Solicitors or any other
supplier of services are not Reasonable Costs, Therium shall serve a Challenge Notice on the Claimant, with a copy to the relevant
supplier, within 20 Business Days of delivery of the relevant invoice.

 

		7.3.	In the event of a Challenge Notice being served, the Claimant agrees to raise any queries identified
In the Challenge Notice with the relevant supplier with the aim of reaching an agreement as to the disputed Costs. Where an agreement,
satisfactory to Therium, cannot be reached within 10 Business Days of service of the Challenge Notice, the decision as to whether
such Costs are Reasonable Costs shall be taken by an independent legal costs draftsman within 20 Business Days of his appointment.
The Costs Draftsman so appointed shall be a member of the Association of Law Costs Draftsmen (the “Draftsman”)
and shall be appointed by Therium. Therium and the Claimant agree to be bound by such decision, and the Claimant shall procure
the agreement of the relevant supplier to be bound by such decision. Unless the Draftsman directs another person to pay his costs.
Therium agree to meet his costs which shall be treated as part of the Reasonable Costs.

 

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		7.4.	Pending resolution of a Challenge Notice. Therium shall pay all Costs that are not subject to challenge.

 

		7.5.	Within 5 Business Days of receiving the Draftsman’s decision, Therium will pay any sum owing
to either the relevant supplier and/or the Draftsman if directed by the Draftsman.

 

		8.	Adverse Costs Orders

 

		8.1.	Unless agreed by the Parties in writing, the Claimant shall take out and maintain one or more Legal
Expenses Insurance policies sufficient throughout the Proceedings to meet Adverse Costs. The Claimants shall procure that any insurer
providing such Legal Expenses Insurance policy shall execute the Priorities Agreement on terms acceptable to Therium prior to incepting
the Legal Expenses Insurance policy.

 

		8.2.	The Claimant agrees to indemnify Therium against any Adverse Costs Orders or liability for Adverse
Costs as may be made against or attach to Therium.

 

		8.3.	Nothing in this Agreement shall prejudice;

 

		8.3.1.	Therium’s right to such an indemnity or contribution from the Claimant in respect of any
Adverse Costs Orders: or

 

		8.3.2.	Therium’s contentions in relation to any application by any party to the Proceedings for
an Adverse Costs Order against Therium.

 

		9.	Claimants’ Obligations

 

		9.1.	The Parties recognise that the Solicitors must at all times act independently and in the best interests
of the Claimant and in accordance with their other professional duties. Nothing in this Agreement entitles Therium to interfere
in the conduct of the Claim and/or the Proceedings.

 

		9.2.	The Claimant shall:

 

		9.2.1.	instruct the Solicitors to provide Therium, prior
to execution of this Agreement, with a reliance letter substantially in the form of that annexed to this Agreement at Appendix
2;

 

		9.2.2.	irrevocably instruct the Solicitors to conduct the Proceedings in accordance with the procedural
rules applicable in the Court and comply with any judgment, order or award made in the Proceedings;

 

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		9.2.3.	irrevocably instruct the Solicitors to provide Therium with any documents or information relating
to the Claim and Proceedings as may be reasonably requested by Therium;

 

		9.2.4.	irrevocably instruct the Solicitors to provide Therium, insofar as is reasonably practicable and
proportionate, with copies of draft pleadings, witness statements, expert reports and significant correspondence or documents,
prior to issue;

 

		9.2.5.	irrevocably instruct and authorise the Solicitors to take such steps and perform such actions as
may be required and/or desirable in order to perform and/or give effect to this Agreement, including discharging any obligations
of the Claimant on its behalf as its agent in all respects;

 

		9.2.6.	through instructions to the Solicitors and/or on its own account:

 

		(a)	diligently prosecute the Proceedings and seek to enforce and recover any Claim Proceeds in the
Proceedings;

 

		(b)	keep Therium promptly informed of any significant developments in the Proceedings (including any
settlement discussions, any offers received and any information, evidence or advice coming to the attention of the Claimant or
the Solicitors which may be material either to the prospects of success of the Claim or of enforcing any judgment or award), including
any material adverse change in the prospects of success or if the prospects of success have deteriorated to a level where the case
is unlikely to be successful; and

 

		(c)	make a monthly summary report to Therium in such form as Therium may reasonably require regarding
the overall progress and conduct of the Proceedings, the prospects of success of the Claim, the Costs incurred against the Project
Plan and the expected level of exposure to Adverse Costs;

 

		9.2.7.	comply with the terms of the Legal Expenses Insurance (including as to payment of any premium as
and when due) and any duty owed to the insurer providing such cover, not take or omit to take any step which might potentially
lead to withdrawal, avoidance or cancellation of cover, and supply to Therium a copy of any correspondence from the Legal Expenses
Insurance provider threatening to or withdrawing cover;

 

    12 

     

    

 

		9.2.8.	take and follow the legal advice of the Solicitors at all appropriate junctures, including whether
it would be appropriate to make or accept any offer to settle the Claim;

 

		9.2.9.	co-operate fully and at all times throughout the proceedings with, and promptly provide such instructions
and assistance to the Solicitors as they may require for pursuing the Claim, including providing, or procuring the provision of,
documents in the possession or control of the Claimant or any subsidiaries or associated companies of the Claimant and, in so far
as advised by the Solicitors, including providing access to witnesses for the purpose of preparing witness statements and procuring
the attendance of those witnesses at trial to give evidence on the Claimant’s behalf; and

 

		9.2.10.	give reasonable notice of and permit Therium, where reasonably practicable, to attend as an observer
at internal meetings which include meetings with experts and send an observer to any mediation or hearing relating to the Claim.

 

		9.3.	The Claimant hereby irrevocably instructs the Solicitors to notify Therium in the event that the
Claimant breaches its obligations under this Agreement including but not limited to:

 

		9.3.1.	revoking its instructions made pursuant to clauses 9.2 and this clause 9.3;

 

		9.3.2.	threatening to cease or ceasing to instruct the Solicitors in its dispute;

 

		9.3.3.	disputing any invoice or part of any invoice issued by the Solicitors to them or challenging the
validity or efficacy of the CFA in any way;

 

		9.3.4.	failing to follow the advice of the Solicitors in any material way; and/or

 

		9.3.5.	where the Claimant has made any material misrepresentation or non-disclosure in its application
for funding or otherwise during the course of the operation of this Agreement.

 

		9.4.	Subject to clause 19.2 below, the Parties agree not to do or permit to be done anything likely
to deprive each other of any benefit for which the other has entered into this Agreement.

 

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		9.5.	Therium acknowledges the Claimant’s right to seek advice in relation to the Claim from whichever
solicitors they may choose. In the event, however, that the Solicitors cease to have conduct of the Claim, then the Claimant shall
obtain Therium’s consent to the instruction of any additional or alternative solicitors proposed by the Claimant in place
of the Solicitors before they are instructed.

 

		9.6.	The Claimant agrees that if Therium require any advice given by the Solicitors to the Claimant
in respect of the Claim and/or the Proceedings to be confirmed by Counsel, the Claimant will instruct the Solicitors to instruct
counsel to provide an opinion to the Claimant on such advice and to provide a copy of such opinion to Therium. Therium agrees to
bear the costs of such opinion.

 

		9.7.	For the avoidance of doubt, subject to Therium’s
rights to termination pursuant to clause 15, nothing in this Agreement shall permit Therium to override any advice given by the
Solicitors to the Claimant. This includes any opinion given pursuant to clause 9.6 of this Agreement.

 

		9.8.	The Directors agree and covenant that they shall, in
so far as permissible, exercise their powers as directors and/or shareholders of the Claimant to ensure and at all times procure
that the Claimant complies with its obligations under this Agreement and any Priorities Agreement.

 

		10.	Appeals

 

		10.1.	If one or more of Therium agrees to provide some or all of the Funding in respect of an Appeal
(there being no obligation on them to do so), then the Claimant shall instruct the Solicitors to act on the Appeal.

 

		10.2.	Where Therium elects not to provide any Funding in respect of the Costs of any Appeal;

 

		10.2.1.	the Claimant shall not be obliged to pursue or defend the Appeal but, if they do so, shall comply
with their obligations set out in clause 9;

 

		10.2.2.	subject to any contrary order of the Court, and their right to be indemnified by the Claimant,
Therium shall have no liability for any Adverse Costs or any Adverse Costs Order made in relation to the Appeal; and

 

		10.2.3.	if the Appeal was brought by the Claimant and the Claim Proceeds are reduced as a result of the
Appeal, the Contingency Fee shall be calculated by reference to the amount of the Claim Proceeds immediately prior to the Appeal.

 

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		103.	Where Therium elects to provide Funding in respect of
the Costs of any Appeal;

 

		10.3.1.	clause 10.2.1 will apply;

 

		10.3.2.	clause 8 shall apply in relation to the Adverse Costs of the Appeal;

 

		10.3.3.	if the Claim Proceeds are reduced as a result of the Appeal then the Contingency Fee due to Therium
shall be recalculated to reduce the amount due to Therium following the Appeal; and

 

		10.3.4.	following recalculation in accordance with clause 10.3.3, Therium shall repay any sums paid to
it in excess of their entitlement under this Agreement.

 

		11.	Recovery

 

The Claimant shall use its best endeavours to cause
any Claim Proceeds to be recovered as quickly as possible.

 

		12.	Security for costs

 

		12.1.	Where specified in the Project Plan or as otherwise agreed, in the event of an order of the Court
that the Claimant shall provide security for the costs of a party to the Proceedings, Therium will discharge that order to the
satisfaction of the Court.

 

		12.2.	The Claimant agrees to hold the Legal Expenses Insurance policy and all proceeds payable under
it on trust for Therium throughout the Trust Period on terms that Therium shall be entitled to such part or all of any proceeds
of the Legal Expenses Insurance which become payable as a consequence of an Adverse Costs Order as shall be equal to the amount
of any security posted by Therium pursuant to clause 12.1 used to discharge the Claimant’s liability (either entirely or
in part) in respect of any Adverse Costs Order.

 

		12.3.	The Claimant agrees that within 2 Business Days of whichever is the later of;

 

		12.3.1.	the date on which this Agreement is executed; or

 

		12.3.2.	the date on which the Legal Expenses Insurance policy comes on risk, the Claimant will send to
the insurer(s) providing the Legal Expenses Insurance a written Notice of Interest in duplicate for noting on the insurer’s
records and will provide a copy of such Notice of Interest, duly acknowledged by the insurer, to Therium within 5 Business Days
of receipt of the same by the Claimant.

 

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		13.	Treatment of Claim Proceeds

 

		13.1.	The Claimant agrees to hold any Claim Proceeds received by it or by the Solicitors or any third
party on their behalf, upon trust for Therium throughout the Trust Period on terms that Therium shall be entitled to such part
of the Claim Proceeds as shall be equal to the total of all amounts due under the terms of this Agreement to Therium (as the same
may be reduced in accordance with the Priorities Agreement).

 

		13.2.	The Parties agree that any Claim Proceeds received in monetary form shall be paid into the Solicitors’
client account immediately upon receipt. In the case of any Claim Proceeds received in nonmonetary form, the Claimant shall either
deliver the Claim Proceeds to the Solicitors or pay to the Solicitors as soon as is reasonably practicable the market value of
the Claim Proceeds determined in accordance with clause 13.3.

 

		13.3.	If the Claimant receives any Non-Monetary Proceeds (which, for this purpose, shall include non-monetary
Claim Proceeds resulting from any order for rectification), the Parties agree that the Non-Monetary Proceeds shall be valued by
an independent valuer agreed by the Parties with the cost of that valuation to be met by the Claimant. The Parties shall use their
respective reasonable endeavours to agree on the appointment of the independent valuer and to agree his terms of appointment. Where
the Parties cannot agree on the identity of the independent valuer within 20 Business Days of receipt of the Non-Monetary Proceeds,
the President of the Law Society from time to time shall be requested by any of the Parties to recommend a valuer who shall be
the independent valuer for the purposes of this clause and clauses 13.4 to 13.6 inclusive.

 

		13.4.	The Parties shall be entitled to make written submissions to the independent valuer (provided such
submissions are received by the independent valuer within 10 Business Days of his appointment) and shall use their reasonable endeavours
to provide the independent valuer with such assistance and documents as the independent valuer reasonably requires for the purpose
of reaching a determination as to the value of the Non- Monetary Proceeds.

 

		13.5.	To the extent not provided for by clause 13.4 above, the independent valuer may, in his reasonable
discretion, determine such other procedures to assist with the conduct of the determination as he considers just or appropriate,
including (to the extent he considers necessary) instructing professional advisers to assist him in reaching his determination.

 

		13.6	In making his determination the independent valuer will act as an expert and not as an arbitrator.
The independent valuer shall prepare a written determination and give notice (including a copy) of that determination to the Parties
within 2 months of the matter being referred to him. The independent valuer’s written determination on the matters referred
to him shall be final and binding on the Parties in the absence of manifest error or fraud.

 

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		13.7.	If the independent valuer dies or becomes unwilling or incapable of acting, or does not deliver
his determination within the time required by clause 13.6 then either party may apply to the President from time to time of the
ICAEW to discharge the independent valuer and to appoint a replacement independent valuer and clauses 13.3 to 13.7 shall apply
in relation to the new independent valuer as if he were the first Independent valuer appointed.

 

		13.8.	If any payment due to Therium from the Claim Proceeds or Insurance Proceeds is delayed due to action
or failure to act on the part of the Claimants, the Claimants shall compensate Therium for the delay In making payment by paying
to Therium interest on the sum delayed for the period of the delay calculated in accordance with clause 3.2.

 

		13.9.	On notification of receipt of Claim Proceeds by the Solicitors, Therium shall prepare a draft Claim
Proceeds Account and shall deliver that draft Claim Proceeds Account to each of the parties to the Priorities Agreement for agreement.

 

		13.10.	Once the draft Claim Proceeds Account is agreed or deemed to be agreed pursuant to the Priorities
Agreement (whichever is the earlier), the Parties agree that the Solicitors shall forthwith pay out the Claims Proceeds in accordance
with the agreed Claim Proceeds Account.

 

		13.11.	Any damages awarded against the Claimant in respect of a counterclaim funded pursuant to clause
4.1 shall be deducted from the Claim Proceeds for the purposes of calculating the distribution under the Claims Proceeds Account.
For the avoidance of doubt, such deduction of damages shall not apply where Therium have not funded the cost of defending the counterclaim.

 

		13.12.	If any payment due to Therium from the Claim Proceeds is delayed due to action or failure to act
on the part of the Claimants, the Claimants shall compensate Therium for the delay in making payment by paying to Therium interest
on the sum delayed for the period of the delay calculated in accordance with clause 3.2.

 

		14.	Privilege and Agency

 

		14.1.	The Claimant hereby appoints Therium as the Claimant’s agent for the sole purpose of holding,
reviewing, and commentating on the documents and information provided, including any privileged documents and information, and
deciding whether to fund the Proceedings. The express and only terms of that agency were and are that Therium agreed to all take
reasonable steps in respect of those documents and that information to:

 

		14.1.1.	maintain their confidentiality;

 

		14.1.2.	protect and not waive any privilege attaching to them;

 

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		14.1.3.	keep them secure and safe; and

 

		14.1.4.	use them only in connection with Therium’s business as a litigation funder in connection
with the Proceedings to enable the parties to decide whether Therium should be involved in funding and continuing to fund the Proceedings
and in accordance with clause 16 below.

 

		14.2.	The Claimant and Therium do not waive any legal professional privilege, common interest
                                                                 privilege or other privilege or protection attaching to any documents and information disclosed to Therium. Any privileged
                                                                 information and documents disclosed at any time to Therium have been or will be disclosed on the additional basis that
                                                                 Therium has, or will have, a common interest in the pursuit and success of the Proceedings and will at all times take all
                                                                 reasonable steps to maintain that privilege.

 

		14.3.	Therium shall, for the purposes of clauses 14.1 and 14.2. include Therium’s directors, officers,
employees, investment advisers, attorneys, consultants, solicitors, counsel, associated companies, insurers, shareholders and agents.

 

		15.	Confidentiality

 

		15.1.	Without prejudice to clause 14 above, the Parties agree to keep confidential and, where appropriate
maintain any privilege belonging to the Claimant, in all documents and information supplied by the Claimant. Therium or the Solicitors,
including (unless otherwise agreed) the existence and / or terms of this Agreement. It is agreed that the provision of privileged
documents does not amount to any waiver of privilege, and the Parties shall not use these for any purpose other than in respect
of this Agreement, except a purpose to which the Parties have consented or as required by law or regulation. The Claimant agrees
that Therium may disclose such documents and information;

 

		15.1.1.	to their investment advisers, auditors, brokers, legal advisers, investors and potential investors,
insurers and potential insurers;

 

		15.1.2.	where Therium is under a legal or regulatory obligation to make such disclosure, but limited to
the extent of that legal obligation;

 

		15.1.3.	to the extent that it is already in the public domain (other than as a result of Therium’s
breach of this Agreement);

 

		15.1.4.	with the prior written consent of the Claimant; or

 

		15.1.5.	to the extent necessary to take legal action to enforce Therium’s rights under this Agreement
or to defend such action.

 

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		15.2.	Therium shall procure that any persons receiving confidential documents or information pursuant
to sub-clause 14.1.1 shall comply with the obligations imposed on Therium pursuant to subclause 14.1.

 

		15.3.	Nothing in this Agreement shall prevent Therium instructing one or more agents to undertake any
action or review documents, evidence or information which Therium would be entitled to undertake pursuant to this Agreement save
that Therium shall procure that any agent acting on its behalf shall comply with the obligations imposed on Therium by clause 14.1.

 

		15.4.	Therium will immediately inform the Claimant of
any request or order to disclose their privileged documents or any other privileged information held by Therium, except where
informing the Claimant would contravene any law or regulation.

 

		16.	Termination

 

		16.1.	Without prejudice to clause 6.1 and subject to earlier termination of this Agreement pursuant to
clauses 16.2 to 16.6. this Agreement shall continue in full force and effect until payment of any and all sums due to Therium pursuant
to this Agreement and in any event clauses 1, 3.2, 6.2, 6.3, 6.4, 8.2 to 8.6,12.2,14 to 18, 21 to 24 and 26 to 28 shall continue
in full force and effect notwithstanding Termination of this Agreement. For the avoidance of doubt, the option(s) at clauses 2.3
and 2.4 above shall not remain open for exercise by Therium after termination of this Agreement.

 

		16.2.	The Claimant and Therium may at any time agree, by mutual consent in writing, to suspend or terminate
this Agreement in which event they shall serve Notice of such suspension or termination on the Solicitors.

 

		16.3.	If Therium reasonably ceases to be satisfied as to the merits of the Claim or Therium reasonably
believes that the Claim is no longer commercially viable, then Therium shall be entitled to suspend until further notice by Therium
or terminate this Agreement by giving 5 Business Days’ Notice to the Claimant. Following such termination or during the period
of suspension, Therium shall have no further liability to fund the Reasonable Costs not yet incurred but such suspension or termination
shall not affect any accrued rights or entitlements of Therium.

 

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		16.4.	In the event that Therium reasonably considers that there has been a material breach of this Agreement
by the Claimant, Therium may notify the Claimant that Therium requires the Claimant to remedy the breach within 20 Business Days.
In the event that the breach is not remedied within that period. Therium shall be entitled to suspend until further notice by Therium
or terminate this Agreement forthwith by giving Notice to the Claimant, copied to the Solicitors. Following such termination or
during the period of suspension under this clause 16.4, Therium shall have no further liability to fund the Reasonable Costs not
yet incurred. Within 5 Business Days of termination under this clause 16.4 by Therium. the Claimant shall pay to Therium the Reasonable
Costs Sum calculated as at that date, together with interest calculated in accordance with clause 3.2 from the date of this Agreement
to the date of payment. Following such termination, Therium shall remain entitled to the Solictors Contingency Fee (net of any
VAT payable thereon) and Contingency Fee upon Recovery and, for the purpose of calculating this, Therium shall be deemed to have
exercised the option(s) set out above at clause 2.3 and 2.4. For the purposes of this clause 16.4, a material breach shall include,
but not be limited to, any breach of any of the warranties set out in clauses 6.2 to 6.4.

 

		16.5.	In the event of a material breach of this Agreement by Therium. the Claimant shall notify Therium
that the Claimant requires Therium to remedy the breach within 20 Business Days. In the event that the breach is not remedied within
that period, the Claimant shall be entitled to terminate this Agreement forthwith by giving Notice to Therium, copied to the Solicitors
Following such termination, Therium shall remain entitled to its share of the Reasonable Costs Sum, calculated as at the date of
termination, and the Solicitors’ Contingency Fee (net of VAT) upon Recovery. For the avoidance of doubt, save in relation
to the Solicitors Contingency Fee, following such termination Therium shall have no future entitlement to the Contingency Fee.

 

		16.6.	In the event of termination of this Agreement pursuant to clauses 16.2 to 16.5, the Claimant shall
within 20 Business Days put in place alternative arrangements to discharge any order for security for costs and, at the end of
the 20 Business Days period, Therium shall be entitled to terminate any such arrangements made on the Claimant’s behalf pursuant
to clause 12.1. Therium shall, on payment by the Claimant to Therium of an amount equal to the amount (if any) of any security
for costs posted by Therium which has been used to discharge the Claimant’s liability in respect of any Adverse Costs Order,
provide the Claimant with a written Notice of Release of interest in respect of the Legal Expenses Insurance.

 

		16.7.	Termination of this Agreement shall not affect any accrued rights or liabilities nor will it affect
the coming into force or the continuance in force of any provision which is expressly or by implication intended to come into or
continue in force on or after such termination including but not limited to clauses 2.1, 7, 9 and 12 including in particular its
right to information, to continue to hold its security and to be paid any amounts due to it including the Solicitors Contingency
Fee and Contingency Fee.

 

		17.	Contracts (Rights of Third Parties) Act

 

A person who is not a party
to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 or otherwise to enforce any term of
this Agreement.

 

    20 

     

    

 

		18.	Data Protection

 

In performing their respective
obligations and exercising their respective rights under this Agreement, the parties agree to comply with the terms of the Data
Protection Act 1998 and all regulations published pursuant to that Act.

 

		19.	Assignment

 

		19.1.	The Parties agree that Therium shall be entitled to assign to a third party any or all of their
rights, interests and obligations pursuant to this Agreement upon giving 5 Business Days’ Notice of its intention to do so
to the other Parties to this Agreement.

 

		19.2.	Save as provided in clause 18.1, a Party shall not assign or transfer this Agreement or any of
its rights under it, or purport to do any of the same, nor sub-contract any or all of its obligations under this Agreement.

 

		20.	Variation

 

No variation to this Agreement
shall be valid unless it is in writing and signed by the Parties’ authorised signatories.

 

		21.	Waiver

 

No forbearance or delay by a
Party in enforcing its rights shall prejudice or restrict the rights of that Party, and no waiver of any such rights or of any
breach of any contractual terms will be deemed to be a waiver of any other right or of any later breach.

 

		22.	Invalidity and severability

 

If any provision of this Agreement
is or becomes invalid, illegal or unenforceable whether in whole or in part or in relation to any of the Parties to the Agreement,
the validity, legality and enforceability of the remainder of the Agreement, or its validity and enforceability as against other
parties, shall not in any way be affected. The Parties shall nevertheless negotiate in good faith in order to agree the terms of
a mutually satisfactory provision, achieving so nearly as possible the same commercial effect, to be substituted for the provision
so found to be void or unenforceable and each Party shall take any step required, including executing any further or other document,
in order to give effect to the Parties’ Intention in entering into this Agreement.

 

		23.	Succession

 

This Agreement shall be binding
on the Parties, their successors and assigns and the name of a Party appearing herein shall be deemed to include the names of any
such successor or assign.

 

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		24.	Notices

 

		24.1.	Any Notice to be served under this Agreement shall be in writing and may be delivered by hand or
sent by pre-paid first class recorded delivery post to the Party to be served at the relevant address set out in this Agreement
or any such other address as the Party to be served may have notified to the other Party for the purposes of this clause 24.1.

 

		24.2.	For the purpose of service of Notice or other documents on the Claimants, the Claimants agree that
service on the Solicitors shall be valid and adequate service on the Claimants.

 

		24.3.	Any Notice shall be deemed to have been served;

 

		24.3.1.	If delivered by hand, at the time of delivery to the Party or Solicitors; or

 

		24.3.2.	if posted, at 10.00am on the second Business Day after it was posted to the Party or Solicitors.

 

		24.4.	In proving service of a Notice it shall be sufficient to prove that delivery by hand was made or
that the envelope containing the Notice was properly addressed and posted as a pre-paid first class recorded delivery letter.

 

		25.	Counterparts

 

This Agreement may be signed
in any number of counterparts, each of which taken together shall be deemed to constitute one and each of which individually shall
be deemed to be an original, with the same effect as if the signature on each counterpart were on the same original.

 

		26.	Non-reliance and exclusion of liability

 

The Claimant accepts and agrees
that it has taken such legal advice as they require prior to entering into this Agreement and have not relied on Therium, its directors,
officers, shareholders or investors in deciding whether or not to enter into this Agreement and in deciding whether or not to pursue
the Proceedings, By entering into this Agreement, the Claimant agrees and accepts that neither Therium nor its directors, officers,
shareholders or investors owe any obligation, responsibility or duty to the Claimant save as expressly set out in this Agreement
and the Priorities Agreement and do not accept any liability to the Claimant or any third party whatsoever save as expressly set
out in this Agreement and the Priorities Agreement.

 

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		27.	Dispute Resolution

 

		29.1	The Parties agree that in the event of any dispute between Therium and/or the Claimant or any one
or more of them relating to;

 

		29.1.1	Settlement of the Claim; or

 

		29.1.2	termination of this Agreement under clause 16;

 

either party shall be entitled
to direct the Solicitors to refer the dispute to an independent Queen’s Counsel, whose identity is to be agreed between the
Parties or, in lieu of such agreement, to be nominated by the Chairman of the Bar Council. Such Queen’s Counsel shall be
deemed to be jointly instructed by both parties.

 

		29.2	In the event of a dispute over settlement of the Claim, the Queen’s Counsel shall be instructed
to provide an opinion as to the appropriate level of settlement. The Parties agree that the Queen’s Counsel’s opinion
on settlement shall be final and binding on each one of them and the Claimant shall instruct the Solicitors accordingly. In the
event of Therium making a reference to Queen’s Counsel in respect of settlement, the Claimant shall not take further steps
to settle the Claim without the consent of Therium until the Opinion is obtained.

 

		29.3	In the event of a dispute over termination of this Agreement, the Queen’s Counsel shall be
instructed to provide an opinion on the rights and entitlements of each of the Parties. The Parties agree that the Queen’s
Counsel’s opinion on this issue in dispute shall be final and binding on each one of them.

 

		29.4	In giving any opinion pursuant to clauses 29.2 and 29.3 above. Queen’s Counsel shall also
be instructed to determine which one or more of the Parties should bear Queen’s Counsel’s fees of giving the Opinion
(and, if more than one Party, the shares in which they are each to bear those fees) and the Parties agree to be bound by this determination
as to liability for the Queen’s Counsel’s fees.

 

		28.	Law and jurisdiction

 

This Agreement is governed by
and is to be construed in accordance with the law of England and Wales. Save for any dispute resolved finally pursuant to clause
28 above, any dispute arising out of or connected to this Agreement, including the validity or termination thereof, shall be finally
resolved under the arbitration rules of the London Court of International Arbitration (the ‘“LCIA”) by a panel
of three arbitrators, with each side nominating one arbitrator which two nominees are to select a third, presiding arbitrator.
The seat of the arbitration shall be London, and the language of the arbitration shall be English. The arbitrators shall be appointed
by the agreement of the Parties as per the above, provided that, if the Parties cannot roach agreement on the appointment of the
arbitrator within 30 days, then any Party may apply to have an arbitrator appointed by the LCIA.

 

    23 

     

    

 

IN WITNESS of which the Parties have each executed this Agreement
on the date shown above

 

Signed for and on behalf of THERIUM FINANCE AG IC:

 

	 	 

 

Signed for an on behalf of DOMINION MINERALS CORP:

 

	 	 

	 	 

                            

PINCHAS TODROS ALTHAUS

	 

                                                            
	 

DIEGO EMILIO ROCA

 

    24 

     

    

 

	THE SCHEDULE	 
	 	 	 
	Claim:	Claims and causes of action against the Defendant pursuant to the United States - Panama Trade Promotion Agreement and the Treaty between the United States and Panama Concerning the Treatment and Protection of Investments arising out of the Claimant’s mining concession over the Cerro Chorcha region in Panama.	 
	 	 	 
	Commencement Date:	The date of this Agreement.	 
	 	 	 
	Claimants’ Solicitors:	Akin Gump Strauss Hauer & Feld LLP.	 
	 	 	 
	Defendant:	Republic of Panama.	 
	 	 	 
	Committed Funds:	 	 

 

	Tranche:	Committed Funds: the GBP equivalent cost to Therium of the following sums (calculated as at the date of inception of the tranche)
	Tranche 1	$1,029,500
	 	 
	Tranche 2	$2,059,000
	 	 
	Tranche 3	$2,059,000
	 	 

 

Percentages applicable to the Contingency Fee as per Contingency
Fee definition sub-para (II):

 

	Increment of net Claim Proceeds	$0 up to and inclusive of $70m	
        Above $70m up to and inclusive of $100m
	
        Above $100m and

        up to and inclusive of $300m
	Above $300m
	Tranche 1	0%	25%	10%	2%
	 	 	 	 	 
	Tranche 2	0%	30%	17.5%	4%
	 	 	 	 	 
	Tranche 3	0%	35%	25%	6%
	 	 	 	 	 

 

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APPENDIX 1

 

Project Plan

 

	Phase I:	Preparation (USD 460,000). This element of the budget is composed of two parts;
	 	 
	 	- Akin Gump Attorney Fees (USD 250,000). This amount is to cover the costs of preparatory work prior to commencement of the arbitration, including preparation of the Notices of Arbitration under the US-Panama BIT and the US-Panama FTA.
	 	 
	 	- ClaimTrading introduction Fee (USD 210,000). This amount is to cover the introduction Fee as agreed in the retainer agreement between Dominion and ClaimTrading Ltd.
	 	 
	 	Phase II:           Arbitral Proceedings (USD 4.75 - 5.75 million).This element of the budget is composed of two parts:
	 	 
	 	- Akin Gump Attorney Fees (USD 3.5 - 4.5 million). We based this part of the budget on an estimate of the actual time needed to prosecute each of the anticipated steps in the arbitration process, based on our experience with these types of cases and the complexity of the dispute. These steps are likely to include drafting the demand for arbitration; conducting the jurisdictional phase (including two exchanges of memorials on jurisdiction, discovery, and a hearing on jurisdiction); conducting the written phase on the merits (including two exchanges of full-blown evidentiary submissions with witness statements and expert reports); conducting discovery on the merits; preparing for and conducting a two-week hearing on the merits; and drafting the post-hearing memorial.
	 	 
	 	- Other Costs (USD 1.25 million). This part of the budget comprises all of the other expected outlays to prosecute the arbitration as needed. These are likely to include the arbitrators’ fees and expenses for a three-member arbitral panel; the hearing arrangements (including the costs of securing the hearing venue, accommodation for the legal team and witnesses, court reporter costs, etc.); and the costs of our experts, which are likely to include (i) an expert on Panamanian law, (ii) a mining expert, and (iii) a valuation expert.
	 	 
	Phase III:	          Post-Award Proceedings (USD 500,000). We have also budgeted for the costs of defending the award from the challenge action which Panama is likely to bring in the event Dominion succeeds on its claims. This challenge will take the form of (i) a legal challenge at the seat of the arbitration if the case goes to ad hoc UNCITRAL arbitration, or (ii) an annulment proceeding before an ICSID annulment panel if the case goes to ICSID arbitration.

 

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APPENDIX 2

 

Specimen letter from Solicitors

 

TO BE PRINTED ONTO AKIN GUMP LETTERHEAD

 

	From:	Akin Gump Strauss Hauer & Feld LLP
	 	 
	To:	Therium Finance AG IC
	 	 
	Dear Sirs
	 	 
	Re:	Dominion Minerals Corp v Republic of Panama (“the Action”).
	 	 
	 	I refer to the above Action in which Akin Gump Strauss Hauer & Feld LLP (“Akin Gump”) is acting for the Claimant. Therium Finance AG IC (“Therium”) has entered into a Funding Agreement (“the Funding Agreement”) and Priorities Agreement (“the Priorities Agreement”), in which Therium agrees to fund the Claimant’s costs and disbursements on the terms set out in those agreements.
	 	 
	 	At clause 6.2 of the Funding Agreement, the Claimant acknowledges that Therium has entered into the Funding Agreement solely based upon the information and materials made available to Therium and its representatives prior to the commencement date of the Funding Agreement and that, if any information, documents and/or materials are inaccurate, untrue, incomplete or have not been disclosed to Therium or its representatives, that this may affect Therium’s decision to provide (or continue to provide) Funding under the Funding Agreement. The Claimant warrants to the best of its knowledge and belief that the information and material made available to Therium and its representatives is accurate, complete and true in all material respects and that they have not failed to disclose any information, documents or material which would be relevant to Therium’s decision to enter into, and remain bound by, the Funding Agreement.
	 	 
	 	Save as provided elsewhere in this letter, insofar as the information, materials and/or documents made available to Therium and its representatives, prior to entering into the Funding Agreement, consist of information, documents or advice to the Claimant provided by Akin Gump, Akin Gump acknowledges and accepts that it has assumed a duty of care to Therium and its shareholders in respect of that information and/or advice, and Akin Gump acknowledges and accepts that neither Therium nor its shareholders have conducted any independent information gathering exercise, has not sought separate legal advice in relation to the merits of the Action brought by the Claimant and Therium and its shareholders have relied upon the information, documents and advice to the Claimant provided by Akin Gump. Furthermore, in continuing to fund the Action, Akin Gump accepts that Therium and its shareholders will continue to rely upon Akin Gump in respect of the advice the firm provides to the Claimant and its ongoing conduct of the Action while instructed by the Claimant.

 

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	 	For the avoidance of doubt, Akin Gump has not provided to Therium all of the documents which have been provided to it by the Claimant, nor has Akin Gump provided full details of the information provided to it orally by the Claimant. To that extent, the information provided by Akin Gump to Therium is incomplete but, so far as Akin Gump is aware, Akin Gump has not failed to disclose any information documents or material which would be relevant to Therium’s decision to enter into, and remain bound by, the Funding Agreement.
	 	 
	 	Furthermore, insofar as Akin Gump accepts a duty of care to Thorium and its shareholders in respect of the accuracy of any information, documents or advice provided, Akin Gump is unable to warrant the accuracy of the information provided to it by the Claimant, Defendant or third parties or the validity of the documents so provided on which any advice may be based. However, so far as Akin Gump is aware, the information provided is accurate and the documents provided are valid.
	 	 
	 	Nothing in this letter shall impose any contractual duty on Akin Gump to advise Therium and its shareholders in relation to the above Action as a client of the firm. Akin Gump’s only client in relation to the Action is (and will remain) the Claimant in that action and, in the event of any conflict between the Claimants and Therium, Akin Gump shall be under no duty to advise Therium, nor shall it be prevented from continuing to advise the Claimants as a result of that conflict arising.
	 	 
	 	Yours faithfully,
	 	 
	 	Akin Gump Strauss Hauer & Feld LLP

 

    28 

     

    

 

APPENDIX 3

 

Specimen Priorities Agreement

 

PRIORITIES AGREEMENT

 

		(1)	THERIUM FINANCE AG IC;

 

		(2)	DOMINION MINERALS CORP; and

 

		(3)	AKIN GUMP STRAUSS HAUER & FELD LLP.

 

    29 

     

    

 

THIS AGREEMENT is made
this day of                     2015

 

BETWEEN:

 

		(1)	THERIUM FINANCE AG IC (company number 116618) of Charter Place, 23/27 Seaton Place, St Helier,
Jersey, JE11JY (“Therium”);

 

		(2)	DOMINION MINERALS CORP a company incorporated In Delaware with registered number 25731378300
whoso registered office is 410 Park Avenue, 15th Floor, New York, NY 10022 (the “Claimant”);

 

		(3)	AKIN GUMP STRAUSS HAUER & FELD LLP (registered in Texas with registration number 800176698)
whose principal place of business is at 1700 Pacific Ave, Suite 4100, Dallas, TX 75201 (“the Solicitors”)

 

individually a “Party”
and together the “Parties”.

 

WHEREAS:

 

		A.	The Claimant has a legal claim against the Defendant in respect of a mining concession over the
Cerro Chorcha region in Panama and intends to issue arbitration proceedings against the Defendant for damages.

 

		B.	Pursuant to a Contingency Fee Agreement entered into between the Solicitors and the Claimant (“CFA”)
the Solicitors act for the Claimant in relation to the Proceedings.

 

		C.	In consideration for Therium entering into a funding agreement (“the Funding Agreement”)
with the Claimant to enable the Proceedings to progress and to enable the Solicitors to act under the CFA, the Parties wish to
set out in this Agreement the priority order for paying the sums due to each of them from any recoveries made in the prosecution
of the Claim.

 

NOW IT IS AGREED AS FOLLOWS:-

 

Definitions

 

		1.	In this Agreement, terms shall have the same meaning as in the Funding Agreement save as follows:

 

“Agreements”
means all of the CFA, the Policy and the Funding Agreement collectively;

 

“Claim Proceeds Account”
means an account prepared by Therium, setting out the share of any Claims Proceeds due to the Parties and the order of payment;

 

“Solicitors Contingency
Fee” means the success fee payment due from the Claimant to the Solicitors pursuant to the CFA. being a proportion of
the Claim Proceeds, and disregarding any foes payable during the course of the Proceedings;

 

    30 

     

    

 

“Independent Counsel”
means an independent barrister of not less than 10 years call who is not and has not otherwise acted for any of the Parties in
connection with the Proceedings;

 

“Notice” means
a notice given in accordance with Clause 6 of this Agreement; and

 

“Notice of Disagreement”
means a notice setting out in reasonable detail the scope, nature of and reasons for a Party’s disagreement with a draft
Claims Proceeds Account;

 

		2.	Time of the essence

 

It is agreed that, in relation
to any time period specified in this Agreement, time shall be of the essence.

 

		3.	Priority for payments from Claim Proceeds

 

		3.1.	It is agreed that all sums due to any of the Parties pursuant to the Agreements shall be paid out
of any Claim Proceeds in accordance with the terms of this Agreement until all such sums are discharged or until the Claim Proceeds
are exhausted.

 

		3.2.	It is agreed that the Claim Proceeds shall be distributed in the following priority order:-

 

		3.2.1.	First, to reimburse Therium for all and any sums paid pursuant to the Funding Agreement and to
pay to the Solicitors the Unfunded Costs (such Unfunded Costs to be paid to Therium on behalf of the Solicitors in accordance with
the terms of Funding Agreement);

 

		3.2.2.	Secondly, any further sums due to Therium and the Solicitors (including for the avoidance of doubt
the balance of the Solicitors Contingency Fee due to the Solicitors but (save for any VAT thereon) payable to Therium) until all
their entitlements to fees or other sums payable pursuant to the Agreements as at the date of distribution have been discharged
in full. To the extent that the Claim Proceeds are insufficient to discharge sums payable pursuant to this sub-clause in full,
the Claim Proceeds after payment of all sums referred in sub-clause 3.2.1 above shall bo applied pari passu on a pro rata basis
to pay Therium and the Solicitors any other sums due to them under the Agreements in accordance with this sub-clause.

 

		3.2.3.	Thirdly, any further Claim Proceeds remaining after deduction of the sums referred to at clauses
3.2.1 to 3.2.2 above shall be paid to the Claimant from which the Claimant shall discharge any further liability it may have to
any other person in such manner as that Claimant and that person shall agree, without further reference to the other Parties.

 

    31 

     

    

 

		3.3.	This Agreement is intended to determine the priority order for distribution of sums recovered in
the Proceedings. In the event of conflict between the terms of this Agreement and any of the Agreements, the terms of this Agreement
shall take precedence save that nothing in this agreement shall affect the validity of the CFA.

 

		4.	Determination of the Parties’ rights and entitlements to the Claim Proceeds

 

		4.1.	As soon as reasonably practicable after receipt of any Claim Proceeds (including any payment made
pursuant to the Policy), by or on behalf of the Claimant, Therium shall prepare a draft Claim Proceeds Account and deliver a copy
to each of the other Parties.

 

		4.2.	Unless, within 14 calendar days from the date of service of the draft Claim Proceeds Account, a
valid Notice of Disagreement has been served on Therium by any one or more of the Parties, the draft Claim Proceeds Account shall
be deemed to be agreed by each of the Parties and any part of a draft Claim Proceeds Account not the subject of a valid Notice
of Disagreement served pursuant to this Clause shall similarly be deemed to be agreed.

 

		4.3.	In the event that a valid Notice of Disagreement is served in accordance with clause 4.2 above,
the Parties agree to seek to resolve that disagreement within a further period of 14 calendar days, failing which any remaining
matters not agreed shall be referred to Independent Counsel who shall be instructed to determine the rights and entitlements of
each of the Parties to the Claim Proceeds pursuant to the Agreements and this Agreement The Parties agree that Independent Counsel’s
determination on this issue shall bo final and binding on each one of them,

 

		4.4.	In making any determination as to the rights and
entitlements of each of the Parties pursuant to clause 4,3 above, Independent Counsel shall also be instructed to determine which
one or more of the Parties should bear Independent Counsel’s fees of making the determination (and, if more than one Party,
the shares in which they are each to bear those fees) and the Parties agree to be bound by this determination as to liability
for Independent Counsel’s fees.

 

		4.5.	Pending any draft Claim Proceeds Account or any part of it being doomed to be agreed, or pending
resolution of any disputed matter by Independent Counsel, the Solicitors shall hold the Claim Proceeds, or such part as is not
agreed, in their client account. The Parties agree that the whole or any part of any draft Claim Proceeds Account which is deemed
to be agreed pursuant to Clause 4.2 above, and any determination of Independent Counsel pursuant to Clauses 4.3 and 4.4 above,
constitutes a binding and irrevocable instruction to the Solicitors to distribute that element of the Claim Proceeds forthwith
in accordance with that whole or part of the Claims Proceeds Account or determination. Whore a Party is directed by Independent
Counsel to meet the fees of Counsel in making a determination under Clause 4.4, then the amount of those fees, and any VAT payable
thereon, shall be deducted by the Solicitors from any amount of the Claims Proceeds due to that Party.

 

    32 

     

    

 

		5.	Warranty

 

The Claimant warrants that, in
so far as it is aware, there are no persons other than the Parties who have any right or claim or interest whatsoever over the
Claim Proceeds in priority or ranking equally with any of the Parties, either in whole or part and that the Claimant has obtained
all consents, waivers or releases as may be required in order to validly confer on the Parties the rights as set out in this Agreement.

 

		6.	Notices

 

		6.1	Any Notice to be served under this Agreement may be delivered by hand or sent by pre-paid first
class recorded delivery post to the Party to be served at the relevant address set out in this Agreement or any such other address
as the Party to be served may have notified to the other Party in accordance with this Clause 6. marked for the attention of the
Individuals as follows:

 

		6.1.1.	in the case of the Solicitors, Matthew Bate;

 

		6.1.2.	in the case of the Claimant, by service on the Solicitors; and

 

		613.	in the case of Therium. Neil Purslow of Therium Capital Management Limited. 78 Duke Street. London,
W1K 6JQ.

 

		6.2.	Any Notice shall be deemed to have been served:

 

		6.2.1.	if delivered, at the time of delivery to the Party; or

 

		6.2.2.	if posted, at 10.00am on the second Business Day after It was posted to the Party.

 

		6.3.	In proving service of a Notice it shall be sufficient to prove that delivery by hand was made or
that the envelope containing the Notice was properly addressed and posted as a pre-paid first class recorded delivery letter.

 

		6.4.	If Notice is served by means of a pre-paid first class recorded delivery letter, the Party serving
such notice shall, on or before posting the Notice, send a copy of it by email to the receiving Party’s usual email address.

 

		7.	Successors and assignments

 

This Agreement shall be binding
upon and enure for the benefit of the successors-in-title and permitted assignees of the Parties hereto.

 

    33 

     

    

 

		8.	Waiver and forbearance

 

No failure to exercise or delay
in exercising any right or remedy under this Agreement shall constitute a waiver thereof and no waiver by any of the Parties of
any breach or non-fulfilment by any of the other Parties of any provision of this Agreement shall be deemed to be a waiver of any
subsequent or other breach of that or any other provision hereof and no single or partial exercise of any right or remedy under
this Agreement shall preclude or restrict the further exercise of any such right or remedy.

 

		9.	Variation

 

No variation of this agreement
shall be valid unless it is in writing and signed by or on behalf of each of the Parties hereto.

 

		10.	Counterparts

 

This Agreement may be executed
in any number of parts each of which, when executed by one or more parties hereto, shall constitute an original document but all
of which shall together constitute one and the same instrument.

 

		11.	Good Faith

 

Each party shall at all times
deal with every other Party in good faith.

 

		12.	Choice of law and jurisdiction

 

This Agreement is governed by
and is to be construed In accordance with the law of England and Wales. Any dispute arising out of or connected to this Agreement,
including the validity or termination thereof, shall be finally resolved by a sole arbitrator under the arbitration rules of the
London Court of International Arbitration (the ‘“LCIA”). The seat of the arbitration shall be London, the language
of the arbitration shall be English and the arbitrator shall be a practising member of the English Bar The arbitrator shall be
appointed by the agreement of the Parties provided that, if the Parties cannot reach agreement on the appointment of the arbitrator
within 30 days, then any Party may apply to have the arbitrator appointed by the LCIA.

 

SIGNED FOR AND ON BEHALF OF THE PARTIES:

 

	Signed for and on behalf of	 	 
	 	 	 
	THERIUM FINANCE AG IC	 	 

 

    34 

     

    

 

	Signed for and on behalf of	 	 
	 	 	 
	DOMINION MINERALS CORP	 	 
	 	 	 
	Signed for and on behalf of	 	 
	 	 	 
	AKIN GUMP STRAUSS HAUER & FELD LLP	 	 

 

    35 

     

    

 

		
        Therium Litigation
Funding IC

        Charter Place, 23/27
Seaton Place

        St Helier, Jersey,
JE1 1JY

        Registered in Jersey.
No. 118617

 

PRIORITIES
agreement 

 

		(1)	THERIUM LITIGATION FUNDING IC

 

		(2)	DOMINION MINERALS CORP;

 

		(3)	WINSTON & STRAWN LLP; and

 

		(4)	WINSTON & STRAWN LONDON LLP

 

     

     

    

 

THIS
AGREEMENT is made this        day of                       2016

 

		BETWEEN:	

 

		(1)	THERIUM LITIGATION FUNDING IC of Charter Place, 23/27 Seaton Place, St Helier, Jersey, JE1 1JY
(“Therium”);

 

		(2)	DOMINION MINERALS CORP a company incorporated in Delaware with registered number 25731378300 whose
registered office is 17 State Street, Suite 4000, New York, NY 10004 (the “Claimant”); and

 

		(3)	winston & strAWn llP an Illinois partnership
registered under number 36-1975990 whose principal place of business is at 35 West Wacker Drive, Chicago, IL 60601-9703 (the “Solicitors”);
and

 

		(4)	WINSTON & STRAWN London LLP an English partnership
registered under number OC386268, whose principal place of business is at 35 West Wacker Drive, Chicago, IL 60601-9703 (the “Winston
& Strawn London LLP”)

 

individually
a “Party” and together the “Parties”.

 

		WHEREAS:	

 

		A.	The Claimant has a legal claim against the Defendant in respect of a mining concession over the
Cerro Chorcha region in Panama and has issued arbitration proceedings against the Defendant for damages (the “Proceedings”)

 

		B.	Akin Gump Strauss Hauer & Feld LLP (“Akin Gump”) entered into a contingency fee
agreement with the Claimant on or around 18th June 2015 and until 10th October 2016 acted for the Claimant
in relation to the Proceedings. To enable the Proceedings to progress and to enable Akin Gump to act under their contingency fee
agreement, Therium Finance AG IC, a Jersey incorporated cell company, and the Claimant entered into a funding agreement dated 18th
June 2015 (the “Funding Agreement”) and Therium Finance AG IC, the Claimant and Akin Gump entered into a priorities
agreement dated around 18th June 2015 setting out the priority order for paying the sums due to each of the parties
thereto from any recoveries made in the prosecution of the Claim (the “First Priorities Agreement”).

 

		C.	Pursuant to an engagement letter dated 30 November 2016 (the “Engagement Letter”),
the Solicitors now act for the Claimant in relation to the Proceedings. On ___ December
2016 inter alios Therium Finance AG IC, Therium and the Claimant entered into a deed of novation with respect to the Funding
Agreement by which inter alia Therium Finance AG IC assigned, transferred and novated all its rights, privileges, duties,
obligations and liabilities under the Funding Agreement to Therium (the “Novation”).

 

		D.	While the Parties acknowledge the primacy of the First Priorities Agreement, in consideration for
Therium entering into the Novation with the Claimant to enable the Procedings to continue, the Parties wish to set out in this
Agreement the priority order for payment of the sums due to each of them from any recoveries made in the prosecution of the Claim
after the application of the First Priorities Agreement.

 

     

     

    

 

NOW IT
IS AGREED AS FOLLOWS:-

 

		Definitions	

 

		1.	In this Deed the following definitions shall have the following meanings:

 

“Agreements”
means all of the Engagement Letter and the Novation collectively;

 

“Base
Costs” means the base costs referred to in the Engagement Letter, any of the Solicitors’ profit costs remaining
unpaid under the terms of the Engagement Letter, any of the fees (excluding uplift) remaining unpaid of any expert witnesses instructed
by the Solicitors in the case and any other disbursements incurred or charged by the Solicitors in the case;

 

“Claim”
means the Claimant’s claims and causes of action against the Defendant in the Proceedings (and any amendment of those claims
or causes of action) and any enforcement action or subsequent proceedings relating thereto;

 

“Claim
Proceeds” means any and all value due to and/or received by, on behalf of, or in lieu of payment to, the Claimant
in connection with or arising out of the Claim as a result of any judgment, award, order, settlement arrangement or compromise,
(including payment of any damages, compensation, interest, restitution, recovery, judgment sum, arbitral award, settlement sum,
compensation payment, costs and interest on costs), whether in monetary or non-monetary form, whether actual or contingent, and
before deduction of any taxes which the Claimant may be liable to pay in respect of the Claim Proceeds, after the application of
the First Priorities Agreement;

 

“Claim
Proceeds Account” means an account prepared by Therium, or the Solicitors at Therium's request, setting out the share
of any Claims Proceeds due to the Parties and the order of payment;

 

“Defendant”
means the Republic of Panama;

 

“Independent
Counsel” means an independent barrister of not less than 10 years call who is not and has not otherwise acted for
any of the Parties in connection with the Proceedings;

 

“Notice”
means a notice given in accordance with Clause 6 of this Agreement; and

 

“Notice
of Disagreement” means a notice setting out in reasonable detail the scope, nature of and reasons for a Party’s
disagreement with a draft Claims Proceeds Account.

 

		2.	Time of the essence

 

It is agreed
that, in relation to any time period specified in this Agreement, time shall be of the essence.

 

		3.	Priority for payments from Claim Proceeds

 

		3.1.	It is agreed that all sums due to any of the Parties pursuant to the Agreements shall be paid out
of any Claim Proceeds in accordance with the terms of this Agreement until all such sums are discharged or until the Claim Proceeds
are exhausted.

 

		3.2.	It is agreed that the Claim Proceeds shall be distributed in the following priority order:-

 

		3.2.1.	First, to pay the Solicitors such sums as are necessary to bring them up to 100% of their Base
Costs; and

 

     

     

    

 

		3.2.2.	Secondly, to reimburse Therium for all and any sums paid pursuant to the Novation.

 

To the extent
that the Claim Proceeds are insufficient to discharge in full all sums referred to in sub-clauses 3.2.1 to 3.2.2 above, the Claim
Proceeds shall be applied between the Solicitors and Therium pari passu on a pro rata basis in proportion to their entitlement
to sums under those sub-clauses.

 

		3.2.3.	Thirdly, any further sums due to Therium until all its entitlements to fees pursuant to the Novation
as at the date of distribution have been discharged in full.

 

		3.2.4.	Fourthly, any further Claim Proceeds remaining after deduction of the sums referred to at clauses
3.2.1 to 3.2.3 above shall be paid to the Claimant or as it may direct from which the Claimant shall discharge any further liability
it may have to any other person in such manner as the Claimant and that person shall agree, without further reference to the other
Parties.

 

		3.3.	This Agreement is intended to determine the priority order for distribution of sums recovered in
the Proceedings. In the event of conflict between the terms of this Agreement and any of the Agreements, the terms of this Agreement
shall take precedence and shall determine the entitlements of the Parties to this Agreement to the Claim Proceeds.

 

		4.	Determination of the Parties’ rights
and entitlements to the Claim Proceeds

 

		4.1.	As soon as reasonably practicable after receipt of any Claim Proceeds and receipt of such information
requested by Therium pursuant to clause 13 of the Funding Agreement to produce a Claim Proceeds Account, Therium, or the Solicitors
at Therium’s request, shall prepare a draft Claim Proceeds Account and serve a copy on each of the other Parties.

 

		4.2.	Unless, within 14 calendar days from the date of service of the draft Claim Proceeds Account, a
valid Notice of Disagreement has been served on Therium by any one or more of the Parties, the draft Claim Proceeds Account shall
be deemed to be agreed by each of the Parties and any part of a draft Claim Proceeds Account not the subject of a valid Notice
of Disagreement served pursuant to this Clause shall similarly be deemed to be agreed.

 

		4.3.	In the event that a valid Notice of Disagreement is served in accordance with clause 4.2 above,
the Parties agree to seek to resolve that disagreement within a further period of 14 calendar days, failing which any remaining
matters not agreed shall be referred to Independent Counsel who shall be instructed to determine the rights and entitlements of
each of the Parties to the Claim Proceeds pursuant to the Agreements and this Agreement. The Parties agree that Independent Counsel’s
determination on this issue shall be final and binding on each one of them.

 

		4.4.	In making any determination as to the rights and entitlements of each of the Parties pursuant to
clause 4.3 above, Independent Counsel shall also be instructed to determine which one or more of the Parties should bear Independent
Counsel’s fees of making the determination (and, if more than one Party, the shares in which they are each to bear those
fees) and the Parties agree to be bound by this determination as to liability for Independent Counsel’s fees.

 

     

     

    

 

		4.5.	In making any determination as to the rights and entitlements of each of the Parties pursuant to
clause 4.3 above, Independent Counsel will act as an expert and not as an arbitrator and his written determination on the matters
referred to him shall be final and binding on the Parties in the absence of manifest error or fraud.

 

		4.6.	Pending any draft Claim Proceeds Account or any part of it being deemed to be agreed, or pending
resolution of any disputed matter by Independent Counsel, Winston & Strawn London LLP shall hold the Claim Proceeds, or such
part as is not agreed, in their client account. The Parties agree that the whole or any part of any draft Claim Proceeds Account
which is deemed to be agreed pursuant to Clause 4.2 above, and any determination of Independent Counsel pursuant to Clauses 4.3
and 4.4 above, constitutes a binding and irrevocable instruction to Winston & Strawn London LLP to distribute that element
of the Claim Proceeds forthwith in accordance with that whole or part of the Claims Proceeds Account or determination. Where a
Party is directed by Independent Counsel to meet the fees of Counsel in making a determination under Clause 4.4, then the amount
of those fees, and any VAT payable thereon, shall be deducted by Winston & Strawn London LLP from any amount of the Claims
Proceeds due to that Party and paid to Independent Counsel.

 

		5.	Warranty

 

The Claimant
warrants that there are no persons other than the Parties who have any right or claim or interest whatsoever over the Claim Proceeds
in priority or ranking equally with any of the Parties, either in whole or part and that the Claimant has obtained all consents,
waivers or releases as may be required in order to validly confer on the Parties the rights as set out in this Agreement.

 

		6.	Notices

 

		6.1.	Any Notice to be served under this Agreement may be delivered by hand or sent by pre-paid first
class recorded delivery post to the Party to be served at the relevant address set out in this Agreement or any such other address
as the Party to be served may have notified to the other Party in accordance with this Clause 6, marked for the attention of the
individuals as follows:

 

		6.1.1.	in the case of the Solicitors and Winston & Strawn London LLP, Matthew Bate, Partner of Winston
& Strawn LLP and Winston & Strawn London LLP, at CityPoint, One Ropemaker Street, London EC2Y 9AW, United Kingdom;

 

		6.1.2.	in the case of the Claimant, by service on the Solicitors; and

 

		6.1.3.	in the case of Therium, Neil Purslow of
Therium Capital Management Limited, 77 Kingsway, London, WC2B 6SR;

 

		6.2.	Any Notice shall be deemed to have been served:

 

		6.2.1.	if delivered, at the time of delivery
to the Party; or

 

     

     

    

 

		6.2.2.	if posted, at 10.00am on the second Business
Day after it was posted to the Party.

 

		6.3.	In proving service of a Notice it shall be sufficient to prove that delivery by hand was made or
that the envelope containing the Notice was properly addressed and posted as a pre-paid first class recorded delivery letter.

 

		6.4.	If Notice is served by means of a pre-paid first class recorded delivery letter, the Party serving
such notice shall, on or before posting the Notice, send a copy of it by email to the receiving Party’s usual email address.

 

		7.	Successors and assignments

 

This Agreement
shall be binding upon and enure for the benefit of the successors-in-title and permitted assignees of the Parties hereto.

 

		8.	Waiver and forbearance

 

No failure
to exercise or delay in exercising any right or remedy under this Agreement shall constitute a waiver thereof and no waiver by
any of the Parties of any breach or non-fulfilment by any of the other Parties of any provision of this Agreement shall be deemed
to be a waiver of any subsequent or other breach of that or any other provision hereof and no single or partial exercise of any
right or remedy under this Agreement shall preclude or restrict the further exercise of any such right or remedy.

 

		9.	Variation

 

No variation
of this agreement shall be valid unless it is in writing and signed by or on behalf of each of the Parties hereto.

 

		10.	Counterparts

 

This Agreement
may be executed in any number of parts each of which, when executed by one or more parties hereto, shall constitute an original
document but all of which shall together constitute one and the same instrument.

 

		11.	Good Faith

 

Each party
shall at all times deal with every other Party in good faith.

 

		12.	Choice of law and jurisdiction

 

This Agreement
is governed by and is to be construed in accordance with the law of England and Wales. Any dispute arising out of or connected
to this Agreement, including the validity or termination thereof, shall be finally resolved by a sole arbitrator under the arbitration
rules of the London Court of International Arbitration (the “‘LCIA”). The seat of the arbitration shall be London,
the language of the arbitration shall be English and the arbitrator shall be a practising member of the English Bar. The arbitrator
shall be appointed by the agreement of the Parties provided that, if the Parties cannot reach agreement on the appointment of the
arbitrator within 30 days, then any Party may apply to have the arbitrator appointed by the LCIA.

 

     

     

    

 

SIGNED FOR AND ON BEHALF
OF THE PARTIES:

 

	Signed for and on behalf of	 
	 	 
	THERIUM LITIGATION FUNDING IC	 
	 	 
	Signed for and on behalf of	 
	 	 
	DOMINION MINERALS CORP	 
	 	 
	Signed for and on behalf of	 
	 	 
	WINSTON & STRAWN LLP	 

 

     

     

    

  

	 	Therium
Capital Management Limited 

78 Duke Street, Mayfair, London W1K 6JQ T

+44
20 74910600 

Registered
in England & Wales. No. 6517819

 

DATE:                             2016

 

COMMON
INTEREST AND NON 

DISCLOSURE AGREEMENT

 

		(1)	THERIUM
CAPITAL MANAGEMENT LIMITED;

 

		(2)	WINSTON
& STRAWN LLP; and

 

		(3)	DOMINION
MINERALS CORP.

 

©
2015 Therium Capital Management Limited

 

     

     

    

 

 

THIS
AGREEMENT is made on the day of                        2015

 

PARTIES

 

The
parties to this Agreement (the ‘Parties’) are:

 

		(1)	THERIUM
                                         CAPITAL MANAGEMENT LIMITED a
                                         company incorporated in England & Wales (registration number 6517819) whose registered
                                         office is at 78 Duke Street, Mayfair, London W1K 6JQ (‘Therium’);

 

		(2)	WINSTON
                                         & STRAWN LLP,
                                         an Illinois partnership registered under number 36-1975990, whose principal place of
                                         business is at 35 West Wacker Drive, Chicago, IL 60601-9703 (‘the
                                         Firm’); and

 

		(3)	DOMINION
                                         MINERALS CORP, a
                                         company incorporated in Delaware with registered number 25731378300 whose registered
                                         office is 17 State Street, New York, NY 10004 (‘the
                                         Client’).

 

PURPOSE

 

The
Parties have common interests in arbitration proceedings to be brought between the Client and the Republic of Panama in which
the Firm is acting and Therium is providing funding (“the Arbitration”).
In connection with that arbitration, the Parties wish to share confidential information with the other parties (‘the
Permitted Purpose’) in accordance with the terms of this Agreement.

 

IT
IS AGREED as follows:

 

1.
Common Interest Materials

 

		1.1.	The
                                         Parties agree and acknowledge that they have a common interest in prosecuting the Arbitration
                                         and in any subsequent enforcement actions relating thereto. In this regard, the Parties
                                         have exchanged and will exchange Confidential Information that may include documents,
                                         oral representations, factual material, mental impressions, memoranda, case assessments,
                                         statements, meeting minutes, interview reports and/or other non-public information relating
                                         to Dominion’s business operations, ownership structure, finances and/or its claims (the
                                         “Common Interest Materials”). Accordingly, the Parties have agreed
                                         to disclose Common Interest Materials to each other and/or their Authorised Persons to
                                         the extent necessary and appropriate to further the Parties’ common interests in relation
                                         to the Arbitration.

 

		1.2.	Each
                                         of the Parties acknowledges and agrees on behalf of itself and each of its respective
                                         Authorised Persons that such disclosures are strictly conditioned upon the understanding
                                         that, unless expressly designated as public information, such disclosures are confidential
                                         and privileged, and shall not result in the waiver of any applicable attorney-client
                                         privilege and/or attorney work-product privilege or otherwise diminish or affect the
                                         privilege or confidentiality of such materials. All Common Interest Materials received
                                         by a Party shall be treated as Confidential Information in accordance with the terms
                                         of this Agreement, and shall be used solely for the purpose of furthering the Parties’ common interests in relation to the Arbitration.
                                         If any third party requests or demands, by document request, subpoena or otherwise, any
                                         Common Interest Materials from a Party, that Party will immediately notify the other
                                         Party, and the Parties will take all reasonable steps to assert all applicable rights
                                         and privileges with regard to the Common Interest Materials and to preserve the confidential
                                         and/or privileged nature of the Common Interest Materials, and agree to cooperate together
                                         as necessary to do so.

 

     

     

    

 

Confidentiality
obligations

 

		2.1.	In
                                         consideration of the Disclosing Party providing Confidential Information, at its discretion,
                                         to a Receiving Party, that Receiving Party shall:

 

		2.1.1.	keep
                                         the Confidential Information secret and confidential;

 

		2.1.2.	neither
                                         disclose nor permit the disclosure of any Confidential Information to any person, except
                                         for disclosure to Authorised Persons in accordance with clause 3, or to a court or other
                                         public body in accordance with clause 4;

 

		2.1.3.	not
                                         use the Confidential Information for any purpose, whether commercial or non-commercial,
                                         other than the Permitted Purpose or save as would be permitted with the terms of any
                                         subsequent funding agreement or insurance policy;

 

		2.1.4.	make
                                         only such limited number of copies of the Confidential Information as are required for
                                         the Permitted Purpose, and provide those copies only to Authorised Persons; and

 

		2.1.5.	take
                                         all reasonable and proper measures to maintain the confidential nature of the Confidential
                                         Information.

 

		2.2.	For
                                         the purposes of this Agreement, the following words shall he following meanings:

 

		2.2.1.	“Authorised
                                         Persons” means the partners, members, officers, employees and professional advisers
                                         of each party including, in the case of Therium, any associated or related company or
                                         partnership where Therium (or its officers) is a partner or designated member or any
                                         of its investors or potential investors, insurers or potential insurers;

 

		2.2.2.	“Confidential
                                         Information” shall mean:

 

		2.2.2.1.	any
                                         information of any nature whatsoever and in whatever form provided directly or indirectly
                                         by the Disclosing Party to a Receiving Party before on or after the date of this Agreement
                                         in connection with the Permitted Purpose;

 

     

     

    

 

		2.2.2.2.	in
respect of information imparted orally, any note or record of its disclosure and any evaluation materials prepared by a Receiving
Party that incorporate any Confidential Information;

 

		2.2.23.	any
copy of any of the foregoing; and

 

		2.2.2.4.	the
fact that discussions are taking place between a Receiving Party and the Disclosing Party.

 

		2.2.3.	“Disclosing
                                         Party” shall mean the party to this Agreement who discloses Information, directly
                                         or indirectly to the Receiving Party under or in anticipation of this Agreement; and

 

		2.2.4.	“Receiving
                                         Party” shall mean a party to this Agreement who receives Information, directly or
                                         indirectly from the Disclosing Party.

 

		2.3.	The
                                         relationship between the Parties created under this Agreement is confidential and is
                                         to be treated as Confidential Information according to the terms of this Agreement. Except
                                         to the extent otherwise required by law or regulation or as otherwise provided in this
                                         Agreement, the Parties shall keep the existence of the relationship and the fact that
                                         evaluations, discussions and negotiations have taken place in relation to the Arbitration
                                         confidential and shall not make any public announcement in relation to, or public comment
                                         upon, the existence of the relationship or the fact that evaluations, discussions or
                                         negotiations in relation to the Arbitration have taken place without the other Party’s
                                         prior written consent. Each Party acknowledges that it shall be liable for any breach
                                         of the terms of this clause by its respective Authorised Persons.

 

Permitted
Disclosure

 

		3.1.	A
                                         Receiving Party may disclose the Confidential Information to those of its partners, members,
                                         officers, employees and professional advisers and, in the case of Therium, any associated
                                         or related company or partnership of Therium or any of its investors or potential investors,
                                         insurers or potential insurers who:

 

		3.1.1.	reasonably
                                         need to receive the Confidential Information to enable the Receiving Party to achieve
                                         the Permitted Purpose;

 

		3.1.2.	have
                                         been informed by the Receiving Party (a) of the confidential nature of the Confidential
                                         Information and (b) that the Disclosing Party provided the Confidential Information to
                                         the Receiving Party subject to the provisions of a written confidentiality agreement;
                                         and

 

     

     

    

 

		3.1.3.	in
                                         the case of the Receiving Party’s partners, officers, employees and advisers and Therium’s
                                         associated or related companies or partnerships, investors or potential investors, insurers or potential insurers, have confidentiality obligations to the Receiving Party
                                         that (a) are no less onerous than the provisions of this Agreement and (b) apply to the
                                         Confidential Information, and who have been instructed to treat the Confidential Information
                                         as confidential.

 

		3.2.	The
                                         Receiving Party shall at all times ensure that its Authorised Persons comply with the
                                         Receiving Party’s obligations under this Agreement.

 

		4.	Disclosure
to court or other public body

 

		4.1.	To
                                         the extent that a Receiving Party is required to disclose Confidential Information by
                                         order of a court or other public body that has jurisdiction over the Receiving Party,
                                         it may do so. Before making such a disclosure that Receiving Party shall, if the circumstances
                                         reasonably permit:

 

		4.1.1.	inform
                                         the Disclosing Party of the proposed disclosure as soon as possible (and if possible
                                         before the court or other public body orders the disclosure of the Confidential Information);

 

		4.1.2.	ask
                                         the court or other public body to treat the Confidential Information as confidential;
                                         and

 

		4.1.3.	(so
                                         far as it is able) permit the Disclosing Party to make representations to the court or
                                         other public body in respect of the disclosure and/or confidential treatment of the Confidential
                                         Information.

 

		5.	Exceptions
to confidentiality obligations

 

		5.1.	A
                                         Receiving Party’s obligations under clause 2 shall not apply to Confidential Information
                                         that:

 

		5.1.1.	the
                                         Receiving Party possessed before the Disclosing Party disclosed it to the Receiving Party;

 

		5.1.2.	is
                                         or becomes publicly known, other than as a result of breach of the terms of this Agreement
                                         by the Receiving Party or by anyone to whom the Receiving Party disclosed it; or

 

		5.1.3.	the
                                         Receiving Party obtains from a third-party, provided that the third-party was not under
                                         any obligation of confidentiality to the Disclosing Party with respect to the Confidential
                                         Information.

 

		6.	Return
of information and surviving obligations

 

		6.1.	Subject
                                         to clause 6.2, a Receiving Party shall (a) at the Disclosing Party’s request, and also
                                         (b) upon any termination of discussions relating to the Permitted Purpose:

 

		6.1.1.	return
                                         and provide to the Disclosing Party all documents and other materials that contain any
                                         of the Confidential Information, including all copies made by the Receiving Party representatives;

 

     

     

    

 

		6.1.2.	permanently
                                         delete all electronic copies of Confidential Information from the Receiving Party’s computer
                                         systems; and

 

		6.1.3.	provide
                                         to the Disclosing Party a certificate, signed by an officer or member of the Receiving
                                         Party, confirming that the obligations referred to in clauses 6.1.1 and 6.1.2 have been
                                         met.

 

		6.2.	As
                                         an exception to its obligations under clause 6.1, a Receiving Party may retain one copy
                                         of the Confidential Information, in paper form, in the Receiving Party’s legal files
                                         for the purpose of ensuring compliance with the Receiving Party’s obligations under this
                                         Agreement.

 

		6.3.	Following
                                         the date of any termination of discussions relating to the Permitted Purpose, or any
                                         return of Confidential Information to the Disclosing Party (‘Final Date’), (a) the Receiving
                                         Party shall make no further use of the Confidential Information, and (b) the Receiving
                                         Party’s obligations under this Agreement shall otherwise continue in force, in respect
                                         of Confidential Information disclosed prior to the Final Date.

 

		7.	General

 

		7.1.	A
                                         Receiving Party acknowledges and agrees that all property, including intellectual property,
                                         in Confidential Information disclosed to it by the Disclosing Party shall remain with
                                         and be vested in the Disclosing Party.

 

		7.2.	The
                                         parties to this Agreement acknowledge and agree that:

 

		7.2.1.	the
                                         Disclosing Party does not waive or lose any legal professional privilege, litigation
                                         privilege, common interest privilege, without prejudice privilege, attorney- client privilege,
                                         attorney work product doctrine or other privilege or protection attaching to any information
                                         provided to a Receiving Party (whether provided by the Disclosing Party or its advisers);

 

		7.2.2.	they
                                         share a common purpose and interest in sharing Confidential Information for the Permitted
                                         Purpose; and

 

		7.2.3.	it
                                         is in their mutual interest that they share information, including Confidential Information
                                         and/or work product subject always to the protection of legal professional privilege,
                                         litigation privilege, common interest privilege, without prejudice privilege, attorney-client
                                         privilege, attorney work product doctrine or other privilege or protection attaching
                                         to any information that they share.

 

     

     

    

 

		7.3.	This
                                         Agreement does not include, expressly or by implication, any representations, warranties
                                         or other obligations:

 

		7.3.1.	to
                                         grant a Receiving Party any licence or rights other than as may be expressly stated in
                                         this Agreement;

 

		7.3.2.	to
                                         require the Disclosing Party to disclose, continue disclosing or update any Confidential
                                         Information;

 

		7.3.3.	to
                                         require the Disclosing Party to negotiate or continue negotiating with a Receiving Party
                                         with respect to any further agreement, and either party may withdraw from such negotiations
                                         at any time without liability; nor

 

		7.3.4.	as
                                         to the accuracy, efficacy, completeness, capabilities, safety or any other qualities
                                         whatsoever of any information or materials provided under this Agreement.

 

		7.4.	The
                                         validity, construction and performance of this Agreement shall be governed by the law
                                         of the State of New York and shall be subject to the exclusive jurisdiction of the courts
                                         of New York, to which the parties to this Agreement submit.

 

Agreed
by the parties through their authorized signatories:

 

	For and on behalf of	For and on behalf of
	THERIUM CAPITAL	WINSTON & STRAWN LLP
	MANAGEMENT LIMITED	 
	 	 
	Signed	Signed
	 	 
	Name	Name
	 	 
	Title	Title
	 	 
	For and on behalf of	 
	DOMINION MINERALS	 
	CORP.	 
	 	 
	Signed	 
	 	 
	Name	 
	 	 
	Title	 

 

     

     

    

 

SCHEDULE
4

 

FORM OF
NON-DISCLOSURE AGREEMENT

 

     

     

    

 

SCHEDULE
5

 

FORM OF
RELIANCE LETTERExhibit 10.1

 

 

 

 

TOWN SPORTS INTERNATIONAL HOLDINGS,
INC.

2018 MANAGEMENT STOCK PURCHASE PLAN,
AS AMENDED AND RESTATED ON MARCH 13, 2018

The purpose of this Town Sports International
Holdings, Inc. 2018 Management Stock Purchase Plan, adopted on January 3, 2018 and amended and restated on March 13, 2018, is to
provide Eligible Employees of Town Sports International Holdings, Inc. (“TSI”) and its Subsidiaries an opportunity
to voluntarily purchase Stock of TSI (CLUB) in a convenient manner. The Board of Directors of TSI believes that stock ownership
benefits both the participants and TSI’s shareholders. The Plan is not intended to qualify as an “Employee Stock Purchase
Plan,” as set forth in section 423 of the Code.

 

ARTICLE I

DEFINITIONS

Section 1.01 “Administrator
designated by the Committee” means the administrator designated by the Compensation Committee (“Committee”)
of the Board of Directors of TSI to administer the Plan, as provided in Section 6.04 below.

Section 1.02 “Board
of Directors” means the Board of Directors of TSI.

Section 1.03 “Cash
Compensation” means a Participant’s gross base wages, commissions, bonuses, premium pay, shift differential
pay, excluding any remuneration delivered as equity compensation, as determined by the Administrator designated by the Committee
in its sole and absolute discretion.

Section 1.04 “Code” means
the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

Section 1.05 “Designated Broker”
means a stock brokerage or other financial services firm designated by the Company to purchase the Stock on the open market, hold
the accounts (“Accounts”) for each Participant and/or otherwise assist in the administration of the Plan. Initially,
the Designated Broker shall be Computershare.

Section 1.06 “Effective
Date” shall mean the date on which the Plan is approved by the Committee.

Section 1.07 “Election
Date” means the first day of the month of each plan year or such other dates as the Administrator designated by
the Committee shall specify. The first Election Date for the Plan shall be February 1, 2018.

    	 

     

    

Section 1.08 “Eligible
Employee”

		(a)	Subject to Section 1.08(b) and Section 1.08(c) below, the term “Eligible Employee” includes any employee
with a corporate title of Director or above, of the Employer.

		(b)	Notwithstanding Section 1.08(a) above, the term “Eligible Employee” shall not include:

		(i)	an employee who is classified by the Administrator designated by the Committee, in its sole and absolute discretion, as a temporary
employee or leased employee,

		(ii)	with respect to any Purchase Period, an employee who terminates employment, dies or is determined to be disabled prior to the
applicable Purchase Date;

		(iii)	unless the Administrator designated by the Committee specifically designates otherwise as set forth in Section 1.22 below,
an employee who is employed by a non-U.S. subsidiary; or

		(c)	Notwithstanding anything herein to the contrary, if an employee’s status changes during the Purchase Period, but such
change in status is not otherwise discovered or brought to the attention of the Administrator designated by the Committee within
a reasonable period prior to any Purchase Date, the Administrator designated by the Committee, in its sole and absolute discretion,
may deem such individual to be an Eligible Employee despite the exclusions described in this Section 1.08.

Section 1.09 “Employer” means
TSI and each Subsidiary.

Section 1.10 “Market
Value” means (i) the consolidated closing bid price on the date immediately preceding the date on which the purchase
of the shares of Stock hereunder occurs if such purchase occurs prior to the close of trading or (ii) if such purchase occurs after
the close of trading, then the Market Value shall be the consolidated closing bid price for such day, each as reported on the NASDAQ
for the applicable date of reference.

Section 1.11 “Matching RSA”
means an award to be granted under the Town Sports International Holdings, Inc. 2006 Stock Incentive Plan, as amended (the “SIP”)
of that number of shares of Stock that equals the number of shares purchased pursuant to the MSPP and held until the end of the
applicable Voluntary Holding Period, as defined in Section 1.25. Shares held pursuant to a Matching RSA will be subject to the
terms and conditions of the SIP and the applicable award agreement that is required to be signed by the Participant and an authorized
officer of TSI (the current form of which is attached hereto as Annex A).

Section 1.12 “Maximum
Deduction Amount” means, unless otherwise adjusted by the Committee, expressed as a dollar amount or a percentage,

20% of Cash Compensation paid to, or on behalf of, a
Participant during a Purchase Period, and deducted on an after-tax basis.

    	2

     

    

Section 1.13 “Participant” means
each Eligible Employee who:

		(a)	elects to participate in the Plan in accordance with Article II; and

		(b)	has not otherwise voluntarily elected to cease his or her participation in the Plan and has not otherwise requested and received
all funds held on account of the Participant in the Plan.

Section 1.14 “Plan” or
 “MSPP” means the Town Sports International Holdings, Inc. 2018 Management Stock Purchase Plan, as set forth herein
and as hereafter amended.

Section 1.15 “Plan
Year” means each year during which the Plan is in effect.

Section 1.16 “Purchase
Agreement” means the instrument prescribed by the Administrator designated by the Committee pursuant to which an
Eligible Employee may enroll as a Participant and subscribe for the purchase of shares of Stock on the terms and conditions contained
in the Plan. In the event of a conflict between the Purchase Agreement and this Plan, the terms of the Plan shall control.

Section 1.17 “Purchase
Date” means the last Trading Date of each Purchase Period.

Section 1.18 “Purchase
Period” means each three (3) month period, or such other period specified by the Administrator designated by
the Committee, beginning on or after the Effective Date (but no longer than three months), during which the Participant’s
Stock purchase is funded through payroll deduction accumulations. The first Purchase Period shall begin on February 1, 2018 and
continue until the last Trading Date of the defined Purchase Period. Unless the Administrator designated by the Committee determines
otherwise, each subsequent Purchase Period, after the first Purchase Period, shall begin on the first day following the preceding
Purchase Date and continue until the last Trading Date of the three-month period of such Purchase Period.

Section 1.19 “Purchase
Price” means the purchase price for shares of Stock purchased under the Plan, determined as set forth in Section 3.01
below.

Section 1.21 “Stock” means
the common stock, par value of $0.001 per share, of TSI (NASDAQ:CLUB).

Section 1.22 “Subsidiary”

		(a)	The term “Subsidiary” means any present or future corporation that:

		(i)	constitutes a “subsidiary corporation” of TSI as that term is defined in section 424 of the Code and

		(ii)	is designated as a participating entity in the Plan by the Administrator designated by the Committee.

		(b)	Unless the Administrator designated by the Committee specifically designates otherwise, a non-U.S. subsidiary shall not be
considered a Subsidiary for purposes of the Plan, and employees of such a subsidiary shall not be Eligible Employees.

Section 1.23 “Trading
Date” means a day on which the NASDAQ is open for trading.

Section 1.24 “TSI” means
Town Sports International Holdings, Inc., or its subsidiaries.

    	3

     

    

Section 1.25 “Voluntary
Holding Period” means, subject to Section 5.01 below, the two (2) year period following a Purchase Date during
which a Participant may hold any shares of Stock purchased on his or her behalf pursuant to the Plan to be eligible to receive
a Matching Restricted Stock Award.

 

ARTICLE II

PARTICIPATION

Section 2.01 Initial Participation.
An Eligible Employee may elect to participate in the Plan by properly executing a Purchase Agreement and filing such Purchase Agreement
with the Administrator designated by the Committee, or its delegate, at such time in advance of the Election Date as the Administrator
designated by the Committee shall prescribe. An Eligible Employee who properly elects to participate in the Plan is referred to
herein as a “Participant”.

Section 2.02 Continuation
of Participation.

		(a)	The Purchase Agreement shall remain in effect until it is modified through discontinuance of participation under Section 2.03
below or otherwise changed under Section 2.05 below.

		(b)	A Participant who is on a leave of absence approved by an Employer may continue to participate in the Plan during the leave
of absence to the extent such Participant continues to receive Cash Compensation, which is sufficient to satisfy any other legally
required deductions or withholding obligations, as the Administrator designated by the Committee may determine in its sole and
absolute discretion.

Section 2.03 Discontinuance
of Participation.

		(a)	To the extent legally permissible, a Participant may voluntarily cease his or her participation in the Plan and stop payroll
deductions at any time by properly filing a notice of cessation of participation on such form within five (5) business days before
the Purchase Date. A Participant who ceases contributions during a Purchase Period may not make additional contributions to the
Plan during the Purchase Period and TSI shall return the funds held for the Participant under the Plan at such time in advance
of the Purchase Date as soon as administratively practicable.

		(b)	Notwithstanding subsection Section 2.03, if a Participant ceases to be an Eligible Employee, his or her participation
in the Plan shall automatically cease and no further purchase of Stock shall be made for the Participant. Any funds held for the
Participant under the Plan shall be distributed to the Participant as soon as administratively practicable.

Section 2.04 Readmission
to Participation.

		(a)	Any Eligible Employee who:

		(i)	was previously a Participant;

    	4

     

    

		(ii)	discontinued participation (whether by cessation of eligibility or otherwise); and

		(iii)	wishes to be reinstated as a Participant,

may again become a Participant
by executing and filing with the Administrator designated by the Committee a new Purchase Agreement.

		(b)	Reinstatement as a Participant shall be effective as of the next Election Date, provided the Participant is an Eligible Employee
and the Participant files a new Purchase Agreement with the Administrator designated by the Committee at such time in advance of
the Election Date as the Administrator designated by the Committee shall prescribe.

Section 2.05 Payroll Deductions
and Deposits.

		(a)	Each Participant shall authorize after-tax payroll deductions from his or her Cash Compensation for the purpose of funding
the purchase of Stock pursuant to his or her Purchase Agreement. In the Purchase Agreement, each Participant shall authorize the
withholding of a percentage of each payment of Cash Compensation during the Purchase Period, which shall be in one percent (1%) increments
or $100.00 (one-hundred dollar) increments and may not exceed the Maximum Deduction Amount.

		(b)	To the extent legally permissible, a Participant may change the deduction to any permissible level, as permitted by the Administrator
designated by the Committee in its sole and absolute discretion, as of any time prior to an Election Date. A change shall be made
by filing with the Administrator designated by the Committee a new Purchase Agreement, which shall become effective as soon as
administratively practicable following receipt by the Administrator designated by the Committee or its delegate.

Section 2.06 Participant
Rights and Privileges. Notwithstanding anything herein to the contrary, all Participants shall have the same rights and privileges
within the meaning of Section 423(b)(5) of the Code.

ARTICLE III

STOCK PURCHASE AND DISTRIBUTION

Section 3.01 Purchase Price
of Shares. Unless the Committee determines otherwise, the Purchase Price per share of the Stock to be sold to Participants
under the Plan shall be

100% of the Market Value of such share .

Section 3.02 Purchase of
Shares.

		(a)	As of the last trading day of each Purchase Period, the Designated Broker shall purchase on the
open market that number of whole shares of Stock as determined by dividing available contributions for the Purchase Period by the
Purchase Price.

    	5

     

    

		(b)	Subject to the provisions of Section 3.01 above and Section 3.04 below, there shall be purchased
for the Participant on each Purchase Date, at the Purchase Price for the Purchase Period, the largest number of whole shares of
Stock, as can be purchased with the amounts deducted from the Participant’s Compensation during the Purchase Period.

		(c)	Notwithstanding anything herein to the contrary, in the event that any amounts that are attributable
to a Participant’s deductions or contributions remain after the purchase of shares of Stock on a Purchase Date, such amounts
shall be returned to the Participant, in accordance with Section 3.04(c) below, as soon as administratively practicable.

Section 3.03 Reservation
of Shares. Shares of Stock shall not be reserved for issuance. All shares issued to Participants will be purchased on the open
market by the Designated Broker. By signing the Purchase Agreement, the Participants shall consent to the provision of certain
personal information to the Designated Broker.

Section 3.04 Limitation
on Shares to Be Purchased.

		(a)	The maximum number of shares of Stock that may be purchased for each Participant on a Purchase
Date is the number of whole shares of Stock that can be purchased by applying the full balance of the Participant’s deducted
funds, in accordance with subsection 3.04(d) below, to the purchase of shares of Stock at the Purchase Price.

		(b)	Notwithstanding Section 3.04(a) above, before the beginning of a Purchase Period, the Committee,
in its sole and absolute discretion, may increase or decrease the maximum share limit for the Purchase Period and subsequent Purchase
Periods. The adjusted maximum share limit shall continue in effect until again adjusted by the Administrator designated by the
Committee.

		(c)	Any amounts deducted from a Participant’s Compensation that cannot be applied to the purchase
of Stock on a Purchase Date by reason of the foregoing limitations described in Section 3.04(a) above and 3.04(d) below, shall
be returned to the Participant, as soon as administratively practicable.

		(d)	No Participant is allowed to contribute in excess of $200,000 in any calendar year towards the
purchase of Stock under this Plan.

Section 3.05 Payment for
Stock; No Trust Account. The Purchase Price for all shares of Stock purchased by a Participant under the Plan shall be paid
out of the Participant’s authorized payroll deductions. All funds received or held by TSI under the Plan are general assets
of TSI, shall be held free of any trust requirement or other restriction, shall not be held in any segregated account and may be
used for any corporate purpose.

Section 3.06 Share Ownership;
Issuance of Certificates.

		(a)	The shares of Stock purchased by a Participant on a Purchase Date shall, for all purposes, be deemed
to have been purchased at the close of business on the Purchase Date. Prior to that time, none of the rights or privileges of a
shareholder of TSI shall inure to the Participant with respect to such shares of Stock.

    	6

     

    

		(b)	Shares of Stock shall be delivered by:

		(i)	The Designated Broker, purchasing shares on the Purchase Date and depositing those shares into accounts maintained by such
firm in a separate brokerage account for each Participant.

		(c)	Each account described in Section 3.06(b) above shall be in the name of the Participant.

Section 3.07 Distribution
of Shares or Resale of Stock.

		(a)	A Participant may request a distribution of shares of Stock purchased for the Participant under
the Plan or order the sale of such shares by making a request to the Designated Broker. Any shares distributed prior to the completion
of the Voluntary Holding Period will not be eligible for a Matching RSA.

		(b)	If a Participant terminates his or her employment with the Employer or otherwise ceases to be an
Eligible Employee, the Participant will lose all eligibility for a potential Matching RSA.

		(c)	If a Participant sells or otherwise disposes of their shares, any brokerage commissions resulting
from a sale of Stock shall be deducted from amounts payable to the Participant.

ARTICLE IV

SPECIAL ADJUSTMENTS

Section 4.01 Shares Unavailable.
If, on any Purchase Date, the aggregate funds available for the purchase of Stock would otherwise permit the purchase of a number
of shares Stock in excess of the number then available for purchase under the Plan, the number of shares of Stock that would otherwise
be purchased by each Participant shall be proportionately reduced on the Purchase Date in order to eliminate such excess; and

 Section 4.02 Effect
of Certain Transactions. Subject to any required action by the shareholders, if TSI shall be the surviving corporation in any
merger or consolidation, any offering hereunder shall continue to pertain to and apply to the shares of stock of TSI. However,
in the event of a dissolution or liquidation of TSI, or a merger or consolidation in which TSI is not the surviving corporation,
the Plan and any offering hereunder shall terminate upon the effective date of such dissolution, liquidation, merger or consolidation,
unless the Board of Directors determines otherwise, and the balance of any amounts deducted from a Participant’s Cash Compensation
which have not by such time been applied to the purchase of Stock shall be returned to the Participant, as soon as reasonably practicable.

 

    	7

     

    

ARTICLE V

MATCHING RESTRICTED STOCK AWARD

Section 5.01 Matching RSA. Each
share purchased under the Plan and held through the end of the applicable Voluntary Holding Period is eligible for a Matching RSA
under the SIP. On a quarterly basis, any shares purchased through the Plan that have satisfied the completion of the Voluntary
Holding Period will be eligible for a Matching RSA. As soon as practicable after the Voluntary Holding Period has been met the
Company shall award to the Participant, pursuant to the terms of the SIP, restricted stock of a number of Shares of Stock equal
to the number that have achieved the Voluntary Holding Period. Matching RSAs shall constitute actual stock and shall have the rights
and privileges defined in the SIP and supporting Restricted Stock Agreement. Any Matching RSAs granted to a Participant as a result
of meeting the requirements under this MSPP shall be held in an Account maintained by the Designated Broker for such Participant.
TSI will make reasonable efforts to maintain a sufficient number of shares available for issuance under the SIP. In the event that
there are insufficient shares of Stock available for issuance under the SIP, the aggregate number of shares underlying Matching
RSAs shall be appropriately reduced among the Participants on a pro rata basis.

 

(a) Limit on Matching Restricted
Stock. The cumulative number of Matching RSAs that may be issued in any calendar year will be equal to the lesser of 50% of
the shares available for grant under the SIP or the number of MSPP shares that have met the Voluntary Holding Period for that calendar
year.

(b) Matching RSA Vesting.
Matching RSAs shall vest, and the restrictions thereon shall lapse, on the two-year anniversary of their Award Date. All other
terms and conditions will be as set forth in an applicable Award Agreement or the SIP.

c) Employment Required.
Notwithstanding anything herein to the contrary, a Participant must be employed by the Company or an affiliate of the Company on
the date on which the Matching RSA is granted in order to receive a Matching RSA pursuant to this MSPP.

 

ARTICLE VI

MISCELLANEOUS

Section 6.01 Non-Alienation.
Except as set forth below, the right to purchase shares of Stock under the Plan is personal to the Participant, is exercisable
only by the Participant during the Participant’s lifetime and may not be assigned or otherwise transferred by the Participant.

Section 6.02 Administrative
Costs. TSI shall pay the administrative expenses associated with the operation of the Plan (other than brokerage commissions
resulting from sales of Stock directed by Participants).

Section 6.03 No Interest.
No interest shall be payable with respect to amounts withheld or deposited under the Plan.

    	8

     

    

Section 6.04 Administrator
designated by the Committee. The Committee shall appoint the Administrator designated by the Committee, which shall have the
express discretionary authority and power to administer the Plan and to make, adopt, construe, and enforce rules and regulations
not inconsistent with the provisions of the Plan. The Administrator designated by the Committee shall adopt and prescribe the contents
of all forms required in connection with the administration of the Plan, including, but not limited to, the Purchase Agreement,
payroll deduction authorizations, requests for distribution of shares, and all other notices required hereunder. The Administrator
designated by the Committee shall have the fullest discretion permissible under law in the discharge of its duties. The Administrator
designated by the Committee’s interpretations and decisions with respect to the Plan shall be final and conclusive.

Section 6.05 Withholding
of Taxes; Notification of Transfer. All acquisitions and sales of Stock under the Plan shall be subject to applicable
federal (including FICA), state and local tax withholding requirements if the Internal Revenue Service or other taxing authority
requires such withholding. TSI may require that Participants pay to TSI (or make other arrangements satisfactory to TSI for the
payment of) the amount of any Federal, state or local taxes that TSI is required to withhold with respect to the purchase of Stock
or the sale of Stock acquired under the Plan, or instead deduct from the Participant’s wages or other compensation the amount
of any withholding taxes due with respect to the purchase of Stock or the sale of Stock acquired under the Plan.

Section 6.06 Amendment
of the Plan. The Committee may, at any time and from time to time, amend the Plan in any respect, except that any amendment
that is required to be approved by the shareholders shall be submitted to the shareholders of TSI for approval.

Section 6.07 Expiration
and Termination of the Plan. The Plan shall continue in effect for ten years from the Effective Date, unless terminated prior
to that date pursuant to the provisions of the Plan or pursuant to action by the Committee or Board of Directors of TSI. The Committee
or the Board of Directors shall have the right to terminate the Plan at any time without prior notice to any Participant and without
liability to any Participant. Upon the expiration or termination of the Plan, the balance, if any, then standing to the credit
of each Participant from amounts deducted from the Participant’s Cash Compensation which has not, by such time, been applied
to the purchase of Stock shall be refunded to the Participant.

Section 6.08 No Employment
Rights. Participation in the Plan shall not give an employee any right to continue in the employment of an Employer, and shall
not affect the right of the Employer to terminate the employee’s employment at any time, with or without cause.

Section 6.09 Repurchase
of Stock. TSI shall not be required to purchase or repurchase from any Participant any of the shares of Stock that the Participant
acquires under the Plan.

Section 6.10 Notice.
A Purchase Agreement and any notice that a Participant files pursuant to the Plan shall be on a physical or electronic form prescribed
by the Administrator designated by the Committee and shall be effective only when received by the Administrator designated by the
Committee or its delegate. Delivery of such forms may be completed by such processes as are approved by the Administrator designated
by the Committee, including online, by hand, by certified mail or sent postage prepaid, to the Administrator designated by the
Committee, or such other address as the Administrator designated by the Committee may designate. Delivery by any other mechanism
shall be deemed effective at the option and discretion of the Administrator designated by the Committee.

    	9

     

    

Section 6.11 Government
Regulation. TSI’s obligations under this Plan are all times subject to all approvals of any governmental authority.

Section 6.12 Internal Revenue
Code and ERISA Considerations. The Plan is neither intended to constitute an “employee stock purchase plan” within
the meaning of section 423 of the Code nor intended to be construed as constituting an “employee benefit plan,” within
the meaning of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.

Section 6.13 Headings,
Captions, Gender. The headings and captions herein are for convenience of reference only and shall not be considered as
part of the text. The masculine shall include the feminine, and vice versa. All pronouns and any variations thereof shall be deemed
to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require,
the singular may read as the plural and the plural as the singular.

Section 6.14 Severability
of Provisions, Prevailing Law. The provisions of the Plan shall be deemed severable. In the event any such provision is determined
to be unlawful or unenforceable by a court of competent jurisdiction or by reason of a change in an applicable statute, the Plan
shall continue to exist as though such provision had never been included therein (or, in the case of a change in an applicable
statute, had been deleted as of the date of such change). The Plan shall be governed by the laws of the State of New York to the
extent such laws are not in conflict with, or superseded by, federal law.

    	10

     

    

TOWN SPORTS INTERNATIONAL HOLDINGS,
INC. 

2018 MANAGEMENT STOCK PURCHASE PLAN

 

PURCHASE AGREEMENT AND WITHDRAWAL
FORM

 

Purpose of this Form:

 

____ Original Enrollment

____ Change in Payroll Deduction Rate
for subsequent Purchase Period

____ Withdraw from Plan

____ Change of Beneficiary(ies)

 

Date of this Form: __________, _____

 

1.I, _________________________, hereby
elect to participate in the TOWN SPORTS INTERNATIONAL HOLDINGS, INC. 2018 MANAGEMENT STOCK PURCHASE PLAN (the “MSPP”),
and subscribe to purchase Common Shares of the Company in accordance with this Purchase Agreement and the MSPP. I understand that
once a purchase period has commenced, I may no longer increase or decrease (except as set forth in paragraph 2. below) the percentage,
or, as elected, dollar amount, of my contributions that I have elected to contribute to the Plan for such purchase period. 

OR 

2.I,
_________________________, hereby elect to stop my participation in the MSPP. I understand that my withdrawal from the Plan during
a purchase period, will stop all future contributions as soon as practicable. Amounts already contributed will be returned to me
as soon as administratively practicable. I acknowledge that this notice of withdrawal must be delivered no later than five business
days prior to the end of the Purchase Period in order to be effective for the current Purchase Period, and my participation will
not continue to the next Purchase Period. To resume Plan participation after this suspension, I understand that I must provide
written notice to the Administrator by submitting a new enrollment form.

    	11

     

    

 

3.I hereby acknowledge receiving a
copy of the MSPP, and understand that my participation in the MSPP is entirely voluntary, and is in all respects subject to the
terms and conditions of the MSPP. 

4.I
hereby authorize after-tax payroll deductions from each paycheck in the amount of

a) _____% in whole percentages
not to exceed 20% of my “Cash Compensation” on each payday during each purchase period beginning after the date I have
designated above.

OR

b) $______ (in $100 increments)
not to exceed 20% of my “Cash Compensation” on each payday during each purchase period beginning after the date I
have designated above.

 

I understand that Cash Compensation
includes base wages, commissions, bonuses, premium pay, shift differential pay, excluding any remuneration delivered as equity
compensation, as determined by the Administrator designated by the Committee in its sole and absolute discretion. 

 

5.I understand that my payroll deductions
shall be accumulated for the purchase of common shares of Town Sports Holding International, Inc. (CLUB) at the applicable purchase
price determined in accordance with the MSPP. I understand that if I do not withdraw from a purchase period and I remain an Eligible
Employee, any accumulated payroll deductions will be used to automatically purchase such shares at the end of the purchase period.
Any accumulated contributions that remain after the purchase of Shares will be refunded to me if the amount accumulated is greater
than the purchase price of one Share, or will be carried forward to the next purchase period if the amount accumulated is less
than the purchase price of one Share. 

6.Shares purchased for me under the
MSPP will be held by the MSPP’s Designated Broker in my name, until and unless I request issuance of the shares in accordance
with the Designated Broker’s standard procedures. I hereby agree that TSI may provide the Designated Broker with my personal
information, including without limitation, my social security number, in order to open and maintain the account. 

7. I
understand that if I voluntarily hold of any shares received by me pursuant to the MSPP for 2 years after the Purchase Date, I
will be eligible for a Matching RSA that will be issued by the Company from the SIP.

    	12

     

    

 I UNDERSTAND THAT NOTHING IN
THIS AGREEMENT CONSTITUTES TAX ADVICE, AND I ACKNOWLEDGE THAT THE COMPANY HAS ENCOURAGED ME TO CONSULT MY OWN TAX ADVISOR WITH
REGARD TO THE TAX CONSEQUENCES OF PARTICIPATING IN THE MSPP. 

8. I hereby agree to be bound by the
terms of the MSPP. The effectiveness of this Purchase Agreement is dependent upon my eligibility to participate in the MSPP. 

9. In the event of my death, I hereby
designate the following as my beneficiary(ies) to receive all payments and Shares due me under the MSPP: 

	BENEFICIARY’S NAME:	 	
   

	 	 	(First) (Middle) (Last)
	 	 	 
	
   

	 	
   

	Relationship to Me	 	 
	 	 	
   

	 	 	(Address)

 

I UNDERSTAND THAT THIS PURCHASE AGREEMENT
SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE PURCHASE PERIODS UNLESS TERMINATED BY ME AND CONFIRM THAT THE FOLLOWING INFORMATION
IS TRUE AND CORRECT.

	My Social Security Number:	 	
   

	My Permanent Address:	 	
   

	 	 	
   

	 	 	
   

	 	 	 
	Dated: ________________	 	
   

	 	 	Signature of Employee
	 	 	 
	Dated: ________________	 	
   

	 	 	Spouse’s Signature
	 	 	(If beneficiary other than spouse)

 

    	13

     

    

APPENDIX A

 

FORM OF RESTRICTED STOCK AGREEMENT

PURSUANT TO THE

TOWN SPORTS INTERNATIONAL HOLDINGS, INC.

2006 STOCK INCENTIVE PLAN

(as amended and restated effective as of April 2, 2015)

 

THIS AGREEMENT
(this “Agreement”) made as of __________________, 20__, by and between Town Sports International Holdings, Inc.
(the “Company”) and ______________________ (the “Participant”).

W I T N E S S E T H:

 

WHEREAS, the Company
has adopted the Town Sports International Holdings, Inc. 2006 Stock Incentive Plan, as amended and restated effective as of April
2, 2015 (the “Plan”), which is administered by an Equity Grant Subcommittee, which was designated by the Compensation
Committee that were appointed by the Company’s Board of Directors (the “Subcommittee”); and

WHEREAS, pursuant
to Section 8.1 of the Plan, the Subcommittee may grant to Eligible Employees shares of its common stock, par value $0.001 per share
(“Common Stock”), in the amount set forth below; and

WHEREAS, the Shares
(as defined below) are to be subject to certain restrictions;

NOW, THEREFORE,
for and in consideration of the mutual promises herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1.
Grant of Shares. Subject to the restrictions, terms and
conditions of this Agreement, the Company awarded the Participant ______________ (______________) shares of validly issued Common
Stock (the “Shares”) on __________________, 20___ (the “Grant Date”). Pursuant to Section
2 hereof, the Shares are subject to certain restrictions, which restrictions relate to the passage of time as an employee of
the Company or its Affiliates. While such restrictions are in effect, the Shares subject to such restrictions shall be referred
to herein as “Restricted Stock.”

2.
Restrictions on Transfer. The Participant shall not sell,
transfer, pledge, hypothecate, assign or otherwise dispose of the Shares, except as set forth in the Plan or this Agreement. Any
attempted sale, transfer, pledge, hypothecation, assignment or other disposition of the Shares in violation of the Plan or this
Agreement shall be void and of no effect and the Company shall have the right to disregard the same on its books and records and
to issue “stop transfer” instructions to its transfer agent.

    	14

     

    

3.
Restricted Stock.

(a)
Retention of Certificates. Promptly after the date of this
Agreement, the Company shall issue stock certificates representing the Restricted Stock unless, to the extent permitted under applicable
law, it elects to issue the Shares in the form of uncertificated shares and recognize such ownership through an uncertificated
book entry account maintained by the Company (or its designee) on behalf of the Participant or through another similar method.
The stock certificates shall be registered in the Participant’s name and shall bear any legend required under the Plan or
Section 3(h) hereof. Unless held in uncertificated book entry form, such stock certificates shall be held in custody by
the Company (or its designated agent) until the restrictions thereon shall have lapsed. Upon the Company’s request, the Participant
shall deliver to the Company a duly signed stock power, endorsed in blank, relating to the Restricted Stock. If the Participant
receives a stock dividend on the Restricted Stock or the shares of Restricted Stock are split or the Participant receives any other
shares, securities, moneys or property representing a dividend on the Restricted Stock (other than cash dividends on or after the
date of this Agreement) or representing a distribution or return of capital upon or in respect of the Restricted Stock or any part
thereof, or resulting from a split-up, reclassification or other like changes of the Restricted Stock, or otherwise received in
exchange therefor, or any warrants, rights or options issued to the Participant in respect of the Restricted Stock (collectively
 “RS Property”), the Participant will also immediately deposit with and deliver to the Company any of such RS
Property, including, without limitation, any certificates representing shares duly endorsed in blank or accompanied by stock powers
duly executed in blank, and such RS Property shall be subject to the same restrictions, including, without limitation, the restrictions
in this Section 3(a) hereof, as the Restricted Stock with regard to which they are issued and shall herein be encompassed
within the term “Restricted Stock.”

(b)
Rights with Regard to Restricted Stock. Subject to Section
7, upon becoming the holder of record of the Restricted Stock, the Participant will have the right to vote the Restricted Stock,
and to receive, subject to the Committee’s determination (in its sole discretion), any dividends payable to holders of record
of Restricted Stock on and after the transfer of the Restricted Stock (although such dividends shall be treated, to the extent
required by applicable law, as additional compensation for tax purposes if paid on Restricted Stock and stock dividends will be
subject to the restrictions provided in Section 3(a)), and to exercise all other rights, powers and privileges of a holder
of Common Stock with respect to the Restricted Stock set forth in the Plan, except that: (i) the Participant shall not be entitled
to delivery of the stock certificate or certificates representing the Restricted Stock until the Restriction Period shall have
expired; (ii) the Company (or its designated agent) shall retain custody of the stock certificate or certificates representing
the Restricted Stock and the other RS Property during the Restriction Period; (iii) no RS Property shall bear interest or be segregated
in separate accounts during the Restriction Period; and (iv) the Participant shall not sell, assign, transfer, pledge, exchange,
encumber or dispose of the Restricted Stock during the Restriction Period.

    	15

     

    

(c)
Vesting. The Restricted Stock shall become vested and cease
to be Restricted Stock (but shall remain subject to Section 5) pursuant to the following schedule; provided that the Participant
has not had a Termination any time prior to the applicable vesting date:

	Vesting Date	Number of Shares
	Second Anniversary of Grant Date	100%

 

There shall be
no proportionate or partial vesting in the periods prior to each vesting date and all vesting shall occur only on the appropriate
vesting date; provided, however, that no Termination has occurred prior to such date.

The Restricted Stock will
become fully vested on a Change in Control.

 

The provisions of the
second paragraph of Section 8.1 of the Plan regarding Detrimental Activity shall apply to the Restricted Stock.

 

When any shares of Restricted
Stock become vested, the Company shall promptly issue and deliver, unless the Company is using book entry, to the Participant a
new stock certificate registered in the name of the Participant for such shares of Restricted Stock without the legend set forth
in Section 3(h) and deliver to the Participant any related other RS Property, subject to applicable withholding.

 

(d)
Forfeiture. The Participant shall forfeit to the Company,
without compensation, other than repayment of any par value paid by the Participant for the Shares (if any), any and all Restricted
Stock (but no vested Shares) and RS Property upon the Participant’s Termination of Employment for any reason.

(e)
Withholding. Participant shall pay, or make arrangements
to pay, in a manner satisfactory to the Company, an amount equal to the amount of all applicable federal, state and local or foreign
taxes that the Company is required to withhold at any time. In the absence of such arrangements, the Company or one of its Affiliates
shall have the right to withhold such taxes from the Participant’s normal pay or other amounts payable to the Participant,
including, but not limited to, the right to withhold any of the Shares otherwise deliverable to the Participant hereunder. In addition,
any statutorily required withholding obligation may be satisfied, in whole or in part, at the Participant’s election, in
the form and manner prescribed by the Committee, by delivery of shares of Common Stock (including, without limitation, the Shares
issued under this Agreement).

    	16

     

    

(f)
Section 83(b). If the Participant properly elects (as required
by Section 83(b) of the Code) within 30 days after the issuance of the Restricted Stock to include in gross income for federal
income tax purposes in the year of issuance the fair market value of such shares of Restricted Stock, the Participant shall pay
to the Company or make arrangements satisfactory to the Company to pay to the Company upon such election, any federal, state or
local taxes required to be withheld with respect to the Restricted Stock. If the Participant shall fail to make such payment, the
Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant
any federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Stock, as well as the
rights set forth in Section 3(e). The Participant acknowledges that it is the Participant’s sole responsibility, and
not the Company’s, to file timely and properly the election under Section 83(b) of the Code and any corresponding provisions
of state tax laws if the Participant elects to utilize such election.

(g)
Delivery Delay. The delivery of any certificate representing
the Restricted Stock or other RS Property may be postponed by the Company for such period as may be required for it to comply with
any applicable federal or state securities law, or any national securities exchange listing requirements and the Company is not
obligated to issue or deliver any securities if, in the opinion of counsel for the Company, the issuance of the Shares shall constitute
a violation by the Participant or the Company of any provisions of any applicable federal or state law or of any regulations of
any governmental authority or any national securities exchange.

(h)
Legend. All certificates representing the Restricted Stock
shall have endorsed thereon the following legends:

“The
anticipation, alienation, attachment, sale, transfer, assignment, pledge, encumbrance or charge of the shares of stock represented
hereby are subject to the terms and conditions (including forfeiture) of the Town Sports International Holdings, Inc. (the “Company”)
2006 Stock Incentive Plan (as the same may be amended or amended and restated from time to time, the “Plan”),
and an agreement entered into between the registered owner and the Company evidencing the award under the Plan. Copies of such
Plan and agreement are on file at the principal office of the Company.”

(i)
Any legend required to be placed thereon by applicable blue sky
laws of any state.

Notwithstanding the foregoing,
in no event shall the Company be obligated to deliver to the Participant a certificate representing the Restricted Stock prior
to the vesting dates set forth above.

 

4.
Securities Representations. The Shares are being issued
to the Participant and this Agreement is being made by the Company in reliance upon the following express representations and warranties
of the Participant.

    	17

     

    

The Participant acknowledges,
represents and warrants that:

 

(a)
The Participant has been advised that the Participant may be an
 “affiliate” within the meaning of Rule 144 under the Securities Act of 1933, as amended (the “Act”)
and in this connection the Company is relying in part on the Participant’s representations set forth in this Section 4.

(b)
If the Participant is deemed an affiliate within the meaning of
Rule 144 of the Act, the Shares must be held indefinitely unless an exemption from any applicable resale restrictions is available
or the Company files an additional registration statement (or a “re-offer prospectus”) with regard to the Shares and
the Company is under no obligation to register the Shares (or to file a “re-offer prospectus”).

(c)
If the Participant is deemed an affiliate within the meaning of
Rule 144 of the Act, the Participant understands that the exemption from registration under Rule 144 will not be available unless
(i) a public trading market then exists for the Common Stock of the Company, (ii) adequate information concerning the Company is
then available to the public, and (iii) other terms and conditions of Rule 144 or any exemption therefrom are complied with; and
that any sale of the Shares may be made only in limited amounts in accordance with such terms and conditions.

5.
No Obligation to Continue Employment. This Agreement is
not an agreement of employment. This Agreement does not guarantee that the Company or its Affiliates will employ or retain, or
continue to employ or retain, the Participant during the entire, or any portion of the, term of this Agreement, including, but
not limited to, any period during which the Restricted Stock is outstanding, nor does it modify in any respect the Company’s
or its Affiliate’s right to terminate or modify the Participant’s employment or compensation.

6.
Power of Attorney. The Company, its successors and assigns
are hereby appointed the attorneys-in-fact, with full power of substitution, of the Participant for the purpose of carrying out
the provisions of this Agreement and taking any action and executing any instruments which such attorneys-in-fact may deem necessary
or advisable to accomplish the purposes of this Agreement, which appointment as attorneys-in-fact is irrevocable and coupled with
an interest. The Company, as attorney-in-fact for the Participant, may in the name and stead of the Participant, make and execute
all conveyances, assignments and transfers of the Shares and property provided for in this Agreement, and the Participant hereby
ratifies and confirms all that the Company, as said attorney-in-fact, shall do by virtue hereof. Nevertheless, the Participant
shall, if so requested by the Company, execute and deliver to the Company all such instruments as may, in the judgment of the Company,
be advisable for such purpose.

7.
Rights as a Stockholder. The Participant shall have no
rights as a stockholder with respect to any Restricted Stock unless and until the Participant has become the holder of record of
the Shares, whether the Shares are represented by a certificate or through book entry or another similar method, and no adjustments
shall be made for dividends in cash or other property, distributions or other rights in respect of any Shares, except as otherwise
specifically provided for in the Plan or this Agreement.

    	18

     

    

8.
Provisions of Plan Control. This Agreement is subject to
all the terms, conditions and provisions of the Plan, including, without limitation, the amendment provisions thereof, and to such
rules, regulations and interpretations relating to the Plan as may be adopted by the Committee and as may be in effect from time
to time. The Plan is incorporated herein by reference. Capitalized terms in this Agreement that are not otherwise defined shall
have the respective meanings set forth in the Plan. If and to the extent that this Agreement conflicts or is inconsistent with
the terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.
This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes any prior
agreements between the Company and the Participant with respect to the subject matter hereof. 

9.
Amendment. To the extent applicable, the Board or the Committee
may at any time and from time to time amend, in whole or in part, any or all of the provisions of this Agreement to comply with
Section 409A of the Code and the regulations thereunder or any other applicable law and may also amend, suspend or terminate this
Agreement subject to the terms of the Plan. The award of Restricted Stock pursuant to this Agreement is not intended to be considered
 “deferred compensation” for the purposes of Section 409A of the Code.

10.
Notices. Any notice or communication given hereunder (each,
a “Notice”) shall be in writing and shall be sent by personal delivery, by courier or by regular United States
mail, first class and prepaid, to the appropriate party at the address set forth below: 

If to the Company,
to:

Town Sports International
Holdings, Inc.

399 Executive Boulevard

Elmsford, New
York 10523

Attention: General Counsel

 

If to the Participant,
to the address of the Participant on file with the Company;

or such other address
or to the attention of such other person as a party shall have specified by prior Notice to the other party. Each Notice shall
only be given and effective upon actual receipt (or refusal of receipt).

11.
Acceptance. As required by Section 8.2(b) of the Plan,
the Participant shall forfeit the Restricted Stock if the Participant does not execute this Agreement within a period of 60 days
from the date the Participant receives this Agreement (or such other period as the Committee shall provide).

    	19

     

    

12.
Non-Compete; Nonsolicitation. 

(a)
(i) As an inducement to the Company to enter into this Agreement
and to grant the Shares, the Participant agrees that (A) during the Participant’s period of employment with the Company or
any of its Affiliates, and (B) if the Participant resigns or the Participant’s employment is terminated by the Company or
any of its Affiliates for any reason, during the period which the Company or any of its Affiliates is paying the Participant severance
compensation (which shall be at a rate and an amount equal to the Participant’s base salary received by the Participant immediately
prior to the Participant’s Termination of Employment), such period not to exceed one year (the “Noncompete Period”),
the Participant shall not, directly or indirectly, own, manage, control, participate in, consult with, render services for, or
in any manner engage in, any business competing directly or indirectly with the business as conducted by the Company or any of
its Affiliates during the Participant’s period of employment with the Company or any of its Affiliates or at the time of
the Participant’s Termination of Employment or with any other business that is the logical extension of the Company’s
and its Affiliates’ business during the Participant’s period of employment with the Company or any of its Affiliates
or at the time of the Participant’s Termination of Employment, within any metropolitan area in which the Company or any of
its Affiliates engages or has definitive plans to engage in such business; provided, however, that (1) the Participant
shall not be precluded from purchasing or holding publicly traded securities of any entity so long as the Participant shall hold
less than 2% of the outstanding units of any such class of securities and has no active participation in the business of such entity,
and (2) the Company shall have notified the Participant of its agreement to provide (or cause to be provided) such severance compensation
(x) in the event of resignation, within five days following the date of the Participant’s Termination of Employment, or (y)
in the event of termination, on or before the date of the Participant’s Termination of Employment. Notwithstanding anything
contained herein to the contrary, the Participant’s agreement set forth in clause (B) above shall not apply if the date of
the Participant’s Termination of Employment occurs after the fifth anniversary of the Grant Date.

(ii)During
the Noncompete Period, the Participant shall not directly or indirectly (A) induce or attempt to induce any employee of the Company
or any of its Affiliates to leave the employ of the Company or any of its Affiliates, or in any way interfere with the relationship
between the Company or any of its Affiliates and any employee thereof, (B) hire any person who was an employee of the Company or
any of its Affiliates at any time during the Participant’s employment period except for such employees who have been terminated
for at least six months, or (C) induce or attempt to induce any customer, supplier, licensee, franchisor or other business relation
of the Company or any of its Affiliates to cease doing business with such member, or in any way interfere with the relationship
between any such customer, supplier, licensee, franchisor or business relation, on the one hand, and the Company or any of its
Affiliates, on the other hand.

(iii)The
provisions of this Section 12(a) shall survive any expiration or termination of this Agreement, any Termination of Employment
of the Participant, or any forfeiture of the shares of Restricted Stock.

(iv)If
it is determined by a court of competent jurisdiction that any of the provisions of this Section 12(a) is excessive in duration
or scope or otherwise is unenforceable, then such provision may be modified or supplemented by the court to render it enforceable
to the maximum extent permitted by law.

    	20

     

    

(b)
The Participant acknowledges that the Participant may have access
to certain confidential, non-public and proprietary information (the “Confidential Information”), concerning
the Company and its Affiliates and their respective officers, directors, stockholders, employees, agents and representatives and
agrees that: (i) unless pursuant to prior written consent by the Company, the Participant shall not disclose any Confidential Information
to any Person for any purpose whatsoever unless compelled by court order or subpoena; (ii) the Participant shall treat as confidential
all Confidential Information and shall take reasonable precautions to prevent unauthorized access to the Confidential Information;
(iii) the Participant shall not use the Confidential Information in any way detrimental to the Company or any of its Affiliates
and shall use the Confidential Information for the exclusive purpose of effecting the Participant’s duties of employment
with the Company or any of its Affiliates; and (iv) the Participant agrees that the Confidential Information obtained during the
Participant’s employment with the Company shall remain the exclusive property of the Company and its Affiliates, and the
Participant shall promptly return to the Company all material which incorporates, or is derived from, all such Confidential Information
upon termination of the Participant’s employment with the Company or any of its Affiliates. It is hereby agreed that Confidential
Information does not include information generally available and known to the public other than through the disclosure thereof
by or through the Participant or obtained from a source not bound by a confidentiality agreement with the Company or any of its
Affiliates.

(c)
The Participant hereby agrees that all inventions, innovations
or improvements in the method of conducting the business (including, without limitation, improvements, ideas and discoveries, whether
patentable or not) of the Company or any of its Affiliates, whether prior to the date hereof or thereafter, in each case conceived
or made by the Participant in the course of the Participant’s employment with the Company or any of its Affiliates, belong
to the Company and its Affiliates, except for such inventions, innovations and improvements that have become part of the public
domain other than through the disclosure thereof by or through the Participant and are not entitled to statutory or common law
protection. The Participant will promptly disclose such inventions, innovation or improvements to the Company and perform all actions
reasonably requested by the Company to establish and confirm such ownership by the Company or any of its Affiliates.

13.
Waiver of Jury Trial. Each
of the parties hereto waives any right it may have to trial by jury in respect of any litigation based on, arising out of, under
or in connection with this agreement or any course of conduct, course of dealing, verbal or written statement or action of any
party hereto.

14.
Miscellaneous.

(a)
This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective heirs, legal representatives, successors and assigns.

    	21

     

    

(b)
All questions concerning the construction, validity and interpretation
of this Agreement will be governed by, and construed in accordance with, the domestic laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of New York.

(c)
In the event of any dispute, controversy or claim between the
Company or any Affiliate and the Participant in any way concerning, arising out of or relating to the Plan or this Agreement (a
 “Dispute”), including without limitation any Dispute concerning, arising out of or relating to the interpretation,
application or enforcement of the Plan or this Agreement, the parties hereby (i) agree and consent to the personal jurisdiction
of the courts of the State of New York located in New York County and/or the Federal courts of the United States of America located
in the Southern District of New York (collectively, the “Agreed Venue”) for resolution of any such Dispute,
(ii) agree that those courts in the Agreed Venue, and only those courts, shall have exclusive jurisdiction to determine any Dispute,
including, without limitation, any appeal, and (iii) agree that any cause of action arising out of this Agreement shall be deemed
to have arisen from a transaction of business in the State of New York. The parties also hereby irrevocably (A) submit to the jurisdiction
of any competent court in the Agreed Venue (and of the appropriate appellate courts therefrom), (B) to the fullest extent permitted
by law, waive any and all defenses the parties may have on the grounds of lack of jurisdiction of any such court and any other
objection that such parties may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any
such court (including without limitation any defense that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum), and (C) consent to service of process in any such suit, action or proceeding, anywhere in the
world, whether within or without the jurisdiction of any such court, in any manner provided by applicable law. Without limiting
the foregoing, each party agrees that service of process on such party pursuant to a notice as provided in Section 10 shall
be deemed effective service of process on such party. Any action for enforcement or recognition of any judgment obtained in connection
with a Dispute may enforced in any competent court in the Agreed Venue or in any other court of competent jurisdiction.

(d)
This Agreement may be executed in one or more counterparts, all
of which taken together shall constitute one contract.

(e)
The failure of any party hereto at any time to require performance
by another party of any provision of this Agreement shall not affect the right of such party to require performance of that provision,
and any waiver by any party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing
or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

    	22

     

    

IN WITNESS WHEREOF,
the parties have executed this Agreement on the date and year first above written.

	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.
	 
	 
	 
	 
	By:________________________________
	Name:  
	Title: 

 

 

PARTICIPANT

 

_____________________

______________________

    	23

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