Document:

Exhibit 10.9

 

INDEMNIFICATION ESCROW AGREEMENT

 

This INDEMNIFICATION ESCROW
AGREEMENT (this “Agreement”) dated as of _______, 2017 is entered into by and among Farmmi, Inc. (the “Company”),
ViewTrade Securities, Inc. (the “Underwriter”), and Pearlman Schneider LLP (the “Escrow Agent”).

 

WITNESSETH:

 

WHEREAS, the Company is
completing a public offering of up to a range of 1,250,000 to 1,500,000 common shares of the Company, par value $0.001 (the “Shares”)
and an additional amount equal to fifteen (15%) percent of the Shares which the Underwriters have the option to purchase from the
Company to cover over-allotments, if any, at an offering price of $4.00 to $6.00 per share (the “Offering”);

 

WHEREAS, the Company and
Underwriter expect that the Offering will close on or before the close of business on _________, 2017 (collectively, the “Closing
Date”);

 

WHEREAS, upon the closing
of the Offering the Company has agreed to deposit an aggregate amount of Six Hundred Thousand Dollars ($600,000) (the “Escrowed
Funds”) from the proceeds of the Offering to be received by the Company with the Escrow Agent in a non-interest bearing
escrow account, to be held, invested and disbursed by the Escrow Agent pursuant to the terms and conditions of this Agreement;

 

WHEREAS, the Escrow Agent
is willing to hold the Escrowed Funds and Investment Gain Funds (as such term is defined below) in escrow pursuant to and subject
to the terms and conditions of this Agreement; and

 

NOW, THEREFORE, in consideration of the mutual
promises herein contained and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

		1.	Appointment of Escrow Agent. The Company and the
Underwriter hereby appoint the Escrow Agent as escrow agent in accordance with the terms and subject to the conditions set forth
herein and the Escrow Agent hereby accepts such appointment.

 

		2.	Delivery of the Escrowed Funds. Upon the closing
of the Offering the Escrowed Funds shall be delivered on behalf of the Company to the Escrow Agent, as escrow agent into a non-interest
bearing escrow account maintained by the Escrow Agent (the “Escrow Account”) by wire transfer in accordance
with the wire transfer instructions set forth on Schedule A hereto. In no event shall the aggregate amount of Escrowed
Funds delivered to the Escrow Account be less than Six Hundred Thousand Dollars ($600,000).

 

		3.	Escrow Agent to Hold and Disburse the Escrowed Funds
and Investment Gain Funds. The Escrow Agent will retain the Escrowed Funds and Investment Gain Funds in an escrow account
and disburse the Escrowed Funds and Investment Gain Funds pursuant to the terms of this Agreement, as follows:

 

a.           The
Escrowed Funds shall be held by the Escrow Agent for the purpose of satisfying the initial $600,000 of the indemnification obligations
of the Company, with respect to the Escrowed Funds, pursuant to Sections 7(l) and 8 of the Underwriting Agreement dated ___________________,
2017 by and between the Company and the Underwriter, for a period of thirty (30) months from the closing of the Offering. Disbursement
of such Escrowed Funds and Investment Gain Funds shall be determined by an independent third-party trustee, to be chosen by mutual
consent of the Company and Underwriter.

 

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b.           Notwithstanding
the last sentence of the prior paragraph, in the event that any litigation or proceeding arising out of any matter in connection
with the Offering in connection to the Underwriter acting in its capacity as underwriter within thirty (30) months following the
Closing Date and in which the Company, the Underwriter, the Escrow Agent or the Escrowed Funds becomes the subject of such litigation
or proceeding, the Underwriter and the Company hereby authorize the Escrow Agent, at the Underwriter’s sole instruction upon
Underwriter’s written notice to the Escrow Agent if not otherwise so required, to release and deposit the Escrowed Funds
with the clerk of the court in which the litigation is pending for the purpose of indemnifying and defending the Underwriter in
such litigation and proceeding, and thereupon the Escrow Agent shall be relieved and discharged of any further responsibility with
regard thereto to the extent determined by any such court. The Company and the Underwriter further hereby authorize the Escrow
Agent, if it receives conflicting claims to any of the Escrowed Funds, is threatened with litigation in its capacity as escrow
agent under this Agreement, or if the Escrow Agent determines it is necessary to do so for any other reason relating to this Agreement
or the Offering, to interplead all interested parties in any court of competent jurisdiction and to deposit the Escrowed Funds
with the clerk of that court and thereupon the Escrow Agent shall be relieved and discharged of any further responsibility hereunder
to the parties from which they were received to the extent determined by such court.

 

c.           Upon
instruction of the Company, the Escrow Agent may invest the Escrowed Funds during the term of the Agreement as follows:

 

i.            The
Escrowed Funds may be invested in issuers listed on U.S. national securities exchanges; provided that (1) no investments may be
made in the Company’s securities; (2) no more than 20% of the Escrowed Funds may be invested in one issuer; (3)   no
more than 40% of the Escrowed Funds may be invested in issuers that have: (A) a market capitalization of less than $1.0 billion;
(B) have been public for less than two years; and (C) have less than $1.0 million in average daily volume for last 30 days.

 

ii.           In
the event the aggregate value of the Escrowed Funds plus the Investment Gain Funds in the Escrow Account decreases to less than
$486,000, 81% of the original amount ($600,000) of Escrowed Funds (the “Minimum Equity”) for more than 20 consecutive
trading days, the Company shall promptly (but no later than 10 calendar days following the 20 consecutive trading days following
the decrease of less than 81%) add funds to the Escrow Account to maintain the Minimum Equity.

 

iii.          Upon
the account reaching Minimum Equity, the Company may not open any additional positions and may only close investment positions
until the account is above the Minimum Equity.

 

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iv.         Upon
request from the Company and after the Closing, the Escrow Agent shall establish a brokerage account in the Company’s name
with a FINRA registered broker-dealer chosen by the Company and reasonably satisfactory to the Underwriter (the “Escrow Broker”).
All proposed transactions will be submitted by the Company in writing to the Underwriter with a confirmation by the Company that
such transaction(s) meet the criteria set forth in Sections 3(c)(i)-(iii). The Escrow Agent shall instruct the Escrow Broker to
submit confirmations of all transactions to the Escrow Agent, the Company and the Underwriter.

 

v.           All
income derived from the investments pursuant to this Section 3(c) in excess of the Escrowed Funds (“Investment Gain Funds”)
may, at the request of the Company, be disbursed to the Company provided in the manner of Section 3(a) of this Agreement, provided
that to the extent Investment Gain Funds exceed $50,000 in excess of the Minimum Equity, the Company shall be permitted to request
a disbursement of such excess funds in an amount of no less than $50,000 on March 31, June 30, September 30 or December 31 of any
year during the term of this Agreement prior to the thirty month period set forth in Section 3(a).

 

		4.	Exculpation and Indemnification of Escrow Agent.

 

a.           The
Escrow Agent shall have no duties or responsibilities other than those expressly set forth herein. The Escrow Agent shall have
no duty to enforce any obligation of any person to make any payment or delivery, or to direct or cause any payment or delivery
to be made other than as set forth herein, or to enforce any obligation of any person to perform any other act. The Escrow Agent
shall be under no liability to the other parties hereto or anyone else, by reason of any failure, on the part of any party hereto
or any maker, guarantor, endorser or other signatory of a document or any other person, to perform such person’s obligations
under any such document. Except for amendments to this Agreement referenced below, and except for written instructions given to
the Escrow Agent by the Company and the Underwriter relating to the Escrowed Funds, the Escrow Agent shall not be obligated to
recognize any agreement between or among any of the Company and the Underwriter, notwithstanding that references thereto may be
made herein and the Escrow Agent has knowledge thereof.

 

b.           The
Escrow Agent shall not be liable to the Company, the Underwriter, or to anyone else for any action taken or omitted by it, or any
action suffered by it to be taken or omitted, in good faith and acting upon any order, notice, demand, certificate, opinion or
advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report, or other paper or document (not
only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained), which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper
person or persons. The Escrow Agent shall not be bound by any of the terms thereof, unless evidenced by written notice delivered
to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless
it shall give its prior written consent thereto.

 

c.           The
Escrow Agent shall not be responsible for the sufficiency or accuracy of the form, or of the execution, validity, value or genuineness
of, any document or property received, held or delivered to it hereunder, or of any signature or endorsement thereon, or for any
lack of endorsement thereon, or for any description therein; nor shall the Escrow Agent be responsible or liable to the Company,
the Underwriter, or to anyone else in any respect on account of the identity, authority or rights, of the person executing or delivering
or purporting to execute or deliver any document or property or this Agreement. The Escrow Agent shall have no responsibility with
respect to the use or application of the Escrowed Funds pursuant to the provisions hereof.

 

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d.           The
Escrow Agent shall have the right to assume, in the absence of written notice to the contrary from the proper person or persons,
that a fact or an event, by reason of which an action would or might be taken by the Escrow Agent, does not exist or has not occurred,
without incurring liability to the Company, the Underwriter, or to anyone else for any action taken or omitted to be taken or omitted,
in good faith and in the exercise of its own best judgment, in reliance upon such assumption.

 

e.           To
the extent that the Escrow Agent becomes liable for the payment of taxes, including withholding taxes, in respect of the Investment
Gain Funds, or any payment made hereunder, the Escrow Agent may pay such taxes from the Escrowed Funds; and the Escrow Agent may
withhold from any payment of the Escrowed Funds and Investment Gain Funds such amount as the Escrow Agent estimates to be sufficient
to provide for the payment of such taxes not yet paid, and may use the sum withheld for that purpose. The Escrow Agent shall be
indemnified and held harmless against any liability for taxes and for any penalties in respect of taxes, on such investment income
or payments in the manner provided in Section 4(f).

 

f.            The
Escrow Agent will be indemnified and held harmless by the Company and Underwriter from and against all expenses, including all
counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or proceeding involving
any claim, or in connection with any claim or demand, which in any way, directly or indirectly, arises out of or relates to this
Agreement, the services of the Escrow Agent hereunder, except for claims relating to gross negligence or reckless misconduct by
the Escrow Agent or breach of this Agreement by the Escrow Agent, or the monies or other property held by it hereunder. Promptly,
but no later than ten (10) business days, after the receipt by the Escrow Agent of notice of any demand or claim or the commencement
of any action, suit or proceeding, the Escrow Agent shall, if a claim in respect thereof is to be made by the Escrow Agent against
the Company, notify the Company in writing, but the failure by the Escrow Agent to give such notice shall not relieve the Company
from any liability which the Company may have to the Escrow Agent hereunder, unless the failure of the Escrow Agent to give such
notice prejudices or otherwise impairs the Company’s ability to defend any demand, claim, action suit or proceeding. Notwithstanding
any obligation to make payments and deliveries hereunder, the Escrow Agent may retain and hold for such time as it deems necessary
such amount of monies or property as it shall, from time to time, reasonably deem sufficient to indemnify itself for any such loss
or expense.

 

g.           For
purposes hereof, the term “expense or loss” shall include all amounts paid or payable to satisfy any claim, demand
or liability, or in settlement of any claim, demand, action, suit or proceeding settled with the express written consent of the
Escrow Agent, and all costs and expenses, including, but not limited to, counsel fees and disbursements, paid or incurred in investigating
or defending against any such claim, demand, action, suit or proceeding.

 

		5.	Indemnification by the Company. The indemnification
provisions subject to this Agreement are set forth in Sections 7(l) and 8 of the Underwriting Agreement dated ____________, 2017
by and between the Company and the Underwriter, which Sections 7(l) and 8 shall be deemed to part of this Agreement.

 

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		6.	Termination of Agreement and Resignation of Escrow
Agent.

 

a.           This
Agreement shall terminate upon disbursement of all of the Escrowed Funds and Investment Gain Funds provided that the rights of
the Escrow Agent and the obligations of the Company and the Underwriter under Section 4 shall survive the termination hereof.

 

b.           The
Escrow Agent may resign at any time and be discharged from its duties as Escrow Agent hereunder by giving the Company and the Underwriter
at least fifteen (15) business days written notice thereof (the “Notice Period”). As soon as practicable after
its resignation, the Escrow Agent shall, if it receives notice from the Company and the Underwriter within the Notice Period, turn
over to a successor escrow agent appointed by the Company and the Underwriter all Escrowed Funds and Investment Gain Funds (less
such amount as the Escrow Agent is entitled to continue to retain and hold in escrow pursuant to Section 4(f) and to retain pursuant
to Section 7) upon presentation of the document appointing the new escrow agent and its acceptance thereof. If no new agent is
so appointed within the Notice Period, the Escrow Agent shall return the Escrowed Funds and Investment Gain Funds to the Company
without interest or deduction.

 

		7.	Form of Payments by Escrow Agent.

 

a.           Any
payments of the Escrowed Funds by the Escrow Agent pursuant to the terms of this Agreement shall be made by wire transfer unless
directed to be made by check by the Underwriter and/or Company.

 

b.           All
amounts referred to herein are expressed in United States Dollars and all payments by the Escrow Agent shall be made in such dollars.

 

		8.	Compensation. Escrow Agent shall be entitled to
$12,500.00 as compensation for its services rendered under this Agreement, which amount shall be delivered by the Company to an
account designated by the Escrow Agent on the same date when the Escrowed Funds are delivered into the Escrow Account.

 

		9.	Notices. All notices, demands, consents, requests,
instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement
or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received
by the intended recipient as follows: (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt
of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, on the business day of
such delivery (as evidenced by the signed certified mail card), (iii) if delivered by overnight courier (with all charges having
been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized
standing), (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 6:00 p.m. in the time
zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation
of delivery generated by the sending party’s telecopier machine), or (v) if delivered by email on the business day of such
delivery (as evidenced by delivery confirmation). If any notice, demand, consent, request, instruction or other communication
cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 9), or the refusal
to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second
business day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands, consents, requests,
instructions and other communications will be sent to addresses or facsimile numbers as applicable set forth hereunder.

 

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If to the Company, to: 

 

Farmmi, Inc.

 

Farmmi, Inc.

No. 888 Tianning Street

Lishui, Zhejiang province

People’s Republic of
China 323000

Attention: Mrs. Yefang Zhang

Email:  zhang@f0086.com

 

with a copy to:

Anthiny W. Basch, Esq.

Kaufman & Canoles, P.C.

Two James Center, 14th Floor

1021 East Cary Street

Richmond, Virginia

Email:  awbasch@kaufcan.com

 

If to the Underwriter, to:

 

ViewTrade Securities, Inc.

Attn: Doug K. Aguililla

7280 West Palmetto Park Road, Suite 310

Boca Raton, FL 33433

Email:  dougagui@viewtrade.com

 

If to the Escrow Agent, to: 

 

Pearlman Schneider LLP

Attn: Charles B. Pearlman, Esq.2200 Corporate Blvd. NW, Suite 210

Boca Raton, Florida 33431

Phone: 561-362-9595

Email:  charlie@pslawgroup.net 

 

		10.	Further Assurances. From time to time on and after
the date hereof, the Company and the Underwriter shall deliver or cause to be delivered to the Escrow Agent such further documents
and instruments and shall do and cause to be done such further acts as the Escrow Agent shall reasonably request (it being understood
that the Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes
of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

 

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		11.	Consent to Service of Process. The Company, the
Underwriter and the Escrow Agent hereby irrevocably consent to the jurisdiction of the courts of the State of Florida and of any
Federal court located in such state in connection with any action, suit or proceedings arising out of or relating to this Agreement
or any action taken or omitted hereunder, and waives personal service of any summons, complaint or other process and agrees that
the service thereof may be made by certified or registered mail directed to it at the address listed hereto.

 

		12.	Miscellaneous.

 

a.           This
Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing such
instrument to be drafted. The terms “hereby,” “hereof,” “hereunder,” and any similar terms,
as used in this Agreement, refer to the Escrow Agreement in its entirety and not only to the particular portion of this Agreement
where the term is used. The word “person” shall mean any natural person, partnership, corporation, government and any
other form of business of legal entity. All words or terms used in this Agreement, regardless of the number or gender in which
they were used, shall be deemed to include any other number and any other gender as the context may require. This Agreement shall
not be admissible in evidence to construe the provisions of any prior agreement.

 

b.           This
Agreement and the rights and obligations hereunder of the Company and the Underwriter may not be assigned without the consent of
the Escrow Agent, other than by laws of descent or operation of law. This Agreement and the rights and obligations hereunder of
the Escrow Agent may be assigned by the Escrow Agent, with the prior consent of the Company. This Agreement shall be binding upon
and inure to the benefit of each party’s respective successors, heirs and permitted assigns. No other person shall acquire
or have any rights under or by virtue of this Agreement. This Agreement may not be changed orally or modified, amended or supplemented
without an express written agreement executed by the Escrow Agent, the Company and the Underwriter, which consent shall not be
unreasonably withheld. This Agreement is intended to be for the sole benefit of the parties hereto and their respective successors,
heirs and permitted assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be,
for the benefit of any third person.

 

c.           This
Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Florida. The representations
and warranties contained in this Agreement shall survive the execution and delivery hereof and any investigations made by any party.
The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect any of the terms thereof.

 

		13.	Execution of Counterparts. This Agreement may
be executed in any number of counterparts, by facsimile or other form of electronic transmission, each of which shall be deemed
to be an original as of those whose signature appears thereon, and all of which shall together constitute one and the same instrument.
This Agreement shall become binding when one or more of the counterparts hereof, individually or taken together, are signed by
all parties hereto.

 

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[SIGNATURE PAGE TO INDEMNIFICATION ESCROW AGREEMENT]

 

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

 

ESCROW AGENT: 

 

PEARLMAN SCHNEIDER LLP

 

	By:	 	 
	Name:	 
	Title:	 
	 	 
	COMPANY:	 
	 	 
	FARMMI, INC.	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	UNDERWRITER:	 
	 	 
	VIEWTRADE SECURITIES, INC.	 
	 	 	 
	By:	 	 
	Name: DOUGLAS K. AGUILILLA	 
	Title: DIRECTOR, INVESTMENT BANKING	 

 

     

     

    

 

Schedule A

 

	ACCOUNT NAME:	TRUST ACCOUNT
	ACCOUNT NO.:	 
	ABA ROUTING NO.:

SWIFT CODE: 	 
	BANK:	 
	REFERENCE: ATTN:	 
	 	 
	PLEASE WIRE IN U.S. DOLLARSExhibit 4.30

 

 

 

SECURED LOAN AGREEMENT

 

 

 

This Secured Loan Agreement (this “Agreement”)
is entered into as of the 16 day of May, 2016, by and among William L. Holter, a Texas resident (“Lender”) and
Tanzanian Royalty Exploration Corporation, a Canadian corporation (“Borrower”) (each a “Party”
and collectively the “Parties”).

 

WHEREAS, Lender desires to loan US$104,900.00
dollars to Borrower, and Borrowers desires to borrow such amount from Lender, under the terms and conditions set forth herein.

 

NOW THEREFORE, the Parties, each intending
to be legally bound by this Agreement, hereby agree as follows:

 

		1.	Loan. Lender hereby loans Borrower, and Borrower hereby borrows from Lender (the “Loan”) $104,900
US Dollars.

 

		2.	Maturity Date. The Loan shall be for a period of one (1) year (the “Term”) beginning on the Loan
Commencement Date and maturing on May 16, 2017 (the “Maturity Date”). On the Maturity Date, Borrower shall repay
the Loan to Lender without notice or other demand (“Loan Repayment”).

 

		3.	

		a)	Cash - Cash payment in U.S. Dollars in the amount of the Loan Value as of the Loan Commencement Date; or

 

		b)	Stock - Shares of common stock of the borrower (“Stock”) having an aggregate market value equal to
the Loan Value on the Loan Commencement Date. For purposes of this paragraph the market value of each share of Stock shall be US$0.50/share
(the “Share Value”).

 

Lender shall notify Borrower of the manner of Loan Repayment
by email within five (5) days of the Maturity Date. Borrower’s delivery of the Cash or Stock as Loan Repayment shall be made
within fifteen (15) days of Borrower’s receipt of notice from Lender, setting forth the manner of the Loan Repayment. No
deductions shall be made with respect to the Loan Repayment, Borrower being solely responsible for any transaction costs or fees
associated therewith.

 

    

     

    

At any time during the term of this agreement, the Lender has
the right to convert the Shares at a rate of US $0.50/share.

 

		4.	Loan Extension. By mutual consent of the Parties, the Term of the Loan may be extended for one (1) year.

 

		5.	Interest. During the Term (or any renewal term), Borrower shall pay Lender simple interest on the Loan at a rate of
eight percent (8%) of the Loan Value per annum (“Interest”). Interest shall be paid on a quarterly basis, in
equal installments in arrears, and shall be made by Borrower in either of the manners described below, the method to be selected
at the sole discretion of the Lender:

 

b) Cash - Cash payment in U.S. Dollars in
the amount of quarterly Interest due (“Quarterly Cash Interest”); or

 

c) Stock – Stock in the number of shares
equal to the Quarterly Cash Interest divided by the Share Value of US$0.38/share.

 

Lender shall notify Borrower of the manner of Interest payment
by email within five (5) days prior to each quarterly Interest due date.

 

		6.	Email Notifications. Lender’s notification to Borrower (a) of Lender’s selection of the manner of Loan Repayment
or payment of Interest (b) of Borrower’s Default (as herein defined) shall be made by email. Borrower’s email address
for these purposes is tnxcorporate@tanzanianroyalty.com Lender’s email notifications are deemed irrefutably received by Borrower
upon email delivery confirmation.

 

		7.	Security Interest. As security for the full and timely payment and performance of all Borrower’s payment obligations
hereunder, whether now existing or hereafter incurred, matured or un-matured, direct or indirect, primary or secondary, related
or unrelated or due or to become due, arising under this Agreement, and any extensions, modifications, substitutions, increases
and renewals thereof, and substitutions therefor, Borrower does hereby collaterally pledge, assign, transfer, convey, mortgage,
delivery, and grant to Lender a security interest in and first lien on the new CIL Plant, pad loadings, gold on pads, gold in form
of dore, gold in plant process and gold at refinery, to secure Borrower’s payment obligations under this

 

 

    

     

    

Agreement (the “Collateral”). Borrower
shall take all reasonable steps to protect the Collateral, and in pursuance thereof Borrower agrees that the Collateral: (a) shall
be kept at the plant site, and shall be used only in the conduct in the ordinary course of Borrower’s business; (b) shall
not be misused, wasted or allowed to deteriorate, except for the ordinary wear and tear resulting from its use, as aforesaid; (c)
shall at all times be insured against loss, damage, theft and such other risks; (d) shall not be used in violation of any applicable
statue, law, rule,, regulation or ordinance; (e) shall be kept free of all encumbrances other than as created by this agreement
and (f) may be examined and inspected by Lender (upon reasonable prior notice, either written or oral), wherever located. Borrower
will not sell, lease, transfer or otherwise dispose of any of Collateral, except for sales of Collateral that is worn out and replaced
in the ordinary course of Borrower’s business.

 

		8.	Borrower’s Representations and Warranties. As of the date of execution of this Agreement Borrower hereby represents
and warrants to Lender the followings:

 

		a)	Valid Organization, Good Standing and Qualification. Borrower is a corporation, duly created, validly existing and in
good standing under the laws of Ontario, Canada, has full power and authority to execute, deliver and comply with this Agreement,
and to carry on its business as it is now being conducted and is duly licenses or qualified as a foreign company in good standing
under the laws of each jurisdiction in which the character or location of the properties owned by it or the business transacted
by it requires such licensing or qualification.

 

		b)	Pending Litigation or Proceedings. There are no judgements outstanding or actions, suits or proceedings pending or,
to the Borrower’s knowledge, threatened against or affecting Borrower, at law or in equity or before or by any federal, state,
municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, that would
have a material adverse effect on Borrower’s ongoing business prospects or Borrower’s ability to enter into this Agreement
or the performance by Borrower of its obligations hereunder.

 

 

 

 

 

 

    

     

    

		c)	Due Authorization; No Legal Restrictions. The execution and delivery by Borrower of this Agreement, the consummation
of the transactions contemplated hereby and the fulfillment and compliance with the terms, conditions and provisions of this Agreement:
(i) have been duly authorized by all requisite corporate action of Borrower; (ii) will not conflict with or result in a breach
of, or constitute a default (or might, upon the passage of time or the giving of notice or both, constitute a default) under, any
of the terms, conditions or provisions of any applicable statue, law, rule, regulation or ordinance, or Borrower’s organizational
documents or any indenture, mortgage, loan, credit agreement or instrument to which Borrower is a party or by which Borrower may
be bound or affected, or any judgement or order of any court or governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign; and (iii) will not result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever
upon any of the property or assets of Borrower under the terms or provisions of any such agreement or instrument, except liens
in favor of Lender.

 

		d)	Enforceability. This Agreement constitutes the legal, valid and binding obligation of Borrower, enforceable in accordance
with its terms, except as enforceability may be limited by any bankruptcy, insolvency, reorganization, moratorium or other laws
or equitable principles affecting creditors’ rights generally.

 

		e)	Title to Collateral. The Collateral is owned by Borrower, free and clear of all liens and other encumbrances of any
kind (including liens or other encumbrances upon properties acquired or to be acquired under conditional sales agreement or other
title retention devised), excepting only liens in favor of Lender.

 

		f)	Stock of Borrower. Borrower has sufficient shares of Stock authorized an available to make any Stock payments set forth
in this Agreement. Borrower has taken all necessary corporate action to authorize any payments hereunder to be made with shares
of Stock.

 

    

     

    

		g)	Accuracy of Representations of Warranties. No representation or warranty by Borrower contained herein or in any certificate
or other document furnished by Borrower pursuant hereto or in connection herewith fails to contain any statement of material fact
necessary to make such representation or warranty not misleading in light of the circumstances under which it was made. There is
no fact which Borrower knows or should know and has not disclosed to Lender, which does or may materially and adversely affect
Borrower or its operations.

 

10. Event of Default. A Party’s material
breach of any representation, warranty or covenant under this Agreement shall be a “Default”. With respect to any nonmonetary
Default, the defaulting Party, upon email notification from the non-defaulting Party thereof, shall have fifteen (15) days to cure
such Default. If the defaulting fails to cure a nonmonetary Default within such fifteen (15) day period, then such Default shall
ripen into an “Event of Default”. Any monetary Default by Borrower under this Agreement shall constitute an
Event of Default when amounts hereunder are not paid when due. Upon an Event of Default, Lender may accelerate the Loan, and in
such case Borrower shall immediately effect a Loan Repayment and shall pay Lender all then accrued Interest.

 

11. Indemnification. To the extent permitted
by Law, Borrower agrees to indemnify and hold harmless Lender and Lender’s successors, and assigns from any liability, loss
or damage, including without limitation, reasonable attorneys’ fees, he or it may suffer as a result of claims, demands,
costs or judgements arising out of the obligations required under this Agreement or relating to an Event of Default.

 

12. Amendment and Modification. This Agreement
may only be amended, modified or supplemented by an agreement in writing signed by each Party hereto.

 

13. Integration. This Agreement contains the
entire understanding of the Parties with respect to the matters contained therein, and supersede all prior agreements and understandings
between the Parties with respect to the subject matter thereof and do not require parol or extrinsic evidence in order to reflect
the intent of the Parties.

 

14. Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.
A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have
the same legal effect as delivery of an original signed copy of this Agreement.

 

 

 

 

 

    

     

    

15. Governing Law. This Agreement has been
made, executed and delivered in the State of Texas and will be construed in accordance with and governed by the laws of the State
of Texas without regard to conflict of law principles.

 

16. Binding Effect. This Agreement and all
rights and powers granted hereby will bind and inure to the benefit of the Parties hereto and their respective permitted successors
and assigns.

 

17. Severability. The provisions of this Agreement
are deemed to be severable, and the invalidity or unenforceability of any provision shall not affect or impair the remaining provisions
which shall continue in full force and effect.

 

18. Holidays. If the day provided herein for
the payment of any amount or the taking of any action falls on a Saturday, Sunday or public holiday at the place for payment or
action,, then the due date for such payment or action will be the next succeeding business day.

 

19. Headings. The headings of this Agreement
are inserted for convenience only and shall not be deemed to constitute a part of this Agreement.

 

20. No Assignment by Borrower.  Borrower may
not assign this Agreement or any of its rights hereunder without the prior written consent of Lender, and without which any such
assignment shall be void and of no force or effect.

 

21. Assignment or Sale by Lender. Lender may
sell, assign or participate all or a portion of its interest in this Agreement and in connection therewith may make available to
any prospective purchases, assignee or participant any information relative to Borrower in its possession.

 

22. No Third Party Beneficiaries. The rights
and benefits of this Agreement shall not inure to the benefit of any third party. Notwithstanding the foregoing, if Lender dies
prior the Loan Repayment, then all of Lender’s rights, benefits and interest in this Agreement (and the proceeds thereof)
shall automatically transfer and inure to the benefit of Lender’s wife, Kathryn Ann Holter, a Texas resident.

 

 

 

 

 

 

 

 

 

    

     

    

IN WITNESS WHEREOF, the Parties hereto have caused
this Secured Gold Loan Agreement to be duly executed, seal and delivered as of the 16th day of May, 2016.

 

 

	Lender:	 
	 	 	 
	By:	/s/ William L. Holter	 
	 	 	 
	Borrower:	 
	 	 	 
	Tanzanian Royalty Exploration Corporation	 
	 	 	 
	By:	/s/ James E. Sinclair	 
	 	James E. Sinclair, CEO & President

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