Document:

Exhibit 10.1

 

OPTION to
Purchase AGREEMENT

 

THIS OPTION TO PURCHASE
AGREEMENT is made and entered into effective as of October 16, 2019, by and among Golden Minerals Company, a Delaware corporation,
whose address for purposes hereof is 350 Indiana Street, Suite 800, Golden, Colorado, U.S.A. 80401 (hereinafter referred to as
“GMC”), and its wholly-owned subsidiary, Minera de Cordilleras, S. de R.L. de C.V. (“GMC Mexico”), and
Magellan Gold Corporation, a Nevada corporation, whose address for purposes hereof is 500 Marquette Avenue N.W., Suite 1200, Albuquerque,
NM 87102 (“Magellan”), and its wholly-owned subsidiary, Recursos Ecologicos Alternativos la Rumorosa (REA) S.A. de
C.V (“Magellan Mexico”). GMC, GMC Mexico, Magellan and Magellan Mexico may be individually referred to as a “Party”
and will be collectively referred to hereinafter as the “Parties.”

 

RECITALS

 

A.       GMC
Mexico is the holder of contractual interests in certain mining concessions which together comprise the Santa Maria Mine in the
State of Chihuahua, Mexico. Those concessions (the “Concessions”) and GMC Mexico’s contractual interests therein
are more particularly described in the attached Exhibit A-1.

 

B.       GMC,
through GMC Mexico, desires to grant to Magellan, through Magellan Mexico, and Magellan desires to acquire an exclusive option
to purchase GMC Mexico’s interest in Concessions and related rights (collectively, the “Property” as defined
below) from GMC Mexico, for the consideration and upon the terms and conditions described herein.

 

C.       Magellan
and GMC wish to enter into this Agreement for the purposes of setting forth the structure of the transaction they wish to accomplish
between their respective Mexican subsidiaries and agreeing upon the respective rights and obligations that they will cause their
respective subsidiaries to assume and perform.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which the Parties hereby confirm and acknowledge, and the mutual
promises, covenants, and conditions contained in this Agreement, the Parties agree as follows:

 

ARTICLE
1

DEFINITIONS

 

As used in this Agreement,
the following terms shall have the meanings assigned to them in this Article 1.

 

1.1           
“Affiliate” means any person, partnership, joint venture, corporation, company or other form of enterprise
which directly or indirectly Controls, is Controlled by, or is under common Control with, a Party to this Agreement.

 

1.2           
“Agreement” means this Option to Purchase Agreement, the recitals and all exhibits attached hereto, which
by this reference are incorporated herein.

 

1.3           
“Area of Interest” means the area that is encompassed within two kilometers around the current exterior
boundaries of the Concessions and including the entire area of any other concession that falls partly within and partly outside
the Area of Interest.

 

1.4           
“Business Day” means a day other than a Saturday, Sunday or any day on which federally chartered banks
in the city of Denver, Colorado, are not open for business during normal banking hours.

 

1.5           
“Commercial Production” means the commercial exploitation of Valuable Minerals from the Property, or
any part, as a mine, but does not include milling for the purpose of testing or milling by a pilot plant. Commercial Production
shall be deemed to have commenced:

 

 

 

    	 	1	 

     

    

 

(a)            
if a processing plant is located on the Property, on the first day following the first period of 90 consecutive days during
which Valuable Minerals have been produced from the Property and processed in the processing plant at an average rate not less
than 80% of the initial design rated capacity of such plant; or

 

(b)            
if no processing plant is located on the Property, on the first day of the month following the first period of 90 consecutive
days during which Valuable Minerals have been shipped from the Property to a processing plant on a reasonably regular basis for
the purpose of earning revenue.

 

1.6           
“Control” when used as a verb with respect to an entity, means the ability, directly or indirectly through
one or more intermediaries, to direct or cause the direction of the management and policies of such entity through (i) the legal
or beneficial ownership of voting securities or membership interests; (ii) the right to appoint managers, directors or corporate
management; (iii) contract; (iv) operating agreement; (v) voting trust; or otherwise; and, when used with respect to a person,
means the actual or legal ability to control the actions of another, through family relationship, agency, contract or otherwise;
and, when used as a noun, means an interest which gives the holder the ability to exercise any of the foregoing powers.

 

1.7           
“Development Period” means the one-year period following the Closing Date, subject to the provisions
of Article 13.

 

1.8           
“Effective Date” means October 16, 2019.

 

1.9           
“Encumbrance” or “Encumbrances” means mortgages, deeds of trust, security interests,
pledges, liens, net profits interests, royalties or overriding royalty interests, other payments out of production, or other burdens
or charges of any nature.

 

1.10        
“Environmental Compliance” means actions taken in connection with activities or operations on the Property
to comply with the requirements of all Environmental Laws or contractual commitments related to reclamation of the Property, or
other compliance with Environmental Laws.

 

1.11        
“Environmental Laws” means Laws aimed at reclamation or restoration of the Property; abatement of pollution;
protection of the environment; protection of human health and safety; protection of wildlife, including endangered species; ensuring
public safety from environmental hazards; protection of cultural or historic resources; management, storage or control of Hazardous
Materials; releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic or Hazardous Materials as
wastes into the environment, including ambient air, surface water and groundwater; and all other Laws relating to the manufacturing,
processing, distribution, use, treatment, storage, disposal, handling or transport of pollutants, contaminants, chemicals or industrial,
toxic or Hazardous Materials or wastes.

 

1.12        
“Environmental Liabilities” means any liability arising out of, based on or resulting from (i) the
presence, release, threatened release, discharge or emission into the environment of any Hazardous Materials existing or arising
on, beneath or above the Property and/or emanating or migrating and/or threatening to emanate or migrate from the Property to other
properties; (ii) disposal or treatment of or the arrangement for the disposal or treatment of Hazardous Materials originating
or transported from the Property to an off-site treatment, storage or disposal facility, (iii) physical disturbance of the
environment on or from the Property; or (iv) the violation or alleged violation of any Environmental Laws relating to the
Property.

 

1.13        
“Existing Data” means information relating to title to the Property or environmental conditions at or
pertaining to the Property, maps, drill logs and other drilling data, core tests, pulps, reports, surveys, assays, analyses, production
reports, operations, technical, accounting and financial records, and other material information, pertaining to or developed with
respect to the Property prior to the Effective Date.

 

1.14        
“Exploration Agreements” means the agreements by which GMC Mexico holds its interests in the Concessions,
as those agreements are more particularly described in the attached Exhibit A-1.

 

1.15        
“Financing” means Magellan’s raising of at least $2,000,000 through such means (equity or debt)
as it chooses in its sole discretion, such funds to be used solely for purposes of (a) paying portions of the Purchase Price
or (b) achieving Commercial Production of Valuable Minerals from the Concessions.

 

 

 

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1.16        
“Governmental Fees” means all location fees, maintenance payments, land taxes and similar payments required
by Law to maintain the Concessions.

 

1.17        
“Hazardous Materials” means any substance: (a) the presence of which requires reporting, investigation,
removal or remediation under any Environmental Law; (b) that is defined as a “hazardous waste,” “hazardous
substance,” “extremely hazardous substance” or “pollutant” or “contaminant” under any
Environmental Law; (c) that is toxic, explosive, corrosive, flammable, ignitable, infectious, radioactive, reactive, carcinogenic,
mutagenic or otherwise hazardous and is regulated under any Environmental Law; (d) the presence of which on a property causes
or threatens to cause a nuisance upon the property or to adjacent properties or poses or threatens to pose a hazard to the health
or safety of persons on or about the Property; (e) that contains gasoline, diesel fuel or other petroleum hydrocarbons; or
(f) that contains PCBs, asbestos or urea formaldehyde foam insulation; in each case subject to exceptions provided in applicable
Environmental Laws.

 

1.18        
“Law” or “Laws” means all applicable federal, provincial, state and local laws (statutory
or common), rules, ordinances, regulations, grants, concessions, franchises, licenses, orders, directives, judgments, decrees,
and other governmental restrictions, including permits and other similar requirements, whether legislative, municipal, administrative
or judicial in nature.

 

1.19        
“NSR Agreement” means a royalty agreement in the form attached hereto as Exhibit B.

 

1.20        
“Option” means Magellan Mexico’s exclusive right to purchase GMC Mexico’s interest in the
Property pursuant to Section 2.1.

 

1.21        
“Option Period” means the period of time commencing on the Effective Date and continuing until the earlier
of (i) the date upon which Magellan notifies GMC that it has completed the Financing and (ii) March 14, 2020 (the date
150 days after the Effective Date), unless Magellan and Magellan Mexico have otherwise relinquished their rights hereunder.

 

1.22        
“Property” means GMC’s Mexico’s interest in the Exploration Agreements and the Concessions,
together with all surface rights, water rights, easements and rights-of-way owned or held by GMC Mexico in connection with its
interests in the Concessions (collectively, the “Ancillary Rights”), as identified on Exhibit A-2.

 

1.23        
“Purchase Price” means $4,000,000, payable as set forth in Section 2.2.

 

1.24        
“Royalty” means the production royalty payable under the NSR Agreement.

 

1.25        
“Securities Laws” means the United States Securities Act of 1933, as amended, and all applicable Canadian
federal and provincial and U.S. federal and state securities laws.

 

1.26        
“Transfer” means, when used as a verb, to sell, grant, assign, create an Encumbrance, pledge or otherwise
convey, or dispose of or commit to do any of the foregoing, either directly or indirectly; and, when used as a noun, means such
a sale, grant, assignment, Encumbrance, pledge or other conveyance or disposition, or such an arrangement.

 

1.27        
“Valuable Minerals” shall mean all ores, minerals, mineral deposits or mineral substances located in,
on or under the Property, which the holder has the right to mine under the Concessions.

 

1.28        
“$” shall mean United States currency.

 

 

 

    	 	3	 

     

    

 

ARTICLE
2

GRANT OF OPTION

 

2.1           
Rights Granted. GMC Mexico hereby grants to Magellan Mexico the exclusive and irrevocable option to acquire the Property
(the “Option”) by (a) completing the Financing during the Option Period, (b) promptly notifying GMC of such
completion on or prior to the last day of the Option Period, and (c) commencing Commercial Production from a deposit of Valuable
Minerals from the Property by the last day of the Development Period. Magellan and Magellan Mexico agree to use their commercially
reasonable best efforts to complete the Financing during the Option Period. Magellan shall provide GMC with updates on its efforts
to obtain the Financing at least once every 15 days during the Option Period.

 

2.2           
Acquisition of the Property.

 

(a)            
Exercise of Option. Upon timely completion of the Financing and providing notice of the same to GMC, Magellan Mexico
shall have the right to exercise the Option.

 

(b)            
Procedures. To exercise the Option, Magellan Mexico shall promptly (and in any event on or before the last day of
the Option Period) give GMC Mexico notice of its completion of the Financing, and of its decision to exercise the Option. In order
to exercise the Option, Magellan shall have, on or before the last day of the Option Period, issued a press release announcing
completion of the Financing and made all filings required under applicable Securities Laws and stock exchange rules in connection
therewith. Within 15 days after the date of GMC Mexico’s receipt of such notice, on a mutually agreed date (the “Closing
Date”) and at a mutually agreeable time and place, the parties shall close the sale of the Property to Magellan Mexico (the
“Closing”). At the Closing, Magellan Mexico shall pay the Initial Payment (as defined in Section 2.2(c) below)
to GMC Mexico, and GMC Mexico shall execute and deliver to Magellan Mexico such documents in addition to this Agreement as Magellan
Mexico may reasonably require, sufficient for registering in the appropriate offices of the Mexican Mining Registry, to confirm
Magellan Mexico’s rights hereunder to conduct exploration, development and mining activities on the Property (to the extent
permitted under the Exploration Agreements and the Ancillary Rights). If Magellan Mexico notifies GMC Mexico that it has elected
not to exercise the Option, this Agreement shall terminate and the provisions of Section 9.2 shall apply.

 

(c)            
Initial Cash Payment on Closing. At the Closing, Magellan Mexico will pay $1,000,000 to GMC Mexico by wire transfer
in immediately available funds (the “Initial Payment”).

 

(d)            
Net Smelter Royalty. At the Closing, Magellan Mexico and GMC Mexico shall execute and deliver the NSR Agreement,
pursuant to which Magellan Mexico shall grant a 6.5% net smelter returns production royalty (the “Royalty”) to GMC
Mexico. The remaining portion of the Purchase Price ($3,000,000) shall be paid by a combination of either production royalty payments
under the NSR Agreement or (at the discretion of the Magellan Mexico) cash payments by Magellan Mexico directly to GMC Mexico.
Upon full payment by Magellan Mexico of the remainder of the Purchase Price to GMC Mexico pursuant to this Section 2.2(d), the
Royalty under the NSR Agreement shall be reduced to 3%, as set forth therein.

 

(e)            
Delivery of Conveyance Documents. Upon receipt by GMC Mexico of the entire amount of the Purchase Price, GMC Mexico
and Magellan Mexico shall promptly execute and deliver conveyances of GMC Mexico’s interest in the Property to Magellan Mexico,
pursuant to which Magellan Mexico assumes (and GMC Mexico is released from) all of GMC Mexico’s obligations under the Exploration
Agreements, sufficient for registering in the appropriate offices of the Mexican Mining Registry, in a form of assignment mutually
agreeable to the parties and their respective counsel in Mexico (the “Assignments”). The Assignments shall convey GMC
Mexico’s interest in the Property to Magellan Mexico free and clear of all Encumbrances (except for the Royalty) arising
by, through or under GMC Mexico.

 

2.3           
Failure to Achieve Commercial Production. If Magellan Mexico has not achieved Commercial Production from a deposit
of Valuable Minerals from the Concessions within 365 days after the Closing Date (during the Development Period), then GMC
Mexico shall have no obligation to execute and deliver the Assignments, and this Agreement shall terminate pursuant to the provisions
of Section 9.2. Upon such termination, GMC shall have no obligation to return the Initial Payment or any other portions of
the Purchase Price that have been paid by Magellan Mexico, and the Parties agree that those payments will constitute the consideration
for the granting of the Option.

 

 

 

    	 	4	 

     

    

 

2.4           
Geological and Other Data. Upon execution of this Agreement, GMC shall make the Existing Data available to Magellan,
and Magellan, at its expense, may copy any such Existing Data that it desires. Neither GMC nor GMC Mexico makes any representation
or warranty as to the accuracy, reliability or completeness of any Existing Data, and Magellan and Magellan Mexico shall rely on
the same at their sole risk.

 

2.5           
Activities During Option Period. During the Option Period, Magellan Mexico shall have no right to conduct any activities
other than exploration work as mutually agreed on the Concessions or at the Property. During the Option Period, GMC Mexico shall
make all payments and take all other actions as required under the Exploration Agreements to maintain the Concessions. In addition,
during the Option Period, GMC Mexico shall timely make all option and other payments due to the owners of the Concessions under
the Exploration Agreements.

 

ARTICLE
3

RIGHTS OF Magellan MEXICO DURING THE Development PERIOD

 

3.1           
Magellan Mexico’s Rights. During the Development Period, Magellan Mexico’s rights shall include, without
limitation, but subject to the terms of and limitations set forth in the Exploration Agreements, the following:

 

(a)            
Magellan Mexico may carry out such operations at the Property as it may, in its sole discretion, determine to be warranted,
and Magellan Mexico shall have exclusive control of all operations on or for the benefit of the Property, and of any and all equipment,
supplies, machinery or other assets purchased or otherwise acquired in connection with such operations.

 

(b)            
Magellan Mexico’s rights shall include all other rights necessary or incident to or for its performance of any operations
hereunder, including the authority to apply for all necessary permits, licenses and other approvals from the federal government
of Mexico, the State of Chihuahua or any other governmental or other entity having regulatory authority over any part of the Property.

 

ARTICLE
4

OBLIGATIONS OF Magellan MEXICO DURING THE Development PERIOD

 

4.1           
Conduct of Operations by Magellan and Magellan Mexico at the Property. All of the work which may be performed by
or on behalf of Magellan Mexico on or at the Property during the Development Period shall be performed in a good and workerlike
manner and in accordance with good industry practices, and in full compliance with the terms and conditions of the Exploration
Agreements. Further, Magellan Mexico acknowledges and agrees that under the terms and conditions of the Exploration Agreement described
in Part A of Exhibit A-1, it cannot perform commercial mining operations unless and until it has exercised the option
to purchase the Concessions covered thereby.

 

4.2           
Indemnity. Magellan and Magellan Mexico agree to indemnify, defend and hold GMC and GMC Mexico harmless from and
against any loss, liability, expense or damage (including reasonable attorneys’ fees) either GMC or GMC Mexico may incur
to third persons or entities for injury to or death of persons or damage to property which is the result of any operations conducted
by or on behalf of Magellan Mexico at or on the Property during the Development Period.

 

4.3           
Insurance. Magellan Mexico agrees to carry such insurance, covering all persons and entities working at or on the
Property for Magellan Mexico, as will fully comply with the requirements of the Laws of Mexico and the State of Chihuahua pertaining
to worker’s compensation and occupational disease and disabilities as are now in force or as may be hereafter amended or
enacted. In addition, during the Development Period, Magellan Mexico agrees to carry liability insurance with respect to such operations
in reasonable amounts not less than the greater of the minimum levels required by Law or as set forth below:

 

(a)            
Commercial General Liability Insurance with limits of not less than $2,000,000 per occurrence.

 

(b)            
Automobile Liability Insurance, with:

 

(i)             
Limits of not less than $1,000,000 Combined Single Limit per accident; and

 

(ii)           
Coverage applying to any auto.

 

 

 

 

    	 	5	 

     

    

All of the above-described policies (with
the exception of worker’s compensation and occupational disease and disabilities) shall name GMC Mexico as an additional
insured and shall contain provisions that the insurance companies will have no right of recovery or subrogation against GMC Mexico
or its Affiliates, it being the intention of the parties that the carrier of Magellan Mexico shall be liable for any and all losses
covered by the above-described insurance. All policies providing coverage hereunder shall contain provisions that no cancellation
or material changes in the policies shall become effective except on thirty (30) days’ advance written notice thereof to
GMC Mexico.

 

4.4           
Compliance with Laws. Magellan Mexico agrees to conduct and perform all of its operations at the Property during
the Development Period in full compliance with all applicable Laws, including Environmental Laws, and Magellan and Magellan Mexico
shall defend, indemnify and hold GMC and GMC Mexico harmless from and against payment of any damages or penalties occasioned by
Magellan Mexico’s failure (or the failure of any of its contractors or subcontractors) to comply with said Laws.

 

4.5           
Maintenance of Concessions. During the Development Period, Magellan Mexico shall timely pay to the appropriate governmental
authority all Governmental Fees required to maintain the Concessions, shall timely and properly perform all assessment work required
to maintain the Concessions, and shall timely file proof of performance thereof with the appropriate governmental authority, all
as required by applicable Laws and in accordance with the terms and conditions of the Exploration Agreements. In addition, during
the Development Period, Magellan Mexico shall timely make all option and other payments due to the owners of the Concessions under
the Exploration Agreements.

 

4.6           
Taxes. During the Development Period, to the extent required under the Exploration Agreements, Magellan Mexico shall
be responsible for full and timely payment of all taxes levied or assessed upon or against the Property and any facilities or improvements
located thereon; provided, however, that Magellan Mexico shall not be responsible for any such payments for which GMC Mexico
receives notices of due dates and fails to promptly forward copies of such notices to Magellan Mexico.

 

4.7           
Liens and Encumbrances. Magellan Mexico shall keep the title to the Property free and clear of all Encumbrances resulting
from its operations hereunder. At its sole cost and expense, Magellan Mexico shall contest any suit, demand or action commenced
to enforce such a claim and, if the suit, demand or action is decided by a court or other authority of ultimate and final jurisdiction
against Magellan Mexico or the Property, Magellan Mexico shall promptly pay the judgment and shall post any bond and take all other
action necessary to prevent any sale or loss of the Property or any part thereof.

 

4.8           
Reclamation. If this Agreement is terminated and Magellan Mexico does not acquire the Property, Magellan Mexico shall
reclaim the Property, to the extent disturbed by Magellan Mexico during the Development Period, in accordance with applicable Laws
and the terms and conditions of the Exploration Agreements. GMC Mexico, to the extent it is entitled to do so under the terms and
conditions of the Exploration Agreements, hereby agrees to grant to Magellan Mexico such access to the Property following termination
as is reasonably necessary to complete such reclamation work.

 

ARTICLE
5

REPRESENTATIONS AND WARRANTIES OF GMC and GMC Mexico

 

5.1           
Representations and Warranties. GMC and GMC Mexico represent and warrant to Magellan and Magellan Mexico as of the
Effective Date as follows:

 

(a)            
Organization and Standing. GMC is a corporation duly organized, validly existing, and in good standing under the
Laws of the State of Delaware, and GMC Mexico is a company duly organized, validly existing, and in good standing under the Laws
of Mexico and the State of Chihuahua.

 

(b)            
Corporate Power. Each of GMC and GMC Mexico has the requisite corporate power and authority (i) to enter into
this Agreement and all other agreements contemplated hereby, and (ii) to carry out and perform its obligations under the terms
and provisions of this Agreement and all agreements contemplated hereby.

 

 

 

    	 	6	 

     

    

 

(c)            
Authorization. All requisite corporate action on the part of GMC and GMC Mexico, and their respective officers, directors
and shareholders, necessary for the execution, delivery, and performance of this Agreement and all other agreements of either GMC
or GMC Mexico contemplated under this Agreement, have been taken. This Agreement and all agreements and instruments contemplated
hereby are, and when executed and delivered by GMC and GMC Mexico (assuming valid execution and delivery by Magellan and Magellan
Mexico), will be, legal, valid, and binding obligations of GMC and GMC Mexico enforceable against each of them in accordance with
their respective terms. The execution, delivery and performance of this Agreement will not violate any provision of Law; any order
of any court or other agency of government; or any provision of any indenture, agreement or other instrument to which either GMC
or GMC Mexico is a party or by which its properties or assets are bound; or be in conflict with, result in a breach of or constitute
(with due notice and lapse of time) a default under any such indenture, agreement or other instrument. There is no judgment, decree
or order of any court or governmental authority binding on either GMC or GMC Mexico which would be contravened by the execution,
delivery, performance, or enforcement of this Agreement or any instrument or agreement required hereunder. Notwithstanding the
foregoing, no representation is made as to (i) the availability of equitable remedies for the enforcement of this Agreement
or any other agreement contemplated hereby or (ii) rights to indemnity under this Agreement for securities law liability.
Additionally, this representation is limited by applicable bankruptcy, insolvency, moratorium, and other similar laws affecting
generally the rights and remedies of creditors and secured parties.

 

(d)            
Royalties. Except for the production royalties set forth in Exhibit A-3 (the “Existing Royalties”), to
the knowledge of GMC and GMC Mexico there are no royalties or other burdens on production arising by, through or under GMC Mexico
affecting the Property.

 

(e)            
Permits and Licenses. GMC Mexico has obtained all material permits, licenses, approvals, authorizations and qualifications
of all federal, state and local authorities (collectively, “Permits”) required for it to carry on its current operations
at or on the Property. To the knowledge of GMC and GMC Mexico, GMC Mexico is not in violation of and has no liability (other than
liability for compliance with existing permits and Laws, including performance of reclamation) under any statute, rule or regulation
of any governmental authority applicable to the Property.

 

(f)             
Title to the Property.

 

(i)             
GMC Mexico has not pledged, conveyed or otherwise assigned (or agreed to pledge, convey or otherwise assign) any interest
in the Property to any third party. With respect to the Concessions, to the knowledge of GMC and GMC Mexico, (A) the owners
of the Concessions as described in the Exploration Agreements are the legal and beneficial owner of the Concessions; (B) the Concessions
were properly issued by and are properly registered with the appropriate governmental agencies; (C) from and after the dates GMC
Mexico entered into each of the Exploration Agreements, all annual labor required to hold the Concessions covered thereby has been
timely and properly performed and all Governmental Fees required to hold the Concessions covered thereby have been timely and properly
paid through the Effective Date; and (D) proof of the performance of required annual labor with respect to the Concessions covered
thereby has been timely and properly filed with the appropriate governmental agencies.

 

(ii)           
The Property is free and clear of all Encumbrances arising by, through or under GMC or GMC Mexico except for the Existing
Royalties.

 

(g)            
Environmental Compliance. Neither GMC nor GMC Mexico has received any notice of violation or any consent order issued
under applicable Laws concerning protection of the environment and health and safety to which the Property or operations thereon
are now subject. There are no pending or, to the knowledge of GMC and GMC Mexico, threatened proceedings by or before any court
or other governmental authority with respect to operations on or the ownership of the Property alleged to be, or to have been,
in violation of, or to be the basis of liability under, any Environmental Law, and neither GMC nor GMC Mexico has knowledge of
any release of any Hazardous Materials at, from or affecting the Property.

 

(h)            
Material Contracts and Commitments. Through the Effective Date, GMC Mexico has performed all material obligations
required to be performed by it under the Exploration Agreements and under any other contracts affecting the Property to which it
is a party. True and correct copies of the Exploration Agreements, as amended, have been provided to Magellan.

 

 

 

    	 	7	 

     

    

 

(i)             
Legality. GMC Mexico has conducted all of its activities and operations on the Property in substantial compliance
with applicable Laws.

 

(j)             
Litigation and Claims. There are no actions, suits or proceedings pending or, to the knowledge of GMC or GMC Mexico,
threatened against or affecting the Property, including any actions, suits, or proceedings being prosecuted by any federal, state
or local department, commission, board, bureau, agency, or instrumentality.

 

(k)            
Consents. Other than consents from each of the counterparties to the Exploration Agreements, GMC and GMC Mexico have
obtained or made all consents, approvals, authorizations, declarations, or filings required by, from or under any federal, state,
local, or other authority, stock exchange or any other third party, in connection with the valid execution, delivery, and performance
by each of them of this Agreement and the consummation of the transactions contemplated hereby.

 

(l)             
Taxes. All federal, state and local excise, property and other taxes and assessments pertaining to or assessed against
the Property which GMC Mexico is required to pay pursuant to the Exploration Agreements have been timely and properly paid.

 

(m)          
Brokerage or Finder’s Fee. All negotiations relative to this Agreement and the transactions contemplated hereby
have been carried on by GMC and GMC Mexico in such manner as not to give rise to any valid claim against Magellan or Magellan Mexico
or any other third party for a brokerage commission, finder’s fee, or other fee or commission arising by reason of the transactions
contemplated by this Agreement.

 

ARTICLE
6

REPRESENTATIONS AND WARRANTIES OF Magellan and Magellan Mexico

 

6.1           
Representations and Warranties. Magellan and Magellan Mexico represent and warrant to GMC and GMC Mexico as of the
Effective Date as follows:

 

(a)            
Organization and Standing. Magellan is a corporation duly organized, validly existing, and in good standing under
the laws of the State of Nevada, and Magellan Mexico is a company duly organized, validly existing, and in good standing under
the Laws of Mexico and the State of Chihuahua.

 

(b)            
Corporate Power. Each of Magellan and Magellan Mexico has the requisite corporate power and authority (i) to
enter into this Agreement and all other agreements contemplated hereby, and (ii) to carry out and perform its obligations
under the terms and provisions of this Agreement and all agreements contemplated hereby.

 

(c)            
Authorization. All requisite corporate action on the part of Magellan and Magellan Mexico, and their respective officers,
directors and shareholders, necessary for the execution, delivery and performance of this Agreement and all other agreements of
either Magellan or Magellan Mexico contemplated under this Agreement, have been taken. This Agreement and all agreements and instruments
contemplated under this Agreement, when executed and delivered by Magellan and Magellan Mexico (assuming valid execution and delivery
by GMC and GMC Mexico), will be the legal, valid, and binding obligations of Magellan and Magellan Mexico enforceable against each
of them in accordance with their terms. The execution, delivery and performance of this Agreement will not violate any provision
of Law; any order of any court or other agency of government; or any provision of any indenture, agreement or other instrument
to which either Magellan or Magellan Mexico is a party or by which its properties or assets are bound; or be in conflict with,
result in a breach of or constitute (with due notice and lapse of time) a default under any such indenture, agreement or other
instrument. There is no judgment, decree or order of any court or governmental authority binding on either Magellan or Magellan
Mexico which would be contravened by the execution, delivery, performance or enforcement of this Agreement or any instrument or
agreement required hereunder. Notwithstanding the foregoing, no representation is made as to (i) the availability of equitable
remedies for the enforcement of this Agreement or any other agreement contemplated hereby or (ii) rights to indemnity under
this Agreement for securities law liability. Additionally, this representation is limited by applicable bankruptcy, insolvency,
moratorium, and other similar laws affecting generally the rights and remedies of creditors and secured parties.

 

 

 

    	 	8	 

     

    

 

(d)            
Brokerage or Finder’s Fee. All negotiations relative to this Agreement and the transactions contemplated hereby
have been carried on by Magellan and Magellan Mexico in such manner as not to give rise to any valid claim against GMC or GMC Mexico
or any third party for a brokerage commission, finder’s fee or other fee or commission arising by reason of the transactions
contemplated by this Agreement.

 

ARTICLE
7

NOTICES

 

7.1           
Notices. All notices given under this Agreement shall be in writing, and all such notices and deliveries to be made
pursuant hereto shall be given or made in person, by reputable overnight courier, or by email acknowledged upon receipt. Such notices
and deliveries shall be deemed to have been duly given and received when actually delivered in person or confirmed as received
by email (during normal business hours), or on the next Business Day following the date they are sent by courier, addressed as
follows:

 

(a)            
If to GMC or GMC Mexico:

Golden Minerals Company

350 Indiana Street, Suite 800

Golden, CO 80401

Attention: Warren Rehn

Email: warren.rehn@goldenminerals.com

Telephone No.: (303) 839-5060

 

(b)            
If to Magellan or Magellan Mexico:

Magellan Gold Corporation

4709 Millrace Lane

Salt Lake City, UT 84107Attention: David E. Drips

Email: dedrips@msn.com

Telephone No.: (385) 227-7272

 

ARTICLE
8

INDEMNIFICATION

 

8.1           
By GMC and GMC Mexico. GMC and GMC Mexico agree to defend, indemnify and hold harmless Magellan and Magellan Mexico,
and their respective successors, assigns, Affiliates, officers and directors from and against any and all claims, actions, suits,
losses, liabilities, damages, assessments, judgments, costs and expenses, including reasonable attorneys’ fees, arising out
of or related to (a) any breach by GMC or GMC Mexico of any representation, covenant or warranty set forth herein, and (b) any
activities conducted by GMC or GMC Mexico on or in connection with the Property prior to the Effective Date.

 

8.2           
By Magellan and Magellan Mexico. Magellan and Magellan Mexico agree to defend, indemnify and hold harmless GMC and
GMC Mexico, and their respective successors, assigns, Affiliates, officers and directors from and against any and all claims, actions,
suits, losses, liabilities, damages, assessments, judgments, costs and expenses, including reasonable attorneys’ fees, arising
out of or related to (a) any breach by Magellan or Magellan Mexico of any representation, covenant or warranty set forth herein,
or (b) any activities conducted by Magellan Mexico or any third party on Magellan Mexico’s behalf on or in connection
with the Property from and after the Effective Date and (c) any Environmental Liabilities associated with activities conducted
by Magellan Mexico or any third party on Magellan Mexico’s behalf on the Property from and after the Effective Date.

 

 

 

    	 	9	 

     

    

 

8.3           
Notification. Either Party who has a claim giving rise to indemnification liability pursuant to this Agreement (an
“Indemnified Party”), which results from a claim by a third party or otherwise, shall give prompt notice to the other
Party (the “Indemnifying Party”) of such claim, together with a reasonable description thereof. Failure to provide
such notice shall not relieve a Party of any of its indemnification obligations hereunder except to the extent materially prejudiced
thereby. With respect to any claim by a third party against any Party to this Agreement which is subject to indemnification under
this Agreement, the Indemnifying Party shall be afforded the opportunity, at its expense, to defend or settle the claim if it utilizes
counsel reasonably satisfactory to the Indemnified Party, and promptly commences the defense of such claim and pursues such defense
with diligence; provided, however, that the Indemnifying Party shall secure the consent of the Indemnified Party to any
settlement, which consent shall not be unreasonably withheld. The Indemnified Party may participate in the defense of any claim
at its expense, and until the Indemnifying Party has agreed to defend such claim, the Indemnified Party may file any motion, answer
or other pleading or take such other action as it deems appropriate to protect its interests or those of the Indemnifying Party.
If an Indemnifying Party does not elect to contest any third-party claim, the Indemnifying Party shall be bound by the results
obtained with respect thereto by the Indemnified Party, including any settlement of such claim.

 

ARTICLE
9

TERM AND TERMINATION

 

9.1           
Term and Termination. This Agreement will remain in effect during the Option Period, after which (if Magellan Mexico
does not exercise the Option) it will terminate automatically, unless it is sooner terminated as a result of the exercise of the
Option by Magellan Mexico or pursuant to the provisions of this Article 9. If Magellan Mexico exercises the Option, this Agreement
will remain in effect during the Development Period. At the end of the Development Period, if Magellan Mexico has achieved Commercial
Production as set forth in Section 2.1, this Agreement shall remain in full force and effect; if not, as set forth in Section 2.3,
this Agreement shall terminate and the provisions of Section 9.2 shall apply.

 

9.2           
Termination by Magellan. Magellan shall have the right to terminate, surrender and relinquish this Agreement at any
time during the Option Period or the Development Period, by giving written notice to GMC of such election. Any termination by Magellan
pursuant to this Section 9.2 will be effective upon receipt of such notice by GMC. Upon termination of this Agreement pursuant
to this Section 9.2, Magellan and Magellan Mexico shall have no further liabilities or obligations under this Agreement or
with respect to the Property, except for the obligations set forth in Sections 4.2, 4.4, 4.7, 4.8, 8.2, 8.3, this Section 9.2,
9.4, 9.5 and 9.6, as well as any accrued production royalty payment obligations under the NSR Agreement, and GMC and GMC Mexico
shall have no further liabilities or obligations under this Agreement, except for the obligations set forth in Sections 8.1,
8.2, this Section 9.2, and 9.4. In addition, Magellan Mexico shall be responsible for paying any fees required to maintain
the Concessions in good standing for a period of 90 days after the effective date of such termination, and any option or other
payments owed to the counterparties to the Exploration Agreements within 90 days after the effective date of such termination.
In the event of termination of this Agreement under this Section 9.2, GMC shall have no obligation to return the Initial
Payment or any other portions of the Purchase Price that have been paid by Magellan Mexico, and the Parties agree that those payments
will constitute the consideration for the granting of the Option. The provisions of Article 14 of this Agreement shall survive
such termination.

 

9.3           
Termination by GMC. In the event of a default under this Agreement on the part of Magellan or Magellan Mexico, GMC
shall give to Magellan written notice specifying the particular default or defaults asserted, and, in the case of a default other
than with respect to the payment of money, Magellan shall have 30 days after the receipt of said notice within which to either
cure such specified defaults, or to undertake diligent efforts to cure the same. In the event of such a cure (or the commencement
of diligent efforts to cure) by Magellan, this Agreement shall continue in full force and effect as though no default had occurred.
In the event such curative action is not so completed or diligent efforts to cure such defaults are not undertaken within the applicable
30-day period and thereafter diligently pursued to completion, GMC may elect to terminate this Agreement by notice to Magellan
as provided in Section 7.1. In the case of a default by Magellan relating to the payment of any funds to GMC, or any third
party as required hereunder, Magellan shall have 10 days after receipt of notice of such default to rectify the same, failing
which GMC may elect to terminate this Agreement by written notice to Magellan as provided in Section 7.1. Upon termination
of this Agreement pursuant to this Section 9.3, Magellan and Magellan Mexico shall have no further liabilities or obligations
under this Agreement or with respect to the Property, except for the obligations set forth in Sections 4.2, 4.4, 4.7, 4.8,
8.2, 8.3, this Section 9.3, 9.4, 9.5 and 9.6, and GMC and GMC Mexico shall have no further liability or obligations under
this Agreement, except for the obligations set forth in Sections 8.1, 8.2, this Section 9.3 and 9.4. In addition, Magellan
Mexico shall be responsible for paying any fees required to maintain the Concessions in good standing for a period of 90 days after
the effective date of such termination, and any option or other payments owed to the counterparties to the Exploration Agreements
within 90 days after the effective date of such termination. In the event of termination of this Agreement under this Section
9.2, GMC shall have no obligation to return the Initial Payment or any other portions of the Purchase Price that have been
paid by Magellan Mexico, and the Parties agree that those payments will constitute the consideration for the granting of the Option.
The provisions of Article 14 of this Agreement shall survive such termination.

 

 

 

    	 	10	 

     

    

 

9.4           
Return of Data. As soon as practicable upon the termination of this Agreement, if Magellan Mexico has not exercised
the Option and timely paid the Purchase Price in full, Magellan shall return to GMC copies of all title, environmental, metallurgical,
geological, geophysical, milling and other data pertaining to the Property and furnished to Magellan by GMC. At such time, Magellan
shall make available to GMC for examination and copying all information relating to title to the Property or environmental conditions
at or pertaining to the Property, and all maps, assays, surveys drill logs, samples, mine, mill, processing and smelter records,
and metallurgical, geological, geophysical, geochemical and engineering data and interpretive reports derived therefrom, developed
by Magellan with respect to the Property during the Option Period or the Development Period.

 

9.5           
Release. Upon termination of this Agreement during the Option Period or the Development Period, if GMC Mexico has
not exercised the Option and timely paid the Purchase Price in full, Magellan Mexico will, at the written request of GMC, provide
GMC Mexico with a written release, in the nature of a quitclaim deed or similar document in recordable form, of its rights hereunder
with respect to the Property (including any interests in real property within the Area of Interest which become a part of the Property
pursuant to Section 11.1).

 

9.6           
Surrender of Possession and Removal of Equipment. Upon termination of this Agreement, if Magellan Mexico has not
exercised the Option and timely paid the Purchase Price in full, Magellan Mexico shall surrender possession of the Property, subject
to the condition that Magellan Mexico shall have the right at any time within one year after such surrender or termination of this
Agreement to complete any reclamation obligations required of it pursuant to Section 4.8 and remove all Magellan Mexico owned
tools, equipment, machinery, supplies, fixtures, buildings, structures and other property erected or placed on such property by
Magellan Mexico, excepting only timber, chutes and ladders in place for underground support and entry. Title to such property not
removed within the time period set forth above shall, at the election of GMC Mexico, pass to GMC Mexico. Alternatively, at the
end of the time period set forth above, GMC Mexico may remove any such property from the Property and dispose of the same in a
commercially reasonable manner, all at the expense of Magellan.

 

ARTICLE
10

ADDITIONAL AGREEMENT

 

10.1        
Mexican Subsidiaries. All of the rights and obligations of the Parties in connection with the Property and all operations
related thereto shall be subject to and governed by this Agreement and by the Subsidiary Agreement (as defined below), as well
as the Mexican Mining Law and its Regulations, as applicable. As soon as is reasonably practicable after the Effective Date, Magellan
and GMC agree to cause Magellan Mexico and GMC Mexico, respectively, to (a) execute and deliver a Spanish-language purchase
option agreement substantially similar in form and substance to this Agreement, modified as mutually agreed to by the Parties (the
“Subsidiary Agreement”), and (b) execute and deliver other instruments, contracts and documents, and to take such
other measures as may be necessary to accomplish the objectives of this Agreement, including making such modifications to this
Agreement in the Subsidiary Agreement as may be reasonably recommended by Mexican counsel for GMC and Magellan, respectively. To
the extent necessary to enforce its rights under this Agreement, in addition to any other legal or equitable remedies available
to it, each of the Parties shall have the remedy of specific performance to compel the other to cause its Mexican subsidiary to
take any actions contemplated under this Section 10.1.

 

ARTICLE
11

TITLE TO AFTER-ACQUIRED INTERESTS

 

11.1        
(a)After-Acquired Property. This Agreement applies and extends to any further or additional right, title, interest
or estate heretofore or hereafter acquired by Magellan Mexico or any Affiliate in or to the Property or any part thereof. In the
event Magellan Mexico acquires such right, title, interest or estate, Magellan Mexico will promptly notify GMC Mexico, and such
interest shall become a portion of the Property for all intents and purposes under this Agreement.

 

(b)            
Acquisitions Within the Area of Interest.

 

(i)             
If at any time from and after the Effective Date Magellan Mexico (or any affiliate thereof) acquires any interest in any
real property (including concessions and surface rights) within the Area of Interest, Magellan shall promptly notify GMC, and such
real property interest shall become a part of the Property under this Agreement (except for purposes of the representations and
warranties under Article 4), and under the NSR Agreement.

 

 

 

    	 	11	 

     

    

 

(ii)           
From and after the Effective Date through the end of the Development Period, neither GMC Mexico nor any affiliate thereof
shall acquire any interest in any real property within the Area of Interest without the prior written consent of Magellan Mexico.
If GMC Mexico receives such written consent and acquires such real property interest, then thereafter Magellan Mexico shall have
a right of first refusal to acquire such interest as set forth in Exhibit C.

 

ARTICLE
12

ENTIRE AGREEMENT/AMENDMENT

 

12.1        
Entire Agreement. This Agreement is the complete expression of all agreements, contracts, covenants, and promises
between the Parties, and all negotiations, understandings, and agreements between the Parties are set forth in this Agreement,
which solely and completely expresses their understanding, and shall be construed without reference to any such negotiations, understandings
and agreements.

 

12.2        
Amendments. This Agreement may not be amended or modified, nor may any obligation hereunder be waived, except by
writing duly executed on behalf of all Parties, and unless otherwise specifically provided in such writing, any amendment, modification,
or waiver shall be effective only in the specific instance and for the purpose it is given.

 

ARTICLE
13

FORCE MAJEURE

 

13.1        
Effect of Occurrence. In the event Magellan Mexico is rendered unable, wholly or in part, by force majeure applying
to it, to timely achieve Commercial Production during the Development Period, it is agreed that such obligation of Magellan Mexico,
so far as it is affected by such force majeure, shall be suspended during the continuance of any inability so caused, but for no
longer period; that the various periods and terms provided for herein shall be extended for a period equivalent to such period
of force majeure; and that such cause shall, so far as possible, be remedied with all reasonable dispatch. Magellan will promptly
notify GMC of the commencement and termination of any event of force majeure. Under no circumstances shall the Development Period
be extended by more than 180 days as the result of an event of force majeure.

 

13.2        
Definition of Force Majeure. The term “force majeure,” as employed herein, shall mean acts of God, strikes,
lockouts or other industrial disturbances, unavoidable accidents, uncontrollable delays in transportation, inability to obtain
necessary materials in the open market, any state or federal laws, regulations or requirements (expressly including inability to
obtain, within timeframes reasonably to be expected, after diligent efforts, necessary governmental approvals, licenses and permits
on terms reasonably acceptable to GMC Mexico or the imposition of material new requirements for approvals, licenses or permits
that did not exist on the Effective Date), actions taken by ejido groups, environmental groups, or other non-governmental organizations,
criminal activities, political instability, or other matters beyond the reasonable control of Magellan Mexico, whether similar
to matters herein specifically enumerated or not; provided, however, that performance shall be resumed within a reasonable
period of time after such cause has been removed.

 

ARTICLE
14

GENERAL PROVISIONS

 

14.1        
Governing Law. Except for matters of title to the Properties or their Transfer, or compliance with Mexican Mining
Law requirements, which shall be governed by the law of their situs, this Agreement, and the rights and liabilities of the Parties
hereunder, shall be governed by and construed in accordance with the Laws of the State of Colorado, other than its rules as to
conflicts of law to the extent the same would result in the imposition of the Laws of some other jurisdiction. Each Party irrevocably
waives any immunity in respect of its obligations under this Agreement that it may acquire from the jurisdiction of any court or
any legal process for any reason including the service of notice, attachment before judgment, attachment in aid of execution or
execution.

 

14.2        
Parties in Interest; Assignment. All of the terms and provisions of this Agreement shall be binding upon and inure
to the benefit of and be enforceable by the respective Parties hereto and their successors and permitted assigns. The rights, powers,
privileges, and interests hereunder shall not be Transferred or delegated by either Party to any third party without the prior
written consent of the other Party, except that no such consent shall be required (a) for an assignment to an Affiliate (provided
that the assigning Party shall remain responsible for all of its obligations and liabilities hereunder), (b) in connection with
a pledge of a Party’s interest in connection with obtaining financing to fund its obligations under this Agreement, (c) in
connection with a Change of Control of either Party, or (d) in connection with a sale of all or substantially all of a Party’s
assets. Any consent required under this Section 14.2 shall not be unreasonably withheld. Any Affiliate or third party to whom any
rights, powers, privileges or interests hereunder are assigned shall agree in writing to be bound by all the terms and conditions
of this Agreement. Notwithstanding the foregoing, GMC Mexico may Transfer all or any part of its interest in the NSR Agreement
without the consent of Magellan or Magellan Mexico.

 

 

 

    	 	12	 

     

    

 

14.3        
Other Business Opportunities. This Agreement is, and the rights and obligations of the Parties are, strictly limited
to the matters set forth herein. Subject to the provisions of Article 11 relating to after-acquired title, each of the Parties
shall have the free and unrestricted right to independently engage in and receive the full benefits of any and all business ventures
of any sort whatever, whether or not competitive with the matters contemplated hereby, without consulting the other or inviting
or allowing the other to participate therein. The doctrines of “corporate opportunity” or “business opportunity”
shall not be applied to any other activity, venture, or operation of either Party, whether adjacent to, nearby, or removed from
the Property, and neither Party shall have any obligation to the other with respect to any opportunity to acquire any interest
in any property outside the Property at any time, or within the Property after termination of this Agreement, regardless of whether
the incentive or opportunity of a Party to acquire any such property interest may be based, in whole or in part, upon information
learned during the course of operations or activities hereunder.

 

14.4        
No Partnership. Nothing contained in this Agreement shall be deemed to constitute either Party the partner of the
other, nor, except as otherwise herein expressly provided, to constitute either Party the agent or legal representative of the
other, nor to create any fiduciary relationship between them. It is not the intention of the Parties to create, nor shall this
Agreement be construed to create, any mining, commercial, tax or other partnership. Neither Party shall have any authority to act
for or to assume any obligation or responsibility on behalf of the other Party, except as otherwise expressly provided herein.

 

14.5        
Confidentiality. Except as set forth in Section 14.6, the Parties hereto agree to treat all data, reports, records
and other information developed or made available to them by the other Party under this Agreement and applicable to the Property
as confidential, and unless either Party is required by any Law or order to disclose any of such information, such information
shall not be disclosed to any person without the prior written consent of the non-disclosing Party.

 

14.6        
Public Announcements. Disclosure of information relating to this Agreement or the Property may be made by either
Party if such information is required to be disclosed to any federal, state or local government or appropriate agencies and departments
thereof or if such information is required by Law, stock exchange rule or regulation to be publicly announced. Each of Magellan
and GMC agrees that it will, not less than two Business Days in advance of making public any information referred to in the preceding
sentence, give the other Party written notice of the text of the proposed disclosure and provide that Party with the opportunity
to comment before the same is issued. The Party receiving the notice shall respond within two Business Days of receipt of such
notice, or its silence will constitute a waiver of any objection to the terms of the proposed disclosure.

 

14.7        
Waiver; Amendment. Any of the terms or conditions of this Agreement may be waived at any time by the Party which
is entitled to the benefit thereof, but no such waiver shall affect or impair the right of the waiving Party to require observance,
performance, or satisfaction of any other term or condition hereof. Any of the terms of provisions of this Agreement may be amended
or modified at any time by agreement in writing.

 

14.8        
Severability. In the event that any one or more of the provisions contained in this Agreement or in any other instrument
or agreement contemplated hereby shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision of this Agreement or any such other instrument or agreement.

 

14.9        
Attorneys’ Fees. In the event of any controversy, claim, or dispute between the Parties hereto, arising out
of or relating to this Agreement or the breach thereof, the prevailing Party shall be entitled to recover from the losing Party
reasonable expenses, attorneys’ fees, and costs.

 

14.10    
Further Documents. At the request of either Party, the Parties shall execute and deliver any further instruments,
agreements, documents or other papers reasonably requested by either Party to effect the purposes of this Agreement and the transactions
contemplated hereby.

 

14.11    
Dispute Resolution. The Parties hereby agree that any dispute arising under this Agreement shall be subject to the
informal dispute resolution procedure set forth in this Section 14.11. The Party asserting the existence of a dispute as to
the interpretation of any provision of this Agreement or the performance by the other Party of any of its obligations hereunder
shall notify the other Party of the nature of the asserted dispute. Within seven Business Days of receipt of such notice, Warren
Rehn (for GMC) and David E. Drips (for Magellan), or their designees, shall arrange for a personal or telephone conference in which
they use good faith efforts to resolve such dispute. If those individuals are unable to resolve the dispute, they shall jointly
prepare and, within seven Business Days after their conference, circulate to a designated director of GMC and a designated director
of Magellan a memorandum outlining in reasonable detail the nature of the dispute. Within five Business Days after receipt of that
memorandum, the individuals to whom that memorandum was addressed shall arrange for a personal or telephone conference in which
they attempt to resolve such dispute. If those individuals are unable to resolve the dispute, either Party may proceed with any
legal remedy available to it; provided, however, that the Parties agree that any statement made as to the subject matter
of the dispute in any of the conferences referred to in this Section 14.11 shall not be used in any legal proceeding against
the Party that made such statement.

 

 

 

    	 	13	 

     

    

 

14.12    
Interpretation. In this Agreement, the word “including” shall mean “including without limitation,”
or “including but not limited to,” and the words “herein” and “hereunder” shall be a reference
to the entire Agreement and not just the paragraph in which the words appear. Any reference to “either Party” or the
“other Party” in this Agreement shall mean Magellan and Magellan Mexico, collectively, or GMC and GMC Mexico, collectively,
as the context requires. With respect to any representation or warranty made hereunder to a Party’s knowledge, “knowledge”
for those purposes means to the actual knowledge of the corporate officers of that Party, without independent inquiry.

 

14.13    
Headings. The subject headings of the different Sections of this Agreement and the Paragraphs and Subparagraphs of
the Exhibits to this Agreement are included for purposes of convenience only, and shall not affect the construction or interpretation
of any of its provisions.

 

14.14    
Counterparts. This Agreement may be executed in multiple counterparts, by electronic signatures, and all such counterparts
taken together shall be deemed to constitute one and the same document.

 

 

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Option to Purchase Agreement to be duly executed, delivered, and effective as of the Effective
Date.

 

	 	 MAGELLAN GOLD CORPORATION,

a Nevada corporation

 

By:__________________

Name:________________ 

Title: _________________

 

GOLDEN MINERALS COMPANY,

a Delaware corporation

 

By:__________________

Name:________________ 

Title: _________________

 

 

 

 

 

    	 	15	 

     

    

 

EXHIBIT A-1

Concessions

 

Part A

 

Contract of Mining Exploration and of Promise of Assignment
of Rights and Obligations by and between Mr. Jose Alfredo Cervantes Rivera his wife, Ms. Claudia Guadalupe Peralta Alcaraz and
Minera de Cordilleras, S. de R.L. de C.V., dated August 4, 2017.

 

	Matamoros, Chihuahua Area	Title/Concession #	Year Concession Awarded	Year Concession Expires	Concession Area (Hectares)
	Maria	226591	02/01/2006	02/01/2056	10.84
	Martia III	231703	04/14/2008	04/14/2058	41.97
	Maria II Frac. I	230200	07/30/2007	07/30/2057	24.33

 

 

Part B

 

Contratos de Exploración de Minera Con Derecho a Explotación
de Minerales y de Promesa de Cesión de Derechos by and between Joaquin Rolando Chavez Gonzalez and Minera de Cordilleras,
S. de R.L. de C.V., dated November 9, 2018.

 

	Santa Barbara, Chihuahua Area	Title/Concession #	Year Concession Awarded	Year Concession Expires	Concession Area (Hectares)
	Santa Maria	216532	05/16/2002	05/16/2052	17.97
	Punto Com	228022	09/28/2006	09/28/2056	5.96

 

 

Note:

 

Prior written consent must be obtained from Mr. Jose Cervantes
for an assignment of the contract described in Part A above.

 

Post-Closing notice must be provided to Mr. Joaquin Chavez following
an assignment of the contract described in Part B above.

 

 

 

 

 

    	 	A-1-1	 

     

    

Exhibit A-2

 

Ancillary Rights

 

		1.	Manifestación de Impacto Ambiental, modalidad Particular for the Santa Maria project, Oficio No. SG.IR.08-2017-091,
dated March 10, 2017

 

		2.	Notificación respecto al Informe Preventivo for the Exploración Minera Santa María project, dated June
7, 2017, Oficio No. SG.IR.08-2017/163

 

		3.	Access Agreement (via Joaquin Chavez) with Ranch Owner, Ramon Galindo dated October 14, 2016

 

 

 

    	 	A-2-1	 

     

    

 

Exhibit A-3

 

Royalty Interests

 

		1.	Net smelter returns royalty pursuant to the Marias Assignment of Rights Agreement described in Part A of Exhibit A-1.

 

 

 

 

 

 

 

 

 

 

    	 	A-3-2	 

     

    

 

EXHIBIT B

NSR Agreement

 

ROYALTY AGREEMENT

 

THIS ROYALTY AGREEMENT
(the “Royalty Agreement”) is made and entered into as of this day of _______, 20__ (the “Effective Date”),
by and between Recursos Ecologicos Alternativos la Rumorosa (REA) S.A. de C.V, a ____________________ (“Payor”), whose
address is _________________________‌_____________, and Minera de Cordilleras S. de R.L. de C.V. (“Payee”), a
__________________, whose address is __________________________________________.

 

WITNESSETH

 

A.             
Payor and Payee, along with their ultimate corporate parents, Magellan Gold Corporation and Golden Minerals Company, respectively,
are parties to that Option to Purchase Agreement dated October 15, 2019 (the “Option Agreement”), as well as the
Spanish language Subsidiary Agreement referred to in the Option Agreement.

 

B.             
Pursuant to the terms and conditions of the Option Agreement and the Subsidiary Agreement, Payor has the option (the “Option”)
to acquire Payee’s interest in the Concessions (as defined in Section 1.1 below), which Payee holds pursuant to two
separate Exploration Agreements described in the attached Schedule A (the “Exploration Agreements”).

 

C.             
If Payor exercises the Option, it has agreed under the Option Agreement and the Subsidiary Agreement to achieve Commercial
Production (as defined in the Option Agreement) from the Concessions with one-year following the Closing Date under the Option
Agreement, and upon exercise of the Option, Payor has agreed to pay the Royalty (as defined below) to Payee.

 

NOW, THEREFORE, for
and in consideration of the mutual premises and covenants herein contained, and other good and valuable consideration, the receipt
and sufficiency of which are hereby confessed and acknowledged, Payor, so long as it is the operator or owner of, or otherwise
holds an interest in, the Concessions (as defined below), hereby agrees on behalf of itself and its successors and assigns to pay
to Payee a Royalty of six and one-half percent (6.5%) of the Net Smelter Returns from the production of Valuable Minerals (as defined
below) from the Concessions, to be reduced to 3.0 percent of the Net Smelter Returns as described herein.

 

Article
I

 

THE CONCESSIONS

 

1.1       The
Concessions. The “Concessions” are the concessions which together comprise the Santa Maria Mine in the State of
Chihuahua, Mexico, as more particularly described in Schedule A attached hereto and incorporated herein by reference.

 

Article
II

GRANT OF ROYALTY

 

2.1       Grant
of Royalty. Payor hereby agrees, on its own behalf and on behalf of its successors and assigns, to pay to Payee a Royalty of
six and one-half percent (6.5%) of the Net Smelter Returns from the production of any and all minerals, mineral deposits, mineral
substances and ores and mineral products of every kind and character whatsoever derived therefrom (collectively, “Valuable
Minerals”), from the Concessions. That Royalty will automatically be reduced to a Royalty of three percent (3.0%) of Net
Returns upon payment in full by Payor to Payee of the Purchase Price under the Option Agreement. Payor acknowledges and agrees
that if it exercises either or both of the options to purchase the Concessions under the Exploration Agreements, this Royalty Agreement
shall remain in full force and effect.

 

 

 

    	 	B-1	 

     

    

 

2.2       Royalty.
“Royalty” means a production royalty based on the Net Smelter Returns from the production of Valuable Minerals from
the Concessions.

 

2.3       Net
Smelter Returns. “Net Smelter Returns” means the Gross Returns received by Payor from time to time from any smelter,
refiner or other purchaser from the sale of any Valuable Minerals produced by Payor from the Concessions, after deducting from
Gross Returns the Allowable Deductions.

 

(a)       “Gross
Returns” has the following meanings for the following categories of Valuable Minerals:

 

(i)       If
Payor causes refined gold that meets or exceeds the generally accepted commercial standards for refined gold to be produced by
an independent third party refinery from ores mined from the Concessions, for purposes of determining the Royalty, the refined
gold shall be deemed to have been sold in the calendar month in which it was produced at the refinery at the Monthly Average Gold
Price for that month. The Gross Returns from such deemed sales shall be determined by multiplying Gold Production during the month
by the Monthly Average Gold Price. As used herein, “Gold Production” means the quantity of refined gold that is outturned
to Payor’s account by the refinery during the calendar month on either a provisional or final settlement basis. If outturn
of refined gold is made by the refinery on a provisional basis, the Gross Returns shall be based upon the amount of such provisional
settlement, but shall be adjusted in subsequent statements to account for the amount of refined metal established by final settlement
by the refinery. As used herein, “Monthly Average Gold Price” means the average London Bullion Market Association P.M.
Gold Fix as quoted in the Financial Times, calculated by dividing the sum of all such prices reported for the month by the number
of days for which such prices were reported. If the London Bullion Market Association P.M. Gold Fix ceases to be published, the
Monthly Average Gold Price shall be determined by reference to prices for refined gold for immediate delivery in the most nearly
comparable established market selected by Payor as such prices are published in “Metals Week” or a similar publication.

 

(ii)       If
Payor causes refined silver that meets or exceeds the generally accepted commercial standards for refined silver to be produced
by an independent third party refinery from ore mined from the Concessions, for purposes of determining the Production Royalty,
the refined silver shall be deemed to have been sold in the calendar month in which it was produced at the Monthly Average Silver
Price for that month. The Gross Returns from such deemed sales shall be determined by multiplying Silver Production during the
calendar month by the Monthly Average Silver Price. As used herein, “Silver Production” shall mean the quantity of
refined silver that is outturned to Payor’s account by the refinery during the calendar month on either a provisional or
final settlement basis. If outturn of refined silver is made by the refinery on a provisional basis, the Gross Returns shall be
based upon the amount of such provisional settlement, but shall be adjusted in subsequent statements to account for the amount
of refined metal established by final settlement by the refinery. As used herein, “Monthly Average Silver Price” shall
mean the average New York Silver Price as published daily by Handy & Harman, calculated by dividing the sum of all such prices
reported for the calendar month by the number of days for which such prices were reported. If the Handy & Harman quotation
ceases to be published, the Monthly Average Silver Price shall be determined by reference to prices for refined silver for immediate
delivery in the most nearly comparable established market selected by Payor as published in “Metals Week” or a similar
publication.

 

(iii)       If
Payor sells refined metals (other than refined gold and refined silver), doré or concentrates produced from Valuable Minerals
from the Concessions, the Gross Returns for such refined metals shall be the proceeds actually received by Payor from their sale.
If such sales are to an Affiliate, the refined metals, doré, or concentrates shall be deemed, solely for the purpose of
computing Gross Returns, to have been sold at prices and on terms no less favorable to Payor than those which would have been received
under similar circumstances from an unaffiliated third party. As used herein, “Affiliate” means any person, partnership,
limited liability company, joint venture, corporation, or other form of enterprise which Controls, is Controlled by, or is under
common Control with Payor, and “Control” means the ability, directly or indirectly through one or more intermediaries,
to direct or cause the direction of the management and policies of such entity through (A) the legal or beneficial ownership of
voting securities or membership interests; (B) the right to appoint managers, directors or corporate management; (C) contract;
(D) operating agreement; (E) voting trust; or (F) otherwise.

 

 

 

    	 	B-2	 

     

    

 

(b)       As
used herein, “Allowable Deductions” means the following costs, charges, and expenses incurred or accrued by Payor:

 

(i)       If
Payor sells or is deemed to have sold refined gold or refined silver:

 

(A)       all
costs, charges and expenses for smelting and refining doré or concentrates to produce the refined gold or refined silver
(including handling, processing, and provisional settlement fees, metal losses, sampling, assaying and representation costs, penalties,
and other processor deductions);

 

(B)       all
costs, charges, and expenses for weighing, sampling, determining moisture content and packaging such Valuable Minerals and for
loading and transportation of ores, minerals, doré or concentrates from the Concessions to the refinery or smelter and then
to the place of sale (including freight, insurance, security, transaction taxes, handling, port, demurrage, delay, and forwarding
expenses incurred by reason of or in the course of such transportation); and

 

(C)       actual
sales and brokerage costs incurred by Payor.

 

(ii)       If
Payor sells refined metals (other than refined gold or refined silver), doré, concentrate or ores:

 

(A)       all
costs, charges, and expenses for (I) beneficiation, processing or treatment of such materials at any plant or facility not owned
by Payor and (II) smelting or refining to produce a refined metal (including handling, processing, and provisional settlement fees,
sampling, assaying and representation costs, penalties, and other processor deductions);

 

(B)       all
costs, charges, and expenses for weighing, sampling, determining moisture content and packaging such Valuable Minerals and for
loading and transportation of ores, minerals, doré, concentrates or other products from the Concessions (I) to the place
of sale, or (II) if such ores or other materials are beneficiated, processed, treated, smelted or refined at any plant or facility
more than five (5) miles from the exterior boundary of the Concessions, to such plant of facility and then to the place of sale
(including freight, insurance, security, transaction taxes, handling, port, demurrage, delay, and forwarding expenses incurred
by reason of or in the course of such transportation); and

 

(C)       actual
sales and brokerage costs.

 

(iii)       All
royalties payable to any governmental agency and all sales, use, severance and ad valorem taxes and any other tax or governmental
levy or fee on or measured by mineral production or the movement of material from or on the Concessions (other than taxes based
on income).

 

2.4       Hedging.
Payor may, but shall not be under any duty to, engage in price protection (hedging) or speculative transactions such as futures
contracts and commodity options (collectively, “Hedging Transactions”) in its sole discretion covering all or part
of production of Valuable Minerals from the Concessions. None of the revenues, costs, profits or losses from such transactions
shall be taken into account in calculating Net Smelter Returns or any interest therein. For purposes of calculating Net Smelter
Returns in the event that, in connection with any Hedging Transactions, Payor elects not to sell any portion of any gold and/or
silver extracted and produced from the Concessions, but instead elects to have the final product of any such gold and/or silver
credited to or held for its account with any smelter, refiner or broker, such gold and/or silver shall be deemed to have been sold
at the “Quoted Price” on the day such gold and/or silver is actually credited to or placed in Payor’s account.
For purposes of determining the Royalty payable on gold and/or silver produced and sold in such circumstances, the “Quoted
Price” shall be (for gold) the London P.M. fix (or the London A.M. fix on days when there is no London P.M. fix) as quoted
in the Financial Times (or such other source as is mutually agreeable if that information is not available from the Financial Times),
and (for silver) the New York Silver Price as quoted by Handy & Harman (or such other source as is mutually agreeable if that
information is not available from Handy & Harman ), in each case on the business day such gold and/or silver is actually credited
for or placed in Payor’s account.

 

 

    	 	B-3	 

     

    

 

2.5       Tailing
and Residues. All tailing, residues, waste rock, spoiled leach materials, and other materials (collectively “Materials”)
resulting from Payor’s operations and activities on the Concessions shall be the sole property of Payor, but shall remain
subject to the Royalty should the same be processed or reprocessed, as the case may be, in the future and result in the production
of Valuable Minerals. Notwithstanding the foregoing, Payor shall have the right to dispose of Materials from the Concessions as
waste in accordance with standard industry practice.

 

2.6       Commingling.
Payor shall have the right of mixing or commingling, either underground, at the surface, or at processing plants or other treatment
facilities, any material containing Valuable Minerals mined or extracted from the Concessions with any similar substances derived
from other lands or properties; provided, however, that before commingling, Payor shall calculate from representative samples
the average grade of the ore from the Concessions and shall either weigh or volumetrically calculate the number of tons of ore
from the Concessions to be commingled. As products are produced from the commingled ores, Payor shall calculate from representative
samples the average percentage recovery of products produced from the commingled ores during each month. In obtaining representative
samples, calculating the average grade of commingled ores and average percentage of recovery, Payor shall be entitled to use any
procedures acceptable in the mining and metallurgical industry which Payor believes to be accurate and cost-effective for the type
of mining and processing activity being conducted. In addition, comparable procedures may be used by Payor to apportion among the
commingled ores any penalty charges imposed by the smelter or refiner on commingled ores or concentrates. The records relating
to commingled ores shall be available for inspection by Payee, at its sole expense, at all reasonable times, and shall be retained
by Payor for a period of two (2) years.

 

2.7       Assaying
and Sampling. The mineral content of all ore mined and removed from the Concessions (excluding ore leached in place) and the
quantities of constituents recovered by Payor shall be determined by Payor, or with respect to such ore which is sold, by the mill
or smelter to which the ore is sold, in accordance with standard sampling and analysis procedures.

 

2.8       Payment
of Royalty. Payor shall pay the Royalty to Payee monthly within thirty (30) days after the end of each calendar month during
which the Payor receives payments on any Minerals produced and sold from the Concessions and the Royalty will be paid in United
States currency. All payments hereunder shall be sent by certified U.S. mail to Payee at the following address:

 

_______________ 

_______________

_______________ 

 

or by wire transfer to an account designated by and in accordance with written instructions
from Payee, or consistent with such notice as is to be provided by any successor or assignee of Payee.

 

2.9       Audit.
Payee, at its sole election and expense, shall have the right to procure, not more frequently than once annually following the
close of each calendar year, an audit of Payor’s accounts relating to payment of the Royalty hereunder, by any qualified
authorized representative of Payee. Any such inspection shall be for a reasonable length of time, during regular business hours,
at a mutually convenient time, and upon reasonable advance written notice to Payor. All Royalty payments made in any calendar year
shall be considered final and in full satisfaction of all obligations of Payor with respect thereto, unless Payee gives written
notice describing and setting forth a specific objection to the calculation thereof within nine months following the close of that
calendar year. Payor shall account for any agreed upon deficit or excess in the payment made to Payee by adjusting the next quarterly
statement following completion of such audit to account for such deficit or excess. Subject to Payor’s right to contest the
results of any such audit, if such audit reveals that payments of the Royalty for any calendar year were underpaid by five percent
(5%) or more, then Payor shall reimburse Payee for any costs and reasonable fees paid to outside accountants in performing the
audit.

 

2.10       Covenant
Running with the Land. The obligation to pay the Royalty shall be a covenant running with the Concessions or any relocations
or amendments thereof and shall be binding on the Payor and its successors and assigns, including any third party to whom Payor
conveys any interest in the Concessions.

 

 

 

    	 	B-4	 

     

    

 

2.11       Conduct
of Operations. The Payor shall be entitled to (i) make all operational decisions with respect to the methods and extent of
mining and processing of ore, concentrate, doré, metal and products produced from the Concessions (for example, without
limitation, the decision to process by heap leaching rather than conventional milling), (ii) make all decisions relating to sales
of such ore, concentrate, doré, metal and products produced and (iii) make all decisions concerning temporary or long-term
cessation of operations. Payor shall have exclusive control of all operations on or for the benefit of the Concessions, and any
and all equipment, supplies, machinery and other assets purchased or otherwise acquired or under its control in connection with
such operations. Payor may carry out such operations on the Concessions as it may, in its sole discretion, determine to be warranted.
Subject to the provisions of the Option Agreement, if Payor, at any time and from time to time after commencing operations, desires
to shut down, suspend or cease operations for any reason, it shall have the right to do so in its sole discretion. Payor may use
and employ such methods of exploration, development, mining, processing or marketing as it may desire or find most profitable.
Payor shall not be required to mine, preserve, or protect in its mining operations any Valuable Minerals which cannot be mined
or shipped at a reasonable profit to Payor. Any decision as to the time, manner and form in which ores or other Valuable Minerals
are to be sold shall be made by Payor in its sole discretion.

 

2.12       Confidentiality.
Payee agrees to treat, except as set forth below, all information received from or concerning Payor or the Concessions pursuant
to this Royalty Agreement as confidential, and except as set forth below, such information shall not be disclosed to any other
person or entity, without the prior written consent of Payor, which such consent Payor may withhold in its sole discretion. Notwithstanding
the foregoing, Payee may disclose (i) any information Payee is required to disclose by law, regulation or order of any governmental
entity or stock exchange having jurisdiction, and (ii) such information as is otherwise available to the public and has been legally
provided to Payee through other means. In the event that Payee is required by any law, rule, regulation, or order to disclose to
the public any of such information, it shall immediately notify Payor of such requirement and the terms thereof, together with
a copy of such release as may be contemplated, prior to such disclosure. Payor shall then have two business days to review and
comment upon such disclosure and to request, prior to disclosure, confidential treatment of any of the information under such terms
as it shall, in its reasonable discretion, determine. Payee shall use its reasonable best efforts to comply with such request prior
to making the required disclosure.

 

2.13       Governing
Law. This Royalty Agreement shall be governed by the laws of the State of Colorado, U.S.A., other than its rules as to conflicts
of law which would result in the imposition of the laws of some other jurisdiction.

 

2.14Registration.GMC
Mexico may register this Royalty Agreement in the appropriate office of the Mexico Mining Registry and in such other governmental
offices as are necessary to provide notice of GMC Mexico’s rights hereunder, and the parties agree to execute and deliver
such additional documents as may be necessary to accomplish such registration.

 

IN WITNESS WHEREOF, the parties have executed
this Royalty Agreement effective as of the ____ day of _________, 20__.

 

	 	 PAYOR:

 

Recursos Ecologicos Alternativos la Rumorosa (REA) S.A.
de C.V, a ____________________

 

By:_______________

Name:_____________

Title:______________

 

PAYEE:

Minera de Cordilleras S. de R.L. de C.V., a ________________

 

 

 

By:_______________

Name:_____________

Title:______________

 

 

 

 

    	 	B-5	 

     

    

 

 

Schedule “A”

To

Royalty Agreement

 

 

 

 

 

    	 	B-6	 

     

    

 

EXHIBIT C

Right of First Refusal

 

		(a)	Except as otherwise provided in this Agreement, if GMC Mexico (the “Offeror”) desires
to sell, assign, transfer or otherwise dispose of all or any part of GMC Mexico’s interest in any real property within the
Area of Interest to a proposed purchaser (herein called the “Purchaser”) from whom the Offeror shall have received
a bona fide written offer which it is prepared to accept, the Offeror shall first offer (the “Offer”) the same in writing
to Magellan Mexico (the “Offeree”) at the same price and on the same terms as are offered by the Purchaser (subject
to subsections (b) and (c) below). The Offeror shall also provide the Offeree with a copy of the bona fide written offer that it
has received from the Purchaser (subject to any confidentiality restrictions set forth therein).

 

		(b)	Subject to subsection (c) below, if the Offer is accepted by the Offeree, the Offeror shall forthwith
transfer to the Offeree the interest specified, upon the Offeree paying the purchase price, by way of a conveyance document mutually
agreeable to the parties conveying that interest free and clear of all Encumbrances arising by, through and under Offeror, but
otherwise without representations and warranties of any kind. If the Offer is not accepted by the Offeree within thirty (30) days
of receipt of the Offer, then at any time during the further period of sixty (60) days immediately thereafter the Offeror may sell,
assign, transfer or otherwise dispose of to the Purchaser the property interest which is the subject matter of the Offer at the
same or at a higher price but otherwise on substantially the same terms and conditions as the original offer received from the
Purchaser under this paragraph.

 

		(c)	If the offer received by the Offeror from the Purchaser provides for any consideration payable
to the Offeror other than in cash, the Offer shall include the Offeror’s good faith estimate of the cash equivalent of the
non-cash portion of the consideration. If within a period of thirty (30) days of the receipt of the Offer the Offeree notifies
the Offeror in writing that it has accepted the Offer, the Offeror shall be bound to sell the property interest which is the subject
matter of the Offer to the Offeree on the terms of the Offer, including the Offeror’s good faith estimate of the non-cash
consideration. If, however, the Offeree disagrees with the Offeror’s estimate of the cash equivalent of the non-cash consideration,
the Offeree shall so notify the Offeror within fifteen (15) days after receipt of the Offeree’s notice of acceptance, and
the Offeree shall, in such notice, specify what it considers, in good faith, the fair cash equivalent to be and the resulting total
purchase price. If the Offeree so notifies the Offeror, the Offeror will have ten (10) days from receipt of such notice to notify
the Offeree of its acceptance or rejection of the Offeree’s good faith estimate of the cash equivalent of the non-cash consideration.
If the Offeror accepts the Offeree’s estimate within said ten (10) day period then the Offeree shall be deemed to have accepted
the Offer subject to adjustment of the cash equivalent portion thereof to conform to the Offeree’s good faith estimate. If
the Offeror rejects the Offeree’s estimate or fails to respond within said ten (10) day period the cash equivalent of the
non-cash consideration shall be determined by the dispute resolution process as described in Section 14.11 hereof. If the
Offer is not accepted by the Offeree within thirty (30) days following the resolution of the dispute, then at any time during the
further period of sixty (60) days immediately thereafter the Offeror may sell, assign, transfer or otherwise dispose of to the
Purchaser the subject matter of the Offer subject to the conditions set out in subsection (b) above.

 

 

 

 

    	 	C-7EX-10.1

 Exhibit 10.1 

SUPPLY AGREEMENT 
 This
Supply Agreement (this “Agreement”), made and entered into as of October 11, 2019 but deemed to be effective retroactively as of January 1, 2019 (the “Effective Date”) by and among, on the one hand, PGT
Innovations, Inc., together with its direct and indirect subsidiaries (“PGTI”), including PGT Industries, Inc. (“PGT”), CGI Window and Door Holdings, Inc. (“CGI”), CGI Commercial, Inc. (“CGIC”),
WinDoor, Incorporated, and WWS Acquisition LLC (“Western”), and, on the other hand, Cardinal LG Company (“Cardinal LG”) and Cardinal IG Company (“Cardinal IG” and together with Cardinal LG,
“Cardinal”). References to Cardinal IG are limited to its Buckeye, AZ location. PGTI and Cardinal are individually referred to as a “Party” and collectively referred to as the “Parties”. 

RECITALS: 
 A.    PGT
and Cardinal LG are parties to a Supply Agreement, dated December 15, 2014, as amended by a First Amendment to Supply Agreement dated January 1, 2017 (collectively, the “PGT/LG 2014 Supply Agreement”). 

B.    PGT and Cardinal LG are parties to a Supply Agreement, dated September 22, 2017, as amended by a Supplemental
Limited Warranty Letter dated September 22, 2017 (the “PGT/LG 2017 Supply Agreement”). 

C.    Cardinal IG and Western are parties to Supply/Purchase Agreement dated “January 1, 2016 (Amendment
November 1, 2017)” (the “WW/IG Supply Agreement”). 
 AGREEMENT: 

In consideration of the premises stated in the Recitals which are hereby incorporated into this Agreement and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to be legally bound by the terms in this Agreement. 

1.    Purchase and Sale of Products. Purchases of goods by PGTI from Cardinal after the Effective Date will be
under this Agreement and no purchases after the Effective Date will be governed by the PGT/LG 2014 Supply Agreement, the PGT/LG 2017 Supply Agreement or the WW/IG Supply Agreement. Notwithstanding anything to the contrary, with respect to purchase
orders placed by PGTI with Cardinal, only the respective PGTI entity placing the order and the Cardinal entity accepting the order will be bound with respect to such transaction. 

(a)    PGT Door Products. During the Term (as defined below), PGT shall purchase from Cardinal LG
and Cardinal LG shall manufacture for, and sell to, PGT all of PGT’s requirements for the products described on Annex A-1 hereto and all current and future laminated glass components for doors
which Cardinal is capable of manufacturing that include a PVB or Kuraray SG (also known as Trosifol® and formerly sold under the tradenames SentryGlas® and Butacite®) interlayer (collectively, the “PGT Door Products”), subject to PGT’s rights to source the PGT Door
Products from other companies and/or terminate this Agreement before its expiration, in accordance with the express terms hereof. Cardinal LG and PGT may add new or modified products to the PGT Door Products covered by this Agreement by mutual
written agreement. PGT shall have the 

  
 1 

 
right to remove products from the list of PGT Door Products where PGT no longer requires that product for its production processes, by giving Cardinal 90 days prior written notice. PGT further
covenants and agrees that it will not take any action to circumvent its obligations, as expressly set forth herein, to purchase glass components for doors from Cardinal LG and PGT will use its commercially reasonable efforts to require any
transferee of PGT’s door business during the Term to assume PGT’s obligation to purchase glass components for doors from Cardinal LG in order to preserve Cardinal LG’s right to supply such requirements in the same fashion as if no
such transfer had occurred, and Cardinal LG shall promptly consent to any such transfer or assignment of this Agreement to such transferee or assignee, and Cardinal LG shall not unreasonably delay, deny or withhold such consent. 

With respect to all types of glass components for doors other than the PGT Door Products, PGT covenants and agrees that PGT
will include Cardinal in any request for proposal or bidding invitation to supply such components to PGT (except where PGT has a need for any new type of glass component for doors as a result of PGT acquiring another business, or the assets of
another business, and supply agreements covering all of PGT’s requirements for such newly-needed glass components already exist between that acquired business and a supplier other than Cardinal), and where PGT reasonably concludes that Cardinal
has the ability to supply PGT with all of PGT’s requirements for such glass components for doors or a quantity at least equal to an alternative supplier to be engaged by PGT, that fully satisfy PGT’s specifications for such components and
the lead time required by PGT at least as well as an alternative supplier to be engaged by PGT, and at a competitive price through such request for proposal or bidding process, then PGT will not manufacture for itself, or acquire such glass
components from any source other than Cardinal, to the extent of Cardinal’s supply so long as Cardinal is willing and able to timely supply PGT’s requirements for such glass components on the terms of this Agreement provided Cardinal is
able to meet or exceed the respective supply to be internally or externally sourced. 

(b)    Insulating Glass Purchases by Western from Cardinal IG. During the Term of this Agreement,
Cardinal IG agrees to supply and sell insulating glass products to Western at the prices and terms set forth on Annex A-2 hereto. Western agrees to purchase all of its requirements for insulating glass
products (the “Western Products”) from Cardinal IG under the terms set forth in this Agreement, except those products that Cardinal IG is unable to offer due to internal constraints, or not having the intellectual property rights or
technical expertise needed to produce the product, or where Cardinal IG is unable to satisfy Western’s purchase requirements 

(c)    Other Products. During the Term of this Agreement, PGTI may purchase from Cardinal LG and
Cardinal LG may manufacture for and sell to PGTI such other products listed on Annex A-3 at the prices and terms set forth on Annex A-3 hereto
(“Other Products”). 
 (d)    WinDoor and CGI Door Products. During the Term (as
defined below), WinDoor and CGI shall purchase from Cardinal LG and Cardinal LG shall manufacture for, and sell to, WinDoor and CGI all of WinDoor and CGI’s requirements for the products 

  
 2 

 
described on Annex A-4 hereto and all current and future glass components for doors which Cardinal is capable of manufacturing including having the
intellectual property rights and technical expertise necessary to manufacture a given component that include a PVB or Kuraray SG (also known as Trosifol® and formerly sold under the tradenames
SentryGlas® and Butacite®) interlayer (collectively, the “WinDoor and CGI Door Products”), subject to WinDoor and
CGI’s rights to source the WinDoor and CGI Door Products from other companies and/or terminate this Agreement before its expiration, in accordance with the express terms hereof. Cardinal LG and WinDoor and CGI may add new or modified products
to the WinDoor and CGI Door Products covered by this Agreement by mutual written agreement. WinDoor and CGI shall have the right to remove products from the list of WinDoor and CGI Door Products where WinDoor and CGI no longer requires that product
for its production processes, by giving Cardinal 90 days prior written notice. WinDoor and CGI further covenants and agrees that it will not take any action to circumvent its obligations, as expressly set forth herein, to purchase glass components
for doors from Cardinal LG and WinDoor and CGI will use its commercially reasonable efforts to require any transferee of WinDoor and CGI’s door business during the Term to assume WinDoor and CGI’s obligation to purchase glass components
for doors from Cardinal LG in order to preserve Cardinal LG’s right to supply such requirements in the same fashion as if no such transfer had occurred, and Cardinal LG shall promptly consent to any such transfer or assignment of this Agreement
to such transferee or assignee, and Cardinal LG shall not unreasonably delay, deny or withhold such consent. 

(e)    WinDoor and CGI Window Products. During the Term (as defined below), PGTI has the right to
manufacture internally all of the glass requirements for the WinDoor and CGI Window Products. WinDoor and CGI shall purchase from Cardinal LG and Cardinal LG shall manufacture for, and sell to, WinDoor and CGI all of WinDoor and CGI’s
window glass requirements not manufactured internally for the products described on Annex A-5 hereto and all current and future glass components for windows which Cardinal is capable of manufacturing
including having the intellectual property rights and technical expertise necessary to manufacture a given component that include a PVB or Kuraray SG (also known as Trosifol® and formerly sold
under the tradenames SentryGlas® and Butacite®) interlayer (collectively, the “WinDoor and CGI Window Products”),
subject to WinDoor and CGI’s rights to source the WinDoor and CGI Window Products from other companies and/or terminate this Agreement before its expiration, in accordance with the express terms hereof. Cardinal LG and WinDoor and CGI may add
new or modified products to the WinDoor and CGI Window Products covered by this Agreement by mutual written agreement. WinDoor and CGI shall have the right to remove products from the list of WinDoor and CGI Window Products where WinDoor and CGI no
longer requires that product for its production processes, by giving Cardinal 90 days prior written notice. WinDoor and CGI further covenants and agrees that it will not take any action to circumvent its obligations, as expressly set forth herein,
to purchase glass components for windows from Cardinal LG and WinDoor and CGI will use its commercially reasonable efforts to require any transferee of WinDoor and CGI’s window glass business during the Term to assume WinDoor and CGI’s
obligation to purchase glass components for windows from Cardinal LG in order to preserve Cardinal LG’s right to supply such requirements in the same fashion as if no such transfer had occurred, and Cardinal LG shall promptly consent to any
such transfer or assignment of this Agreement to such transferee or assignee, and Cardinal LG shall not unreasonably delay, deny or withhold such consent. 

  
 3 

 2.    Purchase Orders. 

(a)    PGTI shall order Products from Cardinal pursuant to and in accordance with separate PGTI standard
purchase orders or other related documentation (collectively, the “Purchase Orders”). Such Purchase Orders shall specify quantities of the Products, shipping instructions, delivery date(s), and detailed instructions for the delivery
of the Products (with release schedules, delivery orders or equivalent notices) and no other terms or conditions. Upon a Purchase Order being executed, or acceptance thereof confirmed electronically, by the Parties, the provisions of such Purchase
Order respecting quantities of the Products, shipping instructions, delivery date(s), and detailed instructions for the delivery of the Products (with release schedules, delivery orders or equivalent notices) shall be binding upon Cardinal and PGTI,
and shall be deemed to constitute a part of this Agreement as if fully set forth herein. 

(b)    Cardinal will accept and confirm, or reject, each Purchase Order in writing to PGTI within two
business days of receipt of the Purchase Order from PGTI. 
 (c)    Products shipped to PGTI that exceed
the quantity indicated in an accepted Purchase Order by more than five percent may be returned to Cardinal by PGTI at Cardinal’s cost and expense. 

(d)    No term or condition of any Purchase Order submitted by PGTI that contradicts or is inconsistent
with this Agreement, or creates additional or new duties and obligations for Cardinal, will become part of this Agreement unless an authorized officer of Cardinal agrees to such other term or condition as an amendment to this Agreement. No term or
condition of any Purchase Order acceptance or acknowledgment submitted by Cardinal that contradicts or is inconsistent with this Agreement will become part of this Agreement unless an authorized officer of PGTI agrees to such other term or condition
as an amendment to this Agreement. 
 3.    Forecasting. PGTI shall provide to Cardinal at the beginning of each
month a rolling, twelve-month purchasing forecast, in such detail as may be reasonably requested by Cardinal, but generally with the content and form of the forecasts already being provided to Cardinal LG by PGT. All Product purchasing quantity
estimates and forecasts provided by PGTI are for Cardinal’s planning purposes only, and do not and shall not constitute an order or purchasing commitment from PGTI. 

4.    Reserve Supply of Products. Cardinal will keep a reserve supply of Products, in such quantities and types as
may be agreed upon in writing from time to time by the Parties, to reduce lead times, which shall be stored at Cardinal’s Mooresville, North Carolina plant and Ocala, Florida warehouse, or such other locations as may be mutually agreed upon by
the Parties (collectively, the “Stocking Locations”). PGTI and Cardinal will review quarterly the mix, types and quantities of Products at the Stocking Locations, to determine whether any adjustments to the mix, types and quantities
of stocked Products should be made. PGTI and Cardinal agree to work 

  
 4 

 
together to reduce such quantities prior to the Products becoming discontinued or slow-moving. PGTI will be responsible for purchasing all of the Products including related materials (e.g., raw
cut glass and raw tempered glass) kept at the Stocking Locations to the extent such items have been held (on a first-in, first-out basis) for ninety
(90) consecutive days, so long as PGTI approved the mix, types and quantities of Products at the Stocking Locations, and the amount of related materials that Cardinal orders and keeps at each Stocking Locations is commercially reasonable, given
the mix, quantities and types of Products that PGTI and Cardinal have agreed to stock at each Stocking Location (i.e., Cardinal will not keep an unreasonably large inventory of related materials, such as raw glass, at the Stocking Locations). The
applicable price for such Products is Cardinal’s then applicable price to PGTI for the Products, pursuant to the pricing terms of this Agreement, and the applicable price for the related materials is the then applicable price on the price sheet
between Cardinal FG and Cardinal CG, respectively, and PGTI for such materials. 
 5.    Product Deliveries. 

(a)    The Products shall be delivered to the delivery locations, and in the manner specified in, an
accepted Purchase Order. 
 (b)    With each shipment of Products, Cardinal will deliver a packing list
containing the following information: (i) purchase order number; (ii) PGTI part number; (iii) quantity ordered/quantity shipped; (iv) material certificate, as may be agreed to in writing; and (v) a safety data sheet per OSHA
requirements, when requested by PGTI. 
 (c)    Lead times shall be as set forth on Annex B
hereto, or as otherwise agreed upon in writing between the Parties. 
 (d)    Cardinal LG agrees to the key-performance-indicator set forth in Annex C hereto with respect to PGT Door Products regarding on-time deliveries and order fulfillment accuracy and
completeness, and the failure to do so shall be deemed a breach of this Agreement by Cardinal LG, which if not remedied within thirty days shall give PGT the right to terminate its obligations with respect to PGT Door Products under this Agreement
in accordance with the terms stated in Annex C hereto. Alternatively, in such situation, PGT shall have the right to keep this Agreement in effect, but shall also have the right to source all or a portion of PGT’s requirements for the
Products, or products substantially similar to the PGT Door Products, from suppliers other than Cardinal LG until such time as Cardinal LG has consistently met or exceeded the key performance indicator set forth in Annex C. 

(e)    In Purchase Orders, PGTI shall specify whether Products are to be picked up by PGTI or shipped by
Cardinal via third party carrier. Products picked up by PGTI shall be F.O.B. Cardinal’s dock. Products shipped via third party carrier shall be F.O.B. PGTI’s designated production facilities. As applicable, Cardinal will arrange for and
pay the third party carrier, but will then invoice PGTI for the freight at the agreed upon freight charge in effect at that time. The applicable freight charge will be the only freight cost to PGTI for Products shipped to PGTI by third party
carriers. Title and risk of loss will pass at the specified F.O.B. point. Certain other applicable terms respecting freight are set forth in Annex D. 

  
 5 

 6.    Pricing; Invoicing; Payment Terms; Rebate. 

(a)    The undelivered, F.O.B. Cardinal facility, prices that PGTI will pay Cardinal for the Products are
set forth on Annex A hereto. Other Products will be priced in a manner consistent with the pricing set forth on such Annexes. Prices for the Products will be adjusted only in the manner described in Annex D hereto, and only when such
an adjustment is permitted pursuant to the terms of Annex D. In addition to the prices described in the preceding sentences, PGTI will pay Cardinal, where applicable, the energy surcharges, freight charges, and stocked-product picking fees,
set forth in Annex D hereto or calculated in the manner set forth in Annex D. 

(b)    Except for any applicable energy surcharges, freight charges or stocked product picking fees set
forth or described in Annex D, no additional surcharges, packaging, loading, handling, administrative or processing fees or additional charges of any kind will be paid by PGTI, without the prior written agreement of PGTI’s Vice President
and General Manager. 
 (c)    The control of Cardinal’s materials, labor and overhead costs are
Cardinal’s responsibility. Cardinal acknowledges and agrees that Cardinal shall not have any right to increase the prices PGTI pays for the Products due to an increase in Cardinal’s materials, labor or overhead costs, but rather, that all
adjustments in the prices for the Products shall be made only pursuant to the price adjustment terms set forth in Annex D. 

(d)    The Parties agree that productivity, efficiency and quality improvements by Cardinal should be
continuous elements and requirements of this Agreement, and that the Parties shall cooperate with each other in good faith to achieve such improvements. 

(e)    Cardinal shall render invoices separately for each delivery of Products and corresponding Purchase
Order, and shall include PGTI’s part number, type and quantities of Products ordered, type and quantity of Products shipped or picked-up, unit price and extended value. Cardinal shall provide invoices to
PGTI via electronic transmission or fax within one business day after the invoice date. 
 (f)    Payment
terms shall be 2% 10th and 25th days of each month, net 30 days, calculated from the date of the invoice. Cardinal reserves the right to charge interest at a rate equivalent to 1% per month on
amounts not paid when due and, after providing at least 10 business days prior notice of nonpayment of undisputed amounts past due, suspend its performance under this Agreement. 

7.    New Technology. Cardinal agrees to use reasonable commercial efforts to include within the Products any new,
technologically superior glass components for doors and windows that may be requested from time to time by PGTI, and to incorporate into its production processes any new technological advancements or equipment likely to improve the durability and
quality of the Products. 

  
 6 

 8.    Representations and Warranties of Cardinal. 

(a)    Each entity included within Cardinal is a corporation duly organized, validly existing and in good
standing under the laws of the state in which it is incorporated, and each has full corporate power and corporate authority to execute and deliver this Agreement and to consummate effect the transactions contemplated hereby, and has duly authorized
the execution, delivery and performance of this Agreement by all necessary corporate action. 

(b)    This Agreement is a valid and legally binding obligation of Cardinal, and is enforceable against
Cardinal in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and by general principles of equity (regardless of
whether enforcement is sought in a proceeding at law or in equity). 
 (c)    The execution, delivery and
performance of this Agreement by Cardinal and the consummation of the transactions contemplated hereby do not and will not (i) result in a breach or violation of any provision of any of Cardinal’s organizational documents (e.g., articles
of incorporation or by-laws) or in a violation of any statute, rule, regulation, ordinance, order, judgment, decree, rule or regulation of any court or any governmental agency or body applicable to Cardinal,
(ii) violate or result in a material breach of or constitute an event of default (or an event which might, upon the passage of time or the giving of notice, or both, constitute an event of default) under any provision of, result in acceleration
or cancellation of any obligation under, or give rise to a right by any party to terminate or amend its obligations under, any mortgage, deed of trust, conveyance to secure debt, note, loan, indenture, lien, contract or governmental certification,
license or permit (other than any governmental permits for which transfer is not permitted by law or the issuing authority), instrument, order, judgment or decree or other material arrangement or commitment. 

(d)    No consent, approval, order or authorization of, or registration, declaration or filing with, any
other party or any federal, state or local government agency or entity is required by Cardinal in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby or the performance of Cardinal
of its obligations under this Agreement. 
 (e)    The Cardinal entity that is a party to the applicable
Purchase Order represents and warrants that, upon transfer of ownership of Products at the agreed upon F.O.B. point, such Cardinal entity shall pass to the applicable PGTI entity that is a party to the Purchase Order, and such PGTI entity shall
receive, good and marketable title to such Products, free and clear of all liens, claims, security interests, pledges, charges, mortgages, deeds of trusts, options, or other encumbrances of any kind. 

(f)    The Cardinal entity that is a party to the applicable Purchase Order warrants that the subject
Products shall meet and satisfy all of the warranties set forth in Annex E hereto (collectively, the “Warranties”) as well as such other standards agreed upon in writing from time to time by such Cardinal
entity with the PGTI entity issuing the Purchase 

  
 7 

 
Order, and also that the Products shall fully satisfy all of the specifications for each Product, as set forth in Annex F hereto (the “Specifications”), or such
specifications as otherwise agreed upon in writing between such Parties from time to time. 
 9.    Inspection of
Products; Acceptance or Rejection. Readily apparent breakage and other readily apparent nonconformity of the Product must be noted by PGTI on the Bill of Lading signed and provided to the carrier upon receipt of the shipment by PGTI with a copy
of such Bill of Lading provided by PGTI to Cardinal within twenty-four hours of receipt of the Products if damage is noted on the Bill of Lading. PGTI will inspect each delivery/shipment of Products for other reasonably apparent damage or
nonconformity and PGTI shall provide written notice of such damage or nonconformity to Cardinal within forty-eight hours after receipt of the Products by PGTI or its designee. PGTI shall have the right to reject any shipment of Products, or portion
thereof, that fail to satisfy the warranties set forth in Section 8(f) of this Agreement or in Annex E hereto, and shall have the right to revoke its prior acceptance of any such shipment or portion thereof where PGTI subsequently
discovers that the Products in that shipment or portion thereof do not fully satisfy and meet the warranties described in Section 8(f) and Annex E hereof. In the event that PGTI rejects any shipment of Products or
portion thereof, or revokes any prior acceptance of such Products, pursuant to the preceding terms of this Section 9, PGTI’s sole remedies in that situation shall be as follows: (a) PGTI will return all
non-conforming Products to Cardinal at Cardinal’s full cost and expense; provided that PGTI shall use commercially reasonable efforts to mitigate such cost and expense and only return Product pursuant a
written return material authorization notice issued by Cardinal; and (b) at PGTI’s election, Cardinal shall: (i) replace such non-conforming Products with Products that fully conform to the
aforementioned warranties and specifications related thereto, at Cardinal’s full cost and expense, including all delivery and shipping costs; or (ii) fully reimburse PGTI for the actual amount that PGTI paid for those non-conforming Products, including for any energy surcharges or freight charges, and for any picking fees paid by PGTI related thereto. 

10.    Warranty Claims - Defective Product requiring Field Service. Warranty claims must be received by Cardinal in writing within
the applicable Cardinal warranty period. No Product may be rejected and no warranty claim is required to be honored by Cardinal unless sufficient evidence (ie. Pictures) are made available to Cardinal to confirm the validity of the claim. Cardinal
may assess PGTI a reasonable charge for processing nonconformity and warranty claims that are not valid. In the case of seal failure claims, PGTI agrees to conduct the test set forth on Annex E-1 to verify
claimed seal failure and provide Cardinal the results of such test together with testing pictures designated by Cardinal. Latent Defects and Catastrophic Supplemental Warranty. Where PGTI discovers or otherwise is made aware of, after
PGT’s inspection of the Products, any defects or non-conformities in the Products that are covered by the Warranties and that are not detectable upon a visual inspection of the Products by PGTI, in the
manner PGTI customarily conducts such inspections, PGTI shall promptly notify Cardinal of the same in writing after which the provisions in Section 9 above will apply.    Warranty claims must be received by Cardinal within
the applicable warranty periods. 
 In addition to the remedies otherwise expressly provided for in this Agreement, the Supplemental Limited
Warranty stated in Annex G hereto applies as stated therein. 

  
 8 

 11.    Certification and Quality Assurance. Cardinal has met
PGTI’s initial quality certification requirements. However, Cardinal acknowledges that PGTI may, from time to time, ask Cardinal to participate in Quality Assurance evaluations. Upon PGTI’s request, Cardinal shall provide PGTI with
Cardinal’s Quality Assurance Manual, if any. Periodic supplier performance evaluations may be performed, the purpose of which will be to assess Cardinal’s quality as it relates to, among other things,
on-time deliveries, packaging, service/warranty, and non-conforming materials as reported through PGTI’s Defective Material Reporting Process. Nothing in this
Section 11 is an agreement by Cardinal to change the terms and conditions of sale set forth in this Agreement, including pricing terms. 

12.    Modifications. Cardinal will notify PGTI if Cardinal intends to implement a modification of any of the
Specifications of the Products or the manufacturing processes for the Products, which reasonably could be expected to change the such Specifications (collectively, “Modifications”). With respect to Products covered by accepted
Purchaser Orders, Cardinal shall not implement any Modifications without PGTI’s prior written consent, which consent shall not be unreasonably withheld. If PGTI does not respond to Cardinal’s notification of a proposed Modification within
ninety (90) days after receiving the same, Cardinal may reject future orders for the Products that would be affected by such Modification. If such Modification is not accepted/consented to by PGTI, Cardinal shall not implement such
Modification, but PGTI shall not unreasonably withhold its consent to any requested Modification, so long as the Modification is not likely to degrade, harm or lower the quality, aesthetics, durability, or other characteristics of the Products that
would be affected by the Modification. 
 13.    Representations and Warranties of PGTI. 

(a)    Each entity included in PGTI is a corporation which is duly organized, validly existing and in good
standing under the laws of the state in which it is incorporated, and has full corporate power and corporate authority to execute and deliver this Agreement and to consummate effect the transactions contemplated hereby, and has duly authorized the
execution, delivery and performance of this Agreement by all necessary corporate action. 
 (b)    This
Agreement is a valid and legally binding obligation of PGTI, and is enforceable against PGTI in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally, and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

(c)    The execution, delivery and performance of this Agreement by PGTI and the consummation of the
transactions contemplated hereby do not and will not (i) result in a breach or violation of any provision of any of PGTI’s organizational documents (e.g., articles of incorporation or by-laws) or in
a violation of any statute, rule, regulation, ordinance, order, judgment, decree, rule or regulation of any court or any governmental agency or body applicable to PGTI, (ii) violate or result in a material breach of or constitute an event of
default (or an event which might, upon the passage of time or the giving of notice, or both, constitute an event of default) under any provision of, result in acceleration or cancellation of any obligation under, or give rise to a right by any party
to terminate or 

  
 9 

 
amend its obligations under, any mortgage, deed of trust, conveyance to secure debt, note, loan, indenture, lien, contract or governmental certification, license or permit (other than any
governmental permits for which transfer is not permitted by law or the issuing authority), instrument, order, judgment or decree or other material arrangement or commitment. 

(d)    No consent, approval, order or authorization of, or registration, declaration or filing with, any
other party or any federal, state or local government agency or entity is required by PGTI in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby or the performance by PGTI of its
obligations under this Agreement. 
 14.    Term and Termination. 

(a)    This Agreement is effective as of the Effective Date and shall expire on December 31, 2024,
provided that the Agreement is not terminated prior to that expiration date pursuant to the express termination rights set forth herein (the “Term”). On or about the eighteen months prior to the expiration of the Term, the Parties
agree to negotiate in good faith regarding a possible extension of the Term of this Agreement beyond the scheduled, original expiration date for the Agreement. 

(b)    The application of this Agreement to an entity within either Party may be terminated by the other
Party in the event that such entity: (i) makes a general assignment for the benefit of creditors; (ii) is insolvent; (iii) ceases to function as a going concern; (iv) has a receiver is appointed for it or its assets; and/or
(v) becomes subject to a voluntary or involuntary bankruptcy or similar proceedings under any federal, state or other bankruptcy or insolvency laws and such proceedings are not terminated within ninety days. 

(c)    Subject to Section 14(e) below, the application of this Agreement to an entity within either
Party may be terminated by the other Party in the event that such entity fails to perform any material provision of this Agreement, or fails to timely remedy or cure any breach of warranty, or fails to satisfy any
key-performance-indicator set forth herein or in any annex hereto applicable to such entity, and does not cure such failure within thirty days after receipt of written notice from the other Party specifying
such failure and stating its intention to terminate this Agreement if such failure is not cured before the end of that thirty-day cure period. 

(d)    Subject to Section 14(e) below, the application of this Agreement to an entity within either
Party may be terminated by the other Party with not less than sixty days prior written notice to the other Party where performance of this Agreement by such entity has been suspended in accordance with the force majeure provision set forth below,
and it appears reasonably likely that such performance will be delayed for more than six months. 

(e)    The right to terminate this Agreement based on Section 14(c) or 14(d) above arising with
respect to PGT Door Products, Western Products or Other Cardinal Products, respectively, shall only permit a termination of this Agreement with respect to the purchase and supply obligations relating to such respective products and not the other
products (e.g., 

  
 10 

 
a termination based on a breach relating to Western Products does not permit or cause a termination of this Agreement as it relates to PGT Door Products, WinDoor and CGI Door Products, WinDoor
and CGI Window Products or Other Products). 
 15.    Miscellaneous. 

(a)    Force Majeure. No party to this Agreement shall be liable for
non-performance hereunder resulting from: severe weather conditions; war; riots; civil disorder; earthquakes; any newly enacted or issued law, order, proclamation, regulation, ordinance, demand or requirement
of any governmental agency; or any other condition or occurrence whatsoever beyond the control of such party, but only to the extent performance hereunder is prevented by any such condition. If the performance of this Agreement is prevented by
reason of any such event, (a) the party whose performance is prevented, shall give prompt written notice to the other party of the event and shall be excused from performance, but only to the extent prevented; provided, however, that the party
whose performance is prevented shall take all steps to avoid or remove such causes of nonperformance and shall continue performance whenever and to the extent possible; and (b) if it appears that a time for delivery or performance scheduled
pursuant to this Agreement will be delayed for more than six (6) months, the party receiving notice under subsection (a) above shall have the right to terminate, by sixty days prior written notice to the other party, any portion of this
Agreement covering the prevented performance, and the obligations and liabilities of the parties with respect to such portion of the Agreement shall thereupon lapse and terminate, except to the extent such obligations or rights are intended to
survive pursuant to this Agreement. 
 (b)    Assignment. Neither this Agreement nor any of the
rights, interests or obligations hereunder shall be transferred, assigned or delegated by either Party, in whole or in part, including where the Party or all or substantially all of its assets are acquired by an third party not controlled by such
Party, and whether through a merger or otherwise, without the prior written consent of the other Party, and any attempt to make any such transfer, assignment or delegation without such consent shall be null and void. This Agreement shall be binding
upon and inure to the benefit of and be enforceable by the successors, legal representatives and permitted assigns of the Parties hereto. 

(c)    Contractor Status. The Parties are and shall remain independent contractors with respect to
each other, and nothing in this Agreement shall be construed to place the Parties in the relationship of partners, joint ventures, fiduciaries or agents, nor grant any right or authority to assume or create an obligation or responsibility, express
or implied, on behalf of or in the name of the other or bind the other in any manner whatsoever. 

(d)    Modification and Waiver. No modification, amendment or waiver of any provision of this
Agreement shall be valid or binding unless in writing and executed by both of the Parties. Any other purported modification, amendment or waiver of any provision of this Agreement shall be null and void. No waiver by any Party of any breach, or the
failure of any Party to enforce any of the terms and conditions of this Agreement, shall affect, limit or waive that Party’s right to enforce and compel compliance with all terms and conditions of this Agreement, or to terminate this Agreement
according to its terms. 

  
 11 

 (e)    Invalidity or Illegality. In the event any
provision of this Agreement is declared to be void, invalid or unlawful by any court or tribunal of competent jurisdiction, such provision shall be deemed severed from the remainder of this Agreement and the balance shall remain in full force and
effect. The Parties shall undertake to replace the invalid, ineffective, or unenforceable provisions with valid, effective, and enforceable provisions, which, in their commercial effect, approximate as closely as possible the intentions of the
Parties as expressed in the invalid, ineffective, or unenforceable provision. 
 (f)    Headings.
Section headings contained herein are for convenience only and shall not affect the interpretation hereof. 

(g)    Counterparts. The Parties may execute any number of counterparts to this Agreement, each of
which shall be an original instrument, but all of which taken together shall constitute one and the same Agreement. Signed facsimile copies or emailed PDFs of this Agreement will bind the Parties to the same extent as original documents. 

(h)    Governing Law; Forum Selection. Except as provided in the next sentence, this Agreement shall
be governed by and construed in accordance with the laws of the State of Florida, without regard to the conflict of laws principles thereof. Any dispute between the Parties about the interpretation or meaning of any provision of this Agreement or
any of the benefits, duties or obligations of the Parties under this Agreement, shall be brought and litigated in the state or superior courts of Sarasota County, Florida, and the Parties acknowledge and agree that this Agreement has been made and
entered into in such county, and both Parties waive any argument that either of them may have that such forum in or will be inconvenient. 

(i)    Survival Provision. Neither the expiration nor termination of this Agreement shall affect
such of the provisions of this Agreement as expressly provide that they will operate after any such expiration or termination. 

(j)    Protective Equipment. Each Party and its subcontractors must wear appropriate personal
protective equipment (PPE), as required by the other Party’s policies and procedures, when visiting any of the other Party’s manufacturing facilities. 

(k)    Financial Condition. Based on requests by PGTI from time to time, Cardinal shall provide PGTI
reasonable assurance as to Cardinal’s financial well-being. All such financial information of Cardinal shall be deemed to be and treated by PGTI and its/their affiliates as “Confidential Information” under that certain Confidentiality
Agreement between Cardinal LG and PGT Industries, Inc., dated December 8, 2014, and it is hereby agreed that the “Termination Date” of such Confidentiality Agreement is hereby extended to the date five years after the expiration or
termination of this Agreement. 
 (l)    Entire Agreement; Waiver. This Agreement, including the
annexes hereto, constitutes the entire and complete agreement and understanding between the Parties and supersedes any prior negotiations, understandings, or agreements, whether written or oral, 

  
 12 

 
relating to the subject matter of this Agreement. No amendment to or waiver of any provision of this Agreement shall be effective unless it is reduced to writing and signed by authorized
representatives of both Parties hereto. No waiver to any provision of this Agreement shall be deemed to arise from any inaction by a Party or any course of dealing between the Parties. Any waiver given pursuant to the terms hereof shall be only for
the particular instance covered by that written waiver and only for the matter expressly waived therein. 

(m)     Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given (i) three business days after mailing if mailed by certified or registered mail, return receipt requested; (ii) one business day after delivery by Federal Express or UPS, if sent for overnight delivery with
fees prepaid; (iii) upon receipt if sent via facsimile or other electronic means with receipt confirmed electronically during business hours (with such notice deemed to have been given the business day following the date of receipt if sent
after the conclusion of business hours); or (iv) upon receipt if delivered personally, addressed as follows or to such other address or addresses of which the respective party shall have notified the other: 

If to PGTI, to: 

PGT Industries, Inc. 

1070 Technology Drive 

North Venice, FLA 34275 

Attention: Chief Financial Officer 

Fax No.: (941) 554-0157 

With a copy to: 

Shumaker, Loop & Kendrick LLP 

240 South Pineapple Avenue, Suite 1000 

Sarasota, FLA 34236 

Attention: Daniel J. De Leo 

Fax No.: 941-366-3999 

If to Cardinal, to: 

Cardinal LG Company 

1300 SW 44th Ave. 

Ocala, FL 34474 

Attention: President 

Fax No.: 352-291-6865 

  
 13 

 With a copy to: 

Fredrikson & Byron, P.A. 

200 South 6th St., #4000 

Minneapolis, MN 55402 

Attention: Tom Archbold 

Fax No.: (612) 492-7077 

[SIGNATURES ON THE FOLLOWING PAGE] 

  
 14 

 IN WITNESS WHEREOF, each of the Parties have caused this Agreement to be duly executed on its behalf by its
duly authorized officer, all as of the day and year first written above. 
  

			
	PGT Innovations, Inc.
		
	By	 	 /s/ Jeffrey T. Jackson

	Title	 	 President & CEO

	Print Name	 	 Jeffrey T. Jackson

  

									
	Cardinal LG Company	 		 	Cardinal IG Company
					
	By	 	 /s/ Kyle S. Petersen
	 		 	By	 	 /s/ David A. Pinder

	Title	 	 President
	 		 	Title	 	 President

	Print Name	 	 Kyle S. Petersen
	 		 	Print Name	 	 David A. Pinder

 [SIGNATURE PAGE TO SUPPLY AGREEMENT]

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