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THIS NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE.  THIS NOTE HAS BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
Issuance Date:    July 23, 2021    Principal:    $17,000,000.00
Maturity Date:    July 31, 2026    Note Number:    LODE 103
LP BIOSCIENCES LLC
Secured Promissory Note
FOR VALUE RECEIVED, LP BIOSCIENCES LLC, a Wyoming limited liability company (the “Borrower”) hereby promises to pay to the order of COMSTOCK MINING INC., a Nevada corporation (“Holder”) the sum of $17,000,000.00 (the “Principal”) on or before July 31, 2026, (the “Maturity Date”),  and (ii) interest (“Interest”) on any outstanding Principal at the applicable Interest Rate (as defined below) from the date that the Borrower receives or received funds from Holder until the same is paid, whether upon the Maturity Date or acceleration, redemption or otherwise (in each case in accordance with the terms hereof) pursuant to the terms of this Secured Promissory Note (the “Note”), provided, for the avoidance of doubt, the outstanding Principal for purposes of Interest payable thereon under this Note shall equal (i) the sum of the Advance Payment, plus the amount of the Initial Funding, plus the aggregate amount of any Subsequent Funding, (ii) multiplied by 1.133333.  For the sake of clarity, the Principal represents the purchase price of $15,000,000 plus an original issue discount of $2,000,000. This Note is issued on and subject to the terms and conditions of that certain Note Purchase Agreement of even date herewith (“Note Purchase Agreement”), and secured by that certain Security Agreement of even date herewith (the “Security Agreement”), in each case by and among the Borrower and the Holder.
1.Payment. The Borrower shall pay to the Holder the Principal, plus accrued but unpaid interest on or before the Maturity Date. All payments received by the Holder shall be applied first to the Holder’ costs and expenses (if any), then to accrued but unpaid interest and then to outstanding principal. Interest shall accrue on the outstanding Face Amount of this Note at a rate of 13.5% per year (“Interest Rate”). At any time that an Event of Default (as defined below) has occurred and is continuing, the Interest Rate shall be equal to 20% per year (“Default Rate”).  Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law. Monthly payment pursuant to the amortization schedule (“Amortization Schedule”) attached hereto (such scheduled monthly payment, the “LPB Monthly Installment”) shall commence on the earlier to occur of August 31, 2022, or 90 days after the date on which Borrower commences production and commercial sales (the “Payment Start Date”).  Interest shall accrue on the outstanding Principal balance of this Note at the Interest Rate, commencing on the date of each advance on this Note until the Note is paid in full. No interest payments shall be payable until the Payment Start Date. All accrued and unpaid interest shall be due and payable commencing on the Payment Start Date on the date of each scheduled amortization thereafter in accordance with the Amortization Schedule. Borrower shall pay the LPB Monthly Installment to Holder by wire transfer or as other otherwise directed by the Holder on the first day of the month immediately following a Payment Start Date.  In any given month, if 20% of the Borrower’s Adjusted Cash Flow (defined as the sum of (i) monthly gross cash receipts from sales, less (ii) scheduled principal and interested payments due on the LSB Documents for that month, less (iii) total variable costs, operating expenses, maintenance costs, tax payments, permitted tax distributions made by Borrower pursuant to its amended and restated operating agreement of even date herewith and other costs and expenses incurred in the ordinary course of business, as reasonably determined by the Management Committee of the Borrower) exceeds the LPB Monthly Installment that would otherwise be payable for such month (any such excess amount, the “Excess Mandatory Prepayment Amount”), then, the Borrower shall pay Holder 20% of the Borrower’s Adjusted Cash Flow instead of the scheduled LPB Monthly Installment for that month (“Mandatory Prepayment”), so long as the amount of the LPN Preferred Cash Flow Sweep distribution for that month and the amount of any LSB Prepayment due on the LSB Documents for that month is made (or paid or reserved) at the same 
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time as the Mandatory Prepayment, on a pari passu basis both in time and in amount with the Excess Mandatory Prepayment Amount.  In the event of any pre-payment (including any Mandatory Prepayment), the amount of such prepayment shall be increased to the extent that the extended internal rate of return received by Holder on any such prepayment is less than 20% with respect to the Principal amount paid (inclusive of the original issue discount). The principal portion of prepayments made hereunder (i.e., the portion of such prepayments remaining after the payment of accrued and unpaid principal and after giving effect to any Mandatory Prepayment) shall be applied against Principal and applied against and reduce the monthly payments of Principal set forth in the amortization schedule, starting with the last such monthly payment of Principal and continuing with the other monthly payments of Principal in reverse chronological order. On the date of any partial prepayment of the Note, Holder shall deliver to Borrower a copy of an updated amortization schedule with respect to the Note setting forth the amount of the installment payments to be made thereon after the date of such prepayment, the allocation of principal and interest for each installment and the unpaid principal balance of the Note after each such installment payment. All payments of this Note shall be applied first in payment of unpaid accrued interest and any remainder in payment of Principal.
2.Representations and Warranties. Borrower hereby represents and warrants to the Holder that the following are true and correct as of the date hereof: (i) Borrower has the requisite power and authority to enter into and perform its obligations under this Note and any related agreements, in accordance with the terms hereof and thereof; (ii) the execution and delivery of this Note and any related agreements (including without limitation the Note Purchase Agreement dated as of the date hereof) by the Borrower and the consummation by it of the transactions contemplated hereby and thereby, have been duly authorized by their respective Board of Directors and/or Manager of the Borrower and no further consent or authorization is required by the Borrower, or its Board of Directors, Manager, members or stockholders; (iii) this Note and any related agreements have been duly executed and delivered by the Borrower; (iv) this Note and any related agreements, constitute the valid and binding obligations of the Borrower enforceable against it in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.
3.Events of Default. An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing: (i) the Borrower’ failure to pay to the Holder any amount of Principal, Interest or other amounts when and as due and payable under this Note; (ii) the Borrower or any subsidiary of the Borrower shall commence, or there shall be commenced against the Borrower or any subsidiary of the Borrower under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Borrower or any subsidiary of the Borrower commences, or there shall be commenced against the Borrower or any subsidiary of the Borrower, any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Borrower or any subsidiary of the Borrower, in each case which remains un-dismissed for a period of 61 days; or the Borrower or any subsidiary of the Borrower is adjudicated insolvent or bankrupt pursuant to a final, non-appealable order; or any order of relief or other order approving any such case or proceeding is entered; or the Borrower or any subsidiary of the Borrower suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues un-discharged or un-stayed for a period of 61 days; or the Borrower or any subsidiary of the Borrower makes a general assignment for the benefit of creditors; or the Borrower or any subsidiary of the Borrower shall admit in writing that it is unable to pay its debts generally as they become due; or the Borrower or any subsidiary of the Borrower shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or any corporate or other action is taken by the Borrower or any subsidiary of the Borrower for the purpose of effecting any of the foregoing; (iii), any event which constitutes an event of default by the Borrower under the Security Agreement of even date herewith among the Borrower and the Holder or any agreements entered into or delivered by the Borrower in connection herewith or therewith; (iv) Borrower’s failure to timely design, engineer, procure, construct, commission, start-up, train, and performance test the Valor Facility (as defined in the Letter Agreement), in accordance with the Valor Facility retrofit Master Project Schedule and Project Spend Plan and the EPC Agreements, and Borrower’s failure to take satisfactory action to cure such non-performance within 60 days of receipt of written notice from Holder; and (v) any breach of a covenant or agreement of the Borrower under the Note Purchase Agreement dated as of the date 
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hereof provided, however, that, notwithstanding the foregoing or anything else in this Note or Security Agreement or Note Purchase Agreement or any agreements entered into or delivered by the Borrower in connection herewith or therewith to the contrary, (i) the occurrence of any fact, event or circumstance arising under or related to or giving rise to any Section 7.2.2(v)-(viii) Indemnifiable Event (as defined in Section 7.2.2 in the Note Purchase Agreement) or (ii) any MANA default under any agreement by, between or among, et al., MANA corporation and Holder, shall not constitute an Event of Default by Borrower, may not cause or give rise to an Event of Default by Borrower, and shall not constitute or give rise to an event of breach by Borrower.
4.Remedies Upon Default. During the time that any portion of this Note is outstanding, if any Event of Default has occurred, (a) the unpaid Principal of the Note and the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further action and the same shall thereupon become immediately due and payable without protest, presentment, demand or notice, which are hereby expressly waived by Borrower; (b) Holder shall be entitled to exercise its right of setoff against any money, funds, or credits of the Borrower now or at any time hereafter in the possession of, in transit to or from, under the control or custody of or on deposit with, Holder or any affiliate of Holder in any capacity whatsoever; and (c) Holder shall be entitled exercise any or all rights, powers and remedies provided for in the related agreements or documents executed in connection with the issuance of this Note or now or hereafter existing at law, in equity, by statute or otherwise.  Each right, power and remedy of Holder hereunder or now or hereafter existing at law, in equity, by statute or otherwise shall be cumulative and concurrent, and the exercise or beginning of the exercise of any one or more of them shall not preclude the simultaneous or later exercise by Holder of any or all such other rights, powers or remedies. No failure or delay by Holder to insist upon the strict performance of any one or more provisions of this Note or of the related agreements or to exercise any right, power or remedy consequent upon a default hereunder shall constitute a waiver thereof or preclude Holder from exercising any such right, power or remedy. By accepting full or partial payment after the due date of any amount of principal of or interest on this Note, or other amounts payable on demand, Holder shall not be deemed to have waived the right either to require prompt payment when due and payable of all other amounts of principal of or interest on this Note or other amounts payable on demand, or to exercise any rights and remedies available to it in order to collect all such other amounts due and payable under this Note.  Borrower shall pay any and all issue taxes, documentary stamp taxes, and other taxes that may be payable in respect of the issuance or delivery of this Note. 
5.Reissuance of this Note. Upon receipt by the Borrower of evidence reasonably satisfactory to the Borrower of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the Holder to the Borrower in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Borrower shall execute and deliver to the Holder a new Note representing the outstanding Principal which Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest from the Issuance Date.
6.Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered: upon receipt, when delivered personally; upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. Written confirmation of receipt given by the recipient of such notice, consent, waiver or other communication, mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission, or provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with the above, respectively.
7.Liability. No provision of this Note shall alter or impair the obligations of the Borrower, which are absolute and unconditional, to pay the Principal of or Interest (if any) on, this Note at the time, place, and rate, and in the currency, herein prescribed.  This Note is a direct obligation of the Borrower. As long as this Note is outstanding, the Borrower shall not and shall cause its subsidiaries not to, without the consent of the Holder, amend 
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its articles of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder under this Note, or enter into any agreement with respect to any of the foregoing. 
8.Governing Law. All rights and obligations hereunder and thereunder, including matters of construction, validity, and performance, shall be governed by and construed in accordance with the law of the State of Nevada and are intended to take effect as sealed instruments. The Borrower hereby irrevocably submits to the jurisdiction of any federal or state court located within Washoe County, Nevada.
9.Expenses. If an Event of Default has occurred, then the Borrower shall reimburse the Holder promptly for all out-of-pocket fees, costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses incurred by the Holder in any action in connection with this Note, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in connection with the rendering of legal advice as to the Holder’ rights, remedies and obligations; (ii) collecting any sums which become due to the Holder in accordance with the terms of this Note; (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv), the protection, preservation or enforcement of any rights or remedies of the Holder.  The obligation of the Borrower to pay all such costs and expenses shall not be merged into any judgment by confession against the Borrower. All of such costs and expenses shall bear interest at the Interest Rate, from the date of payment by Holder until repaid in full.
10.Waiver. Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.
11.Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If it shall be found that any Interest or other amount deemed Interest due hereunder shall violate applicable laws governing usury, the applicable rate of Interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. Each of the Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Borrower from paying all or any portion of the Principal of or Interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and each of the Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law had been enacted.
12.Assignment. Assignment of this Note by the Borrower shall be prohibited without the prior written consent of the Holder.  Holder shall be entitled to assign this Note in whole to any person or entity without consent.  This Note shall not be interpreted as being, (a) an instrument issued in bearer or registered form, provided however, the Note is intended to represent a debt instrument, (b) a type of instrument commonly dealt in on securities exchanges or markets or, commonly recognized in any area in which it is issued or dealt in as a medium for investment, or (c) one of a class or series or by its terms divisible into a class or series of shares, participations, interests, or obligations. 
13.JURY TRIAL. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THE SECURITIES PURCHASE AGREEMENT AND THIS NOTE.
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IN WITNESS WHEREOF the parties have duly executed, or caused their duly authorized representative, to execute this Note as of the date first above written.
						
	LP BIOSCIENCES LLC	
		
		
	By:    ___________________________	
	Name:     Jim Galvin	
	Title:    Manager	
		
	COMSTOCK MINING INC.	
		
		
	By:    ___________________________	
	Name:     Corrado De Gasperis	
	Title:    Executive Chairman & Chief Executive Officer	
		

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SCHEDULE A
AMORTIZATION SCHEDULE

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LPB PARTNERSHIP INTEREST PURCHASE AGREEMENT 

This Partnership Interest Purchase Agreement (this “Agreement”) is made and entered into effective July 23, 2021 (the “Effective Date”), by and between COMSTOCK MINING INC., a Nevada corporation (“Buyer” or “COMSTOCK”), and LP NUTRITION LLC, a Delaware limited liability company (“Seller” or “LPN”).  Buyer and Seller are referred to each as a “Party” and collectively as the “Parties” herein).  

LP BIOSCIENCES LLC, a Wyoming limited liability company (the “Company”), joins in the execution of this Agreement, not as a party to the purchase and sale transaction between Buyer and Seller, but solely for the express purposes set forth in this Agreement.    

RECITALS
WHEREAS, effective 12:01 a.m. CDT on July 19, 2021, pursuant to the LPN Contribution Agreement attached hereto as Exhibit A, Seller contributed all of its right, title and interest in and to the Lease Agreement (as defined therein) representing Seller’s Leasehold Interest (as defined therein) in and to the Valor Facility to the Company in consideration for a 100% transferable interest in the Company, which transferable interest is represented by 1,000,000 Class A Units in the Company; 

WHEREAS, effective 12:01 a.m. CDT on July 19, 2021, in accordance with the LPN Contribution Agreement, pursuant to the LPN Assignment and Bill of Sale (Lease) and LPB Assumption Agreement (Lease) attached hereto as Exhibit B-1 and Exhibit B-2, respectively, Seller assigned all of its right, title and interest in and to the Lease Agreement and Seller’s Leasehold Interest in and to the Valor Facility to the Company, and the Company assumed and agreed to discharge Seller’s obligations and liabilities under the Lease Agreement; 

WHEREAS, effective July 19, 2021, Seller assigned a 1% membership Interest in the Company represented by 10,000 Class A Units in the Company to LPN Corporation, a Minnesota corporation (“Corporate Affiliate”) pursuant to the LPN Assignment and Bill of Sale (LLC Interest) attached hereto as Exhibit C; 

WHEREAS, as a result of the foregoing transactions, Seller is a member of the Company and as of July 19, 2021 holds a 99% membership Interest in the Company, which membership Interest is represented by 990,000 Class A Units in the Company, and Corporate Affiliate is a member of the Company and as of July 19, 2021 holds a 1% membership Interest in the Company, which membership Interest is represented by 10,000 Class A Units in the Company; 

WHEREAS, effective July 23, 2021, Seller desires to sell to Buyer and Buyer desires to purchase from Seller a 50% membership Interest in the Company, which membership Interest is represented by 500,000 Class A Units in the Company (the “Class A Units”), as such terms are defined in, and which membership Interest represented by the Class A Units shall be governed by, the Amended and Restated Operating Agreement of the Company adopted by the Members of the Company effective as of July 23, 2021; 

WHEREAS,  upon and simultaneous with the consummation of the purchase and sale transaction hereunder, effective as of July 23, 2021 (i) the Company will issue a non-membership Interest in the Company represented by 3,500,000 Class B Units in the Company to COMSTOCK in consideration of COMSTOCK’s contribution of 3,500,000 shares of COMSTOCK common stock to the Company pursuant to the terms of the Comstock Contribution Agreement of even date herewith attached hereto as Exhibit D, and (ii) Seller and Buyer as Members of the Company will adopt and enter into the Amended and Restated Operating Agreement of the Company in the form attached hereto as Exhibit E effective as of July 23, 2021 (the “LPB AR Operating Agreement”).  

NOW, THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the Parties agree as follows:

ARTICLE I
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PURCHASE AND SALE OF OWNERSHIP INTERESTS

    Section 1.1.    Purchase and Sale Transaction. 

Subject to the terms and conditions set forth in this Agreement and the consummation of the transactions contemplated by this Agreement, effective as of July 23, 2021 (hereinafter referred to as the “Closing Date”) and for the consideration specified in Section 1.2, Buyer shall purchase from Seller, and Seller shall sell, transfer, assign and convey to Buyer, free and clear of any and all liens, claims, encumbrances, security interests, or options whatsoever, effective July 23, 2021, all of Seller’s right, title and interest in and to Seller’s 50% membership interest (the “Membership Interest”) in LP BIOSCIENCES LLC, a Wyoming limited liability company (the “Company”), which Membership Interest shall be and is represented by 500,000 Class A Units of the Company (the “Class A Units”), and all of Seller’s rights and other benefits in respect of the Membership Interest and the Class A Units to which a holder of the Membership Interest and the Class A Units may be entitled under the Amended and Restated Operating Agreement of the Company adopted by the Members of the Company effective as of July 23, 2021 (the “LPB AR Operating Agreement”), pursuant to the LPN Assignment and Bill of Sale (LLC Interest) in the form attached hereto as Exhibit F.  

    Section 1.2.    Purchase Price and Allocation. 

    (a)    As consideration for the sale, transfer, and assignment of the Membership Interest represented by the Class A Units and for the covenants of Seller provided for herein, Seller agrees to accept and Buyer agrees to pay Seller the following consideration:  

												
	Consideration:		
		Credit for Prior Payment	$          1,500,000	
		Escrowed Funds to be Later Released	$             500,000	
		Promise to Pay From Stock Sale Proceeds	$          3,000,000	
		Agreement that LPN will have a $5M Preference	$          5,000,000	
			$        10,000,000	
				

    (b)    The payment of the consideration shall be due and payable and shall be made by or on behalf of Buyer at the times and in accordance with LPB AR Operating Agreement or, with respect to the Escrowed Funds, in accordance with the escrow agreement governing the release of the Escrowed Funds to Seller.  

    (c)    Buyer and Seller agree to cause the Company to make a Section 754 election in connection with the purchase and sale transaction contemplated by this Agreement, and that the allocation of the Purchase Price among the assets of the Company and the deemed distribution to Buyer under Section 752(b) of the Internal Revenue Code of 1986, as amended (the “Code”) shall be made in a manner consistent with the LPB AR Operating Agreement.  Buyer and Seller agree to report, act and file all tax returns in all respects and for all purposes, including for purposes of Section 751 of the Code, consistent with such allocation.  Neither Buyer nor Seller shall take any position (whether in audits, tax returns or otherwise) that is inconsistent with such allocation unless required to do so as a result of a determination within the meaning of Section 1313(a) of the Code.  

    Section 1.3.    The Closing. 

    The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place electronically, or such other place as the Parties may agree upon, effective July 23, 2021 (the “Closing Date”).

    Section 1.4.    Deliveries at the Closing. 

    At the Closing, (a) Seller shall deliver to Buyer the LPN Assignment and Bill of Sale (LLC Interest) in the form attached hereto as Exhibit F, (b) Buyer will deliver to the Company the Comstock Contribution Agreement in 
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the form attached hereto as Exhibit D, (c) the Company will issue a non-membership Interest in the Company represented by 3,500,000 Class B Units in the Company to Buyer in consideration of Buyer’s contribution of 3,500,000 shares of COMSTOCK common stock to the Company pursuant to the terms of the Comstock Contribution Agreement, (d) Seller shall deliver to Buyer certificates or other instruments representing the LPB Ownership Interest being bought and sold hereunder in accordance with the LPB AR Operating Agreement, (e) Buyer and Seller shall adopt and enter into the Amended and Restated Operating Agreement of the Company in the form attached hereto as Exhibit E as Members of the Company effective as of July 23, 2021 (the “LPB AR Operating Agreement”) and (f) Buyer will deliver to Seller the purchase price described in and at the times and in accordance with Section 1.2 hereof by wire transfer to a bank account designated by Seller.

ARTICLE II
OTHER AGREEMENTS OF THE PARTIES

Section 2.1    Simultaneous Transactions. 

At the Closing, Buyer agrees to deliver to the Company the Comstock Contribution Agreement in the form attached hereto as Exhibit D, and the Company agrees to issue a non-membership Interest in the Company represented by 3,500,000 Class B Units in the Company to Buyer in consideration of Buyer’s contribution of 3,500,000 shares of COMSTOCK common stock to the Company pursuant to the terms of the Comstock Contribution Agreement.  The Parties agree that the foregoing transactions together with entering into the LPB AR Operating Agreement shall occur simultaneous with the purchase and sale transaction contemplated by this Agreement.  

Section 2.2    Certain Definitions. 

Buyer and Seller agree that as used herein the capitalized terms (i) “LPB Ownership Interest” shall have the meaning ascribed to such term in the LPN Assignment and Bill of Sale in the form attached hereto as Exhibit G, (ii) “Lease Agreement” and “Leasehold Interest” and “SNDA” and “Memorandum of Lease” shall have the meaning ascribed to such term in the LPN Assignment and Bill of Sale (Lease) attached hereto as Exhibit B-1, (iii) the “Premises” and the “Leased Equipment” shall have the meaning ascribed to such term in the Lease Agreement, (iv) “Office Building Sublease” shall have the meaning ascribed to such term in the LPB Note Purchase Agreement (as defined in Section 3.1(h) below) and Schedule 2.3 thereto, and (v) “Closing Stock Capital Contribution” shall have the meaning ascribed to such term in Schedule 2.1 to the LPB Note Purchase Agreement.       

ARTICLE III
REPRESENTATIONS AND WARRANTIES CONCERNING THE PARTIES AND THE TRANSACTION

Section 3.1.    Representations and Warranties of Seller. 

Seller hereby represents and warrants to Buyer that the statements contained in this Section 3.1 are correct and complete as of the Closing Date.  

(a)    Seller’s name is LP Nutrition LLC; Seller is a Delaware limited liability company with principal address at 300 West Adams Street, Suite 830, Chicago, Illinois 60606; and Seller is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization and in any jurisdiction in which the failure to be qualified would impair its ability to enter into this Agreement or the enforceability of this Agreement.      

(b)    Seller has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  

(c)    Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction or any government, governmental agency, or court to which Seller is subject or (ii) conflict with, result in a breach of, or constitute a default under (upon the giving of notice or lapse of time or 
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both), result in the acceleration of, or create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which Seller is a party or by which Seller is bound or to which the LPB Ownership Interest is subject.

(d)    Seller has no liability or other obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for which Buyer could become liable.  

(e)    Seller holds of record and owns beneficially the LPB Ownership Interest, which LPB Ownership Interest is fully paid, and free and clear of any restrictions on transfer (other than any restrictions under federal or state securities laws and the LPB AR Operating Agreement), liens, claims, encumbrances, security interests, options, warrants, purchase rights or other demands.  Seller is not a party to any option, warrant, purchase right, or other contract or commitment that could require Seller to sell, transfer, or otherwise dispose of the LPB Ownership Interest (other than this Agreement and the LPB AR Operating Agreement).  Seller has good and marketable title to the LPB Ownership Interest.

(f)    Seller assigned all of its right, title and interest in and to a 1% Membership Interest in the Company represented by 10,000 Class A Units of the Company to Corporate Affiliate effective July 19, 2021.  Seller has no plan or intention to re-acquire the 1% membership Interest in the Company represented by 10,000 Class A Units in the Company held by Corporate Affiliate.   

(g)    Seller assigned all of its right, title and interest in and to the Lease Agreement as Tenant to the Company effective July 19, 2021, and as of such date the Company is a party to the Lease Agreement as Tenant and successor-in-interest to Seller.  

(h)    The Company has good and marketable title to the Lease Agreement as Tenant and the Leasehold Interest created thereunder, free and clear of all liens, security interests and encumbrances, except any such liens, security interests or encumbrances granted in favor of Buyer on or after the Closing Date under the terms of the Note Purchase Agreement of even date herewith by and among Buyer, as lender and buyer of the Note, and the Company, as borrower (the “LPB Note Purchase Agreement”).  

(i)    The Company’s right, title and interest in, to and under the Lease Agreement as Tenant and the Company’s Leasehold Interest in the Premises and the Leased Equipment under the Lease Agreement is free and clear of all liens, security interests and encumbrances except (i) zoning, entitlement, building and other land use regulations that do not materially impair, prohibit or restrict the occupancy or current or intended use of the Premises, (ii) covenants, conditions, restrictions, easements and other similar matters of record affecting title to the Premises which do not materially impair, prohibit or restrict the occupancy or current or intended use of the Premises, (iii) the principal balance due on the Base Rent payable to Lincoln Savings Bank (“LSB”) under the Lease Agreement, as shown on the amended Base Rent Amortization Schedule attached to the Lease Agreement as Amended Exhibit B pursuant to the First Amendment to Lease Agreement, (iv) the Mortgage Lien in favor LSB to secure repayment of Landlord’s indebtedness to LSB, (v) the Memorandum of Lease, (vi) the SNDA, (vii) the Office Building Sublease, and (viii) any lien or encumbrance that will be satisfied or removed at or prior to the Initial Funding of Assignee’s project Valor financing (each of the foregoing, collectively, the “Permitted Encumbrances”), and except any such liens, security interests or encumbrances in favor of Buyer on or after the Closing Date under the terms of the LPB Note Purchase Agreement.  

Except for the express representations and warranties of Seller set forth in Section 3.1(g), (h) and (i) above, Seller makes no other representations or warranties, express or implied, to Buyer regarding the Valor Facility, the Premises and the Leased Equipment or the condition thereof, the Land (as defined in the Lease Agreement) or any environmental condition or environmental hazard or pollution thereon or therein or the compliance thereof with any environmental laws, rules, regulations, orders, decrees or other governmental or private actions to which the Land is subject, and Seller expressly disclaims any and all such warranties express or implied and any liability to Buyer therefore or in connection therewith.  

Section 3.2.    Representations and Warranties of Buyer.
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Buyer hereby represents and warrants to Seller that the statements contained in this Section 3.2 are correct and complete as of the Closing Date.

(a)    Buyer is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization and in any jurisdiction in which the failure to be qualified would impair its ability to enter into this Agreement or the enforceability of this Agreement.  

(b)    Buyer’s Board of Directors has authorized this Agreement and the purchase of the LPB Ownership Interest hereunder and Buyer has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  

(c)    Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby (including but not limited to the issuance, contribution, sale and distribution of the net proceeds or in-kind distribution of the Closing Stock Capital Contribution in accordance with the Comstock Contribution Agreement and the LPB AR Operating Agreement) will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction or any government, governmental agency, or court to which Buyer is subject or any provision of Buyer’s organizational documents (including the Operating Agreement) or (ii) conflict with, result in a breach of, or constitute a default under (upon the giving of notice or lapse of time or both), result in the acceleration of, or create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which Buyer is a party or by which Buyer is bound.

(d)    Buyer has no liability or other obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for which Seller could become liable.  

ARTICLE IV
[INTENTIONALLY OMITTED]

    
ARTICLE V
POST-CLOSING COVENANTS

    The Parties agree as follows with respect to the period following the Closing:

Section 5.1    Additional Instruments and Further Assurances.  

The Parties agree to cooperate at all times from and after the Closing with respect to any of the matters described herein, and to execute such further deeds, bills of sale, assignments, releases, assumptions, notifications, or other documents or instruments as may be reasonably requested for the purpose of giving effect to, evidencing or giving notice of the purchase and sale transaction contemplated by this Agreement or the agreements of the Parties under this Agreement.  

ARTICLE VI
[INTENTIONALLY OMITTED]

ARTICLE VII
REMEDIES FOR BREACHES OF THIS AGREEMENT
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Section 7.1    Survival of Representations, Warranties and Covenants.

All of the representations, warranties and covenants of the Parties contained in this Agreement shall survive the Closing and continue in full force and effect for a period of two (2) years after the Closing Date and shall thereafter terminate and be of no further force or effect, except that (i) Seller’s representations and warranties set forth under Section 3.1(e) shall survive the Closing indefinitely, (ii) the covenants of the Parties contained in this Agreement with an express covenant period longer than two years shall survive the Closing and continue in full force and effect for the express covenant period, (iii) the respective rights and obligations of the Parties under Sections 7.2, 7.3 and 7.4 shall survive the Closing indefinitely, and (iv) any representation or warranty as to which a claim shall have been asserted during the survival period shall continue in effect with respect to such claim until such claim shall have been finally resolved or settled.  

Section 7.2    Indemnification Provisions for Benefit of Buyer.

Seller agrees to indemnify, defend and hold Buyer harmless from and against all liabilities, obligations, claims, damages, causes of action, and costs and expenses including attorneys fees that are caused by, attributable to, result from or arise out of Seller’s breach of any representation, warranty or covenant of this Agreement; provided, however, that any claim for indemnification under this Section 7.2 with respect to a breach of a representation or warranty must be asserted in a written notice given to Seller on or prior to the expiration of the survival period for the representation or warranty to which the claim relates.

Section 7.3    Indemnification Provisions for Benefit of Seller.

Buyer agrees to indemnify, defend and hold Seller harmless from and against all liabilities, obligations, claims, damages, causes of action, and costs and expenses including attorneys fees that are caused by, attributable to, result from or arise out of (i) Buyer’s breach of any representation, warranty or covenant of this Agreement or (ii) ) the issuance, contribution or sale of the Closing Stock Capital Contribution, including without limitation, any liability of Seller or its managers or members based on claims of statutory underwriter status;  provided, however, that any claim for indemnification under this Section 7.3 with respect to a breach of a representation or warranty or (ii) above must be asserted in a written notice given to Buyer on or prior to the expiration of the survival period for the representation or warranty to which the claim relates.

Section 7.4    Limitations.

Notwithstanding any provision to the contrary, no Party shall be entitled to any punitive, incidental, indirect, special or consequential damages resulting from or arising out of claims made pursuant to this Agreement.  

ARTICLE VIII
[INTENTIONALLY OMITTED]

ARTICLE IX
MISCELLANEOUS

Section 9.1    Press Releases and Public Announcements; Confidentiality.

The Parties agree to treat and hold the material terms of this Agreement as confidential information and no press release or public announcement relating to the subject matter of this Agreement may be made without the prior written approval of Buyer and Seller; provided, however, that any Party may make any public disclosure it believes in good faith is required by applicable law, including the application of the securities laws (in which case the disclosing Party will use its reasonable best efforts to advise the other Parties prior to making the disclosure), and 
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provided further that any Party may disclose the transaction including purchase price contemplated by this Agreement to its members, accountants, attorneys and other professional consultants.  

Section 9.2    No Third Party Beneficiaries.  

    This Agreement shall not confer any rights or remedies upon any person or entity other than the Parties and their respective successors and permitted assigns, except LPN Corporation.  The Parties agree that LPN Corporation is an intended third party beneficiary of this Agreement and shall have the rights and remedies conferred upon the Parties under this Agreement.  

Section 9.3    Entire Agreement.

This Agreement constitutes the entire agreement among the Parties regarding the transactions contemplated hereby and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they related in any way to the subject matter hereof.

Section 9.4    Succession and Assignment.

    This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other Party (which approval shall not be unreasonably withheld).

Section 9.5    Counterparts.

    This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument, and may be executed in whole or part by facsimile counterparts, each of which shall be original if original copies are executed and mailed to the Parties within three business days after sending by facsimile.

Section 9.6    Headings.

    The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

Section 9.7    Notices.

    All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given if (and then two business days after) it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below:

If to Buyer:                

Mr. Corrado DeGasperis                 
COMSTOCK MINING INC.
117 American Flat Road
Virginia City, Nevada 89440

with a copy (which shall not constitute notice) to:

Mr. William McCarthy 
MANA CORPORATION
117 American Flat Road
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Virginia City, Nevada 89440

If to Seller:

Mr. Jim Galvin
LP NUTRITION LLC
300 West Adams Street, Suite 830
Chicago, Illinois   60606

with a copy (which shall not constitute notice) to:

LP BIOSCIENCES LLC
22234 K42
Merrill, Iowa 51038
Attention: President                

    Any Party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein set forth.

Section 9.8    Governing Law.  

    This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

Section 9.9    Amendments and Waivers.  

    No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by each of the Parties. No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

Section 9.10    Severability.  

    Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

Section 9.11    Expenses.  

    Each Party will bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

Section 9.12    Construction.  

    The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the 
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authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including" shall mean including without limitation. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance and must be true on their own terms.  

Section 9.13    Incorporation of Exhibits.

    Any Exhibits identified in this Agreement are incorporated herein by reference and made a part hereof.

Section 9.14    Specific Performance.

    Each of the Parties acknowledges and agrees that the other Parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each of the Parties agrees that the other Parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction over the Parties and the matter (subject to the provisions set forth in Section 9.15 below), in addition to any other remedy to which they may be entitled, at law or in equity.

Section 9.15    Submission to Jurisdiction.

    Each of the Parties submits to the jurisdiction of any state or federal court sitting in the State of Iowa, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court.  Each of the Parties also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other person with respect thereto.  Each of the Parties appoints the person or persons to whom notices are directed in Section 9.7 as its agent to receive on its behalf service of copies of the summons and complaint and any other process that might be served in the action or proceeding.  

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
- SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF the parties have duly executed, or caused their duly authorized representative, to execute this Agreement.
						
	BUYER:	
	COMSTOCK MINING INC.	
		
		
	By:    ___________________________	
	Name:     Corrado DeGasperis	
	Title:    Chief Executive Officer	
		
	SELLER:	
	LP NUTRITION LLC	
		
		
	By:    ___________________________	
	Name:     Jim Galvin	
	Title:    Manager	
		
	COMPANY:	
	LP BIOSCIENCES LLC	
		
		
	By:    ___________________________	
	Name:     Jim Galvin	
	Title:    Manager	
		
		

024 - LPB Partnership Interest Purchase Agreement - CM.20210723 - EXECUTION.docx    10

EXHIBIT A

LPN CONTRIBUTION AGREEMENT

4846-1859-5826\3

EXHIBIT B-1

LPN ASSIGNMENT AND BILL OF SALE (LEASE)

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EXHIBIT B-2

LPB ASSUMPTION AGREEMENT (LEASE)

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EXHIBIT C

LPN ASSIGNMENT AND BILL OF SALE (LLC INTEREST)

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EXHIBIT D

COMSTOCK CONTRIBUTION AGREEMENT

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EXHIBIT E

LPB AMENDED AND RESTATED OPERATING AGREEMENT

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EXHIBIT F

LPN ASSIGNMENT AND BILL OF SALE (LLC INTEREST)

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