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SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE SUCH TERMS ARE NOT MATERIAL AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***)

Exhibit 10.2

SECOND AMENDMENT TO MASTER PRODUCT PURCHASE AGREEMENT AND SECOND AMENDMENT TO RAILCAR USAGE AGREEMENT

This Second Amendment to Master Product Purchase Agreement and Second Amendment to Railcar Usage Agreement (the “Amendment”) is entered into on September 28, 2020, by and between Smart Sand, Inc., a Delaware corporation (“Smart Sand”), and Rice Drilling B LLC, a Delaware limited liability company (“Buyer”).

Recitals

Whereas, Smart Sand and Buyer have entered into (i) a Master Product Purchase Agreement, dated effective as of January 1, 2017, as amended by a First Amendment to Master Product Purchase Agreement and First Amendment to Railcar Usage Agreement, dated June 21, 2019 (as amended, the “PPA”), and (ii) a Railcar Usage Agreement, dated effective as of January 1, 2017, as amended by a First Amendment to Master Product Purchase Agreement and First Amendment to Railcar Usage Agreement, dated June 21, 2019  (as amended, the “RUA”, and together with the PPA, the “Agreements”);

Whereas, Smart Sand and Buyer desire to amend the PPA and RUA; and

Whereas, pursuant to Section 15.1 of the PPA and Section 8 of the RUA, the Agreements may not be changed or amended except by a writing executed by both parties.

Now, Therefore, in consideration of the foregoing recitals and the mutual promises set forth herein, sufficiency of which is acknowledged by the undersigned, the Buyer and Smart Sand hereby agree as follows:

1.         Amendment to the PPA.  The PPA shall be amended as follows:

            1.1       The table contained in Section 1.1 of the PPA shall be deleted in its entirety and restated as follows:
						
	Contract Year
	Minimum
Tons per Year

	1
	***

	2
	***

	3
	***

	4
	***

	5
	***

            1.2       The first three sentences of Section 2.1 of the PPA shall be deleted in its entirety and restated as follows:

“The pricing for each of the Products for each Contract Year shall be as set forth on Appendix C attached hereto and incorporated by reference (“Contract Price”).  The parties agree that all Products ordered by Buyer will be loaded onto Buyer or Smart Sand supplied railcars (which Smart Sand railcars shall consist of up to *** railcars for Products), and shipped as specified in the purchase order, provided, however, that (i) Buyer agrees to comply with all freight scheduling mechanisms and timeframes designated by Smart Sand in writing to Buyer from time to time, and (ii) all railcars and trucks supplied by Buyer will be set up to receive unpackaged Products, and (iii) delivery of the Products shall occur upon the transfer of Products into the applicable railcar or truck, as the case may be, via a delivery chute. Delivery will be, and all prices are quoted, FCA Smart Sand’s rail spur facility located in Oakdale, Wisconsin, or such other Smart Sand facility as determined by Smart Sand, Incoterms 2010; provided, however, that notwithstanding anything to the contrary set forth in this Agreement, at the request of Buyer and subject to transload availability, as determined by Smart Sand in its sole discretion, Products may be delivered DAP Tidewater’s transload facility in Steubenville, Ohio (the “Terminal”), Incoterms 2010.   All Products delivered to the Terminal shall count towards satisfying the Minimum Tons per Year under the PPA. Buyer must pay in full for any order for Products to be delivered to the Terminal that is subsequently cancelled if Smart Sand has ordered locomotive power for such order and provided written notice and supporting documentation to Buyer that it has ordered such locomotive power, in each case, prior to Smart Sand’s receipt of notification of such cancellation.”

1.3       The following shall be added to the end of Section 5 of the PPA:
“Irrespective of where the Products are being delivered, all testing for Specifications shall occur at Smart Sand’s Oakdale, Wisconsin facility.”

            1.4       The reference in Section 4.2 of the PPA to “December 31, 2020” shall be deleted in its entirety and replaced with “December 31, 2021”.

1.5       The reference in Section 7.1 of the PPA to “Contract Year 4” shall be deleted in its entirety and replaced with “Contract Year 5”.

1.6       The reference in Section 12 of the PPA to “James D. Young” in the contact information for Fox Rothschild LLP shall be deleted in its entirety and replaced with “Vincent A. Vietti”.

1.7       The following shall be added to Appendix C as a new subparagraph 4):

“The Contract Price for Products shipped to the Terminal shall be $***/ton, which amount is, notwithstanding anything to the contrary contained in the Agreement, (i) inclusive of ***; and (ii) not subject to any annual percentage increase. The foregoing price does not include ***, all of which shall be paid by Buyer. The Contract Price set forth in this paragraph (a) shall not be used for calculating the Deferment Payment under Section 1.4 of the PPA, and (b) is contingent upon shipment of unit trains having ***. In the event that a shipment of Products to the Terminal will be less than *** (“Railcar Underage”), and such Railcar Underage will result in a higher Contract Price for such shipment, then in such case, (x) if (and only if) Buyer approves the Contingency Notice (as defined below), the Contract Price set forth in this paragraph shall be adjusted upwards by ***; and (y) Smart Sand shall notify Buyer in writing at least twenty-four (24) hours prior to such shipment departing from Smart Sand’s production facility (“Contingency Notice”), which Contingency Notice shall set forth ***, together with reasonable supporting documentation thereof.  Within twenty-four (24) hours of its receipt of the Contingency Notice, Buyer may provide written notice to Smart Sand of Buyer’s election to (1) cancel the applicable shipment, (2) receive the applicable shipment and pay ***, or (3) add a number of additional railcars to eliminate the Railcar Underage.  In the event that Buyer fails to provide such written notice to Smart Sand 

within such twenty-four (24) hour period, then in such case, Buyer shall be deemed to have cancelled the applicable shipment.    
            The Contract Price for delivery to the Terminal includes all of the rail freight charges and fees (including rail fuel surcharges) currently assessed by Smart Sand’s rail carrier for the shipment of Products (the “Base Rail Charge”). If following the date hereof, the Base Rail Charge is increased by Smart Sand’s rail carrier for the shipment of Products to the Terminal (such charge, the “New Rail Charge”), then, following Smart Sand’s provision of written notice and reasonable supporting documentation of such increase to Buyer, the Contract Price shall be adjusted by an amount equal to the difference between the New Rail Charge per ton and the Base Rail Charge per ton.”

2.         Amendment to the RUA.  The RUA shall be amended as follows:

            2.1       Section B of the Recitals of the RUA shall be deleted in its entirety and replaced with the following:

“B.       Smart Sand and Borrower desire to provide for the terms under which Smart Sand will dedicate to Borrower, and Borrower may use, up to *** railcars from Smart Sand’s fleet of railcars during the period ending upon termination or expiration of the PPA.”

2.2       Section 1.A of the RUA shall be deleted in its entirety and replaced with the following:
“A.       Borrower may use Smart Sand’s railcars dedicated from Smart Sand’s fleet, solely for the purpose of shipping frac sand pursuant to the PPA from Smart Sand’s designated sand mining and processing facilities (each, a “Facility” and collectively, the “Facilities”).  As consideration for the usage of railcars, during the Term, Borrower shall pay to Smart Sand $*** per ton of Products purchased or required to be purchased under the PPA, other than for Products that are delivered DAP or DAT to a rail terminal, Incoterms 2010. Borrower understands that the dedicated railcars will be interchangeable with other railcars in Smart Sand’s railcar fleet in Smart Sand’s sole discretion.”

2.3       The reference to “December 31, 2020” in Section 2 of the RUA shall be deleted and replaced with “December 31, 2021”.

3.         General Provisions.

3.1       Defined Terms.  Capitalized terms used and not defined herein shall have those definitions as set forth in the Agreements.

            3.2       Successors and Assigns.  The terms and conditions of this Amendment shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.  Nothing in this Amendment, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Amendment, except as expressly provided in this Amendment.

3.3       Counterparts; Facsimile.  This Amendment may be executed and delivered by facsimile or pdf signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

3.4       Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

3.5       No Other Changes.  Except as expressly amended by this Amendment, all of the terms of the Agreements shall remain in full force and effect.

3.6       Entire Agreement.  This Amendment, the Agreements and the agreements and documents referred to herein, together with all the Exhibits hereto and thereto, constitute the entire agreement and understanding of the parties with respect to the subject matter of this Amendment, and supersede any and all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.

In Witness Whereof, the parties hereto have executed this Second Amendment to Master Product Purchase Agreement and Second Amendment to Railcar Usage Agreement as of the date first written above.

SMART SAND, INC.

By:      /s/ John Young                        
Name:  John Young
Title:   COO

RICE DRILLING B, LLC

By:      /s/ Toby Rice                           
Name:  Toby Rice
Title:   President & CEODocument

Exhibit 10.3

EXECUTION VERSION

FIRST AMENDMENT TO ABL CREDIT AGREEMENT 

This FIRST AMENDMENT TO ABL CREDIT AGREEMENT, dated as of July 8, 2020 (this “Amendment”), is entered into by and among SMART SAND, INC., a Delaware corporation (“Parent”), each Subsidiary (as defined in the Credit Agreement referred to below) of Parent party to the Credit Agreement as a “Borrower” (each, a “Borrower” and collectively, the “Borrowers”), each Subsidiary Guarantor party to the Credit Agreement (each a “Guarantor” and collectively, the “Guarantors”), the Lenders, and JEFFERIES FINANCE LLC, as agent (in such capacity, including any successor thereto, the “Agent”) for the Lenders, and is made with reference to the Credit Agreement referred to below.

PRELIMINARY STATEMENTS

WHEREAS, the Borrowers, Subsidiary Guarantors, Parent, the Lenders party thereto, and the Agent previously entered into that certain ABL Credit Agreement dated as of December 13, 2019 (as amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”); and

WHEREAS, the Borrowers have requested that the Agent and the Lenders make certain amendments to the Credit Agreement which Agent and the Lenders have agreed to make, subject to the terms and provisions set forth in this Amendment.

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.Definitions.  Except as otherwise defined herein, capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

SECTION 2.Additional Definitions.  Section 1.01 to the Credit Agreement is hereby amended by adding thereto, in addition and not in limitation, the following defined terms:

(a)“Amendment No. 1” shall mean the First Amendment to ABL Credit Agreement, dated as of July 8, 2020, by and among the Borrower, the Guarantors party thereto, the Agent and the Lenders party thereto.

(b)“Amendment No. 1 Effective Date” shall mean July 8, 2020.

(c)“Reinstatement Date” shall have the meaning assigned to such term in the definition of “Applicable Margin”.

SECTION 3.Amendment to the Definition of Applicable Margin.  The definition of “Applicable Margin” as set forth in Section 1.01 to the Credit Agreement is hereby amended and restated in its entirety as follows: 
““Applicable Margin” shall mean, for any day, with respect to Revolving Loans (a) 1.00%, in the case of ABR Loans, and (b) 2.00%, in the case of Eurodollar Loans; provided that from the Amendment No. 1 Effective Date until the date that clause (p) of the definition of Eligible Receivables as set forth in Section 1.01 of the Credit Agreement is reinstated in the determination of whether any Receivable is an Eligible Receivable (such date being referred to as the “Reinstatement Date”), the “Applicable Margin” shall be, for any day, with respect to Revolving Loans (A) 2.50%, in the case of ABR Loans, and (B) 3.50%, in the case of Eurodollar Loans.”

SECTION 4.Amendment to the Definition of Eligible Receivables.  Clause (p) of the definition of “Eligible Receivables” as set forth in Section 1.01 to the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(p)      (i) in the case of any single Customer and its Affiliates, such Receivables constitute more than 50% of all otherwise Eligible Receivables (but the portion of the Receivables not in excess of such percentage may be deemed Eligible Receivables); and (ii) in the case of any two Customers and their Affiliates, such Receivables constitute, in the aggregate, more than 75% of all otherwise Eligible Receivables (but the portion of the Receivables not in excess of such percentage may be deemed Eligible Receivables); provided that from the Amendment No. 1 Effective Date until September 30, 2020, or such later date as the Agent may elect, the eligibility criteria set forth in this clause (p) shall not apply in the determination of whether any Receivable is an Eligible Receivable;”

SECTION 5.Maximum Amount of Cash Permitted to be Retained by Loan Parties.  The Loan Parties covenant and agree that, if the Loan Parties have an average amount of cash and cash equivalents in excess of $4,000,000 in the aggregate during any five (5) consecutive Business Day period from and after the Amendment No. 1 Effective Date, then the Borrowers shall repay the Revolving Loans in the amount of such excess on the immediately following Business Day; provided that (i) all payments made pursuant to this Section 5 shall be made without premium or penalty and (ii) no payments by the Borrowers pursuant to Section 2.16 of the Credit Agreement shall be required in connection with any prepayment made as a result of this Section 5.

SECTION 6.Conditions to Effectiveness.  This Amendment shall become effective only upon the satisfaction of all of the following conditions precedent:

a.the Agent, each Loan Party and Lenders shall have executed this Amendment, and each such Loan Party and Lender shall have delivered its executed counterpart to this Amendment to the Agent; and

b.the Borrowers shall have paid to the Agent all fees, costs and expenses incurred by the Agent in connection with the preparation, execution and delivery of this Amendment (including, without limitation, reasonable attorneys’ fees).

SECTION 7.Representations and Warranties.  In order to induce the Agent and the Lenders to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, each Loan Party hereby represents and warrants to the Agent and the Lenders that, on and as of the Amendment No. 1 Effective Date:
a.(i) each Loan Party has the power and authority to execute, deliver this Amendment and perform its obligations under this Amendment and the Credit Agreement, (ii) this Amendment has been duly authorized by all requisite corporate, partnership, limited liability company, and, if required, stockholder, partner or member action, as applicable, of each Loan Party, and (iii) this Amendment has been duly executed and delivered by each Loan Party;
b.this Amendment constitutes a legal, valid and binding obligation of each Loan Party enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;
c.each Loan Party’s execution, delivery and performance of this Amendment and each Loan Party’s performance of the Credit Agreement (i) will not violate any provision of the certificate or articles of incorporation or certificate of formation or other constitutive documents or by-laws, partnership agreement or limited liability company agreement of such Loan Party, (ii) (A) any provision of law, statute, rule or regulation, (B) any order of or undertaking with any Governmental Authority or (C) any provision of any indenture, agreement or other instrument to which any Loan Party is a party or by which any of them or any of their property is bound, except such violation as could not reasonably be expected to have a Material Adverse Effect, (iii) will not be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation under any such indenture, agreement or other instrument, except where the consequences thereof could not reasonably be expected to have a Material Adverse Effect, or (iv) will not require any consent or approval of, registration or filing with, certificate, certification, permit, license or authorization from, or any other action by any Governmental Authority, in each case, except for (A) such as have been made or obtained and are in full force and effect and (B) those, which the failure to obtain could not reasonably be expected to have a Material Adverse Effect;
d.at the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing or would result therefrom; and
e.the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document are true and correct in all material respects on and as of the Amendment No. 1 Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date; provided that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language is (or was) true and correct (after giving effect to any qualification contained therein) in all respects.

SECTION 8.Reference to and Effect on the Credit Agreement.
a.Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Agent, any Lender or any Secured Party under the Credit Agreement or any Loan Documents, and shall not alter, modify, amend or in any way affect any of the Obligations or any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or of any Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the Obligations or any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any Loan Documents in similar or different circumstances.

b.On the Amendment No. 1 Effective Date, the Credit Agreement shall be amended as provided herein.  On and after the Amendment No.1 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import referring to the Credit Agreement, and each reference in the Loan Documents to the “Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.  The parties hereto acknowledge and agree that:  (i) this Amendment and any other document or instrument executed and delivered in connection herewith do not constitute a novation or termination of the Obligations as in effect prior to the Amendment No.1 Effective Date; (ii) the Obligations are in all respects continuing with only the terms thereof being modified to the extent provided in this Amendment; and (iii) the guarantees and the Liens and security interests as granted or purported to be granted under or pursuant to the Credit Agreement and the Loan Documents securing payment of the Obligations are in all such respects continuing in full force and effect and secure the payment of the Obligations as provided therein.

SECTION 9.Severability.  In the event any one or more of the provisions contained in this Amendment should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

SECTION 10.Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract, and shall become effective as provided in Section 6.  Delivery of an executed signature page to this 

Amendment by facsimile or other customary means of electronic transmission, including by PDF file, shall be as effective as delivery of a manually signed counterpart of this Agreement.

SECTION 11.Successors and Assigns.  Whenever in this Amendment any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of Loan Parties, Agent, the Issuing Banks or the Lenders that are contained in this Amendment shall bind and inure to the benefit of their respective permitted successors and assigns.

SECTION 12.Governing Law; Miscellaneous.  This Amendment, and the rights and obligations of the parties under this Amendment, shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.  The provisions of Sections 9.07, 9.11 and 9.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis, and shall apply with like effect to this Amendment as if fully set forth herein.

SECTION 13.Headings.  Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.

[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized officers as of the day and year first above written.

SMART SAND, INC., as Parent, a Borrower and Administrative Loan Party 

By:                  /s/ Lee E. Beckelman                          
            Name:  Lee E. Beckelman
            Title:    Chief Financial Officer

SMART SAND OAKDALE LLC, as a Borrower

By:      SMART SAND, INC., its sole Member 

By:                  /s/ Lee E. Beckelman              
            Name: Lee E. Beckelman
            Title:   Chief Financial Officer

QUICKTHREE TECHNOLOGY, LLC, as a Borrower

By:      SMART SAND, INC., its sole Member 

By:                  /s/ Lee E. Beckelman              
            Name: Lee E. Beckelman
            Title:   Chief Financial Officer

SSI BAKKEN I, LLC, as a Borrower

By:      SMART SAND, INC., its sole Member 

By:                  /s/ Lee E. Beckelman              
            Name: Lee E. Beckelman
            Title:   Chief Financial Officer

SMART SAND HIXTON LLC, as a Subsidiary Guarantor

By:      SMART SAND, INC., its sole Member 

By:                  /s/ Lee E. Beckelman              
            Name: Lee E. Beckelman
            Title:   Chief Financial Officer

FAIRVIEW CRANBERRY COMPANY, LLC., as a Subsidiary Guarantor

By:      SMART SAND, INC., its Manager 

By:                  /s/ Lee E. Beckelman              
            Name: Lee E. Beckelman
            Title:   Chief Financial Officer

WILL LOGISTICS, LLC., as a Subsidiary Guarantor

By:      SMART SAND, INC., its Manager

By:                  /s/ Lee E. Beckelman              
            Name: Lee E. Beckelman
            Title:   Chief Financial Officer

AGENT:

JEFFERIES FINANCE LLC, as sole Lender and as Agent 

By:                    /s/ J.R. Young                                   
Name:  J.R. Young
Title:    Managing Director

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