Document:

Exhibit 10.2

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED HEREBY, NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE, HAVE BEEN REGISTERED UNDER THE 1933 ACT OR ANY U.S. STATE SECURITIES LAWS AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT, AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE AND FOREIGN SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

	
Issue Date: March 2, 2017

	
Principal Amount: $20,000

 

18% UNSECURED CONVERTIBLE NOTE

	
 

1.

	
 

General

 

1.1 FOR VALUE RECEIVED, REDSTONE LITERARY AGENTS, INC. (the “Company”) promises to pay to OCEANSIDE STRATEGIES INC., having an address at 10 MARKET STREET, #688, CAMANA BAY, CAYMAN ISLANDS KY1-9006 (or its registered assigns) (email: dain.currie@gmail.com, facsimile: 315-814-7862) (the “Holder”), the principal sum of TWENTY THOUSAND DOLLARS ($20,000) in lawful currency of the United States (the 1Principal Amount”) on or before March 2, 2022 (the “Maturity Date”), and to pay interest to the Holder on the Principal Amount at the rate of 18.0% per annum, in accordance with Section 4.

	
 

2.

	
 

Definitions

 

2.1 For the purposes hereof, in addition to the terms defined elsewhere in this Note: (i) capitalized terms not otherwise defined herein have the meanings given to such terms in the Subscription Agreement, and (ii) the following terms shall have the following meanings:

	
 

(a)

	
 

“Business Day” means any day except Saturday, Sunday and any day which is a federal legal holiday in the United States or a day on which banking institutions in the State of California are authorized or required by law or other government action to close;

	
 

(b)

	
 

“Conversion Date” means the Business Day after the Holder provides the Conversion Notice to the Company for the conversion of any portion of the Principal Amount and accrued interest thereon into Conversion Shares pursuant to the terms of this Note;

	
 

(c)

	
 

“Conversion Notice” has the meaning set forth in Section 5.2;

	
 

(d)

	
 

“Conversion Price” means $0.03 per Conversion Share, subject to adjustment as provided in Section 5.7;

	
 

(e)

	
 

“Conversion Share” means a Share into which the Principal Amount, and accrued interest thereon, may be converted pursuant to the terms of this Note;

	
 

(f)

	
 

“Issue Date” has the meaning set forth on the first page of this Note;

	
 

(g)

	
 

“Party” means either the Company or the Holder, as applicable, and “Parties” means both of them;

	
 

(h)

	
 

“Person” means any individual, sole proprietorship, limited or unlimited liability corporation, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, body corporate, joint venture, trust, pension fund, union, governmental authority, and a natural person including in such person’s capacity as trustee, heir, beneficiary, executor, administrator or other legal representative;

	
 

(i)

	
 

“Share” means a share of common stock in the capital of the Company; and

	
 

(j)

	
 

“Subscription Agreement” means the private placement subscription agreement between the Parties dated as of the Issue Date, as amended, modified or supplemented from time to time in accordance with its terms.

	
 

3.

	
 

Subscription Agreement

 

3.1 The Holder has acquired this Note, and this Note has been issued, pursuant to the Subscription Agreement and this Note is subject in all respects to the terms of the Subscription Agreement and incorporates the terms of the Subscription Agreement, provided that, in the event of a conflict between this Note and the Subscription Agreement, the terms of this Note shall prevail.

	
 

4.

	
 

Interest

 

4.1 The Company agrees to pay interest to the Holder on the Principal Amount at the rate of 18.0% per annum, compounded annually. Interest will be payable on the earlier of: (a) the Maturity Date, (b) any Conversion Date, and (c) the date that all amounts owing under this Note are prepaid by the Company in accordance with Section 7. Interest shall be calculated on the basis of a 365-day year and shall accrue daily, commencing on March 2, 2017, until payment in full of the Principal Amount and all other amounts that may become owing under this Note.

	
 

5.

	
 

Conversion

 

5.1 The Parties agree that the Principal Amount, plus any accrued interest thereon, will, at the election of the Holder, be convertible into Conversion Shares subject to the limitations set forth in this Note. Notwithstanding anything to the contrary contained in this Note, this Note shall not be convertible by the Holder, and the Company shall not effect any conversion of this Note or otherwise issue any Conversion Shares pursuant hereto, to the extent (but only to the extent) that, after giving effect to such conversion, the Holder or any of its affiliates would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the issued and outstanding Shares after such conversion. To the extent the above limitation applies, the determination of whether this Note shall be convertible (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities shall be convertible, exercisable or exchangeable (as among all such securities owned by the Holder and its affiliates) shall, subject to the Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be). No prior inability to convert this Note or to issue Conversion Shares pursuant to this Section 5.1 shall have any effect on the applicability of the provisions of this Section 5.1 with respect to any subsequent determination of convertibility. For purposes of this Section 5.1, beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the ”1934 Act”) and the rules and regulations promulgated thereunder. The provisions of this Section 5.1 shall only be implemented in a manner otherwise than in strict conformity with the terms of this Section 5.1 to correct this Section 5.1 (or any portion 

 

2

 

hereof) which may be defective or inconsistent with the intended Maximum Percentage limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to the Maximum Percentage limitation. The limitations contained in this Section 5.1 shall apply to a successor holder of this Note. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one Business Day confirm orally and in writing to the Holder the number of Shares then outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable securities into Shares, including, without limitation, pursuant to this Note. By written notice to the Company, the Holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that: (a) any such increase will not be effective until the 61st day after such notice is delivered to the Company, and (b) any such increase or decrease will apply only to the Holder sending such notice.

 

5.2 In order to effect any conversion under this Note and subject to the limitations set forth in this Note, the Holder must provide written notice (the “Conversion Notice”) to the Company setting out the portion of the Principal Amount, and accrued interest thereon, that is to be converted into Conversion Shares.

 

5.3 The number of Conversion Shares issuable upon conversion of the Principal Amount to be converted shall be determined by the quotient obtained by dividing (x) by (y) where (x) is equal to the Principal Amount to be converted and (y) is the Conversion Price.

 

5.4 The number of Conversion Shares issuable upon conversion of any accrued and outstanding interest on this Note shall be determined by the quotient obtained by dividing (x) by (y) where (x) is equal to the amount of accrued interest on the Principal Amount to be converted and (y) is the Conversion Price.

 

5.5 Not later than five Business Days after any Conversion Date, the Company will deliver to the Holder a certificate representing the Conversion Shares (bearing such legends as may be required by applicable law) representing the aggregate number of Conversion Shares being acquired.

 

5.6 Upon any conversion hereunder, the Company shall not be required to issue any fraction of a Conversion Share, and the number of Conversion Shares shall be rounded down to the nearest whole number.

 

5.7 If the Company, at any time while this Note is outstanding: (a) subdivides outstanding Shares into a larger number of Shares, (b) combines (including by way of reverse split) outstanding Shares into a smaller number of Shares, or (c) issues, by reclassification of Shares, any equity securities of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of Shares outstanding before such event and the denominator shall be the number of Shares outstanding after such event. Any adjustment made pursuant to this Section 5.7 shall become effective after the effective date of such subdivision, combination or re‐classification.

	
 

6.

	
 

Repayment

 

6.1 Payment of this Note (less any tax required to be withheld by the Company) shall be paid to the Holder by the Company by cheque, wire transfer or such other method as may be mutually agreed to by the Parties from time to time.

	
 

7.

	
 

Prepayment

 

7.1 Subject to Sections 5 and 7 of this Note, the Company shall pay to the Holder the Principal Amount, and accrued interest thereon, in cash on the Maturity Date. The Company may, at any time prior to the Maturity Date, upon ten calendar days’ prior written notice to the Holder (a “Prepayment Notice”), prepay any portion of the Principal Amount and accrued interest thereon, without the prior written consent of the Holder, provided that at the time of such prepayment the Holder is able to convert all amounts being prepaid without exceeding the Maximum Percentage.

 

7.2 The Prepayment Notice shall set forth the date on which prepayment is to occur, such date being no earlier than ten calendar days after the date of the Prepayment Notice and no later than the Maturity Date (in any case, the “Prepayment Date”), and shall set forth that portion of the Principal Amount to be prepaid, along with the calculated accrued interest thereon, as through and including the Prepayment Date (the “Prepayment Amount”).

 

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7.3 The Prepayment Amount (less any tax required to be withheld by the Company) shall be paid to the Holder by the Company by cheque, wire transfer or such other method as may be mutually agreed to by the Parties from time to time. The mailing of such cheque, or payment by other means, by the Company on or before the Prepayment Date shall be deemed to be payment on the Prepayment Date unless the cheque is not paid upon presentation, or payment by such other means as may be mutually agreed to by the Parties is not received prior to the Prepayment Date. If only a part of the Principal Amount is to be prepaid, a new certificate for the balance of the Principal Amount shall be issued at the expense of the Company and delivered to the Holder, together with the cheque representing the Prepayment as provided for in this Section 7.3.

 

7.4 At any time after a Prepayment Notice is given, the Company shall have the right to deliver to the Holder, or to such other Person as may be directed by the Holder, the Prepayment Amount. Upon the delivery of the Prepayment Amount to the Holder being made, or upon the Prepayment Date, whichever is later, the Note shall be, and be deemed to be, paid and the rights of the Holder shall be limited to receiving, without interest, the amount so deposited. Any interest allowed on such deposit shall accrue to the Company.

	
 

8.

	
 

Event of Default

 

8.1 For the purposes of this Note, the Company shall be in default upon the occurrence of any one or more of the following events (each such event being, an “Event of Default”):

	
 

(a)

	
 

the Company defaults in the payment of any amounts owing under this Note when due and the Company fails to cure such default within ten (10) Business Days after written notice of default is sent by the Holder to the Company;

	
 

(b)

	
 

the Company fails to issue the Conversion Shares within ten (10) Business Days after a Conversion Notice is delivered to the Company;

	
 

(c)

	
 

the Company files a voluntary petition in bankruptcy or is adjudicated bankrupt or insolvent, or files any petition or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors; or seeks, consents to, or acquiesces in, the appointment of any trustee, receiver or liquidator of the Company;

	
 

(d)

	
 

a court of competent jurisdiction enters an order, judgment or decree approving a petition filed against the Company seeking any reorganization, dissolution or similar relief under any present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors, and such order, judgment or decree remains unvacated and unstayed for an aggregate of 60 Business Days (whether or not consecutive) from the first date of entry thereof; or any trustee, receiver or liquidator of the Company is appointed without the consent or acquiescence of the Company and such appointment remains unvacated and unstayed for an aggregate of 60 Business Days (whether or not consecutive); or

	
 

(e)

	
 

the Company ceases or threatens to cease to carry on its business.

 

8.2 If any Event of Default occurs, subject to any cure period, the full Principal Amount, together with interest thereon accrued to the date of the Event of Default, shall become, at the Holder’s election, immediately due and payable in cash.  Upon payment of the full Principal Amount, together with accrued interest and any other amounts owing under this Note, this Note shall promptly be surrendered to or as directed by the Company.  The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, and 

 

4

 

the Holder may immediately, subject to any cure period, enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law.  Such declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder and the Holder shall have all rights as a Note holder until such time, if any, as the full payment of amounts owing under this Note shall have been received by it.  No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

	
 

9.

	
 

Notices

 

9.1 Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Conversion Notice, shall be in writing, addressed to the Company, and delivered personally or by facsimile, email or overnight courier service to: 3250 Oakland Hills Court, Fairfield, CA 94534; Email: jgeiskopf@aol.com, Attn: Jimmy Geiskopf, or such other email address or physical address as the Company may notify the Holder of from time to time in accordance with Section 9.2.

 

9.2 Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing, addressed to the Holder, and delivered personally or by facsimile, email or overnight courier service to the address of the Holder appearing on the first page of this Note, or such other address as the Holder may notify the Company of from time to time in accordance with Section 9.1.

 

9.3 Any notice or other communication or delivery hereunder shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered by facsimile or email transmission prior to 5:30 p.m. (Pacific Standard Time) on a Business Day, (b) the second Business Day following the date of mailing, if sent by overnight courier service, or (c) upon actual receipt by the Party to whom such notice is required to be given.

	
 

10.

	
 

Replacement of Note if Lost or Destroyed

 

If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the balance outstanding at such time with respect to the Principal Amount, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Company.

	
 

11.

	
 

Governing Law

 

All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts of law thereof.

	
 

12.

	
 

Waivers

 

Any waiver by a Party 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 a Party 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.

	
 

13.

	
 

Usury

 

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 violates applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest.

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14.

	
 

Next Business Day

 

Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment or other obligation shall be made on the next succeeding Business Day.

 

 

 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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15.

	
 

Counterparts and Electronic Means

 

This Note may be executed in counterparts, each of which, when so executed and delivered, will constitute an original, and all of which together will constitute one instrument. Delivery of an executed copy of this Note by email transmission or other means of electronic communication capable of producing a printed copy, will be deemed to be execution and delivery of an original copy of this Note as of the Issue Date.

 

IN WITNESS WHEREOF, the Parties have caused this Note to be duly executed as of the Issue Date.

	
REDSTONE LITERARY AGENTS, INC.

 

Per: /s/ James Geiskopf                                                        

        Authorized Signatory

 

Name:  James P. Geiskopf

	
OCEANSIDE STRATEGIES, INC.

  

 

Per: /s/ Dain Currie                                                     

      Authorized Signatory

 

Name:  Dain Currie

7Exhibit

Exhibit 10.1
HI-CRUSH PARTNERS LP
2017 UNIT PURCHASE PROGRAM 
ENROLLMENT AGREEMENT
The Hi-Crush Partners LP 2017 Unit Purchase Program (the “UPP”) is a voluntary program that provides Eligible Participants the opportunity to purchase common units representing limited partner interests (“Units”) in Hi-Crush Partners LP (“HCLP”) at a discount. You can use this Enrollment Agreement to (a) enroll in the UPP, (b) decrease your level of payroll deductions or installment contributions, as applicable, (c) withdraw a portion or all of your accumulated contributions then credited to your UPP Account, or (d) fully withdraw from participation in the UPP.  Your execution of this Enrollment Agreement does not create a binding agreement with HCLP until it is executed by HCLP.  By enrolling in the UPP, you acknowledge receipt of this Enrollment Agreement, the attached Terms and Conditions (the “Terms and Conditions”), and HCLP’s First Amended and Restated Long Term Incentive Plan (the “LTIP” and, together with this Enrollment Agreement and the Terms and Conditions, collectively, the “UPP Documents”) and agree to be bound by the terms hereof and thereof.  Capitalized terms used but not defined herein have the meanings set forth in the Terms and Conditions.
Section 1. Actions
	
		
	Action (check one box only):
	Then Complete Sections:

	☐ New Enrollment

	2, 6

	☐ Payroll Deduction or Installment Contribution Decrease

	3, 6

	☐ Return of Contributions

	4, 6

	☐ Full Withdrawal from Participation in the UPP

	5, 6

Section 2. Election to Participate and Enroll; Payroll Deduction Authorization or Contribution Election
I hereby elect to participate in the UPP and subscribe to purchase Units in accordance with the UPP Documents.  I authorize HCLP to enroll me in the UPP.  
		
	(a)
	To be completed by an Eligible Participant other than one described in Sections 2(b) or 2(c):

I hereby authorize my Employer to deduct from my Compensation that is paid by the Employer each pay period during the Offering Period an amount equal to the following percentage of my Compensation (referred to herein as the “Contribution Rate”) and to transfer such amount deducted to HCLP to be held by HCLP in accordance with the terms of the UPP.  I understand that an amount equal to each payroll deduction will be credited to my notional UPP Account established for me under the UPP and that I may not make additional contributions to this account. I understand that if I do not either fully withdraw from participation in the UPP or become ineligible to participate in the UPP during the Offering Period, then any accumulated payroll deductions then credited to my UPP Account will be used to automatically purchase Units on the Purchase Date at the applicable Purchase Price determined in accordance with the Terms and Conditions, limited to 20,000 Units and subject to the other exceptions set forth therein. 
Contribution Rate: _______% (from 1% - 35%, in whole-percentage increments only).
I understand that this election will remain in effect for the entire Offering Period unless I decrease the authorized level of payroll deductions, fully withdraw from participation in the UPP, or become ineligible to participate in the UPP.  I understand that I may not increase the level of payroll deductions.
I understand that on or before May 11, 2018, I may decrease my rate of payroll deductions only once.  To do so I must submit a new Enrollment Agreement authorizing the new rate of payroll deductions to the Committee.

		
	(b)
	To be completed by an Eligible Participant who, as of March 10, 2017, is a non-employee member of the Board of Directors:

I elect to make contributions to HCLP under the UPP in the following amount(s) not to exceed $150,000 in the aggregate (check one box below). I understand that an amount equal to each contribution made will be credited to my notional UPP Account established for me under the UPP and that I may not make additional contributions to this account. I understand that if I do not either fully withdraw from participation in the UPP or become ineligible to participate in the UPP during the Offering Period, then any accumulated contributions then credited to my UPP Account will be used to automatically purchase Units on the Purchase Date at the applicable Purchase Price determined in accordance with the Terms and Conditions, limited to 20,000 Units and subject to the other exceptions set forth therein.
	
	
	☐  Contribution amount of $_________________, to be contributed in full on the March 13, 2017 Election Date.  If I fail to pay my contribution, I understand that I shall be deemed to have fully withdrawn from participation in the UPP in accordance with Section 5 below.

	☐ Two installments of $_________________ each, to be contributed on or before March 13, 2017 and December 1, 2017 (referred to herein as an “Installment Amount”).  I understand that this election will remain in effect for the entire Offering Period unless I decrease my Installment Amount, fully withdraw from participation in the UPP, or become ineligible to participate in the UPP.  I understand that on or before November 27, 2017, I may decrease the level of my second Installment Amount only once.  To do so I must submit a new Enrollment Agreement authorizing the new level of my second Installment Amount.  I understand that I may not increase the level of my second Installment Amount.  If I fail to pay my first Installment Amount, I understand that I shall be deemed to have fully withdrawn from participation in the UPP in accordance with Section 5 below.  If I fail to pay my second Installment Amount, I understand that I shall be deemed to have decreased my Installment Amount to $0 in accordance with Section 3(b) below.

		
	(c)
	To be completed by an Eligible Participant who, after March 10, 2017 but on or before November 27, 2017, is a non-employee member of the Board of Directors:

      I elect to make a contribution to HCLP under the UPP in the following amount, not to exceed $150,000.  I understand that an amount equal to such contribution will be credited to my notional UPP Account established for me under the UPP and that I may not make additional contributions to this account. I understand that if I do not either fully withdraw from participation in the UPP or become ineligible to participate in the UPP during the Offering Period, then any accumulated contributions then credited to my UPP Account will be used to automatically purchase Units on the Purchase Date at the applicable Purchase Price determined in accordance with the Terms and Conditions, limited to 20,000 Units and subject to the other exceptions set forth therein.

Contribution amount of $_________________, to be contributed in full on the December 1, 2017 Election Date.  If I fail to pay my contribution, I understand that I shall be deemed to have fully withdrawn from participation in the UPP in accordance with Section 5 below.

Section 3. Payroll Deduction or Installment Contribution Decrease
		
	(a)
	To be completed by an Eligible Participant other than one described in Section 3(b):

Effective ________________ , 20__, I authorize the following new Contribution Rate for payroll deductions under the UPP, which represents a decrease from my current level of payroll deductions:
New Contribution Rate: ________% (from 0% - 34%, in whole-percentage increments only).  I understand that by making this change in my Contribution Rate I may not decrease my Contribution Rate again during the Offering Period unless I fully withdraw from participation in the UPP.  I understand that if I decrease my Contribution Rate to 0%, I may not restart my contributions under the UPP.  I understand that if I decrease my Contribution Rate to 0% and withdraw 100% of the accumulated contributions then credited to my UPP Account, I will be deemed to have fully withdrawn from participation in the UPP as described in Section 5 below.

		
	(b)
	To be completed by an Eligible Participant who, as of March 10, 2017, was a non-employee member of the Board of Directors:

Effective ________________ , 20__, I authorize the following new level for my second Installment Amount under the UPP, which represents a decrease from my current level of Installment Amount:
New Installment Amount of $____________________, to be contributed on or before December 1, 2017.  I understand that by making this change in my second Installment Amount I may not decrease my Installment Amount again during the Offering Period unless I fully withdraw from participation in the UPP.  I understand that if I decrease my Installment Amount to $0 and withdraw 100% of my accumulated contributions then credited to my UPP Account, I will be deemed to have fully withdrawn from participation in the UPP as described in Section 5 below. 
Section 4. Return of Accumulated Contributions
Effective as of _____________________, 20___, I direct HCLP to deduct $____________________ from the amount credited to my UPP Account, which represents no more than 100% of the amount now credited to my UPP Account, and pay such amount to me by check or in such other manner as HCLP and I agree.
I understand that on or before May 11, 2018, I may request return of an amount then credited to my UPP Account, which amount returned to me will reduce the amount of my UPP Account and will reduce the number of Units I will be able to purchase under the UPP.  I understand that the requested amount will be paid to me as soon as administratively practicable following HCLP’s receipt and acceptance of my new, properly completed Enrollment Agreement.  
I understand that if I withdraw 100% of the accumulated contributions then credited to my UPP Account and decrease my Contribution Rate to 0% or Installment Amount to $0, as applicable, I will be deemed to have fully withdrawn from participation in the UPP as described in Section 5 below. 
Section 5. Full Withdrawal from Participation in the UPP
Effective _____________, 20___, I fully withdraw from participation in the UPP.
I understand that I may fully withdraw from participation in the UPP on or before May 11, 2018 by properly completing a new Enrollment Agreement that is accepted by HCLP.  I further understand that if I fully withdraw from participation in the UPP, (a) all amounts then credited to my UPP Account will be paid to me as soon as administratively practicable following HCLP’s receipt and acceptance of my new, properly completed Enrollment Agreement, (b) my current contributions under the UPP will cease and I may not resume participation in the UPP, and (c) no Units will be purchased on my behalf on the Purchase Date.
Section 6. Agreement
I understand and agree that HCLP may, in its sole discretion, deliver any documents related to my participation in the UPP by electronic means. I hereby consent to receive such documents by electronic delivery and to participate in the UPP through any on-line system established or maintained by HCLP or any other person designated by HCLP.
I hereby agree to be bound by the terms of the UPP as set forth in the UPP Documents. I understand that the effectiveness of this Enrollment Agreement is dependent on my eligibility to participate in the UPP. In the event of an inconsistency between this Enrollment Agreement and the Term and Conditions, the Terms and Conditions shall govern.
By executing this Enrollment Agreement, I acknowledge that:
		
	•
	I understand that the UPP is governed by and will be administered in accordance with the UPP Documents.  I acknowledge that I have read and understand the terms of the UPP Documents and agree to all of the terms and conditions set forth therein.

		
	•
	I have consulted with my own tax advisor regarding the tax consequences of participating in the UPP and the sale of Units purchased under the UPP.

[Signature Pages Follow]

In Witness Whereof, the undersigned Eligible Participant has executed this Enrollment Agreement, which will become effective and binding after approval by the Committee and as of the date of the countersignature of HCLP below.
	
	
	________________________________ 
Employee's Signature

	________________________________ 
Print Employee's Name

	________________________________  
Employee ID Number

Acceptance by HCLP of Eligible Participant’s Enrollment Agreement election after Committee approval:
	
	
	

________________________________ 
Name:  
Title:
Date: ___________________________ _

[Signature Page to Employee Enrollment Agreement for the 2017 Unit Purchase Program]

HI-CRUSH PARTNERS LP
2017 UNIT PURCHASE PROGRAM 
TERMS AND CONDITIONS
The purpose of the Hi-Crush Partners LP 2017 Unit Purchase Program (“UPP”) is to provide Eligible Participants an opportunity to purchase Units of Hi-Crush Partners LP (“HCLP”) at a discount.  The UPP is a program offered under HCLP’s First Amended and Restated Long Term Incentive Plan (the “LTIP”).  The terms and conditions of the UPP are set forth herein and in the LTIP to which the UPP is subject.    
ARTICLE I
DEFINITIONS
Section 1.01 “Affiliate” means, with respect to HCLP, any other entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, HCLP. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
Section 1.02  “Board of Directors” means the Board of Directors of Hi-Crush GP LLC, the general partner of HCLP.
Section 1.03 “Code” means the Internal Revenue Code of 1986, as amended.
Section 1.04 “Compensation” means (a) for a Participant who is a salaried employee, such Participant’s base salary paid by the Employer, and shall not include any other compensation or other amounts paid by the Employer or any of its Affiliates including, without limitation, any commissions, bonuses, equity compensation, or welfare benefits, and (b) for a Participant who is an hourly employee, such Participant’s hourly pay plus overtime pay, plus shift differential pay, plus holiday pay plus any paid time off including bereavement pay or jury duty pay but excluding bonuses, commissions, and welfare benefits. 
Section 1.05 “Election Date” means (a) March 13, 2017, for an individual who is an Eligible Participant on March 10, 2017, and (b) December 1, 2017, for an individual who becomes an Eligible Participant after March 10, 2017 and on or before November 27, 2017.
Section 1.06 “Eligible Participant” means each employee, including a part-time employee, of any Employer, and each non-employee member of the Board of Directors; provided that the term “Eligible Participant” shall not include (a) an employee who terminates employment with all Employers prior to Purchase Date for any reason, including, without limitation, due to death or disability, or (b) a non-employee member of the Board of Directors who terminates service on the Board of Directors prior to Purchase Date for any reason, including, without limitation, due to death or disability.
 
Section 1.07 “Employer” means HCLP and each Affiliate of HCLP.
Section 1.08 “Enrollment Agreement” means the instrument prescribed by the Committee pursuant to which an Eligible Participant may enroll in the UPP, subject to acceptance by HCLP, as a Participant and elect to purchase Units on the terms and conditions offered by HCLP under the UPP.  The Enrollment Agreement, once fully accepted and executed by HCLP, is intended to evidence HCLP’s offer under the LTIP of a purchase right to the Eligible Participant to purchase Units on the terms and conditions set forth therein and herein; provided, however, in the event of a conflict between the Enrollment Agreement and these Terms and Conditions, these Terms and Conditions shall control.
Section 1.09 “Fair Market Value” means the closing sales price for a Unit as reported on New York Stock Exchange (or another national securities exchange on which HCLP is listed, if HCLP ceases to be listed on the New York Stock Exchange) for the date of reference. If there was no such price reported for the date of reference, “Fair Market Value” means the closing sales price for the Unit on the day immediately preceding the date of reference for which such price was reported or, if there was no such reported price, the fair market value of a Unit as determined by the Committee.
Section 1.10 “Maximum Deduction Amount” means, unless otherwise adjusted by the Committee, 35% of each payment of Compensation paid by an Employer to, or on behalf, of a Participant during the Offering Period.
Section 1.11 “Offering Period” means the period beginning on the applicable Election Date and ending on May 18, 2018, during which the Participant’s accumulates funds through payroll deduction accumulations or other contributions permitted under Section 2.04(b) to purchase Units through the purchase rights provided through the LTIP and UPP.

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Section 1.12 “Participant” means each Eligible Participant who:
(a) elects to participate in the UPP in accordance with Article II; and
(b) has not otherwise ceased to be eligible to participate in the UPP or otherwise voluntarily elected to cease his or her participation in the UPP and has not otherwise requested and received all funds held on account of the Participant in the UPP.
Section 1.13 “Purchase Date” means May 23, 2018.
Section 1.14 “Purchase Price” means the purchase price for Units purchased under the UPP, determined as set forth in Section 3.01 below.
Section 1.15 “Trading Date” means a day on which the New York Stock Exchange is open for trading.
Section 1.16 “Unit” means a common unit representing a limited partner interest in HCLP.
Section 1.17 “UPP Account” means the bookkeeping account maintained by the Committee that reflects the amount of payroll deductions or other contributions to the UPP credited on behalf of a Participant under the UPP.
 
ARTICLE II
PARTICIPATION
Section 2.01 Initial Participation.  Effective as of the Election Date applicable to such Eligible Participant, an Eligible Participant may elect to participate in the UPP, subject to HCLP’s acceptance, by properly executing an Enrollment Agreement and filing such Enrollment Agreement with the Committee, or its delegate, at such time in advance of the applicable Election Date as the Committee shall prescribe.  The terms of the Enrollment Agreement shall be established by the Committee.  
Section 2.02 Continuation of Participation.
(a)   The Enrollment Agreement shall remain in effect until it is modified through full withdrawal from participation in the UPP pursuant to Section 2.03 below, otherwise changed pursuant to Section 2.04 below or the individual covered by the Enrollment Agreement ceases to be an Eligible Participant.
(b)   A Participant who is on a leave of absence approved by an Employer (and is not a Participant who is a non-employee member of the Board of Directors) may continue to participate in the UPP during the leave of absence only to the extent such Participant continues to receive Compensation, which is sufficient to satisfy the payroll deductions and any other legally required deductions or withholding obligations, as the Committee may determine in its sole and absolute discretion.

Section 2.03 Full Withdrawal from Participation.
(a)   A Participant may voluntarily fully withdraw from participation in the UPP at any time on or before May 11, 2018 by submitting a new Enrollment Agreement to the Committee that is accepted by the Committee.  If a Participant fully withdraws from participation in the UPP, such Participant’s payroll deductions or other contributions permitted by Section 2.04(b) shall cease and such Participant may not make additional contributions to the UPP and may not be reinstated as a Participant in the UPP at any time, the funds held for the Participant under the UPP shall be distributed to the Participant as soon as administratively practicable following the Committee’s receipt and acceptance of the new, properly completed Enrollment Agreement, and no purchase of Units shall be made for such Participant under the UPP.  
(b)   If a Participant ceases to be an Eligible Participant at any time before the Purchase Date, including due to death of the Participant, such Participant shall be deemed to have fully withdrawn from participation in the UPP effective on the date such individual ceases to be an Eligible Participant.  Such Participant’s payroll deductions or other contributions permitted by Section 2.04(b) shall cease and such Participant may not make any contributions to the UPP and may not be reinstated as a Participant at any time, including if the Eligible Participant is later rehired.  The amount then credited to such Participant’s UPP Account shall be distributed to the Participant or the Participant’s estate, in the case of the Participant’s death, as soon as administratively practicable following the date such individual ceases to be an Eligible Participant, and no purchase of Units shall be made for such Participant under the UPP.
 

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Section 2.04 Payroll Deductions Contributions and Other Permitted Contributions; Decreases in Contributions; Return of Contributions.
(a)   To participate in the UPP, each Participant, other than those individuals described in Section 2.04(b), shall authorize his or her Employer to make after-tax payroll deductions from his or her Compensation paid during the Offering Period for the purpose of funding the purchase of Units pursuant to his or her Enrollment Agreement. In the Enrollment Agreement, each such Participant shall authorize the applicable Employer to deduct a percentage of each payment of Compensation paid by the Employer during the Offering Period to the Participant, which shall be in one percent (1%) increments and may not exceed the Maximum Deduction Amount; provided that the number of Units purchased for such Participant on the Purchase Date shall be subject to the 20,000 Unit purchase limit set forth in Section 3.02(b).  Any such Participant may, one time only, on or before May 11, 2018, decrease his or her rate of payroll deductions by submitting a new Enrollment Agreement authorizing the new rate of payroll deductions.  The decrease shall become effective as soon as administratively practicable following receipt and acceptance of the new Enrollment Agreement by the Committee or its delegate. 
(b)   Each Participant who, as of March 10, 2017, is a non-employee member of the Board of Directors, may elect to contribute a dollar amount of contributions to the UPP not to exceed $150,000 in the aggregate, subject to the 20,000 Unit purchase limit set forth in Section 3.02(b), either as one lump sum payment on the March 13, 2017 Election Date or in two equal installments made on March 13, 2017 and December 1, 2017.   Any such Participant electing to pay in two installments may, one time only, on or before November 27, 2017, decrease his or her level of installment contributions by submitting a new Enrollment Agreement to the Committee authorizing the new level of installment contributions. The decrease shall become effective as soon as administratively practicable following receipt and acceptance of the new Enrollment Agreement by the Committee or its delegate. Each Participant who, after March 10, 2017 but on or before November 27, 2017, becomes a non-employee member of the Board of Directors, may elect to contribute a dollar amount to the UPP not to exceed $150,000, subject to the 20,000 Unit purchase limit set forth in Section 3.02(b), as one lump sum payment on the December1, 2017 Election Date.
(c)   Any Participant may request the return of up to 100% of the amount then credited to such Participant’s UPP Account at any time on or before May 11, 2018 by submitting a new Enrollment Agreement to the Committee authorizing the return of such amount.  Any Participant requesting a return of 100% of the amount then credited to such Participant’s UPP Account and decreasing such Participant’s rate of payroll deductions to 0% or level of installment contributions to $0, as applicable, shall be deemed to be fully withdrawing from participation in the UPP as described under Section 2.03(a).
 
 
     Section 2.05  Accounting for Funds.  As of each payroll deduction period, or other contribution date described in Section 2.04(b), HCLP shall cause to be credited to the Participant’s UPP Account in a ledger established for that purpose the funds deducted from and attributable to the Participant’s Compensation for that period or otherwise contributed to the UPP as described in Section 2.04(b).  No interest shall be credited to the Participant’s UPP Account or to any amounts returned to the Participant or his estate under the UPP at any time.  The obligation of HCLP to the Participant for this UPP Account shall be a general corporate obligation and shall not be funded through a trust nor secured by any assets which would cause the Participant to be other than a general creditor of the HCLP.

ARTICLE III
UNIT PURCHASE AND DISTRIBUTION
Section 3.01 Purchase Price of Units. The purchase price per Unit to be sold by HCLP to Participants on the Purchase Date under the UPP shall be 85% of the Fair Market Value of such Unit on the Participant’s applicable Election Date (the “Purchase Price”).
 
Section 3.02 Exercise of Purchase Privilege.
(a)   As of the first day of the Offering Period, each Participant shall be granted a purchase right under the LTIP to purchase Units at the Purchase Price specified in Section 3.01 above. The purchase right shall continue in effect through the Purchase Date unless the Participant ceases to be a participant in the UPP. On the Purchase Date, each Participant shall automatically be deemed to have exercised his or her purchase right to purchase Units; provided, that if the Fair Market Value per Unit on the Purchase Date is less than the Purchase Price for such 

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Participant, the Participant’s purchase right to purchase Units shall not be deemed to be exercised, and all funds received or held under the UPP on behalf of such Participant shall be returned to such Participant as soon as administratively possible
(b)   Subject to Section 3.02(a), there shall be purchased for the Participant on the Purchase Date, at the Purchase Price, the largest number of whole Units as can be purchased with the amounts credited on the Purchase Date to the Participant’s UPP Account; provided that the total number of Units purchased for each Participant shall be capped at 20,000 Units.  For the avoidance of doubt, fractional Units shall not be purchased.
(c)   In the event that any amounts that are attributable to a Participant’s deductions or contributions remain after the purchase of Units on the Purchase Date, such amounts shall be returned to the Participant as soon as administratively practicable by check or in such other manner as agreed by HCLP and the Participant.
 
 
Section 3.03 Reservation of Units. The aggregate number of Units that may be purchased under the UPP shall not exceed 800,000 of the Units reserved under the LTIP.  If, on the Purchase Date, the aggregate funds of all Participants available for the purchase of Units would otherwise permit the purchase of a number of Units in excess of 800,000 Units (or such lesser number of Units as may then remain available under the LTIP), then the Committee shall allocate the available Units pro rata among the Participants in accordance with each Participant’s UPP Account balance.
Section 3.04 Payment for Units. The Purchase Price for all Units purchased by a Participant under the UPP shall be paid only to the extent of the amount credited to the Participant’s UPP Account on the Purchase Date.  All funds received or held under the UPP are general assets of HCLP, shall be held free of any trust requirement or other restriction, and may be used for any partnership purpose of HCLP.
Section 3.05 Unit Ownership.  The Units purchased by a Participant on the Purchase Date shall, for all purposes, be deemed to have been issued or sold at the close of business on the Purchase Date. Prior to that time, none of the rights or privileges of a unitholder of HCLP shall inure to the Participant with respect to such Units.
ARTICLE IV
MISCELLANEOUS
Section 4.01 LTIP.  Purchase rights for Units granted under the UPP constitute Other Unit Based Awards authorized pursuant to Section 6(f) of the LTIP and are subject to all of the terms and conditions of the LTIP applicable to purchase rights granted under the LTIP.  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the LTIP.
Section 4.02 Internal Revenue Code and ERISA Considerations. The UPP is neither intended to constitute an “employee stock purchase plan” within the meaning of section 423 of the Code nor intended to be construed as constituting an “employee benefit plan,” within the meaning of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.
 
Section 4.03 Headings, Captions, Gender. The headings and captions herein are for convenience of reference only and shall not be considered as part of the text. The masculine shall include the feminine, and vice versa. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may read as the plural and the plural as the singular.

Section 4.04 Administration of the UPP.  The Committee has the responsibility for the general administration of the UPP, and has all powers necessary to accomplish that purpose, including but not limited to all of those powers, authority and rights set forth in Section 3 of the LTIP which shall be applicable with respect to the Committee’s administration of the UPP.

Section 4.05 Amendment and Termination of the UPP.  The Committee may amend the UPP or waive conditions or rights relating to purchase rights granted under the UPP to the extent permitted pursuant to the LTIP.  The UPP shall terminate immediately after the Purchase Date, unless earlier terminated by the Board of Directors.  If the UPP is terminated prior to the Purchase Date, any amounts then credited to each Participant’s UPP Account will be returned to such Participant as soon as administratively practicable.

Section 4.06 UPP Not An Employment Contract.  The adoption and maintenance of the UPP is not a contract between any Employer and its Participants which gives any Participant the right to be retained in its employment.  Likewise, it is not intended to interfere with the rights of any Employer to discharge any Participant at any time or to interfere with the Participant’s right to terminate the Participant’s employment at any time.

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Section 4.07 Purchase Rights Are Not Transferable.  No purchase right granted to a Participant under the UPP is transferable by the Participant, and must be exercisable, during the Participant’s lifetime, only by the Participant.  In the event any Participant attempts to violate the terms of this Section 4.07, any purchase right held by the Participant shall be terminated by HCLP and, upon return to the Participant of the remaining funds in the credited to the Participant’s UPP Account, all of the Participant’s rights under the UPP will terminate.

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