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iddr_ex103.htm

EXHIBIT 10.3
 
STOCK PLEDGE AGREEMENT
 
THIS STOCK PLEDGE AGREEMENT (as may be amended, restated or modified from time to time, this “Pledge Agreement”), dated as of June 17, 2016 is made by and between Arend Dirk Verweij, as pledgor (the “Pledgor”), R & T Sports Marketing, Inc., a Florida corporation (the “Pledgee”), and Legal & Compliance, LLC, as escrow agent (“Escrow Agent”).
 
WITNESSETH:
 
WHEREAS, pursuant to that certain 10% Secured Promissory Note of even date herewith (the “Note”), the Pledgee has loaned (the “Loan”) to Iddriven, Inc., a Nevada corporation (the “Borrower”), up to $100,000, with the specific amount to be determined at Closing as set forth in that certain Securities Purchase Agreement of even date herewith; 
 
WHEREAS, as of the date hereof, the Pledgor is the registered and/or beneficial owner, or in control of, 17,910,000 shares of common stock of the Borrower (the “Shares”);
 
WHEREAS, in order to induce the Pledgee to make the Loan, the Pledgor has agreed to pledge (the “Pledge”), as security for the obligations of the Borrower to the Pledgee as set forth in the Note (the “Obligations”), a portion of the Pledgor’s right, title and interest in and to the Shares (the “Pledged Shares”). In the event that the Note is funded for $100,000, then the Pledged Shares shall be for all of the Shares; however, if the Note is funded for less than $100,000, then the Pledged Shares shall be reduced proportionately. For example, if the Pledgee funds $50,000 pursuant to the Note, then the Pledged Shares shall be for 8,995,000 Shares; 
 
NOW, THEREFORE, in consideration of the premises set forth above, the covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Pledgor and the Pledgee agree as set forth below:
 
SECTION 1. Defined Terms. Except as otherwise defined herein, terms defined in the Note shall have the same meaning when used herein. 
 
SECTION 2. Grant of Security. 
 
(a) As security for the Borrower’s obligations set forth in the Note, the Pledgor hereby grants to the Pledgee a first priority lien on and a first priority security interest in the following (collectively, the “Pledged Collateral”):
 
(i) the Pledged Shares and all capital, revenue, profit, income, gain or other property or proceeds, return on contribution or otherwise with respect to the Pledged Shares;
 
(ii) all securities, moneys or property representing dividends or interest on any of the Pledged Shares, or representing a distribution in respect of the Pledged Shares, or resulting from a split-up, revision, reclassification or other like change of the Pledged Shares or otherwise received in exchange therefor, and any subscription warrants, rights or options issued to the holders of, or otherwise in respect of, the Pledged Shares; 
 
	 
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(iii) all right, title and interest of Pledgor in, to and under any policy of insurance payable by reason of loss or damage to the Pledged Shares;
 
(iv) all other payments due or to become due to the Pledgor in respect of the Pledged Shares whether under any organizational document or otherwise, whether as contractual obligations, damages or otherwise; and
 
(v) all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof.
 
(b) Simultaneously with the execution of the Note and this Agreement (the “Transaction Documents”), the Pledgor shall deliver to the Escrow Agent stock certificates representing the Shares (the “Transfer Documents”), and such stock certificates and Transfer Documents shall be held by the Escrow Agent until the full payment of all amounts due to the Pledgee under the Note and through repayment in accordance with the terms of the Note, or the termination or expiration of this Agreement.
 
(c) In addition to the remedies set forth in Section 5, below, upon the occurrence of an Event of Default (as defined in Section 5 below), the Pledgee shall be entitled to vote the Pledged Shares, to receive dividends and other distributions thereon, and to enjoy all other rights and privileges incident to the ownership of the Pledged Shares.
 
(d) Upon the payment of all amounts due to the Pledgee under the Note by repayment in accordance with the terms of the Note, the parties hereto shall notify the Escrow Agent to such effect in writing. Upon receipt of such written notice for payment of the amounts due to the Pledgee under the Note, the Escrow Agent shall return to the Pledgor the Pledged Shares and the certificates representing the Pledged Shares, whereupon any and all rights of Pledgee in the Pledged Shares shall be terminated. Notwithstanding anything to the contrary contained herein, upon full payment of all amounts due to the Pledgee under the Note, by repayment in accordance with the terms of the Note, this Agreement and Pledgee's security interest and rights in and to the Pledged Shares shall terminate.
 
SECTION 3. Representations and Warranties. The Pledgor represents and warrants that:
 
(a) it is the legal and beneficial owner of, and has good and marketable title to, the Shares, subject to no pledge, lien, mortgage, hypothecation, security interest, charge, option or other encumbrance whatsoever, except the lien and security interest created and contemplated by this Pledge Agreement;
 
(b) it has full power, authority and legal right to execute, deliver and perform its obligations under this Pledge Agreement and to create the lien and security interest contemplated by this Pledge Agreement; and
 
(c) this Pledge Agreement constitutes a valid obligation of the Pledgor, legally binding upon him and enforceable in accordance with its terms.
 
	 
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SECTION 4. Covenants. The Pledgor hereby covenants that during the continuance of this Pledge Agreement:
 
(a) he shall warrant and defend the right and title of the Pledgee conferred by this Pledge Agreement in and to the Shares at the cost of the Pledgor against the claims and demands of all persons whomsoever;
 
(b) he shall not sell, assign, transfer, charge, pledge or encumber in any manner any part of the Shares or suffer to exist any encumbrance on the Shares;
 
SECTION 5. Remedies. At any time after the occurrence of an “Event of Default” (as defined in the Note) that has not yet been cured as set forth in the Note, Pledgee shall provide written notice of such Default (the "Default Notice") to the Escrow Agent, with a copy to the Pledgor. As soon as practicable after receipt of the Default Notice, the Escrow Agent shall deliver to Pledgee the Pledged Shares held by the Escrow Agent hereunder, whereupon Pledgee may exercise all rights and remedies of a secured party with respect to such property as may be available under the Uniform Commercial Code as in effect in the State of Florida.
 
SECTION 6. Application of Proceeds. All moneys collected or received by the Pledgee pursuant to this Pledge Agreement shall be applied to payment of the Borrowers obligation under the Note.
 
SECTION 7. Concerning the Escrow Agent. The Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no implied duties or obligations shall be read into this Agreement against the Escrow Agent. The Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do so. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner, and execution, or validity of any instrument deposited in this escrow, nor as to the identity, authority, or right of any person executing the same; and its duties hereunder shall be limited to the safekeeping of such certificates, monies, instruments, or other document received by him as such escrow holder, and for the disposition of the same in accordance with the written instruments accepted by him in the escrow. Pledgee and the Pledgor hereby agree, to defend and indemnify the Escrow Agent and hold him harmless from any and all claims, liabilities, losses, actions, suits, or proceedings at law or in equity, or any other expenses, fees, or charges of any character or nature which he may incur or with which he may be threatened by reason of his acting as Escrow Agent under this Agreement; and in connection therewith, to indemnify the Escrow Agent against any and all expenses, including attorneys' fees and costs of defending any action, suit, or proceeding or resisting any claim . The Escrow Agent shall be vested with a lien on all property deposited hereunder, for indemnification of attorneys' fees and court costs regarding any suit, proceeding or otherwise, or any other expenses, fees, or charges of any character or nature, which may be incurred by the Escrow Agent by reason of disputes arising between the makers of this escrow as to the correct interpretation of this Agreement and instructions given to the Escrow Agent hereunder, or otherwise, with the right of the Escrow Agent, regardless of the instructions aforesaid, to hold said property until and unless said additional expenses, fees, and charges shall be fully paid. Any fees and costs charged by the Escrow Agent for serving hereunder shall be paid by the Pledgor. The Escrow Agent may resign upon ten (10) days' written notice to the parties in this Agreement. If a successor Escrow Agent is not appointed within this ten (10) day period, the Escrow Agent may petition a court of competent jurisdiction to name a successor.   
    
	 
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SECTION 8. Miscellaneous.
 
8.1 Further Assurances. The Pledgor agrees that if this Pledge Agreement shall, in the reasonable opinion of the Pledgee, at any time be deemed by the Pledgee, for any reason, insufficient in whole or in part to carry out the true intent and spirit hereof, it shall execute or cause to be executed such other documents or deliver or cause to be delivered such further assurances as in the opinion of the Pledgee may be required in order to more effectively accomplish the purposes of this Pledge Agreement including, without limitation, an alternative pledge or such other alternative security as the Pledgee shall require.
 
8.2 Remedies Cumulative and Not Exclusive; No Waiver. Each and every right, power and remedy herein given to the Pledgee shall be cumulative and shall be in addition to every other right, power and remedy of the Pledgee now or hereafter existing at law, in equity or by statute, and each and every right, power and remedy, whether herein given or otherwise existing, may be exercised from time to time, in whole or in part, and as often and in such order as may be deemed expedient by the Pledgee, and the exercise or the beginning of the exercise of any right, power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy. No failure, delay or omission by the Pledgee in the exercise of any right or power or in the pursuance of any remedy accruing upon any breach or default by the Pledgor shall impair any such right, power or remedy or be construed to be a waiver of any such right, power or remedy or to be an acquiescence therein; nor shall the acceptance by the Pledgee of any security or of any payment of or on account of any of the amounts due from the Pledgor to the Pledgee and maturing after any breach or default or of any payment on account of any past breach or default be construed to be a waiver of any right with respect to any future breach or default or of any past breach or default not completely cured thereby. In addition to the rights and remedies granted to it in this Pledge Agreement and in any other instrument or agreement securing, evidencing or relating to any of the Obligations, the Pledgee shall have rights and remedies of a secured party under the UCC.
 
8.3 Successors and Assigns. This Pledge Agreement and all obligations of the Pledgor hereunder shall be binding upon the successors and assigns of the Pledgor and shall, together with the rights and remedies of the Pledgee hereunder, inure to the benefit of the Pledgee, its respective successors and assigns.
 
8.4 Waiver; Amendment. None of the terms and conditions of this Pledge Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by the Pledgor and the Pledgee.
 
8.5 Invalidity. If any provision of this Pledge Agreement shall at any time, for any reason, be declared invalid, void or otherwise inoperative by a court of competent jurisdiction, such declaration or decision shall not affect the validity of any other provision or provisions of this Pledge Agreement, or the validity of this Pledge Agreement as a whole and, to the fullest extent permitted by law, the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Pledgee in order to carry out the intentions of the parties hereto as nearly as may be possible. The invalidity and unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 
 
	 
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8.6 Notices. All notices of request, demand and other communications hereunder shall be addressed, sent and deemed delivered in accordance with the Note, including delivery of any such notices or communications to the Borrower on behalf of the Pledgor, which Pledgor hereby agrees and acknowledges shall be valid and effective notice to the Pledgor hereunder.
 
8.7 Counterparts; Electronic Delivery. This Pledge Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute one and the same instrument. Delivery of an executed counterpart of this Pledge Agreement by facsimile or electronic transmission shall be deemed as effective as delivery of an originally executed counterpart. In the event that the Pledgor delivers an executed counterpart of this Pledge Agreement by facsimile or electronic transmission, the Pledgor shall also deliver an originally executed counterpart as soon as practicable, but the failure of the Pledgor to deliver an originally executed counterpart of this Pledge Agreement shall not affect the validity or effectiveness of this Pledge Agreement.
 
8.8 References. References herein to Sections, Exhibits and Schedules are to be construed as references to sections of, exhibits to, and schedules to, this Pledge Agreement, unless the context otherwise requires.
 
8.9 Headings. In this Pledge Agreement, Section headings are inserted for convenience of reference only and shall not be taken into account in the interpretation of this Pledge Agreement.
 
8.10 Termination. When all of the Obligations shall have been fully satisfied, the Pledgee agrees that it shall forthwith release the Pledgor from its Obligations hereunder and the Pledgee, at the request and expense of the Pledgor, shall promptly execute and deliver to the Pledgor a proper instrument or instruments acknowledging the satisfaction and termination of this Pledge Agreement, and the Irrevocable Proxies shall terminate forthwith and be delivered to the Pledgor forthwith together with the other items furnished to the Pledgee pursuant to this Pledge Agreement.
 
8.11. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Pledge Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Florida without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by the Pledge Agreement and any of the other agreements referenced herein (the “Transaction Documents”)(whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in Broward County, Florida (the “Florida Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Florida Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Florida Courts, or such Florida Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.
 
	 
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IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed the day and year first above written.
 
 
	 
	PLEDGOR:
 
/s/ Arend D. Verweij
Arend Dirk Verweij
 
PLEDGEE:
 
R & T Sports Marketing, Inc.:
 
By: /s/ Daniel Kaplan
Name: Daniel Kaplan
Title: President
 
ESCROW AGENT:
 
Legal & Compliance, LLC
 
By:/s/ Laura E. Anthony
Laura E. Anthony, for the firm 
 

 
 
 
 
	6EX-4.2

 Exhibit 4.2 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN PLEDGED AS
COLLATERAL PURSUANT TO THAT CERTAIN STOCKHOLDER RIGHTS AGREEMENT, DATED AS OF SEPTEMBER 13, 2011 BY AND AMONG SMART SAND, INC. AND THE PARTIES THERETO, AND MAY NOT BE OFFERED, SOLD, EXCHANGED, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT AS PROVIDED
IN SUCH AGREEMENT. 
  

			
	Warrant No. 1	  	September 13, 2011

 SMART SAND, INC. 

Common Stock Purchase Warrant 
 Smart
Sand, Inc., a Delaware corporation (the “Company”), for value received, hereby certifies that Keystone Cranberry, LLC (the “Registered Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company, (i) on and following an Exercise Event and prior to the Expiration Date, 1,181,818 shares, and (ii) on and following a Second Tranche Failure to Fund Exercise Event and prior to the Expiration Date, up to the Open Warrants
Number of Shares, in each case as adjusted from time to time pursuant to the provisions of this warrant, of Common Stock of the Company (the “Common Stock”), at a purchase price of $0.01 per share (the “Purchase
Price”). The shares purchasable upon exercise of this Common Stock Purchase Warrant (this “Warrant”), as adjusted from time to time pursuant to the provisions of this Warrant, are sometimes hereinafter
referred to as the “Warrant Stock”. Terms left undefined in this Warrant shall have the meanings ascribed to them in that certain Securities Purchase Agreement dated as of September 13, 2011, among the Company and the
other parties thereto (the “Securities Purchase Agreement”). All share numbers used herein reflect a 3,500 for 1 stock split, effected pursuant to that certain Amended and Restated Certificate of Incorporation of the
Company, which was filed with the Secretary of State of the State of Delaware prior to the issuance of this Warrant. 

1.    Exercise. 

1.1    Right to Exercise. This Warrant shall be exercisable, in whole or in part, on and after
the earlier of (i) the Performance Incentive Determination Date, (ii) the Change in Control Exercise Time, and (iii) the Qualified Market Cap Date each as defined below, and prior to the Expiration Date (each referred to as an “Exercise
Event”). In addition, this Warrant shall be exercisable, in whole or in part, up to the Open Warrants Number of Shares, upon a Second Tranche Failure to Fund Exercise Event prior to the Expiration Date. 

 A “Change in Control” shall mean the occurrence of any of the following:

 (a)    at any time prior to the third year anniversary of the date of issuance of this Warrant a transaction or
series of related transactions in which the stockholders of the Company immediately before any such transaction do not retain immediately after such transactions direct or indirect beneficial ownership of more than fifty percent (50%) of the total
outstanding shares of Common Stock; 
 (b)    at any time, a transaction or series of related transactions in which (A)
the stockholders of the Company immediately before any such transaction do not retain immediately after such transactions direct or indirect beneficial ownership of at least sixty percent (60%) of the total outstanding shares of Common Stock, and
(B) such transaction(s) implies a valuation of the outstanding shares of Common Stock of at least $300 million, provided that if such transaction is in connection with an Initial Public Offering (as defined below), the Change in Control Exercise
Time shall be based on the Qualified Market Cap Date. 
 (c)    at any time prior to the third year anniversary of the
date of issuance of this Warrant, the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties
or assets of Company and its subsidiaries taken as a whole, to any “person” or “persons” (as that term is defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended); or 

(d)    at any time, the adoption of a plan relating to the liquidation or dissolution of the Company (other than in
connection with a transaction addressed in any of clauses (i) through (iii)). 
 The “Change in Control Exercise
Time” shall mean the time immediately prior to the Company’s consummation of a Change in Control. 

“EBITDA” shall mean the net income, calculated in accordance with U.S. Generally Accepted Accounting Principles, set
forth on the Company’s monthly financial statements delivered pursuant to Section 7.1 of that certain Stockholder Rights Agreement dated as of September 13, 2011 (the “Stockholder Rights Agreement”) adjusted to exclude
interest, taxes, depreciation, and amortization. 
 A “Second Tranche Failure to Fund Exercise Event” shall mean the
time at which there is a Second Tranche Failure to Fund Event, as defined in the Securities Purchase Agreement. 
 “Open Warrants
Number of Shares” shall mean the maximum number of shares of Warrant Stock issuable pursuant to this Warrant, multiplied by (A) 26 million less the number of dollars funded in all prior Second Tranche Fundings, if any, divided by
(B) 26 million. 

  
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 The “Performance Incentive Determination Date” shall mean the date upon
which the Company has achieved EBITDA in excess of the Target EBITDA over any twenty-four (24) month period; provided, that in the event the Board of Directors, including each Preferred Director do not agree on EBITDA and the Performance
Incentive Determination Date within 30 days of good faith negotiation with respect thereto, then each shall be determined by a third party financial expert that is mutually agreeable to a Warrant Holder Majority Interest and the Preferred Majority
Interest (the “Third Party”), whose decision shall be binding on the parties (with the cost of the Third Party’s valuation services with respect thereto paid by the Company). 

The “Qualified Market Cap Date” shall mean the date immediately following the twentieth (20th) consecutive trading day
on which the Common Stock is actively traded on a national securities exchange with a closing price per share of Common Stock such that the aggregate market value of such shares of Common Stock is at least $300 million for each of the twenty (20)
trading days. 
 The “Target EBIDTA” shall mean: 

(i)    $120 million, if there has not been of a Third Tranche Failure to Fund Event, as defined in the Securities
Purchase Agreement; and 
 (ii)    if there has been a Third Tranche Failure to Fund Event, the number of dollars equal
to: (a) one (1) minus ((A) the number of dollars that remain available for request as Third Tranche Fundings (calculated as 27 million less the Third Tranche Fundings provided by holders of Preferred Stock and their Affiliates, irrespective of
whether funds have been obtained under Section 1.1.(c)(v) of the Securities Purchase Agreement), divided by (B) 75 million), multiplied by (b) 120 million. 

The “Warrant Holder Majority Interest” shall mean the holders of this Warrant and identical warrants having the right
to receive a majority of the shares of Common Stock issuable upon the full exercise of such warrants. 

1.2    Manner of Exercise. This Warrant may be exercised by the Registered Holder,
in whole or in part, by surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit A, duly executed by the Registered Holder or by the Registered Holder’s duly authorized attorney, at the
principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of the Purchase Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise. The
Purchase Price may be paid by cash, check, wire transfer or by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder. In addition, unless the Registered Holder is already a
party to the Stockholder Rights Agreement, upon any exercise of this Warrant, the Registered Holder shall execute and deliver to the Company a Joinder Agreement to the Stockholder Rights Agreement causing the Registered Holder to become a party
thereto. 
 1.3    Effective Time of Exercise. Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business on the day on which this 

  
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Warrant shall have been surrendered to the Company as provided in Section 1(b) above. At such time, the person or persons in whose name or names any certificates for Warrant Stock
shall be issuable upon such exercise as provided in Section 1(d) below shall be deemed to have become the holder or holders of record of the Warrant Stock represented by such certificates. 

1.4    Delivery to Registered Holder. As soon as practicable after the exercise of
this Warrant in whole or in part, and in any event within ten (10) business days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as the Registered Holder (upon payment by the
Registered Holder of any applicable transfer taxes) may direct: 
 (a)    a certificate or certificates for the number
of shares of Warrant Stock to which the Registered Holder shall be entitled, and 
 (b)    in case such exercise is in
part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect to any adjustment therein) to the number of such
shares called for on the face of this Warrant minus the number of such shares purchased by the Registered Holder upon such exercise as provided in Section 1(a) above. 

2.    Adjustments. 

2.1    Stock Splits and Dividends. If the outstanding shares of Common Stock shall be
subdivided into a greater number of shares or a dividend in Common Stock shall be paid in respect of Common Stock, the Purchase Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with
the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding shares of Common Stock shall be combined into a smaller number of shares, the Purchase Price in effect
immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment is required to be made in the Purchase Price, the number of shares of Warrant Stock
purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares of Warrant Stock issuable upon the full exercise of this Warrant immediately prior to such adjustment,
multiplied by the Purchase Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment.

2.2    Reclassification, Etc. In case of any reclassification or change of the
outstanding securities of the Company or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on
or after the date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time after the consummation of such reclassification, change, reorganization, merger or conveyance, shall be entitled to receive, in
lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consummation, the stock or other securities or property to which such holder would have been entitled upon such consummation if such holder had
exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in Section 2(a); and in each such case, the terms of this Section 2 shall be applicable to the shares of stock or other
securities properly receivable upon the exercise of this Warrant after such consummation. 

  
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 2.3    Merger, Consolidation Which Does Not Constitute Change in
Control. In case the Company shall consolidate or merge with or into another entity where the Company is not the surviving entity and which does not constitute a Change in Control, and pursuant to the terms of such merger or
consolidation, shares of common stock of the successor or acquiring entity, or any cash, shares of stock or other securities or property of any nature whatsoever in addition to or in lieu of common stock of the successor or acquiring entity
(“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company, then the Warrant Holder shall have the right thereafter to receive, upon exercise of this Warrant, the number of shares of
common stock of the successor or acquiring entity and Other Property receivable upon or as a result of such merger or consolidation by a holder of the number of shares of Common Stock issuable upon the full exercise of this Warrant. The
foregoing provisions of this Section 2.3 shall similarly apply to successive mergers or consolidations which do not constitute a Change in Control. 

2.4    Adjustment Certificate. When any adjustment is required to be made in the
Warrant Stock or the Purchase Price pursuant to this Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Purchase Price after
such adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment. 

3.    Transfers. Except for Affiliate Transfers, this Warrant may not be assigned or transferred
by the Registered Holder without the prior written consent of the Company. As used herein, “Affiliate Transfers” means any assignment or transfer by the Registered Holder: (i) to its affiliates, stockholders,
members, partners or other equity holders, (ii) for bona fide estate planning purposes, either during his or her lifetime or on death by will or intestacy to his or her spouse, child (natural or adopted), or any other direct lineal descendant (or
his or her spouse) (all of the foregoing collectively referred to as “family members”), or (iii) to any custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which are
owned wholly by, the Registered Holder or any such family members. Notwithstanding the foregoing, this Warrant may not be assigned or transferred to: a customer or competitor of, or lender to, the Company, in each case directly or
indirectly, and as is determined by the Board of Directors of the Company, in its reasonable discretion. 

4.    Representations and Warranties of Registered Holder. The Registered Holder represents, warrants
and covenants to the Company as follows: 
 4.1    Purchase Entirely for Own
Account. This Warrant is made with the Registered Holder in reliance upon such Registered Holder’s representation to the Company, which by such Registered Holder’s execution of this Warrant such Registered Holder hereby
confirms, that this Warrant and the Warrant Stock are being acquired for investment for such Registered Holder’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the
federal or state securities laws. 

  
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 4.2    Investment Experience. The Registered Holder
represents and warrants to the Company that it is an “accredited investor” within the meaning of Securities and Exchange Commission Rule 501. The Registered Holder represents that it can bear the economic risk of its investment and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in this Warrant and the Warrant Stock. If an entity, the Registered Holder also represents it has not
been organized solely for the purpose of acquiring this Warrant or the Warrant Stock. 
 4.3    Restricted
Securities. The Registered Holder understands that this Warrant and the Warrant Stock to be purchased hereunder are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired
from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act of 1933, as amended (the “Securities
Act”), only in certain limited circumstances. In this connection, the Registered Holder represents that it is familiar with Securities and Exchange Commission Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act. 
 4.4    Legends. It is understood
that the certificates evidencing the Warrant Stock may bear a legend substantially as follows: 
 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR, AT THE OPTION OF THE COMPANY, AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, OR UNLESS SOLD PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH
ACT.” 
 In addition, the certificates evidencing the Warrant Stock may bear any legend required by the Company’s charter documents, or the laws
of the State of Delaware and any other state or jurisdiction in which the securities will be issued. 

5.    Termination. This Warrant (and the right to purchase securities upon exercise hereof)
shall terminate upon the earliest to occur of the following (the “Expiration Date”): (a) the eight (8) year anniversary of the date this Warrant was issued; or (b) a Change in Control. 

6.    Notices of Certain Transactions. In case: 

6.1    the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time
deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or 

  
 6 

 6.2    of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or Change in Control of the Company, or 

6.3    of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, then, and in each
such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and
stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the
time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up) are to be determined. Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice. 

7.    Reservation of Stock. The Company will at all times reserve and keep available, solely for
the issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time to time shall be issuable upon the exercise of this Warrant. 

8.    Exchange of Warrants. Upon the surrender by the Registered Holder of any Warrant or
Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 3 hereof, issue and deliver to or upon the order of such Registered Holder, at the Company’s
expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces of the Warrant or Warrants so surrendered. 

9.    “Market Stand-Off” Agreement. The Registered Holder of this Warrant hereby
agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of the sale of shares of its Common Stock or any
other equity securities for its own account under the Securities Act on a registration statement on Form S-l, Form S-2, or Form S-3, and ending on the date specified by Company and the managing underwriter (such period not to exceed (x) one hundred
eighty (180) days in the case of the Company’s initial public offering of the Company’s Common Stock (the “Initial Public Offering”), which period may be extended upon the request of Company or managing underwriter,
to the extent required by any Financial Industry Regulatory Authority, Inc. (“FINRA”) rules, for an additional period of up to eighteen (18) days if Company issues or proposes to issue an earnings or other public release
within eighteen (18) days of the expiration of the 180-day lockup period, or (y) ninety (90) days in the case of any registration other than the Initial Public Offering, which period may be extended upon the request of Company or managing
underwriter, to the extent required by any FINRA rules, for an additional period of up to eighteen (18) days if the Company issues or proposes to issue an earnings or other public release within eighteen (18) days of the expiration of the 90-day
lockup period), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; 

  
 7 

 
or otherwise transfer or dispose of, directly or indirectly, this Warrant, any Warrant Stock, any shares of Common Stock or any securities convertible into or exercisable or exchangeable
(directly or indirectly) for Common Stock (whether such shares or any such securities are then owned by the Registered Holder or are thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The underwriters
in connection with such registration are intended third-party beneficiaries of this Section 9 and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto. The Registered Holder of
this Warrant further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 9 or that are necessary or appropriate to
give further effect thereto. 
 10.    Replacement of Warrants. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 

11.    Notices. All notices and other communications required or permitted hereunder shall be in
writing and shall be deemed effectively given (i) upon actual delivery to the party to be notified, (ii) 24 hours after confirmed email or facsimile transmission, (iii) one (1) business day after deposit with a recognized overnight courier, or (iv)
three (3) business days after deposit with the U.S. Postal Service by first class certified or registered mail, postage prepaid, return receipt requested, in each case addressed as provided by that certain Securities Purchase Agreement entered into
between the Company and the Registered Holder as of even date herewith. 
 12.    No Rights as
Stockholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights by virtue hereof as a stockholder of the Company. 

13.    No Fractional Shares. No fractional shares of Common Stock will be issued in connection
with any exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of Common Stock on the date of
exercise, as determined in good faith by the Board of Directors of the Company. 
 14.    Amendment or
Waiver. Any term of this Warrant may be amended or waived only by an instrument in writing signed by the party against which enforcement of the amendment or waiver is sought. 

15.    Headings. The headings in this Warrant are for purposes of reference only and shall not
limit or otherwise affect the meaning of any provision of this Warrant. 

  
 8 

 16.    Governing Law. This Warrant shall be
governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. 

  
 9 

 This Warrant is issued as of the date first set forth above. 

 

			
	 SMART SAND, INC.

	 a Delaware corporation

		
	 By:
	 	 /s/ Andrew Speaker

 

			
	 ACKNOWLEDGED AND AGREED:

	
	 Registered Holder:

	
	 KEYSTONE CRANBERRY, LLC

		
	 By:
	 	 /s/ Charles E. Young

			
	 Name:
	 	 Charles E. Young

	 Title:
	 	 Managing Partner

 EXHIBIT A 

PURCHASE/EXERCISE FORM 
  

			
	To: Smart Sand, Inc.	  	Dated:                        

 The undersigned, pursuant to the provisions set forth in the attached Warrant No.     , hereby irrevocably
elects to purchase         shares of the Common Stock covered by such Warrant and herewith makes payment of
$                    , representing the full purchase price for such shares at the price per share provided for in such Warrant. 

The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 4 of the Warrant and by its signature below hereby
makes such representations and warranties to the Company. 
 The undersigned further acknowledges the obligations and restrictions set forth in Sections 3
of the Warrant. 
  

			
	 Signature:
	 	
 

 

			
	 Name (print):
	 	
 

 

			
	 Title (if applicable):
	 	
 

 

			
	 Company (if applicable):

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