EX-10.4



 Exhibit 10.4 

PATENT SECURITY AGREEMENT 

This PATENT SECURITY AGREEMENT (this “Patent Security Agreement”) is made this 3rd day of February, 2014, by and among the
Grantors listed on the signature pages hereof (collectively, jointly and severally, “Grantors” and each individually “Grantor”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association
(“Wells Fargo”), in its capacity as agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, “Agent”). 

W I T N E S S E T H: 

Amended and Restated Credit Agreement dated as of February 3, 2014 (as amended, restated, supplemented, or otherwise modified from time
to time, the “Credit Agreement”) by and among Nuverra Environmental Solutions, Inc., a Delaware corporation, as borrower (“Borrower”), the lenders party thereto as “Lenders” (such Lenders, together with
their respective successors and assigns in such capacity, each, individually, a “Lender” and, collectively, the “Lenders”), and Agent, the Lender Group has agreed to make certain financial accommodations available
to Borrower from time to time pursuant to the terms and conditions thereof; and 
 WHEREAS, the members of Lender Group and the Bank Product
Providers are willing to make the financial accommodations to Borrower as provided for in the Credit Agreement, the other Loan Documents, and the Bank Product Agreements, but only upon the condition, among others, that the Grantors shall have
executed and delivered to Agent, for the benefit of the Lender Group and the Bank Product Providers, that certain Amended and Restated Guaranty and Security Agreement, dated as of February 3, 2014 (including all annexes, exhibits or schedules
thereto, as from time to time amended, restated, supplemented or otherwise modified, the “Guaranty and Security Agreement”); and 

WHEREAS, pursuant to the Guaranty and Security Agreement, Grantors are required to execute and deliver to Agent, for the benefit of the Lender
Group and the Bank Product Providers, this Patent Security Agreement; 
 NOW, THEREFORE, in consideration of the premises and mutual
covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor hereby agrees as follows: 

1. DEFINED TERMS. All initially capitalized terms used but not otherwise defined herein have the meanings given to them in the Guaranty
and Security Agreement or, if not defined therein, in the Credit Agreement, and this Patent Security Agreement shall be subject to the rules of construction set forth in Section 1(b) of the Guaranty and Security Agreement, which rules of
construction are incorporated herein by this reference, mutatis mutandis. 
 2. GRANT OF SECURITY INTEREST IN PATENT
COLLATERAL. Each Grantor hereby unconditionally grants, assigns, and pledges to Agent, for the benefit each member of the Lender Group and each of the Bank Product Providers, to secure the Secured Obligations, a continuing security interest
(referred to in this Patent Security Agreement as the “Security Interest”) in all of such Grantor’s right, title and interest in and to the following, whether now owned or hereafter acquired or arising (collectively, the
“Patent Collateral”): 







 (a) all of its Patents and Patent Intellectual Property Licenses to which it is a party including
those referred to on Schedule I; 
 (b) all divisionals, continuations, continuations-in-part, reissues, reexaminations, or extensions
of the foregoing; and 
 (c) all products and proceeds of the foregoing, including any claim by such Grantor against third parties for past,
present or future infringement of any Patent or any Patent exclusively licensed under any Intellectual Property License, including the right to receive damages, or right to receive license fees, royalties, and other compensation under any Patent
Intellectual Property License. 
 3. SECURITY FOR SECURED OBLIGATIONS. This Patent Security Agreement and the Security Interest
created hereby secures the payment and performance of the Secured Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this Patent Security Agreement secures the payment of all amounts which
constitute part of the Secured Obligations and would be owed by Grantors, or any of them, to Agent, the other members of the Lender Group, the Bank Product Providers or any of them, whether or not they are unenforceable or not allowable due to the
existence of an Insolvency Proceeding involving any Grantor. 
 4. SECURITY AGREEMENT. The Security Interest granted pursuant to this
Patent Security Agreement is granted in conjunction with the security interests granted to Agent, for the benefit of the Lender Group and the Bank Product Providers, pursuant to the Guaranty and Security Agreement. Each Grantor hereby acknowledges
and affirms that the rights and remedies of Agent with respect to the Security Interest in the Patent Collateral made and granted hereby are more fully set forth in the Guaranty and Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein. To the extent there is any inconsistency between this Patent Security Agreement and the Guaranty and Security Agreement, the Guaranty and Security Agreement shall control. 

5. AUTHORIZATION TO SUPPLEMENT. If any Grantor shall obtain rights to any new patent application or issued patent or become entitled to
the benefit of any patent application or patent for any divisional, continuation, continuation-in-part, reissue, or reexamination of any existing patent or patent application, the provisions of this Patent Security Agreement shall automatically
apply thereto. Grantors shall give prompt notice in writing to Agent with respect to any such new patent rights. Without limiting Grantors’ obligations under this Section, Grantors hereby authorize Agent unilaterally to modify this Patent
Security Agreement by amending Schedule I to include any such new patent rights of each Grantor. Notwithstanding the foregoing, no failure to so modify this Patent Security Agreement or amend Schedule I shall in any way affect,
invalidate or detract from Agent’s continuing security interest in all Collateral, whether or not listed on Schedule I. 

  
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 6. COUNTERPARTS. This Patent Security Agreement is a Loan Document. This Patent Security
Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one
and the same Patent Security Agreement. Delivery of an executed counterpart of this Patent Security Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart
of this Patent Security Agreement. Any party delivering an executed counterpart of this Patent Security Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Patent Security
Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Patent Security Agreement. 

7. CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE PROVISION. THIS PATENT SECURITY AGREEMENT SHALL BE SUBJECT TO THE
PROVISIONS REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE SET FORTH IN SECTION 25 OF THE GUARANTY AND SECURITY AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS.

 [signature page follows] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Patent Security Agreement to be executed
and delivered as of the day and year first above written. 
  

							
	GRANTORS:	 		 	NUVERRA ENVIRONMENTAL SOLUTIONS, INC.
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Executive Vice President, Chief Financial Officer

  

							
		 		 	 ACCEPTED AND ACKNOWLEDGED BY:
  

	AGENT:	 		 	WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association
				
		 		 	By:	 	/s/ S.N. Thomas
		 		 	Name:	 	S.N. Thomas
		 		 	Title:	 	Director

 [SIGNATURE PAGE TO PATENT SECURITY AGREEMENT] 







 SCHEDULE I 

to 
 PATENT SECURITY AGREEMENT 

Patents 
  

							
	 Grantor
	  	Country	  	 Patent
	  	Application/
Patent No.
	 Nuverra Environmental Solutions, Inc.
	  	USA	  	Transportation Management and Compliance System for Fluid Treatment and Disposal	  	13/796,909
				
	 Nuverra Environmental Solutions, Inc.
	  	USA	  	Transportation Management and Compliance Driver Interface for Fluid Treatment and Disposal	  	13/796,937

 Patent Licenses 

None.