EX-10.3



 Exhibit 10.3 

INTERCOMPANY SUBORDINATION AGREEMENT 

This INTERCOMPANY SUBORDINATION AGREEMENT (this “Agreement”), dated as of February 3, 2014, is entered
into by and among the Obligors listed on the signature pages hereof and those additional entities that hereafter become parties hereto by joinder (collectively, jointly, and severally, the “Obligors” and each, individually, an
“Obligor”), in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, in its capacity as administrative 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”), in light of the following: 
 WHEREAS,
pursuant to that certain Amended and Restated Credit Agreement of even date herewith (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” (each of such Lenders, together with its successors and assigns, is referred to hereinafter as a “Lender”), 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, each Obligor has made or may make certain loans or advances from time to time to one or more other Obligors; and 

WHEREAS, in order to induce Agent and the Lender Group to enter into the Credit Agreement and the other Loan Documents and to induce
the Lender Group and the Bank Product Providers to make financial accommodations to Borrowers pursuant to the Loan Documents and the Bank Product Agreements, and in consideration thereof, and in consideration of any loans or other financial
accommodations heretofore or hereafter extended by the below defined Lender Group and the Bank Product Providers to Borrowers pursuant to the Loan Documents or the Bank Product Agreements, each Obligor has agreed to subordinate the indebtedness of
each other Obligor owed to such Obligor to the below defined Senior Debt upon the terms and subject to the conditions set forth in this Agreement. 

NOW, THEREFORE, for and in consideration of the mutual promises, covenants, conditions, representations, and warranties set forth
herein and for other good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, each Obligor and Agent hereby agree as follows: 

SECTION 1. Definitions and Construction. 

(a) Terms Defined in Credit Agreement. All initially capitalized terms used in this Agreement and not otherwise defined herein shall
have the meanings assigned to them in the Credit Agreement. 







 (b) Certain Defined Terms. As used in this Agreement, the following terms shall have the
following meanings: 
 “Agent” has the meaning specified therefor in the preamble hereto. 

“Agreement” has the meaning specified therefor in the preamble hereto. 

“Borrower” has the meaning specified therefor in the recitals hereto. 

“Credit Agreement” has the meaning specified therefor in the recitals hereto. 

“Creditor Obligor” has the meaning specified therefor in the definition of Subordinated Debt. 

“Debtor Obligor” has the meaning specified therefor in the definition of Subordinated Debt. 

“Discharge of Senior Debt” means the repayment in full of all Senior Debt, in each case, after or concurrently with the
termination or expiration of all commitments, if any, to make loans, advances or otherwise extend credit that would constitute Senior Debt. 

“Insolvency Event” has the meaning specified therefor in Section 3. 

“Lender” and “Lenders” have the respective meanings specified therefor in the recitals to this Agreement.

 “Obligor” and “Obligors” have the respective meanings specified therefor in the preamble hereto. 

“Senior Debt” means all obligations (including the Obligations and the Indebtedness evidenced by the Guaranty (as defined in
the Guaranty and Security Agreement)) and all amounts owing, due, or secured under, or in connection with, the terms of, or evidenced by, the Credit Agreement, any other Loan Document or Bank Product Agreement, whether now existing or arising
hereafter, including all principal, premium, interest, fees, attorneys fees, costs, charges, expenses, reimbursement obligations, obligations to post cash collateral in respect of Letters of Credit or Bank Product Obligations or indemnities in
respect thereof, any other indemnities or guarantees, and all other amounts payable under or secured by any Loan Document or Bank Product Agreement (including, in each case, all amounts accruing on or after the commencement of any Insolvency
Proceeding relating to any Loan Party, or that would have accrued or become due under the terms of any Loan Document or Bank Product Agreement but for the commencement of any Insolvency Proceeding with respect to any Loan Party and irrespective of
whether a claim for all or any portion of such amounts is allowable or allowed in such Insolvency Proceeding). 
 “Subordinated
Debt” means, with respect to each Obligor (each, a “Creditor Obligor”), all Indebtedness, liabilities, and other obligations, whether now existing or arising hereafter, of any other Obligor (each, a “Debtor
Obligor”), including all principal, premium, interest, fees, attorneys fees, costs, charges, expenses, reimbursement obligations and any other 

  
 -2- 








 
amounts, in each case, that are owing or due to the Creditor Obligor by such Debtor Obligor, whether now existing or hereafter arising, and whether due or to become due, absolute or contingent,
liquidated or unliquidated, determined or undetermined, including all fees and all other amounts payable by such Debtor Obligor to such Creditor Obligor under or in connection with any documents or instruments related thereto. 

“Subordinated Debt Payment” means any payment or distribution by or on behalf of any of the Obligors, directly or indirectly,
of assets of any of the Obligors of any kind or character, whether in cash, property, or securities, including on account of the purchase, redemption, or other acquisition of Subordinated Debt, as a result of any collection, sale, or other
disposition of Collateral, or by setoff, exchange, or in any other manner, for or on account of the Subordinated Debt. 
 (c)
Construction. Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not
limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar
terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in
this Agreement to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to
any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein or in the Credit Agreement). The words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties. Any reference herein to the satisfaction, repayment, or payment in full of the Senior Debt (including in the definition
of “Discharge of Senior Debt”) shall mean (i) the payment or repayment in full in immediately available funds of (A) the principal amount of, and interest accrued with respect to, all outstanding Loans, together with the payment
of any premium applicable to the repayment of the Loans, (B) all Lender Group Expenses that have accrued regardless of whether demand has been made therefor, (C) all fees or charges that have accrued hereunder or under any other Loan
Document (including the Letter of Credit Fee and the Unused Line Fee), (ii) in the case of contingent reimbursement obligations with respect to Letters of Credit, providing Letter of Credit Collateralization, (iii) in the case of
obligations with respect to Bank Products (other than Hedge Obligations), providing Bank Product Collateralization, (iv) the receipt by Agent of cash collateral in order to secure any other contingent Senior Debt for which a claim or demand for
payment has been made at such time or in respect of matters or circumstances known to Agent or a Lender at the time that are reasonably expected to result in any loss, cost, damage or expense (including attorneys fees and legal expenses), such cash
collateral to be in such amount as Agent reasonably determines is appropriate to secure such contingent Senior Debt, (v) the payment or repayment in full in immediately available funds of all other Senior Debt (including the payment of any
termination amount then applicable (or which would or could become applicable as a result of the repayment of the other Senior Debt) under Hedge Agreements provided by Hedge Providers) other than (A) unasserted contingent indemnification
obligations, (B) any Bank Product Obligations (other than Hedge Obligations) 

  
 -3- 








 
that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding without being required to be repaid or cash collateralized, and (C) any Hedge Obligations that,
at such time, are allowed by the applicable Hedge Provider to remain outstanding without being required to be repaid, and (vi) the termination of all of the Commitments of the Lenders. Any reference herein to any Person shall be construed to
include such Person’s successors and assigns. Any requirement of a writing contained herein shall be satisfied by the transmission of a Record. The captions and headings of this Agreement are for convenience of reference only and shall not
affect the construction of this Agreement. 
 SECTION 2. Subordination to Payment of Senior Debt. All payments on account of the
Subordinated Debt shall be subject, subordinate, and junior, in right of payment and exercise of remedies, to the extent and in the manner set forth herein, to the Senior Debt. 

SECTION 3. Subordination upon Any Distribution of Assets of the Obligors. In the event of any payment or distribution of assets of any
Debtor Obligor of any kind or character, whether in cash, property, or securities, upon the dissolution, winding up, or total or partial liquidation or reorganization, readjustment, arrangement, or similar proceeding relating to such Debtor Obligor
or its property, whether voluntary or involuntary, or in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon an assignment for the benefit of creditors, or upon any other marshaling or composition of the assets and
liabilities of such Debtor Obligor, or upon the occurrence of an Insolvency Proceeding, or otherwise (such events, collectively, the “Insolvency Events”): (a) the Discharge of Senior Debt must have occurred before any
Subordinated Debt Payment is made; and (b) any Subordinated Debt Payment to which any Creditor Obligor would be entitled except for the provisions hereof, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the
benefit of creditors, or other liquidating lender making such payment or distribution directly to Agent for application to the payment of the Senior Debt until the Discharge of Senior Debt has occurred, after giving effect to any concurrent payment
or distribution or provision therefor to Agent or any member of the Lender Group or any Bank Product Provider in respect of such Senior Debt. 

SECTION 4. Payments on Subordinated Debt. 

(a) Permitted Payments. So long as no Event of Default has occurred and is continuing, each Debtor Obligor may make, and each Creditor
Obligor shall be entitled to accept and receive Subordinated Debt Payments expressly allowed, if any, under the Credit Agreement. 
 (b)
No Payment upon Senior Debt Defaults. Upon the occurrence and during the continuance of any Event of Default, and until such Event of Default is waived in accordance with the Credit Agreement, no Debtor Obligor shall make, and no Creditor
Obligor shall accept or receive, any Subordinated Debt Payment. For the avoidance of doubt, once such Event of Default is cured or waived, and so long as no other Event of Default has occurred and is continuing, any Debtor Obligor may make and any
Creditor Obligor may accept or receive any Subordinated Debt payment, including payments scheduled for the period of time when such Event of Default existed to the extent permitted by the Credit Agreement. 

  
 -4- 








 SECTION 5. Subordination of Remedies. Until the Discharge of Senior Debt has occurred,
whether or not any Insolvency Event has occurred, no Creditor Obligor will: 
 (a) accelerate, make demand, or otherwise make due and payable
prior to the original due date thereof any Subordinated Debt; 
 (b) bring, commence, institute, prosecute, or participate in any lawsuit,
action, or proceeding, whether private, judicial, equitable, administrative, or otherwise to enforce its rights or interests in respect of the Subordinated Debt; 

(c) exercise any rights under or with respect to guaranties of the Subordinated Debt, if any; 

(d) exercise any of its rights or remedies in connection with the Subordinated Debt with respect to any Collateral of any Debtor Obligor; 

(e) exercise any right to set-off or counterclaim in respect of any Indebtedness, liabilities, or obligations of such Creditor Obligor to any
Debtor Obligor against any of the Subordinated Debt; 
 (f) in its capacity as a Creditor Obligor, contest, protest, or object to any
exercise of secured creditor remedies by Agent, any other member of the Lender Group, or any Bank Product Provider in connection with the Senior Debt; 

(g) object to any forbearance by Agent, any other member of the Lender Group, or any Bank Product Provider in connection with the Senior Debt;
or 
 (h) commence, or cause to be commenced, or join with any creditor other than Agent or any Lender in commencing, any Insolvency
Proceeding against any Debtor Obligor. 
 SECTION 6. Payment over to Agent. In the event that, notwithstanding the provisions of
Sections 2, 3, 4, and 5, any Subordinated Debt Payments shall be received in contravention of such Sections 2, 3, 4, or 5 by any Creditor Obligor before the Discharge of Senior Debt has
occurred, such Subordinated Debt Payments shall be segregated and held in trust for the benefit of the Lender Group and the Bank Product Providers and shall be forthwith paid over or delivered to Agent, in the same form as received and with any
necessary endorsements, for application to the payment of the Senior Debt in accordance with the terms of the Loan Documents and the Bank Product Agreements. Agent is authorized to make any such endorsements as Agent for the Creditor Obligors. Such
authorization is coupled with an interest and is irrevocable until the Discharge of Senior Debt. 
 SECTION 7. Authorization to
Agent. If, while any Subordinated Debt is outstanding and before Discharge of Senior Debt has occurred, any Insolvency Event shall occur and be continuing with respect to any Obligor or its property: (a) Agent hereby is irrevocably
authorized and empowered (in the name of each Obligor or otherwise), but shall have no obligation, to demand, sue for, collect, and receive every payment or distribution in respect of the Subordinated Debt and give acquittance therefor and to file
claims and proofs of claim and take such other action (including voting the Subordinated Debt) as it may deem necessary or 

  
 -5- 








 
advisable for the exercise or enforcement of any of the rights or interests of Agent (or any member of the Lender Group or any Bank Product Provider) under any of the Loan Documents or any Bank
Product Agreement; and (b) each Obligor shall promptly take such action as Agent may reasonably request (i) to collect the Subordinated Debt for the account of the Lender Group and Bank Product Providers and to file appropriate claims or
proofs of claim in respect of the Subordinated Debt, (ii) to execute and deliver to Agent such powers of attorney, assignments, and other instruments as it may reasonably request to enable it to enforce any and all claims with respect to the
Subordinated Debt, and (iii) to collect and receive any and all Subordinated Debt Payments. 
 SECTION 8. Certain Agreements Of Each
Obligor. 
 (a) No Benefits. Each Obligor understands that there may be various agreements between the Lender Group or the Bank
Product Providers and any other Obligor evidencing and governing the Senior Debt, and each Obligor acknowledges and agrees that such agreements are not intended to confer any benefits on such Obligor unless such Obligor is also a party thereto (in
which case, the rights of such Obligor are as set forth therein) and that Agent and the other members of the Lender Group and the Bank Product Providers shall have no obligation to such Obligor or any other Person to exercise any rights, enforce any
remedies, or take any actions which may be available to them under such agreements unless such Obligor is also a party thereto (in which case, the rights of such Obligor are as set forth therein). 

(b) No Interference. Each Obligor acknowledges that certain other Obligors have granted to Agent for the benefit of the Lender Group and
the Bank Product Providers security interests in substantially all of such other Obligor’s assets, and agrees not to interfere with or in any manner oppose a disposition of any Collateral by Agent in accordance with the applicable Loan
Documents, Bank Product Agreements or applicable law. 
 (c) Reliance by Agent, Lender Group and the Bank Product Providers. Each
Obligor acknowledges and agrees that Agent, each member of the Lender Group, and each Bank Product Provider will have relied upon and will continue to rely upon the subordination provisions provided for herein and the other provisions hereof in
entering into the Loan Documents or the Bank Product Agreements (as the case may be) and making or issuing the Loans, the Letters of Credit, or other financial accommodations thereunder. 

(d) Waivers. Except as provided under the Credit Agreement or any other Loan Document or any Bank Product Agreement, each Obligor hereby
waives any and all notice of the incurrence of the Senior Debt or any part thereof and any right to require marshaling of assets. 
 (e)
Obligations of Each Obligor Not Affected. Each Creditor Obligor hereby agrees that at any time and from time to time, without notice to or the consent of such Creditor Obligor, without incurring responsibility to such Creditor Obligor, and
without impairing or releasing the subordination provided for herein or otherwise impairing the rights of Agent, any other member of the Lender Group, or any Bank Product Provider hereunder: (i) the time for any Debtor Obligor’s
performance of or compliance with any of its agreements contained in the Loan Documents or the Bank Product Agreements may be extended or such performance or 

  
 -6- 








 
compliance may be waived by Agent, any other member of the Lender Group, or any Bank Product Provider; (ii) the agreements of any Debtor Obligor with respect to the Loan Documents or the
Bank Product Agreements may from time to time be modified by such other Debtor Obligor, Agent, any other member of the Lender Group, or any Bank Product Provider for the purpose of adding any requirements thereto or changing in any manner the rights
and obligations of such Debtor Obligor, Agent, any other member of the Lender Group, or any Bank Product Provider thereunder; (iii) the manner, place, or terms for payment by any Debtor Obligor of Senior Debt or any portion thereof may be
altered or the terms for payment extended, or the Senior Debt of any Debtor Obligor may be renewed in whole or in part; (iv) the maturity of the Senior Debt of any Debtor Obligor may be accelerated in accordance with the terms of any present or
future agreement by any Debtor Obligor, Agent, any other member of the Lender Group, or any Bank Product Provider; (v) any Collateral may be sold, exchanged, released, or substituted and any Lien in favor of Agent may be terminated,
subordinated, or fail to be perfected or become unperfected; (vi) any Person liable in any manner for Senior Debt may be discharged, released, or substituted; and (vii) all other rights against the Debtor Obligors, any other Person, or
with respect to any Collateral may be exercised (or Agent, any other member of the Lender Group, or any Bank Product Provider may waive or refrain from exercising such rights as provided in the Loan Documents, the Bank Product Agreements or under
applicable law) in each case, in accordance with the applicable Loan Documents or Bank Product Agreements and applicable law. 
 (f)
Rights of Agent Not to Be Impaired. No right of Agent, any other member of the Lender Group, or the Bank Product Providers to enforce the subordination provided for herein or to exercise its other rights hereunder shall at any time in any way
be prejudiced or impaired by any act or failure to act by any Obligor, Agent, any other member of the Lender Group, or any Bank Product Provider hereunder or under or in connection with the other Loan Documents or the Bank Product Agreement or by
any noncompliance by the other Obligors with the terms and provisions and covenants herein or in any other Loan Document or any Bank Product Agreement, regardless of any knowledge thereof Agent, any other member of the Lender Group, or any Bank
Product Provider may have or otherwise be charged with. 
 (g) Financial Condition of the Obligors. No Obligor shall have any right to
require Agent to obtain or disclose any information with respect to: (i) the financial condition or character of any other Obligor or the ability of any other Obligor to pay and perform any or all of Senior Debt; (ii) the Senior Debt;
(iii) the Collateral or other security for any or all of the Senior Debt; (iv) the existence or nonexistence of any guarantees of, or any other subordination agreements with respect to, all or any part of the Senior Debt; (v) any
action or inaction on the part of Agent or any other Person; or (vi) any other matter, fact, or occurrence whatsoever. 
 (h)
Acquisition of Liens or Guaranties. Except as expressly permitted by the Credit Agreement, no Creditor Obligor shall (i) acquire any Lien on any asset of any Debtor Obligor or (ii) accept any guaranties from any other Obligor or
from any other Subsidiary of any Loan Party for the Subordinated Debt. 
 SECTION 9. Subrogation. With respect to any payments or
distribution in cash, property, or other assets that any Creditor Obligor pays over to Agent (for the benefit of the Lender Group and the Bank Product Providers) under the terms of this Agreement, each Creditor


  
 -7- 








 
Obligor shall be subrogated to the rights of Agent, the other members of the Lender Group and the Bank Product Providers; provided, however, that each Creditor Obligor agrees not to assert or
enforce any such rights of subrogation it may acquire as a result of any such payment or distribution hereunder until the Discharge of Senior Debt has occurred; provided further, however, that no Creditor Obligor shall exercise or enforce any such
rights against any Debtor Obligor (including after the Discharge of Senior Debt) if all or any portion of the Senior Debt shall have been satisfied in connection with an exercise of remedies by Agent in respect of the Equity Interests of such Debtor
Obligor whether pursuant to the Guaranty and Security Agreement or otherwise. 
 SECTION 10. Continuing Agreement; Reinstatement.

 (a) Continuing Agreement. This Agreement is a continuing agreement of subordination and shall continue in effect and be binding
upon each Obligor until the Discharge of Senior Debt has occurred. The subordinations, agreements, and priorities set forth herein shall remain in full force and effect regardless of whether any party hereto in the future seeks to rescind, amend,
terminate, or reform, by litigation or otherwise, its respective agreements with the other Obligor. This Agreement shall be applicable both before and after the commencement of any Insolvency Proceeding and all converted or succeeding cases in
respect thereof. The relative rights of parties hereto in or to any distributions from or in respect of any Collateral or proceeds of Collateral, shall continue after the commencement of any Insolvency Proceeding. Accordingly, the provisions of this
Agreement are intended to be and shall be enforceable as a subordination agreement within the meaning of Section 510 of the Bankruptcy Code. 

(b) Reinstatement. This Agreement shall continue to be effective or shall be reinstated (and the amount of Senior Debt shall be
reinstated), as the case may be, if, for any reason, any payment of the Senior Debt shall be rescinded or must otherwise be restored by Agent, any other member of the Lender Group, or any Bank Product Provider to any Loan Party, whether as a result
of an Insolvency Event or otherwise. 
 SECTION 11. Transfer of Subordinated Debt. No Obligor may assign or transfer its rights and
obligations in respect of the Subordinated Debt without the prior written consent of Agent, and any such transferee or assignee, as a condition to acquiring an interest in the Subordinated Debt shall agree to be bound hereby, in form reasonably
satisfactory to Agent. 
 SECTION 12. Obligations of the Obligors Not Affected. The provisions of this Agreement are intended solely
for the purpose of defining the relative rights of each Creditor Obligor against each Debtor Obligor, on the one hand, and of Agent, the other members of the Lender Group, and the Bank Product Providers against each Creditor Obligor, on the other
hand. Nothing contained in this Agreement shall (i) impair, as between each Creditor Obligor and any Debtor Obligor, the obligation of the Debtor Obligor to pay its respective obligations with respect to the Subordinated Debt as and when the
same shall become due and payable, or (ii) otherwise affect the relative rights of any Creditor Obligor against any Debtor Obligor, on the one hand, and of the creditors (other than Agent, the other members of the Lender Group, or the Bank
Product Providers) of the Debtor Obligors against the Debtor Obligors, on the other hand. 

  
 -8- 








 SECTION 13. Endorsement of Obligor Documents; Further Assurances And Additional Acts. 

(a) Endorsement of Obligor Documents. Upon the written request of Agent, all documents and instruments evidencing any of the
Subordinated Debt, if any, shall be endorsed with a legend noting that such documents and instruments are subject to this Agreement, and each Obligor shall promptly deliver to Agent evidence of the same. 

(b) Further Assurances and Additional Acts. Each Obligor shall execute, acknowledge, deliver, file, notarize, and register at its own
expense all such further agreements, instruments, certificates, financing statements, documents, and assurances, and perform such acts as Agent reasonably shall deem necessary or appropriate to effectuate the purposes of this Agreement, and promptly
provide Agent with evidence of the foregoing reasonably satisfactory in form and substance to Agent. 
 SECTION 14. Notices. All
notices and other communications provided for hereunder shall be given in the form and manner provided in the Credit Agreement, and, if to Agent, shall be mailed, sent, or delivered to Agent at its address as specified in the Credit Agreement and,
if to any Obligor, shall be mailed, sent or delivered in care of Borrower in accordance with the notice provisions set forth in Credit Agreement or, as to any party, at such other address as shall be designated by such party in a written notice to
the other party in writing. 
 SECTION 15. No Waiver; Cumulative Remedies. No failure on the part of Agent, any other member of the
Lender Group, or any Bank Product Provider to exercise, and no delay in exercising, any right, remedy, power, or privilege hereunder or under any other Loan Document or Bank Product Agreement shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right, remedy, power, or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. The rights and remedies under this Agreement are cumulative and not
exclusive of any rights, remedies, powers, and privileges that may otherwise be available to Agent, the other members of the Lender Group, or any Bank Product Provider. 

SECTION 16. Costs and Expenses. The Obligors, jointly and severally, agree to pay to Agent promptly after demand therefor all Lender
Group Expenses in connection with this Agreement, including in connection with the negotiation, preparation, execution, delivery, and administration of this Agreement, or any amendments, modifications, or waivers of the terms hereof, or the
enforcement or attempted enforcement of, or preservation of rights or interests under, this Agreement, including any losses incurred by Agent as a result of any failure by any Obligor to perform or observe its obligations contained in this
Agreement. 
 SECTION 17. Survival. All covenants, agreements, representations and warranties made in this Agreement shall, except to
the extent otherwise provided herein, survive the execution and delivery of this Agreement, and shall continue in full force and effect until the Discharge of Senior Debt has occurred. The foregoing to the contrary notwithstanding, the obligations
of each Obligor under Section 9 and Section 16 shall survive the Discharge of Senior Debt. 

  
 -9- 








 SECTION 18. Benefits of Agreement. This Agreement is entered into for the sole protection
and benefit of the Obligors, the Agent, the other members of the Lender Group, and the Bank Product Providers and their respective successors and assigns, and no other Person shall be a direct or indirect beneficiary of, or shall have any direct or
indirect cause of action or claim in connection with, this Agreement. 
 SECTION 19. Binding Effect. This Agreement shall be binding
upon, inure to the benefit of and be enforceable by each Obligor, Agent, the other members of the Lender Group, and Bank Product Providers and their respective successors and assigns. 

SECTION 20. Governing Law; Venue; Jury Trial Waiver; Judicial Reference Provision. THIS AGREEMENT SHALL BE SUBJECT TO THE PROVISIONS
REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE SET FORTH IN SECTION 12 OF THE CREDIT AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS. 

SECTION 21. Entire Agreement; Amendments and Waivers; Conflicts. 

(a) Entire Agreement. This Agreement, together with the other Loan Documents, constitutes the entire agreement of each of the Obligors
and the Lender Group with respect to the matters set forth herein and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 

(b) Amendments and Waivers. No amendment to or waiver of any provision of this Agreement shall in any event be effective unless the same
shall be in writing and signed by each of the Obligors and Agent; and no waiver of any provision of this Agreement, or consent to any departure by any Obligor from any provision hereof, shall in any event be effective unless the same shall be in
writing and signed by Agent. Any such amendment, waiver, or consent shall be effective only in the specific instance and for the specific purpose for which given. 

(c) Conflicts with Subordinated Debt Documents. In case of any conflict or inconsistency between any terms of this Agreement, on the one
hand, and any documents or instruments in respect of the Subordinated Debt, on the other hand, then the terms of this Agreement shall control. 

(d) Conflicts with Credit Agreement. In case of any conflict or inconsistency between any terms of this Agreement, on the one hand, and
any of the terms and provisions of the Credit Agreement, on the other hand, then the terms and provisions of the Credit Agreement shall control. 

SECTION 22. Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this
Agreement for the purpose of determining the legal enforceability of any specific provision. 
 SECTION 23. Interpretation. Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed against any member of the Lender Group, any Bank Product Provider, or any Obligor, whether under any rule of construction or otherwise. On the contrary, this Agreement has
been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 

  
 -10- 








 SECTION 24. Counterparts; Telefacsimile or Other Electronic Delivery. This 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
agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an
executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement. 
 SECTION 25. New Subsidiaries. Each Obligor shall cause any
Subsidiary (whether by acquisition or formation) of any Loan Party that is required pursuant to Section 5.11 of the Credit Agreement to execute a joinder to the Guaranty and Security Agreement or the Credit Agreement, within 10 Business
Days of such acquisition or formation, as the case may be, to execute and deliver to Agent a joinder to this Agreement in a form reasonably satisfactory to Agent. Upon the execution and delivery of such a joinder by such Subsidiary, such Subsidiary
shall become an Obligor hereunder with the same force and effect as if originally named as an Obligor herein. The execution and delivery of any agreement or instrument adding an additional Obligor as a party to this Agreement shall not require the
consent of any other Obligor hereunder. The rights and obligations of each Obligor hereunder shall remain in full force and effect notwithstanding the addition of any new Obligor hereunder as though such new Obligor had originally been named an
Obligor hereunder on the date of this Agreement. 
 [Signature pages follow] 

  
 -11- 








 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Agreement as of the date
first written above. 
  

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

  

							
		 		 	HECKMANN ENVIRONMENTAL SERVICES, INC.
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

  

							
		 		 	THERMO FLUIDS INC.
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

  

							
		 		 	HECKMANN WATER RESOURCES CORPORATION
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

 [SIGNATURE PAGE TO INTERCOMPANY SUBORDINATION AGREEMENT] 








							
		 		 	HECKMANN WATER RESOURCES (CVR), INC.
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

  

							
		 		 	1960 WELL SERVICES, LLC
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

  

							
		 		 	HEK WATER SOLUTIONS, LLC
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

  

							
		 		 	APPALACHIAN WATER SERVICES, LLC
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Vice President

  

							
		 		 	BADLANDS POWER FUELS, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Chief Financial Officer

  

  
 [SIGNATURE PAGE TO
INTERCOMPANY SUBORDINATION AGREEMENT] 









							
		 		 	BADLANDS POWER FUELS, LLC, a North Dakota limited liability company
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Chief Financial Officer

  

							
		 		 	LANDTECH ENTERPRISES, LLC
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Chief Financial Officer

  

							
		 		 	BADLANDS LEASING, LLC
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Chief Financial Officer

  

							
		 		 	IDEAL OILFIELD DISPOSAL, LLC
				
		 		 	By:	 	/s/ Jay Parkinson
		 		 	Name:	 	Jay Parkinson
		 		 	Title:	 	Chief Financial Officer


  
 [SIGNATURE PAGE TO
INTERCOMPANY SUBORDINATION AGREEMENT] 








  

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


  
 [SIGNATURE PAGE TO
INTERCOMPANY SUBORDINATION AGREEMENT]