Document:

mscc1002.htm

  

  

AMENDMENT NO. 4 TO THE MANAGEMENT AGREEMENT

WHEREAS, MORGAN STANLEY SMITH BARNEY CHARTER CAMPBELL L.P., a Delaware limited partnership (the “Partnership”), CERES MANAGED FUTURES LLC, a Delaware limited liability company (the “General Partner”), and CAMPBELL & COMPANY, INC., a Maryland corporation (the “Trading Advisor”), have agreed to amend the Management Agreement, by and among the Partnership, the General Partner, and the Trading Advisor, dated as of August 31, 2002, as amended by an Amendment No. 1 to the Management Agreement dated as of July 31, 2003, Amendment No. 2 to the Management Agreement dated as of June 13, 2006, and Amendment No. 3 to the Management Agreement dated as of January 1, 2011 (together, the “Management Agreement”) to reduce the monthly management fee rate payable to the Trading Advisor.  Terms used and not otherwise defined herein have the meanings ascribed to such terms in the Management Agreement.

WHEREAS, all provisions contained in the Management Agreement remain in full force and effect and are modified only to the extent necessary to provide for the amendments set forth below;

 

NOW, THEREFORE, the parties hereto hereby amend the Management Agreement as follows:

 

	
1.  

	
The monthly management fee rate equal to 1/12 of 2.00% (a 2.00% annual rate) referred to in Section 6(a)(i) of the Management Agreement is hereby reduced to a monthly management fee rate equal to 1/12 of 1.50% (a 1.50% annual rate).

	
2.  

	
The foregoing amendment shall take effect as of the first day of June, 2014.

	
3.  

	
This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same agreement.

	
4.  

	
This Amendment No. 4 shall be governed and construed in accordance with the laws of the State of New York.

 

 

 

  

  

  

IN WITNESS WHEREOF, this Amendment No. 4 to the Management Agreement has been executed for and on behalf of the undersigned as of the 27th day of May, 2014.

 

MORGAN STANLEY SMITH BARNEY

CHARTER CAMPBELL L.P.

By      /s/ Alper Daglioglu                                                      

                    Ceres Managed Futures LLC

                    as General Partner

By      /s/ Alper Daglioglu                                                      

               Name:   Alper Daglioglu

   Title:     President and Director

CERES MANAGED FUTURES LLC

By      /s/ Alper Daglioglu                                                      

               Name:   Alper Daglioglu

   Title:   President and Director

CAMPBELL & COMPANY, INC.

By      /s/ Thomas P. Lloyd 

               Name: Thomas P. Lloyd

   Title:   General Counsel

By      /s/ Gregory T. Donovan 

               Name:   Gregory T. Donovan

  Title: Chief Financial OfficerUnassociated Document

Exhibit 10.20

Amendment No. 1

to

Agreement Upon Withdrawal by The Winthrop Corporation

From Worldscope/Disclosure L.L.C.

This Amendment No. 1 (this “Amendment”) to the Agreement Upon Withdrawal by the Winthrop Corporation from Worldscope/Disclosure L.L.C., dated June 1, 1999 (the “Agreement”), is entered into by and between Thomson Reuters (Markets) LLC (as successor in interest to each of Primark Corporation, Disclosure Incorporated and Disclosure International Incorporated) (“Thomson Reuters” or "TR") and The Winthrop Corporation (“TWC”).  Capitalized terms used herein and not defined have the meanings ascribed in the Agreement.

 

WHEREAS, pursuant to the Agreement, commencing June 1, 2014 TWC has the right to purchase updates to Company Account Data during the Extended Period;

 

WHEREAS, TWC wishes to purchase updates to the Company Account Data during the Extended Period; and

 

WHEREAS, TR will provide to TWC updates to the Company Account Data during the Extended Period.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Agreement is hereby amended as follows:

	
  

	
1.

	
The parties expressly agree and acknowledge that Sections 3.4 and 3.10 shall not apply during the Extended Period.

 

	
  

	
2.

	
During the Extended Period, TR agrees to provide updates (the “Updates”) to TWC and TWC agrees to pay TR $9,733 per month for such Updates beginning August 1st, 2014.  (the “Monthly Fees”).  All Monthly Fees shall be payable in advance and due within thirty (30) days of TWC's receipt of an invoice from TR.

 

	
  

	
3.

	
In the event TWC wishes to discontinue receiving the Updates during the Extended Period, TWC shall provide TR at least ninety (90) days’ written notice prior to the anniversary of the Amendment Effective Date (the “Cancellation Notice”), such cancellation shall be effective as of the next anniversary of the Amendment Effective Date following TR’s receipt of TWC’s valid Cancellation Notice under this Section.

 

	
  

	
4.

	
If TWC, at its option, provides a Cancellation Notice in accordance with Section 3 above, nothing herein shall prevent TWC from again receiving Updates and TR agrees to provide such Updates priced according to Section 3.3(b) of the Agreement at any time during the remainder of the Extended Period.  The parties agree and acknowledge that TWC may discontinue and then again begin receiving the Updates subject to the terms of this Amendment no more than three (3) times during the Extended Period.

 

  

  

  

 

	
  

	
5.

	
TR may, effective January 1, 2016 and thereafter on the first day of each January, adjust the price being paid to TR by TWC, based on the annual change in the OECD CPI or 3% whichever is greater on not less than 3 months’ notice to TWC.

 

	
  

	
6.

	
For the avoidance of doubt, on expiration of the Extended Period, the Agreement shall automatically terminate with no further action of either party.

 

	
  

	
7.

	
This Amendment shall be effective as of June 1, 2014 (the “Amendment Effective Date”).

 

	
  

	
8.

	
Except as amended hereby, the Agreement shall remain unchanged and in full force and effect in accordance with its terms.

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first written above.

 

	 	

Thomson Reuters (Markets) LLC

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	 	 
	 	Name:	 	 
	 	Title: 	 	 

	 	
The Winthrop Corporation

	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	 	 
	 	Name:	   Peter M. Donovan	 
	 	Title:Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

EXCLUSIVE
SALES AGREEMENT

 

This
Exclusive Sales Agreement dated as of April 30, 2014 (this “Agreement”) between Fotech Oil & Gas Solutions
Limited, an English company, (the “Seller”) and Eco-Stim Energy Solutions, Inc. a Nevada corporation, (the
“Purchaser”) relates to the granting of exclusivity to the territory of the Argentine Republic and the United
Mexican States (collectively the “Territory”) related to the possible purchase by the Purchaser and usage of
certain products sold by the Seller including the latest version of the “Helios” data acquisition system and any further
developments of and replacements for that system developed during the Term of this Agreement (hereinafter referred to as the “Units”),
which are used to perform down-hole monitoring of oil and gas wells using fiber-optics (hereinafter referred to as the “Services”).
In this Agreement the Seller and the Purchaser may be referred to collectively as the “Parties” or individually
as a “Party”.

 

In
consideration of the respective covenants of Seller and Purchaser as contained in this Agreement, the Parties, intending to be
legally bound, hereby agree as follows:

 

1.
DUTIES AND UNDERTAKINGS OF PURCHASER.

 

The
Purchaser shall:

 

a.
Provide all shipping and logistic services in support of delivery of Units and/or spare and repair parts in regards to the Units
from the Seller, including the costs associated with shipment, duties and taxes.

 

b.
Purchase all Seller-manufactured spare and repair parts in regards to Units from Seller.

 

c.
Support the Seller with the delivery of Services with respect to the Units in a professional and diligent manner.

 

d.
Comply with all applicable laws and regulations in performing its responsibilities hereunder (including, but not limited to, the
U.S. Foreign Corrupt Practices Act and any applicable national or local laws in the Territory) in any of its dealings with the
Units.

 

e.
Make no representations to its customers or any other third party with respect to Unit specifications or features, except as may
be approved in writing or published by Seller.

 

2.
DUTIES AND UNDERTAKINGS OF SELLER.

 

The
Seller shall:

 

a.
Provide Purchaser with all available information useful for basic in-field servicing for the Units. Equipment maintenance and
servicing will be provided at the Seller’s UK HQ with shipment costs being borne by the Purchaser.

 

b.
Conduct basic system awareness and operator training in North America and the Territory to Purchaser’s technical team. Reasonable
travel expenses and Senior Engineer day rates, as included in Schedule 3, for Seller’s trainers delivering the training
and travelling to and from the Territory at Purchaser’s request shall be reimbursed by the Purchaser.

 

c.
Provide assistance to the Purchaser in connection with the provision of services in connection with the Units at standard rates
defined in Schedule 3.

 

d.
Provide on-site field engineering Services in the Territory at standard rates defined in Schedule 3.

 

e.
Provide remote data analysis and interpretation support from the Seller’s UK HQ at standard rates defined in Schedule 3.

 

    	1

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

f.
Grant (which grant is evidenced hereby) an exclusive license to the Purchaser allowing the Purchaser the exclusive right to provide
in-well monitoring services utilizing the Seller’s technology (the “Business”) in the Territory for the
term of this Agreement. This license shall continue so long as this Agreement remains in effect. Notwithstanding the foregoing,
owners of equipment similar to the Units purchased from Seller prior to the date of this Agreement shall be permitted to continue
operating that equipment wherever they so choose. A complete list of such operators is attached to this Agreement as Schedule
1. Work with BP plc and its Affiliates in the Territory is expressly excluded from this agreement.

 

g.
For the avoidance of doubt, this exclusive license shall in no way inhibit Seller from conducting its normal business in the Territory
related to pipeline or “above ground” monitoring. However, the Seller agrees that it will not engage in any efforts
to reprogram or otherwise reconfigure any Units that were sold into the Territory for pipeline or “above ground” monitoring
in a manner that results in those systems being then used for “sub-surface” in-well monitoring purposes.

 

h.
The Seller shall pass on support requests from existing operators of DAS equipment in the Territory to the Purchaser and shall
not provide support for “sub surface” in-well monitoring applications without express agreement from the Purchaser.

 

3.
TERRITORY.

 

The
Territory may be expanded from time to time, subject to further minimum guaranteed royalty payments and if so agreed in writing
by the Parties, and added as an amendment to this Agreement between both Parties. Unless prohibited by a confidentiality arrangement,
whenever from time to time during the Term the Seller receives any written or oral request or proposal from a non-Party to enter
into an exclusive dealing agreement in any area outside the Territory, Seller shall notify Purchaser thereof, describing the terms
and conditions of the request or proposal in reasonable detail (including, at a minimum the area proposed, the duration, and the
minimum-purchase requirement, if any). Furthermore, if Seller is willing to accept the request or proposal, Seller shall give
Purchaser the prior right and option to enter into an amendment of this Agreement expanding the Territory to include such proposed
area, provided that the terms and conditions of such amendment are at least as favorable to Seller as those described in its notice
to Purchaser.

 

4.
AGREEMENT DURATION.

 

This
Agreement shall be for an initial period of twelve (12) months commencing on the date hereof, provided that Purchaser pays Seller
a non-refundable fee of $500,000 (Five Hundred Thousand US Dollars) on or before May 1, 2014 or within 3 days during which banks
are open for business in both London and New York (“Business Days”) following the execution of this agreement
(whichever occurs later), in consideration of the Seller’s exclusivity undertakings above. This period during which Agreement
is in effect (the “Term”) shall be automatically renewed upon the first anniversary of its commencement date
for one (1) additional twelve (12) month period, provided that the Purchaser pays Seller a further $750,000 exclusivity fee within
15 calendar days from the applicable anniversary date plus another $250,000 at the end of the second year if Purchaser generates
sales in that second year of at least $5 million from the operation of the Units. Further, if sales during the second year exceed
$5 million, Purchase shall pay Seller an additional 10% royalty on that portion of those sales that exceed $5 million in that
second year. Lastly, the Purchaser may extend the agreement for an additional (12) month period at the end of the second year
so long as both parties agree by paying a further $500,000 exclusivity fee. Exclusivity fees are paid on a non-refundable basis.
This Agreement may be terminated earlier in the circumstances described in Section 12 below.

 

5.
PRICES, PAYMENT TERMS AND OTHER TERMS AND CONDITIONS OF SALE.

 

a.
In the event Purchaser agrees to buy, Purchaser shall purchase the Units from the Seller at the prices of $250,000 per Unit (the
“Purchase Price”). From and after the end of the first renewal period described in Section 4 above Seller may
increase the Purchase Price by up to five percent (5%) yearly.

 

b.
The Purchase Price for the Units purchased by the Purchaser from the Seller shall be paid within thirty (30) days from the date
Purchaser receives the invoice or shipment of Units by the Purchaser, whichever occurs later. Purchaser agrees to pay in U.S.
Dollars (“$”). The purchase order for the initial order of two Units and associated equipment and spares is
attached hereto as Schedule 2.

 

c.
Purchaser’s payment to Seller of the fee(s) specified in Section 4 is in consideration of the Seller’s exclusivity
covenants contained in Sections 2 and 11.

 

    	2

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

d.
Purchaser’s purchase orders shall set forth a proposed delivery date which shall call for delivery to be made within a reasonable
time, but not later than fourteen (14) weeks following receipt and acceptance of the purchase order. If Seller is unable to comply
with Purchaser’s requested delivery date, Seller shall immediately inform Purchaser, and Seller and Purchaser shall use
reasonable efforts to agree upon an alternative estimated delivery date. Seller agrees that, in general, the agreed upon estimated
delivery date shall be no later than twelve (12) weeks after the requested delivery date, provided the purchase order does not
exceed by 25% the quantity indicated in the most recent applicable forecast provided. Notwithstanding the foregoing, shipping
or delivery dates set forth in any purchase order acknowledgement or other document shall be deemed to be estimates only, and
SELLER IN NO EVENT SHALL BE LIABLE TO PURCHASER FOR ANY DAMAGES, WHETHER DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL,
OR OTHERWISE, BECAUSE OF ANY DELAYS IN SHIPMENT OR DELIVERY, REGARDLESS OF THE CAUSE THEREFOR. All shipments made by Seller hereunder
shall be F.C.A., Seller’s loading dock. All risk of loss of or damage to the Units in transit shall be borne by Purchaser,
commencing with the placement of the Units in the custody of a carrier or shipping agent at Seller’s loading dock.

 

e.
Purchaser shall pay all invoices when due. The payment terms hereunder shall be net thirty (30) days from the date of invoice
or the date of shipment of the Unit, whichever occurs later. Receipt of any check, draft or other commercial paper shall not constitute
payment unless and until such instrument has been honored by the appropriate financial institution(s). Purchaser shall not make
deductions of any kind from any payments due Seller, unless a credit memorandum has been issued by Seller to Purchaser. No payment
by Purchaser to Seller of any lesser amount than that due to Seller shall be deemed to be other than a payment on account, and
no endorsement or statement on any check or in any letter or other document accompanying any payment shall create an accord and
satisfaction. Seller may accept any payment without prejudice to Seller’s right to recover any remaining balance or to pursue
any other remedy provided in this Agreement or under applicable law.

 

6.
CONFIDENTIALITY

 

All
non-public information disclosed by Seller to Purchaser in connection with this Agreement (collectively, “Confidential
Information,” which term specifically includes, but is not limited to, information related to the Units, inventions,
improvements, software, product roadmaps, product design information, Seller financial information or sales data, and this Agreement)
shall be treated by Purchaser as Seller’s proprietary and confidential information and shall not be utilized by Purchaser
for any purposes other than those consistent with the purposes of this Agreement, nor disclosed by Purchaser to any other person,
firm or entity (other than Purchaser’s employees or agents with a need to know such information and who are bound by a confidentiality
agreement containing terms no less restrictive than the terms in this Section 6), during the Term of this Agreement or
within 12 months thereafter, without the prior written consent of Seller in each instance. Purchaser shall be responsible for
any breach of this Section 6 by such employees or agents. The restrictions in this Section 6 shall not be applicable
to information which, is possessed by Purchase or in the public domain at the time of its disclosure to Purchaser hereunder or
which thereafter enters the public domain through no fault of Purchaser or its employees or agents. On any termination or expiration
of this Agreement, or at any time upon request of Seller, Purchaser shall return to Seller all copies of Confidential Information,
regardless of who produced such copies.

 

Purchaser
acknowledges that any breach of its obligations under this Agreement with respect to the proprietary rights or Confidential Information
of Seller or a violation of Purchaser’s obligations under this Agreement will cause Seller irreparable injury for which
remedies at law are inadequate, and therefore Seller will be entitled to equitable relief, without the necessity of posting bond
or showing any monetary damages, in addition to all other remedies provided by this Agreement or available at law.

 

7.
OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS.

 

7.1
Purchaser acknowledges the exclusive ownership by Seller of all trademarks, trade names, trade dress, designs, slogans, logos
and copyrighted materials utilized worldwide in connection with the Units, regardless of whether such items have been registered
(collectively, the “Seller Trademarks”). Purchaser hereby is granted a limited, non-exclusive, non-transferable
privilege of using Seller Trademarks only in connection with Purchaser’s (i) sales and promotion of the Units and (ii) performance
of Services. All use of Seller Trademarks shall be in strict conformance with Seller’s trademark usage guidelines in effect
from time to time, which may include the right to prohibit certain types, manner or content of advertising or promotions. In any
instance in which Purchaser utilizes any Seller Trademarks in advertising or other promotional materials, such materials shall
indicate that Seller Trademarks are owned by Seller. Seller shall have the continuing right upon request to review all uses of
any of Seller Trademarks as well as the right to inspect (upon reasonable notice) any materials, properties, products or documentation
(whether in written or electronic form) connected in any way with Purchaser’s use of Seller Trademarks.

 

    	3

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

7.2
Purchaser shall acquire no rights in any Seller Trademarks or any other Seller Intellectual Property, with the exception of the
limited use granted in Section 7.1 above. However, if any such rights arise by operation of law, Purchaser shall promptly
assign same to Seller, at no charge.

 

7.3
Purchaser agrees that it shall not do, or cause to be done, any acts which create in Purchaser’s favor any right, title
or interest in or to any Seller Trademark or any other Seller Intellectual Property, or otherwise contest or in any way dilute,
tarnish, impair or tend to impair the value of Seller’s Trademarks or any other Seller Intellectual Property, or any portion
of Seller’s right, title and interest in or to Seller Trademarks, or any other Seller Intellectual Property.

 

7.4
Purchaser agrees that at no time during the Term of this Agreement nor at any time after its expiration or termination shall it
adopt, register or use in any manner whatsoever, without Seller’s prior written consent, any word, symbol or combination
thereof, or any domain name, which in any way imitates, resembles, or is similar to any Seller Trademark.

 

7.5
Purchaser agrees to use reasonable efforts to protect Seller’s proprietary rights, and to cooperate in Seller’s efforts
to protect its proprietary rights, in and to Seller Trademarks or any other Seller Intellectual Property. If Purchaser becomes
aware of any infringement or potential infringement of any Seller Trademarks or any other Seller Intellectual Property in the
Territory, Purchaser shall notify Seller promptly thereof. Seller, at its option, may elect to prosecute said infringement, but
the failure of Seller to do so shall not affect the validity or terms of this Agreement. As reasonably requested by Seller, Purchaser
shall cooperate fully with Seller in connection with the prosecution of such infringements at its sole cost and expense.

 

7.6
Upon any termination or expiration of this Agreement, Purchaser shall discontinue all use of Seller Trademarks, except in connection
with Purchaser’s sales of any remaining Unit inventory or performance of Services using Units owned by Purchaser, and shall
make no claim to any Seller Trademarks or against the use thereof by Seller or others.

 

8.
WARRANTIES.

 

8.1
Limited Warranty on Units. Seller Units are warranted to Purchaser only against defects in material and workmanship for
a period of three hundred sixty-five (365) days from the date of delivery to Purchaser. This warranty shall be void if a Unit
is altered or used in conjunction with other equipment which was not designed to interface with that Unit or if the Unit has been
damaged or subjected to improper or abnormal use or if any parts or media are improperly installed or replaced.

 

8.2
No Other Warranties. EXCEPT AS EXPRESSLY SET FORTH ABOVE IN ARTICLE 8.1, ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT, ARE HEREBY EXPRESSLY EXCLUDED AND
DISCLAIMED. Without limiting the generality of the foregoing, no oral or written statements, technical information or recommendations
relating to the Units provided by Seller or its personnel shall constitute a guarantee or warranty and should not be relied upon
as such.

 

8.3
Procedures for Remedying Defective Units. In the event that a Unit sold is found to be defective within the warranty period,
Purchaser shall give notice and satisfactory proof of such defect within a reasonable period of time after discovery of the defect.
Purchaser’s sole remedy in the event of a breach of the limited warranty set forth in Section 8.1, and Seller’s
sole obligation therefore, shall be to repair or replace the defective Unit. Units returned must be packaged in the original or
comparable packing or shipping container. In the event the Unit is not so packaged, or if shipping damage is evident, it will
not be accepted for service under warranty. Replacement or repaired Units shall be shipped to Purchaser at Seller’s expense.
Additional costs for expedited shipment will be the responsibility of Purchaser. If Seller determines that the Unit returned for
warranty service is not defective or within warranty, Purchaser will pay all handling and transportation costs.

 

    	4

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

8.4
No Warranty to Customers. If Purchaser elects to offer a warranty to its customers with respect to the Units, or if any
warranty obligations are imposed by applicable laws or regulations in the Territory or any other jurisdiction, said warranty shall
be in Purchaser’s name only, Purchaser shall be responsible for satisfying all such additional obligations and Purchaser
shall not represent to any of its customers (either expressly or by implication) that Seller has any responsibility under such
warranty.

 

9.
OTHER SERVICES.

 

The
Seller will provide technical assistance from the UK, US or Canada. The Seller shall provide all Units ordered by Purchaser within
a mutually agreed upon delivery date. If Purchaser requests technical assistance in the Territory, Purchaser agrees to pay the
travel costs of Seller’s trainer(s) and a daily rate as per Schedule 3.

 

Seller
shall at Purchaser’s request provide references to prospective customers outside the U.S. and Canada.

 

Purchaser
shall introduce Seller to potential customers outside the Territory to the extent Purchaser encounters them from time to time.
Seller shall use reasonable efforts to promote Seller’s Technology in Purchaser’s targeted markets outside the Territory.

 

10.
SEVERABILITY.

 

In
the event that one or more provisions of this Agreement are deemed invalid, the validity of the remaining provisions of the Agreement
shall not be affected thereby.

 

11.
FURTHER EXCLUSIVITY.

 

Seller
hereby agrees that it shall not market or sell to any Person (other than BP plc and its Affiliates and the Persons listed on Schedule
1 and their respective Affiliates) engaged in the Business in the Territory (or to any Affiliate of such a Person) the Units or
any other products that are competitive with or similar in functionality to the Units (unless such Person is a Global company
and the marketing and sales effort relates to areas outside of the Territory) and any violation of this covenant by the Seller
shall be a material breach of this Agreement. If Seller engages in a marketing or sales effort with a Global company, Seller must
expressly communicate that Purchaser maintains an exclusive license in the Territory.

 

12.
TERMINATION.

 

12.1
Termination by Seller. Seller may terminate this Agreement at any time in the event that:

 

a.
Purchaser defaults in any payment due to Seller and such default continues un-remedied for a period of fifteen (15) days following
written notice of such default;

 

b.
Purchaser fails to perform any other obligation, warranty, duty or responsibility or is in default with respect to any term or
condition undertaken by Purchaser under this Agreement, and, if curable, such failure or default continues un-remediated for a
period of thirty (30) days following written notice of such failure or default.

 

c.
A receiver is appointed for the Purchaser or its property, Purchaser makes an assignment for the benefit of its creditors, any
proceedings are commenced by, for or against the Purchaser under any bankruptcy, insolvency, composition or debtor’s relief
law, or the Purchaser is liquidated or dissolved; or

 

d.
Seller undergoes a Change in Control. For the purposes of this Agreement, a Party shall be deemed to have undergone a “Change
in Control” if: 50% or more of the outstanding voting securities of that Party are sold or otherwise transferred to
any “Person” other than one which was an “Affiliate” (each as defined in Section 13 below)
of that Party during each of the 180 days preceding that transfer; that Party is merged or consolidated with or into another corporation
and as a result of such merger or consolidation less than 50% of the outstanding voting securities of the surviving or resulting
corporation are not owned in the aggregate by the Persons who were shareholders of that Party immediately prior to such merger
or consolidation; that Party sells substantially all of its assets to another Person (other than a corporation which is its wholly
owned subsidiary); or the individuals who constitute that Party’s Board of Directors or managers or (if that Party’s
management is not vested in one or more managers) members on the date set out at the beginning of this Agreement (its “Incumbent
Management”) cease for any reason to constitute at least a majority thereof, provided that any individual becoming a
director, manager, or (if applicable) member after that date whose election, or nomination for election, by the holders of that
Party’s equity securities, was approved by a vote of at least three-quarters of the directors, managers or (if applicable)
members comprising the Incumbent Management shall be deemed to be a member of the Incumbent Management for the purposes of this
clause.

 

    	5

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

12.2 Termination
by the Purchaser. The Purchaser may terminate this Agreement in the event that:

 

a.
Seller fails to perform any material obligation, warranty, duty or responsibility or is in default with respect to any material
term or condition undertaken by the Seller under this Agreement and such failure or default continues unresolved for a period
of thirty (30) days following written notice of such failure or default; or

 

b.
Purchaser undergoes a Change in Control.

 

12.3
Orders After Termination Notice. Upon any expiration or termination of this Agreement, any orders outstanding and unshipped
as of the expiration or termination date shall be filled by Seller in accordance with this Agreement. After any notice of termination
of this Agreement is given, Seller will be entitled (during any period allowed for cure) to reject all or part of any orders received
from Purchaser after notice but prior to the effective date of termination. Notwithstanding any credit terms made available to
Purchaser prior to that time, any order that Seller elects to fill after notice of termination is given shall be paid for by certified
or cashier’s check prior to shipment.

 

12.4
Surviving Obligations. Notwithstanding anything to the contrary herein, the termination of this Agreement shall not affect
Purchaser’s obligations to satisfy any outstanding indebtedness to Seller, and shall not relieve Purchaser of any of its
other obligations hereunder with respect to the Units remaining in Purchaser’s inventory, including without limitation,
the restrictions of Section 2.12 above. Further, Sections 6, 7, 13 and 14 of this Agreement shall survive termination for any
reason.

 

Subject
to any specific provisions in this Agreement excusing either Party’s performance or limiting its liability, each Party shall
be excused from any failure or delay in performance (with the exception of any failure or delay by Purchaser in making payments
to Seller) resulting directly or indirectly from inability to obtain raw materials, transit failure or delay, labor problems or
disputes, governmental orders or restrictions, fire, flood, or other acts of nature, accident, war, civil disturbances, or any
other cause(s) beyond such Party’s reasonable control.

 

12.5
Change in Control of Seller; Notice. If Seller proposes to enter into discussions or negotiations with any Person (a “Prospective
Transferee”) concerning any transaction that would constitute a Change in Control of Seller (a “Transfer”),
Seller shall, not fewer than five (5) Business Days before entering into any “no shop” or other legally-binding agreement
to negotiate exclusively with the Prospective Transferee, give a written notice to the Purchaser stating that it is conducting
such discussions or negotiations. Seller need not identify the Prospective Transferee. Seller shall not in any way be obligated
to enter into any type of exclusivity period or stand-still agreement with Purchaser as a result of this notification.

 

13.
ASSIGNMENT, GOVERNING LAW AND DISPUTE RESOLUTION

 

13.1
Assignment; “Affiliate”. Neither Party may assign this Agreement without the prior written consent of the other,
except to an Affiliate. Throughout this Agreement, “Affiliate” means any Person that, directly or indirectly, controls,
or is Controlled by or under common control with, another person; “Person” means an individual or a partnership,
joint venture, corporation, trust, other legal entity, or unincorporated organization; and “Control” (including
the terms “Controlled by” and “under common control with”), as used with respect to any Person, means
the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise. Without limiting the generality of the foregoing, (i) a Person shall
conclusively be presumed to Control any partnership, joint venture, corporation, trust, other legal entity if he or it directly
or indirectly owns 50% or more of the entity’s outstanding equity shares or interests or 50% or more of the outstanding
securities entitled to vote in elections of the entity’s directors or managers, either directly or indirectly through one
or more Controlled entities, and (ii) control of the general partner of a limited partnership shall constitute Control of such
limited partnership as well.

 

    	6

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

13.2
Governing Law. This Agreement shall be governed and construed in all respects in accordance with the laws of the State
of Texas without regard to the conflicts of law principles thereof. The United Nations Convention on Contracts for the International
Sale of Goods is hereby expressly excluded.

 

13.3
Arbitration. The Parties agree that all controversies and disputes of any kind or nature relating in any way to this Agreement,
the Units or the Services as defined in this Agreement, or the Parties’ dealings in connection herewith, including, without
limitation, disputes relating to the negotiations, inducements to enter into, or the execution of this Agreement, and/or the interpretation,
enforceability, performance, breach, termination or validity of any provision of this Agreement, shall be submitted to final and
binding arbitration before Judicial Arbitration and Mediation Services (“JAMS”). The Parties further agree
that any disagreement as to whether a particular type of dispute is subject to arbitration shall, regardless of the nature of
the dispute, be decided exclusively by an arbitrator, and not by a court, it being the Parties’ intention that no dispute
or controversy relating in any manner whatsoever to this Agreement, the Units or Services as defined in this Agreement, or their
dealings hereunder shall be submitted to litigation in state or federal court. Each Party agrees that the award of the arbitrator
shall be final and non-appealable and shall be the sole and exclusive remedy between or among them regarding any and all claims,
counterclaims, issues and accountings presented to the arbitrator, irrespective of the magnitude thereof. All arbitration proceedings
shall be conducted pursuant to JAMS’ Comprehensive Arbitration Rules and Procedures (the “JAMS Rules”),
held in Houston, Texas, and before one neutral arbitrator domiciled in Houston, Texas. The Parties hereby consent to the jurisdiction
of Texas and waive any objections or argument regarding the venue of a proceeding including confirmation proceedings, being based
in Houston, Texas. The neutral arbitrator shall be selected in accordance with JAMS Rules. The arbitrator shall have the authority
to award any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the
issuance of an injunction. Notwithstanding the foregoing, the Parties expressly agree that either Party may seek a temporary restraining
order or temporary injunction in the state district courts of Harris County, Texas, as allowed under Texas law, but the award,
if any, of final injunctive relief shall be made solely by the arbitrator. The arbitrator shall resolve in the award the extent
to which the Parties shall bear the arbitration costs and any award of attorneys’ fees for the prevailing Party. The prevailing
Party shall constitute the Party who recovered substantially all of the relief requested in the demand for arbitration or answer,
as amended. The arbitration, including but not limited to the arbitration award, shall be governed by the Federal Arbitration
Act, 9 U.S.C. § 1 et seq., and judgment upon the award rendered by the arbitrator(s) may be confirmed and entered by any
court having competent jurisdiction over the Parties or their assets. The Party seeking confirmation or enforcement of the arbitration
award shall be entitled to recover from the court in which such petition is pending all costs, fees, and expenses, including attorneys’
fees, associated with such a petition.

 

13.4
Submission to Jurisdiction. SUBJECT IN ALL RESPECTS TO THE IMMEDIATELY PRECEDING PARAGRAPH, ANY DISPUTE, CONTROVERSY OR
CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE BREACH, TERMINATION OR VALIDITY HEREOF, INCLUDING A REQUEST FOR A TEMPORARY
RESTRAINING ORDER OR TEMPORARY INJUNCTION SHALL BE BROUGHT IN ANY STATE COURT LOCATED WITHIN THE STATE OF TEXAS, COUNTY OF HARRIS,
AND EACH OF THE PARTIES HEREBY IRREVOCABLY CONSENTS TO THE JURISDICTION OF SUCH COURTS IN ANY SUCH ACTION OR PROCEEDING AND WAIVES
ANY OBJECTION TO VENUE LAID THEREIN.

 

14.
INDEMNIFICATION.

 

14.1
Scope. During the performance of this Agreement, the indemnity obligations of the Parties shall apply to events at any
geographic location where this Agreement is being performed by Seller and/ or Purchaser or, following the delivery date where
the Unit is being used by or for the benefit of Purchaser.

 

14.2
Purchaser’s Indemnification. Subject to the provisions of Section 14.4, Purchaser agrees to and does hereby indemnify
and hold harmless Seller, Seller’s subsidiaries, affiliates and predecessors, and the officers, directors, shareholders,
representatives, employees, agents, successors and assigns of all such entities (collectively, the “Seller Indemnified
Parties”), from and against any and all damages, liabilities, settlements, costs and other expenses payable by Seller
Indemnified Parties to third parties by reason of the assertion of any claim or the institution of any litigation against them
during the Term of this Agreement or subsequent to its termination, which is directly or indirectly based upon or related to (i)
any acts or omissions of Purchaser, its employees or agents in the marketing, sale and/or distribution of the Units (ii) any warranty
claims referenced in Section 8.4 or (iii) any modification of the Units other than by Seller or combination of the Units with
any material, apparatus or equipment not authorized by Seller.

 

    	7

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

14.3
Seller’s Indemnification. Subject to the provisions of Section 14.4 below, Seller agrees to and does hereby indemnify
and hold harmless Purchaser, Purchaser’s subsidiaries, affiliates and predecessors, and the officers, directors, shareholders,
employees, agents, successors and assigns of all such entities (collectively, the “Purchaser Indemnified Parties”),
from and against any and all damages, liabilities, settlements, costs and other expenses payable by the Purchaser Indemnified
Parties to third parties by reason of the assertion of any claim or the institution of any litigation against them during the
term of this Agreement or subsequent to its termination, which is directly or indirectly based upon or related to (i) any acts
or omissions of Seller, its employees or agents in the marketing, sale and/or distribution of the Units provided that this shall
not apply to defects in material or workmanship or (ii) alleging that a Unit infringes any patent, copyright or other intellectual
property right of that third party. As a condition to Seller’s obligation, Purchaser is required to comply with all of its
obligations relating to its use of Seller Intellectual Property. Notwithstanding the foregoing, Seller will have no liability
in connection with any such claimed infringement unless (a) the Unit was manufactured by Seller in accordance with Seller’s
designs and is used by Purchaser in the same form, state, condition, manner and purpose for which it was sold to Purchaser by
Seller, and (b) such alleged infringement does not arise in whole or in part from Purchaser’s modification of the Unit or
any use of same with other material, apparatus, equipment or software not authorized by Seller or from any other act or omission
on Purchaser’s part. As to any such asserted claim, Seller shall have the right, in its sole discretion, to do any of the
following with respect to any infringing Unit then in Purchaser’s inventory: (1) replace the infringing Unit with a non-infringing
product; (2) modify the infringing Unit so that it no longer is infringing; or (3) require Purchaser to return the infringing
Unit and reimburse Purchaser for the price which Purchaser paid therefore together with Purchaser’s costs of transportation.

 

14.4
Indemnification Procedures. The obligation of indemnification set forth in Sections 14.2 and 14.3 above are subject to
this Section 14.4. A Party claiming indemnification (the “‘Indemnified Parties”) shall timely notify
the indemnifying Party of any claim or litigation that is subject to indemnification hereunder. If the indemnifying Party is Seller,
it shall have the exclusive right to assume the defense, at its expense, of, and shall defend and/ or settle, any such claim or
litigation. If the indemnifying Party is Purchaser, it shall have the obligation to defend and/or settle the claim or litigation;
provided that Seller reserves the right, without being required to do so, and without waiver of any indemnity hereunder, to defend
any claim, action or lawsuit coming within the scope of Section 14.2. If the indemnifying Party fails to notify the Indemnified
Parties in writing that it will assume the defense of the subject claim or litigation within ten (30) days following receipt of
notice thereof, or thereafter fails to diligently defend or attempt to settle said claim or litigation, the Indemnified Parties
shall have the right to assume their own defense, and/ or settle or compromise any such claim or litigation and the indemnifying
Party shall be obligated to reimburse the Indemnified Parties for any and all reasonable expenses (including but not limited to
attorneys’ fees) incurred in the defense of such claim or litigation, in addition to the indemnifying Party’s other
indemnity obligations hereunder set forth in Section 14, including for any settlement affected by the Indemnified Parties.

 

14.5
Limit of liability. Nothing in this agreement shall limit or exclude the Seller’s liability for any claim, cause
of action, damage or loss, for which Seller is not permitted to limit or exclude liability under applicable law. Subject to the
foregoing and notwithstanding any other term, provision or condition of this Agreement, Seller’s liability, for any claim,
cause of action, damage or loss, whether sounding in contract, tort, express or implied warranty, statute, or otherwise, shall
be limited to the total amount paid by Purchaser to Seller hereunder, which sum Purchaser and Seller agree is a reasonable liquidation
and limitation of damages in light of anticipated or any actual harm resulting from a breach of this Agreement or from any other
claims asserted under any of the foregoing legal theories, the difficulties of proof of loss and the inconvenience or non-feasibility
of otherwise obtaining an adequate remedy. In all events, the parties agree that the above sum is not unreasonably large, given
the circumstances of the parties’ dealings with each other, and shall not be construed as a penalty.

 

    	8

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

Purchaser
agrees that its liability under this Agreement shall be limited to the total amount paid by Purchaser to Seller hereunder, and
agrees to waive, release and discharge Seller from any and all claims sounding in negligence, in excess of said amount. Purchaser
acknowledges that it has carefully read this partial waiver of rights and fully understands that it is a release of liability
of all legal actions sounding in negligence.

 

THE FOREGOING
PARAGRAPH CONSTITUTES A PARTIAL WAIVER AND RELEASE OF NEGLIGENCE CLAIMS TO WHICH PURCHASER WILL BE BOUND.

 

Purchaser
further waives any rights it has to any claim, cause of action, damage or loss in excess of the amount paid by Purchaser to Seller
hereunder, under the Deceptive Trade Practices-Consumer Protection Act, Section 17.41 et seq., Business & Commerce
Code, a law that gives consumers special rights and protections. Purchaser hereby acknowledges that Purchaser has consulted with
an attorney of Purchaser’s selection, and Purchaser voluntarily consents to this waiver.

 

15.
NOTICES.

 

All
notices and other communications given or made pursuant to this Agreement shall be in writing and shall be (a) sent by an overnight
courier service that provides proof of receipt, (b) mailed by registered or certified mail (postage prepaid, return receipt requested)
to the Parties at the addresses specified below:

 

	 	If
    to Seller, to:	Fotech
        Solutions Ltd

        Unit
        1, Blue Prior Business Park,

        Redfields
        Lane,

        Church
        Crookham, GU52 0RJ

        United
        Kingdom

         

        Attn:
        CEO

	 	 	 
	 	If
    to Purchaser, to:	Eco-Stim
        Energy Solutions, Inc.

        2930
        W. Sam Houston Pkwy N. Suite 275

        Houston
        Texas

        USA
        77043

         

        Attn:
        President

 

IN
WITNESS WHEREOF, THIS AGREEMENT IS EXECUTED BY THE PARTIES;

 

	For
    Seller:	 	For:
    Purchaser:
	 	 	 	 	 
	By:	/s/ Chris Shannon	 	By:	/s/
    J. Chris Boswell
	Name:	Chris
    Shannon	 	Name:	By:
    J. Chris Boswell
	Title:	CEO	 	Title:	Title:
    President and CEO
	 	Fotech
    Oil & Gas Solutions Limited	 	 	Eco-Stim
    Energy Solutions, Inc.
	 	 	 	 	 
	Date	 	 	Date	 

 

    	9

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

SCHEDULE
1

 

LIST OF
CURRENT OPERATORS IN TERRITORY

 

1) Baker
Hughes Inc.

 

2) BP

 

3) Chevron
Corp.

 

4) FMC Technologies

 

5) Inversion
Technologies Inc.

 

6) Petrospec
Engineering

 

7) Weatherford
(BP only)

 

    	S-1 - 1

    	 

    

 

Exhibit
10.4 

 

Fotech / Eco-Stim

April 30, 2014

 

SCHEDULE
2

 

Purchase
Order

 

 

 

    	S-2 - 1

    	 

    

  

Exhibit
10.4 

 Fotech / Eco-Stim

April 30, 2014

 

SCHEDULE
3

 

Standard
Pricing for 2014

 

	Equipment
    Purchase Options
	Purchase	Overview	Description	USD
	Helios
    HSI unit	HSi
    (40km max)	>
    High performance DAS unit.	$250,000
	Redundancy
    Options
	Data
    Storage	3TB
    External	 	 	$435
	High
    Speed Data Logger	High-speed
    (real time) logging capability for full fibre length	Purchase	$18,060
	Additional
    Hardware
	Apollo
    DPU	Data
    processing unit	Computer
    with custom analysis code used for the processing of logged data.	Purchase	$39,600
	Spares	5
    year Helios spares module, per unit.	>
        Optics Chassis spares: rear fans, front fans, keyswitch, PSU, fan controller, micro controller battery, fan filters.

         

        >
        Compute Chassis spares: GPU card, disk drives, front fans, rear fans, Power supply.
	$29,205
	Rental
    (HSI)
	1
    week	Helios
        HS unit rental only. Price does not include the cost of other equipment.

         

        POA
        for non-Helios items
	$8,250
	Short-term
    lease (rate is pcm)	$29,500
	Long-term
    lease (12 months rate is PCM)	$20,625
	Installation
    and Support
	Labour	Senior
    Engineer	In-use	$1,850
	Stand-by	$1,030
	Junior
    Engineer	In-use	$1,550
	Stand-by	$1,030
	Data
    Structuring & Report Generation	[Price
    is a guide only]	$15,675
	Data
    Analysis	[Price
    is a guide only]	$12,790
	T&S	Cost
    of travel to client location (e.g initial flights, ferry or train costs)	Estimated
    cost based on fully flexible return flight from UK	$4,950
	T&S
    Tier 1 (as defined below)	T&S
    includes hotel, car, food, for costs incurred whilst on site or travelling to site. Does not include cost of travel to client
    location (e.g initial flights, ferry or train costs)	$330
	T&S
    Tier 2 (as defined below)	$455
	Field
    Installation Equipment
	Field
    Kit rental (per day)	Kit
    includes splicing equipment, OSA, Oscilloscope, Spectrum Analyser, hand tools	$327

 

	Country
    Ratings:	 
	Tier
    1 Countries	UK,
    Europe, USA & Canada
	Tier
    2 Countries	Rest
    of World

 

    	S-3 - 1

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