Document:

October 14, 2013

 

Mr. Sanjay Mistry

99 Colonial Ridge Drive

Boxboro, MA 01719

 

Dear Sanjay:

 

The purpose of this
letter is to memorialize the terms of your eligibility for severance with Datawatch Corporation (“the Company”) in
the event that you are involuntarily terminated by the Company or a successor to the Company after a Change of Control as defined
in the September 24, 2013 offer letter (“Offer Letter”), in either case without Cause (as defined in Paragraph 3) or
if you terminate your employment with the Company for Good Reason (as defined in Paragraph 2).

 

1.          As
an at-will employee, either you or the Company may terminate your employment at any time for any or no reason with or without notice.
Neither this letter nor its terms constitute a contract for continued employment or a contract for a specific term of employment.
Instead, this letter sets forth the terms of our agreement with respect to your eligibility for severance.

 

2.          In
the event that you voluntarily terminate your employment with the Company at your own election and without Good Reason, you shall
be entitled to no severance. For the purpose of this Agreement, “Good Reason” is defined as a material diminution in
the nature or scope of your responsibilities, duties or authority; provided, however, that the transfer of certain job responsibilities,
or the assignment to others of your duties and responsibilities while you are out of work due to a disability or on a leave of
absence for any reason, shall not constitute a material diminution in the nature or scope of the your responsibilities, duties
or authority as set forth in this Section. Good reason will also include a reduction in your title, office or reporting requirements,
a reduction of your base salary and/or bonus opportunity, any change in benefits which makes them less favorable to you, the Company’s
failure to include you in any incentive plans, particularly a plan related to any strategic plan initiative concerning a merger,
sale or acquisition, or a relocation of the Company’s principal executive offices to a location more than 50 miles outside
of Chelmsford, MA.

 

3.          In
the event that the Company terminates your employment for “Cause,” you shall be entitled to no severance. Termination
by the Company shall constitute a termination for Cause under this Paragraph 3 if such termination is for one or more of the
following reasons:

 

(a)          the
willful and continuing failure or refusal by you to render services to the Company in accordance with your obligations to the Company;

 

(b)          gross
negligence, dishonesty, breach of fiduciary duty or breach of the terms of any other agreements executed in connection herewith;

 

(c)          the
commission by you of an act of fraud, embezzlement or substantial disregard of the rules or policies of the Company;

 

Datawatch Corporation | 271 Mill Road | Quorum Office Park
| Chelmsford, MA 01824 | T: 978.441.2200 | F: 978.441.1114 | www.datawatch.com

 

    	 

    	 

    

 

 

(d)          acts
which, in the judgment of the Board of Directors, would tend to generate significant adverse publicity toward the Company;

 

(e)          the
commission, or plea of nolo contendere, by you of a felony; or

 

(f)          a
breach by you of the terms of the Proprietary Information, Inventions and Non-Competition Agreement executed by you.

 

4.          In
the event that the Company terminates your employment for any reason other than those stated in Paragraph 3 above or if you terminate
your employment for Good Reason as defined in Paragraph 2, and you sign a comprehensive release in the form, and of a scope,
acceptable to the Company (the “Release”), the Company will pay you severance payments in equal monthly installments
at your then monthly base salary for three months following your termination (the “Severance Period”). Such payments
shall be made in accordance with the Company’s customary payroll practices and shall be subject to all applicable federal
and state withholding, payroll and other taxes.

 

For the duration of
the Severance Period, the Company shall also pay to you a taxable monthly payment (the “Taxable Payments”) in an amount
equal to the Company’s share of your monthly premium for group medical and dental coverage that is in effect immediately
prior to termination of your employment. For the avoidance of doubt, the Taxable Payments may be used by you for any purpose, including,
but not limited to continuation of your medical and dental coverage under the Consolidated Omnibus Budget Reconciliation Act of
1985 (“COBRA”), for which you shall be eligible immediately following termination of your employment, subject to the
terms and conditions applicable to COBRA coverage.

 

If you breach your
post-employment obligations under your Proprietary Information Inventions and Non-Competition Agreement, the Company may immediately
cease payment of all severance and/or benefits described in this Agreement. This cessation of severance and/or benefits shall be
in addition to, and not as an alternative to, any other remedies in law or in equity available to the Company, including the right
to seek specific performance or an injunction.

 

5.          The
terms of this agreement, along with the Offer Letter constitute the entire understanding relating to your employment and supersede
and cancel all agreements, written or oral, made prior to the date hereof between you and the Company relating to your employment
with the Company; provided, however, that nothing herein shall be deemed to limit or terminate the provisions of Proprietary Information,
Inventions and Non-Competition Agreement executed by you or in any manner alter the terms of any Restricted Stock Unit Agreement
entered into between you and the Company.

 

6.          This
Agreement, the employment relationship contemplated herein and any claim arising from such relationship, whether or not arising
under this Agreement, shall be governed by and construed in accordance with the internal laws of Massachusetts, without giving
effect to the principles of choice of law or conflicts of law of Massachusetts and this Agreement shall be deemed to be performable
in Massachusetts. Any claims or legal actions by one party against the other arising out of the relationship between the parties
contemplated herein (whether or not arising under this Agreement) shall be commenced or maintained in any state or federal court
located in Massachusetts, and Executive hereby submits to the jurisdiction and venue of any such court.

 

Datawatch Corporation | 271 Mill Road | Quorum Office Park
| Chelmsford, MA 01824 | T: 978.441.2200 | F: 978.441.1114 | www.datawatch.com

 

    	 

    	 

    

 

 

7.          No
waiver by either party of any breach by the other or any provision hereof shall be deemed to be a waiver of any later or other
breach thereof or as a waiver of any other provision of this Agreement. This Agreement and its terms may not be waived, changed,
discharged or terminated orally or by any course of dealing between the parties, but only by an instrument in writing signed by
the party against whom any waiver, change, discharge or termination is sought. No modification or waiver by the Company shall be
effective without the consent of the Board of Directors then in office at the time of such modification or waiver.

 

8.          You
acknowledge that the services to be rendered by you to the Company are unique and personal in nature. Accordingly, you may not
assign any of your rights or delegate any of your duties or obligations under this Agreement. The rights and obligations of the
Company under this Agreement may be assigned by the Company and shall inure to the benefit of, and shall be binding upon, the successors
and assigns of the Company.

 

[Remainder of page intentionally left
blank.]

 

Datawatch Corporation | 271 Mill Road | Quorum Office Park
| Chelmsford, MA 01824 | T: 978.441.2200 | F: 978.441.1114 | www.datawatch.com

 

    	 

    	 

    

 

 

If this letter correctly
states the understanding we have reached, please indicate your acceptance by countersigning the enclosed copy and returning it
to me.

 

	 	Very truly yours,
	 	 
	 	DATAWATCH CORPORATION
	 	 
	 	/s/ James L. Eliason
	 	James L. Eliason
	 	Chief Financial Officer

 

YOU REPRESENT THAT YOU HAVE READ THE FOREGOING
AGREEMENT, THAT YOU FULLY UNDERSTAND THE TERMS AND CONDITIONS OF SUCH AGREEMENT AND THAT YOU ARE VOLUNTARILY EXECUTING THE SAME.

 

ACCEPTED:

 

	/s/ Sanjay Mistry	10/14/13	 
	Sanjay Mistry	Date	 

 

Datawatch Corporation | 271 Mill Road | Quorum Office Park
| Chelmsford, MA 01824 | T: 978.441.2200 | F: 978.441.1114 | www.datawatch.comExhibit 10.4

 

CYPRESS ENERGY PARTNERS, L.P.

2013 LONG-TERM INCENTIVE PLAN

PHANTOM UNIT AGREEMENT

 

Pursuant to this Phantom Unit Agreement,
dated as of the Grant Date set forth in the Grant Notice below (this “Agreement”), Cypress Energy Partners GP,
LLC (the “Company”), as the general partner of Cypress Energy Partners, L.P. (the “Partnership”),
hereby grants to the individual identified in the Grant Notice below (the “Participant”) the following award
of Phantom Units (“Phantom Units”), pursuant and subject to the terms and conditions of this Agreement and the
Cypress Energy Partners, L.P. 2013 Long-Term Incentive Plan (the “Plan”), the terms and conditions of which are
hereby incorporated into this Agreement by reference. Each Phantom Unit granted hereunder shall constitute a Phantom Unit under
the terms of the Plan and is hereby granted in tandem with a corresponding DER, as further detailed in Section 3 below.
Except as otherwise expressly provided herein, all capitalized terms used in this Agreement, but not defined, shall have the meanings
provided in the Plan.

 

GRANT NOTICE

 

Subject to the terms and conditions of this
Agreement, the principal features of this Award are as follows:

  

Participant:

 

 Number of Phantom
Units:             Phantom Units

 

Grant Date:                       

 

Vesting of Phantom Units: [To be provided in
individual agreements]

 

Forfeiture of Phantom Units: In the event of
a termination of the Participant’s Service for any reason, all Phantom Units that have not vested prior to or in connection
with such termination of Service shall thereupon automatically be forfeited by the Participant without further action and for no
consideration.

 

Payment of Phantom Units: Vested Phantom Units
shall be paid to the Participant in the form of Units as set forth in and subject to Section 5 below.

 

DERs: Each Phantom Unit granted under this
Agreement shall be issued in tandem with a corresponding DER each of which shall entitle the Participant to receive payments in
an amount equal to Partnership distributions with respect to a Unit in accordance with Section 3 below.

 

    	 

    	 

    

 

TERMS AND CONDITIONS OF PHANTOM UNITS

 

1.          Grant.
The Company hereby grants to the Participant, as of the Grant Date, an award of the number of Phantom Units set forth in the Grant
Notice above, subject to all of the terms and conditions contained in this Agreement and the Plan.

 

2.          Phantom
Units. Subject to Section 4 below, each Phantom Unit that vests shall represent the right to receive payment, in accordance
with Section 5 below, in the form of one (1) Unit. Unless and until a Phantom Unit vests, the Participant will have no right
to payment in respect of such Phantom Unit. Prior to actual payment in respect of any vested Phantom Unit, such Phantom Unit will
represent an unsecured obligation of the Partnership, payable (if at all) only from the general assets of the Partnership.

 

3.          Grant
of Tandem DER. Each Phantom Unit granted hereunder is hereby granted in tandem with a corresponding DER, which shall remain
outstanding from the Grant Date until the earlier of the payment or forfeiture of the related Phantom Unit, and which shall be
subject to all of the terms and conditions contained in this Agreement and the Plan. Each vested DER shall entitle the Participant
to receive payments, subject to and in accordance with this Agreement, in an amount equal to any distributions made by the Partnership
following the Grant Date in respect of the Unit underlying the Phantom Unit to which such DER relates. The Company shall establish,
with respect to each Phantom Unit, a separate DER bookkeeping account for such Phantom Unit (a “DER Account”),
which shall be credited (without interest) on the applicable distribution dates with an amount equal to any distributions made
by the Partnership during the period that such Phantom Unit remains outstanding with respect to the Unit underlying the Phantom
Unit to which such DER relates. Upon the vesting of a Phantom Unit, the DER (and the DER Account) with respect to such vested Phantom
Unit shall also become vested. The DER corresponding to a Phantom Unit shall expire upon the settlement of that Phantom Unit. Similarly,
upon the forfeiture of a Phantom Unit, the DER (and the DER Account) with respect to such forfeited Phantom Unit shall also be
forfeited without payment of consideration.

 

4.          Vesting
and Forfeiture.

 

(a)          Vesting.
Subject to Section 4(b) below, the Phantom Units shall vest in such amounts and at such times as are set forth in the Grant
Notice above.

 

(b)          Forfeiture.
Notwithstanding the foregoing, in the event of a termination of the Participant’s Service for any reason, all Phantom Units
that have not vested prior to or in connection with such termination of Service shall thereupon automatically be forfeited by the
Participant without further action and without payment of consideration therefor. No portion of the Phantom Units which has not
become vested at the date of the Participant’s termination of Service shall thereafter become vested.

 

(c)          Payment.
Vested Phantom Units shall be subject to the payment provisions set forth in Section 5 below.

 

    	 

    	 

    

 

5.          Payment
of Phantom Units and DERs.

  

(a)          Phantom
Units. Unpaid, vested Phantom Units shall be paid to the Participant in the form of Units in a lump-sum as soon as reasonably
practical, but not later than sixty (60) days following the date on which such Phantom Units vest. Payments of any Phantom Units
that vest in accordance herewith shall be made to the Participant (or in the event of the Participant’s death, to the Participant’s
estate) in whole Units in accordance with this Section 5. In lieu of the foregoing, the Committee may elect at its discretion
to pay some of all of the Phantom Units in cash equal to the Fair Market Value of the Units that would otherwise be distributed
as of the date of vesting.

 

(b)          DERs.
Unpaid, vested DERs shall be paid to the Participant as follows: as soon as reasonably practical, but not later than sixty (60)
days, following the date on which a Phantom Unit and related DER vests, the Participant shall be paid an amount in cash equal to
the amount then credited to the DER Account maintained with respect to such Phantom Unit.

 

(c)          Potential
Delay. Notwithstanding anything to the contrary in this Agreement, no amounts payable under this Agreement shall be paid to
the Participant prior to the expiration of the six (6)-month period following his “separation from service” (within
the meaning of Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”) to the extent that the
Company determines that paying such amounts prior to the expiration of such six (6)-month period would result in a prohibited distribution
under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence,
then on the first business day following the end of the applicable six (6)-month period (or such earlier
date upon which such amounts can be paid under Section 409A of the Code without resulting in a prohibited distribution, including
as a result of the Participant’s death), such amounts shall be paid to the Participant.

 

6.          Tax
Withholding. The Company and/or its Affiliates shall have the authority and the right to deduct or withhold, or to require
the Participant to remit to the Company and/or its Affiliates, an amount sufficient to satisfy all applicable federal, state, local
and foreign taxes (including the Participant’s employment tax obligations) required by law to be withheld with respect to
any taxable event arising in connection with the Phantom Units and the DERs. In satisfaction of the foregoing requirement, unless
otherwise determined by the Committee, the Company and/or its Affiliates shall withhold (or provide for the purchase by an Affiliate
of the Company of) Units and/or otherwise issuable or payable in respect of such Phantom Units having a Fair Market Value equal
to the sums required to be withheld. In the event that Units that would otherwise be issued in payment of the Phantom Units are
used to satisfy such withholding obligations, the number of Units which shall be so withheld shall be limited to the number of
Units which have a Fair Market Value (which, in the case of a broker-assisted transaction, shall be determined by the Committee,
consistent with applicable provisions of the Code) on the date of withholding equal to the aggregate amount of such liabilities
based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that
are applicable to such supplemental taxable income.

 

    	 

    	 

    

 

7.          Rights
as Unit Holder. Neither the Participant nor any person claiming under or through the Participant shall have any of the rights
or privileges of a holder of Units in respect of any Units that may become deliverable hereunder unless and until certificates
representing such Units shall have been issued or recorded in book entry form on the records of the Partnership or its transfer
agents or registrars, and delivered in certificate or book entry form to the Participant or any person claiming under or through
the Participant.

 

8.          Non-Transferability.
Neither the Phantom Units nor any right of the Participant under the Phantom Units may be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by the Participant (or any permitted transferee) other than by will or the laws of
descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall
be void and unenforceable against the Company, the Partnership and any of their Affiliates.

 

9.          Distribution
of Units. Unless otherwise determined by the Committee or required by any applicable law, rule or regulation, neither the Company
nor the Partnership shall deliver to the Participant certificates evidencing Units issued pursuant to this Agreement and instead
such Units shall be recorded in the books of the Partnership (or, as applicable, its transfer agent or equity plan administrator).
All certificates for Units issued pursuant to this Agreement and all Units issued pursuant to book entry procedures hereunder shall
be subject to such stop transfer orders and other restrictions as the Company may deem advisable under the Plan or the rules, regulations,
and other requirements of the SEC, any stock exchange upon which such Units are then listed, and any applicable federal or state
laws, and the Company may cause a legend or legends to be inscribed on any such certificates or book entry to make appropriate
reference to such restrictions. In addition to the terms and conditions provided herein, the Company may require that the Participant
make such covenants, agreements, and representations as the Company, in its sole discretion, deems advisable in order to comply
with any such laws, regulations, or requirements. No fractional Units shall be issued or delivered pursuant to the Phantom Units
and the Committee shall determine, in its discretion, whether cash, other securities, or other property shall be paid or transferred
in lieu of fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise
eliminated.

 

10.         Partnership
Agreement. Units issued upon payment of the Phantom Units shall be subject to the terms of the Plan and the Partnership Agreement.
Upon the issuance of Units to the Participant, the Participant shall, automatically and without further action on his or her part,
(i) be admitted to the Partnership as a Limited Partner (as defined in the Partnership Agreement) with respect to the Units, and
(ii) become bound, and be deemed to have agreed to be bound, by the terms of the Partnership Agreement.

 

11.         No
Effect on Service. Nothing in this Agreement or in the Plan shall be construed as giving the Participant the right to be retained
in the employ or service of the Company or any Affiliate thereof. Furthermore, the Company and its Affiliates may at any time dismiss
the Participant from employment or consulting free from any liability or any claim under the Plan or this Agreement, unless otherwise
expressly provided in the Plan, this Agreement or any other written agreement between the Participant and the Company or an Affiliate
thereof.

 

    	 

    	 

    

 

12.         Severability.
If any provision of this Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction, such
provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended
without, in the determination of the Committee, materially altering the intent of this Agreement, such provision shall be stricken
as to such jurisdiction, and the remainder of this Agreement shall remain in full force and effect.

 

13.         Tax
Consultation. None of the Board, the Committee, the Company, the Partnership nor any Affiliate of any of the foregoing has
made any warranty or representation to Participant with respect to the tax consequences of the issuance, holding, vesting, payment,
settlement or other occurrence with respect to the Phantom Units, the DERs, the Units or the transactions contemplated by this
Agreement, and the Participant represents that he or she is in no manner relying on such entities or their representatives for
tax advice or an assessment of such tax consequences. The Participant understands that the Participant may suffer adverse tax consequences
in connection with the Phantom Units and DERs granted pursuant to this Agreement. The Participant represents that the Participant
has consulted with his or her tax consultants that the Participant deems advisable in connection with the Phantom Units and DERs.

 

14.         Amendments,
Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise
modified, suspended or terminated at any time or from time to time by the Board or the Committee. Except as provided in the preceding
sentence, this Agreement cannot be modified, altered or amended, except by an agreement, in writing, signed by both the Partnership
and the Participant.

 

15.         Lock-Up
Agreement. The Participant shall agree, if so requested by the Company or the Partnership and any underwriter in connection
with any public offering of securities of the Partnership or any Affiliate thereof, not to directly or indirectly offer, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant for the sale of or otherwise dispose of or transfer any Units held by him or her for such period, not to exceed one hundred
eighty (180) days following the effective date of the relevant registration statement filed under the Securities Act in connection
with such public offering, as such underwriter shall specify reasonably and in good faith. The Company or the Partnership may impose
stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such 180-day period.
Notwithstanding the foregoing, the 180-day period may be extended in the discretion of the Company for up to such number of additional
days as is deemed necessary by such underwriter or the Company or Partnership to continue coverage by research analysts in accordance
with FINRA Rule 2711 or any successor or other applicable rule.

 

16.         Conformity
to Securities Laws. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary
with all provisions of the Securities Act and the Exchange Act, any and all regulations and rules promulgated by the SEC thereunder,
and all applicable state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered,
and the Phantom Units and DERs are granted, only in such a manner as to conform to such laws, rules and regulations. To the extent
permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws,
rules and regulations.

 

    	 

    	 

    

 

17.         Code
Section 409A. None of the Phantom Units, the DERs or any amounts paid pursuant to this Agreement are intended to constitute
or provide for a deferral of compensation that is subject to Section 409A of the Code. Nevertheless, to the extent that the Committee
determines that the Phantom Units or DERs may not be exempt from (or compliant with) Section 409A of the Code, the Committee may
(but shall not be required to) amend this Agreement in a manner intended to comply with the requirements of Section 409A of the
Code or an exemption therefrom (including amendments with retroactive effect), or take any other actions as it deems necessary
or appropriate to (a) exempt the Phantom Units or DERs from Section 409A of the Code and/or preserve the intended tax treatment
of the benefits provided with respect to the Phantom Units or DERs, or (b) comply with the requirements of Section 409A of the
Code. To the extent applicable, this Agreement shall be interpreted in accordance with the provisions of Section 409A of the Code.
Notwithstanding anything in this Agreement to the contrary, to the extent that any payment or benefit
hereunder constitutes non-exempt “nonqualified deferred compensation” for purposes of Section 409A of the Code, and
such payment or benefit would otherwise be payable or distributable hereunder by reason of the Participant’s termination
of Service, all references to the Participant’s termination of Service shall be construed to mean a Separation from Service,
and the Participant shall not be considered to have a termination of Service unless such termination constitutes a Separation from
Service with respect to the Participant.

 

18.         Adjustments;
Clawback. The Participant acknowledges that the Phantom Units are subject to modification and forfeiture in certain events
as provided in this Agreement and Section 7 of the Plan. The Participant further acknowledges that the Phantom Units, DERs and
Units issuable hereunder, whether vested or unvested and whether or not previously issued, are subject to clawback as provided
in Section 8(o) of the Plan.

 

19.         Successors
and Assigns. The Company or the Partnership may assign any of its rights under this Agreement to single or multiple assignees,
and this Agreement shall inure to the benefit of the successors and assigns of the Company and the Partnership. Subject to the
restrictions on transfer contained herein, this Agreement shall be binding upon the Participant and his or her heirs, executors,
administrators, successors and assigns.

 

20.         Governing
Law. The validity, construction, and effect of this Agreement and any rules and regulations relating to this Agreement shall
be determined in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles.

 

21.         Headings.
Headings are given to the sections and subsections of this Agreement solely as a convenience to facilitate reference. Such headings
shall not be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision hereof.

 

[Signature page follows]

 

    	 

    	 

    

 

The Participant’s signature below
indicates the Participant’s agreement with and understanding that this award is subject to all of the terms and conditions
contained in the Plan and in this Agreement, and that, in the event that there are any inconsistencies between the terms of the
Plan and the terms of this Agreement, the terms of the Plan shall control. The Participant further acknowledges that the Participant
has read and understands the Plan and this Agreement, which contains the specific terms and conditions of this grant of Phantom
Units and DERs. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions arising under the Plan or this Agreement.

 

	 	Cypress Energy Partners GP, LLC
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	Name:  
	 	Title:  
	 	 
	 	Cypress Energy Partners, L.P.
	 	a Delaware limited partnership
	 	 
	 	By:  Cypress Energy Partners GP, LLC
	 	Its:   General Partner
	 	 
	 	By:	 
	 	Name:  
	 	Title:  

 

	 	 “PARTICIPANT”
	 	 
	 	
	 	 
	 	Print Name:

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