Document:

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                                                                  EXHIBIT 10.25

                            ASSET PURCHASE AGREEMENT

                                     AMONG

                                 TUBOSCOPE INC

                                      AND

                            NEWPARK RESOURCES, INC.,

                         NEWPARK DRILLING FLUIDS, INC.

                                      AND

                             NEWPARK HOLDINGS, INC.

                               November 12, 1999

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                               TABLE OF CONTENTS

<TABLE>
<S>     <C>                                                              <C>
1.       Definitions......................................................1

2.       Basic Transaction................................................3

         (a)      Purchase and Sale of Assets.............................3
         (b)      Assumption of Liabilities...............................3
         (c)      Purchase Price..........................................3
         (d)      The Closing.............................................3
         (e)      Deliveries at the Closing...............................3
         (f)      Allocation..............................................4

3.       Representations and Warranties of Sellers........................4

         (a)      Organization of Sellers.................................4
         (b)      Authorization of Transaction............................4
         (c)      Noncontravention........................................5
         (d)      Brokers' Fees...........................................5
         (e)      Title to Assets.........................................5
         (f)      Contracts...............................................5
         (g)      Environmental Matters...................................6
         (h)      Powers of Attorney......................................6
         (i)      Litigation..............................................6
         (j)      Limitation on Assumed Liabilities.......................6

4.       Representations and Warranties of Buyer..........................6

         (a)      Organization of Buyer...................................6
         (b)      Authorization of Transaction............................7
         (c)      Noncontravention........................................7
         (d)      Brokers' Fees...........................................7
         (e)      As Is Purchase..........................................7

5.       Pre-Closing Covenants............................................8

         (a)      General.................................................8
         (b)      Notices and Consents....................................8
         (c)      Preservation of Acquired Assets.........................8
         (d)      Full Access.............................................8
         (e)      Notice of Developments..................................8
         (f)      Amendment of Lease Agreement............................8
         (g)      Release.................................................8
         (h)      Removal of Acquired Assets..............................8

6.       Conditions to Obligation to Close................................9

         (a)      Conditions to Obligation of Buyer.......................9
         (b)      Conditions to Obligation of Sellers.....................9

</TABLE>

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<TABLE>
<S>     <C>                                                                 <C>
7.       Non-Competition....................................................10

8.       Remedies for Breaches of this Agreement............................10

         (a)      Survival of Representations and Warranties................10
         (b)      Indemnification Provisions for Benefit of Buyer...........10
         (c)      Indemnification Provisions for Benefit of Sellers.........11
         (d)      Matters Involving Third Parties...........................11
         (e)      Other Indemnification Provisions..........................12

9.       Termination........................................................12

         (a)      Termination of Agreement..................................12
         (b)      Effect of Termination.....................................13

10.      Miscellaneous......................................................13

         (a)      Press Releases and Public Announcements...................13
         (b)      No Third-Party Beneficiaries..............................13
         (c)      Entire Agreement..........................................13
         (d)      Succession and Assignment.................................13
         (e)      Counterparts..............................................13
         (f)      Headings..................................................13
         (g)      Notices...................................................14
         (h)      Governing Law.............................................14
         (i)      Amendments and Waivers....................................14
         (j)      Severability..............................................15
         (k)      Expenses..................................................15
         (l)      Construction..............................................15
         (m)      Incorporation of Exhibits and Schedules...................15
         (n)      Specific Performance......................................15
         (o)      Submission to Jurisdiction................................15
</TABLE>

Schedule 1--Acquired Assets
Exhibit A--Form of Bill of Sale
Exhibit B--Form of Assignments and Assumption
Exhibit C--Form of Special Warranty Deed
Exhibit D--Allocation Schedule

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                            ASSET PURCHASE AGREEMENT

                  This Asset Purchase Agreement is entered into as of November
12, 1999, by and among Tuboscope Inc., a Delaware corporation ("Buyer"), on the
one hand, and Newpark Resources, Inc., a Delaware corporation ("Parent"),
Newpark Drilling Fluids, Inc., a Texas corporation ("NDF"), and Newpark
Holdings, Inc., a Louisiana corporation (together with NDF, the "Selling
Subsidiaries," and together with Parent, "Sellers"), on the other hand. Buyer,
Newpark and Selling Subsidiaries are referred to collectively herein as the
"Parties."

                  This Agreement contemplates a transaction in which Buyer will
purchase certain assets owned or held under lease by Sellers in return for
Buyer's payment of cash and assumption of certain liabilities related to the
Acquired Assets (as defined below).

                  Now, therefore, in consideration of the premises and the
mutual promises herein made, and in consideration of the representations,
warranties and covenants herein contained, the Parties agree as follows.

                  1.       Definitions.

                  "Acquired Assets" means all of Sellers' right, title and
interest in and to the Core Assets and Non-Core Assets, which represent all or
substantially all of the operating assets of Sellers' solids control
businesses.

                  "Adverse Consequences" means all actions, suits, proceedings,
hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs,
amounts paid in settlement, Liabilities, obligations, Taxes, liens, losses,
expenses and fees, including court costs and attorneys' fees and expenses.

                  "Affiliate" has the meaning set forth in Rule 12b-2 of the
regulations promulgated under the Securities Exchange Act.

                  "Assumed Liabilities" means those liabilities of Sellers with
respect to the Leased Assets, which accrue on or after the Closing, under the
Lease Agreement.

                  "Buyer" has the meaning set forth in the preface above.

                  "Closing" has the meaning set forth in Section 2(d) below.

                  "Closing Date" has the meaning set forth in Section 2(d)
below.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Core Assets" means those assets of Sellers listed under the
heading "Core Assets" on Schedule 1 attached hereto.

                  "Environmental Law" means any federal, state, local or
foreign law, regulation, order, decree, permit, authorization, opinion, common
law or agency requirement relating to:

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(A) the protection, preservation, investigation, remediation or restoration of
environmental quality, health and safety, or natural resources, or (B) noise,
odor, wetlands, pollution, contamination or any injury or threat of injury to
persons or property.

                  "Hazardous Substance" means: (A) any substance that is
listed, classified or regulated pursuant to or that could result in liability
under any Environmental Law; (B) any petroleum product or by-product,
asbestos-containing material, lead-containing paint or plumbing,
polychlorinated biphenyls, radioactive materials or radon; or (C) any other
substance which is the subject of regulatory action by any governmental entity
pursuant to any Environmental Law.

                  "IRS" means the Internal Revenue Service.

                  "Knowledge" means actual knowledge after reasonable
investigation.

                  "Lease Agreement" means either (i) that certain Master Lease
Agreement dated as of February 17, 1999, by and between General Electric
Capital Corporation and NDF or (ii) if NDF enters into a new agreement
governing its lease of the Leased Assets prior to Closing in accordance with
Section 5(f), such new agreement.

                  "Leased Assets" means those Acquired Assets which are held by
Sellers pursuant to the Lease Agreement.

                  "Liability" means any liability (whether known or unknown,
whether asserted or unasserted, whether absolute or contingent, whether accrued
or unaccrued, whether liquidated or unliquidated, and whether due or to become
due), including any liability for Taxes.

                  "Material Adverse Effect" shall mean a material adverse
effect on the business, properties, financial condition, results of operations
or assets of Buyer or Sellers, as applicable, taken as a whole, or on the
ability of Buyer or Sellers, as applicable, to consummate the transactions
contemplated hereby.

                  "Non-Core Assets" means those assets or substantially similar
assets of Sellers listed under the heading "Non-Core Assets" on Schedule 1
attached hereto.

                  "Ordinary Course of Business" means the ordinary course of
business consistent with past custom and practice (including with respect to
quantity and frequency).

                  "Owned Assets" means those Acquired Assets which are not
Leased Assets.

                  "Party" has the meaning set forth in the preface above.

                  "Person" means an individual, a partnership, a corporation,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization, or a governmental entity (or any department,
agency, or political subdivision thereof).

                  "Purchase Price" has the meaning set forth in Section 2(c)
below.

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                  "Securities Act" means the Securities Act of 1933, as
amended.

                  "Securities Exchange Act" means the Securities Exchange Act
of 1934, as amended.

                  "Security Interest" means any mortgage, pledge, lien,
encumbrance, charge, or other security interest, other than (a) mechanic's,
materialmen's, and similar liens, (b) liens for Taxes not yet due and payable,
(c) purchase money liens and liens securing rental payments under capital lease
arrangements, and (d) other liens arising in the Ordinary Course of Business
and not incurred in connection with the borrowing of money.

                  "Subsidiary" means any corporation, partnership, limited
liability company or other entity with respect to which a specified Person (or
a Subsidiary thereof) owns a majority of the voting power or has the power to
vote or direct the voting of sufficient securities to elect a majority of the
directors, general partners, managing members or the equivalent.

                  "Tax" means any real property, personal property,
withholding, sales, use, transfer, registration or customs duties or other tax
of any kind whatsoever, including any interest, penalty, or addition thereto,
whether disputed or not.

                  2.       Basic Transaction.

                           (a)      Purchase and Sale of Assets. On and subject
to the terms and conditions of this Agreement, Buyer agrees to purchase from
Sellers, and Sellers agree to sell, transfer, convey, and deliver to Buyer or,
if required by Buyer, a Subsidiary of Buyer, all of the Acquired Assets at the
Closing for the consideration specified below in this Section 2.

                           (b)      Assumption of Liabilities. On and subject
to the terms and conditions of this Agreement, Buyer agrees to, or to cause a
Subsidiary of Buyer to, assume and become responsible for all of the Assumed
Liabilities at the Closing. Neither Buyer nor such Subsidiary of Buyer will
assume or have any responsibility, however, with respect to any other
obligation or Liability of Sellers not included within the definition of
Assumed Liabilities.

                           (c)      Purchase Price. In addition to assuming the
Assumed Liabilities, Buyer agrees to, or cause a Subsidiary of Buyer to, pay to
Sellers at the Closing $5,470,000 (collectively, the "Purchase Price"), payable
by wire transfer of immediately available funds to an account specified by
Parent to Buyer at least two business days prior to the Closing.

                           (d)      The Closing. The closing of the
transactions contemplated by this Agreement (the "Closing") shall take place at
the offices of Latham & Watkins, 650 Town Center Drive, 20th Floor, Costa Mesa,
California 92626, commencing at 9:00 a.m. local time on the business day
following the satisfaction or waiver of all conditions to the obligations of
the Parties to consummate the transactions contemplated hereby (other than
conditions with respect to actions the respective Parties will take at the
Closing itself) or such other date or place as the Parties may mutually
determine (the "Closing Date").

                           (e)      Deliveries at the Closing. At the Closing,
the following deliveries shall be made by the Parties, as applicable:

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                                    (i) Sellers will deliver to Buyer the
                  certificate referred to in Section 6(a)(v) below;

                                    (ii) Buyer will deliver to Sellers the
                  certificate referred to in Section 6(b)(iv) below;

                                    (iii) Sellers will execute, acknowledge (if
                  appropriate) and deliver to Buyer (A) bills of sale in the
                  form attached hereto as Exhibit A, (B) the assignment and
                  assumption agreement in the form attached hereto as Exhibit
                  B, (C) the grant deed in the form attached hereto as Exhibit
                  C, and (D) such other instruments of sale, transfer,
                  conveyance and assignment as Buyer and its counsel reasonably
                  may request;

                                    (iv) Buyer will execute, acknowledge (if
                  appropriate), and deliver to Sellers (A) the assignment and
                  assumption agreement in the form attached hereto as Exhibit
                  B, and (B) such other instruments of assumption as Sellers
                  and their counsel reasonably request;

                                    (v) Buyer will deliver to Sellers the
                  consideration specified in Section 2(c) above; and

                                    (vi) Buyer will deliver to Sellers, if
                  available, the unconditional release of Sellers from the
                  Assumed Liabilities.

                  (f) Allocation. The Parties agree to allocate the Purchase
Price (and all other capitalizable costs) among the Acquired Assets for all
purposes (including financial accounting and tax purposes) in accordance with
the allocation schedule attached hereto as Exhibit D.

         3. Representations and Warranties of Sellers. Sellers represent and
warrant to Buyer that the statements contained in this Section 3 are correct
and complete as of the date of this Agreement and will be correct and complete
as of the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout this Section 3).

                  (a) Organization of Sellers. Each of Sellers is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation.

                  (b) Authorization of Transaction. Each of Sellers has full
power and authority (including full corporate power and authority) to execute
and deliver this Agreement and to perform its obligations hereunder. Without
limiting the generality of the foregoing, the board of directors of each of
Sellers has duly authorized the execution, delivery and performance of this
Agreement by Sellers. This Agreement constitutes a valid and legally binding
obligation of Sellers, enforceable in accordance with its terms and conditions,
except as enforceability may be restricted, limited or delayed by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws or equitable
principles affecting creditors' rights generally and except

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as enforceability may be subject to general principles of equity and the
possible unavailability of equitable remedies.

                  (c) Noncontravention. Neither the execution and the delivery
of this Agreement, nor the consummation of the transactions contemplated hereby
(including the assignments and assumptions referred to in Section 2 above),
will (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge or other restriction of any government,
governmental agency or court to which any of Sellers and their Subsidiaries is
subject or any provision of the charter or bylaws of any of Sellers and their
Subsidiaries, or (ii) except for such consents as may be required in order for
Buyer to assume the Assumed Liabilities, conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify or cancel, or require any notice
under any agreement, contract, lease, license, instrument or other arrangement
to which any of Sellers and their Subsidiaries is a party or by which they are
bound or to which any of their assets is subject (or result in the imposition
of any Security Interest upon any of their assets), which, in the case of
subsections (i) and (ii) above, would have a Material Adverse Effect on
Sellers. Except for the recordation of a special warranty deed with respect to
the transfer of any real property, none of Sellers and their Subsidiaries needs
to give any notice to, make any filing with, or obtain any authorization,
consent, or approval of any government or governmental agency in order for the
Parties to consummate the transactions contemplated by this Agreement
(including the assignments and assumptions referred to in Section 2 above).

                  (d) Brokers' Fees. Neither of Sellers nor their Subsidiaries
has any Liability or obligation to pay any fees or commissions to any broker,
finder or agent with respect to the transactions contemplated by this Agreement
for which Buyer could become liable or obligated.

                  (e) Title to Assets. Sellers have (i) good and marketable
title to all of the Owned Assets, free and clear of any Security Interests or
restriction on transfer, (ii) good and marketable title to such of the Non-Core
Assets as are actually in the possession of Sellers on the Closing Date, and
(iii) valid and enforceable leasehold interests to the Leased Assets, free and
clear of any Security Interests or restriction on transfer, except for the
Assumed Liabilities.

                  (f) Contracts. The Lease Agreement is the only contract or
agreement relating to the Acquired Assets and the Assumed Liabilities to which
any of Sellers or their Subsidiaries is a party. Sellers have delivered to
Buyer a correct and complete copy of the Lease Agreement. With respect to the
Lease Agreement: (i) the agreement is legal, valid, binding, enforceable and in
full force and effect, except as enforceability may be restricted, limited or
delayed by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws or equitable principles affecting creditors' rights generally and
except as enforceability may be subject to general principles of equity and the
possible unavailability of equitable remedies; (ii) assuming the consent of the
lessor thereunder to the assignment and assumption of the Lease Agreement as
contemplated by this Agreement, the Lease Agreement will continue to be legal,
valid, binding, enforceable and in full force and effect on identical terms
following the consummation of the transactions contemplated hereby (including
the assignments and assumptions referred to in Section 2 above); (iii) neither
Sellers nor, to the Knowledge of Sellers, any other party is in breach or
default, and no event has occurred which with notice or lapse of

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time would constitute a breach or default by Sellers or, to the Knowledge of
Sellers, any other party, or permit termination, modification or acceleration
under the agreement by Sellers or, to the Knowledge of Sellers, any other
party; and (iv) neither Sellers nor, to the Knowledge of Sellers, any other
party has repudiated any provision of the agreement.

                  (g) Environmental Matters. Except for (x) matters that are
specifically disclosed in the reports filed by Newpark pursuant to the rules
and regulations of the Securities Exchange Act of 1934, as amended, prior to
the date hereof (with reference to a specifically named site or claim), (y)
matters that, individually or in the aggregate, are not reasonably likely to
have a Material Adverse Effect on Sellers and (z) matters that do not impact
the Acquired Assets which are real property: (i) Sellers and their Subsidiaries
comply, and within all applicable statutes of limitations periods have
complied, with all applicable Environmental Laws; (ii) none of Sellers or their
Subsidiaries has received any notice, demand, letter, claim or request for
information alleging that Sellers or any of their Subsidiaries may be in
violation of or liable under any Environmental Law; (iii) none of Sellers or
any of their Subsidiaries is subject to any orders, decrees or injunctions
issued by, or other arrangements with, any governmental entity or is subject to
any indemnity or other agreement with any third party relating to liability
under any Environmental Law or relating to Hazardous Substances; and (iv) there
are no circumstances or conditions involving Sellers or any of their
Subsidiaries that could reasonably be expected to cause Sellers or any of their
Subsidiaries to become subject to any claims, liability, investigations or
costs, or to restrictions on the ownership, use or transfer of any property of
Sellers or any of their Subsidiaries, pursuant to any Environmental Law.

                  (h) Powers of Attorney. There are no outstanding powers of
attorney executed on behalf of any of Sellers and their Subsidiaries relating
to the Acquired Assets or Assumed Liabilities.

                  (i) Litigation. None of Sellers or their Subsidiaries (i) is
subject to any outstanding injunction, judgment, order, decree, ruling, or
charge or (ii) is a party or, to the Knowledge of any of the directors and
officers (and employees with responsibility for litigation matters) of Sellers
and their Subsidiaries, is threatened to be made a party to any action, suit,
proceeding, hearing, or investigation of, in, or before any court or
quasi-judicial or administrative agency of any federal, state, local or foreign
jurisdiction or before any arbitrator which directly relates to or may
otherwise directly affect the Acquired Assets or Assumed Liabilities.

                  (j) Limitation on Assumed Liabilities. Sellers represent and
warrant that the Assumed Liabilities do not exceed $7,500,000 in the aggregate.

         4. Representations and Warranties of Buyer. Buyer represents and
warrants to Sellers that the statements contained in this Section 4 are correct
and complete as of the date of this Agreement and will be correct and complete
as of the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout this Section 4).

                  (a) Organization of Buyer. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation.

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                  (b) Authorization of Transaction. Buyer has full power and
authority (including full corporate power and authority) to execute and deliver
this Agreement and to perform its obligations hereunder. This Agreement
constitutes the valid and legally binding obligation of Buyer, enforceable in
accordance with its terms and conditions, except as enforceability may be
restricted, limited or delayed by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws or equitable principles affecting
creditors' rights generally and except as enforceability may be subject to
general principles of equity and the possible unavailability of equitable
remedies.

                  (c) Noncontravention. Neither the execution and the delivery
of this Agreement, nor the consummation of the transactions contemplated hereby
(including the assignments and assumptions referred to in Section 2 above),
will (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge or other restriction of any government,
governmental agency or court to which Buyer is subject or any provision of its
charter or bylaws, or (ii) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument or other arrangement to which
Buyer is a party or by which it is bound or to which any of its assets is
subject, which, in the case of subsections (i) and (ii) above, would have a
Material Adverse Effect on Buyer. Buyer does not need to give any notice to,
make any filing with, or obtain any authorization, consent or approval of any
government or governmental agency in order for the Parties to consummate the
transactions contemplated by this Agreement (including the assignments and
assumptions referred to in Section 2 above).

                  (d) Brokers' Fees. Buyer has no Liability or obligation to
pay any fees or commissions to any broker, finder or agent with respect to the
transactions contemplated by this Agreement for which Sellers could become
liable or obligated.

                  (e) As Is Purchase. Buyer represents and warrants that it has
inspected the Acquired Assets prior to purchase and that it is purchasing the
Acquired Assets on an "AS IS" basis and in "WITH ALL FAULTS" condition and,
except as specifically provided in this Agreement, none of Sellers is making
any warranty, whether expressed or implied, regarding the physical condition of
the Acquired Assets, their fitness or suitability for any particular purpose,
or the compliance with applicable laws. Without limited the generality of the
foregoing, Buyer, by its signature below, hereby acknowledges and agrees (and
upon which Sellers shall have materially relied in transferring the Acquired
Assets to Buyer on the terms and conditions set forth herein) that, except as
otherwise specifically provided in this Agreement, none of Sellers, nor any of
their officers, employees or agents, has made any warranty regarding the
Acquired Assets, including, but not limited to, any warranty of habitability,
merchantability or suitability for a particular purpose, and Buyer hereby
expressly disclaims the implied warrant of habitability, the implied warranty
of merchantability, the implied warrant of fitness for a particular purpose,
and, except as otherwise specifically provided in this Agreement, all expressed
or implied warranties relating to the quality of or otherwise relating to the
physical condition of the Acquired Assets. In addition, notwithstanding
anything contained herein to the contrary, Buyer acknowledges and agrees that
none of Sellers is making any representation or warranty regarding the
quantity, condition or usefulness of any of the Non-Core Assets, except to the
extent of the warranty of title set forth in Section 3(e)

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         5. Pre-Closing Covenants. The Parties agree as follows with respect to
the period between the execution of this Agreement and the Closing.

                  (a) General. Each of the Parties will use all commercially
reasonable efforts to take all action and to do all things necessary, proper or
advisable in order to consummate and make effective the transactions
contemplated by this Agreement (including satisfaction, but not waiver, of the
closing conditions set forth in Section 6 below).

                  (b) Notices and Consents. Sellers will give (and will cause
each of their Subsidiaries to give) any notices to third parties, and Sellers
will use all commercially reasonable efforts (and will cause each of their
Subsidiaries to use all commercially reasonable efforts) to obtain any third
party consents that Buyer reasonably may request in connection with the matters
referred to in Section 3(c) above. Each of the Parties will (and cause each of
their Subsidiaries to) give any notices to, make any filings with, and use all
commercially reasonable efforts to obtain any authorizations, consents, and
approvals of, governments and governmental agencies in connection with the
matters referred to in Section 3(c) and Section 4(c) above.

                  (c) Preservation of Acquired Assets. Sellers (i) will keep
(and will cause each of their Subsidiaries to keep) the Core Assets intact and
in good condition and repair not worse than their condition and repair as of
the date hereof, except for such wear and tear incurred in the Ordinary Course
of Business after the date hereof, and (ii) will not transfer the Acquired
Assets to any third party, except that Sellers may transfer the Non-Core Assets
to third parties in the Ordinary Course of Business.

                  (d) Full Access. Sellers will permit (and will cause each of
their Subsidiaries to permit) representatives of Buyer to have full access at
all reasonable times, and in a manner so as not to interfere with the normal
business of Sellers, to all books, records, contracts and documents of or
pertaining to the Acquired Assets and the Assumed Liabilities.

                  (e) Notice of Developments. Each Party will give prompt
written notice to the other Party of any material adverse development causing a
breach of any of its representations and warranties in Section 3 and Section 4
above. No disclosure by any Party pursuant to this Section 5(e), however, shall
be deemed to amend or supplement the Disclosure Schedule or to prevent or cure
any misrepresentation, breach of warranty or breach of covenant.

                  (f) Amendment of Lease Agreement. Sellers shall use
commercially reasonable efforts to enter into a new lease agreement with
General Electric Capital Corporation which covers solely the Leased Assets and
is on terms no less favorable to NDF as the terms of the Lease Agreement in
effect as of the date hereof.

                  (g) Release. Buyer shall use commercially reasonable efforts
to obtain the unconditional release of Sellers from each of the Assumed
Liabilities effective upon the assumption of the Assumed Liabilities by Buyer
or its Subsidiary.

                  (h) Removal of Acquired Assets. Buyer shall use commercially
reasonable efforts to remove the Acquired Assets from all real property not
owned or held under lease by Buyer as soon as practicable and, in any event,
within 30 days of the Closing Date.

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         6. Conditions to Obligation to Close.

                  (a) Conditions to Obligation of Buyer. The obligation of
Buyer to consummate the transactions to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions:

                           (i)      the representations and warranties of
         Sellers set forth in Section 3 above shall be true and correct in all
         material respects at and as of the Closing Date;

                           (ii) Sellers shall have performed and complied with
         all of their covenants hereunder in all material respects through the
         Closing;

                           (iii) Sellers and their Subsidiaries shall have
         procured all of the third party consents specified in Section 5(b)
         above;

                           (iv) no action, suit or proceeding shall be pending
         or threatened before any court or quasi-judicial or administrative
         agency of any federal, state, local or foreign jurisdiction or before
         any arbitrator wherein an unfavorable injunction, judgment, order,
         decree, ruling or charge would (A) prevent the consummation of any of
         the transactions contemplated by this Agreement, (B) cause any of the
         transactions contemplated by this Agreement to be rescinded following
         consummation, or (C) affect adversely the right of Buyer to own the
         Acquired Assets or perform its obligations under the Assumed
         Liabilities (and no such injunction, judgment, order, decree, ruling
         or charge shall be in effect); and

                           (v) Sellers shall have delivered to Buyer a
         certificate to the effect that each of the conditions specified above
         in Section 6(a)(i)-(iv) is satisfied in all respects.

Buyer may waive any condition specified in this Section 6(a) if it executes a
writing so stating at or prior to the Closing.

                  (b) Conditions to Obligation of Sellers. The obligation of
Sellers to consummate the transactions to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions:

                           (i) the representations and warranties of Buyer set
         forth in Section 4 above shall be true and correct in all material
         respects at and as of the Closing Date;

                           (ii) Buyer shall have performed and complied with
         all of its covenants hereunder in all material respects through the
         Closing;

                           (iii) no action, suit or proceeding shall be pending
         or threatened before any court or quasi-judicial or administrative
         agency of any federal, state, local or foreign jurisdiction or before
         any arbitrator wherein an unfavorable injunction, judgment, order,
         decree, ruling or charge would (A) prevent the consummation of any of
         the

                                       9
<PAGE>   13

         transactions contemplated by this Agreement, or (B) cause any of the
         transactions contemplated by this Agreement to be rescinded following
         consummation (and no such injunction, judgment, order, decree, ruling
         or charge shall be in effect);

                           (iv) Buyer shall have delivered to Sellers a
         certificate to the effect that each of the conditions specified above
         in Section 6(b)(i)-(iii) is satisfied in all respects; and

                           (v) Buyers shall have obtained the unconditional
         release of Sellers from each of the Assumed Liabilities effective upon
         the assumption of the Assumed Liabilities by Buyer.

Sellers may waive any condition specified in this Section 6(b) if it executes a
writing so stating at or prior to the Closing.

                  7. Non-Competition. From the Closing Date until the third
anniversary of the Closing Date, Sellers shall not, and will not permit their
Subsidiaries to, unless acting in accordance with Buyer's prior written
consent, directly or indirectly, own, manage, join, operate or control, or
participate in the ownership, management, operation or control of, or be
connected as a director, officer, employee, partner, consultant or otherwise
with, or permit their names to be used by or in connection with, any business
or organization which is engaged in the solids control services business or any
substantially similar business within the United States; provided, however,
that nothing herein shall be deemed or construed to prohibit Sellers and its
Subsidiaries from owning or holding, in the aggregate, 5% or less of the
capital stock or other equity interests in any entity or organization whose
capital stock or equity interests are traded on an established securities
exchange or market; and provided further that Buyer shall not unreasonably
withhold its consent to allow Sellers to participate in the solids control
services business in any geographic region in which Buyer is not engaged in the
business of providing solids control services.

                  8. Remedies for Breaches of this Agreement.

                           (a) Survival of Representations and Warranties. All
of the representations and warranties of Buyer and Sellers contained in this
Agreement shall survive the Closing (even if the damaged Party knew or had
reason to know of any misrepresentation or breach of warranty at the time of
Closing) and continue in full force and effect for a period of one year
thereafter.

                           (b) Indemnification Provisions for Benefit of Buyer.

                                    (i)      If any of Sellers breaches (or if
                  any third party alleges facts that, if true, would mean
                  either of Sellers has breached) any of its representations,
                  warranties and covenants contained in this Agreement,
                  provided that Buyer makes a written claim for indemnification
                  against Sellers within the survival period in Section 8(a),
                  then Sellers, jointly and severally, agree to indemnify Buyer
                  from and against the entirety of any Adverse Consequences
                  Buyer may suffer through and after the date of the claim for
                  indemnification (including any Adverse Consequences Buyer may
                  suffer after the end of any applicable survival period)
                  resulting from, arising out of, relating to, in the nature
                  of, or caused by the breach (or the alleged breach).

                                     10
<PAGE>   14

                                   (ii)     Sellers agree, jointly and
                  severally, to indemnify Buyer from and against the entirety
                  of any Adverse Consequences Buyer may suffer resulting from,
                  arising out of, relating to, in the nature of, or caused by
                  any Liability relating to the Acquired Assets which is not an
                  Assumed Liability to the extent such Liability is based upon
                  acts or omissions occurring prior to the Closing Date.

                  (c) Indemnification Provisions for Benefit of Sellers.

                                    (i) If Buyer breaches (or if any third
                  party alleges facts that, if true, would mean Buyer has
                  breached) any of its representations, warranties and
                  covenants contained in this Agreement, provided that Sellers
                  make a written claim for indemnification against Buyer within
                  the survival period in Section 8(a), then Buyer agrees to
                  indemnify Sellers from and against the entirety of any
                  Adverse Consequences Sellers may suffer through and after the
                  date of the claim for indemnification (including any Adverse
                  Consequences Sellers may suffer after the end of any
                  applicable survival period) resulting from, arising out of,
                  relating to, in the nature of, or caused by the breach (or
                  the alleged breach).

                                    (ii) Buyer agrees to indemnify Sellers from
                  and against the entirety of any Adverse Consequences Sellers
                  may suffer resulting from, arising out of, relating to, in
                  the nature of, or caused by any Assumed Liability and any
                  Liability relating to the Acquired Assets which are based
                  upon acts or omissions occurring after the Closing Date.

                  (d) Matters Involving Third Parties.

                                    (i) If any third party shall notify any
                  Party (the "Indemnified Party") with respect to any matter (a
                  "Third Party Claim") which may give rise to a claim for
                  indemnification against the other Party (the "Indemnifying
                  Party") under this Section 8, then the Indemnified Party
                  shall promptly notify the Indemnifying Party thereof in
                  writing; provided, however, that no delay on the part of the
                  Indemnified Party in notifying the Indemnifying Party shall
                  relieve the Indemnifying Party from any obligation hereunder
                  unless (and then solely to the extent) the Indemnifying Party
                  thereby is prejudiced.

                                    (ii) The Indemnifying Party will have the
                  right to defend the Indemnified Party against the Third Party
                  Claim with counsel of its choice reasonably satisfactory to
                  the Indemnified Party so long as (A) the Indemnifying Party
                  notifies the Indemnified Party in writing within 15 days
                  after the Indemnified Party has given notice of the Third
                  Party Claim that the Indemnifying Party will indemnify the
                  Indemnified Party from and against the entirety of any
                  Adverse Consequences the Indemnified Party may suffer
                  resulting from, arising out of, relating to, in the nature
                  of, or caused by the Third Party Claim, (B) the Indemnifying
                  Party provides the Indemnified Party with evidence reasonably
                  acceptable to the Indemnified Party that the Indemnifying
                  Party will have the financial resources to defend against the
                  Third Party Claim and fulfill its indemnification obligations
                  hereunder, (C) the Third Party Claim involves only money
                  damages and does not seek an injunction or other equitable
                  relief, (D) settlement of, or an

                                      11
<PAGE>   15

                  adverse judgment with respect to, the Third Party Claim is
                  not, in the good faith judgment of the Indemnified Party,
                  likely to establish a precedential custom or practice
                  materially adverse to the continuing business interests of
                  the Indemnified Party, and (E) the Indemnifying Party
                  conducts the defense of the Third Party Claim actively and
                  diligently.

                                    (iii) So long as the Indemnifying Party is
                  conducting the defense of the Third Party Claim in accordance
                  with Section 8(d)(ii) above, (A) the Indemnified Party may
                  retain separate co-counsel at its sole cost and expense and
                  participate in the defense of the Third Party Claim, (B) the
                  Indemnified Party will not consent to the entry of any
                  judgment or enter into any settlement with respect to the
                  Third Party Claim without the prior written consent of the
                  Indemnifying Party (not to be withheld unreasonably), and (C)
                  the Indemnifying Party will not consent to the entry of any
                  judgment or enter into any settlement with respect to the
                  Third Party Claim without the prior written consent of the
                  Indemnified Party (not to be withheld unreasonably).

                                    (iv) If any of the conditions in Section
                  8(d)(ii) above is or becomes unsatisfied, however, (A) the
                  Indemnified Party may defend against, and consent to the
                  entry of any judgment or enter into any settlement with
                  respect to, the Third Party Claim in any manner it reasonably
                  may deem appropriate (and the Indemnified Party need not
                  consult with, or obtain any consent from, the Indemnifying
                  Party in connection therewith), (B) the Indemnifying Party
                  will reimburse the Indemnified Party promptly and
                  periodically for the costs of defending against the Third
                  Party Claim (including reasonable attorneys' fees and
                  expenses), and (C) the Indemnifying Party will remain
                  responsible for any Adverse Consequences the Indemnified
                  Party may suffer resulting from, arising out of, relating to,
                  in the nature of, or caused by the Third Party Claim to the
                  fullest extent provided in this Section 8.

                  (e) Other Indemnification Provisions. The foregoing
indemnification provisions are in addition to, and not in derogation of, any
statutory, equitable, or common law remedy any Party may have for breach of
representation, warranty, or covenant.

                  9. Termination.

                  (a) Termination of Agreement. The Parties may terminate this
Agreement as provided below:

                                    (i) By mutual written consent of the
                  Parties at any time prior to the Closing;

                                    (ii) Buyer may terminate this Agreement by
                  giving written notice to Sellers at any time prior to the
                  Closing if any of Sellers has breached any material
                  representation, warranty or covenant contained in this
                  Agreement in any material respect, Buyer has notified Sellers
                  of the breach, and the breach has continued without cure for
                  a period of 30 days after the notice of breach; and

                                    (iii) Any Seller may terminate this
                  Agreement by giving written notice to Buyer at any time prior
                  to the Closing if Buyer has breached any material

                                      12
<PAGE>   16
      representation, warranty or covenant contained in this Agreement in any
      material respect, such Seller has notified Buyer of the breach, and the
      breach has continued without cure for a period of 30 days after the
      notice of breach.

           (b) Effect of Termination. If any Party terminates this Agreement
pursuant to Section 9(a) above, all rights and obligations of the Parties
hereunder shall terminate without any Liability of any Party to any other Party
(except for any Liability of any Party then in breach).

           10.    Miscellaneous.

                  (a) Press Releases and Public Announcements. No Party shall
issue any press release or make any public announcement relating to the subject
matter of this Agreement without the prior written approval of the other Party;
provided, however, that any Party may make any public disclosure it believes in
good faith is required by applicable law or any listing or trading agreement
concerning its publicly-traded securities (in which case the disclosing Party
will use its reasonable best efforts to advise the other Party prior to making
the disclosure).

                  (b) No Third-Party Beneficiaries. This Agreement shall not
confer any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns.

                  (c) Entire Agreement. This Agreement (including the documents
referred to herein) constitutes the entire agreement between the Parties and
supersedes any prior understandings, agreements or representations by or
between the Parties, written or oral, to the extent they related in any way to
the subject matter hereof.

                  (d) Succession and Assignment. This Agreement shall be
binding upon and inure to the benefit of the Parties named herein and their
respective successors and permitted assigns. No Party may assign either this
Agreement or any of its rights, interests or obligations hereunder without the
prior written approval of the other Party; provided, however, that Buyer may
(i) assign any or all of its rights and interests hereunder to one or more of
its Affiliates and (ii) designate one or more of its Affiliates to perform its
obligations hereunder (in any or all of which cases Buyer nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

                  (e) Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. This Agreement may be
executed by any party by delivery of a facsimile signature, which signature
shall have the same force and effect as an original signature. Any Party which
delivers a facsimile signature shall promptly thereafter deliver an originally
executed signature to the other Parties; provided, however, that the failure to
deliver an original signature page shall not affect the validity of any
signature delivered by facsimile.

                  (f) Headings. The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

                                      13
<PAGE>   17

                  (g) Notices. All notices, requests, demands, claims and other
communications hereunder will be in writing. Any notice, request, demand, claim
or other communication hereunder shall be deemed duly given if (and then two
business days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set
forth below:

           If to Parent or
           Seller Subsidiaries:      Newpark Resources, Inc.
                                     3850 North Causeway Boulevard, Suite 1770
                                     Metairie, Louisiana 70002-1752
                                     Attention:  Chief Financial Officer
                                     Telecopy:  (504) 833-9506

           Copy to:                  Ervin, Cohen & Jessup LLP
                                     9401 Wilshire Blvd., 9th Floor
                                     Beverly Hills, CA 90212-2974
                                     Attn:  Bertram K. Massing, Esq.
                                     Telecopy:  (310) 859-5224

           If to Buyer:              Tuboscope Inc.
                                     2835 Holmes Road
                                     Houston, Texas 77051
                                     Attention:  Chief Financial Officer
                                     Telecopy:  (713) 799-5100

           Copy to:                  Latham & Watkins
                                     650 Town Center Drive, 20th Floor
                                     Costa Mesa, California 92626
                                     Attention:  Patrick T.  Seaver, Esq.
                                     Telecopy:  (714) 755-8290

Any Party may send any notice, request, demand, claim or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been
duly given unless and until it actually is received by the intended recipient.
Any Party may change the address to which notices, requests, demands, claims
and other communications hereunder are to be delivered by giving the other
Party notice in the manner herein set forth.

                  (h) Governing Law. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Texas without
giving effect to any choice or conflict of law provision or rule (whether of
the State of Texas or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Texas.

                  (i) Amendments and Waivers. No amendment of any provision of
this Agreement shall be valid unless the same shall be in writing and signed by
Buyer and

                                      14
<PAGE>   18

Sellers. No waiver by any Party of any default, misrepresentation or
breach of warranty or covenant hereunder, whether intentional or not, shall be
deemed to extend to any prior or subsequent default, misrepresentation or
breach of warranty or covenant hereunder or affect in any way any rights
arising by virtue of any prior or subsequent such occurrence.

                  (j) Severability. Any term or provision of this Agreement
that is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

                  (k) Expenses. Each of the Parties will bear its own costs and
expenses (including legal fees and expenses) incurred in connection with this
Agreement and the transactions contemplated hereby.

                  (l) Construction. The Parties have participated jointly in
the negotiation and drafting of this Agreement. If an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if
drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring any Party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation. Nothing in the
Disclosure Schedule shall be deemed adequate to disclose an exception to a
representation or warranty made herein unless the Disclosure Schedule
identifies the exception with particularity and describes the relevant facts in
detail.

                  (m) Incorporation of Exhibits and Schedules. The Exhibits and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

                  (n) Specific Performance. Each of the Parties acknowledges
and agrees that the other Party would be damaged irreparably if any of the
provisions of this Agreement are not performed in accordance with their
specific terms or otherwise are breached. Accordingly, each of the Parties
agrees that the other Party shall be entitled to an injunction or injunctions
to prevent breaches of the provisions of this Agreement and to enforce
specifically this Agreement and the terms and provisions hereof in any action
instituted in any court of the United States or any state thereof having
jurisdiction over the Parties and the matter (subject to the provisions set
forth in Section 10(o) below), in addition to any other remedy to which it may
be entitled, at law or in equity.

                  (o) Submission to Jurisdiction. Each of the Parties submits
to the jurisdiction of any state or federal court sitting in Houston, Texas, in
any action or proceeding arising out of or relating to this Agreement and
agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court. Each Party also agrees not to bring any action or
proceeding arising out of or relating to this Agreement in any other court.
Each of the Parties waives any defense of inconvenient forum to the maintenance
of any action or proceeding so brought and waives any bond, surety or other
security that might be required of any other Party with respect thereto.
Nothing in this Section 10(o), however, shall affect the

                                      15
<PAGE>   19

right of any Party to serve legal process in any other manner permitted by law
or in equity. Each Party agrees that a final judgment in any action or
proceeding so brought shall be conclusive and may be enforced by suit on the
judgment or in any other manner provided by law or in equity.

                                     *****

                                      16
<PAGE>   20

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first above written.

                              TUBOSCOPE INC., a
                              Delaware corporation

                              By:
                                  ---------------------------------------------
                                  Name:    Joseph C. Winkler
                                  Title:   Executive Vice President, Chief
                                           Financial Officer and Treasurer

                              NEWPARK RESOURCES, INC., a
                              Delaware corporation

                              By:
                                  ---------------------------------------------
                                  Name:
                                  Title:

                              NEWPARK DRILLING FLUIDS, INC., a
                              Texas corporation

                              By:
                                   --------------------------------------------
                                   Name:
                                   Title:

                              NEWPARK HOLDINGS, INC., a
                              Louisiana corporation

                              By:
                                   --------------------------------------------
                                   Name:
                                   Title:

                                      17
<PAGE>   21

                                   SCHEDULE 1

                                Acquired Assets

A.  CORE ASSETS:

Newpark Resources, Inc.
Processing Service Assets
As of October 31, 1999

<TABLE>
<CAPTION>
                                                                            Book Value
                                                           Units             ($000's)
                                                           -----            ----------
<S>                                                         <C>             <C>
Gulf Coast Business Unit:

Land, Buildings and Contents
     Royalton Yard                                                             582

1850 Centrifuges - Gulf Coast                                2                 138

Tornado Dryers and Components                                3                 651

5500 Centrifuges and VFD's                                  28               7,227

Pumps                                                                          773

                                                                            ------
                                              Subtotal                       9,371

Mid-Continent Business Unit:

1850 Centrifuges w/VFD's                                    15                 839

5500 Centrifuges w/VFD's                                     4                 972

Pumps                                                       12                 100

                                                                            ------
                                              Subtotal                       1,911

SOLOCO:

PAH Pump and 350KW Generator                                                   200

                                                                            ------
                                                 TOTAL                      11,482

</TABLE>

<PAGE>   22
B.  NON-CORE ASSETS:

Newpark Resources, Inc.
Processing Service Assets
As of October 31, 1999

<TABLE>
<CAPTION>
                                                                        Book Value
                                                           Units         ($000's)
                                                           -----        ----------
<S>                                                                         <C>
Gulf Coast Business Unit:

Trucks, trailers, transportation equipment                                  129

Shakers                                                                     298

Mud Cleaners                                                                140

Screen Boxes                                                                 41

Stands                                                                      218

Tanks                                                                       169

Motors, Drives, Miscellaneous Equipment, Spares                             267

                                                                         -------
                                              Subtotal                    1,262

Mid-Continent Business Unit:

Stands                                                       9               49

Shakers                                                      6               97

Miscellaneous parts and equipment                                            80

                                                                        -------
                                              Subtotal                      226

                                                                        -------
                                                 TOTAL                    1,488

</TABLE>

<PAGE>   23
                                   EXHIBIT A

                              Form of Bill of Sale

                                  BILL OF SALE

                  For good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, Newpark Resources, Inc., a Delaware
corporation ("Parent"), Newpark Drilling Fluids, Inc., a Texas corporation
("NDA"), and Newpark Holdings, Inc., a Louisiana corporation (together with
NDA, "Selling Subsidiaries" and together with Parent, "Sellers"), do hereby
grant, bargain, transfer, sell, assign, convey and deliver to Tuboscope Inc., a
Delaware corporation ("Buyer"), all right, title and interest in and to the
Owned Assets as such term is defined in the Asset Purchase Agreement dated as
of November 12, 1999, by and among Sellers and Buyer (the "Agreement"). Buyer
hereby acknowledges that Buyer is accepting the Owned Assets on an "AS IS"
basis and in "WITH ALL FAULTS" condition and Sellers are making no
representation or warranty with respect to the assets being conveyed hereby
except as specifically set forth in the Agreement. Sellers for themselves,
their successors and assigns hereby covenant and agree that, at any time and
from time to time forthwith upon the written request of Buyer, Sellers will,
do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered, each and all of such further acts, deeds,
assignments, transfers, conveyances, powers of attorney and assurances as may
reasonably be required by Buyer in order to assign, transfer, set over, convey,
assure and confirm unto and vest in Buyer, its successors and assigns, title to
the assets sold, conveyed, transferred and delivered by this Bill of Sale.

                  This Bill of Sale is being executed and delivered by Sellers
pursuant to the terms of the Agreement. Executed at _______________________,
this ______ day of ___________, 1999.

NEWPARK RESOURCES, INC., a                       [SELLING SUBSIDIARY], a
Delaware corporation                             ______________ corporation

By:                                              By:
     -----------------------                         ---------------------------
      Name:                                           Name:
      Title:                                          Title:

STATE OF ____________________       )
                                            )  ss.
COUNTY OF __________________        )

On _______________________, before me, ___________________, personally appeared
____________________________________, personally known to me (or proved to me
on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

_________________________________                                      [SEAL]
  Notary Public in and for said
       County and State

STATE OF ____________________       )
                                    )
COUNTY OF __________________        )

On _______________________, before me, ___________________, personally appeared
____________________________________, personally known to me (or proved to me
on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

_________________________________                                  [SEAL]
Notary Public in and for said
    County and State

<PAGE>   24
                                   EXHIBIT B

                  Form of Assignment and Assumption Agreement

                      ASSIGNMENT AND ASSUMPTION AGREEMENT

                  Pursuant to that certain Asset Purchase Agreement, dated
November 12, 1999 (the "Agreement"), by and among Tuboscope Inc., a Delaware
corporation ("Buyer"), on the one hand, and Newpark Resources, Inc., a Delaware
corporation ("Parent"), Newpark Drilling Fluids, Inc., a Texas corporation
("NDF"), and Newpark Holdings, Inc., a Louisiana corporation (together with
NDF, "Selling Subsidiary" and together with Parent, "Sellers"), for good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged by the parties hereto, Sellers hereby assign their rights, title
and interest to the Acquired Assets (as defined in the Agreement) and duties
and obligations evidenced by the Assumed Liabilities (as defined in the
Agreement), and Buyer hereby accepts and assumes the Acquired Assets and
Assumed Liability, respectively, in each case by, and subject to the terms and
conditions of the Agreement. Except as expressly assumed herein, Buyer does not
assume and shall not in any manner be responsible for any liability (including
without limitation any contingent liability), obligation, lien or encumbrance
of Sellers.

TUBOSCOPE INC., a                             NEWPARK RESOURCES, INC., a
Delaware corporation                          Delaware corporation

By:                                           By:
     ------------------------                      ----------------------------
      Name:                                         Name:
      Title:                                        Title:

NEWPARK DRILLING FLUIDS, INC., a              NEWPARK HOLDINGS, INC., a
Texas corporation                             Louisiana corporation

By:                                           By:
     -----------------------                       ----------------------------
      Name:                                         Name:
      Title:                                        Title:

<PAGE>   25

                                   EXHIBIT C

                         Form of Special Warranty Deed

                             SPECIAL WARRANTY DEED

THE STATE OF TEXAS                  )
                                    )        Known All Men by These Presents:
COUNTY OF ___________               )

                  That NEWPARK DRILLING FLUIDS, INC., a Texas corporation, as
Grantor, for and in consideration of the sum of TEN AND NO/100 ($10.00) DOLLARS
to it in hand paid by TUBOSCOPE INC., a Delaware corporation, has Granted, Sold
and Conveyed and by these presents does Grant, Sell and Convey, unto the said
TUBOSCOPE INC., whose address is 2835 Holmes Road, Houston, Texas 77051, all
right, title and interest in and to the real property described on Exhibit "A"
attached hereto and made a part hereof.

                  This conveyance is expressly made subject to any and all
restrictions, covenants, conditions and easements, if any, relating to the
property conveyed, but only to the extent they are still in effect and shown of
record, and to all zoning laws, regulations and ordinances of municipal and
other governmental authorities, if any, but only to the extent that they are
still in effect relating to the herein described property.

                  TO HAVE AND TO HOLD the above described premises, together
with all and singular the rights and appurtenances thereto in anywise belonging
unto the said Grantor, its heirs and assigns forever and the undersigned does
hereby bind itself, its successors and assigns, to Warrant and Forever Defend,
all and singular the said premises unto the said TUBOSCOPE INC., its heirs and
assigns, against any and all acts, conveyances, liens and encumbrances
affecting such property made or suffered to be made or done by, through or
under Grantor, but not otherwise.

                  IN WITNESS WHEREOF, the Grantor has signed these presents at
Houston, Texas this ___ day of ______, 1999.

                                 NEWPARK DRILLING FLUIDS, INC.

                                 By:
                                      -----------------------------------------
                                 Name:
                                       ----------------------------------------
                                 Title:
                                       ----------------------------------------

State of Texas            )
                          )
County of Harris          )

                  On ___________, 1999, before me, ________________________, a
notary public in and for the State of Louisiana, personally appeared
________________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the within instrument the person, or the
entity upon behalf of which the person acted, executed the within instrument.

WITNESS my hand and official seal.

_________________________________   (Seal)
Notary Public

<PAGE>   26

                                   EXHIBIT D

                              Allocation Schedule<PAGE>   1
                                                                   EXHIBIT 10.26

                               ALLIANCE AGREEMENT

                                      AMONG

                                 TUBOSCOPE INC.,

                      TUBOSCOPE VETCO INTERNATIONAL, INC.,

                            NEWPARK RESOURCES, INC.,

                        NEWPARK DRILLING FLUIDS, L.L.C.,

                                       AND

                     NEWPARK ENVIRONMENTAL SERVICES, L.L.C.

                                February 3, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>      <C>                                                                                                     <C>
1.       Definitions..............................................................................................1

2.       Waste Services...........................................................................................3

         (a)      Waste Services Relationship.....................................................................3
         (b)      Pricing.........................................................................................3
         (c)      Representations and Covenants of the Tuboscope Parties..........................................4
         (d)      Existing Bids and Contracts.....................................................................5

3.       Brandt Energy Environmental, L.P.........................................................................5

         (a)      Acknowledgement by the Newpark Parties..........................................................5
         (b)      Covenants by the Tuboscope Parties..............................................................5
         (c)      Right of First Refusal..........................................................................5
         (d)      Purchase Option.................................................................................6

4.       Solids Control Services..................................................................................8

         (a)      Solids Control Relationship.....................................................................8
         (b)      Pricing.........................................................................................8
         (c)      Representations and Covenants of the Newpark Parties............................................9
         (d)      Canadian Market................................................................................10
         (e)      Existing Bids and Contracts....................................................................10

5.       Term and Termination....................................................................................10

         (a)      Term...........................................................................................10
         (b)      Termination by Mutual Consent..................................................................10
         (c)      Termination by Tuboscope.......................................................................10
         (d)      Termination by Newpark.........................................................................11
         (e)      Effect of Termination..........................................................................11
         (f)      Survival of Certain Provisions.................................................................11

6.       Indemnification.........................................................................................11

         (a)      Indemnification by the Tuboscope Parties.......................................................11
         (b)      Indemnification by the Newpark Parties.........................................................11

7.       Insurance...............................................................................................11

         (a)      Tuboscope Parties..............................................................................11
         (b)      Newpark Parties................................................................................11

8.       Miscellaneous...........................................................................................12

         (a)      Payment Terms..................................................................................12
         (b)      Press Releases and Public Announcements........................................................12
         (c)      Confidentiality................................................................................12
         (d)      No Agency......................................................................................13
         (e)      Force Majeure..................................................................................13
         (f)      No Third-Party Beneficiaries...................................................................13
         (g)      Entire Agreement...............................................................................13
         (h)      Succession and Assignment......................................................................13
</TABLE>

                                       i

<PAGE>   3

<TABLE>
<S>               <C>                                                                                           <C>
         (i)      Counterparts...................................................................................14
         (j)      Headings.......................................................................................14
         (k)      Notices........................................................................................14
         (l)      Governing Law..................................................................................15
         (m)      Amendments and Waivers.........................................................................15
         (n)      Severability...................................................................................15
         (o)      Expenses.......................................................................................15
         (p)      Construction...................................................................................15
         (q)      Submission to Jurisdiction.....................................................................15
         (r)      Remedies Not Exclusive.........................................................................15
</TABLE>

Exhibit A-Alliance Price Sheet

                                       ii
<PAGE>   4

                               ALLIANCE AGREEMENT

                  This Alliance Agreement is entered into as of February 3,
2000, by and among Tuboscope Inc., a Delaware corporation ("Tuboscope"), and
Tuboscope Vetco International, Inc., a Texas Corporation ("TVI", and
collectively with Tuboscope, the "Tuboscope Parties"), on the one hand, and
Newpark Resources, Inc., a Delaware corporation ("Newpark"), Newpark Drilling
Fluids, L.L.C., a Texas limited liability company ("NDF"), and Newpark
Environmental Services, L.L.C., a Louisiana limited liability company ("NES",
and together with Newpark and NDF, the "Newpark Parties"), on the other hand.
Tuboscope, TVI, Newpark, NDF and NES are referred to collectively herein as the
"Parties" and individually a "Party."

                                    RECITALS

                  WHEREAS, both the Tuboscope Parties and the Newpark Parties
conduct or have conducted oilfield solids control operations and oilfield waste
services operations in the United States;

                  WHEREAS, the Tuboscope Parties desire to discontinue their
oilfield waste services operations in the Gulf Coast Market (as defined herein);

                  WHEREAS, the Newpark Parties desire to discontinue their
oilfield solids control operations in the United States Market (as defined
herein);

                  WHEREAS, the Tuboscope Parties and the Newpark Parties desire
to establish a relationship by which (i) the Newpark Parties are the exclusive
providers of oilfield waste services to the Tuboscope Parties in the Gulf Coast
Market and (ii) the Tuboscope Parties are the exclusive providers of solids
control services to the Newpark Parties in the United States Market; and

                  WHEREAS, the Tuboscope Parties and the Newpark Parties desire
to define the terms of such relationship in this Agreement;

                  NOW, THEREFORE, in consideration of the premises and the
mutual promises herein made, and in consideration of the representations,
warranties and covenants herein contained, the Parties agree as follows:

         1.       Definitions.

                  "Affiliate" has the meaning set forth in Rule 12b-2 of the
regulations promulgated under the Securities Exchange Act of 1934, as amended.

                  "BEELP" has the meaning ascribed thereto in Section 3(a).

                  "Confidential Information" means, with respect to any Party,
all confidential information relating to the business affairs, finances,
products, services or intellectual property of such Party.

                  "Damages" has the meaning ascribed thereto in Section 6(a).

<PAGE>   5

                  "Discloser" has the meaning ascribed thereto in Section 8(c).

                  "Effective Date" has the meaning ascribed thereto in
Section 5(a).

                  "Exception Areas" means those areas within the States of
Texas, Louisiana, Mississippi, Alabama and Florida, including all territorial
waters of such states and all federal and international waters of the Gulf of
Mexico abutting such states, in which the Newpark Parties do not provide Waste
Services on terms and at prices at least as favorable to the purchaser of such
services as those offered by the primary participants in the Waste Services
market in such areas.

                  "Final Closing Date" has the meaning ascribed thereto in
Section 3(d)(iii).

                  "Gulf Coast Market" means the States of Texas, Louisiana,
Mississippi, Alabama and Florida, including all territorial waters of such
states and all federal and international waters of the Gulf of Mexico abutting
such states; provided, however, that the Gulf Coast Market does not include the
Exception Areas.

                  "High Island Site" has the meaning ascribed thereto in Section
3(a).

                  "Marine Conveyance" means a ship, supply boat, barge, shipping
container (including but not limited to a cutting box) or any other type of
marine conveyance.

                  "Newpark Notice" has the meaning ascribed thereto in Section
3(d)(i).

                  "Newpark Option" has the meaning ascribed thereto in Section
3(d)(i).

                  "Party" and "Parties" have the meanings set forth in the
preface above.

                  "Person" means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization, or a governmental entity (or any
department, agency, or political subdivision thereof).

                  "Recipient" has the meaning ascribed thereto in Section 8(c).

                  "Solids Control Services" means the business of selling and
renting equipment used in, and providing services relating to, the separation
and containment of solid drill cuttings from fluids used in oil and gas drilling
processes.

                  "Subsidiary" means any corporation, partnership, limited
liability company or other entity with respect to which a specified Person (or a
Subsidiary thereof) owns a majority of the voting power or has the power to vote
or direct the voting of sufficient securities to elect a majority of the
directors, general partners, managing members or the equivalent.

                  "Term" has the meaning ascribed thereto in Section 5(a).

                  "Tuboscope Interest" has the meaning ascribed thereto in
Section 3(c)(i).

                                       2
<PAGE>   6

                  "Tuboscope Offer" has the meaning ascribed thereto in Section
3(c)(i).

                  "United States Market" means all states within the United
States, including all state and territorial waters and the federal and
international waters of the Gulf of Mexico and other approved offshore drilling
regions of the United States, where oil and gas drilling and other energy well
bores are drilled and production exists or where disposal well drilling and
utility usage well bores are drilled, but excluding those areas of the United
States in which the Tuboscope Parties do not provide Solids Control Services on
terms and at prices at least as favorable to the purchaser of such services as
those offered by the primary participants in the Solids Control Services market
in such areas.

                  "Waste Services" means the business of processing and
disposing of oilfield exploration and production waste, but excludes Solids
Control Services.

         2.       Waste Services.

                  (a)    Waste Services Relationship.

                         (i)      Gulf Coast Market. Subject to the conditions
set forth herein, the Newpark Parties shall serve as the exclusive provider of
Waste Services to the Tuboscope Parties in the Gulf Coast Market during the
Term.

                         (ii)      Exception Areas. If the Tuboscope Parties
propose a Waste Services project in the Exception Areas, the Tuboscope Parties
shall notify the Newpark Parties in writing of such proposal prior to
commencement of the project. If the Tuboscope Parties propose to use a third
party provider of Waste Services for such project, their notice to the Newpark
Parties shall indicate the price and other payment terms offered by such third
party. Upon such notice from the Tuboscope Parties, the Newpark Parties shall
have ten days to match or beat the price and terms offered by the third party.
If the Newpark Parties at least match such price and terms, then the Newpark
Parties shall be the Waste Services provider for the project. If the Newpark
Parties do not at least match the price and terms of such third party provider,
the Tuboscope Parties shall be permitted to utilize the services of the third
party provider for so long as such services are provided by the third party
provider at prices and terms no less favorable to the Tuboscope Parties as those
set forth in the notice to the Newpark Parties. Additionally, nothing herein
shall prohibit the Tuboscope Parties from delivering waste to a customer (i.e.,
the owner of the waste) for the customer's disposal of the waste or to any third
party provider of Waste Services who has been specifically designated by a
Tuboscope Parties' customer; provided, however, that the Tuboscope Parties shall
not recommend any Waste Services provider other than the Newpark Parties and
shall provide Newpark with written notice of any delivery of waste to a third
party specifically designated by the customer.

                  (b)      Pricing.

                           (i)     Temporary Disposal Pricing. Until such time
as the Tuboscope Parties have withdrawn from the Waste Services business in the
Gulf Coast Market as provided herein, the Newpark Parties will provide disposal
services for materials delivered by the Tuboscope Parties to Port Arthur, Texas
by means of a barge at the following prices:

                                       3
<PAGE>   7

                                    (A)      if the barge is returned to service
for collection of waste by the Tuboscope Parties, $6.50 per barrel; and

                                    (B)      if the barge is returned to the
owner of such barge and removed from service for collection of waste, $4.50 per
barrel.

                           (ii)     General Pricing. Except as set forth in
Section 2(b)(i), all prospective Waste Services projects governed by this
Agreement shall be reviewed, priced, bid and submitted by the Newpark Parties.
Pricing shall take into consideration appropriate quantity discounts on large
projects as well as adjustments necessitated by special logistics. In all cases,
pricing shall not exceed the following (excluding special handling, special
services, cleaning or logistics required by the Tuboscope Parties, which will be
billed at the Newpark Parties' published list price):

                                    (A)      for waste disposal, 95% of the
Newpark Parties' current published list price;

                                    (B)      for services and dock charges, 95%
of the Newpark Parties' current published list price; and

                                    (C)      for cutting boxes, $4.75 per barrel
of designed capacity (stevedoring charge).

                           (iii)    No Superior Terms. The Newpark Parties
hereby represent and warrant that the above pricing terms, taken as a whole, are
at least as favorable to the Tuboscope Parties as the pricing terms for Waste
Services currently in effect with respect to, and being offered by the Newpark
Parties or their Subsidiaries to, any other customer or prospective customer of
the Newpark Parties or their Subsidiaries in the Gulf Coast Market. Moreover,
the Newpark Parties shall not during the term of this Agreement offer Waste
Services in the Gulf Coast Market to any other party on terms superior (from the
standpoint of the other party) to the terms set forth above without also
concurrently offering such terms to the Tuboscope Parties. If the Newpark
Parties offer such superior terms to the Tuboscope Parties and the Tuboscope
Parties accept such terms, the Newpark Parties and the Tuboscope Parties shall
enter into an amendment to this Agreement to reflect such superior terms.

                  (c)      Representations and Covenants of the Tuboscope
Parties.

                           (i)      Discontinued Operations. The Tuboscope
Parties represent and warrant that, except for the operations of BEELP, they and
their Subsidiaries have discontinued their Waste Services operations in the Gulf
Coast Market.

                           (ii)     Authority, No Conflict; Enforceability: Each
of the Tuboscope Parties hereby represents and warrants as follows: (1) it has
the full authority and legal right to carry out the terms of this Agreement; (2)
the terms of this Agreement will not violate the terms of any material
agreement, contract or other instrument to which it is a party and no consent or
authorization of any other person is required in order for it to enter into and
carry out the terms of this Agreement; (3) it has taken all corporate and other
action necessary to authorize the execution and delivery of this Agreement; and
(4) this Agreement is a legal, valid and binding

                                       4
<PAGE>   8

obligation of such Tuboscope Party, enforceable against it in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
relating to or affecting the enforcement of the rights of creditors or by
equitable principles, whether enforcement is sought in equity or at law.

                           (iii)    No Solicitation. From the Effective Date
until the end of the Term, the Tuboscope Parties shall not actively solicit any
Waste Services business in the Gulf Coast Market.

                           (iv)     Oilfield Waste Collection Stations.
From the Effective Date until the end of the Term, the Tuboscope Parties shall
not operate, or provide marine transportation services for, oilfield waste
collection stations in the Gulf Coast Market without the prior written consent
of the Newpark Parties.

                           (v)      Exceptions. Notwithstanding
anything to the contrary herein, the Tuboscope Parties and their Subsidiaries
are expressly permitted (A) to conduct Solids Control Services operations in the
Gulf Coast Market and the Exception Areas and (B) to continue offering Waste
Services through "on lease" disposal and thermal desorption technologies (e.g.,
cuttings reinjection, thermal desorption, land farming and land spreading, end
of well pump downs and pit closures) to customers in the Gulf Coast Market and
the Exception Areas.

                  (d)      Existing Bids and Contracts. The Tuboscope Parties
have delivered, or will promptly deliver, to the Newpark Parties all of the
Tuboscope Parties' annual contracts and outstanding bids relating to Waste
Services. The Newpark Parties will not be obligated to honor the terms of such
contracts and bids; provided, however, that the Newpark Parties will consider
exceptions for committed single-well drilling projects which were underway as of
November 12, 1999. Each such annual contract and outstanding bid must be
withdrawn by the Tuboscope Parties unless the Newpark Parties expressly consent
to the continuance of such contract or bid.

         3.       Brandt Energy Environmental, L.P.

                  (a)      Acknowledgement by the Newpark Parties. The Newpark
Parties acknowledge that the Tuboscope Parties or their Subsidiaries are the
majority owners of Brandt Energy Environmental, L.P. ("BEELP"), which operates a
Waste Services business in the Gulf Coast Market, including the High Island
injection disposal site (the "High Island Site"). The Newpark Parties further
acknowledge that the Tuboscope Parties or their Subsidiaries have certain
contractual obligations to the other owners of BEELP which could result in the
High Island Site remaining in competition with the Newpark Parties under
separate management. Nothing herein shall prevent the Tuboscope Parties or their
Subsidiaries from fulfilling their contractual obligations to the other owners
of BEELP.

                  (b)      Covenants by the Tuboscope Parties. As soon as
practical after the Effective Date, to the extent consistent with their
contractual obligations, the Tuboscope Parties will, and will cause their
Subsidiaries to, use their best efforts to cease an active role in the
management of BEELP and to cease providing financial support to BEELP.

                  (c)      Right of First Refusal.

                                       5
<PAGE>   9

                           (i)      Restrictions on Transfer. The Tuboscope
Parties may not transfer their interest in the High Island Site (the "Tuboscope
Interest") to any third party which is not affiliated with a Tuboscope Party
without first offering such interest to the Newpark Parties. Prior to
transferring the Tuboscope Interest to a proposed third party, the Tuboscope
Parties shall provide to Newpark a written offer to transfer to the Newpark
Parties the Tuboscope Interest on terms (including price terms) no less
favorable than those offered to the proposed third party (a "Tuboscope Offer").
The written offer shall set forth the proposed amount and form of consideration
and terms and conditions of payment for the Tuboscope Interest.

                           (ii)     Option to Purchase. Upon Newpark's receipt
of a Tuboscope Offer, the Newpark Parties shall have the option, for a period of
30 days, to purchase the Tuboscope Interest by delivering written notice of
their exercise of the option to Tuboscope. If the Newpark Parties do not deliver
such notice of exercise within the 30-day period described above, the Tuboscope
Parties shall have the right for a period of 90 days after the expiration of
such 30-day period (or, if sooner, after written waiver by the Newpark Parties
of their option to purchase) to offer for sale, and to sell, the Tuboscope
Interest to a third party, but only at a price per share and on terms and
conditions no less favorable to the purchaser than those set forth in the
Tuboscope Offer.

                           (iii)    Claims. If the Newpark Parties elect to
purchase the Tuboscope Interest pursuant to this Section 3(c), the closing of
such purchase shall take place on or before the fifteenth day following the date
the Newpark Parties deliver their notice of exercise (or, if such date is not a
business day, the next succeeding business day) or on such other date as
Tuboscope and Newpark agree, but in no case more than 90 days after the date the
Newpark Parties deliver their notice of exercise.

                           (iv)     Expiration. The right of first refusal
provided for in this Section 3(c) shall terminate on the third anniversary of
this Agreement.

                  (d)      Purchase Option.

                           (i)      General Terms. Subject to the consent of the
other owners of BEELP, the Tuboscope Parties hereby grant to the Newpark Parties
a two-year option (the "Newpark Option") to purchase the Tuboscope Interest on
an "AS IS" basis (but subject to customary representations, warranties and
indemnification on behalf of the Tuboscope Parties) for fair market value
(calculated in accordance with Section 3(d)(ii) below). To validly exercise this
option, the Newpark Parties must provide written notice to the Tuboscope Parties
of their intention to purchase the Tuboscope Interest (the "Newpark Notice") on
or prior to the second anniversary of this Agreement. If the Newpark Parties do
not provide the Newpark Notice to the Tuboscope Parties on or before the second
anniversary of this Agreement, the Newpark Option shall expire and be of no
further force or effect. The Tuboscope Parties agree to use commercially
reasonable efforts to obtain the consent of the other owners of BEELP to the
option granted hereby.

                           (ii)     Fair Market Value.

                                       6
<PAGE>   10

                                    (A)      For purposes of Section 3(d)(i)
above, the fair market value of the Tuboscope Interest shall be determined by
agreement of the Newpark Parties and the Tuboscope Parties or by a certified
appraiser appointed in accordance with this Section 3(d)(ii). If the Newpark
Parties exercise the Newpark Option, the Newpark Parties and the Tuboscope
Parties shall attempt to agree on the fair market value of the Tuboscope
Interest. If the Tuboscope Parties and the Newpark Parties are unable to agree
on such fair market value within 30 days after the date of the Newpark Notice,
the fair market value of the Tuboscope Interest shall be determined by one or
more independent certified appraisers, selected in accordance with this Section
3(d)(ii).

                                    (B)      If the fair market value of the
Tuboscope Interest is not determined by mutual agreement of the parties in
accordance with Section 3(d)(ii)(A), then, within 60 days after the date of the
Newpark Notice, the Tuboscope Parties and the Newpark Parties shall attempt to
mutually designate one certified appraiser. If the Tuboscope Parties and the
Newpark Parties mutually designate a certified appraiser within such 60-day
period, then such certified appraiser shall determine the fair market value of
the Tuboscope Interest. The fees and expenses of such certified appraiser shall
be borne equally by the Tuboscope Parties, on the one hand, and the Newpark
Parties, on the other hand.

                                    (C)      If the Tuboscope Parties are unable
to agree on a certified appraiser within such 60-day period, then within 75 days
after the date of the Newpark Notice, the Tuboscope Parties shall designate one
certified appraiser and the Newpark Parties shall designate another certified
appraiser. In such case, the two certified appraisers shall independently
appraise the Tuboscope Interest within 105 days after the date of the Newpark
Notice. If the appraisals of the two certified appraisers are within a 10%
range, then the average of such appraisals shall constitute the fair market
value of the Tuboscope Interest. The fees and expenses of the appraiser
designated by the Tuboscope Parties shall be borne by the Tuboscope Parties and
the fees and expenses of the appraiser designated by the Newpark Parties shall
be borne by the Newpark Parties.

                                    (D)      If there is a variance of greater
than 10% between any appraisals performed pursuant to Section 3(d)(ii)(c), then
the two certified appraisers appointed pursuant to Section 3(d)(ii)(c) shall
jointly appoint a third certified appraiser, or if they cannot agree to such
appointment within 125 days after the date of the Newpark Notice, then the
senior sitting Federal District Judge for the Southern District of Texas,
Houston Division, on active status, acting in a nonjudicial capacity, shall
appoint such certified appraiser on written request made by any Party. This
certified appraiser shall determine the fair market value of the Tuboscope
Interest. The fees and expenses of such certified appraiser shall be borne
equally by the Tuboscope Parties, on the one hand, and the Newpark Parties, on
the other hand.

                                    (E)      The fair market value of the
Tuboscope Interest as determined by this Section 3d(ii) shall in all cases be
determined as of the date of the Newpark Notice, subject to any material adverse
changes occurring since the date of the Newpark Notice.

                           (iii)    Closing. If the Newpark Parties exercise the
Newpark Option, they must complete the purchase of the Tuboscope Interest on or
before the fifteenth day after the date that the fair market value of the
Tuboscope Interest is determined in accordance with

                                       7
<PAGE>   11

Section 3(d)(ii) (the "Final Closing Date"). If the Newpark Parties fail to
complete the purchase of the Tuboscope Interest by the Final Closing Date as a
result of the failure by any of the Newpark Parties to perform its obligations
in connection with such purchase, the Newpark Option will expire and be of no
further force or effect. The closing of such purchase shall take place at the
principal corporate office of Tuboscope. At such closing, the Tuboscope Parties
shall assign and deliver to the Newpark Parties the appropriate instruments
evidencing the Tuboscope Interest. The Newpark Parties shall deliver to the
Tuboscope Parties the full consideration therefor specified in Section 3(d)(ii)
in immediately available funds. Any transfer or similar taxes involved in such
sale shall be paid by the Newpark Parties.

                           (iv)     No Prohibition on Sale. Nothing in this
Section 3(d) shall prohibit the Tuboscope Parties from selling or otherwise
transferring the Tuboscope Interest to a third party subject to the restrictions
of Section 3(c).

         4.       Solids Control Services.

                  (a)      Solids Control Relationship.

                           (i)      United States Market. Subject to the
conditions set forth herein, the Tuboscope Parties shall serve as the exclusive
provider of Solids Control Services to the Newpark Parties in the United States
Market.

                           (ii)     Exceptions. If the Newpark Parties propose a
Solids Control Service project in an area in which the Tuboscope Parties do not
provide Solids Control Services on terms and at prices at least as favorable to
the purchaser of such services as those offered by the primary participants in
the Solids Control Services market in such area, the Newpark Parties shall
notify the Tuboscope Parties in writing of such proposal prior to commencement
of the project. If the Newpark Parties propose to use a third party provider of
Solids Control Services for such project, their notice to the Tuboscope Parties
shall indicate the price and other payment terms offered by such third party.
Upon such notice from the Newpark Parties, the Tuboscope Parties shall have ten
days to match or beat the price and terms offered by the third party. If the
Tuboscope Parties at least match such price and terms, then the Tuboscope
Parties shall be the Solids Control Service provider for the project. If the
Tuboscope Parties do not at least match the price and terms of such third party
provider, the Newpark Parties shall be permitted to utilize the services of the
third party provider for so long as such services are provided by the third
party provider at a price and terms no less favorable to the Tuboscope Parties
as those set forth in the notice to the Newpark Parties. Additionally, nothing
herein shall prohibit the Newpark Parties from using a third party provider of
Solids Control Services who has been specifically designated by a Newpark
Parties' customer; provided, however, that the Newpark Parties shall not
recommend any Solids Control Services provider other than the Tuboscope Parties
and shall provide the Tuboscope Parties with written notice of any delivery of
waste to a third party specifically designated by the customer.

                  (b)      Pricing.

                  (i)      General Pricing. All prospective Solids Control
Services projects governed by this Agreement shall be reviewed, priced, bid and
submitted by the Tuboscope

                                       8
<PAGE>   12

Parties. Pricing shall take into consideration appropriate quantity discounts on
large projects as well as adjustments necessitated by special logistics. In all
cases, the percentage discounts off published list prices to the Newpark Parties
shall equal or exceed the discounts listed on Exhibit A. Exhibit A also contains
a compilation of Tuboscope's recent published list prices. It is acknowledged
that the prices listed on Exhibit A may be raised by Tuboscope from time to
time.

                  (ii)     Special Pricing on Newpark Minimization Management
Projects. Notwithstanding the foregoing, on each "minimization management"
project of the Newpark Parties, the Tuboscope Parties shall offer to the Newpark
Parties Solids Control Services with pricing at 10% below the "bid pricing"
offered to the customer on such project; provided that such "bid pricing" must
be reasonably acceptable to the Tuboscope Parties.

                  (iii)    No Superior Terms. The Tuboscope Parties hereby
represent and warrant that the above pricing terms, taken as a whole, are at
least as favorable to the Newpark Parties as the pricing terms for Solids
Control Services currently in effect with respect to, and being offered by the
Tuboscope Parties or their Subsidiaries to, any other customer or prospective
customer of the Tuboscope Parties or their Subsidiaries in the United States
Market, except for those offered by Tuboscope's subsidiary, Advanced Wire Cloth,
Inc., with respect to replacement screens for shakers. Moreover, the Tuboscope
Parties shall not during the term of this Agreement offer Solids Control
Services in the United States Market to any other party on terms superior (from
the standpoint of the other party) to the terms set forth above without also
concurrently offering such terms to the Newpark Parties. If the Tuboscope
Parties offer such superior terms to the Newpark Parties and the Newpark Parties
accept such terms, the Newpark Parties and the Tuboscope Parties shall enter
into an amendment to this Agreement to reflect such superior terms.

         (c)      Representations and Covenants of the Newpark Parties.

                  (i)      Discontinued Operations. The Newpark Parties
represent and warrant that they and their Subsidiaries have discontinued their
Solids Control Services operations in the United States Market.

                  (ii)     Authority; No Conflict; Enforceability. Each of the
Newpark Parties hereby represents and warrants as follows: (1) it has the full
authority and legal right to carry out the terms of this Agreement; (2) the
terms of this Agreement will not violate the terms of any material agreement,
contract or other instrument to which it is a party and no consent or
authorization of any other person is required in order for it to enter into and
carry out the terms of this Agreement; (3) it has taken all corporate and other
action necessary to authorize the execution and delivery of this Agreement; and
(4) this Agreement is a legal, valid and binding obligation of such Newpark
Party, enforceable against it in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application relating to or
affecting the enforcement of the rights of creditors or by equitable principles,
whether enforcement is sought in equity or at law.

                                       9
<PAGE>   13

                           (iii)    No Solicitation. From the Effective Date
until the end of the Term, the Newpark Parties shall not actively solicit any
Solids Control Services business in the United States Market.

                           (iv)     Exceptions. Notwithstanding anything to the
contrary herein, the Newpark Parties and their Subsidiaries are expressly
permitted to directly participate in minimization management and drilling fluids
projects (i) at rig sites at which they utilize the products and services of the
Tuboscope Parties and (ii) at all projects in which the Tuboscope Parties do not
at least match the price and terms of the third party provider as set forth in
Section 4(a)(ii).

                  (d)      Canadian Market. The Parties shall use their best
efforts to enter into an alliance with respect to Solids Control Services in
Canada on substantially the same terms as those relating to the United States
Market set forth herein.

                  (e)      Existing Bids and Contracts. The Newpark Parties have
delivered, or will promptly deliver, to the Tuboscope Parties all of the Newpark
Parties' annual contracts and outstanding bids relating to Solids Control
Services. The Tuboscope Parties will not be obligated to honor the terms of such
contracts and bids; provided, however, that the Tuboscope Parties will consider
exceptions for committed single-well drilling projects which were underway as of
November 12, 1999. Each such annual contract and outstanding bid must be
withdrawn by the Newpark Parties unless the Tuboscope Parties expressly consent
to the continuance of such contract or bid.

         5.       Term and Termination.

                  (a)      Term. This Agreement shall be effective on the date
of this Agreement (the "Effective Date") and shall continue in effect from the
Effective Date until three years thereafter unless terminated earlier pursuant
to the provisions of this Section 5 or extended by mutual consent of the
parties. Thereafter, this Agreement shall automatically renew for successive one
year terms unless either party provides the other with written notice of its
intention to terminate this Agreement at least 90 days prior to the expiration
of the then-current term. The period in which this Agreement is in effect is
referred to herein as the "Term."

                  (b)      Termination by Mutual Consent. The Parties may
terminate this Agreement upon the unanimous consent of the Parties.

                  (c)      Termination by Tuboscope. Tuboscope will have the
right to terminate this Agreement immediately upon written notice to Newpark at
any time if:

                           (i)      Any Newpark Party is in material breach of
(i) any material term, condition or covenant of this Agreement or (ii) its
payment obligations under any other contract with a Tuboscope Party related to
Solids Control Services, and, in either case, fails to cure that breach within
30 days after written notice of such breach.

                           (ii)     Newpark: (A) becomes insolvent; (B) admits
in writing to insolvency or inability to pay its debts or perform its
obligations as they mature; or (C) makes an assignment for the benefit of
creditors.

                                       10
<PAGE>   14

                  (d)      Termination by Newpark. Newpark will have the right
to terminate this Agreement immediately upon written notice to Tuboscope at any
time if:

                           (i)      Any Tuboscope Party is in material breach of
(i) any material term, condition or covenant of this Agreement or (ii) its
payment obligations under any other contract with a Newpark Party related to
Waste Services and, in either case, fails to cure that breach within 30 days
after written notice of such breach.

                           (ii)     Tuboscope: (A) becomes insolvent; (B) admits
in writing to insolvency or inability to pay its debts or perform its
obligations as they mature; or (C) makes an assignment for the benefit of its
creditors.

                  (e)      Effect of Termination. If any Party terminates this
Agreement pursuant to this Section 5, all rights and obligations of the Parties
hereunder shall terminate without any liability of any Party to any other Party
(except for any liability of any Party then in breach).

                  (f)      Survival of Certain Provisions. Sections 6 and 8
shall survive the termination of this Agreement.

         6.       Indemnification.

                  (a)      Indemnification by the Tuboscope Parties. The
Tuboscope Parties shall indemnify, defend and hold harmless the Newpark Parties
and the Newpark Parties' affiliates, stockholders, members, directors, officers,
employees, contractors, agents and other representatives from all demands,
claims, actions, causes of action, proceedings, assessments, losses, damages,
liabilities, settlements, judgments, fines, penalties, interest, costs and
expenses (including fees and disbursements of counsel) (collectively, "Damages")
of every kind (i) directly caused by the provision by the Tuboscope Parties of
Solids Control Services pursuant to this Agreement and (ii) arising from or
related to any breach by the Tuboscope Parties of any of their obligations under
this Agreement.

                  (b)      Indemnification by the Newpark Parties. The Newpark
Parties shall indemnify, defend and hold harmless the Tuboscope Parties and the
Tuboscope Parties' affiliates, stockholders, members, directors, officers,
employees, contractors, agents and other representatives from all Damages of
every kind (i) directly caused by the provision by the Newpark Parties of Waste
Services pursuant to this Agreement and (ii) arising from or related to any
breach by the Newpark Parties of any of their obligations under this Agreement.

         7.       Insurance.

                  (a)      Tuboscope Parties. The Tuboscope Parties agree to
maintain fire and casualty, general liability and product liability insurance
coverage covering their Solids Control Services operations hereunder throughout
the Term, which coverage shall be from reputable insurance carriers and shall be
in character and amount at least equivalent to that carried by persons engaged
in similar businesses and subject to the same or similar hazards.

                  (b)      Newpark Parties. The Newpark Parties agree to
maintain fire and casualty, general liability and product liability insurance
coverage covering their Waste Services

                                       11
<PAGE>   15

operations hereunder throughout the Term, which coverage shall be from reputable
insurance carriers and shall be in character and amount at least equivalent to
that carried by persons engaged in similar businesses and subject to the same or
similar hazards.

         8.       Miscellaneous.

                  (a)      Payment Terms. All invoices and other charges payable
hereunder will be paid solely in United States Dollars. If conversion from other
currencies is required for any purpose, the mid-market, mid-day rate as posted
by Reuters shall apply. All invoices will be due and payable in full within 30
days after receipt. Any amounts disputed in good faith and the reasons therefor
shall be reported within 15 days after receipt of the applicable invoice, and
the Parties agree to work diligently to resolve the dispute within 30 days of
the receipt of the notice of dispute. Invoices that are not paid within 30 days,
other than those for which a dispute has been reported in good faith, shall be
assessed a late payment charge at the rate of 1.5% per month on the unpaid
invoice, retroactive to the date of invoice.

                  (b)      Press Releases and Public Announcements. Neither the
Tuboscope Parties, on the one hand, or the Newpark Parties, on the other hand,
shall issue any press release or make any public announcement relating to the
subject matter of this Agreement without the prior written approval of the
other; provided, however, that any Party may make any public disclosure it
believes in good faith is required by applicable law or any listing or trading
agreement concerning its publicly-traded securities (in which case the
disclosing Party will use its reasonable best efforts to advise Tuboscope or
Newpark, as appropriate, prior to making the disclosure).

                  (c)      Confidentiality. In the performance of or otherwise
in connection with this Agreement, any party ("Discloser") may disclose to any
other party ("Recipient") certain Confidential Information of the Discloser. The
Recipient will treat such Confidential Information as confidential and
proprietary of the Discloser and during and after the Term will:

                           (i)      use the Confidential Information of the
Discloser solely for the purposes set forth in this Agreement;

                           (ii)     take suitable precautions and measures to
maintain the confidentiality of the Confidential Information of the Discloser;
and

                           (iii)    not disclose or otherwise furnish the
Confidential Information of the Discloser to any third party other than
employees or independent contractors of the Recipient who have a need to know
the Confidential Information to perform its obligations under this Agreement,
provided such employees or independent contractors are obligated to maintain the
confidentiality of the Confidential Information.

                           (iv)     The obligations under this Section 8(c) will
not apply to any: (i) use or disclosure of any information pursuant to the
exercise of the Discloser's rights under this Agreement; (ii) information that
is now or hereafter becomes generally known or available to the public other
than through a violation of this Agreement; (iii) information that is obtained
by the Recipient from a third party (other than in connection with this
Agreement) who was not under any obligation of secrecy or confidentiality with
respect to such information;

                                       12
<PAGE>   16

(iv) information that is independently developed by the Recipient without
reference to any Confidential Information and such independent development can
be shown by documentary evidence; (v) any disclosure required by applicable law,
provided that the Recipient will use reasonable efforts to give advance notice
to and cooperate with the Discloser in connection with any such disclosure; and
(vi) any disclosure made with the consent of the Discloser. The Recipient shall
promptly return to the Discloser or destroy all copies of any Confidential
Information of the Discloser in its possession or control upon request, or in
any event, upon any termination or expiration of the Term.

                  (d)      No Agency. Each of the Tuboscope Parties, on the one
hand, and the Newpark Parties, on the other hand, will act as an independent
contractor hereunder, and neither will (i) have authority or represent that it
has any authority to assume or create any obligation, express or implied, on
behalf of the other, or (ii) represent the other as an agent, employee or in any
other capacity. Neither execution nor performance of this Agreement shall be
construed to have established any agency, joint venture or partnership.

                  (e)      Force Majeure. If performance hereunder is prevented,
restricted or interfered with by any act or condition whatsoever beyond the
reasonable control of a Party, the Party so affected, upon giving prompt notice
to the other Parties, shall be excused from such performance to the extent of
such prevention, restriction or interference. In the event of any such
prevention, restriction or interference, the party affected shall promptly
notify the other party in writing and shall use all commercially reasonable
efforts to overcome the event or circumstance causing the prevention,
restriction or interference as soon as practicable. In addition, if a party's
performance is excused pursuant to this Section 8(e), the other party may take
any steps deemed reasonably necessary to secure the services of a third party to
replace the services previously provided by the non-performing party for so long
as such prevention, restriction or interference shall remain and for a
reasonable period of time thereafter if necessary to secure such replacement
services.

                  (f)      No Third-Party Beneficiaries. This Agreement shall
not confer any rights or remedies upon any Person other than the Parties and
their respective successors and permitted assigns.

                  (g)      Entire Agreement. This Agreement (including the
documents referred to herein) constitutes the entire agreement between the
Parties and supersedes any prior understandings, agreements or representations
by or between the Parties, written or oral, to the extent they related in any
way to the subject matter hereof.

                  (h)      Succession and Assignment. This Agreement shall be
binding upon and inure to the benefit of the Parties named herein and their
respective successors and permitted assigns. No Party may assign either this
Agreement or any of its rights, interests or obligations hereunder without the
prior written approval of the other Party; provided, however, that any Party may
(i) assign any or all of its rights and interests hereunder to one or more of
its Affiliates and (ii) designate one or more of its Affiliates to perform its
obligations hereunder (in any or all of which cases such Party nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

                                       13
<PAGE>   17

                  (i)      Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. This Agreement may be
executed by any party by delivery of a facsimile signature, which signature
shall have the same force and effect as an original signature. Any Party which
delivers a facsimile signature shall promptly thereafter deliver an originally
executed signature to the other Parties; provided, however, that the failure to
deliver an original signature page shall not affect the validity of any
signature delivered by facsimile.

                  (j)      Headings. The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

                  (k)      Notices. All notices, requests, demands, claims and
other communications hereunder will be in writing. Any notice, request, demand,
claim or other communication hereunder shall be deemed duly given if (and then
two business days after) it is sent by registered or certified mail, return
receipt requested, postage prepaid, and addressed to the intended recipient as
set forth below:

                  If to any          Newpark Resources, Inc.
                  Newpark Party:     3850 North Causeway Boulevard, Suite 1770
                                     Metairie, Louisiana 70002-1752
                                     Attention:  Chief Financial Officer
                                     Telecopy: (504) 833-9506

                  Copy to:           Ervin, Cohen & Jessup LLP
                                     9401 Wilshire Blvd., 9th Floor
                                     Beverly Hills, CA 90212-2974
                                     Attn:  Bertram K. Massing, Esq.
                                     Telecopy: (310) 859-2325

                  If to any          Tuboscope Inc.
                  Tuboscope Party:   2835 Holmes Road
                                     Houston, Texas 77051
                                     Attention:  Chief Financial Officer
                                     Telecopy: (713) 799-5227

                  Copy to:           Latham & Watkins
                                     650 Town Center Drive, 20th Floor
                                     Costa Mesa, California 92626
                                     Attention:  Patrick T. Seaver, Esq.
                                     Telecopy: (714) 755-8290

Any Party may send any notice, request, demand, claim or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail or electronic mail), but no such notice, request,
demand, claim, or other communication shall be deemed to have been duly given
unless and until it actually is received by the intended recipient. Any Party
may

                                       14
<PAGE>   18

change the address to which notices, requests, demands, claims and other
communications hereunder are to be delivered by giving the other Parties notice
in the manner herein set forth.

                  (l)      Governing Law. This Agreement shall be governed by
and construed in accordance with the domestic laws of the State of Texas without
giving effect to any choice or conflict of law provision or rule (whether of the
State of Texas or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Texas.

                  (m)      Amendments and Waivers. No amendment of any provision
of this Agreement shall be valid unless the same shall be in writing and signed
by Tuboscope and Newpark. No waiver by any Party of any default,
misrepresentation or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation or breach of warranty or covenant hereunder or affect
in any way any rights arising by virtue of any prior or subsequent such
occurrence.

                  (n)      Severability. Any term or provision of this Agreement
that is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

                  (o)      Expenses. Each of the Parties will bear its own costs
and expenses (including legal fees and expenses) incurred in connection with
this Agreement and the transactions contemplated hereby.

                  (p)      Construction. The Parties have participated jointly
in the negotiation and drafting of this Agreement. If an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if
drafted jointly by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement.

                  (q)      Submission to Jurisdiction. Each of the Parties
submits to the jurisdiction of any state or federal court sitting in Houston,
Texas, in any action or proceeding arising out of or relating to this Agreement
and agrees that all claims in respect of the action or proceeding may be heard
and determined in any such court. Each Party also agrees not to bring any action
or proceeding arising out of or relating to this Agreement in any other court.
Each of the Parties waives any defense of inconvenient forum to the maintenance
of any action or proceeding so brought and waives any bond, surety or other
security that might be required of any other Party with respect thereto. Nothing
in this Section 8(q), however, shall affect the right of any Party to serve
legal process in any other manner permitted by law or in equity. Each Party
agrees that a final judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment or in any other manner
provided by law or in equity.

                  (r)      Remedies Not Exclusive. Except as specifically
provided for elsewhere in this Agreement, no remedy conferred by any of the
specific provisions of this Agreement is intended to be exclusive of any other
remedy, and each and every remedy will be cumulative and will be in addition to
every other remedy given hereunder or now or hereafter existing at law or in
equity or by statute or otherwise. The election of any one or more remedies by a
party will not constitute a waiver of the right to pursue other available
remedies.

                                      *****

                                       15
<PAGE>   19

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first above written.

                         TUBOSCOPE INC., a
                         Delaware corporation

                         By:
                            ---------------------------------------
                         Name:
                         Title:

                         TUBOSCOPE VETCO INTERNATIONAL, INC., a
                         Texas corporation

                         By:
                            ---------------------------------------
                         Name:
                         Title:

                         NEWPARK RESOURCES, INC., a
                         Delaware corporation

                         By:
                            ---------------------------------------
                         Name:
                         Title:

                         NEWPARK DRILLING FLUIDS, L.L.C.,
                         a Texas limited liability company

                         By:
                            ---------------------------------------
                         Name:
                         Title:

                         NEWPARK ENVIRONMENTAL SERVICES,
                         L.L.C., a Louisiana limited
                         liability company

                         By:
                            ---------------------------------------
                         Name:
                         Title:

                                       16
<PAGE>   20

                                   EXHIBIT A

                              ALLIANCE PRICE SHEET
                              --------------------

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