Document:

Exhibit

EXHIBIT 10.2

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement (“Agreement”) is entered into this 2nd day of July 2019 with an anticipated effective date of July 15, 2019 (the “Effective Date”) between Bruce C. Smith (“Consultant”) and NEWPARK RESOURCES, INC. (“Company”).

		
	WHEREAS, 
	the Company and Consultant agree that certain matters in which Consultant has been involved during Consultant’s employment with the Company that is expected to end upon Consultant’s anticipated retirement from the Company on the Effective Date may need Consultant’s cooperation with the Company in the future, 

		
	WHEREAS,
	the Company desires to retain Consultant’s services and availability after the Effective Date, subject to the terms and conditions set forth below;  and

		
	WHEREAS, 
	Consultant has agreed to perform services to the Company as may from time to time starting on the Effective Date be requested by the Company, on the terms set forth below;

NOW, THEREFORE, the parties hereby agree as follows:

		
	1.
	Term.  This Agreement shall commence on the Effective Date and continue for a twelve (12) month term, unless terminated sooner pursuant to the mutual consent of the parties hereto.

		
	2.
	Consulting Services and Cooperation. During the term of this Agreement, Consultant agrees to fully cooperate with Company and provide consulting services, as requested by the Company as follows:

		
	a.
	Provide guidance, counseling and direction to the Company’s staff when called upon.

		
	b.
	Attend meetings and provide support for special projects when called upon. 

		
	c.
	Provide truthful testimony and information and to otherwise reasonably cooperate with the Company Group in connection with any and all existing, potential or future claims, litigation or investigations brought by or against the Company or any of its past or present affiliates, agents, officers, directors, fiduciaries, or employees, whether administrative, civil or criminal in nature, with respect to such matters as were within Consultant’s knowledge while employed by the Company.  The Consultant agrees, unless precluded by law, to promptly inform the Company if the Consultant is asked to assist in any investigation (whether governmental or otherwise) of the Company, regardless of whether a lawsuit has been filed against any member of the Company with respect to such investigation.

		
	3.
	Consideration. In exchange for Consultant’s services and availability and the promises contained herein, the Company will pay Consultant the following:

		
	a.
	Company will pay Consultant an hourly rate of $250.00 USD per hour for performing consulting services at the request of any officer of the Company.  

		
	b.
	Further, Company will pay Consultant mileage at the current Company-approved reimburse rate for business use of a personal vehicle, which is $0.575 USD per mile as of the Effective Date of this agreement. This rate will increase or decrease as the Company-approved reimbursement rate increases or decreases. Consultant shall submit written documentation and receipts itemizing the expenses for which reimbursement is sought. The Company’s prior written approval shall be obtained for any single expense in excess of $200.00 USD.

		
	c.
	Consultant will submit a written report describing the Consulting Services performed for each calendar month, and reflecting the fees and expenses incurred.  Such report shall be submitted 

EXHIBIT 10.2

within 15 days of the end of each  month to the Chief Executive Officer.  Company shall pay Consultant the amounts due pursuant to properly submitted reports within 30 days after the report is received by Company. 
		
	d.
	In addition, subject to Consultant’s compliance with both Paragraph 4 below and Paragraphs 3 and 4 of Consultant’s 2017 Employment Agreement with Company (“Employment Agreement”), and Consultant’s satisfactory performance of consulting services during the term of this Agreement as determined in the sole discretion of the Chief Executive Officer, the Company shall pay Consultant one lump sum payment of up to $150,000.00 to be paid at the end of the term of this Agreement.

		
	4.
	Proprietary Information and Non-Solicitation.  Consultant recognizes and acknowledges that the performance of the consulting services under this Agreement will or may result in the disclosure by Company to Consultant of certain trade secrets and confidential information, including supply information, sales information, customer lists, customer information, and customer margins and pricing, all of which are special and unique assets and trade secrets of the Company and its business.  For the purpose of this Agreement, all information which is disclosed by Company to Consultant shall be referred to as “Confidential Information” and is hereby acknowledged to be owned exclusively by the Company.  Consultant agrees that:

		
	a.
	During the term of this Agreement and continuing indefinitely thereafter, Consultant will not disclose or use any Confidential Information except as necessary for the purpose of providing the Consulting Services hereunder.

		
	b.
	During the term of this Agreement, Consultant shall not, for Consultant’s own behalf or on behalf of any other person, entity, association, or corporation, solicit, contact, retain, do business with, or consult with, for the purpose or with the effect of competing or interfering with or harming any part of Company’s business concerning the manufacture and sale of drilling fluid systems, and related products and services for the energy industry, or in any other manner attempt directly or indirectly to influence, induce, or encourage any customer, vendor or business partner of Company to abandon, reduce or materially change its business relationship with Company. 

		
	c.
	During the term of this Agreement, Consultant shall not, directly or through others, in any of the states of Texas, Louisiana (including the following parishes: Bossier, Caddo, Claiborne, Desoto, Bienville, Jackson, Lincoln, Red River, and Webster) New Mexico, Colorado, Wyoming, Oklahoma, South Dakota, North Dakota, or locations West of these states in which Company may conduct business, or in Canada, own, manage, operate, control, or participate in the ownership, management, operation, or control of, or be employed by, or receive compensation or benefits from, any business that is engaged in the manufacture and/or sale of drilling fluid systems or related products and services in the energy industry and/or that competes (in terms of actual or planned production, marketing, or selling) with any part of Company’s business of manufacturing and sale of drilling fluid systems or related products and services in the energy industry.  Consultant understands that the foregoing restrictions may limit Consultant’s ability to engage in a business similar to Company’s business in specific areas of the world for the non-competition period, but acknowledges that Consultant will receive sufficient monetary and other consideration from Company hereunder to justify such restriction.  Consultant acknowledges and agrees that the agreements and covenants contained in this Paragraph, are reasonable and necessary to protect Confidential Information and Company Relationships and that the agreements and covenants contained in this Paragraph do not impose an undue hardship, burden, or penalty on Consultant.  Should any court or 

2

EXHIBIT 10.2

tribunal declare the foregoing covenants or agreements to be unreasonable or void for any reason, the duration and/or geographic scope of the covenant not to compete shall be modified to such duration and geographic scope as to not be unreasonable, arbitrary or against public policy, and to be the maximum restrictions allowed under law.

		
	d.
	During the term of this Agreement and for one year thereafter, Consultant will not directly or indirectly, for Consultant or on behalf of any other person or entity, induce or attempt to induce any of Company’s employees to do anything contrary to the best interest of Company.

		
	5.
	Consultant agrees that this Agreement may be assigned or transferred to, and shall be binding upon and shall inure to the benefit of, any successor of Company and any such successor of Company shall be deemed substituted for all purposes for Company.  

		
	6.
	All payments herein shall be subject to any required withholding of federal, state and local taxes pursuant to any applicable law or regulation.

		
	7.
	Consultant acknowledges and agrees that Company shall be entitled to enforce the provisions of the promises included in Paragraphs 1 and 4 by seeking specific performance and injunctive relief as remedies for any breach or threatened breach of any of the promises made in either Paragraph. Such remedies shall not be deemed the exclusive remedies for a breach or threatened breach of Consultant’s promises in Paragraph 1 and 4 but shall be in addition to all remedies available at law or in equity to Company, including, without limitation, the recovery of damages from Consultant and Consultant’s agents involved in such breach or threatened breach.

		
	8.
	This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.

		
	9.
	This Agreement constitutes the entire agreement of Consultant and Company with respect to the subject matter hereof.  No supplement, modification, or waiver of them shall be binding unless executed in writing by the party to be bound thereby.  No waiver of any provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.  Any failure to insist on strict compliance with any of the terms and conditions of this Agreement shall not be deemed a waiver of any other terms or conditions.  

[Signature page to follow]

3

EXHIBIT 10.2

	
			
	 
	 
	NEWPARK RESOURCES, INC.

	 
	 
	By: /s/ Paul L. Howes

	 
	 
	Name:  Paul L. Howes

	 
	 
	Title: President and CEO

	 
	 
	Date:  July 2, 2019

	/s/ Bruce C. Smith
	 
	 

	Bruce C. Smith
	 
	 

	Date:  July 2, 2019
	 
	 

	 
	 
	 

	 
	 
	 

[SIGNATURE PAGE TO CONSULTING AGREEMENT WITH BRUCE C. SMITH]

4Exhibit

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	EMPLOYMENT CONTRACT

	

Between

Mr. David Paterson, a UK citizen born in [*]  on the [*] and residing at [*].

(hereinafter, the "Executive")

And

Newpark Drilling Fluids S.p.A., with registered offices in Rome (RM), Italy at Via Salaria 1313/C, VAT code 02163311000.

(hereinafter, the “Company” and together with any of its subsidiaries and affiliates, including its parent company, “Group Company”)

- the Executive and the Company jointly referred to as the "Parties"

	1.
	COMMENCEMENT OF EMPLOYMENT AND TERM

	1.1
	This employment agreement is entered into on July 2, 2019 for a fixed-term duration of twelve months, effective from July 15, 2019 (“Effective Date”).

	1.2
	This Agreement and the Executive’s employment by the Company under this Agreement may be terminated by mutual consent at any time before the expiry of the term set forth under Section 1.1 above, confirming that in such a case neither Party shall be entitled to any indemnity.

	1.3
	Extensions and renewals of this employment agreement shall be governed by Italian law and by the  National Collective Bargaining Agreement for Industrial Managers ("CCNL Dirigenti Industria"), as negotiated by Confindustria (hereinafter, referred to as the “NCBA”).

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	1.4
	The Executive has disclosed to the Company any and all agreements relating to his prior employment and he represents and warrants that there is no constraint which could hinder or affect his eligibility to be employed by the Company or which may limit the carrying out of his duties hereunder.  Therefore, the Company acknowledges that no agreement prevents or will prevent the Executive from performing the duties under this agreement and the Executive confirms and warrants the foregoing. Accordingly, the validity and enforceability of this agreement is conditional upon the Executive not being subject to any non-compete or similar type of covenant, whose breach would be caused by the entering into of this agreement.

	2.
	JOB TITLE, DUTIES AND POSITION

	2.1
	The Executive will be classified as a Dirigente (i.e. executive) for the purposes of Italian Law, and the provisions set forth under the NCBA will apply to this employment contract limited in time.

	2.2
	The Executive's job title will be "Division President, Fluids Systems "

	2.3
	The Executive's main duties as "Division President, Fluids Systems" will be:

	 
	•    to undertake all duties and responsibilities consistent with the role of " Division President, Fluids Systems" of the Company, subject to any directions by the Board and within the powers the Executive may be entrusted by a resolution passed by the Board (if any) and by the provisions of this Agreement and the Company’s Articles of Associations (by-laws);
•    to undertake the duties and exercise the powers which the Board shall assign to the Executive or shall vest in him and to conform to and comply with such directions and regulations which the Board may from time to time confer or impose upon the Executive, and comply with directions given by the Chairman of the Board or such other person as may be designated by the Board; carry out his duties and exercise his powers jointly with any other individual designated by the Board to act jointly with him and the Board may at any time require the Executive to cease performing or exercising such duties or any other duties and powers; 
•        to comply with Company policies: in performing duties and exercising powers under this employment agreement, the Executive must adhere to management practices and procedures adopted by the Company from time to time;

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	 
	•      to devote time and attention: the Executive must devote the whole of time and attention and skill during normal business hours, and at other times as is reasonably necessary, to the duties of his office. By entering into this agreement, the Executive acknowledges that his hours of work required by this clause are reasonable;
•       to perform duties: the Executive must perform his duties and exercise his powers faithfully and diligently, in accordance with the provisions and the principles provided for by Italian Law and Article 2396 of the Italian Civil Code; and
•  to promote Company’s interests: promote the interests of the company and each Related Body Corporate of the Company and of any Group Company.

	2.5
	In his capacity as "Division President, Fluids Systems.", the Executive will be:

	 
	•       responsible for ensuring that key roles in the Fluids Systems Division (hereinafter, the "Division") have succession plans in place; identify and develop key talent within organization; commit to learning culture, fostering continuous improvement and 
continuous career development for Executives. The Executive must motivate workforce through continuous performance feedback, coaching and face time opportunities. In this capacity, the Executive must support and coordinate his activity with the Division of any Group Company; 
•     required to demonstrate leadership in all aspects of the role and be a steward of Newpark culture including consistent demonstration of Newpark Group’s core values stated below:

	 
	(a) Safety - Protecting each other like family while sustaining the environment in which we work;

	 
	(b) Integrity - Acting honestly, ethically, and responsibly in all aspects of our business; 
(c) Respect - Dealing fairly and openly with employees, customers, suppliers and Community; 
(d) Excellence - Delivering value through performance, innovation and service quality; and
(e) Accountability - Using good judgment and taking responsibility for our actions.

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	 
	•      responsible for safety performance of the Division. 
This will include, by way of example: training of personnel; implementation; and monitoring of all Health & Safety and Environmental policies and procedures; adherence to reporting protocols and continuous drive toward improvement of workplace safety and safe working behaviors; 
•       accountable at a Company and Group Company level for developing and implementing the Division’s strategic long-range plan, annual operating plan, and associated execution, with a focus on driving continual improvement in long term return on net capital employed. To the extent it drives improvement in long-term return on net capital employed, the Executive must drive actions that expand current products and services, increase market share and penetration, drive geographic expansion and diversify portfolio breadth, identify, execute and integrate M&A opportunities;

	 
	•        responsible for perpetuating a culture of integrity within the Division, at a Company and Group Company level, to ensure financial reporting accuracy and compliance with all international, federal, state and local laws, ordinances, regulations and statutory requirements, minimizing the liability to the Company;
•    responsible for developing and managing organizational effectiveness by routinely analyzing Key Performance Indicators ("KPI") and holding team accountable for results; ensuring the right people, structures, rewards, resources, and decision-making processes are in place; creating protocols to drive efficiency of manufacturing and field operating practices; actively engaging in business development discussions around markets, pricing strategies and new product development; and structuring team dynamics to leverage synergy including role clarity, flow of information and communication frequency;

	 
	•    responsible at a Company and Group Company level for building and nurturing relationships internally (across regions, operating divisions, and with corporate functions) as well as externally with customers, investors and the communities in which the Newpark Group conduct business. Partner across Newpark to seek creative commercial opportunities which leverage full portfolio. The Executive must long term relationships within our client base through customer visits, industry representation and problem resolution; and
•       responsible for maintaining an awareness of business related trends, advances and improvement and determine the economic impact of any financial, technical, or political activity that could affect the Company and the Group Companies.

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	2.6
	At any time, the Board shall be entitled to amend, integrate and/or reduce the powers the Executive will be entrusted with, and shall be entitled to assign the Executive other duties and tasks, provided that such duties and tasks are comparable and reasonable in view of Executive's qualification and previous work/ responsibilities and consistent with his skills and status.

	2.7
	The Executive's job position implies that he may be appointed to corporate offices (e.g. director, managing director, chairman of the board of directors, representative of a branch) in the Company and or other Group Companies. The Executive hereby acknowledges that the compensation provided for under Clause 5.1 below has been negotiated also in order to compensate any services rendered by the Executive in the above corporate offices, including service on any board, and therefore that the Executive shall not be entitled to any further or specific compensation therefor.

	3.
	PLACE AND TIME OF WORK

	3.1
	The Executive's normal place of work will be at the Company's office in Rome, Italy at Via Salaria 1313/C.

	3.2
	The Company has the right to assign the Executive specific tasks that might require a temporary transfer or business trip elsewhere, in Italy or abroad (either within or outside the European territory).   In any event, due to the nature of Executive's duties, he shall be required to travel extensively as a part of his ordinary performance.
Also, the Executive may be required to work on a temporary basis at any other of the Company's or Group Company's premises throughout the world or at any other place designated by the Company, and it is a condition of this employment agreement that the Executive comply with any such requirement.

	3.3
	Transfer expenses shall be reimbursed pursuant to the applicable Collective Contract, and within the limits and adopting the procedure which shall be communicated to you in due course.

	3.4
	The Company reserves the right to move the Executive to any other location depending on Company's organizational requirements, with no prejudice for any mandatory rights the Executive may have under the law and the applicable NCBA.

	3.5
	The Executive's working hours shall be such as may be necessary for the proper discharge of his duties and even if they will tend to be correlated with those  applicable to other employees of the same business field (i.e. at the moment, normally 40 hours distributed over 5 days per week) he may need to work hours in addition to those of the above mentioned reference working time.

	3.6
	As a consequence of Executive's position and professional responsibilities, the Executive will not be entitled to specific remuneration for work performed exceeding said ordinary working hours, in addition to the fixed salary under clause 5.1 below.

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	4.
	OTHER ACTIVITIES

	4.1
	During the term of this employment agreement, the Executive shall devote substantially all of his working time, attention and energies to the business of the Company and the Group Companies. The Executive may be involved in charitable and professional activities, trade and industry associations and the like provided that such activities do not interfere with the requirements of employment with the Company.

	4.2
	During the term of this employment agreement, the Executive shall not, directly or indirectly, without the prior written consent of the Board:
•   render any services to any other Person or entity or acquire any interests of any type in any other entity, that might be deemed in competition with the Company or any Group Company or in conflict with his position;
•   directly or indirectly carry on any business which is similar to or competitive with the business of the Company or any Group Company (the "Restrained Business"), alone or in partnership or joint venture, with anyone else;
•      directly or indirectly be concerned with or interested in a Restrained Business in any capacity, including, by way of example, as trustee, principal, agent, shareholder or unitholder;
•     be engaged or interested in any public or private work or duties which in the reasonable opinion of the Board may hinder or otherwise interfere with the performance of your duties under this contract; or
•      accept payment or other benefit from any person as an inducement or a reward for doing something or for not doing something in connection with a business transacted by or on behalf of the Company, and/or a Group Company, and/or an entity in any way related with the Company.

However, that the foregoing shall not be deemed to prohibit Executive from acquiring, solely as an investment, any securities of a partnership, trust, limited liability company, corporation or other entity, so long as (A) he remains a passive investor in such entity, (B) he does not become part of any control group thereof, and (C)  such entity is not, directly or indirectly, in competition with the Company or any Group Company.

	5.
	FIXED SALARY

	5.1
	The Executive will be paid in Euros and receive a monthly gross salary equivalent to USD 36,250.00, whose break‐down, pursuant to and inclusive of all relevant provisions of law and the applicable NCBA, will be detailed in the first pay slip.   

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	5.2
	The portion of the Executive's wage that exceeds the minimum salary as per the applicable NCBA and any wage increase which the Company may grant the Executive at any time in the future, the total being the so called “superminimo assorbibile”, is to be considered as an advance on future increases of the minimum salary, as well as of any other amount whatsoever, which may be agreed upon through collective Agreements and, therefore, any such increase of the minimum salary and any such other amount whatsoever, may be offset, at Company's sole discretion, against the portion of the Executive's wage that possibly exceeds the minimum salary.

	6.
	VARIABLE SALARY

	6.1
	In addition to the gross salary under clause 5.1 above, Executive shall be eligible for participation in the 2010 Annual Cash Incentive Plan (“ACIP”) of Newpark Resources, Inc., the Company’s ultimate parent company (“NRI”) or any similar plan that replaces the ACIP, subject to any amendments made at the discretion of the Board of Directors of NRI (the “NRI Board”) as provided herein.  Performance measures and goals will be set by the Compensation Committee of the NRI Board.  Executive’s target Award Level (as that term is defined in the ACIP) under the ACIP is equal to seventy percent (70%) percent of Executive’s base salary annualized for calendar year 2019.  Payout under the ACIP for a particular year will be made in cash by March 15 of the next year, e.g. payout for 2019 will occur prior to March 15, 2020, except to the extent of any payments associated with achievement beyond the “over-achievement” level, which are deferred, as provided for in the ACIP.  Actual awards, in accordance with the NRI Board approved plan and any amendments, are at the discretion of the Compensation Committee of the NRI Board, provided NRI represents and warrants to Executive that the terms of the ACIP will not be amended, modified, changed, or interpreted or applied to make them less generous than they were on the Effective Date, without prior written notice. 

	6.3
	As an incentive to accepting employment with the Company and entering into this Agreement, Executive will be awarded upon the Effective Date with the following grants: a restricted stock unit award representing 100,000 shares of common stock of NRI, par value of $.01 per share, which shall vest and be released to Executive, subject to satisfactions of other conditions precedent set forth in the applicable award letter, over a four (4) year period as follows-fifty  percent (50%) on the second anniversary of the Effective Date and fifty percent (50%) on the fourth anniversary of the Effective Date. 

	7.
	BENEFITS 

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	7.1
	Throughout Executive’s employment under this agreement, the Executive shall be entitled to participate in any and all employee benefits plans or programs of the Company to the extent that he is otherwise eligible to participate under the terms of those plans, including participation in any welfare benefit programs provided by the NCBA. The Company shall not be obligated to institute, maintain, or refrain from changing, amending, or discontinuing any benefit plan (if any), or perquisite, so long as such changes are similarly applicable to other executives of the Company, placed at a level similar to that of the Executive. 

	7.2
	The Company will also pay to the Executive up to USD 9,500 per month to cover the Executive’s local housing expenses as well as up to USD 50,000 per year for schooling expense reimbursement, up to USD 75,000 per year for tax equalization, up to USD 20,000 per year for personal travel expenses and up to USD 25,000 per year for professional tax advice.

	8.
	EXPENSES AND COMPANY CAR

	8.1
	The Company undertakes to reimburse the Executive in full for all reasonable and necessary business expenses effectively incurred by him in carrying out his duties hereunder; the reimbursement shall take place in accordance with the Company’s relevant policies and after receipt of Executive's statement of expenses, duly documented in accordance with the tax provisions of Italian law on deductible expenses.

	8.2
	The Company also undertakes to put at Executive's disposal for the period of his employment, and as long as it is necessary for him to perform the obligations arising from it, a car that the Executive shall be able to use also for private purposes and that the Company shall have the discretion to choose. 
The Executive shall comply with the recommendations of the car maker, regarding regular maintenance and periodical checks of the car. The Executive shall reimburse to the Company the running costs of personal use of the car.

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	8.4
	In case of periods of time during which the Executive is not temporarily performing his duties for any reason (including, but not limited to, sick leave, paid or unpaid voluntary leave, annual vacation and any other type of leave), the Company shall be entitled, upon request, to obtain immediate restitution of any item and/or document that the Company gave  the Executive. This Clause shall apply also with regard to those items belonging to the Company and that the Executive have been authorized to use for his own private purposes.
In such a case however, the Company shall stop charging the Executive the compensation relative to the private use of the relevant item (in case for such use the Executive has to pay a compensation to the Company) or will pay the Executive a fair monetary amount in lieu of the value of his private use of the item he had to return (in case for such the Executive did not have to pay a compensation to the Company).   
Said fair amount shall not exceed an amount calculated in accordance with the provisions of the following Clause 8.5 and the relevant payment shall end when the Company again puts at the Executive’s disposal the item he had to return or a different item for a similar use.   This Clause shall not limit the right of the Company to obtain restitution of any item and/or document that the Company has given the Executive, under any circumstances in which the Company is entitled to obtain such restitution in accordance with the law or the applicable NCBA (including, but not limited to, in case the Executive no longer need said item/s in order to perform the obligations arising from this employment agreement).

	8.5
	When, under the law or under this employment contract, it is necessary to determine the value of any benefits and/or compensation in kind that the Company may grant the Executive during this employment relationship, the Company shall calculate such value in accordance with the applicable legal criteria from time to time in force, concerning calculation of Executive's income for tax purposes.

	9.
	CONFIDENTIALITY

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	9.1
	Executive acknowledges that in connection with his role with the Company and in providing services in support of the Company, Executive will receive, have access to and have the opportunity to develop certain confidential or proprietary information and knowledge concerning the Company Parties and each of the respective businesses, methods and operations. Both during the term of this employment agreement and thereafter, the Executive shall not, without Company's prior written consent, communicate to any third party or otherwise disclose, or use to his own benefit, or for any purpose other than what necessary or appropriate to the effective and efficient discharge of his duties under this employment agreement, any confidential information concerning Company's business or affairs and/or the business or affairs of any Group Company; Confidential Information shall include, but shall not be limited to:
•   all types of information even that not concerning the business organization or production methods, related to the Company, business operations and/or our suppliers and/or the existing or potential customers of the Company;
•   information concerning Group Companies, the related business operations and/or related suppliers and/or the existing or potential customers;
•     marketing plans, cost analyses and revenue analyses;
•     all types of information acquired from the Company's or any Group Companies' existing or potential customers;
•   information obtained by the Executive from any source, while negotiating this agreement, while performing it or after the termination of this agreement but still in connection with the employment relationship,
Exception is made only for information which is already available to the general public or which the Executive is obliged to disclose pursuant to an order issued by a public authority.
As a consequence of the duty of confidentiality provided by this Clause, during the term of this agreement, the Executive also undertakes to store with proper diligence and care whatsoever paper and/or electronic document related to the business of the Company or of any Group Company and containing the confidential information mentioned above. 

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	9.2
	The Executive acknowledges and stipulates that the Confidential Information constitutes a valuable, special, and unique asset used by the Company Parties in their businesses to obtain a competitive advantage over their competitors.  Executive further acknowledges that protection of such Confidential Information against unauthorized disclosure and use is of critical importance to the Company Parties in maintaining their competitive position and economic investment, as well as work for their respective employees.
As a consequence, the Executive acknowledges and agrees that any breach of this clause 9 will directly cause damages to the Company, which shall be entitled to (a) apply for a cease and desist order; and (ii) obtain an injunction and/or compensation for damages; and (c) exercise any and all other remedies available by law.

	9.3
	The Executive agrees not to disclose any of the terms or provisions of this employment agreement to any other person except as (a) reasonably required to be disclosed to a Person with a legitimate reason to obtain such information for Executive’s personal financial, tax or estate planning, (b) required to be disclosed pursuant to applicable law, including securities laws, (c) authorized in written to do so by the Company in the performance of or relating to Executive’s regular employment duties to the Company.

	10.
	POST-TERMINATION NON-COMPETITION / NON-SOLICITATION OBLIGATIONS

	10.1
	Without prejudging the Executive's loyalty obligations under article 2105 of the Italian Civil Code, which prohibit him from carrying out competing activities during employment, in the event of termination, for any reason whatsoever (except in connection with a transfer of employment to NRI or any other Group Company), of the employment with the Company, the Executive undertakes not to perform, engage in, plan or prepare any activity, directly or indirectly, as proprietor, partner, shareholder, director, executive, employee, agent, consultant, collaborator, or in any other capacity or manner, in any activity in competition with the Company.

	10.2
	More specifically, the scope of the competition activities restricted by this Covenant consists of the  products and services: (a) the Company sells, provides or plans to sell or provide at any time during his employment, or (b) that Executive had involvement with or received or had access to Confidential Information about in the course of his employment with the Company.  The foregoing is expressly understood to include, without limitation, the business of manufacturing, selling and/or providing products or services of the same type offered and/or sold by the Company any time during Executive’s employment.  

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	10.3
	This covenant not to compete will be enforceable within the Italy, North America, Gulf of Mexico territories, for a period of 12 months following termination.  The Executive will also be restricted, within the same territorial scope above, from recruiting, directly or indirectly, employees or collaborators of the Company or any Group Company or induce them to terminate their employment or collaboration relationship, regardless of the fact that this action be aimed or not at recruiting such employees or collaborators. The post termination non-solicitation covenant will be enforceable for a period of 12 months following termination.

	10.4
	As consideration for the Executive's agreement to comply with the above post-termination non-competition and non-solicitation covenant, the Company will pay Executive in the event Company terminates Executive without cause an amount equal to forty percent (40%) of his monthly gross salary set forth in Clause 5.1 above, for each month the covenant is in effect.  For the avoidance of doubt, in the event Executive resigns from or is terminated by Company and then becomes an employee of NRI or any other Group Company, this Clause 10.4 shall not apply and Executive will not be eligible to receive or otherwise owed any payment set forth in this Clause 10.4.

	10.5
	Such amounts will be paid, after termination of the Executive's employment relationship, in equal separate deferred installments payable every three months and are conditional upon the Executive being continuously and fully compliant with his obligations under this post termination non compete and non solicitation covenant. Such payments will be made by way of a bank transfer without interest and after applicable tax withholdings.

	10.6
	The Executive acknowledges and agrees that any breach of this post-termination non-compete and non-solicitation covenant could immediately cause irreparable damages to the Company and that the Company will, under those circumstances, be entitled to file a petition in Court in order to obtain a Court's order for specific performance, as well as adequate injunctive relief ("provvedimento cautelare") or any other adequate judicial measure, to immediately stop such breach.

	10.7
	Without prejudice to what set forth under clause 10.6 above, the Executive acknowledges and agrees that for any breach of even one of the obligations undertaken by him through this Clause 10, he shall pay to the Company, by way of liquidated damages, an amount equal to 100% of his last gross fixed annual salary as resulting at termination date.  Any benefit or variable compensation in addition to the fixed compensation will not be taken into account. In any event the Company may also seek further damages.

	11.
	MISCELLANEOUS

	11.1
	The notice on the processing of Executive's personal data is given to him together with this contract (Annex A).

	11.2
	In addition to this contract, the Company guidelines and policies from time to time in force shall apply.

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	11.3
	Any matter not provided for in this contract shall be governed by the applicable provisions of law and of the National Collective Bargaining Agreement for executives of the Industrial sector, negotiated by Confindustria, from time to time in force.

	11.4
	“Group Company”, for the purposes of this agreement, shall mean any companies that, directly or indirectly, under the provisions of article 2359 of the Civil Code, control the Company, companies controlled by the Company or by the same persons who, directly or indirectly, control the Company.  

	11.5
	The Parties reciprocally acknowledge that the terms and conditions of this Agreement have been subject to negotiation between themselves and therefore that the provisions of articles 1341 and 1342 of the Italian Civil Code do not apply.

	11.6
	This agreement replaces all prior agreements, understandings and/or contracts between the Employee and the Company.

	11.7
	This agreement is governed by and shall be construed in accordance with the laws of Italy. The Parties irrevocably submit to the exclusive jurisdiction of the Rome Court to settle any disputes which may arise in connection with it.

	11.8
	Either Party’s failure to enforce any provision of this agreement shall not in any way be  construed as a waiver of any such provision, or prevent that Party thereafter from enforcing each and every other provision of this agreement.

	11.9
	Because the Executive's services are unique and because he has access to confidential information, the parties hereto agree that money damages would be an inadequate remedy for any breach of this agreement. Therefore, in the event of a breach or threatened breach of this agreement, the Company and its affiliates may, in addition to other rights and remedies existing in their favour apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

	
			
	
	 
	

	NEWPARK DRILLING FLUIDS S.p.A. - Joint stock company with sole shareholder
Via Salaria 1313/C - 00138 Rome, Italy
Tel. +39 06 8856111 - Fax +39 06 8889363 
email: ndfspa@newpark.com
	ISO 9001:2015
ISO 14001:2015
BS OHSAS 18001:2007
ISO IEC 27001:2013
ISO TS 29001:2010

	 
	 
	EXHIBIT 10.3

	
		
	Kindly return copy of this employment agreement, together with all Annexes, duly signed for acceptance on each page, no later than July 2, 2019, at the end of which day, this offer shall expire.

	The Woodlands, Texas

	July 2, 2019

	/s/ Bruce C. Smith

	... ... ... ... ... ... ... ... ... ... ...

	Mr. Bruce Campbell Smith

	Newpark Drilling Fluids S.p.A.

	/s/ David Paterson

	... ... ... ... ... ... ... ... ... ...

	Mr. David Paterson

Share Capital € 3.683.500,00 I.V. - T.C. 00378350888 - VAT IT 02163311000 - REGISTERED ADDRESS: VIA SALARIA 1313/C - 00138 ROMA - C.C.I.A.A. Roma 477153 TRIB. ROMA N° 3563/83
Company subject to the direction and coordination of Newpark Drilling Fluids LLC - Houston, Texas

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