Document:

exv10w1

 

EXHIBIT 10.1

SIXTH AMENDMENT TO

AMENDED AND RESTATED

CREDIT AGREEMENT

     This Sixth Amendment dated as of September 30, 2003 (this “Sixth
Amendment”) to that certain Amended and Restated Credit Agreement, dated as of
January 31, 2002, as amended by First Amendment to Amended and Restated Credit
Agreement dated as of April 30, 2002, by Second Amendment to Amended and
Restated Credit Agreement dated as of July 31, 2002, by Third Amendment to
Amended and Restated Credit Agreement dated as of October 31, 2002, by Amended
and Restated Fourth Amendment to Amended and Restated Credit Agreement dated as
of December 16, 2002, and by Fifth Amendment to Amended and Restated Credit
Agreement dated as of May 1, 2003 (collectively, the “Credit Agreement”), is
among Newpark Resources, Inc., a Delaware corporation, the Lenders, Bank One,
NA, a national banking association with its main office in Chicago, Illinois,
individually as a Lender, as Administrative Agent, and as LC Issuer, and the
undersigned Guarantors.

     WHEREAS, the parties wish to make certain modifications to the Credit
Agreement by executing this Sixth Amendment on the terms and conditions set
forth herein;

     NOW, THEREFORE, the parties hereto do hereby amend the Credit Agreement,
all on the terms and conditions hereof and do hereby agree as follows:

     1.     Unless otherwise defined herein, all defined terms used in this Sixth
Amendment shall have the same meaning ascribed to such terms in the Credit
Agreement.

     2.     The Credit Agreement is hereby amended by adding the following defined
terms to Article I in proper alphabetical order:

		
	 	“Permitted LC Issuer” means Bank One, N.A., in its
individual capacity, as issuer of Permitted Letters of
Credit.

		
	 	“Permitted Letters of Credit” means letters of credit in the
maximum aggregate stated amount of $10,000,000.00 from time to time
outstanding, issued by Bank One, N.A., in its individual capacity,
having expiry dates later than would be permitted for a Facility LC
but bearing fees and charges substantially identical to the
then-current fees and charges applicable to Facility LCs.

     3.     Section 6.11 of the Credit Agreement is hereby amended by adding
thereto a subsection (viii) reading as follows:

		
	 	(viii) Obligations to reimburse the Permitted LC Issuer in
connection with Permitted Letters of Credit.

     4.     Section 6.15 of the Credit Agreement is amended by adding thereto a
subsection (x) reading as follows:

 

 

		
	 	(x) Liens consisting of cash or Cash Equivalent Investments in
favor of Permitted LC Issuer, not in excess of 105% of the stated
amount of all Permitted Letters of Credit from time to time
outstanding.

     5.     Section 6.22 of the Credit Agreement is hereby amended and restated as
follows:

		
	 	6.22. Letters of Credit. The Borrower will not, nor will it
permit any Subsidiary to, apply for or become liable upon or in
respect of any Letter of Credit other than Facility LCs and
Permitted Letters of Credit. Obligations with respect of Permitted
Letters of Credit secured by Liens as permitted by Section 6.15 (x)
shall be excluded from the definition of Indebtedness for all
purposes.

     6.     Sections 6.24.1, 6.24.2, and 6.24.3 of the Credit Agreement are hereby
amended and restated to read in their entirety as follows:

		
	 	6.24.1. Fixed Charge Coverage Ratio. The Borrower will not permit
the ratio, determined as of the end of each of its fiscal quarters,
of (i) Consolidated EBITDA for the fiscal quarter then ended, minus
(ii) $1,500,000.00 for maintenance capital expenditures for the
fiscal quarter then ended, minus (iii) the average of stock
repurchases and/or retirements permitted under Section 6.10 for
such fiscal quarter and the immediately preceding three fiscal
quarters (exclusive of redemptions under Section 6.10 (iii)) to (x)
Consolidated Interest Expense for the fiscal quarter then ended,
plus (y) scheduled principal payments on Consolidated Indebtedness
for the fiscal quarter then ended, plus (z) cash dividends on
Existing Preferred Stock paid during the fiscal quarter then ended,
all calculated for the Borrower and its Subsidiaries on a
consolidated basis, to be less than the following:

	 	 	 
	Quarters ending:	 	Ratio:
	December 31, 2001	 	
3.00 to 1.00
	March 31, 2002	 	
2.25 to 1.00
	June 30, 2002	 	
2.50 to 1.00
	September 30, 2002	 	
1.75 to 1.00
	December 31, 2002	 	
2.00 to 1.00
	March 31, 2003	 	
2.00 to 1.00
	June 30, 2003	 	
2.50 to 1.00
	September 30, 2003	 	
1.75 to 1.00
	December 31, 2003	 	
1.75 to 1.00
	All quarters ending thereafter	 	
3.00 to 1.00

		
	 	6.24.2. Leverage Ratio. The Borrower will not permit the ratio,
determined as of the end of each of its fiscal quarters, other than
the fiscal quarters ending September 30, 2003 and December 31,
2003, of (i) Consolidated Funded Indebtedness to (ii) Consolidated
EBITDA at the end of each of its fiscal quarters,

-2-

 

		
	 	annualized, all calculated for the Borrower and its Subsidiaries on
a consolidated basis, to be greater than the following:

	 	 	 
	Quarters ending:	 	Ratio:
	December 31, 2001	 	
3.00 to 1.00
	March 31, 2002	 	
4.00 to 1.00
	June 30, 2002	 	
5.50 to 1.00
	September 30, 2002	 	
5.25 to 1.00
	December 31, 2002	 	
4.75 to 1.00
	March 31, 2003	 	
4.50 to 1.00
	June 30, 2003	 	
4.00 to 1.00
	September 30, 2003	 	
Not applicable
	December 31, 2003	 	
Not applicable
	All quarters ending thereafter	 	
3.00 to 1.00

		
	 	6.24.3. Senior Indebtedness Leverage Ratio. The Borrower will
not permit the ratio, determined as of the end of each of its
fiscal quarters, of (i) Consolidated Funded Indebtedness less
Subordinated Indebtedness to (ii) Consolidated EBITDA at the end of
each of its fiscal quarters, annualized, all calculated for the
Borrower and its Subsidiaries on a consolidated basis, to be
greater than the following:

	 	 	 
	Quarters ending:	 	Ratio:
	December 31, 2001	 	
1.50 to 1.00
	March 31, 2002	 	
1.50 to 1.00
	June 30, 2002	 	
2.25 to 1.00
	September 30, 2002	 	
2.25 to 1.00
	December 31, 2002	 	
2.00 to 1.00
	March 31, 2003	 	
1.75 to 1.00
	June 30, 2003	 	
1.50 to 1.00
	September 30, 2003	 	
Not Applicable
	December 31, 2003	 	
Not Applicable
	All quarters ending thereafter	 	
1.50 to 1.00

     7.     The Credit Agreement is hereby amended by adding thereto a Section
6.24.5 reading as follows:

		
	 	6.24.5 Minimum EBITDA. The Borrower
will maintain Minimum EBITDA, determined
as of the end of its fiscal quarters, as
follows:

	 	 	 	 	 
	Quarters Ending:	 	 	Minimum EBITDA:	 
	September 30, 2003	 	 	
$10,000,000.00	 
	December 31, 2003	 	 	
$10,000,000.00	 

-3-

 

     8.     The form of the Compliance Certificate attached to the Credit Agreement
as Exhibit “B” is hereby amended and restated entirely by the form of
Compliance Certificate attached hereto as Exhibit “A”.

     9.     Notwithstanding the Aggregate Tranche A Commitment and any other
provision of the Credit Agreement, the Aggregate Outstanding Tranche A Credit
Exposure shall not exceed $64,500,000.00 during any period in which the
Borrower is not in compliance with the provisions of Sections 6.24.1, 6.24.2,
and 6.24.3 as they existed prior to the effectiveness of this Sixth Amendment.

     10.     Upon issuance of Permitted Letters of Credit the Administrative Agent
is authorized and instructed to deliver to Permitted LC Issuer subordination
agreements affecting all cash or Cash Equivalent Investments in which Borrower
has granted a security interest to Permitted LC Issuer to secure obligations
defined in Section 6.11 (viii), up to the maximum amount permitted by Section
6.15(x) from time to time.

     11.     Except to the extent its provisions are specifically amended, modified
or superseded by this Sixth Amendment, the representations, warranties and
affirmative and negative covenants of the Borrower contained in the Credit
Agreement are incorporated herein by reference for all purposes as if copied
herein in full. The Borrower hereby restates and reaffirms each and every term
and provision of the Credit Agreement, as amended, including, without
limitation, all representations, warranties and affirmative and negative
covenants. Except to the extent its provisions are specifically amended,
modified or superseded by this Sixth Amendment, the Credit Agreement, as
amended, and all terms and provisions thereof shall remain in full force and
effect, and the same in all respects are confirmed and approved by the parties
hereto.

     12.     Each Guarantor hereby consents to the execution of this Sixth
Amendment and reaffirms its Guaranty of all of the obligations of the Borrower.
Each such Guarantor further acknowledges and consents to any increase in the
obligations owed by such Guarantor as the result of this Sixth Amendment.
Borrower and Guarantor acknowledge and agree that this Sixth Amendment shall
not be considered a novation or a new contract. Borrower and Guarantor
acknowledge that all existing rights, titles, powers, Liens, security interests
and estates in favor of the Lenders constitute valid and existing obligations
and Liens and security interests as against the Collateral in favor of the
Administrative Agent for the benefit of the Lenders. Borrower and each
Guarantor confirm and agree that (a) neither the execution of this Sixth
Amendment nor the consummation of the transactions described herein shall in
any way effect, impair or limit the covenants, liabilities, obligations and
duties of the Borrower and each Guarantor under the Loan Documents and (b) the
obligations evidenced and secured by the Loan Documents continue in full force
and effect. Each Guarantor hereby further confirms that it unconditionally
guarantees to the extent set forth in the Guaranty the due and punctual payment
and performance of any and all amounts and obligations owed the Borrower under
the Credit Agreement or the other Loan Documents.

     13.     This Sixth Amendment may be executed in any number of counterparts and
all of such counterparts taken together shaft be deemed to constitute one and
the same instrument.

-4-

 

     14.     THIS SIXTH AMENDMENT AND THE LOAN DOCUMENTS (OTHER THAN THOSE
CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF LOUISIANA, BUT GIVING EFFECT TO FEDERAL
LAWS APPLICABLE TO NATIONAL BANKS.

     IN
WITNESS WHEREOF, the parties have caused this Sixth Amendment to
Amended and Restated Credit Agreement to be duly executed as of the date first
above written.

-5-

 

	 	 	 	 	 
	 	 	
BORROWER:
	 	 	 	 	 
	 	 	
NEWPARK RESOURCES, INC.
	 	 	 	 	 
	 	 	
By:
	 	/s/ John R. Dardenne, Sr.
	 	 	 	 	

	 	 	 	 	John R. Dardenne, Sr.
	 	 	
Title: Treasurer
	 	 	 	 	 
	 	 	
GUARANTORS:
	 	 	 	 	 
	 	 	
EXCALIBAR MINERALS INC.,

MALLARD & MALLARD OF LA., INC.,

NEWPARK HOLDINGS, INC.,

SUPREME CONTRACTORS, L.L.C.,

NEWPARK DRILLING FLUIDS, LLC,
NEWPARK
ENVIRONMENTAL SERVICES, L.L.C.,

NEWPARK ENVIRONMENTAL
MANAGEMENT COMPANY, L.L.C.,
 NEWPARK TEXAS, L.L.C.,

EXCALIBAR MINERALS OF LA., L.L.C., and

SOLOCO, L.L.C.
	 	 	 	 	 
	 	 	
By:
	 	/s/ John R. Dardenne, Sr.
	 	 	 	 	

	 	 	 	 	John R. Dardenne, Sr., Treasurer
	 	 	 	 	 
	 	 	
BATSON MILL, L.P.,

NEWPARK ENVIRONMENTAL SERVICES OF TEXAS,L.P.,

NEWPARK SHIPHOLDING TEXAS, L.P.,

NID, L.P.,

SOLOCO TEXAS, L.P.,

NES PERMIAN BASIN, L.P. and

NEWPARK ENVIRONMENTAL SERVICES
MISSISSIPPI,
L.P.
	 	 	 	 	 
	 	 	
By:
	 	Newpark Holdings, Inc., the general partner of each

	 	 	 	 
	 	By:	 	
/s/ John R. Dardenne, Sr.
	 	 	 	

	 	 	 	
John R. Dardenne, Sr., Treasurer

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-6-

 

	 	 	 	 	 	 	 
	 	 	 	
BANK ONE, NA,
	 	 	 	 	(Main Office, Chicago)

Individually as a Lender and as

Administrative Agent and as LC Issuer
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ J. Charles Freel, Jr.
	 	 	 	 	 	 	

	 	 	 	 	Title: Director, Capital Markets

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-7-

 

	 	 	 	 	 
	 	CREDIT LYONNAIS NEW YORK BRANCH
	 	 	 	 	 
	 	 	
By:
	 	/s/ Olivier Audemard
	 	 	 	 	

	 	 	
Title: Senior Vice President

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-8-

 

	 	 	 	 
	 	ROYAL BANK OF CANADA
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title: Manager

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-9-

 

	 	 	 	 	 
	 	HIBERNIA NATIONAL BANK
	 	 	 	 	 
	 	 	
By:
	 	/s/ Cheryl H. Denenea
	 	 	 	 	

	 	 	
Title: Vice President

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-10-

 

	 	 	 	 	 
	 	COMERICA BANK
	 	 	 	 	 
	 	 	
By:
	 	/s/ William S. Rogers
	 	 	 	 	

	 	 	
Title: Vice President

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-11-

 

	 	 	 	 	 
	 	WHITNEY NATIONAL BANK
	 	 	 	 	 
	 	 	
By:
	 	/s/ Michael Jesse Shannon
	 	 	 	 	

	 	 	
Title: Senior Vice President

Newpark Resources, Inc.

Sixth Amendment to Amended and Restated Credit Agreement

-12-<PAGE>
                                                                  EXHIBIT 10.N.1

                             AMENDMENT NO. 4 TO THE
                               EL PASO CORPORATION

                     KEY EXECUTIVE SEVERANCE PROTECTION PLAN

         Pursuant to Section 8.1 of the El Paso Corporation Key Executive
Severance Protection Plan, Amended and Restated effective as of August 1, 1998,
as amended (the "Plan"), Appendix II of the Plan is hereby amended, as attached,
to remove certain Executive Employees who are no longer active employees
eligible to participate in the Plan and add an Executive Employee whose
participation in the Plan has been approved by the Board through the
Compensation Committee effective as of September 2, 2003.

         IN WITNESS WHEREOF, the Company has caused this amendment to be duly
executed on the 2nd day of September, 2003.

                                         EL PASO CORPORATION

                                         By:      /s/ Gary J. Konnie
                                             -----------------------------------
                                                      Gary J. Konnie
                                               Its Senior Vice President
                                                     Human Resources

Attest:

/s/ David L. Siddall
--------------------------------
Corporate Secretary

<PAGE>

                                   APPENDIX II

                               EL PASO CORPORATION
                     KEY EXECUTIVE SEVERANCE PROTECTION PLAN

         The following individuals are deemed to be participants in the Plan as
of each individual's effective date of participation ("Effective Date of
Participation").

Employee                                        Effective Date of Participation

Robert W. Baker                                 November 7, 2002
Randy L. Bartley                                November 7, 2002
Stephen C. Beasley                              November 7, 2002
James J. Cleary                                 November 7, 2002
Daniel F. Collins                               November 7, 2002
Bruce Connery                                   November 7, 2002
John T. Elzner                                  November 7, 2002
Rodney D. Erskine                               December 4, 2001
Douglas L. Foshee                               September 2, 2003
Greg G. Gruber                                  November 7, 2002
John L. Harrison                                November 7, 2002
Peggy A. Heeg                                   December 4, 2001
John J. Hopper                                  November 7, 2002
Harvey R. Klingensmith                          November 7, 2002
Gary J. Konnie                                  November 7, 2002
Charles W. Latch                                November 7, 2002
Daniel B. Martin                                November 7, 2002
Graciela E. Martinez                            November 7, 2002
Kevin J. McMichael                              November 7, 2002
D. Dwight Scott                                 October 1, 2002
David L. Siddall                                November 7, 2002
Judy A. Vandagriff                              November 7, 2002
Gene W. Waguespack                              November 7, 2002
James C. Yardley                                November 7, 2002
David E. Zerhusen                               October 1, 2002

Acknowledged and Accepted the 2nd day of September, 2003.

By:       /s/ Gary J. Konnie
    ---------------------------------
    Gary J. Konnie
    Its Senior Vice President
    Human Resources

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