Document:

exv4w7

 

Exhibit 4.7

SECOND SUPPLEMENTAL INDENTURE

     THIS SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) is dated as of March 26,
2007, and is by and among TRW Automotive Inc., a Delaware corporation (the “Issuer”), the direct
and indirect subsidiaries of the Issuer listed on the signature pages hereof (collectively, the
“Subsidiary Guarantors”) and The Bank of New York, as trustee (the “Trustee”).

RECITALS

     WHEREAS, the Issuer and the Trustee previously entered into that Dollar Senior Notes Indenture
dated as of February 18, 2003 (as amended and supplemented and in effect, the “Indenture”),
providing for the issuance of the Issuer’s 93/8% Senior Notes due 2013 (the
“Notes”);

     WHEREAS, the Subsidiary Guarantors have previously entered into that First Supplemental
Indenture dated as of February 28, 2003, providing for the guarantees of the Notes;

     WHEREAS, there are now outstanding under the Indenture Notes in an aggregate principal amount
of $825,377,000;

     WHEREAS, the Issuer and each Subsidiary Guarantor propose to amend the Indenture (the
“Proposed Amendments”), as set forth in Article I of this Supplemental Indenture;

     WHEREAS, Section 9.02 of the Indenture provides that the Issuer, the Subsidiary Guarantors and
the Trustee may, with the consent of the Holders (as defined in the Indenture) of not less than a
majority in the amount of the Notes then outstanding (including consents obtained in connection
with a tender offer or exchange for the Notes), amend or supplement the Indenture, subject to
certain limitations set forth in the Indenture;

     WHEREAS, the Issuer has solicited the consents of the Holders of the Notes pursuant to the
Offer to Purchase and Consent Solicitation Statement dated March 12, 2007, as amended, supplemented
or modified (the “Statement”) to the Proposed Amendments to the Indenture upon the terms and
conditions set forth therein;

     WHEREAS, the Issuer has received and delivered or caused to be delivered to the satisfaction
of the Trustee the consents of the Holders of at least a majority in aggregate principal amount of
the outstanding Notes to the Proposed Amendments pursuant to the Statement;

     WHEREAS, the Issuer is in receipt of such consents of the Holders of at least a majority in
aggregate principal amount of the outstanding Notes to the Proposed Amendments;

     WHEREAS, the Issuer and each Subsidiary Guarantor has been authorized by resolution of its
respective board of directors to enter into this Supplemental Indenture;

     WHEREAS, all other acts and proceedings required by law, by the Indenture and by the articles
of incorporation and by-laws or similar organizational documents of the Issuer and the Subsidiary
Guarantors to make this Supplemental Indenture a valid and binding agreement for the purposes
expressed herein, in accordance with its terms, have been duly done and performed;

     WHEREAS, pursuant to Section 9.02 and Section 9.06 of the Indenture, the Trustee is authorized
to execute this Supplemental Indenture; and

     WHEREAS, the Proposed Amendments contained herein will become operative (the “Operative Date”)
upon the acceptance for payment of all Notes that are validly tendered and not withdrawn on or
prior to the Consent Date contemplated by the Statement.

 

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     NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained
herein, and for other good and valuable consideration the receipt of which is hereby acknowledged,
and for the equal and proportionate benefit of the Holders of the Notes, the Issuer, the Subsidiary
Guarantors and the Trustee hereby agree as follows:

ARTICLE I

AMENDMENTS TO THE INDENTURE

     Section 1.01. Amendments to the Indenture. Effective as of the Operative Date, this
Supplemental Indenture amends the Indenture as provided for herein. The Issuer and the Subsidiary
Guarantors acknowledge and agree that no amendment or waiver of the provisions described in Section
9.02 of the Indenture requiring the consent of each affected Holder has been made hereby.

     Section 1.02. Amendments to Section 4.02. Section 4.02 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.02. [Intentionally Omitted.]

     Section 1.03. Amendments to Section 4.03. Section 4.03 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.03. [Intentionally Omitted.]

     Section 1.04. Amendments to Section 4.04. Section 4.04 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.04. [Intentionally Omitted.]

     Section 1.05. Amendments to Section 4.05. Section 4.05 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.05. [Intentionally Omitted.]

     Section 1.06. Amendments to Section 4.06. Section 4.06 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.06. [Intentionally Omitted.]

     Section 1.07. Amendments to Section 4.07. Section 4.07 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.07. [Intentionally Omitted.]

     Section 1.08. Amendments to Section 4.08. Section 4.08 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.08. [Intentionally Omitted.]

     Section 1.09. Amendments to Section 4.10. Section 4.10 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.10. [Intentionally Omitted.]

 

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     Section 1.10. Amendments to Section 4.11. Section 4.11 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.11. [Intentionally Omitted.]

     Section 1.11. Amendments to Section 4.12. Section 4.12 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.12. [Intentionally Omitted.]

     Section 1.12. Amendments to Section 4.13. Section 4.13 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 4.13. [Intentionally Omitted.]

     Section 1.13. Amendments to Section 5.01. Section 5.01 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     Section 5.01. [Intentionally Omitted.]

     Section 1.14. Amendments to Section 6.01. Section 6.01 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     SECTION 6.01. Events of Default. An “Event of Default” occurs if:

(a) the Company defaults in any payment of interest on any Security when the same
becomes due and payable or in any payment of additional interest, and such default
continues for a period of 30 days;

(b) the Company defaults in the payment of principal or premium, if any, of any
Security when due at its Stated Maturity, upon optional redemption, upon required
repurchase, upon declaration or otherwise;

(c) [Intentionally Omitted];

(d) [Intentionally Omitted];

(e) [Intentionally Omitted];

(f) [Intentionally Omitted];

(g) the Company or any Significant Subsidiary pursuant to or within the meaning of
any Bankruptcy Law:

(i) commences a voluntary case;

(ii) consents to the entry of an order for relief against it in an
involuntary case;

(iii) consents to the appointment of a Custodian of it or for any substantial
part of its property; or

(iv) makes a general assignment for the benefit of its creditors; or takes
any comparable action under any foreign laws relating to insolvency;

 

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(h) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

(i) is for relief against the Company or any Significant Subsidiary in an
involuntary case;

(ii) appoints a Custodian of the Company or any Significant Subsidiary or for
any substantial part of its property; or

(iii) orders the winding up or liquidation of the Company or any Significant
Subsidiary;

or any similar relief is granted under any foreign laws and the order or decree
remains unstayed and in effect for 60 days;

(i) [Intentionally Omitted]; or

(j) [Intentionally Omitted.]

     Section 1.15. Amendments to Article 8. Article 8 of the Indenture is hereby amended and
restated in its entirety to read as follows:

Section 8.01. Defeasance. The Company at any time may terminate all of its
obligations under the Securities and this Indenture (“legal defeasance”) by depositing with
the Trustee funds in an amount sufficient or Government Securities, the principal of and
interest on which will be sufficient, or a combination thereof sufficient, to pay the
principal of and interest on the outstanding Securities when due at maturity or upon
redemption, including interest thereon to maturity or such redemption date (other than
Securities replaced or paid pursuant to Section 2.08), and all other sums payable hereunder
by the Company. In the event that the Company terminates all of its obligations under the
Securities and this Indenture by exercising legal defeasance, the obligations of each
Guarantor under its guarantee shall be terminated simultaneously with the termination of
such obligations. If the Company exercises legal defeasance, payment of the Securities may
not be accelerated because of an Event of Default.

Section 8.02. Conditions to Defeasance. The Company may exercise legal defeasance only if
(i) the Company deposits in trust with the Trustee money in an amount sufficient or
Government Securities, the principal of and the interest on which will be sufficient, or a
combination thereof sufficient, to pay the principal of and interest on the Securities when
due at maturity or redemption, as the case may be, including interest thereon to maturity
or such redemption date, and all other sums payable hereunder by the Company and (ii) the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, subject
to customary assumptions and exceptions, each stating that all conditions precedent to the
defeasance and discharge of the Securities have been complied with.

Section 8.03. [Intentionally Omitted].

Section 8.04. [Intentionally Omitted].

Section 8.05. [Intentionally Omitted].

Section 8.06. [Intentionally Omitted].

     Section 1.16. General Conforming Amendment. The Proposed Amendments will eliminate any
references in each Indenture to any deleted Section or Subsections and any defined terms in the
Indentures that are used solely in those deleted Sections or Subsections.

 

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ARTICLE II

MISCELLANEOUS PROVISIONS

     Section 2.01 Instruments To Be Read Together. This Supplemental Indenture is executed as and
shall constitute an indenture supplemental to and in implementation of the Indenture, and said
Indenture and this Supplemental Indenture shall henceforth be read together.

     Section 2.02 Confirmation. The Indenture as amended and supplemented by this Supplemental
Indenture is in all respects confirmed and preserved.

     Section 2.03 Terms Defined. Capitalized terms used in this Supplemental Indenture and not
otherwise defined herein shall have the meanings assigned to such terms in the Indenture.

     Section 2.04 Trust Indenture Act Controls. If any provision of this Supplemental Indenture
limits, qualifies or conflicts with another provision that is required to be included in this
Supplemental Indenture or the Indenture by the Trust Indenture Act of 1939, as amended, as in force
at the date that this Supplemental Indenture is executed, the provisions required by said Act shall
control.

     Section 2.05 Headings. The headings of the Articles and Sections of this Supplemental
Indenture have been inserted for convenience of reference only, and are not to be considered a part
hereof and shall in no way modify or restrict any of the terms and provisions hereof.

     Section 2.06 Governing Law. The internal law of the State of New York shall govern this
Supplemental Indenture.

     Section 2.07 Counterparts. This Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     Section 2.08 Effectiveness; Termination. The provisions of this Supplemental Indenture will
take effect immediately upon its execution by the Trustee in accordance with the provisions of
Sections 9.02 and 9.06 of the Indenture; provided, that the amendments to the Indenture set forth
in Article I of this Supplemental Indenture shall become operative as specified in Section 1.01
hereof. The Issuer may terminate this Supplemental Indenture upon written notice to the Trustee if
the Issuer terminates its offer to purchase the Notes upon the terms and subject to the provisions
set forth in the Statement.

     Section 2.09 Responsibility of Trustee. The recitals contained herein shall be taken as the
statements of the Issuer, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture.

     Section 2.10 Severability. In case any provision in this Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected.

 

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     IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed, all as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BANK OF NEW YORK, as Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lena Aminova 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	Lena Aminova 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	Assistant Treasurer 	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE INC., as Issuer
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President and Chief Financial
Officer	 	 
	 
	 	 	 	 	 	 
	 	 	KELSEY-HAYES COMPANY, as Guarantor
	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	KELSEY-HAYES HOLDINGS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	KH HOLDINGS, INC. as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	LAKE CENTER INDUSTRIES TRANSPORTATION,

INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Secretary	 	 

 

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	 	 	LUCAS AUTOMOTIVE INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	LUCASVARITY AUTOMOTIVE HOLDING

COMPANY, as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTO HOLDINGS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE (LV) CORP., as

Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE HOLDING COMPANY, as

Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE J.V. LLC, as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE SAFETY SYSTEMS ARKANSAS

INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

 

8

	 	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE U.S. LLC, as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW EAST INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW ODYSSEY INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW OCCUPANT RESTRAINTS SOUTH AFRICA

INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW OVERSEAS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW POWDER METAL INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW SAFETY SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

 

9

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TRW TECHNAR INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRW VEHICLE SAFETY SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	VARITY EXECUTIVE PAYROLL, INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	WORLDWIDE DISTRIBUTION CENTERS, INC., as

Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joseph S. Cantie	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph S. Cantie	 	 
	 

	 	Title:
	 	Assistant Secretary and Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRW AUTOMOTIVE FINANCE (LUXEMBOURG)

S.A.R.L., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Graham Plumley	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Graham Plumley	 	 
	 

	 	Title:
	 	Directorexv4w4

 

Exhibit 4.4

NEWPARK RESOURCES, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

     This Non-Qualified Stock Option Agreement (the “Agreement”) is made and entered into as of
                    ,
___ (hereinafter referred to as the “Date of Grant”), by and between NEWPARK
RESOURCES, INC., a Delaware corporation (the “Company”), and                      (“Optionee”), with
reference to the following facts:

     A. The Company has duly adopted the 2006 Equity Incentive Plan (hereinafter referred to as the
“2006 Plan”) which authorizes the Compensation Committee of the Board of Directors of the Company
(the “Committee”) to grant equity compensation, including but not limited to Non-Qualified Stock
Options and Incentive Stock Options, within the meaning of Section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”), and which is intended to encourage ownership of stock of the
Company by officers and other key management employees and to provide additional incentive for them
to promote the success of the Company.

     B. The Committee has determined that Optionee is entitled to participate in the 2006 Plan, and
has taken appropriate action to authorize the granting of a Non-Qualified Stock Option to Optionee
for the number of shares, at the price per share and on the terms set forth in this Agreement.

     C. Optionee desires to participate in the 2006 Plan and to receive a Non-Qualified Stock
Option on the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, the parties agree as follows:

     1. Grant of Option.

          The Company hereby grants to Optionee the right and option (hereinafter referred to as the
“Option”) to purchase all or any part of an aggregate of
                     shares (the “Option Shares”) of
common stock, $.01 par value, of the Company (the “Common Stock”) on the terms and conditions set
forth in this Agreement.

     2. Purchase Price.

          The purchase price (the “Exercise Price”) of each Option Share shall be $___.___.

     3. Option Period.

          3.1 The Option shall commence on the Date of Grant and shall expire, and all rights to
purchase the Option Shares shall terminate, at the close of business on the day immediately
preceding the seventh anniversary of the Date of Grant, unless terminated earlier as provided in
this Agreement. The Option shall not be exercisable until all legal requirements in connection
with the 2006 Plan have been fully complied with. Subject to the foregoing, the Option shall be
exercisable during its term as to one-third of the Option Shares on the first anniversary of the
Date of Grant; one-third of the Option Shares on the second anniversary of the Date of Grant; and
one-third of the Options on the third anniversary of the Date of Grant; provided,
however, if Optionee shall not in any period purchase all of the Option Shares which

 

 

Optionee is entitled to purchase in such period, Optionee may purchase all or any part of such
Option Shares at any time after the end of such period and prior to the expiration of the Option.

          3.2 Notwithstanding the foregoing, if Optionee is subject to the reporting requirements of
Section 16(a) of the Exchange Act, the Option shall not be exercisable until at least six months
and one day from the Date of Grant.

     4. Exercise of Option.

          4.1 The Option may be exercised in whole or in part (but not as to fractional shares or fewer
than 100 shares in any single exercise) by the delivery of an executed Notice and Agreement of
Exercise in the form attached hereto as Exhibit A, accompanied by payment of the Exercise Price and
any amounts required to be withheld for tax purposes under Section 14 of the 2006 Plan.

          4.2 The Exercise Price of Option Shares purchased shall be paid in full (a) in cash or by
check acceptable to the Committee or, if and to the extent permitted by the Committee, (b) by the
delivery of Shares which have been outstanding for at least six months or such other minimum period
as may be required by applicable accounting rules to avoid a charge to the Company’s earnings for
financial reporting purposes (unless the Committee approves a shorter period) and which have a Fair
Market Value on the date the Option is exercised equal to the Exercise Price, (c) to the extent
permitted by Applicable Laws, by a Cashless Exercise, or (d) by any combination of the foregoing
permissible forms of payment.

     5. Employment of Optionee.

          5.1 Except as otherwise provided in paragraph 6 of this Agreement, Optionee may not exercise
the Option unless, at the time of exercise, Optionee is an employee of the Company or a parent or a
Subsidiary thereof and has been in the employ of the Company or a parent or a Subsidiary thereof
continuously since the Date of Grant, subject to any determination made by the Committee with
respect to authorized leaves of absence.

          5.2 Nothing contained herein shall be construed to impose upon the Company or upon any parent
or Subsidiary thereof any obligation to employ Optionee for any period or, except as specifically
provided otherwise herein, to supersede or in any way alter, increase or diminish the respective
rights and obligations of the Company or any parent or Subsidiary thereof and Optionee under any
employment contract now or hereafter existing between them.

     6. Termination of Employment.

          6.1 If the employment of Optionee with the Company or a Subsidiary shall terminate because of
Disability or death of Optionee, (a) the Option, to the extent exercisable on the date of
termination of employment, shall remain in full force and effect and may be exercised pursuant to
the provisions hereof at any time until the earlier of the end of the fixed term hereof and the
expiration of 12 months following termination of the employment of Optionee, and (b) the Option, to
the extent not then presently exercisable, shall terminate as of the date of such termination of
employment and shall not be exercisable thereafter.

2

 

          6.2
[Except as otherwise provided in any employment agreement,] If the employment of Optionee with the Company or a Subsidiary is terminated by the
Company or Subsidiary for Cause, the Option, whether vested or not, shall terminate concurrently
with the first discovery by the Company of any reason for the termination of Optionee’s employment
for Cause and shall not be exercisable thereafter. If Optionee’s employment with the Company or a
Subsidiary is suspended pending an investigation of whether reason for termination for Cause
existed, all of Optionee’s rights under the Option, including but not limited to the right to
exercise the Option, shall likewise be suspended during such period of investigation.

          6.3 If the employment of Optionee with the Company or a Subsidiary shall terminate for any
reason other than the reasons set forth in paragraph 6.1 or paragraph 6.2 hereof, unless otherwise
provided by the Committee, (a) the Option, to the extent then presently exercisable, shall remain
exercisable only for a period of three months after the date of such termination of employment
(except that the three month period shall be extended to 12 months if Optionee shall die during
such three month period) and may be exercised during such period pursuant to the provisions hereof,
including expiration at the end of the fixed term hereof, and (b) the Option, to the extent not
then presently exercisable, shall terminate as of the date of such termination of employment and
shall not be exercisable thereafter.

     7. Securities Laws Requirements.

          7.1 The Option shall not be exercisable unless and until any applicable registration or
qualification requirements of federal and state securities laws, and all other requirements of law
or any regulatory bodies having jurisdiction over such exercise or issuance and delivery, have been
fully complied with. The Company will use reasonable efforts to maintain the effectiveness of a
registration statement under the Securities Act for the issuance of the Option and the Option
Shares but there may be times when no such registration statement will be currently effective.
Exercise of the Option may be temporarily suspended without liability to the Company during times
when no such registration statement is currently effective, or during times when, in the reasonable
opinion of the Committee, such suspension is necessary to preclude violation of any requirements of
applicable law or regulatory bodies having jurisdiction over the Company. If the Option would
expire for any reason except the end of its term during such a suspension, then if exercise of the
Option is duly tendered before its expiration, the Option shall be exercisable and exercised
(unless the attempted exercise is withdrawn) as of the first day after the end of such suspension.
The Company shall have no obligation to file any registration statement covering resales of the
Option Shares.

          7.2 Upon each exercise of the Option, Optionee shall represent, warrant and agree, by the
Notice and Agreement of Exercise delivered to the Company, that (a) no Option Shares will be sold
or otherwise distributed in violation of the Securities Act or any other applicable federal or
state securities laws, (b) if Optionee is subject to the reporting requirements under Section 16(a)
of the Exchange Act, Optionee will furnish to the Company a copy of each Form 4 or Form 5 filed by
Optionee and will timely file all reports required under federal securities laws, and (c) Optionee
will report all sales of Option Shares to the Company in writing on the form prescribed from time
to time by the Company. All Option Share certificates may be imprinted with legends reflecting
federal and state securities law restrictions and conditions and the Company may comply therewith
and issue “stop transfer” instructions to its transfer agents and registrars without liability.

3

 

     8. Non-transferability of Option.

          The Option shall be transferable only to (i) Optionee’s Immediate Family Members, (ii) a trust
or trusts for the exclusive benefit of Optionee’s Immediate Family Members, (iii) a corporation,
partnership, limited partnership or limited liability company in which no persons or entities other
than Optionee and Optionee’s Immediate Family Members have beneficial interests, or (iv) such other
persons or entities as the Committee may specifically approve, on a case-by-case basis, and (b)
shall be exercisable by any such transferees. As used herein, “Immediate Family Members” means the
spouse, children (including step-children and adopted children) and grandchildren of the Optionee.
Unless the Committee shall determine otherwise in its sole discretion, the Option or portion hereof
so transferred may not be further transferred by the transferees thereof except by will or the laws
of descent and distribution or pursuant to a “qualified domestic relations order”, as defined in
the Internal Revenue Code of 1986, as amended (the “Code”). Notwithstanding any transfer permitted
in accordance with the foregoing provisions, a transferred Option shall continue to be subject to
the same terms and conditions as were applicable immediately before such transfer (other than
permitting the Option to be exercised by a permitted transferee), including but not limited to the
provisions of this Agreement governing (x) the exercise of the Option, (y) the termination of the
Option at the expiration of its term or following termination of the employment of Optionee and (z)
the payment of withholding taxes. Except as specifically provided above, the Option shall be
transferable only by will or the laws of descent and distribution or pursuant to a qualified
domestic relations order, and shall be exercisable during Optionee’s lifetime only by Optionee or
by Optionee’s legal representative. If Optionee is subject to the reporting requirements of
Section 16(a) of the Exchange Act at the time of a proposed transfer, the Option shall be
transferable only if such transferability or transfer would not cause the Option to fail to qualify
for the exemption provided for in Rule 16b-3 under the Exchange Act, as determined by the Committee
in its sole and absolute discretion. Notwithstanding the foregoing, the Option shall not be
assignable by operation of law and shall not be subject to attachment, execution, garnishment,
sequestration, the law of bankruptcy or any other legal or equitable process. Any attempted
assignment, transfer, pledge, hypothecation or other disposition contrary to the provisions of this
Agreement, and the levy of any execution, attachment or similar process thereupon, shall be null
and void and without effect.

     9. Changes in Capitalization.

          9.1 The number and class of shares subject to the Option, the Exercise Price (but not the
total price), and the minimum number of shares as to which the Option may be exercised at any one
time, shall be proportionately adjusted in the event of any increase or decrease in the number of
the issued shares of Common Stock which results from a split-up or consolidation of shares, payment
of a stock dividend or stock dividends exceeding a total of two and one-half percent (2.5%) for
which the record dates occur in any one fiscal year, a recapitalization (other than the conversion
of convertible securities according to their terms), a combination of shares or other like capital
adjustment, so that upon exercise of the Option, Optionee shall receive the number and class of
shares Optionee would have received had Optionee been the holder of the number of shares of Common
Stock for which the Option is being exercised upon the date of such change or increase or decrease
in the number of issued shares of the Company.

4

 

          9.2 Upon a reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation, or in which the
Company survives as a wholly-owned subsidiary of another corporation, or upon a sale of all or
substantially all of the property of the Company to another corporation, or any dividend or
distribution to stockholders of more than 10% of the Company’s assets, adequate adjustment or other
provisions shall be made by the Company or other party to such transaction so that there shall
remain and/or be substituted for the Option Shares provided for herein, the shares, securities or
assets which would have been issuable or payable in respect of or in exchange for the Option Shares
then remaining under the Option, as if Optionee had been the owner of such shares as of the
applicable date. Any securities so substituted shall be subject to similar successive adjustments.

     10. Relationship to Other Employee Benefit Plans.

          The Option shall not be deemed to be salary or other compensation to Optionee for purposes of
any pension, thrift, profit sharing, stock purchase or other employee benefit plan now maintained
or hereafter adopted by the Company.

     11. Subsidiary.

          The term “Subsidiary” as used herein, shall mean any “subsidiary” within the meaning of Rule
405 under the Securities Act. Unless the context indicates otherwise, references to the Company
shall include all subsidiaries of the Company and any parent it may have in the future.

     12. Privileges of Ownership.

          Optionee shall not have any of the rights of a stockholder with respect to the shares covered
by the Option except to the extent that share certificates have actually been issued and registered
in Optionee’s name on the books of the Company or its registrar upon the due exercise of the
Option. The Company shall be allowed a reasonable time following notice of exercise in which to
accomplish the issuance and registration.

     13. Reference to 2006 Plan and Internal Revenue Code.

          This Agreement and the Option are subject to all of the terms and conditions of the 2006 Plan,
which are hereby incorporated by reference. In the event of any conflict between this Agreement
and the 2006 Plan, the provisions of the 2006 Plan shall prevail.

     14. Notices.

          Any notice to be given under the terms of this Agreement shall be addressed to the Company in
care of its Corporate Secretary at 2700 Research Forest Drive, Suite 100, The Woodlands, Texas
77381, and any notice to be given to Optionee shall be addressed to Optionee at the address
appearing on the employment records of the Company, or at such other address or addresses as either
party may hereafter designate in writing to the other. Any such notice shall be deemed duly given
when enclosed in a properly sealed envelope, addressed as herein required and deposited, postage
prepaid, in a post office or branch post office regularly maintained by the United States
Government.

5

 

     15. Withholding Taxes.

          The Company shall have the right at the time of exercise of the Option to make adequate
provision for any federal, state, local or foreign taxes which it believes are or may be required
by law to be withheld with respect to such exercise (“Tax Liability”), to ensure the payment
(through withholding from Optionee’s salary or the Option Shares or otherwise as the Company shall
deem in its sole and conclusive discretion to be in its best interests) of any such Tax Liability.

     16. Number and Gender.

          Terms used herein in any number or gender include other numbers or genders, as the context may
require.

     17. Counterparts.

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

     18. Governing Law.

          This Agreement and performance under it, shall be construed in accordance with and under the
laws of the State of Delaware. Should a court or other body of competent jurisdiction determine
that any term or provision of this Agreement is excessive in scope, such term or provision shall be
adjusted rather than voided and interpreted so as to be enforceable to the fullest extent possible,
and all other terms and provisions of this Agreement shall be deemed valid and enforceable to the
fullest extent possible.

     IN WITNESS WHEREOF, the Company and Optionee have executed this Agreement as of the Date of
Grant.

	 	 	 	 	 	 	 	 	 
	“OPTIONEE”	 	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	NEWPARK RESOURCES, INC.	 	 
	 

(Signature)

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 

(Print Name)

	 	 
	 	 	 	 

Paul L. Howes, President
	 	 

6

 

EXHIBIT A

NEWPARK RESOURCES, INC.

NOTICE AND AGREEMENT OF EXERCISE

OF NON-QUALIFIED STOCK OPTION

                            ,            

     I hereby exercise my Newpark Resources, Inc. Incentive Stock Option dated                     , ___, as to
___ shares of Newpark Resources, Inc. common stock, $.01 par value (the “Option Shares”).

     Enclosed are the documents and payment specified in Paragraph 4 of my Option Agreement. I
understand that no Option Shares shall be issued and delivered unless and until any applicable
registration requirements of the Securities Act of 1933, as amended, any listing requirements of
any securities exchange on which stock of the same class is then listed, and any other requirements
of law or any regulatory bodies having jurisdiction over such issuance and delivery, shall have
been fully complied with. I hereby represent, warrant and agree, to and with Newpark Resources,
Inc. (the “Company”), that:

     a. The Option Shares I am purchasing are being acquired for my account, and no other person
(except, if I am married, my spouse) will own any interest therein.

     b. I will not sell or dispose of my Option Shares in violation of the Securities Act of 1933
or any other applicable Federal or state securities laws. I will obtain the Company’s advice prior
to any disposition of my Option Shares.

     c. I agree that the Company may, without liability, place legend conditions upon my Option
Shares and issue “stop transfer” restrictions requiring compliance with applicable securities laws
and the terms of my Option.

     d. If and so long as I am subject to reporting requirements under Section 16(a) of the
Securities Exchange Act of 1934, I will furnish to the Company a copy of each Form 4 or Form 5
filed by me and will timely file all reports required under the Federal securities laws.

     e. I will report to the Company all sales of Option Shares on the form prescribed from time to
time by the Company.

     The number of Option Shares specified above are to be issued in the following registration
(husband and wife will be shown to be joint tenants unless I state that the Option Shares will be
held as community property or as tenants in common):

	 	 	 	 	 	 	 
	 
	 

(Print your name)

	 	 
	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

(Option — Print name of spouse if you
wish joint registration)

	 	 
	 	 

	 	 
	 

	 	 
	 	  

Address
	 	 

7

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