Document:

exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS AGREEMENT dated May 2, 2005 is entered into by Newpark Resources, Inc. (the “Company”),
a Delaware corporation, and James D. Cole (the “Executive”) and is intended to extinguish and
supersede all prior employment agreements between the parties. The Company and Executive agree as
follows:

1. Employment as Chief Executive Officer in 2005.

     1.1 2005 Term. The Company hereby agrees to continue to employ Executive, and Executive
hereby accepts continued employment by the Company, as its Chief Executive Officer (“CEO”) on the
terms and conditions set forth in this Agreement up to December 31, 2005.

     1.2 2005 Compensation. Executive shall be entitled to his current annual base salary of
$320,000, employee benefits and continued eligibility for awards under the current year’s incentive
compensation opportunity pursuant to the Company’s 2003 Executive Incentive Compensation Plan (the
"EICP”) through December 31, 2005. The performance measures approved by the Board of Directors
under the EICP for Executive for 2005 include, as a thirty (30) percent discretionary performance
measure (as defined in the EICP), execution of a contract with Tinep SA de CV (“Tinep”) relating to
water processing by the target date of July 31, 2005 that is on terms and conditions reasonably
satisfactory to the Company’s Board of Directors.

     1.3 Prior Awards. Executive will remain as a participant in the Company’s 2003 Long Term
Incentive Plan (the “LTIP”) with respect to the Awards previously granted in January 2003, 2004,
and 2005 and will be eligible to vest under these awards to the extent applicable performance
criteria are met at the end of the respective performance periods (12/31/05; 12/31/06; and
12/31/07) or otherwise as provided in the LTIP upon a Change of Control (as therein defined) or
otherwise, subject to and in accordance with the provisions of the original award agreements,
provided that the termination of his employment other than for Cause before conclusion of a
performance period shall not affect the vesting of the awards as of the conclusion of the
performance period, notwithstanding any contrary provision of the LTIP.

     1.4 CEO Duties. Until December 31, 2005, or earlier upon the assumption of office by
successor, Executive will be responsible for continuing to perform the traditional functions of the
CEO of the Company, and any other actions that may be necessary or desirable for the operation of
the Company at the direction of, or within the guidelines set forth by, the Company’s Board of
Directors. At that time, it is agreed that Executive will relinquish the position of CEO of the
Company and all of the authority and responsibilities attendant therewith, without affecting the
compensation to which he is entitled for the year ending December 31, 2005.

     1.5 Extent of Services. Executive shall continue to devote his full business time, attention
and energies to the business of the Company during employment; provided, however, that Executive
may from time to time perform civic or charitable work that will not materially interfere with his
performance of his duties under this Agreement.

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     1.6 Announcement of Resignation. Executive agrees that on May 2, 2005 he will announce to
employees and the public, in a manner and forms approved by the Board of Directors, that he is
resigning as CEO of the Company, effective December 31, 2005.

     1.7 Board Nomination. Executive will be nominated for a position on the Board of Directors of
the Company at its Annual Meeting in 2005 and will, if elected, serve a full one year term.
Executive agrees that he will not stand for re-election to the Board of Directors in 2006 or
thereafter, unless requested to do so by the Nominating Committee of the Board of Directors.

2. Employment Commencing in 2006.

     2.1 Term. The Company hereby agrees to employ Executive, and Executive hereby accepts
employment by the Company, as full-time Chairman and Chief Executive Officer of Newpark
Environmental Water Solutions (“NEWS”) on the terms and conditions set forth in this Agreement
effective January 1, 2006 and ending on December 31, 2007, subject to Section 4 (Termination of
Employment). Such term may be extended upon the mutual agreement of Executive and the Company.

     2.2 Duties. Executive will be responsible for performing the traditional functions of the
Chief Executive Officer of NEWS, and any other actions that may be necessary or desirable for the
operation of the NEWS at the direction of, or within the guidelines set forth by, the Company’s
Chief Executive Officer.

     2.3 Extent of Services. Executive shall continue to devote his full business time, attention
and energies to the business of NEWS during employment; provided, however, that Executive may from
time to time perform civic or charitable work that will not materially interfere with his
performance of his duties under this Agreement.

     2.4 Conflicts of Interest. During the term of his employment under this Agreement, Executive
shall not, directly or indirectly, without the prior consent of a majority of the members of the
Company’s Board of Directors, 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 of its subsidiaries or affiliates or in conflict with his position as the Chairman and Chief
Executive Officer of NEWS; provided, however, that the foregoing shall not be deemed to prohibit
Executive from (a) acquiring, solely as an investment, any securities of a partnership, trust,
limited liability company, corporation or other entity (i) so long as he remains a passive investor
in such entity, (ii) so long as he does not become part of any control group thereof, and (iii) so
long as such entity is not, directly or indirectly, in competition with the Company or any of its
subsidiaries or affiliates, or (b) serving as a consultant, advisor or director of any corporation
which has a class of outstanding equity securities registered under Sections 12(b) or 12(g) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and which is not in competition
with the Company or any of its subsidiaries or affiliates.

3. Compensation and Benefits.

     3.1 Base Salary. Effective January 1, 2006 through December 31, 2007, NEWS shall pay
Executive an annual base salary of $200,000.00 (the “Base Salary”), in equal installments in

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accordance with Company payroll practices, from which usual and customary withholdings and
deductions will be made.

     3.2 Incentive Compensation. In addition to the Base Salary, Executive shall be eligible for
participation in the EICP in each of the three years ending December 31, 2006, 2007 and 2008,
whether or not Executive is employed by the Company during such period and regardless of the reason
for any end of his employment (notwithstanding any contrary provision of the EICP), and will be
entitled to receive each year an amount (the “Incentive Component”) equal to the greater of (i)
five (5) percent of the Tinep Operating Income or (ii) the amount earned under the EICP, with a
target award opportunity of fifty (50) percent of base salary for the year in question with a
maximum of one hundred (100) percent of such salary (for purposes of computing EICP for 2008, base
salary used shall be the base salary for 2007). Performance measures and goals will be set by the
Compensation Committee of the Board, and will, as regards the discretionary performance measure,
include completion of contracts with Tinep relating to heavy oil processing and air processing on
terms and conditions reasonably satisfactory to the Company’s Board of Directors. Actual awards in
accordance with the Board approved plan are at the discretion of the Compensation Committee.

     3.3 Stock Options and Share Awards. In addition, Executive shall be eligible to receive stock
options and performance restricted share awards and other executive compensation arrangements, if
any, on the same basis as are granted to the Company’s Chief Operating Officer or Chief Financial
Officer (whichever receives the greater number of such options or awards at any time), if and when
granted to Chief Operating Officer or Chief Financial Officer by the Compensation Committee in
accordance with any Board approved plans (including but not limited to the 1995 Incentive Stock
Option Plan and the 2003 Long Term Incentive Plan) (all such plans being referred to as the
"Plans”). Vesting shall be in as provided in these existing plans, and subject to any amendments;
provided, however, that termination of Executive’s employment other than for Cause before the end
of an applicable vesting period shall not affect such vesting notwithstanding any contrary
provision of a Plan.

     3.4 Benefit Plans. Throughout his employment under this Agreement, 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 Company (including, without
limitation, medical, prescription, dental, disability, employee life, group life, accidental death
and travel accident insurance programs), receive prompt reimbursement for all reasonable business
expenses incurred by him for which application for reimbursement is promptly and properly
submitted, fringe benefits and perquisites available generally to other executives of the Company
and its affiliates, including rights to indemnification, advance of litigation expenses,
exculpation and D&O insurance provided to directors and officers of the Company, and paid vacation
of a duration granted generally to other executives of the Company.

     3.5 Company Automobile. Throughout his employment under this Agreement, Company will continue
provide Executive an automobile for his use and will reimburse him for expenses incurred in
connection with that vehicle, in accordance with the policies and practices of the Company.

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4. Termination of Employment.

     4.1 Termination. Executive’s employment by the Company shall be terminated (1) automatically,
upon the death or disability (as defined below in Section 6.9(b) of Executive or (2) at the
election of Executive upon 30 days written notice to the Company by Executive for Good Reason (as
defined below), or (3) by the Company for Cause (as defined below); or (4) at the election of
Executive upon 90 days written notice to the Company to retire before December 31, 2007.

     4.2 Early Termination. If Executive’s employment is terminated (including retirement) by
Executive at any time before December 31, 2007, other than for Good Reason, Executive shall be
entitled to receive: (1) his Base Salary through the date of termination, (2) full participation
in the EICP based on the full year’s performance criteria for the year in which employment is
terminated, (3) the Non-Compete Payments as and when due on January 15, 2008 and 2009, and (4) full
vesting of all options and grants made before the date of termination.

     4.3 Termination by Executive for Good Reason or by Company without Cause. If Executive’s
employment is terminated at any time before December 31, 2007 by Executive for Good Reason or by
the Company without Cause, then Executive shall be entitled to receive: (1) in a lump sum payment
due within 15 days of the date of termination, his Base Salary through December 31, 2007, (2) the
Incentive Component, taking into account Executive’s full participation in the EICP for all periods
though December 31, 2008 (in which case the EICP’s discretionary performance measure shall be
treated as having been fully met for each period), (3) the Non-Compete Payments as and when due on
January 15, 2008 and 2009, and (4) full vesting of all options and grants made before the date of
termination, (5) receipt of such stock option award and restricted shares awards granted to the
Company’s Chief Operator Officer and Chief Financial Officer on or before December 31, 2007 as
contemplated by Section 3.3, which shall vest immediately, (6) participation in any and all
employee benefits plans or programs of the Company to the extent that he would otherwise have been
eligible to participate under the terms of those plans if his employment had not been terminated to
the maximum extent permitted by law and these plans, including but not limited to participation in
group life insurance and medical insurance programs, and (7) the right to purchase his company
automobile at net book value under Section 5.5.

     4.4 Termination for Cause. If Executive’s employment is terminated at any time before
December 31, 2007 by the Company for Cause, then Executive shall be entitled to receive only: (1)
his Base Salary through the date of termination and (2) the Non-Compete Payments (defined below) as
and when due on or before January 15, 2008 and 2009 and (3) such options and grants as shall have
fully vested before the date of termination. In any such event, Executive shall be ineligible for
and shall forfeit all rights with respect to options and grants that have not vested as of the time
of termination for Cause.

     4.5 Exclusive Remedy; Condition to Obligations. Executive’s sole remedy for the Company’s
termination of his employment in breach of this Agreement shall be the right to recover the amounts
provided in this Section 4.

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     4.6 Breach of Non-Competition Agreement. The Company’s obligations under Section 5.2 and
benefits provided for under Sections 5.3 and 5.4 of this Agreement shall cease as of the date, if
any, on which Executive knowingly and intentionally fails in any material respect to perform any
of his material obligations under either of the Non-Compete Agreement (as defined below); and, in
any such case, any amount otherwise due Executive shall be reduced in any month by the amount, if
any, of any salary or other compensation received by Executive in such month from a source other
than the Company for services rendered after the end of the Employment Term in violation of a
Non-Compete Agreement. The remedies in this Section 4.6 shall not be exclusive of any other
remedies the Company may have at law or in equity.

5. Termination of Employment and Retirement December 31, 2007.

     5.1 Scheduled Retirement. Executive hereby offers, and the Company hereby accepts,
Executive’s retirement effective December 31, 2007. Due to the unique knowledge and executive
positions held by Executive, and the Company’s need to plan for the top management and direction of
the Company and its subsidiaries, Executive’s separation is irrevocable by him. However, nothing
herein prohibits Executive from accepting an extension of employment, at terms mutually agreeable,
if offered by the Company to Executive.

     5.2 Entitlements on Death, Disability or Scheduled Retirement. If Executive’s employment is
terminated at any time by Executive’s death or disability or after December 31, 2007 by
Executive’s retirement as contemplated by Section 5.1, then Executive shall be entitled to
receive: (1) his Base Salary through the date of death, disability, or such retirement, (2) the
Incentive Component, taking into account Executive’s full participation in the EICP for all periods
though December 31, 2008 (in which case the EICP’s discretionary performance measure shall be
computed on the basis of actual Tinep Operating Income in the applicable periods), (3) the
Non-Compete Payments as and when due on January 15, 2008 and 2009, (4) full vesting of all options
and grants made before the date of his retirement as contemplated by Sections 5.5 and 5.6, (5)
participation in the insurance programs of the Company as provided in Section 5.4, and (6) the
right to purchase his company automobile at net book value under Section 5.7.

     5.3 Compensation For Non-Competition Agreements. In consideration for his agreement to
entering into the agreements set forth as Appendices “A” and “B” (the “Non-Competition Agreements”)
Executive, or in the event of his death, his spouse or designated beneficiary or estate or such
other person as may be required by law will receive two (2) payments of $320,000.00 each
(“Non-Compete Payments”), one on or before January 15, 2008 and the other on or before January 15,
2009. Executive shall be entitled to receive these payments in any event, without regard to when
or why his employment by the Company is terminated, as and to the extent provided in the
Non-Competition Agreements, except as provided in Section 4.6 of this Agreement.

     5.4 Medical and Life Insurance. Throughout the term of his employment under this Agreement
and until December 31, 2009, the Company shall continue to provide Executive with coverage under
group medical and life insurance coverage during on the same relative basis on which he is covered
as of the date of this Agreement or on a comparable basis under any successor policies and
coverages, as long so doing is not in contravention of the respective plan’s

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provisions in existence at that time, or shall pay the premium for continuation of the health
insurance coverage under COBRA.

     5.5 Stock Options. Upon termination of Executive’s employment other than for Cause,
Executive’s stock options will vest and become exercisable for the remainder of their term in
accordance with and subject to the provisions of the Plan(s) and award agreements.

     5.6 Performance-Restricted Shares. Upon termination of Executive’s employment other than for
Cause, all performance-restricted shares will continue and may vest at the end of the applicable
performance period in accordance with and subject to the plan and award agreements.

     5.7 Company Car. Upon termination of Executive’s employment other than for Cause, Executive
may purchase his Company car at then current value on the books of the Company, and title will be
transferred upon payment and proof of insurance.

6. Miscellaneous.

     6.1 Exclusive Dispute Resolution Procedure. In the event either party contends the other has
not complied with a provision of this Agreement or asserts any claims under ERISA, other than the
Non-Compete Agreements ( which are specifically excluded from this procedure), prior to seeking
arbitration as provided for below, the party claiming a violation of this Agreement, shall advise
the other party, in writing, of the specifics of the claim, including the specific provision
alleged to have been violated, as well as provide the other party with any supporting documentation
the party desires to produce at that time. The parties will thereafter meet and attempt to resolve
their differences in a period not to exceed thirty (30) days, unless the parties agree in writing
to mutually extend the time for one additional thirty (30) day period. Following such attempts to
resolve any such dispute, either party may require arbitration of the other. In order to do so,
the request must be timely made, in writing, and delivered to the other party (Executive or the
Board Chair) within thirty (30) days following the end of the resolution period (or any valid
extension thereof) referenced herein above. The parties hereto agree that any controversy or claim
arising out of or relating to this Agreement, or any dispute arising out of the interpretation or
application of this Agreement, which the parties hereto are unable to resolve as provided for
above, shall be finally resolved and settled exclusively by arbitration in New Orleans, Louisiana,
by a single arbitrator under the American Arbitration Association’s arbitration rules known as the
National Rules for the Resolution of Employment Disputes, effective June 1, 1997 and as thereafter
amended, and in accordance with the substantive laws of the State of Louisiana to the extent not
preempted by the Employee Retirement Income Security Act, which shall govern all applicable
benefits issues, in keeping with the above required procedure. If the parties cannot agree upon an
arbitrator from a panel provided for the sole purpose of selecting such an arbitrator, then each
party shall choose its own independent representative, and those independent representatives shall,
in turn, choose the single arbitrator within thirty (30) days of the date of the selection of the
first independent representative. The legal expenses of each party shall be borne by them
respectively. However, the cost and expenses of the arbitrator in any such action shall be borne
equally by the parties. The arbitrator’s decision, judgment and award shall be final, binding and
conclusive upon the parties and may be entered in the highest court, state or federal, having
jurisdiction. The arbitrator to

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which any such dispute shall be submitted in accordance with the provision of this Article
shall only have jurisdiction and authority to interpret, apply or determine compliance with the
provisions of this Agreement, but shall not have jurisdiction or authority to add to, subtract
from, or alter in any way the provisions of this Agreement.

     6.2 Headings. Section and other headings contained in this Agreement are for reference only
and shall not affect in any way the meaning or interpretation of this Agreement.

     6.3 Notices. Any notice, communication, request, reply or advice (here severally and
collectively called “Notice”) required or permitted to be given under this Agreement must be in
writing and is effectively given by deposit in the same in the United States mail, postage pre-paid
and registered or certified with return receipt requested, by national commercial courier for next
day delivery, or by delivering in person the same to the address of the person or entity to be
notified. Notice deposited in the mail in the manner herein above described shall be effective 48
hours after such deposit, Notice sent by national commercial courier for next day delivery shall be
effective on the date delivered, and Notice delivered in person shall be effective at the time of
delivery. For purposes of Notice, the address of the parties shall, until changed as hereinafter
provided, be as follows:

	 	 	 	 	 	 	 
	 	 	(a)	 	If to the Company:
	 
	 	 	 	 	Newpark Resources, Inc.
	 	 	 	 	3850 Causeway Blvd., Suite 5770
	 	 	 	 	Metairie, LA 70002-175 2
	 

	 	 	 	Attention: Chairman of the Board

or at such address as the Company may have advised Executive in writing; and

	 	 	 	 	 
	 

	 	(b)
	 	If to Executive:
	 
	 

	 	 	 	James D. Cole
	 

	 	 	 	3 Hummingbird Drive
	 

	 	 	 	Covington, LA 70433

or at such other address as Executive may have advised the Company in writing.

     6.4 Waiver. The failure by any party to enforce any of its rights under this Agreement shall
not be deemed to be a waiver of such rights, unless such waiver is an express written waiver which
has been signed by the waiving party, and in the case of the Company, expressly approved by its
Board of Directors. Waiver of any one breach shall not be deemed to be a waiver of and other
breach of the same or any other provision of this Agreement.

     6.5 Choice of Law. The validity of the agreement, the construction of its terms and the
determination of the rights and duties of the parties hereto shall be governed by and construed in
accordance with the laws of the State of Louisiana without regard to choice of law principles.

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     6.6 Invalidity of Provisions. If any provision of this Agreement is adjudicated to be
invalid, illegal or unenforceable under applicable law, the validity or enforceability of the
remaining provisions shall be unaffected. To the extent that any provision of this Agreement is
adjudicated to be invalid, illegal or unenforceable because it is overbroad, that provision shall
not be void but rather shall be limited only to the extent required by applicable law and enforced
as so limited.

     6.7 Entire Agreement; Written Modifications. This Agreement and the Non-Compete Agreements
together contain the entire agreement between the parties and supersedes all prior or
contemporaneous representations, promises, understandings and agreements between Executive and the
Company.

     6.8 Assignment by Executive. This Agreement may not be assigned by Executive without the
prior written consent of the Company.

     6.9 Definitions. In this Agreement:

     (a) “Cause” when used with reference to termination of the employment of Executive by the
Company for “Cause”, shall mean:

	 	(1)	 	Executive’s conviction of, or entrance of a plea of guilty to,
a felony or other crime involving fraud and/or moral turpitude;
	 
	 	(2)	 	dishonesty, willful misconduct or material, gross neglect of
Executive, which gross neglect causes material harm to the Company;
	 
	 	(3)	 	any willful misconduct on the part of Executive that causes
material damage to the reputation of the Company;
	 
	 	(4)	 	appropriation (or an overt act attempting appropriation) by
Executive of a material business opportunity of the Company;
	 
	 	(5)	 	theft, embezzlement or other similar misappropriation of funds
or property of the Company by Executive; or
	 
	 	(6)	 	the failure of Executive to follow the reasonable and lawful
written instructions or policy of the Company with respect to the services to
be rendered and the manner of rendering such services by Executive, including
the provisions of Section 2.4, provided Executive has been given reasonable and
specific written notice of such failure and opportunity to cure and no cure has
been effected or initiated within a reasonable time after such notice.

     (b) “Disability” means, with respect to Executive, his inability to perform his duties with
NEWS on a full-time basis for 120 consecutive days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a licensed physician selected by
the Company or its insurers and reasonably acceptable to the Executive or the Executive’s legal
representative.

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     (c) “Employment Term” means the actual term of Executive’s employment under this Agreement.

     (d) “Good Reason” means any of the following:

	 	(1)	 	The Company unreasonably interferes in a demonstrably willful
and deliberate manner with Executive’s performance of his duties;
	 
	 	(2)	 	Over Executive’s written objection, the Company changes
Executive’s principle place of work to a location more than 80 miles from the
Company’s headquarters as of the date of this Agreement; provided, however,
that if (i) the new place of work is within 80 miles of the Company’s
headquarters at the time of the change of Executive’s place of work, (ii) the
Company furnishes executive a reasonable housing allowance for housing near the
new place of work and (iii) the Company agrees to reimburse the travel expenses
of Executive in weekly and holiday commuting to New Orleans, Louisiana from the
new place of work, such a change shall not constitute Good Reason;
	 
	 	(3)	 	Over Executive’s written objection, the Company changes
materially and adversely the responsibilities, authority or status of
Executive, and Executive notifies the Company in writing of his objection to
the change, and such change is not remedied by the Company promptly after
receipt of written notice from Executive. Additionally, it is recognized and
agreed that Executive’s move from CEO of the Company to Chairman and CEO of
NEWS, and the related consequential changes, will not be considered a violation
of this Agreement; or
	 
	 	(4)	 	The substantial failure of the Company to comply with its
obligations under this Agreement or any other agreement that may be in effect
that is not remedied within a reasonable time after specific written notice
thereof by Executive to the Company.

A termination of employment by Executive for Good Reason as defined herein shall be effectuated by
giving the Company written notice (“Notice of Termination for Good Reason”) of the
termination and shall set forth in reasonable detail the specific conduct of the Company that
Executive contends constitutes Good Reason and the specific provision(s) of this Agreement on which
Executive relies. The Notice of Termination for Good Reason shall be effective on the 10th
business day following the date of the Notice of Termination for Good Reason, unless the parties
agree otherwise in writing, or unless the Company does not remedy the alleged violation promptly
after receipt of the Notice of Termination for Good Reason.

     (e) “Tinep Operating Income” means revenues of NEWS less all direct operating expenses
related to such revenues, including costs of revenues, general and administrative expenses and any
minority interest in earnings related to the technology (“Expenses”) directly incurred by
NEWS . To the extent Tinep technology is utilized or applied by the Company or any of its
subsidiaries other than NEWS, Tinep Operating Income shall also included the direct

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revenue associated with the use of the technology less Expenses. Tinep Operating Income does
not include foreign currency gains or losses, other income or expense, or any allocations of
corporate expenses, but for purposes of this agreement, shall include interest expense associated
with any capital invested by the Company or NEWS in or directly related to the technology (per the
approval of the Company’s Board of Directors), calculated at the average cost of borrowed funds for
the Company during the period considered.

     6.10 Representation by counsel. Each of the parties has been represented by counsel and has
actively participated in the drafting of this Agreement.

     EXECUTED as of the date first written above.

	 	 	 	 	 	 	 
	Witnesses:	 	NEWPARK RESOURCES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Del Lancaster

	 	By:
	 	      /s/ David P. Hunt	 	 
	 

	 	 	 	 

     David Hunt
	 	 
	/s/ Matthew W. Hardey

	 	 	 	     Board Chairman	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Witnesses:
	 	 	 	 	 	 
	/s/ Del Lancaster

	 	 	 	     /s/ James D. Cole	 	 
	 

	 	 	 	 

     James D. Cole
	 	 
	 
	 	 	 	 	 	 
	/s/ Matthew W. Hardey
 

	 	 	 	 	 	 

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APPENDIX A

ANCILLARY LOUISIANA UNFAIR COMPETITION, CONFIDENTIALITY AND

NON-COMPETITION AGREEMENT

     THIS LOUISIANA UNFAIR COMPETITION, CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (this
“Ancillary Agreement”) dated and effective as of May 2, 2005 is made by James D. Cole
(“Executive”) and Newpark Resources, Inc. (the “Company”).

RECITALS:

     WHEREAS, Executive and the Company have entered into an Agreement dated this date (the
“Employment Agreement”), to which this Agreement is ancillary and incorporated by
reference, pursuant to which, among other things, the Company agrees to make certain payments to
Executive; and

     WHEREAS, pursuant to the Employment Agreement, the Company and Executive have agreed to enter
into this Ancillary Agreement; and

     NOW, THEREFORE, in consideration of Executive’s Employment Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Executive and
the Company hereby covenant and agree as follows:

     1. Definitions. Each capitalized term not defined herein shall have the meaning assigned to
that term in the Employment Agreement.

     2. Confidentiality. Executive acknowledges that in the course of his relationship with the
Company and its related entities Newpark Drilling Fluids, Newpark Environmental Services, SOLOCO,
Newpark Canada, and Newpark Water (the “Related Entities” or referred to collectively with
Newpark Resources as the “Company”) he has in the past received, and may in the future
receive, certain trade secrets, programs, lists of customers and other confidential or proprietary
information and knowledge concerning the business of the Company and its Related Entities
(hereinafter collective referred to as “Confidential Information”) which the Company
desires to protect. Executive understands that the information is confidential and he agrees not
to reveal the Confidential Information to anyone outside the Company so long as the confidential or
secret nature of the Confidential Information shall continue, other than such disclosure as
authorized by the Company or is made to a person transacting business with the Company who has
reasonable need for such Confidential Information. Executive further agrees that he will at no
time use the Confidential Information for or on behalf of any person other than the Company for any
purpose. Executive further agrees to comply with the confidentiality and other provisions set
forth in this Agreement, the terms of which are supplemental to any statutory or fiduciary or other
obligations relating to these matters. On the termination of employment or his Employment
Agreement, Executive shall surrender to the Company all papers, documents, writings and other
property produced by him or coming into his possession by or through his relationship with the
Company or relating to the Confidential Information and Executive agrees that all such materials
will at all times remain the property of the Company.

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     3. Specific Covenants.

          (a) This Agreement. The terms of this Agreement constitute Confidential Information, which
Executive shall not disclose to anyone other than his spouse, attorney, accountant, or as may be
required by the Company or by law.

          (b) Company Property. All written materials, customer or other lists or data bases, records,
data, and other documents prepared or possessed by you during your employment with the Company are
the Company’s property. All information, ideas, concepts, improvements, discoveries, and
inventions that are conceived, made, developed, or acquired by you individually or in conjunction
with others during your employment (whether during business hours and whether on the Company’s
premises or otherwise) which relate to the Company’s business, products, or services are the
Company’s sole and exclusive property. All memoranda, notes, records, files, correspondence,
drawings, manuals, models, specifications, computer programs, maps, and all other documents, data,
or materials of any type embodying such information, ideas, concepts, recipes, inventory, prices,
improvements, discoveries, and inventions are the Company’s property. At the termination of
Executive’s employment with the Company for any reason, Executive shall return all of the Company’s
documents, data, or other Company Property to the Company. Included in the above are all such data
that Executive had access to, over, or possessed. The Company desires by this Agreement to protect
its economic investment in its current and future operations and business.

          (c) Confidential Information; Non-Disclosure. Executive acknowledges and stipulates that the
business of the Company is highly competitive, cost and price sensitive, and that he in connection
with his work and job have had access to Confidential Information relating to the Company’s
businesses and their methods and operations. For purposes of this Agreement, “Confidential
Information” means and includes the Company’s confidential and/or proprietary information
and/or trade secrets that have been developed or used and/or will be developed and that cannot be
obtained readily by third parties from outside sources. Confidential Information includes, by way
of example and without limitation, the following information regarding customers, employees,
contractors, its operations and its markets and the industry not generally known to the public;
strategies, methods, books, records, and documents; recipes, technical information concerning
products, equipment, services, and processes; procurement procedures and pricing techniques; the
names of and other information concerning customers and those being solicited to be customers,
investors, and business relations (such as contact name, service provided, pricing for that
customer, type and amount of product used, credit and financial data, and/or other information
relating to the Company’s relationship with that customer); pricing strategies and price curves;
positions, plans, and strategies for expansion or acquisitions; budgets; customer lists; research;
financial and sales data; raw materials purchasing or trading methodologies and terms; evaluations,
opinions, and interpretations of information and data; marketing and merchandising techniques;
prospective customers’ names and locations; grids and maps; electronic databases; models;
specifications; computer programs; internal business records; contracts benefiting or obligating
the Company; bids or proposals submitted to any third party; technologies and methods; training
methods and training processes; organizational structure; personnel information, including salaries
of personnel; labor or employee relations or agreements; payment amounts or rates paid to
consultants or other service providers; and other such confidential or proprietary information.
Information need not qualify

12

 

as a trade secret to be protected as Confidential Information under this Agreement, and the
authorized and controlled disclosure of Confidential Information to authorized parties by Company
in the pursuit of its business will not cause the information to lose its protected status under
this Agreement. Executive acknowledges and stipulates that this Confidential Information
constitutes a valuable, special, and unique asset used by the Company in its businesses to obtain a
competitive advantage over its competitors. Executive further acknowledges that protection of such
Confidential Information against unauthorized disclosure and use is of critical importance to the
Company in maintaining its competitive position and economic investment, as well as work for its
employees.

          (d) Unfair Competition Restrictions. Executive agrees that for a period of twenty- four (24)
months following the date of his termination (“Restricted Term”), he will not, directly or
indirectly, for himself or for others, anywhere in those areas where the Company currently
(including the City of New Orleans and its surrounding parishes, and in those cities or parishes
listed in Attachment “A-1” attached hereto) (the “Restricted Area”) conducts or is seeking
to conduct business of the same nature as the Company, including the Related Entities, do any of
the following, unless expressly authorized by the Company’s Board Chair: Engage in, or assist any
person, entity, or business engaged in, the selling or providing of products or services that would
displace the products or services that (i) the Company is currently in the business of providing
and was in the business of providing, or is planning to be in the business of providing, at the
time of the execution of this Agreement, or (ii) that Executive had involvement in, access to, or
received Confidential Information about in the course of employment. The foregoing is expressly
understood to include, without limitation, the business of the manufacturing, selling and/or
providing products or services of the same type offered and/or sold by the Company.

     4. Prohibition on Circumvention. It is further agreed that during the Restricted Term,
Executive cannot circumvent these covenants by alternative means or engage in any of the enumerated
prohibited activities in the Restricted Area by means of telephone, telecommunications, satellite
communications, correspondence, or other contact from outside the Restricted Area. Executive
further understands that the foregoing restrictions may limit his ability to engage in certain
businesses during the Restricted Term, but acknowledge that these restrictions are necessary to
protect the Confidential Information and business interests of the Company.

     5. Proviso. It is agreed that these covenants do not prevent Executive from using and
offering the general management or other skills that he possessed prior to receiving access to
Confidential Information and knowledge from the Company. This Agreement creates an advance
approval process, and nothing herein is intended, or will be construed as, a general restriction
against Executive’s pursuit of lawful employment in violation of any controlling state or federal
laws. Executive is permitted to engage in activities that would otherwise be prohibited by this
covenant if such activities are determined in the sole discretion of the Board of the Company, and
authorized in writing, to be of no material threat to the legitimate business interests of the
Company.

13

 

     6. Non-Solicitation of Customers. For a period of twenty-four (24) months following
Executive’s termination of employment or employment agreement, Executive agrees not to call on,
service, or solicit competing business from customers of the Company, in the Restricted Area, whom
he, within the previous twenty-four (24) months, (i) had or made contact with, or (ii) had access
to information and files about; or, induce or encourage any such customer or other source of
ongoing business to stop doing business with the Company. This provision does not prohibit
Executive from managing or providing other services or products that are not a product or services
currently offered by the Company.

     7. Non-Solicitation of Employees. For a period of twenty-four (24) months following the date
of Executive’s termination of employment or employment agreement, Executive will not, either
directly or indirectly, call on, solicit, encourage, or induce any other employee or officer of the
Company, whom he had contact with, knowledge of, or association within the course of employment
with the Company to discontinue his or her employment, and will not assist any other person or
entity in such a solicitation.

     8. Non-Disparagement. Executive covenants and agrees he will not engage in any pattern of
conduct that involves the making or publishing of written or oral statements or remarks (including,
without limitation, the repetition or distribution of derogatory rumors, allegations, negative
reports or comments) which are disparaging, deleterious or damaging to the integrity, reputation or
good will of the Company or its respective management or products and services.

     9. Separability of Covenants. The covenants contained in Section 3 herein constitute a series
of separate but ancillary covenants, one for each applicable parish in the State of Louisiana set
forth in this Agreement or Attachment “A-1” hereto. If in any judicial proceeding, a court shall
hold that any of the covenants set forth in Section 3 exceed the time, geographic, or occupational
limitations permitted by applicable law, Executive and the Company agree that such provisions shall
and are hereby reformed to the maximum time, geographic, or occupational limitations permitted by
such laws, Further, in the event a court shall hold unenforceable any of the separate covenants
deemed included herein, then such unenforceable covenant or covenants shall be deemed eliminated
from the provisions of this Agreement for the purpose of such proceeding to the extent necessary to
permit the remaining separate covenants to be enforced in such proceeding. Executive and the
Company further agree that the covenants in Section 3 shall each be construed as a separate
agreement independent of any other provisions of this Agreement, and the existence of any claim or
cause of action by Executive against the Company, whether predicated on this Agreement, his
Employment Agreement or otherwise, shall not constitute a defense to the enforcement by the Company
of any of the covenants of Section 3.

     10. Consideration. Executive acknowledges and agrees that no other consideration for
Executive’s covenants in this Agreement, other than that specifically referred to in Section 5.2 of
the Employment Agreement, has or will be paid or furnished to him by the Company or the Related
Entities.

     11. Return of Items. Upon termination and/or retirement, Executive will return any computer
related hardware or software, cell phone, keys, or other data or company property in

14

 

his possession or control, including all customer list(s), pricing documents, etc., to the
Company, except as may be specifically provided for to the contrary in the Employment Agreement.

     12. Meaning of Certain Terms. All non-capitalized terms in Sections 3 and 4 are intended to
and shall have the same meanings that those terms (to the extent they appear therein) have in La.
R. S. 23:921.C. Subject to and only to the extent not consistent with the foregoing sentence,
the parties understand the following phrases to have the following meanings:

          (a) The phrase “carrying on or engaging in a business similar to the business of the
Company” includes engaging, as principal, executive, employee, agent, trustee, advisor,
consultant or through the agency of any corporation, partnership, association or agent or agency,
in any business which conducts business in competition with the Company (including its Related
Entities) or being the owner of more than 1% of the outstanding capital stock of any corporation,
or an officer, director, or employee of any corporation or other entity, (other than the Company or
a corporation or other entity, affiliated with the Company) or a member or employee or any
partnership, or an owner or employee of any other business, which conducts a business or provides a
service in the Restricted Area in competition with the Company or any affiliated corporation or
other entity. Moreover, the term also includes (i) directly or indirectly inducing any current
customers of the Company, or any affiliated corporation or other entity, to patronize any product
or service business in competition with the Company or any affiliated corporation or other entity,
(ii) canvassing, soliciting, or accepting any product or service business of the type conducted by
the Company or any affiliated corporation or other entity (iii) directly or indirectly requesting
or advising any current customers of the Company or any affiliated corporation or other entity, to
withdraw, curtail or cancel such customer’s business with the Company or any affiliated corporation
or other entity; or (iv) directly or indirectly disclosing to any other person, firm, corporation
or entity, the names or addresses of any of the current customers of the Company or any affiliated
corporation or other entity or the rates or other terms on which the Company provides services to
its customers. In addition, the term includes directly or indirectly, through any person, firm,
association, corporation or other entity with which Executive is now or may hereafter become
associated, causing or inducing any present employee of the Company or any affiliated corporation
or other entity to leave the employ of the Company or any affiliated corporation or other entity to
accept employment with Executive or with such person, firm, association, corporation, or other
entity.

          (b) The phrase “a business similar to the business of the Company” means
environmental waste treatment and services and temporary work sites and access roads to the
exploration, production and maritime industries and other commercial markets, including mat sales
and rentals, drilling fluids, and the treatment of water, oil and other fluid streams and related
technology; and, heavy oil and water treatment utilizing ARMAL Activation or sonochemistry
technology.

          (c) The phrase “carries on a like business” includes, without limitation, actions
taken by or through a wholly-owned subsidiary or other affiliated corporation or entity.

          (d) All references to the Company shall also be deemed to refer to and include the Related
Entities.

15

 

     13. Reasonable Restrictions. Executive represents to the Company that the enforcement of the
restrictions contained in this Agreement would not be unduly burdensome to Executive and
acknowledges that Executive is willing and able, subject to the Restricted Area as defined herein,
to compete in other geographical areas not prohibited by this Agreement. The parties to this
Agreement hereby agree that the covenants contained in this Agreement are reasonable.

     14. Entire Agreement. Except with respect to the Employment Agreement executed concurrently
herewith, and with respect to certain matters included in a separate Agreement being entered into
between Executive and the Company on the date of this Agreement (“Appendix B and B-1”), this
Agreement constitutes the entire agreement between the parties hereto with respect to the subject
matter of this Agreement and supersedes and is in full substitution for any and all prior
agreements and understandings whether written or oral between said parties relating to the subject
matter of this Agreement. This Agreement shall not supersede or substitute for, nor be superseded
or substituted by, the Employment Agreement, but shall have full force and effect concurrently
therewith.

     15. Amendment. This Agreement may not be amended or modified in any respect except by an
agreement in writing executed by the parties in the same manner as this Agreement except as
provided in Section 18 of this Agreement.

     16. Assignment. This Agreement (including, without limitation, Executive’s obligations under
Sections 3 and 4) may be assigned by the Company without the consent of Executive in connection
with the sale, transfer or other assignment of all or substantially all of the capital stock or
assets of, or the merger of, the Company, provided that the party acquiring such capital stock or
assets or into which the company merges assumes in writing the obligations of the Company hereunder
and provided further that no such assignment shall release the Company from its obligations
hereunder. This Agreement (including, without limitation, Executive’s obligations under Sections 3
and 4) may not be assigned or encumbered in any way by Executive without the written consent of the
Company.

     17. Successors. This Agreement (including, without limitation, Executive’s obligations under
Sections 3 and 4) shall be binding upon and shall inure to the benefit of and be enforceable by
each of the parties and their respective successors and assigns.

     18. Unenforceable Provisions. If, and to the extent that, any section, paragraph, part, term
and/or provision of this Agreement would otherwise be found null, void, or unenforceable under
applicable law by any court of competent jurisdiction, that section, paragraph, part, term and/or
provision shall automatically not constitute part of this Agreement. Each section, paragraph,
part, term and/or provision of this Agreement is intended to be and is severable from the remainder
of this Agreement. If, for any reason, any section, paragraph, part, term and/or provision herein
is determined not to constitute part of this Agreement or to be null, void, or unenforceable under
applicable law by any court of competent jurisdiction, the operation of the other sections,
paragraphs, parts, terms and/or provisions of this Agreement as may remain otherwise intelligible
shall not be impaired or otherwise affected and shall continue to have full force and effect and
bind the parties hereto.

16

 

     19. Remedies.

          (a) Executive agrees that a breach or violation of Section 3 or 4 of this Agreement by
Executive shall entitle the Company as a matter of right, to an injunction, without necessity of
posting bond, issued by any court of competent jurisdiction, restraining any further or continued
breach or violation of such provisions. Such right to an injunction shall be cumulative and in
addition, and not in lieu of, any other remedies to which the Company may show themselves justly
entitled, including, but not limited to, specific performance and damages. The parties
specifically agree that the remedy of damages alone is inadequate.

          (b) In the event that Executive knowingly and intentionally fails in any material respect to
perform any of his material obligations under this Agreement, the Company may elect (i) to cease
all payments under Section 5.2 of the Employment Agreement and recover all payments previously made
to Executive under Section 5.2 of the Employment Agreement, (ii) obtain an injunction and/or (iii)
exercise any and all other remedies available by law.

          (c) Notwithstanding the foregoing subsection (b), Executive will have no liability or
responsibility for: (i) inadvertent disclosure or use of the Information if (x) he uses the same
degree of care in safeguarding the Information that the Company uses to safeguard information of
like importance and (y) upon discovery of such inadvertent disclosure or use of such material,
Executive immediately uses his best efforts, including the commencement of litigation, if
necessary, to prevent any use thereof by the person or persons to whom it has been disclosed and to
prevent any further incidental disclosure thereof; and (ii) , disclosure of Information (x) that is
required by law, (y) that is made pursuant to a proper subpoena from a court or administrative
agency of competent jurisdiction from a court or administrative agency of competent jurisdiction or
(z) that is made upon written demand of an official involved in regulating you if before disclosure
is made, Executive immediately notifies the Company of the requested disclosure by the most
immediate means of communication available and confirms in writing such notification within one
business day thereafter.

     20. Notice. All notices, consents, requests, approvals or other communications in connection
with this Agreement and all legal process in regard hereto shall be in writing and shall be deemed
validly delivered, if delivered personally or sent by certified mail, postage prepaid. Unless
changed by written notice pursuant hereto, the address of each party for the purposes hereof is as
follows:

	 	 	 	 	 
	 

	 	If to Executive:
	 	If to the Company:
	 

	 	3 Hummingbird Drive
	 	3850 Causeway Blvd., Suite 5770
	 

	 	Covington, LA 70433
	 	Metairie, LA 70002-1752
	 

	 	 	 	Attn: Chairman of Board

Notice given by mail as set out above shall be deemed delivered only when actually received.

     21. Descriptive Headings. The descriptive headings of the several sections of this Agreement
are inserted for convenience only and shall not control or affect the meaning or construction of
any of the provisions hereof.

17

 

     22. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Louisiana without regard to conflicts of law principles.

     23. Representation by counsel. Each of the parties has been represented by counsel and has
actively participated in the drafting of this Agreement.

     IN WITNESS WHEREOF, the parties have duly executed this Louisiana Unfair Competition,
Confidentiality and Non-competition Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	Executive	 	 
	 
	 	 	 	 	 	 
	 	 	               /s/ James D. Cole	 	 
	 	 	 	 	 
	 

	 	 	 	     James D. Cole	 	 
	 
	 	 	 	 	 	 
	 	 	Newpark Resources, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     David P. Hunt	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     David Hunt, Board Chairman	 	 

18

 

ATTACHMENT A-1 (Restricted Areas)

States and areas in which Newpark Resources, Inc. currently does business:

1. Louisiana

2. Texas

3. Nevada

4. Wyoming

5 Montana

6. Colorado

7. South Dakota

8. Oklahoma

Other areas:

9. The Gulf of Mexico, off what is commonly the “Gulf Coast,” including Texas, Louisiana,
Mississippi, Alabama and Florida, including the waters of the Outer Continental Shelf.

10. Western Canada

Louisiana Parishes in which Newpark Resources, Inc currently does business:

1. Acadia

2. Allen

3. Assumption

4. Avoyelles

5. Beauregard

6. Bossier

7. Calcasieu

8. Cameron

9. East Ascension

10. East Baton Rouge

11. Evangeline

12. Grant

13. Iberia

14. Iberville

15. Jeff Davis

16. Jefferson

17. Lafayette

18. Lafourche

19. Livingston

20. Plaquemine

21. Pointe Coupee

22. Rapides

23. Richland

24. St. Charles

25. St. James

26. St. Landry

27. St. Martin

28. St. Mary

29. St. Tammany

30. Terrebonne

31. Vermilion

32. Washington

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APPENDIX B

TEXAS AND NON-LOUISIANA UNFAIR COMPETITION, CONFIDENTIALITY AND

NON-COMPETITION AGREEMENT

     THIS UNFAIR COMPETITION, CONFIDENTIALITY AND NONCOMPETITION AGREEMENT (this “Ancillary
Agreement”) dated and effective as of May 2, 2005 is made by James D. Cole
(“Executive”) and Newpark Resources, Inc. (the “Company”).

RECITALS:

     WHEREAS, Executive and the Company have entered into an Agreement dated this date (the
“Employment Agreement”), to which this Agreement is ancillary and incorporated by
reference, pursuant to which, among other things, the Company agrees to make certain payments to
Executive; and

     WHEREAS, pursuant to the Employment and Settlement Agreement, the Company and Executive have
agreed to enter into this Ancillary Agreement; and

     NOW, THEREFORE, in consideration of Executive’s Employment Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Executive and
the Company hereby covenant and agree as follows:

     1. Definitions. Each capitalized term not defined herein shall have the meaning
assigned to that term in the Employment Agreement.

     2. Confidentiality. Executive acknowledges that in the course of his relationship
with the Company and its related entities Newpark Drilling Fluids, Newpark Environmental Services,
SOLOCO, Newpark Canada, and Newpark Water (the “Related Entities” or referred to
collectively with Newpark Resources as the “Company”) he has in the past received, and may
in the future receive, certain trade secrets, programs, lists of customers and other confidential
or proprietary information and knowledge concerning the business of the Company and its Related
Entities (hereinafter collective referred to as “Confidential Information”) which the
Company desires to protect. Executive understands that the information is confidential and he
agrees not to reveal the Confidential Information to anyone outside the Company so long as the
confidential or secret nature of the Confidential Information shall continue, other than such
disclosure as authorized by the Company or is made to a person transacting business with the
Company who has reasonable need for such Confidential Information. Executive further agrees that
he will at no time use the Confidential Information for or on behalf of any person other than the
Company for any purpose. Executive further agrees to comply with the confidentiality and other
provisions set forth in this Agreement, the terms of which are supplemental to any statutory or
fiduciary or other obligations relating to these matters. On the termination of employment or his
Employment Agreement, Executive shall surrender to the Company all papers, documents, writings and
other property produced by him or coming into his possession by or through his relationship with
the Company or relating to the Confidential Information and Executive agrees that all such
materials will at all times remain the property of the Company.

20

 

     3. Specific Covenants.

          (a) This Agreement. The terms of this Agreement constitute Confidential Information, which
Executive shall not disclose to anyone other than his spouse, attorney, accountant, or as may be
required by the Company or by law.

          (b) Company Property. All written materials, customer or other lists or data bases, records,
data, and other documents prepared or possessed by you during your employment with the Company are
the Company’s property. All information, ideas, concepts, improvements, discoveries, and
inventions that are conceived, made, developed, or acquired by you individually or in conjunction
with others during your employment (whether during business hours and whether on the Company’s
premises or otherwise) which relate to the Company’s business, products, or services are the
Company’s sole and exclusive property. All memoranda, notes, records, files, correspondence,
drawings, manuals, models, specifications, computer programs, maps, and all other documents, data,
or materials of any type embodying such information, ideas, concepts, recipes, inventory, prices,
improvements, discoveries, and inventions are the Company’s property. At the termination of
Executive’s employment with the Company for any reason, Executive shall return all of the Company’s
documents, data, or other Company Property to the Company. Included in the above are all such data
that Executive had access to, over, or possessed. The Company desires by this Agreement to protect
its economic investment in its current and future operations and business.

          (c) Confidential Information; Non-Disclosure. Executive acknowledges and stipulates that the
business of the Company is highly competitive, cost and price sensitive, and that he in connection
with his work and job have had access to Confidential Information relating to the Company
Resource’s businesses and their methods and operations. For purposes of this Agreement,
“Confidential Information” means and includes the Company’s confidential and/or proprietary
information and/or trade secrets that have been developed or used and/or will be developed and that
cannot be obtained readily by third parties from outside sources. Confidential Information
includes, by way of example and without limitation, the following information regarding customers,
employees, contractors, its operations and its markets and the industry not generally known to the
public; strategies, methods, books, records, and documents; recipes, technical information
concerning products, equipment, services, and processes; procurement procedures and pricing
techniques; the names of and other information concerning customers and those being solicited to be
customers, investors, and business relations (such as contact name, service provided, pricing for
that customer, type and amount of product used, credit and financial data, and/or other information
relating to the Company’s relationship with that customer); pricing strategies and price curves;
positions, plans, and strategies for expansion or acquisitions; budgets; customer lists; research;
financial and sales data; raw materials purchasing or trading methodologies and terms; evaluations,
opinions, and interpretations of information and data; marketing and merchandising techniques;
prospective customers’ names and locations; grids and maps; electronic databases; models;
specifications; computer programs; internal business records; contracts benefiting or obligating
the Company; bids or proposals submitted to any third party; technologies and methods; training
methods and training processes; organizational structure; personnel information, including salaries
of personnel; labor or employee relations or agreements; payment amounts or rates paid to
consultants or other service providers; and other such confidential or proprietary information.
Information need not qualify

21

 

as a trade secret to be protected as Confidential Information under this Agreement, and the
authorized and controlled disclosure of Confidential Information to authorized parties by Company
in the pursuit of its business will not cause the information to lose its protected status under
this Agreement. Executive acknowledges and stipulates that this Confidential Information
constitutes a valuable, special, and unique asset used by the Company in its businesses to obtain a
competitive advantage over its competitors. Executive further acknowledges that protection of such
Confidential Information against unauthorized disclosure and use is of critical importance to the
Company in maintaining its competitive position and economic investment, as well as work for its
employees.

          (d) Unfair Competition Restrictions. Executive agrees that for a period of thirty-six (36)
months following the date of his termination or such lesser period of time as is the maximum amount
permitted by law (“Restricted Term”), he will not, directly or indirectly, for himself or
for others, anywhere in those areas where the Company currently (including the City of Houston and
its surrounding counties, and in those cities or counties or states listed in Attachment “B-1”
attached hereto) (the “Restricted Area”) conducts or is seeking to conduct business of the
same nature as Newpark Resources and its Related Entities, do any of the following, unless
expressly authorized by Newpark Resources Board Chair: Engage in, or assist any person, entity, or
business engaged in, the selling or providing of products or services that would displace the
products or services that (i) the Company is currently in the business of providing and was in the
business of providing, or is planning to be in the business of providing, at the time of the
execution of this Agreement, or (ii) that Executive had involvement in, access to, or received
Confidential Information about in the course of employment. The foregoing is expressly understood
to include, without limitation, the business of the manufacturing, selling and/or providing
products or services of the same type offered and/or sold by the Company.

     4. Prohibition on Circumvention. It is further agreed that during the Restricted Term,
Executive cannot circumvent these covenants by alternative means or engage in any of the enumerated
prohibited activities in the Restricted Area by means of telephone, telecommunications, satellite
communications, correspondence, or other contact from outside the Restricted Area. Executive
further understands that the foregoing restrictions may limit his ability to engage in certain
businesses during the Restricted Term, but acknowledge that these restrictions are necessary to
protect the Confidential Information and business interests of the Company.

     5. Proviso. It is agreed that these covenants do not prevent Executive from using and
offering the genera! management or other skills that he possessed prior to receiving access to
Confidential Information and knowledge from the Company. This Agreement creates an advance
approval process, and nothing herein is intended, or will be construed as, a general restriction
against Executive’s pursuit of lawful employment in violation of any controlling state or federal
laws. Executive is permitted to engage in activities that would otherwise be prohibited by this
covenant if such activities are determined in the sole discretion of the Board of the Company, and
authorized in writing, to be of no material threat to the legitimate business interests of the
Company.

     6. Non-Solicitation of Customers. For a period of twenty-four (24) months following
Executive’s termination of employment or employment agreement, Executive agrees

22

 

not to call on, service, or solicit competing business from customers of the Company, in the
Restricted Area, whom he, within the previous twenty-four (24) months, (i) had or made contact
with, or (ii) had access to information and files about; or, induce or encourage any such customer
or other source of ongoing business to stop doing business with the Company. This provision does
not prohibit Executive from managing or providing other services or products that are not a product
or services currently offered by the Company.

     7. Non-Solicitation of Employees. For a period of twenty-four (24) months following the date
of Executive’s termination of employment or employment agreement, Executive will not, either
directly or indirectly, call on, solicit, encourage, or induce any other employee or officer of the
Company, whom he had contact with, knowledge of, or association within the course of employment
with the Company to discontinue his or her employment, and will not assist any other person or
entity in such a solicitation.

     8. Non-Disparagement. Executive covenants and agrees he will not engage in any pattern of
conduct that involves the making or publishing of written or oral statements or remarks (including,
without limitation, the repetition or distribution of derogatory rumors, allegations, negative
reports or comments) which are disparaging, deleterious or damaging to the integrity, reputation or
good will of the Company or its respective management or products and services.

     9. Separability of Covenants. The covenants contained in Section 3 herein constitute a series
of separate but ancillary covenants, one for each applicable county in the State of Texas and/or
each area of operation in each state, county, and area as set forth in this Agreement or Attachment
“B- 1” hereto. If in any judicial proceeding, a court shall hold that any of the covenants set
forth in Section 3 exceed the time, geographic, or occupational limitations permitted by applicable
law, Executive and the Company agree that such provisions shall and are hereby reformed to the
maximum time, geographic, or occupational limitations permitted by such laws. Further, in the
event a court shall hold unenforceable any of the separate covenants deemed included herein, then
such unenforceable covenant or covenants shall be deemed eliminated from the provisions of this
Agreement for the purpose of such proceeding to the extent necessary to permit the remaining
separate covenants to be enforced in such proceeding. Executive and the Company further agree that
the covenants in Section 3 shall each be construed as a separate agreement independent of any other
provisions of this Agreement, and the existence of any claim or cause of action by Executive
against the Company, whether predicated on this Agreement or Employment Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of any of the covenants of Section
3.

     10. Consideration. Executive acknowledges and agrees that no other consideration for
Executive’s covenants in this Agreement, other than that specifically referred to in Section 5.2 of
the Employment Agreement, has or will be paid or furnished to him by the Company or the Related
Entities.

     11. Return of Items. Upon termination and/or retirement, Executive will return any computer
related hardware or software, cell phone, keys, or other data or company property in his possession
or control, including all customer list(s), pricing documents, etc., to the Company,

23

 

except as may be specifically provided for to the contrary in Executive’s Employment
Agreement.

     12. Meaning of Certain Terms. The parties understand the following phrases to have the
following meanings:

          (a) The phrase “carrying on or engaging in a business similar to the business of the
Company” includes engaging, as principal, executive, employee, agent, trustee, advisor,
consultant or through the agency of any corporation, partnership, association or agent or agency,
in any business which conducts business in competition with the Company (including its Related
Entities) or being the owner of more than 1% of the outstanding capital stock of any corporation,
or an officer, director, or employee of any corporation or other entity, (other than the Company or
a corporation or other entity, affiliated with the Company) or a member or employee or any
partnership, or an owner or employee of any other business, which conducts a business or provides a
service in the Restricted Area in competition with the Company or any affiliated corporation or
other entity. Moreover, the term also includes (i) directly or indirectly inducing any current
customers of the Company, or any affiliated corporation or other entity, to patronize any product
or service business in competition with the Company or any affiliated corporation or other entity,
(ii) canvassing, soliciting, or accepting any product or service business of the type conducted by
the Company or any affiliated corporation or other entity (iii) directly or indirectly requesting
or advising any current customers of the Company or any affiliated corporation or other entity, to
withdraw, curtail or cancel such customer’s business with the Company or any affiliated corporation
or other entity; or (iv) directly or indirectly disclosing to any other person, firm, corporation
or entity, the names or addresses of any of the current customers of the Company or any affiliated
corporation or other entity or the rates or other terms on which the Company provides services to
its customers. In addition, the term includes directly or indirectly, through any person, firm,
association, corporation or other entity with which Executive is now or may hereafter become
associated, causing or inducing any present employee of the Company or any affiliated corporation
or other entity to leave the employ of the Company or any affiliated corporation or other entity to
accept employment with Executive or with such person, firm, association, corporation, or other
entity.

          (b) The phrase “a business similar to the business of the Company” means environmental
waste treatment and services and temporary work sites and access roads to the exploration,
production and maritime industries and other commercial markets, including mat sales and rentals,
drilling fluids, and the treatment of water, oil and other fluid streams and related technology;
and, heavy oil and water treatment utilizing ARMAL Activation or sonochemistry technology.

          (c) The phrase “carries on a like business” includes, without limitation, actions
taken by or through a wholly-owned subsidiary or other affiliated corporation or entity.

          (d) All references to the Company shall also be deemed to refer to and include

     13. Reasonable Restrictions. Executive represents to the Company that the enforcement of the
restrictions contained in this Agreement would not be unduly burdensome to Executive and
acknowledges that Executive is willing and able, subject to the Restricted Area as

24

 

defined herein, to compete in other geographical areas not prohibited by this Agreement. The
parties to this Agreement hereby agree that the covenants contained in this Agreement are
reasonable.

     14. Entire Agreement. Except with respect to the Employment Agreement executed concurrently
herewith, and with respect to certain matters included in a separate Agreement being entered into
between Executive and the Company on the date of this Agreement (“Appendix B and B-1”), this
Agreement constitutes the entire agreement between the parties hereto with respect to the subject
matter of this Agreement and supersedes and is in full substitution for any and all prior
agreements and understandings whether written or oral between said parties relating to the subject
matter of this Agreement. This Agreement shall not supersede or substitute for, nor be superseded
or substituted by, the Employment Agreement, but shall have full force and effect concurrently
therewith.

     15. Amendment. This Agreement may not be amended or modified in any respect except by an
agreement in writing executed by the parties in the same manner as this Agreement except as
provided in Section 18 of this Agreement.

     16. Assignment. This Agreement (including, without limitation, Executive’s obligations under
Sections 3 and 4) may be assigned by the Company without the consent of Executive in connection
with the sale, transfer or other assignment of all or substantially all of the capital stock or
assets of, or the merger of, the Company, provided that the party acquiring such capital stock or
assets or into which the company merges assumes in writing the obligations of the Company hereunder
and provided further that no such assignment shall release the Company from its obligations
hereunder. This Agreement (including, without limitation, Executive’s obligations under Sections 3
and 4) may not be assigned or encumbered in any way by Executive without the written consent of the
Company.

     17. Successors. This Agreement (including, without limitation, Executive’s obligations under
Sections 3 and 4) shall be binding upon and shall inure to the benefit of and be enforceable by
each of the parties and their respective successors and assigns.

     18. Unenforceable Provisions. If, and to the extent that, any section, paragraph, part, term
and/or provision of this Agreement would otherwise be found null, void, or unenforceable under
applicable law by any court of competent jurisdiction, that section, paragraph, part, term and/or
provision shall automatically not constitute part of this Agreement. Each section, paragraph,
part, term and/or provision of this Agreement is intended to be and is severable from the remainder
of this Agreement. If, for any reason, any section, paragraph, part, term and/or provision herein
is determined not to constitute part of this Agreement or to be null, void, or unenforceable under
applicable law by any court of competent jurisdiction, the operation of the other sections,
paragraphs, parts, terms and/or provisions of this Agreement as may remain otherwise intelligible
shall not be impaired or otherwise affected and shall continue to have full force and effect and
bind the parties hereto.

25

 

     19. Remedies.

          (a) Executive agrees that a breach or violation of Section 3 or 4 of this Agreement by
Executive shall entitle the Company as a matter of right, to an injunction, without necessity of
posting bond, issued by any court of competent jurisdiction, restraining any further or continued
breach or violation of such provisions. Such right to an injunction shall be cumulative and in
addition, and not in lieu of, any other remedies to which the Company may show themselves justly
entitled, including, but not limited to, specific performance and damages. The parties
specifically agree that the remedy of damages alone is inadequate.

          (b) In the event that Executive knowingly and intentionally fails in any material respect to
perform any of his material obligations under this Agreement, the Company may elect (i) to cease
all payments under Section 5.2 of the Employment Agreement and recover all payments previously made
to Executive under Section 5.2 of that Agreement, (ii) obtain an injunction and/or (iii) exercise
any and all other remedies available by law.

Notwithstanding the foregoing subsection (b), Executive will have no liability or responsibility
for: (i) inadvertent disclosure or use of the Information if (x) he uses the same degree of care in
safeguarding the Information that the Company uses to safeguard information of like importance and
(y) upon discovery of such inadvertent disclosure or use of such material, Executive immediately
uses his best efforts, including the commencement of litigation, if necessary, to prevent any use
thereof by the person or persons to whom it has been disclosed and to prevent any further
incidental disclosure thereof; and (ii) , disclosure of Information (x) that is required by law,
(y) that is made pursuant to a proper subpoena from a court or administrative agency of competent
jurisdiction from a court or administrative agency of competent jurisdiction or (z) that is made
upon written demand of an official involved in regulating you if before disclosure is made,
Executive immediately notifies the Company of the requested disclosure by the most immediate means
of communication available and confirms in writing such notification within one business day
thereafter.

     20. Notice. All notices, consents, requests, approvals or other communications in connection
with this Agreement and all legal process in regard hereto shall be in writing and shall be deemed
validly delivered, if delivered personally or sent by certified mail, postage prepaid. Unless
changed by written notice pursuant hereto, the address of each party for the purposes hereof is as
follows:

	 	 	 	 	 
	 

	 	If to Executive:
	 	If to the Company:
	 

	 	3 Hummingbird Drive
	 	3850 Causeway Blvd., Suite 5770
	 

	 	Covington, LA 70433
	 	Metairie, LA 70002-1752
	 

	 	 	 	Attn: Chairman of Board

     Notice given by mail as set out above shall be deemed delivered only when actually received.

     21. Descriptive Headings. The descriptive headings of the several sections of this Agreement
are inserted for convenience only and shall not control or affect the meaning or construction of
any of the provisions hereof.

26

 

     22. Governing Law. This Appendix B shall be governed by and construed and enforced in
accordance with the laws of the State of Texas (other than the choice of law principles thereof).

     23. Representation by counsel. Each of the parties has been represented by counsel and has
actively participated in the drafting of this Agreement.

     IN WITNESS WHEREOF, the parties have duly executed this Unfair Competition, Confidentiality
and Non-competition Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	Executive:	 	 
	 
	 	 	 	 	 	 
	 	 	               /s/ James D. Cole	 	 
	 	 	 	 	 
	 	 	               James D. Cole	 	 
	 
	 	 	 	 	 	 
	 	 	Newpark Resources, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     David P. Hunt	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     David Hunt, Board Chairman	 	 

27

 

ATTACHMENT B-1 (Restricted Areas)

Areas in which Newpark Resources, Inc. currently does business:

1. Louisiana

2. Texas

3. Oklahoma

4. Colorado

5. Wyoming

6. Utah

7. Nevada

8. Montana

Other states or areas in which Newpark Resources, Inc currently does business:

9. Western Canada

10. Gulf of Mexico (off the “Gulf Coast”), including Texas, Louisiana, Mississippi, Alabama
and Florida, including the waters of the Outer Continental Shelf.

Texas Counties in which Newpark Resources, Inc currently does business:

1. Andrews

2. Aransas

3. Austin

4. Bee

5. Bienville

6. Borden

7. Brazoria

8. Brazos

9. Brooks

10. Burleson

11. Calhoun

12. Cameron

13. Chambers

14. Cochran

15. Colorado

16. Crane

17. Crockett

18. Culberson

19. Dewitt

20. Duval

21. Ector

22. Fayette

23. Fort Bend

24. Freestone

25. Gaines

26. Galveston

27. Glasscock

28. Goliad

29. Gregg

30. Hardin

31. Harris

32. Harrison

33. Hidalgo

34. Hockley

35. Houston

36. Howard

37. Jackson

38. Jefferson

39. Jim Hogg

40. Jim Wells

41. Karnes

42. Kenedy

43. Kleberg

44. Lavaca

45. Leon

46. Liberty

47. Limestone

48. Live Oak

49. Loving

50. Lubbock

51. Marion

52. Matagorda

53. McMullen

54. Motley

55. Nacogdoches

56. Navarro

57. Newton

58. Nueces

59.Orange

60.Panola

61. Pecos

62. Polk

63. Reagan

64. Reeves

65. Robertson

66. Roosevelt

67. Rusk

68. San Patricio

69. Schleicher

70. Scurry

71. Shelby

72. Snyder

73. Starr

74. Sterling

75. Terrell

76. Terry

77. Titus

78. Tom Green

79. Upshur

80. Upton

81. Val Verde

82. Victoria

83. Waller

84. Washington

85. Webb

86. Wharton

87. Winkler

88. Yoakum

89. Zapata

28exv10w36

 

EXHIBIT 10.36

THIRD AMENDMENT TO

AMENDED AND RESTATED

CREDIT AGREEMENT

     THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is
made and entered into as of July 15, 2005 among NEWPARK RESOURCES, INC., a Delaware corporation
(“Newpark”), each of the other Borrowers signatory hereto (collectively with Newpark,
“Borrower” or “Borrowers”); the other Loan Parties signatory hereto; JPMORGAN CHASE
BANK, N.A. (successor by merger to Bank One, N.A. (Main Office Chicago)), for itself, as Lender,
and as agent for Lenders (in such capacity, the “Agent”); and the other Lenders signatory
hereto.

     WHEREAS, Borrowers, Loan Parties, Agent and Lenders are parties to that certain Amended and
Restated Credit Agreement dated as of February 25, 2004, as amended by that certain First Amendment
to Amended and Restated Credit Agreement dated as of July 26, 2004 and that certain Second
Amendment to Amended and Restated Credit Agreement dated as of March 10, 2005 (as further amended,
restated or modified from time to time, the “Credit Agreement”);

     WHEREAS, Newpark has previously informed Agent that it has entered into an agreement to
purchase all of the issued and outstanding Capital Stock of OLS Consulting Services, Inc., a
Louisiana corporation (“OLS”), pursuant to that certain Stock Purchase Agreement, dated as
of March 22, 2005 (“Purchase Agreement”), by and among Newpark, Ores Paul Seaux, Luci P.
Seaux, Kenneth Paul Seaux (collectively, “Sellers”) and OLS as acknowledged by H. Kenneth
Lefoldt, Jr., the Chapter 11 Trustee (“Chapter 11 Trustee”) in the Loma Bankruptcy (the
“OLS Acquisition”).

     WHEREAS, Newpark has advised Agent that the OLS Acquisition was consummated on April 18,
2005.

     WHEREAS, pursuant to the foregoing, Newpark previously requested that the Required Lenders
consent to the OLS Acquisition, and subject to the terms and conditions precedent and subsequent
set forth in that certain letter agreement dated April 18, 2005, among Agent, Newpark, the other
Borrowers and Loan Parties and Required Lenders, the Required Lenders consented to waive those
certain violations of the Credit Agreement which otherwise may have arisen from the consummation of
the OLS Acquisition (the “Consent”).

     WHEREAS, Newpark has further previously advised Agent that OLS owns a 51% membership interest
in The Loma Company, L.L.C., a Louisiana limited liability company (“Loma”), the remaining
49% of which is owned by Newpark Holdings, Inc. (“Holdings”) and that, in connection with
the OLS Acquisition and the settlement of all

Third Amendment to Amended and

Restated Credit Agreement

1

 

disputes in connection therewith by and among Newpark, Soloco, L.L.C., OLS, Holdings, the
Sellers, Chapter 11 Trustee, and the other parties to that certain Agreement of Mutual Receipt and
Release of all Claims, dated effective as of April 18, 2005, the parties agreed to dismiss the
Chapter 11 bankruptcy proceeding filed by Loma on August 11, 2004 (the “Loma Bankruptcy”)
in the United States Bankruptcy Court for the Western District of Louisiana (the “Bankruptcy
Court”).

     WHEREAS, an Agreed Order (1) Approving Trustee’s Settlement and Release of Claims of the
Estate Under Stock Purchase Agreement Pursuant to Bankruptcy Rule 9019 and (2) Dismissing Chapter
11 Case relating to the Loma Bankruptcy was agreed and approved by respective counsel of each of
the Chapter 11 Trustee, Newpark, Holdings, Soloco, L.L.C., OLS, Bank One, N.A., J.P. Morgan Trust
Company, N.A. and Sellers, which Agreed Order was signed and entered by Gerald H. Schiff, United
States Bankruptcy Judge on April 22, 2005 (“Agreed Order”).

     WHEREAS, pursuant to the terms of the Consent, Newpark is to cause each of OLS and Loma to be
joined as “Borrowers” under the Credit Agreement.

     WHEREAS, Borrowers, Loan Parties, Lenders and Agent desire to amend the Credit Agreement to
allow and provide for the foregoing and certain matters, all as hereinafter set forth.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

Definitions

     Section 1.01 Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the Credit Agreement, as amended
hereby.

ARTICLE II

Amendments

     Section 2.01 Amendment of Preamble. Effective as of the date hereof, the preamble of
the Credit Agreement is hereby amended and restated to read as follows:

“This Amended and Restated Credit Agreement, dated as of February 25, 2004, is
among Newpark Resources, Inc., a Delaware corporation, as the Company and as a
Borrower, Batson Mill, L.P., a Texas limited partnership, Dura-base Nevada, Inc.,
a Nevada corporation, Excalibar Minerals Inc., a Texas corporation, Excalibar
Minerals of LA., L.L.C., a Louisiana limited liability company, NES Permian Basin,
L.P., a Texas limited partnership, Newpark Drilling Fluids, LLC, a Texas limited

Third Amendment to Amended and

Restated Credit Agreement

2

 

liability company, Newpark Environmental Services, L.L.C., a Louisiana limited
liability company, Newpark Environmental Management Company, L.L.C., a Louisiana
limited liability company, Newpark Environmental Services of Texas, L.P., a Texas
limited partnership, Newpark Holdings, Inc., a Louisiana corporation, Newpark
Texas, L.L.C., a Louisiana limited liability company, NID, L.P., a Texas limited
partnership, Newpark Drilling Fluids Laboratory, Inc., a Texas corporation,
SOLOCO, L.L.C., a Louisiana limited liability company, SOLOCO Texas, L.P., a Texas
limited partnership, Supreme Contractors, L.L.C., a Louisiana limited liability
company, Composite Mat Solutions L.L.C., a Louisiana limited liability company,
Newpark Environmental Water Solutions LLC, a Delaware limited liability company,
Newpark Water Technology Partners LLC, a Delaware limited liability company, OLS
Consulting Services, Inc., a Louisiana corporation and The Loma Company, L.L.C., a
Louisiana limited liability company, each as a Borrower, the other Loan Parties,
the Lenders, and JPMorgan Chase Bank, N.A. (successor by merger to Bank One, N.A.
(Main Office Chicago)), as an LC Issuer and as the Agent.”

     Section 2.02 Amendment of Article I. Effective as of the date hereof:

          (a) Article I of the Agreement is hereby amended by amending and restating the
definition of “Borrower or Borrowers” in its entirety to read as follows:

     “‘Borrower’ or ‘Borrowers’ means, individually or
collectively, jointly and severally, the Company, Batson Mill, L.P., a Texas
limited partnership, Dura-base Nevada, Inc., a Nevada corporation, Excalibar
Minerals Inc., a Texas corporation, Excalibar Minerals of LA., L.L.C., a
Louisiana limited liability company, NES Permian Basin, L.P., a Texas limited
partnership, Newpark Drilling Fluids, LLC, a Texas limited liability company,
Newpark Environmental Services, L.L.C., a Louisiana limited liability company,
Newpark Environmental Management Company, L.L.C., a Louisiana limited liability
company, Newpark Environmental Services of Texas, L.P., a Texas limited
partnership, Newpark Holdings, Inc., a Louisiana corporation, Newpark Texas,
L.L.C., a Louisiana limited liability company, NID, L.P., a Texas limited
partnership, Newpark Drilling Fluids Laboratory, Inc., a Texas corporation,
SOLOCO, L.L.C., a Louisiana limited liability company, SOLOCO Texas, L.P., a
Texas limited partnership, Supreme Contractors, L.L.C., a Louisiana limited
liability company, Composite Mat Solutions L.L.C., a Louisiana limited liability
company, Newpark Environmental Water Solutions LLC, a Delaware limited liability
company, Newpark Water Technology Partners LLC, a Delaware limited liability
company, OLS Consulting Services, Inc., a Louisiana corporation and The Loma
Company, L.L.C., a Louisiana limited liability company.”

Third Amendment to Amended and

Restated Credit Agreement

3

 

     Section 2.03 Restatement of Certain Schedules. Effective as of the date hereof,
Schedule 5.9 to the Credit Agreement is hereby amended, restated and replaced with revised Schedule
5.9 as contained in Exhibit A attached hereto.

     Section 2.04 Amendment to Certain Schedules. Effective as of the date hereof,
Schedules 5.12, 5.16, 5.22, 5.23, 5.24, 5.25, 5.26, 6.21 and 6.22 of the Credit Agreement are each
hereby amended by adding to the end thereof, the information set forth on each respective Schedule
attached hereto as contained in Exhibit A attached hereto.

     Section 2.05 Amendment to Credit Agreement and Other Loan Documents. Effective as of
the date hereof, with respect to the Credit Agreement and the other Loan Documents, all references
in each such agreement to “Borrower”, “Loan Party” and “Guarantor” shall be deemed to include OLS
and Loma, respectively.

ARTICLE III

Conditions Precedent

     Section 3.01 Conditions. The effectiveness of this Amendment is subject to the
satisfaction of the following conditions precedent, unless specifically waived by Agent and
Lenders:

          (a) Agent shall have received all of the following documents, each document (unless otherwise
indicated) being dated the date hereof, duly authorized, executed and delivered by the parties
thereto, and in form and substance satisfactory to Agent and Lenders:

	 	(i)	 	this Amendment;
	 
	 	(ii)	 	the Third Amendment to Pledge and Security Agreement;
	 
	 	(iii)	 	the Joinder Agreement with respect to OLS and Loma;
	 
	 	(iv)	 	the amended and restated Notes;

     (v)   (A) an opinion of the legal counsel of OLS and Loma and each other
Borrower and Loan Party with respect to this Amendment, the amended and restated
Notes and other such matters as Agent may require, including that the Loma
Bankruptcy has been dismissed in its entirety, and that the Agreed Order entered by
the Bankruptcy Court is now final and non-appealable; and (B) such other documents
and instruments as Agent may require to evidence the addition of OLS and Loma as
Borrowers under the Credit Agreement;

     (vi)   an incumbency certificate dated as of the date hereof from each of OLS
and Loma executed by its respective Secretary or Assistant

Third Amendment to Amended and

Restated Credit Agreement

4

 

    Secretary, which shall (A) identify by name and title and bear the signature of the
Authorized Officers and any other officers of each of OLS and Loma, authorized to
sign the Loan Documents to which OLS or Loma, as applicable, is a party, (B)
attach, as applicable, a copy of the by-laws or operating agreement and board of
directors’ or executive committee resolutions authorizing the execution, delivery
and performance of the Loan Documents to which each of OLS or Loma, respectively,
is a party; and (C) attach a certified copy of its articles or certificate of
incorporation or certificate of organization, together with all amendments, and a
certificate of good standing, each certified by the appropriate governmental
officer in its jurisdiction of incorporation;

     (vii)   UCC search results, evidencing the appropriate filing and recordation of
a financing statement naming Agent, for the benefit of Lenders, as Secured Party
and each of OLS and Loma, respectively, as Debtor; and disclosing no liens or
encumbrances filed against the Collateral other than those in accordance with the
Credit Agreement or Permitted Liens;

     (viii)   certificates of dissolution (or applicable equivalent) filed in the
appropriate jurisdictions in connection with the dissolution of each of (A)
Chessher Construction, Inc., (B) DarCom International, L.P., and (C) Newpark
Shipholding Texas, L.P.;

     (ix)   a certified copy of the Certificate of Amendment of OGS Laboratory, Inc.
evidencing its name change to Newpark Drilling Fluids Laboratory, Inc. filed in the
appropriate jurisdiction and the underlying requisite corporate authority approving
and authorizing such action; and

     (x)   such additional documents, instruments and information as Agent or Lenders
or their legal counsel may request.

          (b) The representations and warranties contained herein, in the Credit Agreement, as amended
hereby, and/or in the other Loan Documents shall be true and correct as of the date hereof as if
made on the date hereof, except for such representations and warranties as by their terms expressly
speak as of an earlier date; and

          (c) All corporate proceedings taken in connection with the transactions contemplated by this
Amendment and all documents, instruments and other legal matters incident thereto shall be
satisfactory to Agent, Lenders and their legal counsel.

ARTICLE IV

Limited Waiver, Consents and Agreements

     Section 4.01 Limited Waiver. Loan Parties hereby acknowledge the occurrence and
continuation of Events of Default in connection with (x) the previous

Third Amendment to Amended and

Restated Credit Agreement

5

 

dissolution of each of Chessher Construction, Inc. (“Chessher”), DarCom International,
L.P. (“DarCom”), and Newpark Shipholding Texas, L.P. (“NST” and together with
DarCom and Chessher, collectively, the “Dissolved Entities”) and (y) the previous name
change of OGS Laboratory, Inc. to Newpark Drilling Fluids Laboratory, Inc. in violation of Sections
6.4, 6.23 and 6.25 of the Credit Agreement, as applicable, which Events of Default are hereby
waived by the Lenders effective as of the effective date of this Amendment subject to the
representations hereby made by the Loan Parties that the assets of each of the Dissolved Entities
were transferred by operation of law with respect to Chessher, to Newpark Resources, Inc., as its
parent, and with respect to DarCom and NST, to Newpark Texas, L.L.C. as the 99% holder of each
partnership’s interest.

     Section 4.02 No Waiver. Except as set forth in Section 4.01 above, nothing contained
in this Amendment shall be construed as a waiver by Agent or any Lender of any covenant or
provision of the Credit Agreement, the other Loan Documents, this Amendment, or of any other
contract or instrument between any Borrower or any Loan Party and Agent and any Lender, and the
failure of Agent or Lenders at any time or times hereafter to require strict performance by any
Borrower or any Loan Party of any provision thereof shall not waive, affect or diminish any rights
of Agent or Lenders to thereafter demand strict compliance therewith. Agent and Lenders hereby
reserve all rights granted under the Credit Agreement, the other Loan Documents, this Amendment and
any other contract or instrument between any Borrower or any Loan Party and Agent or any Lender.

     Section 4.03 Lender Consent. Effective as of the date hereof, the Lenders signatory
hereto, each hereby consent and authorize Agent on behalf of the Lenders to execute that certain
letter agreement consenting, in Agent’s discretion, to the transactions contemplated herein
pursuant to that certain Reimbursement Agreement, dated as of May 1, 1998, among Newpark, Loma and
JPMorgan Chase Bank, N.A. (successor by merger to Bank One, N.A. (Main Office Chicago) f/k/a Bank
One, Louisiana, National Association, as supplemented by Rider 1 and amended by that First
Amendment and Supplement to Reimbursement Agreement, dated February 1, 1999, (as further amended
from time to time, the “Reimbursement Agreement”) and the other Borrower Documents (as
defined in the Reimbursement Agreement).

ARTICLE V

Ratifications, Representations and Warranties

     Section 5.01 Ratifications. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement
and except as expressly modified and superseded by this Amendment, the terms and provisions of the
Credit Agreement are ratified and confirmed and shall continue in full force and effect.
Additionally, each Borrower and each Loan Party each hereby ratifies and confirms their agreements
under the Credit Agreement and the other Loan Documents as a Borrower and as a Loan Party,
respectively, as of the Closing Date. Each Borrower and Loan Party hereby agrees that all Liens
and security

Third Amendment to Amended and

Restated Credit Agreement

6

 

interests securing payment of the Obligations are hereby collectively renewed, ratified and
brought forward as security for the payment and performance of the Obligations, as the same may
have been modified by the this Amendment and the documents executed in connection herewith.

     Section 5.02 Ratification of Guaranty. Each Guarantor hereby ratifies and confirms
its guaranty to Agent and Lenders (the “Guaranty”). Each Guarantor hereby represents and
acknowledges that it has no claims, counterclaims, offsets, credits or defenses to the Loan
Documents or the performance of its obligations thereunder. Furthermore, each Guarantor agrees
that nothing contained in this Amendment shall adversely affect any right or remedy of Agent or
Lenders under the Guaranty. Each Guarantor agrees that all references in such Guaranty to the
“Guaranteed Obligations” shall include, without limitation, all of the obligations of Borrowers to
Agent and Lenders under the Credit Agreement, as amended hereby. Finally, each Guarantor hereby
represents and acknowledges that the execution and delivery of this Amendment and the other Loan
Documents executed in connection herewith shall in no way change or modify its obligations as a
guarantor, debtor, pledgor, assignor, obligor and/or grantor under the Guaranty and shall not
constitute a waiver by Agent or Lenders of any of their rights against such Guarantor.

     Section 5.03 Representations and Warranties. Each Borrower and each Loan Party hereby
represents and warrants to Agent and Lenders that (i) the execution, delivery and performance of
this Amendment and any and all other Loan Documents executed and/or delivered in connection
herewith have been authorized by all requisite corporate action on the part of such Borrower and
such Loan Party and will not violate the certificate/articles of incorporation or other analogous
formation document of such Borrower or such Loan Party or the bylaws or other analogous charter or
organizational documents of such Borrower or such Loan Party, (ii) except as disclosed to Agent and
Lenders in writing prior to the date hereof, the representations and warranties contained in the
Credit Agreement, as amended hereby, and any other Loan Document are true and correct on and as of
the date hereof as though made on and as of the date hereof, including such representations and
warranties therein that relate solely to the Closing Date, which shall be true and correct on and
as of the date hereof as though made on and as of the date hereof, (iii) except as disclosed to
Agent and Lenders in writing prior to the date hereof, such Borrower or such Loan Party is in full
compliance with all covenants and agreements contained in the Credit Agreement, as amended hereby,
(iv) except as disclosed to Agent and Lenders in writing prior to the date hereof, such Borrower or
such Loan Party has not amended its certificate/articles of incorporation or other analogous
formation document or bylaws or other analogous charter or organizational documents since February
25, 2004 and (v) all costs and expenses required to be paid by Newpark or its Affiliates pursuant
to the terms of the Dismissal Order (or any other agreement executed in connection therewith) have
been paid by Newpark or its Affiliates in accordance with the terms thereof.

Third Amendment to Amended and

Restated Credit Agreement

7

 

ARTICLE VI

Miscellaneous

     Section 6.01 Survival of Representations and Warranties. All representations and
warranties made in the Credit Agreement or any other document or documents relating thereto,
including, without limitation, any Loan Document furnished in connection with this Amendment, shall
survive the execution and delivery of this Amendment and the other Loan Documents, and no
investigation by Agent or any Lender or any closing shall affect the representations and warranties
or the right of Agent or Lenders to rely upon them.

     Section 6.02 Reference to Credit Agreement; Obligations. Each of the Loan Documents,
including the Credit Agreement and any and all other agreements, documents or instruments now or
hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the
Credit Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents
to the Credit Agreement shall mean a reference to the Credit Agreement, as amended hereby. Each
Borrower acknowledges and agrees that its obligations under this Amendment and the Credit
Agreement, as amended hereby, constitute “Obligations” as defined in the Credit Agreement and as
used in the Loan Documents.

     Section 6.03 Expenses. As provided in the Credit Agreement, each Borrower agrees to
pay on demand all reasonable costs and expenses incurred by Agent in connection with the
preparation, negotiation and execution of this Amendment and the other Loan Documents executed
pursuant hereto and any and all amendments, modifications, and supplements thereto, including,
without limitation, the reasonable costs and fees of Agent’s legal counsel, and all reasonable
costs and expenses incurred by Agent in connection with the enforcement or preservation of any
rights under the Credit Agreement, as amended hereby, or any other Loan Document.

     Section 6.04 Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the provision so held to be invalid
or unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall
be added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid unenforceable provision.

     Section 6.05 APPLICABLE LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
THIS AMENDMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED, AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS)
OF THE STATE OF

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TEXAS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     Section 6.06 Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of Agent, Lenders, Borrowers, the other Loan Parties signatory hereto and their
respective successors and assigns, except that no Borrower may assign or transfer any of its rights
or obligations hereunder without the prior written consent of each Lender.

     Section 6.07 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original, but all of which
when taken together shall constitute one and the same instrument.

     Section 6.08 Effect of Waiver. No consent or waiver, express or implied, by Agent or
any Lender to or for any breach of or deviation from any covenant or condition of the Credit
Agreement shall be deemed a consent or waiver to or of any other breach of the same or any other
covenant, condition or duty.

     Section 6.09 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of this Amendment.

     Section 6.10 Release. EACH OF BORROWER AND THE OTHER LOAN PARTIES SIGNATORY HERETO
HEREBY ACKNOWLEDGE THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND
OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS
LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE
FROM AGENT OR LENDERS. EACH OF BORROWER AND THE OTHER LOAN PARTIES SIGNATORY HERETO HEREBY
VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE AGENT AND EACH LENDER, THEIR RESPECTIVE
PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE
CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER,
KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR
CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS
AMENDMENT IS EXECUTED, WHICH BORROWER OR THE OTHER LOAN PARTIES SIGNATORY HERETO MAY NOW HAVE
AGAINST AGENT AND ANY LENDER, THEIR PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS,
SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT,
TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY LOANS, INCLUDING, WITHOUT
LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN
EXCESS OF

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9

 

THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT
AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

     Section 6.11 NO ORAL AGREEMENTS. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, this Amendment has been executed on the date first written above, to be
effective upon satisfaction of the conditions set forth herein.

	 	 	 
	 

	 	BORROWERS:
	 
	 	 
	 

	 	NEWPARK RESOURCES, INC.,
	 

	 	DURA-BASE NEVADA, INC.,
	 

	 	EXCALIBAR MINERALS INC.,
	 

	 	EXCALIBUR MINERALS OF LA., L.L.C.,
	 

	 	NEWPARK DRILLING FLUIDS, LLC,
	 

	 	NEWPARK ENVIRONMENTAL SERVICES, L.L.C.,
	 

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

	 	NEWPARK HOLDINGS, INC.,
	 

	 	NEWPARK TEXAS, L.L.C.,
	 

	 	NEWPARK DRILLING FLUIDS LABORATORY, INC.,
	 

	 	SOLOCO, L.L.C.,
	 

	 	SUPREME CONTRACTORS, L.L.C.,
	 

	 	COMPOSITE MAT SOLUTIONS L.L.C.,
	 

	 	NEWPARK ENVIRONMENTAL WATER SOLUTIONS LLC,
	 

	 	NEWPARK WATER TECHNOLOGY PARTNERS LLC,
	 

	 	OLS CONSULTING SERVICES, INC., and
	 

	 	THE LOMA COMPANY, L.L.C.

	 	 	 	 	 
	 

	 	By:
	 	/s/ John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	Treasurer
	 

	 	 	 	 

	 	 	 
	 

	 	BATSON MILL, L.P.,
	 

	 	NES PERMIAN BASIN, L.P.,
	 

	 	NEWPARK ENVIRONMENTAL SERVICES OF TEXAS, L.P.,
	 

	 	NID, L.P., and
	 

	 	SOLOCO TEXAS, L.P.

	 	 	 	 	 
	 	 	By: Newpark Holdings, Inc., the general partner of
such entity
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	Treasurer
	 

	 	 	 	 

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	 	LOAN PARTIES:
	 
	 

	 	MALLARD & MALLARD OF LA., INC., and
	 

	 	SHAMROCK DRILLING FLUIDS, INC.

	 	 	 	 	 
	 

	 	By:
	 	/s/ John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	Treasurer
	 

	 	 	 	 

	 	 	 	 	 
	 	 	NEWPARK ENVIRONMENTAL SERVICES
	 	 	MISSISSIPPI, L.P.
	 
	 	 	 	 
	 	 	By: Newpark Holdings, Inc., its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	John R. Dardenne
	 

	 	 	 	 
	 

	 	 	 	Treasurer
	 

	 	 	 	 

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	 	 	LENDERS:
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 	 	(successor by merger to Bank One, N.A. (Main Office Chicago))
	 	 	Individually, as Agent and LC Issuer
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. Devin Mock
	 

	 	 	 	 
	 

	 	Name:
	 	J. Devin Mock
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

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	 	 	FLEET CAPITAL CORPORATION,

as Lender
	 
	 

	 	By:
	 	/s/ John M. Olsen
	 

	 	 
	 	 
	 

	 	Name:
	 	John M. Olsen
	 

	 	 
	 	 
	 

	 	Title:	 	 
	 

	 	 
	 	 

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	 	 	HIBERNIA NATIONAL BANK,

as Lender
	 
	 

	 	By:
	 	/s/ Cheryl Denenea
	 

	 	 
	 	 
	 

	 	Name:
	 	Cheryl Denenea
	 

	 	 
	 	 
	 

	 	Title:	 	Vice President
	 

	 	 
	 	 

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	 	 	WHITNEY NATIONAL BANK,

as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Josh Jones
	 

	 	 	 	 
	 

	 	Name:
	 	Josh Jones
	 

	 	 	 	 
	 

	 	Title:
	 	 Assistant Vice President
	 

	 	 	 	 

Third Amendment to amended and

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