Document:

Exhibit 4.15

 

EXECUTION VERSION

 

CONVERTIBLE NOTE AGREEMENT

 

(the “Note
Agreement”) dated 11 December 2018

made by and among

 

 

 

Eli
Lilly and Company

 

Lilly Corporate
Center, Indianapolis, IN 46285, U.S.A.

 

(the
“Lender”)

 

 

 

and

 

 

 

AC Immune
SA

 

EPFL Innovation
Park Building B, 1015 Lausanne, Switzerland

 

 

 

(the
“Borrower” or “Company”)

 

(the
Lender and the Company, the “Parties” and each
a “Party”)

 

 

 

with respect
to a convertible loan granted to the Company

 

     

    
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TABLE
OF CONTENTS

 

	Preamble	3
	1	Definitions	3
	2	Convertible Loan	3
	2.1.	Loan	3
	2.2.	Lender Payment	3
	2.3.	Purpose	4
	3	Interest	4
	3.1.	Interest Rate	4
	3.2.	Interest Calculation and Payment	4
	4	Repayment and set-off	5
	4.1.	Repayment	5
	4.2.	Set-off	5
	5	Conversion	5
	5.1.	Mandatory Conversion at Long Stop Date	5
	5.2.	Conversion upon Request of the Lender	6
	5.3.	Execution of the Conversion	6
	5.4.	Set-Off of the Loan	6
	5.5.	Implementation of Conversion	6
	5.6.	Certain Corporate Events	7
	6	Representations, Warranties and Covenants	7
	6.1.	Representations and Warranties by the Borrower	7
	6.2.	Representations and Warranties by the Lender	11
	7	Indemnification and Remedies	11
	7.1.	Indemnification by the Company	11
	8	Events of Default	12
	8.1.	Events of default	12
	8.2.	Additional Default Interest Rate	13
	8.3.	Declaration of Repayment	13
	9	Limitations on Exercise	13
	9.1.	Limitation	13
	9.2.	Consequences	14
	10	General Provisions	14
	10.1.	Confidentiality and Public Announcements	14
	10.2.	Effective date	14
	10.3.	Costs and Expenses	14
	10.4.	Notices	14
	10.5.	No Waiver	15

 

 

 

 

 

     

    
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	10.6.	Entire Agreement	16
	10.7.	Severability	16
	10.8.	Waivers	16
	10.9.	Transfers or Assignments	16
	10.10.	Governing Law	16
	10.11.	Arbitration	16
	10.12.	Termination	16
	Annexes 	20

 

 

Preamble

 

		A	Borrower
                                         is a Swiss stock corporation (société anonyme) registered under the registration
                                         number CHE-109.878.825. The Borrower has an issued share capital of CHF 1’347’253.80,
                                         divided into 67’362’690 registered shares, each with a nominal value of CHF
                                         0.02 and fully paid-in (the “Shares”).

 

		B	The
                                         Lender intends to support the continuation of the Borrower’s business activity
                                         by granting to the Borrower a convertible loan, subject to the terms and conditions of
                                         this Note Agreement.

 

		1.	Definitions

 

If
not defined otherwise in this Note Agreement, capitalized terms used in this Note Agreement shall have the meaning ascribed to
them in Annex 1.

 

		2.	Convertible
                                         Loan

 

		2.1.	Loan

 

Subject
to the terms and conditions of this Note Agreement, the Lender hereby makes a convertible loan (the “Loan”) to the
Borrower in the amount of USD 50’000’000.00 (fifty million U.S. Dollars).

 

		2.2.	Lender
                                         Payment

 

The
Lender shall fund the entire amount of the Loan within three Business Days following the License Agreement Effective Date (as
defined below)(the occurrence of the payment, the “Closing” and the date of such occurrence, the “Closing Date”)
to the following bank account:

 

Account
holder: AC Immune SA, EPFL Innovation Park, Building B, CH-1015 Lausanne, Switzerland

 

Bank:
Credit Suisse (Switzerland) Ltd. 

Address
of Bank: Paradeplatz 8, 8001 Zurich, Switzerland 

Clearing:
4835

 

     

    
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Account:
1737769-42-1

SWIFT:
CRESCHZZ80A

 

		2.3.	Purpose

 

The
Borrower shall use the Loan as working capital for the continuation of the business and research activities as approved by the
Board.

 

		3.	Interest

 

		3.1.	Interest
                                         Rate

 

		a)	The
                                         Loan shall bear interest at the rate of 0.75% (zero point seventy-five percent) per annum
                                         for the period beginning on the date that is 90 days following the Closing Date until
                                         the Loan is repaid in full.

 

		b)	Subject
                                         to paragraph c) below, the Borrower shall pay accrued interest on the last day of each
                                         calendar month (each such date being an “Interest Payment Date”).

 

		c)	On
                                         an Interest Payment Date the Borrower may, by giving notice to the Lender on that date,
                                         elect not to pay the interest due on that Interest Payment Date. If the Borrower makes
                                         such election on an Interest Payment Date, an amount equal to all interest accrued on
                                         the Loan ending on that date shall be added to the outstanding principal amount of the
                                         Loan and will subsequently be treated for all purposes of this Agreement as part of the
                                         principal amount of the Loan.

 

		d)	The
                                         Loan including any accrued interest shall be the “Outstanding Loan”.

 

		3.2.	Interest
                                         Calculation and Payment

 

The
interest shall be calculated on a 365/365 days basis and paid in common shares at the Conversion Price.

 

For
the avoidance of doubt, the Loan shall be issued at par value and if converted, converted into new Shares of the Company. To the
extent required by law, the Company will withhold the Swiss withholding tax from any interest payment (currently 35%) and deliver
the corresponding documentation to the Lender. If any governmental authority requires the Borrower to deduct or withhold any amount
from, or the Lender to pay any present or future tax, assessment, or other governmental charge on, any payment to Lender as a
result of the interest payment (“Withholding Payment”), the Borrower will, in addition to paying the Lender such reduced
payment, simultaneously pay the Lender such additional amounts such that the Lender receives the full contractual amount of the
applicable payment from the Borrower as if no such Withholding Payment had occurred, provided, that Borrower shall not be required
to pay such additional amounts with respect to (a) any Withholding Payment that is attributable to any withholding taxes imposed
under U.S. law including FACTA, or (b) taxes resulting directly from the Lender changing its jurisdiction of domicile or form
of legal entity; or (c) Swiss withholding tax imposed as a result of the Lender assigning any rights under this Agreement to more
than one person or

 

     

    
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to
a person domiciled outside the Unites States or Switzerland. If it should be unlawful under Swiss law to make such additional
payments, the applicable interest rate shall be increased to the extent that the Lender receives the full amount that it would
have received had no deduction or withholding been made.

 

		4.	Repayment
                                         and set-off

 

		4.1.	Repayment

 

The
Loan and, if applicable, any interest and other amounts outstanding thereunder shall become immediately due for repayment on the
earlier of:

 

		a)	the
                                         Business Day following the occurrence an Event of Default (the “Repayment”);
                                         provided, however, that upon the occurrence of an Event of Default under Section 8.1(‎f),
                                         the Loan and any interest and other amounts outstanding thereunder shall automatically
                                         and immediately become due and payable;

 

		b)	the
                                         conversion in accordance with and pursuant to Section 5 (the “Conversion”);
                                         or

 

		c)	November
                                         30, 2019.

 

The
Borrower may not borrow again any amount which has been repaid to the Lender.

 

		4.2.	Set-off

 

If
an Event of Default shall have occurred and be continuing, the Lender and its affiliates are hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any
time owing by such Lender or its affiliates to or for the credit or the account of the Company against any and all of the obligations
of the Company now or hereafter existing under this Loan Agreement or the Note to the Lender, irrespective of whether or not the
Lender shall have made any demand under this Loan Agreement.

 

		5.	Conversion

 

		5.1.	Mandatory
                                         Conversion at Long Stop Date

 

Unless
otherwise accelerated pursuant to Section 4.1(‎a) or limited by Section 9.1, any outstanding amounts under the Loan on the
90-day anniversary of the Closing Date (the “Long Stop Date”) shall automatically be converted into common
shares of the Company (such shares, in a number to be determined as set forth below, the “Conversion Shares”).

  

The
issue price (the “Conversion Price”) of such Conversion Shares shall be the USD amount calculated by dividing
(i) the Outstanding Loan by (ii) USD 13.83.

 

     

    
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If
the Loan has not been converted into shares of the Company by the five-month anniversary of the Closing Date, the Company shall,
if requested by written notice from the Lender, immediately repay the Outstanding Loan plus accrued and unpaid interest thereon,
if any, in cash plus liquidated damages of 15% of the outstanding principal amount and accrued and unpaid interest, if any, due
under the Loan.

 

		5.2.	Conversion
                                         upon Request of the Lender

 

At
any time between the later of (i) one-month period following the Closing Date (ii) two months after the date of this Agreement,
and up to the Long Stop Date, the Lender may, subject to Section ‎9.1, in its sole discretion and until the Loan has been
fully converted, notify the Borrower of its request to convert in whole or, in the case where Section ‎9 of this Agreement
applies, in part the Outstanding Loan into common shares of the Company for an issue price corresponding to the Conversion Price.

 

		5.3.	Execution
                                         of the Conversion

 

To
execute the Conversion, the Borrower undertakes to notify the Lender with a ‎10 Business Day advance notice of an event of
Conversion in accordance with Section ‎5.1, such notice specifying the amount of the Loan to be converted and the number of
shares in the Company to be issued in connection with such Conversion. The Lender undertakes to submit a conversion notice (the
“Conversion Notice”) substantially in the form of Annex 2 to the Company in connection with any conversion
pursuant to Section ‎5.2.

 

		5.4.	Set-Off
                                         of the Loan

 

In
the event of a Conversion, the amount of the Loan and any outstanding interest thereon being converted into common shares of the
Company at the Conversion Price shall automatically be deemed repaid by set-off (Repayment by Set-off).

 

Any
fractional shares created by way of Conversion shall be disregarded and the number of shares to be issued and granted shall be
rounded downward to the next full number of shares. As to any fraction of a share which the Lender would otherwise be entitled
to purchase upon Conversion, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such
fraction multiplied by the Conversion Price.

 

		5.5.	Implementation
                                         of Conversion

 

The
Borrower has an available amount of CHF 91’867.50 of conditional share capital as per article 3b of its Articles of Association,
pursuant to which it may issue a maximum of up to 4’593’375 registered shares, payable in full, each with a nominal
value of CHF 0.02 through the exercise of conversion and/or option or warrant rights granted in connection with bonds or similar
instruments, including convertible debt instruments. Such conditional capital is available for the conversion of the Loan pursuant
to the terms and conditions of this Note Agreement.

 

		5.6.	Certain
                                         Corporate Events

 

     

    
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		a)	If,
                                         at any time while the Note is outstanding, (i) the Company effects any merger or consolidation
                                         of the Company with or into another person pursuant to which the Shares are effectively
                                         converted and exchanged, (ii) the Company effects any sale of all or substantially all
                                         of its assets in one or a series of related transactions pursuant to which the Shares
                                         are effectively converted and exchanged, (iii) any tender offer or exchange offer (whether
                                         by the Company or another person) is completed pursuant to which at least a majority
                                         of the outstanding Shares are tendered and exchanged for other securities, cash or property
                                         or (iv) the Company effects any reclassification of the Shares or any compulsory share
                                         exchange pursuant to which the Shares are effectively converted into or exchanged for
                                         other securities, cash or property (other than as a result of a subdivision or combination
                                         of shares of Common Stock) (in any such case, a “Fundamental Transaction”),
                                         then prior to any subsequent conversion of the Note, the Lender shall be entitled to
                                         require the surviving entity to issue to the Lender an instrument identical to the Note
                                         (with an appropriate adjustment to the Conversion Price) such that the Lender may receive
                                         stock (or a beneficial interest in stock) of the surviving company’s stock. The
                                         terms of any agreement pursuant to which a Fundamental Transaction is effected shall
                                         include terms requiring any such successor or surviving entity to comply with the provisions
                                         of this paragraph (a) and insuring that the Note (or any such replacement security) will
                                         be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

		b)	If
                                         the Company (i) declares a dividend or any other distribution of cash, securities or
                                         other property in respect of its Shares, including without limitation any granting of
                                         rights or warrants to subscribe for or purchase any shares of the Company or any subsidiary,
                                         (ii) authorizes and publicly approves, or enters into any agreement contemplating or
                                         solicits stockholder approval for any Fundamental Transaction or (iii) publicly authorizes
                                         the voluntary dissolution, liquidation or winding up of the affairs of the Company, then
                                         the Company shall deliver to the Lender a notice describing the material terms and conditions
                                         of such transaction prior to the applicable record or effective date (with sufficient
                                         time to enable conversion of the Loan prior to such record or effective date) on which
                                         a person would need to hold Shares in order to participate in or vote with respect to
                                         such transaction, and the Company will take all steps reasonably necessary in order to
                                         insure that the Lender is given the opportunity to convert this Loan prior to such time
                                         so as to participate in or vote with respect to such transaction.

 

		6.	Representations,
                                         Warranties and Covenants

 

		6.1.	Representations
                                         and Warranties by the Borrower

 

The
Borrower represents, warrants and covenants, as applicable, the following to the Lender:

 

		a)	The
                                         Borrower is a Swiss stock corporation duly incorporated and validly existing under the
                                         laws of Switzerland, with the power and authority (corporate and other) to own its properties
                                         and conduct its business in the ordinary course.

 

     

    
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		b)	The
                                         Borrower is duly authorized to enter into and perform its obligations under or in connection
                                         with this Note Agreement and the promissory note attached as Annex 3 (the “Note”).

 

		c)	The
                                         obligations of the Borrower according to this Note Agreement and the Note are valid,
                                         binding and enforceable against the Borrower subject only to bankruptcy, insolvency,
                                         reorganization, and composition or similar laws affecting creditors’ rights in
                                         general.

 

		d)	The
                                         obligations of the Borrower according to this Note Agreement and the Note do not conflict
                                         with, violate or result in a breach of any law, regulation or judgement applicable to
                                         the Company or its Articles of Association, or any agreement or commitment to which the
                                         Company is a party to or by which it is bound.

 

		e)	The
                                         Articles of Association filed with the register of commerce at the date of this Note
                                         Agreement are in full force and effect.

 

		f)	As
                                         of the date of this Note Agreement, the Company has filed all reports, schedules, forms,
                                         statements and other documents required to be filed by the Company under the Securities
                                         Exchange Act of 1934, as amended, including pursuant to Section 13(a) or 15(d) thereof
                                         (the “SEC Documents”), and will continue to do so until the date that
                                         is one year from the Closing Date (it being understood that the Company shall have no
                                         such obligation to file SEC Documents during such one year period if the Company ceases
                                         to be subject to the requirement to do so as a result of an acquisition of the Company
                                         by a third party that is approved by the Company’s shareholders under applicable
                                         law, other than an acquisition that would constitute a default under Section ‎8.1.h)
                                         hereof).

 

		g)	Neither
                                         the Company nor any subsidiary or affiliate, nor any person acting on its or their behalf,
                                         has, directly or indirectly, made any offers or sales of any security or solicited any
                                         offers to buy any security, under any circumstances that would require registration of
                                         the Note or the Conversion Shares under the Securities Act of 1933, as amended (the “Act”)
                                         and assuming the accuracy of the representations and warranties of the Lender contained
                                         in Section ‎6.2 hereof, the issuance of the Note and the Conversion Shares are exempt
                                         from registration under the Act.

 

		h)	The
                                         Conversion Shares, when issued, will be duly authorized, validly issued, fully paid and
                                         non-assessable and will not be subject to preemptive rights or other similar rights of
                                         stockholders of the Company.

 

		i)	The
                                         Company will reserve and maintain, at all times during which the Note is outstanding,
                                         a number of shares under its conditional share capital (or other immediately available
                                         share capital) equal to the maximum number of Conversion Shares issuable under the Note.

 

		j)	The
                                         Company owns or possesses licenses or sufficient rights to use all patents, patent applications,
                                         patent rights, inventions, know-how, trade secrets, trademarks,

 

     

    
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trademark
applications, service marks, service names, trade names and copyrights necessary to enable it to conduct its business as conducted
as of the date hereof and, to its knowledge, as proposed to be conducted as described in the SEC Documents. The Company owns or
possesses, or has a reasonable basis on which it believes it can obtain on reasonable terms, licenses or sufficient rights to
use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications,
service marks, service names, trade names and copyrights necessary to enable it to conduct its business as conducted as of the
date hereof and, to its knowledge, as proposed to be conducted as described in the SEC Documents. As used in this Note Agreement,
the “Intellectual Property” means all patents, patent applications, patent rights, inventions, know-how, trade
secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights necessary to enable the
Company to conduct its business as conducted as of the date hereof and, to its knowledge, as proposed to be conducted as described
in the SEC Documents. To the Company’s knowledge, the Company has not infringed the intellectual property rights of third
parties and no third party, to the Company’s knowledge, is infringing the Intellectual Property. Except as disclosed in
the SEC Documents, there are no material options, licenses or agreements relating to the Intellectual Property, nor is the Company
bound by or a party to any material options, licenses or agreements relating to the patents, patent applications, patent rights,
inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service names, trade names or copyrights
of any other Person. There is no material claim or action or proceeding pending or, to the Company’s knowledge, threatened
that challenges any of the rights of the Company in or to, or otherwise with respect to, any Intellectual Property.

 

		k)	There
                                         are no actions, suits, proceedings, or investigations pending or, to the Company’s
                                         knowledge, threatened against the Company or any of its properties (a) before any court
                                         or governmental agency (nor to the Company’s knowledge is there any basis therefor)
                                         that would be required to be disclosed by the Company pursuant to Item 103 of Regulation
                                         S-K under the Act, or (b) that question the validity of this Note Agreement or any action
                                         taken or to be taken in connection herewith,

 

		l)	The
                                         Lender may request that the Company remove, and the Company agrees to authorize the removal
                                         of any legend from the Note or Conversion Shares (and deliver or cause to be delivered
                                         to the transfer agent any required legal opinion) following any sale of such Note or
                                         Conversion Shares pursuant to Rule 144 under the Securities Act, including following
                                         the expiration of the six-month holding requirement under subparagraphs (b)(1)(i), (c)(1)
                                         and (d) thereof. Further, the Company agrees to immediately authorize the removal of
                                         any legend from the Note or Conversion Shares if such Note or Conversion Shares are eligible
                                         for sale under Rule 144 following the expiration of the one-year holding requirement
                                         under subparagraphs (b)(1)(i) and (d) thereof. Following the time a legend is no longer
                                         required for the Note or Conversion Shares, the Company will promptly, but in any event
                                         not later than five Business Days following the delivery by the Lender to the

 

     

    
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Company
or the Company’s transfer agent of a request to remove any restrictive and other legend from such Note or Conversion Shares,
cause the transfer agent to remove such legend from such Notes or Conversion Shares and make the corresponding book entry adjustments.

 

		m)	During
                                         the period commencing on and including the effective date of this agreement and continuing
                                         through and including the date on which the Conversion Shares are issued to the Lender
                                         following Conversion or the Loan is otherwise repaid in full (such period, as extended
                                         as described below, being referred to herein as the “Lock- up Period”),
                                         the Company will not, without the prior written consent of the Lender (which consent
                                         may be withheld in its reasonable discretion), directly or indirectly: (i) sell, offer
                                         to sell, contract to sell or lend any Shares or Related Securities (as defined below);
                                         (ii) effect any short sale, or establish or increase any “put equivalent position”
                                         (as defined in Rule 16a-1(h) under the Exchange Act) or liquidate or decrease any “call
                                         equivalent position” (as defined in Rule 16a-1(b) under the Exchange Act) of any
                                         Shares or Related Securities; (iii) pledge, hypothecate or grant any security interest
                                         in any Shares or Related Securities; (iv) enter into any swap, hedge or similar arrangement
                                         or agreement that transfers, in whole or in part, the economic risk of ownership of any
                                         Shares or Related Securities, regardless of whether any such transaction is to be settled
                                         in securities, in cash or otherwise; (v) announce the offering of any Shares or Related
                                         Securities; (vi) file any registration statement under the Securities Act in respect
                                         of any Shares or Related Securities; or (vii) publicly announce the intention to do any
                                         of the foregoing. Notwithstanding anything to the contrary, the restrictions described
                                         in the preceding sentence shall not apply to (A) the transactions contemplated hereby,
                                         (B) the issuance of Shares or options to purchase Shares, or issue Shares upon exercise
                                         of options, pursuant to any stock option, stock bonus or other stock plan or arrangement
                                         described in the Company’s SEC Documents and Articles of Association as currently
                                         in force, or (C) the filing of a post-effective amendment to the registration statement
                                         on Form F-3 of the Company with the U.S. Securities and Exchange Commission pursuant
                                         to a notice of exercise of registration rights by dievini Hopp BioTech Holding GmbH &
                                         Co. per the terms of the Registration Rights Agreement dated as of October 23, 2015 by
                                         and among the Company and the shareholders party thereto. For purposes of the foregoing,
                                         “Related Securities” shall mean any options or warrants or other rights to
                                         acquire Shares or any securities exchangeable or exercisable for or convertible into
                                         Shares, or to acquire other securities or rights ultimately exchangeable or exercisable
                                         for, or convertible into, Shares.

 

		6.2.	Representations
                                         and Warranties by the Lender

 

The
Lender represents and warrants the following:

 

		a)	The
                                         Lender has been duly incorporated and is validly existing under the laws of the state
                                         of Indiana.

 

     

    
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		b)	The
                                         Lender is duly authorized to enter into and perform its obligations under or in connection
                                         with this Note Agreement.

 

		c)	The
                                         Lender represents that it is acquiring the Note and the Conversion Shares solely for
                                         its own account and beneficial interest for investment and not for sale or with a view
                                         to distribution of the Notes or the Conversion Shares or any part thereof, has no present
                                         intention of selling (in connection with a distribution or otherwise), granting any participation
                                         in, or otherwise distributing the same, and does not presently have reason to anticipate
                                         a change in such intention.

 

		d)	The
                                         Lender represents that it has knowledge and experience in financial and business matters
                                         such that it is capable of evaluating the merits and risk of this investment. The Lender
                                         is not relying on the Company with respect to the corporate tax, legal and economic considerations
                                         involved in its investment in the Company. The Lender understands that the offer and
                                         sale of the Notes and the Conversion Shares has not been approved or disapproved by the
                                         U.S. Securities and Exchange Commission or any other governmental entity.

 

		e)	The
                                         Lender acknowledges that its investment in the Notes and Conversion Shares involves a
                                         high degree of risk and represents that it is able, without materially impairing its
                                         financial condition, to hold the Notes and Conversion Shares for an indefinite period
                                         of time and to suffer a complete loss of its investment.

 

		f)	The
                                         Lender is an “accredited investor” as such term is defined in Rule 501 of
                                         Regulation D promulgated under the Act.

 

		7.	Indemnification
                                         and Remedies

 

		7.1.	Indemnification
                                         by the Company

 

The
Company shall indemnify the Lender and its affiliates, directors, officers, employees and agents (each such person being called
an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify
and hold harmless each Indemnitee from all reasonable fees and time charges and disbursements for attorneys who may be employees
of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Company arising
out of, in connection with, or as a result of (i) the execution or delivery of the this Note Agreement, the Note or any other
document or any agreement or instrument contemplated hereby or thereby, the performance by the Parties of their respective obligations
hereunder or thereunder (including the issuance of the Conversion Shares) or the consummation of the transactions contemplated
hereby or thereby, or any other aspect of any transaction contemplated by this Note Agreement or the Note, (ii) any Note or any
use made (or proposed to be made, including any use proposed in this Note Agreement to be made) of proceeds therefrom, or (iii)
any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract,
tort or any other

 

     

    
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theory,
whether brought by a third party or by the Company, and regardless of whether any Indemnitee is a party thereto, in all cases,
whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities
or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Company against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under the Note, if the Company has obtained
a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

 

		8.	Events
                                         of Default

 

		8.1.	Events
                                         of default

 

Each
of the events set out in this Section is an “Event of Default” (whether or not caused by reason whatsoever outside
the control of the Borrower):

 

		a)	the
                                         Borrower ceases or suspends generally the payment of its debts, or becomes incapable
                                         of paying its debts, or seek a moratorium regarding any of the indebtedness of the Company;

 

		b)	the
                                         Borrower’s failure to pay any amount of principal when due, or within ten Business
                                         Days after the same becomes due, any interest on any Loan or any fees or expenses due
                                         and payable under this Note Agreement;

 

		c)	any
                                         representation or warranty made by the Borrower under this Agreement proves to have been
                                         untrue in any material respect;

 

		d)	the
                                         Borrower’s failure to observe and adhere to any material terms of this Agreement
                                         other than a failure under Section 8.1(‎a), (‎b), (‎c) or (‎g) and such
                                         failure continues for a period of 10 days;

 

		e)	an
                                         event of default occurs under the Borrower’s credit agreements or other agreements
                                         with any of its senior lenders or other third party lenders that is not cured within
                                         the applicable cure periods provided in such agreements;

 

		f)	the
                                         Borrower’s senior lenders or other third party lenders shall have accelerated the
                                         loans, debentures, bonds, notes or guarantees or any other obligations outstanding over
                                         an amount of at least CHF 10’000’000.00 under its credit facilities or other
                                         agreements with the Borrower;

 

		g)	the
                                         Company takes any action for the winding-up, dissolution, bankruptcy or similar proceedings
                                         against the Company, including the presentation or filing of a petition (whether by Borrower
                                         itself or by any other person) alleging or for the bankruptcy, winding-up or insolvency
                                         of Borrower (or any analogous proceeding) or seeking any reorganization, arrangement,
                                         composition, re-adjustment, administration,

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	13/23

    

liquidation,
dissolution or other similar relief under any present or future statute, law or regulation;

 

		h)	a
                                         Fundamental Transaction occurs following which the shares that the Loan would convert
                                         into would not be unrestricted and freely tradable on a major U.S. public securities
                                         exchange; or

 

		i)	the
                                         Company fails to convert the Loan in accordance with Section ‎5 of this Note Agreement.

 

		8.2.	Additional
                                         Default Interest Rate

 

Upon
the occurrence, and during the continuation of an Event of Default, the Loan shall bear, in addition to the base interest pursuant
to Section ‎3.1., default interest at a rate of 3% (three percent) per annum, calculated pro rata based on the 365/365 accrual
method as set out in Section ‎3.

 

		8.3.	Declaration
                                         of Repayment

 

Upon
an Event of Default, the Lender may declare the Outstanding Loan to be immediately due and payable in cash, and exercise any and
all rights and remedies available to the Lender under applicable laws.

 

		9.	Limitations
                                         on Exercise

 

		9.1.	Limitation

 

Notwithstanding
anything to the contrary contained herein, the number of Conversion Shares that may be acquired by the Lender upon any Conversion
of the Note shall be limited to the extent necessary to ensure that, following such Conversion, the total number of Shares then
beneficially owned by the Lender and its affiliates and any other persons whose beneficial ownership of Shares would be aggregated
with the Lender’s for purposes of Section 13(d) of the Exchange Act, does not exceed 9.99% of the total number of then issued
and outstanding Shares (including for such purpose the Shares issuable upon such Conversion). To the extent that the limitation
contained in this Section ‎9.1 applies, the determination of whether the Note is convertible and what portion of the Note
is convertible shall be in the reasonable discretion of the Lender. For purposes of this Section ‎9.1, in determining the
number of outstanding Shares, the Lender may rely on the number of outstanding Shares as reflected in (x) the Company’s
most recent Form 20-F, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Company’s
transfer agent setting forth the number of Shares outstanding. Upon the written request of the Lender, the Company shall within
five (5) Business Days confirm in writing to the Lender the number of Shares then outstanding. By written notice to the Company,
which will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, the Lender may terminate
the provisions of this Section ‎9.1 or waive the provisions of this Section ‎9.1 to change the beneficial ownership limitation
to such percentage of the number of Shares outstanding immediately

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	14/23

    

after
giving effect to the issuance of Shares upon conversion of the Note as the Lender shall determine, in its sole discretion, and
the provisions of this Section ‎9.1 shall continue to apply. Upon such a change by the Lender of the beneficial ownership
limitation to such other percentage limitation, the beneficial ownership limitation may not be further waived by the Lender without
first providing the minimum notice required by this Section ‎9.1.

 

		9.2.	Consequences

 

To
the extent that any of portion of the Note is not convertible pursuant to Section ‎9.1 hereof, such portion shall remain as
principal, to be evidenced by a new Note substantially in the form set forth in Annex 3 hereto. Such Note shall continue
to bear interest and be subject to the terms of the Note and this Note Agreement until such time as the Lender converts the Note.

 

		10.	General
                                         Provisions

 

		10.1.	Confidentiality
                                         and Public Announcements

 

The
Parties agree that the rules on confidentiality and public announcements set forth in the License Agreement shall apply mutatis
mutandis to this Note Agreement.

 

		10.2.	Effective
                                         date

 

This
Note Agreement shall become effective upon its execution by the Parties thereto and the exchange of signed pdf copies on the date
set forth in the first page of this Note Agreement.

 

		10.3.	Costs
                                         and Expenses

 

Each
party shall bear its own costs and expenses in connection with negotiation of this Note Agreement. In particular, the Borrower
shall bear the Swiss stamp duty to be paid on the issuance of Conversion Shares in connection with the Conversion.

 

		10.4.	Notices

 

Any
notice, request, demand, waiver, consent, approval or other communication permitted or required under this Agreement shall be
in writing, shall refer specifically to this Agreement and shall be deemed given only if delivered by hand or sent by facsimile
transmission (with transmission confirmed) or by internationally recognized overnight delivery service that maintains records
of delivery, addressed to the Parties at their respective addresses specified on the first page or to such other address as the
Party to whom notice is to be given may have provided to the other Party in accordance with this Section ‎10.4. Such notice
shall be deemed to have been given as of the date delivered by hand or transmitted by facsimile (with transmission confirmed)
or on the second Business Day (at the place of delivery) after deposit with an internationally recognized overnight delivery service.
Any notice delivered by facsimile shall be confirmed by a hard copy delivered as soon as practicable thereafter

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	15/23

    

Address
for Notices: 

If
to Lilly, to: 

Eli
Lilly and Company Lilly Corporate Center, 

Indianapolis,
IN 46285, U.S.A.;

 

Attention:
Robert Paz, Director, R&D Finance

 

with
a copy (which shall not constitute notice) to: 

Covington
& Burling LLP 

850
10th Street NW

Washington,
D.C. 20001 

Attention:
Van W. Ellis 

Facsimile:
202-778-5734

 

If
to ACI, to: 

AC
Immune SA 

EPFL
Innovation Park, Building B 

CH-1015
Lausanne, Switzerland 

Attention:
Chief Executive Officer

 

with
a copy (which shall not constitute notice) to:

 

VISCHER
AG 

Aeschenvorstadt
4, 

CH
4051 Basel, Switzerland 

Attention:
Dr. Matthias Staehelin 

Facsimile:
+41 58 211 33 10

 

		10.5.	No
                                         Waiver

 

The
failure of any Party to enforce any of the provisions of this Note Agreement or any rights with respect thereto shall in no way
be considered as a waiver of such provisions or rights or in any way to affect the validity of this Note Agreement. The waiver
of any breach of this Note Agreement by any Party hereto shall not be construed as a waiver of any other prior or subsequent breach.

 

		10.6.	Entire
                                         Agreement

 

This
Note Agreement, its Annexes and the instruments referred to herein, including but not limited to the Note, embodies the entire
agreement between the Parties hereto with respect to the Loan contemplated herein. This Note Agreement may be amended only in
writing through a document signed by the Parties hereto.

 

		10.7.	Severability

 

Should
any provision of this Note Agreement turn out to be invalid, illegal or unenforceable, the remaining provisions have to be regarded
as severable and enforceable in accordance with their terms. The Parties shall replace the partly or entirely invalid, illegal
or unenforceable provisions by provisions which are as similar as possible

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	16/23

    

 

and
correspond to the economic intent and purpose of such partly or entirely invalid or impractical provision and are valid and enforceable.

 

		10.8.	Waivers

 

No
waiver by a Party of a failure of any other Party to perform any provision of this Note Agreement shall operate or be construed
as a waiver with respect of any other or further failure.

 

		10.9.	Transfers
                                         or Assignments

 

The
Company shall not transfer the Loan or assign any of its rights or obligations under the Loan or under this Note Agreement to
any third party without the prior written consent of the Lender.

 

The
Lender shall not transfer the Loan or the Note or assign any of its rights or obligations under the Loan, the Note or under this
Note Agreement to any third party without the prior written consent of the Company.

 

		10.10.	Governing
                                         Law

 

This
Note Agreement and any questions related thereto shall be subject to the laws of Switzerland excluding its conflict of law rules.

 

		10.11.	Arbitration

 

Any
dispute, controversy or claim arising under, out of or relating to this Note Agreement (and subsequent amendments thereof), its
valid conclusion, binding effect, interpretation, performance, breach or termination, including tort claims, shall be referred
to and finally determined by arbitration in accordance with the rules set out in Section 13.5 (Dispute Resolution) of the License
Agreement.

 

		10.12.	Termination

 

This
Note Agreement will automatically and immediately terminate in the event that the License Agreement is terminated prior to the
Closing Date.

 

 

[Remainder
of this page intentionally left blank] 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	17/23

    

 

	 	Signatures

                                                                     

         

        Eli
        Lilly and Company

        As the Lender

         

         
	 	 
	 	/s/
    David A. Ricks	 	 
	 	Name:David
    A. Ricks	 	 
	LML	Function:
    Chairman, President and Chief Executive Officer	 	 

 

 

  

 

	 	AC
                                         Immune SA
 

                                         As the Borrower
                                         or the Company

                                                                                 
	 	 
	 	/s/
    Andrea Pfeifer	 	/s/
    Martin Velasco
	 	Name:Andrea
    Pfeifer	 	Name:
    Martin Velasco
	 	Function:
    Chief Executive Officer	 	Function:
    Chairman

 

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	18/23

    

Annexes

 

	Annex
    1	Definitions
	Annex
    2	Conversion
    Notice Note
	Annex
    3	Note

 

 

 

 

  

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	19/23

    

 

Annex
1

 

Definitions

 

	Board	shall
    mean the board of directors of the Company.
	Borrower	shall
    have the meaning as defined on the first page of the Agreement.
	Business
    Day	shall
    mean a day (other than a Saturday or Sunday) on which banks in Lausanne are open for general business.
	Closing	shall
    have the meaning as set forth in Section 2.2.
	Closing
    Date	shall
    have the meaning as set forth in Section 2.2.
	Company	shall
    have the meaning as defined on the first page of the Agreement.
	Conversion	shall
    have the meaning as set forth in Section 4.1b).
	Conversion
    Notice	shall
    have the meaning as set forth in Section 5.3.
	Conversion
    Price	shall
    have the meaning as set forth in Section 5.1.
	Event
    of Default	shall
    have the meaning as set forth in Section 8.1.
	Lender	shall
    have the meaning as defined on the first page of the Agreement.
	License
    Agreement	The
    License Agreement, dated the date hereof, between AC Immune SA and Eli Lilly and Company.
	License
    Agreement Effective Date	The
    Business Day (as defined in the License Agreement) following the date on which HSR Clearance (as defined in the License Agreement)
    occurs.
	Loan	shall
    have the meaning as set forth in Section 2.1.
	Note
    Agreement	shall
    have the meaning as defined on the first page of the Agreement.
	Long
    Stop Date	shall
    have the meaning as set forth in Section 5.1.
	Outstanding
    Loan	shall
    have the meaning as set forth in Section 3.1.

  

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	20/23

    

 

	Party
    or Parties	shall
    have the meaning as defined on the first page of the Agreement.
	Repayment	shall
    have the meaning as set forth in Section 4.1a).
	Shares	shall
    have the meaning as set forth in Recital A.

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	21/23

    

Annex
2

 

AC
Immune SA 

Attn.
Prof. Dr. Andrea Pfeifer 

CEO 

EPFL
Innovation Park Building B 

1015
Lausanne, Switzerland

 

	Place,
    Date: 	 	 

 

 

Conversion
Notice

 

 

 

Dear
Prof. Dr. Andrea Pfeifer,

 

We refer to the convertible note agreement
dated 11 December 2018 (the “Agreement”) between AC Immune SA as borrower and our company Eli Lilly
and Company as lender. 

 

Capitalized
terms used in this Conversion Notice but not otherwise defined herein shall have the meaning ascribed to them in the Agreement.

 

In
full knowledge of the Borrower’s articles of association, we hereby:

 

		1.	acknowledge
                                         the conversion of the Loan and the interest due, in accordance with Article 5 of the
                                         Agreement for an amount corresponding to our claim against the Borrower as per [date]
                                         under the Agreement, i.e., USD [amount], into [number] common shares (the “Relevant
                                         Shares”) in the Borrower; and

 

		2.	request
                                         the Borrower to provide us with the Borrower’s commercial register excerpt giving
                                         evidence of the issuance of Relevant Shares.

 

 

 

	Eli Lilly and Company
	 
	 
	 
	
        Name:

         

        

	Function:

  

 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	22/23

    

 Annex
3

 

FORM
OF PROMISSORY NOTE

 

	$50,000,000	[•],
    2018

 

FOR
VALUE RECEIVED, AC IMMUNE SA, a Swiss stock corporation (société anonyme) registered under the registration number
CHE 109.878.825 (the “Borrower”), hereby promises to pay to the order of ELI LILLY AND COMPANY, an Indiana
corporation (together with its affiliates, successors, transferees and assignees, the “Lender”), on the date
of Repayment, the principal sum of FIFTY MILLION DOLLARS ($50,000,000) or, if less or more, the aggregate unpaid principal amount
(together with accrued and unpaid interest, if any) of the Loan made by the Lender, unless such amounts are converted into common
shares of the Company in connection with a Conversion, in each case pursuant to the Note Agreement, dated as of December 11, 2018
(as amended, supplemented or otherwise modified from time to time, the “Note Agreement”), by and between the
Borrower and the Lender. Unless otherwise defined herein or the context otherwise requires, terms used in this Note have the meanings
provided in the Note Agreement.

 

The
Borrower also promises to pay interest on the unpaid principal amount hereof on the terms, at the rates per annum and on the dates
specified in the Note Agreement, as well as any other amounts that may be due to the Lender upon maturity (whether by acceleration
or otherwise) under or in respect of this Note.

 

To
the extent paid in cash pursuant to the Note Agreement, payments of both principal and interest are to be made in U.S. Dollars
in same day or immediately available funds to an account to be designated in writing by the Lender.

 

This
Note is referred to in, and evidences the Loan incurred under, the Note Agreement, to which reference is made for a description
of the terms of this Note. The terms and conditions of the Loan set forth in the Note Agreement are incorporated by reference
herein. Any repaid principal of this Note may not be reborrowed.

 

This
Note and any questions related thereto shall be subject to the laws of Switzerland excluding its conflict of law rules.

 

All
parties hereto, whether as makers, endorsers or otherwise, severally waive presentment for payment, demand, protest and notice
of dishonor.

 

 

 

 

[Signature
Page Follows] 

     

    
	Convertible Note Agreement | AC Immune SA, 11 December 2018	23/23

    

 

 

 

 

	 	AC
    IMMUNE SA
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

  

 

	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:Exhibit

FIRST AMENDMENT 
TO 
AMENDED AND RESTATED CREDIT AGREEMENT 
and
Amended and Restated Security Agreement
This First Amendment to Amended and Restated Credit Agreement and Amended and Restated Security Agreement (this “Amendment”), is entered into as of March 20, 2019 (the “First Amendment Effective Date”), by Newpark Resources, Inc., a Delaware corporation (“Newpark”), Newpark Drilling Fluids LLC, a Texas limited liability company (“Newpark Drilling”), Newpark Mats & Integrated Services LLC, a Texas limited liability company (“Newpark Mats”), Excalibar Minerals LLC, a Texas limited liability company (“Excalibar”), and Dura-Base Nevada, Inc., a Nevada corporation (“Dura-Base” and collectively with Newpark Drilling, Newpark Mats, Excalibar, and Newpark, the “Borrowers” and each a “Borrower”), the undersigned lenders party to the A&R Credit Agreement described below, and Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), Swing Line Lender and an L/C Issuer.
INTRODUCTION
A.    The Borrowers, the Administrative Agent and the undersigned lenders (collectively, the “Lenders” and each individually, a “Lender”), are parties to that certain Amended and Restated Credit Agreement dated as of October 17, 2017 (as amended, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “A&R Credit Agreement”).
B.    The Borrowers desire to amend the A&R Credit Agreement as set forth herein, in order to, among other things, increase the aggregate commitments to $200,000,000, and to amend the Security Agreement (as such term is defined in the A&R Credit Agreement) as set forth herein.
C.    The Administrative Agent and the Lenders are willing to amend the A&R Credit Agreement and the Security Agreement on the terms and conditions set forth in this Amendment.
THEREFORE, in connection with the foregoing and for other good and valuable consideration, the Borrowers, the Lenders, and the Administrative Agent hereby agree as follows:
Section 1.Definitions; References.  Unless otherwise defined in this Amendment, each term used in this Amendment that is defined in the A&R Credit Agreement has the meaning assigned to such term in the A&R Credit Agreement.

Section 2.Amendments to A&R Credit Agreement.
(a)Section 1.01 of the A&R Credit Agreement is hereby amended to delete the definitions of “Consolidated Funded Indebtedness” and “Consolidated Leverage Ratio”.

(b)Section 1.01 of the A&R Credit Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:
“CFC Holdco” means a Domestic Subsidiary, substantially all of the assets of which consist, directly or indirectly, of Equity Interests in one or more Foreign Subsidiaries.
“First Amendment” means that certain First Amendment to Amended and Restated Credit Agreement, dated as of March 20, 2019, among the Borrowers, the Administrative Agent, and the Lenders party thereto.
“First Amendment Effective Date” means March 20, 2019.
“Incremental Commitment” has the meaning specified in Section 2.14(a).
“L/C Issuer Sublimit” means (i) $7,500,000 in the case of Bank of America, and (ii) $7,500,000 in the case of JPMorgan Chase Bank, N.A., as such amounts may be adjusted from time to time by agreement of the L/C Issuers so long as the total of the L/C Issuer Sublimits for the L/C Issuers shall not be less than the then applicable Letter of Credit Sublimit.
(c)Section 1.01 of the A&R Credit Agreement is hereby amended by amending and restating the following definitions in their entirety as follows:
“Aggregate Commitments” means the Commitments of all the Lenders.  As of the First Amendment Effective Date, the Aggregate Commitments are $200,000,000.
“Applicable Fee Rate” means, (i)  at any time that Total Outstandings (excluding any Swing Line Loans) are greater than or equal to 50% of the Aggregate Commitments, 0.250% per annum and (ii) at any time that Total Outstandings (excluding any Swing Line Loans) are less than 50% of the Aggregate Commitments, 0.375% per annum.
“Applicable Rate” means (i) from the First Amendment Effective Date to the first Business Day immediately following the date on which the Administrative Agent receives a Compliance Certificate pursuant to Section 6.02(b) for the fiscal quarter ending March 31, 2019, the applicable percentage per annum set forth below shall be determined as if Pricing Level 1 were applicable and (ii)  thereafter, the applicable percentage per annum set forth below determined by reference to the Fixed Charge Coverage Ratio as set forth in the most recent Compliance Certificate received by Administrative Agent pursuant to Section 6.02(b) and corresponding to the grid provided below:

-2

	
				
	Pricing Level
	Fixed Charge Coverage Ratio
	Eurodollar Rate /Letter of Credit Fee
	Base Rate

	1
	≥ 1.50:1.00
	1.50%
	0.50%

	2
	≥ 1.00:1.00 but <  1.50:1.00
	1.75%
	0.75%

	3
	< 1.00:1.00
	2.00%
	1.00%

Any increase or decrease in the Applicable Rate resulting from a change in the Fixed Charge Coverage Ratio shall become effective as of the first Business Day immediately following the date on which the Compliance Certificate is delivered pursuant to Section 6.02(b); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing Level 3 shall apply as of the first Business Day immediately following the date on which such Compliance Certificate was required to have been delivered and in each case shall remain in effect until the date on which such Compliance Certificate is delivered.
Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).
“Cash Dominion Trigger Period” means (a) the period (i) commencing on the day that an Event of Default occurs, and (ii) continuing until, during each of the preceding 30 consecutive days, no Event of Default has existed, and (b) the period (i) commencing on the day that Availability is less than the greater of (1) 12.5% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (2) $22,500,000, and (b) continuing until, during each of the preceding 30 consecutive days, Availability is not less than the greater of (1) 12.5% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (2) $22,500,000.
“Financial Covenant Trigger Period” means the period (a) commencing on the day that Availability is less than the greater of (i) 12.5% of the lesser of (x) the Borrowing Base and (y) the Aggregate Commitments and (ii) $22,500,000 and (b) continuing until, during each of the preceding 30 consecutive days, Availability has exceeded the greater of (i) 12.5% of  the lesser of (x) the Borrowing Base and (y) the Aggregate Commitments and (ii) $22,500,000.  
“Immaterial Domestic Subsidiary” means any Domestic Subsidiary that (a) does not own any assets of the type that would otherwise be Collateral other than (i) intercompany contracts to provide personnel services and (ii) other assets whose value does not exceed $500,000 in the aggregate at any time, (b) does not guaranty any obligations with respect to the 2021 Convertible Notes, (c) generates 

-3

less than 5.0% of Consolidated EBITDA for the Measurement Period most recently ended for which financial statements of Newpark are available, and (d) owns net assets that have an aggregate fair market value of less than 5.0% of Consolidated Tangible Assets of Newpark as of the end of the fiscal quarter most recently ended; provided that if any two or more Domestic Subsidiaries generate more than 10% of Consolidated EBITDA in the aggregate for any such Measurement Period, then one or more of such Domestic Subsidiaries will be deemed not to qualify as an Immaterial Domestic Subsidiary during such Measurement Period in order to prevent the foregoing 10% limitation from being exceeded.
“Investment” means, as to any Person, an direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person or (c) an Acquisition.  For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment; provided, however, that Investments in the form of loans, advances, and capital contributions shall be determined after giving effect to, and net of, repayments and returns of capital, as applicable.  
“Letter of Credit Sublimit” means an amount equal to $15,000,000.  The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments.
“Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) any Guaranty, (d) the Collateral Documents, (e) the Fee Letters, (f) each Issuer Document, (g) any arrangements entered into by any L/C Issuer and any Borrower pursuant to Section 2.03(a)(iii)(E), (h) any agreement creating or perfecting rights in Cash Collateral pursuant to the provisions of Section 2.15 of this Agreement, (i) all “Loan Documents” (as defined in the Existing Credit Agreement) executed and delivered pursuant to the Existing Credit Agreement (except to the extent any of the same are amended and restated pursuant hereto or in connection herewith), whether or not expressly so stated in any other definition of the agreements, instruments and other documents described in the foregoing clauses (a) through (h) set forth herein or in any other Loan Document, and (j) the First Amendment.
“Maturity Date” means the earliest to occur of:
(a)     March 20, 2024; and
(b)     September 1, 2021, if either (i) the 2021 Convertible Notes Repayment Date has not occurred by September 1, 2021 or (ii) subject to the conditions set forth in the last sentence of Section 7.14, Borrowers fail to deposit cash and Cash Equivalents (including the proceeds of a Borrowing), such cash 

-4

and Cash Equivalents to be unrestricted or subject solely to a Lien in favor of Administrative Agent, in an escrow account with the Administrative Agent in an amount which, together with the 2021 Convertible Notes Temporary Reserve, is sufficient to satisfy the 2021 Convertible Notes in full at their maturity.
“Permitted Acquisition” means any Acquisition as long as (a) no Default or Event of Default exists or is caused thereby; (b) the Acquisition is consensual; (c) no Indebtedness is assumed or incurred except as permitted by Section 7.02, and no Liens are assumed or incurred except as permitted by Section 7.01; (d) upon giving pro forma effect thereto, either (i) average Availability for the 30 days preceding and as of the date of the Acquisition is not less than the greater of $30,000,000 and 20% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments, or (ii) (1) average Availability for the 30 days preceding and as of the date of the Acquisition is not less than the greater of $20,000,000 and 15% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (2) the Consolidated Fixed Charge Coverage Ratio on a pro forma basis is at least 1.00 to 1.00 for the most recent Measurement Period; (e) Borrowers deliver to the Administrative Agent, at least five Business Days prior to the Acquisition, copies of all material agreements relating thereto (or if final executed copies are not then available, the then most recent drafts thereof) and a certificate, in form and substance satisfactory to the Administrative Agent, stating that the Acquisition is a “Permitted Acquisition” and demonstrating compliance with the foregoing requirements and (f) prior to inclusion of any Accounts and Inventory acquired in any such Acquisition in the determination of the Borrowing Base (which, for the avoidance of doubt, must be owned by a Borrower), the Administrative Agent shall have obtained an appraisal with respect to such Inventory and conducted a field examination, in each case, on a basis reasonably satisfactory to the Administrative Agent; provided, that such acquired Accounts and Inventory that will otherwise satisfy the eligibility criteria (as determined in good faith by Newpark based on a review of such eligibility criteria and the due diligence for such Acquisition) may be included in the Borrowing Base for a period not to exceed 90 days pending completion of such field examination and appraisal.
“Swing Line Sublimit” means, with respect to each Swing Line Lender, an amount equal to the lesser of (a) $20,000,000 and (b) the Aggregate Commitments.  The Swing Line Sublimits are part of, and not in addition to, the Aggregate Commitments.
“Total Swing Line Sublimit” means an amount equal to the lesser of (a) $20,000,000 and (b) the Aggregate Commitments.  The Total Swing Line Sublimit is a part of, and not in addition to, the Aggregate Commitments.
“Weekly BBC Trigger Period” means the period (a) commencing on the day that an Event of Default occurs, or Availability is less than the greater of (i) 12.5% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (ii) $22,500,000, and (b) continuing until, during each of the preceding 30 consecutive days, no Event of Default has existed and Availability has at all times 

-5

exceeded the greater of (i) 12.5% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (ii) $22,500,000.
(d)Section 1.01 of the A&R Credit Agreement is hereby amended by amending and restating the final paragraph of the definition of “Indebtedness” in its entirety as follows: 
For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The maximum amount of any direct or contingent obligations under any letter of credit (including standby and commercial) shall be determined by deducting therefrom the amount of any cash collateral securing such letter of credit.
(e)Section 2.03(a)(iii) of the A&R Credit Agreement is hereby amended by deleting the “or” at the end of Section 2.03(a)(iii)(E), replacing the period at the end of Section 2.03(a)(iii)(F) with “; or” and inserting a new Section 2.03(a)(iii)(G) to read as follows:
(G)    immediately after giving effect to such issuance, the outstanding L/C Obligations in respect of all Letters of Credit issued by such L/C Issuer would exceed such L/C Issuer’s L/C Issuer Sublimit.
(f)Section 2.10(b) of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
(b)    If, as a result of any restatement of or other adjustment to the financial statements of Newpark or for any other reason, Newpark or the Lenders determine that (i) the Consolidated Fixed Charge Coverage Ratio as calculated by Newpark as of any applicable date was inaccurate and (ii) a proper calculation of the Consolidated Fixed Charge Coverage Ratio would have resulted in higher pricing for such period, the Borrowers shall immediately and retroactively be obligated to pay to the Administrative Agent for the account of the applicable Lenders or the applicable L/C Issuer, as the case may be, promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrowers under the Bankruptcy Code of the United States, automatically pay without further action by the Administrative Agent, any Lender or any L/C Issuer), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.  This paragraph shall not limit the rights of the Administrative Agent, any Lender or any L/C Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(h) or 2.08(b) or under Article VIII.  The Borrowers’ obligations under this paragraph shall survive the termination of the Aggregate Commitments and the repayment of all other Obligations hereunder.

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(g)Sections 2.14(a)-(c) and (e) of the A&R Credit Agreement are hereby amended and restated in their entirety as follows:
(a)    Request for Increase.  Provided there exists no Default, upon notice to the Administrative Agent (which shall promptly notify the Lenders), Newpark may from time to time, request an increase in the Aggregate Commitments (an “Incremental Commitment”) in an amount up to but not exceeding (giving effect to all such increases) $275,000,000; provided that (i) any such request for an Incremental Commitment shall be in a minimum amount of $10,000,000, (ii) Newpark may make a maximum of five (5) such requests, (iii) such Incremental Commitment shall be on the same terms and conditions, including pricing, as the then existing Commitments, except with respect to any arrangement, upfront, or similar fees that may be agreed to among the Borrowers and any Lenders providing such Incremental Commitment, (iv) neither the funding of such Incremental Commitment (assuming that such Incremental Commitment were fully drawn) nor the existence of the Liens securing the same would violate the terms of any indenture or other agreement governing Indebtedness for borrowed money in excess of $25,000,000 (including the 2021 Convertible Notes Documents) of Newpark or any of its Subsidiaries and, after giving effect to such Incremental Commitment, the Aggregate Commitments shall not exceed 90% of any relevant cap under any such agreement, and (v) any such Incremental Commitment shall benefit from the same guarantees as, and be secured on a pari passu basis by the same Collateral securing, the existing Commitments. At the time of sending such notice, Newpark (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to the Lenders).
(b)    Lender Elections to Provide an Incremental Commitment.  Each Lender shall notify the Administrative Agent within such time period whether or not it agrees to provide an Incremental Commitment and, if so, whether by an amount equal to, greater than, or less than its Applicable Percentage of such requested Incremental Commitment.  Any Lender not responding within such time period shall be deemed to have declined to provide an Incremental Commitment. For the avoidance of doubt, no Lender is obligated to provide an Incremental Commitment.
(c)    Notification by Administrative Agent; Additional Lenders. The Administrative Agent shall notify Newpark and each Lender of the Lenders’ responses to each request for an Incremental Commitment.  Subject to the approval of the Administrative Agent, the L/C Issuers and the Swing Line Lenders (which approvals shall not be unreasonably withheld or delayed), Newpark may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent and its counsel, which invitation may be made concurrently with the notice required by Section 2.14(a).

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(e)    Conditions to Effectiveness of Incremental Commitment.  As a condition precedent to such Incremental Commitment, (i) Newpark shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the Revolving Credit Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (x) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such Incremental Commitment, and (y) in the case of the Borrowers, certifying that, before and after giving effect to such Incremental Commitment, (a) the representations and warranties contained in Article V and the other Loan Documents are true and correct on and as of the Revolving Credit Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Section 2.14 the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) or (b), as applicable, of Section 6.01, (b) at the time of and after giving effect on a pro forma basis to such Incremental Commitment and any borrowings made on the Revolving Credit Increase Effective Date, the Borrowers are in compliance with Section 7.11 as of the end of the most recent Measurement Period for which financial statements of Newpark and its Subsidiaries are available and (c) no Default exists.  The Borrowers shall prepay any Revolving Credit Loans outstanding on the Revolving Credit Increase Effective Date (and pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Revolving Credit Loans ratable with any revised Applicable Percentages arising from any nonratable Incremental Commitment under this Section and Borrowers may use advances from Lenders having new or Incremental Commitments for such prepayment.
(h)Section 6.03(b) of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
(b)    (i) the breach or non-performance of, or any default under, a Contractual Obligation of Newpark or any Subsidiary that could reasonably be expected to have a Material Adverse Effect; (ii) any dispute, litigation, investigation, proceeding or suspension between Newpark or any Subsidiary and any Governmental Authority that could reasonably be expected to have a Material Adverse Effect; (iii) the commencement of, or any material development in, any litigation or proceeding affecting Newpark or any Subsidiary, including pursuant to any applicable Environmental Laws, that could reasonably be expected to have a Material Adverse Effect, or (iv) any development or event that has had, or could reasonably be expected to have, a Material Adverse Effect;
(i)Sections 6.10(b) and (c) of the A&R Credit Agreement are hereby amended and restated in their entirety as follows:
(b)    Subject to the reimbursement limitations contained in the next sentence, at any time upon the Administrative Agent’s request, the Borrowers will allow the 

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Administrative Agent (or its designee) to conduct field examinations to ensure the adequacy of Collateral included in any Borrowing Base and related reporting and control systems, and the report of any such field examination shall be prepared on a basis reasonably satisfactory to the Administrative Agent and shall include, without limitation, information required by applicable law and regulations.  The Borrowers shall reimburse the Administrative Agent for all reasonable and documented charges, costs and expenses (including a reasonable per diem field examination charge and out of pocket expenses) related thereto with respect to no more than one such field examination during each calendar year; provided that if Availability is less than 17.5% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments at any time during any calendar year, the Borrowers shall reimburse the Administrative Agent for all reasonable charges, costs and expenses (including a per diem field examination charge and out of pocket expenses) related to a second such field examination initiated by the Administrative Agent during such calendar year; and provided, further, that when an Event of Default exists, there shall be no limitation on the number or frequency of field examinations that shall be at the sole expense of the Borrowers.
(c)    Subject to the reimbursement limitations contained in the next sentence, at any time upon the Administrative Agent’s request, the Borrowers will allow the Administrative Agent (or its designee) to conduct appraisals of the Borrowers’ Inventory, and the report of any such appraisal shall be prepared on a basis reasonably satisfactory to the Administrative Agent. The Borrowers shall reimburse the Administrative Agent for all reasonable and documented charges, costs and expenses related thereto with respect to no more than one such appraisal during each calendar year; provided that if Availability is less than 17.5% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments at any time during any calendar year, the Borrowers shall reimburse the Administrative Agent for all reasonable charges, costs and expenses related to a second such appraisal initiated by the Administrative Agent during such calendar year; and provided, further, that when an Event of Default exists, there shall be no limitation on the number or frequency of appraisals that shall be at the sole expense of the Borrowers.
(j)Section 6.12(a) of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
(a) With respect to (x) any Person that becomes a direct or indirect Subsidiary after the Closing Date (other than a CFC Holdco, a CFC, a Subsidiary that is held directly or indirectly by a CFC or any Immaterial Domestic Subsidiary created or acquired after the Closing Date), (y) any CFC Holdco that ceases to be a CFC Holdco, and (z) any Immaterial Domestic Subsidiary that ceases to be an Immaterial Domestic Subsidiary, then the Borrowers shall, at the Borrowers’ expense:
(i)    within 30 days after such formation or acquisition or ceasing to be a CFC Holdco or an Immaterial Domestic Subsidiary (or such longer 

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period as may be agreed by the Administrative Agent in its sole discretion), cause such Subsidiary, and cause each direct and indirect parent of such Subsidiary (if it has not already done so), to duly execute and deliver to the Administrative Agent either a joinder to become a Borrower party to this Agreement or a Guaranty, each in form and substance satisfactory to the Administrative Agent,
(ii)    within 30 days after such formation or acquisition or ceasing to be a CFC Holdco or an Immaterial Domestic Subsidiary (or such longer period as may be agreed by the Administrative Agent in its sole discretion), cause such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to duly execute and deliver to the Administrative Agent a Security Agreement Supplement, IP Security Agreement Supplements and other security and pledge agreements, as specified by and in form and substance satisfactory to the Administrative Agent (including delivery of all Equity Interests, other than any Excluded Stock, in and of such Subsidiary, and other instruments of the type specified in Section 4.01(a)(iv)), securing payment of all the Obligations of such Subsidiary or such parent, as the case may be, under the Loan Documents and constituting Liens on all such property (other than Excluded Property) purported to be subject to such Collateral Document,
(iii)    within 30 days after such formation or acquisition or ceasing to be a CFC Holdco or an Immaterial Domestic Subsidiary (or such longer period as may be agreed by the Administrative Agent in its sole discretion), cause such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to take whatever action (including the filing of Uniform Commercial Code financing statements, the giving of notices and the endorsement of notices on title documents) may be necessary or advisable in the opinion of the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on the properties purported to be subject to the Security Agreement Supplement, IP Security Agreement Supplements and security and pledge agreements delivered pursuant to this Section 6.12, enforceable against all third parties in accordance with their terms, and
(iv)    within 60 days after such formation or acquisition or ceasing to be a CFC Holdco or an Immaterial Domestic Subsidiary (or such longer period as may be agreed by the Administrative Agent in its sole discretion), deliver to the Administrative Agent, upon the request of the Administrative Agent in its sole discretion, a signed copy of a favorable opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel for the Loan Parties reasonably acceptable to the Administrative Agent as to the matters contained in clauses (i), (ii) and 

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(iii) above, and as to such other matters as the Administrative Agent may reasonably request.
(k)Section 7.02(e) of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
(e)    (i) Guarantees incurred by Newpark or any of its Subsidiaries of obligations of Newpark or any Subsidiary in respect of the performance of bids, tenders, trade contracts (other than for borrowed money), performance bonds and other obligations of a like nature incurred in the ordinary course of business, and (ii) other Guarantees incurred by Newpark or any of its Subsidiaries of obligations of Newpark or any Subsidiary to the extent such obligations are permitted to be incurred hereunder;
(l)Section 7.03(h) of the A&R Credit Agreement is hereby amended to add the word “and” following the “;” at the end of such section.
(m)Section 7.03(i) of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
(i)    other Investments (i) not exceeding $5,000,000 in the aggregate in any fiscal year of Newpark and (ii) not limited in amount, provided that upon giving pro forma effect thereto, either (1) average Availability for the 30 days preceding and as of the date of such Investment is not less than the greater of $30,000,000 and 20% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments, or (2) (A) average Availability for the 30 days preceding and as of the date of such Investment is not less than the greater of $20,000,000 and 15% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (B) the Consolidated Fixed Charge Coverage Ratio on a pro forma basis is at least 1.00 to 1.00 for the most recent Measurement Period.
(n)Section 7.03(j) of the A&R Credit Agreement is hereby deleted.
(o)Section 7.06 of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
Section 7.06    Restricted Payments.  Declare or pay any Restricted Payment except that (a) Newpark may declare, pay, make or otherwise effect or undertake any one or more Restricted Payments provided that at the time of and after giving effect to such Restricted Payment, (i) no Default or Event of Default has occurred and is continuing or would result from such Restricted Payment, and (ii) upon giving pro forma effect thereto, either (A) Availability for the 30 days immediately preceding and as of the date of such Restricted Payment is not less than the greater of $40,000,000 and 25% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments, or (B)(1) Availability for the 30 days immediately preceding and as of the date of such Restricted Payment is not less than the greater of $35,000,000 and 20% of the lesser of the (x) Borrowing Base and (y) Aggregate Commitments and (2) the Consolidated Fixed Charge 

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Coverage Ratio on a pro forma basis is not less than 1.00 to 1.00 for the most recent Measurement Period, (b) each Subsidiary may make Restricted Payments to a Borrower and any Subsidiary that is not a Loan Party may make Restricted Payments to Newpark or any Subsidiary; (c) the Borrowers and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person; (d) the Borrowers and each Subsidiary may purchase, redeem or otherwise acquire its common Equity Interests with the proceeds received from the substantially concurrent issue of new common Equity Interests; (e) the redemption, repurchase or other acquisition or retirement for value of Equity Interests of any Borrower held by officers, directors or employees or former officers, directors or employees (or their transferees, estates or beneficiaries under their estates) shall be permitted either (i) upon any such individual’s death, disability, retirement, severance or termination of employment or service or (ii) pursuant to any equity subscription agreement, stock option agreement, stockholders’ agreement or similar agreement; provided, in any case, that the aggregate cash consideration paid for all such redemptions, repurchases or other acquisitions or retirements shall not exceed $5,000,000 during any calendar year (with unused amounts in any calendar year being carried forward to the next succeeding calendar year); and (f) Newpark may pay cash in lieu of fractional Equity Interests.
(p)The first sentence of Section 7.14 of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:
Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled due date of any payment due with respect to any Indebtedness or final maturity of any Indebtedness, as may be applicable, in any manner, or make any payment in violation of any subordination terms of any Indebtedness, except (a) the prepayment of the Credit Extensions in accordance with the terms of this Agreement, prepayment of any Indebtedness by any Loan Party or Subsidiary to a Loan Party, and prepayments by any Subsidiary that is not a Loan Party to any other Subsidiary that is not a Loan Party, (b)  refinancings, refundings, extensions or renewals of Indebtedness to the extent such refinancing, refunding, extension or renewal is permitted by Sections 7.02(d) or 7.02(g), (c) the conversion to or exchange for Equity Interests of convertible or exchangeable debt securities permitted under Sections 7.02(d) or 7.02(g), and customary payments in cash in lieu of fractional shares in connection therewith, (d) the mandatory prepayment of Indebtedness permitted pursuant to Section 7.02(d) in connection with the disposition of any asset securing such Indebtedness that is permitted by Section 7.05, (e) an Acceptable Convertible Notes Repurchase, and (f) the cancellation or other satisfaction of any 2021 Convertible Notes purchased by Newpark or any other Borrower in compliance with this Section 7.14.  
(q)Section 8.01(h) of the A&R Credit Agreement is hereby amended and restated in its entirety as follows:

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(h)    Judgments.  There is entered against Newpark or any Subsidiary (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $10,000,000 (to the extent not covered by independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 20 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; provided, however, that any judgment or order approving or otherwise validating a settlement agreement or settlement agreements entered into by Newpark Drilling and the plaintiffs or class of plaintiffs with respect to the Pending Wage and Hour Litigation shall not constitute or give rise to an Event of Default so long as the settlement amount does not exceed $4,500,000, and no enforcement proceedings are commenced to enforce any judgment or order relating to the Pending Wage and Hour Litigation; or
(r)Schedule 1.01(a) of the A&R Credit Agreement is hereby amended and restated in its entirety as set forth on Exhibit 1 attached hereto.
(s)Exhibit D of the A&R Credit Agreement is hereby amended and restated in its entirety as set forth on Exhibit 2 attached hereto.
(t)Schedules 5.13, 6.19, 7.01, 7.02, 7.03, and 10.02 of the A&R Credit Agreement are hereby amended and restated in their entirety as set forth on Exhibit 3 attached hereto.

Section 3.Amendments to Security Agreement.
(a)Section 1.3 of the Security Agreement is hereby amended by amended and restating the following definition in its entirety:
“Excluded Stock” means 34% of the Equity Interests issued by each CFC Holdco and each direct Foreign Subsidiary of any Debtor which is a CFC.
(b)Section 3.9 of the Security Agreement is hereby amended by amended and restating the following definition in its entirety:
3.9    Location of Collateral.  All tangible items of Collateral (other than Equipment or Mats Rental Inventory which is (a) located at customer job sites, or in route to customer job sites, (b) located at a temporary storage facility pending transportation to a customer job site or to a location set forth in Schedule 3.9), (c) being used by employees or contractors in the ordinary course of business, or (d) being refurbished, repaired, cleaned or otherwise made ready) shall at all times be kept by the Debtors at the business locations set forth in Schedule 3.9, except that Debtors may (i) make Dispositions of Collateral in accordance with Section 4.9(b) hereof and Section 7.05 of the Credit Agreement and (ii) move Collateral to 

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another location in the United States not listed in Section 3.9 provided that notice thereof is provided to the Administrative Agent within 10 Business Days thereafter.
(c)Schedules 3.4, 3.5(c), 3.7, 3.8, and 3.9 of the Security Agreement are hereby amended and restated in their entirety as set forth on Exhibit 4 attached hereto.

Section 4.Representations and Warranties.  The Loan Parties each represent and warrant that (a) the execution, delivery, and performance of this Amendment by each Loan Party are within the corporate or equivalent power and authority of such Loan Party and have been duly authorized by all necessary corporate or other organizational action, (b) this Amendment, and the A&R Credit Agreement as amended hereby, constitute legal, valid, and binding obligations of each Loan Party, enforceable against each Loan Party in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally and the application of general principles of equity or the enforcement of equitable remedies (regardless of whether such enforceability is considered in a proceeding in equity or law); (c) after giving effect to this Amendment, the representations and warranties of Newpark and each other Loan Party contained in each Loan Document are true and correct in all material respects as of the First Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; (d) after giving effect to this Amendment, no Default or Event of Default exists under the Loan Documents; (e) the Liens under the Collateral Documents are valid and subsisting and secure the Secured Obligations (as defined in the Security Agreement); and (f) no Loan Party has any defense to payment, counterclaim, or right of setoff with respect to any of the Obligations existing as of the First Amendment Effective Date.

Section 5.Effect on Loan Documents.  Except as amended hereby or in accordance herewith, the A&R Credit Agreement, the Security Agreement, and all other Loan Documents remain in full force and effect as originally executed.  Nothing herein shall act as a waiver of any of the Administrative Agent’s or any Lender’s rights under the Loan Documents as amended, including the waiver of any Default or Event of Default.  The Loan Parties acknowledge and agree that this Amendment shall in no manner impair or affect the validity or enforceability of the A&R Credit Agreement or the Security Agreement.  This Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of representations, warranties, and covenants under this Amendment may be a Default or Event of Default under the other Loan Documents.

Section 6.Conditions to Effectiveness.  This Amendment shall be effective on the date on which each of the following conditions has been satisfied:   

(a)Counterparts. The Administrative Agent’s receipt of the following (which may be by electronic transmission), and in the case of documents delivered by a Borrower, each properly executed by a Responsible Officer of such Borrower, each dated the First Amendment Effective Date and each in form and substance satisfactory to the Administrative Agent and each of the Lenders party hereto:
counterparts of this Amendment executed by the Borrowers, the Administrative Agent and the Lenders;

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(i)such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Borrower as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which such Borrower is a party; 
(ii)such documents and certifications as the Administrative Agent may reasonably require to evidence that each Borrower is in good standing in the jurisdiction of its incorporation or formation;
(iii)all filings, recordations and searches necessary or desirable in connection with the liens and security interests on the Collateral shall have been duly made; all filing and recording fees and taxes shall have been duly paid and any landlord waivers and access letters requested by the Administrative Agent with respect to material inventory locations of the Borrowers shall have been obtained (with respect to landlord waivers and access letters, to the extent capable of being obtained after the use of commercially reasonable efforts);
(iv)the Administrative Agent shall be satisfied with the amount, types and terms and conditions of all insurance maintained by the Loan Parties (which insurance shall be satisfactory if it is of the amount, type, terms and conditions customarily maintained by companies of established repute in the same or similar business operating in the same or similar locations) and shall have received endorsements naming the Administrative Agent, on behalf of the Lenders, as a loss payee under all insurance policies to be maintained with respect to the properties of the Loan Parties forming part of the Collateral;
(v)the Administrative Agent shall have received (A) reasonably satisfactory opinions of counsel to the Loan Parties (which shall cover, among other things, authority, legality, validity, binding effect and enforceability of the Amendment and any documents executed in connection therewith) and (B) satisfactory evidence that the Administrative Agent (on behalf of the Lenders) shall have a valid and perfected first priority (subject to the exceptions set forth in the A&R Credit Agreement) lien and security interest in the Collateral;
(vi)there shall not have occurred since December 31, 2018 any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect;
(vii)no action, suit, investigation or proceeding shall be pending or, to the knowledge of the Borrowers, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect;
(viii)the Administrative Agent shall have received a certification as to the solvency of the Loan Parties, taken as a whole, after giving effect to the repayment of any existing indebtedness of the Borrowers and the incurrence of indebtedness under the A&R Credit Agreement (as proposed to be modified by this Amendment); and

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(ix)the Administrative Agent and the Lenders shall have received all fees due under the Fee Letters.
(b)Expenses.  Unless waived by the Administrative Agent, the Borrowers shall have paid all accrued fees and expenses of the Arrangers, the Administrative Agent and the Lenders (including the reasonable and documented out-of-pocket fees and expenses of counsel (which shall be limited to the reasonable and documented fees and expenses of Vinson & Elkins L.L.P., Norton Rose Fulbright, LLP and, if necessary, any local counsel) for the Administrative Agent), to the extent invoiced prior to the First Amendment Effective Date.
(c)Other Documents.  The Administrative Agent shall have been provided with such documents, instruments and agreements, and the Loan Parties shall have taken such actions, in each case as the Administrative Agent may reasonably require in connection with this Amendment and the transactions contemplated hereby.

Section 7.Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, the LAW OF THE STATE OF NEW YORK.

Section 8.Miscellaneous.  The miscellaneous provisions set forth in Article X of the A&R Credit Agreement apply to this Amendment.  This Amendment may be signed in any number of counterparts, each of which shall be an original, and may be executed and delivered by telecopier, email transmission (e.g., “pdf” or “tif”) or other electronic imaging means.

Section 9.ENTIRE AGREEMENT.  THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

Section 10.Adjustments to Loans.  Upon satisfaction on the First Amendment Effective Date of all of the conditions specified in Section 6 hereof, each Lender who holds Loans in an aggregate amount less than its Applicable Percentage (after giving effect to this Amendment) of all Loans shall advance new Loans which shall be disbursed to the Administrative Agent and used to repay Loans outstanding to each Lender who holds Loans in an aggregate amount greater than its Applicable Percentage of all Loans.

Section 11.Reaffirmation.  By its signature hereto, each Borrower hereby acknowledges, ratifies, reaffirms and agrees that the A&R Credit Agreement, the Security Agreement and each of the other Loan Documents to which it is a party and the Liens and security interests created thereby in favor of the Administrative Agent, for the benefit of the holders of the Secured Obligations, in the Collateral, are and will remain in full force and effect and binding on such Borrower, and are enforceable in accordance with their respective terms and applicable Law.  
[Signature pages follow.]

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EXECUTED as of the first date above written.
BORROWERS:

NEWPARK RESOURCES, INC.

By:     /s/ Gregg Piontek                         
Name:  Gregg Piontek                                    
Title:    Senior Vice President and 
Chief Financial Officer   

NEWPARK DRILLING FLUIDS LLC

By:     /s/ Gregg Piontek                         
Name:  Gregg Piontek                                    
Title:    Vice President

NEWPARK MATS & INTEGRATED SERVICES LLC

By:     /s/ Gregg Piontek                         
Name:  Gregg Piontek                                    
Title:    Vice President

EXCALIBAR MINERALS LLC

By:     /s/ Gregg Piontek                         
Name:  Gregg Piontek                                    
Title:    Vice President

DURA-BASE NEVADA, INC.

By:     /s/ Gregg Piontek                         
Name:  Gregg Piontek                                    
Title:    Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO A&R CREDIT AGREEMENT AND SECURITY AGREEMENT]

BANK OF AMERICA, N.A., as Administrative Agent

By:     /s/ Ajay Jagsi                         
Name:  Ajay Jagsi                                    
Title:    Vice President

BANK OF AMERICA, N.A.,
as a Lender, L/C Issuer and Swing Line Lender
By:     /s/ Ajay Jagsi                         
Name:  Ajay Jagsi                                    
Title:    Vice President

[SIGNATURE PAGE TO FIRST AMENDMENT TO A&R CREDIT AGREEMENT AND SECURITY AGREEMENT]

JPMORGAN CHASE BANK, N.A., as a Lender and an L/C Issuer
By:     /s/ Robert Mendoza                         
Name:  Robert Mendoza                                 
Title:    Authorized Officer
    

[SIGNATURE PAGE TO FIRST AMENDMENT TO A&R CREDIT AGREEMENT AND SECURITY AGREEMENT]

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender
By:     /s/ Doreen Barr                         
Name:  Doreen Barr                              
Title:    Authorized Signatory

By:     /s/ Christopher Zybrick                       
Name:  Christopher Zybrick                               
Title:    Authorized Signatory
    
[SIGNATURE PAGE TO FIRST AMENDMENT TO A&R CREDIT AGREEMENT AND SECURITY AGREEMENT]

FIRST TENNESSEE BANK NATIONAL ASSOCIATION, as a Lender
By:     /s/ Michael Shipman                         
Name:  Michael Shipman                                  
Title:    Vice President
    

[SIGNATURE PAGE TO FIRST AMENDMENT TO A&R CREDIT AGREEMENT AND SECURITY AGREEMENT]

TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, as a Lender

By:     /s/ Jerra Hayden                         
Name:  Jerra Hayden                             
Title:    SVP
    
[SIGNATURE PAGE TO FIRST AMENDMENT TO A&R CREDIT AGREEMENT AND SECURITY AGREEMENT]

Exhibit 1
Schedule 1.01(a)
	
			
	Lender
	Revolving Credit Commitment
	Revolving Credit Applicable Percentage

	Bank of America, N.A.
	$82,500,000.00
	41.250000000%

	JPMorgan Chase Bank, N.A.
	$50,000,000.00
	25.000000000%

	First Tennessee Bank National Association
	$27,500,000.00
	13.750000000%

	Credit Suisse AG, Cayman Islands Branch
	$20,000,000.00
	10.000000000

	Texas Capital Bank, National Association
	$20,000,000.00
	10.000000000

	Total
	$200,000,000.00
	100.000000000%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}]]